Pay slide for power chiefs

TasNetworks executives take hit

EXECUTIVE salaries at Tasmania’s super profitable electricity distribution company TasNetworks receded in the past financial year despite recording a $94 million profit.

The 2016-17 annual report obtained by the Mercury reveals remuneration for the top eight executives dropped from $2.476 million to $2.459 million.

Chief executive Lance Balcombe earned a package of $463,000 compared with $478,000 the year before.

Last year, TasNetworks staff received a 2 per cent rise after an enterprise agreement was signed similar to other public service employees.

Hydro Tasmania chief executive Steve Davy received a total package of $607,000 in 2016-17, up 16 per cent from the previous year’s $522,000.

Pay for the top 11 executives increased 13 per cent to $3.6 million.

“Hydro Tasmania’s executive salaries have simply returned to near normal levels after a sharp one year drop in 2015-16 when the business did not make a profit and the leadership group elected to receive no incentive payments,” a spokesman said.

Aurora Energy’s top four executives received less in 2017 — $1.09 million compared with $1.1 million the year before, with chief executive Rebecca Kardos pocketing a $17,000 increase to $378,304.

Tasmania’s energy companies made profits of $133 million in the past year and provided dividends to the State Government of $107 million.

The TasNetworks report reveals substantial capital expenditure of $164 million and intangible additions of $42 million during the year. The Government has moved to ease electricity price pressures for the 279,636 residential customers by capping price rises at 2 per cent.

Last week it announced a $125 special energy bonus for $80,000 households at a cost of $10 million and it allocated $20 million to help businesses hit by large rises when they came out of contract.

The Australian Competition and Consumer Commission interim report said: “It’s no great secret Australia has an electricity affordability problem”.

The report found network costs (48 per cent), retailer margins and costs (24 per cent), wholesale costs (22 per cent) and environmental policies (7 per cent) were to blame.

A TasNetworks spokesman said network charges in Tasmania had been trending down in the past three years, including a 20 per cent reduction in July this year.