Basslink appears all set to operate as a regulated interconnector from 1 July 2026.
A brief look at bids over the period since the agreement with Hydro Tasmania ended
Readers will recall how Basslink, as a Market Network Service Provider, operated under an agreement with Tas Hydro until July 2025.
The agreement was to set bids at $0 so that energy could flow in the direction of the price difference (from the low-priced region to the high-priced region).
We can see in the chart how that bidding approach ended 30 June 2025.
Since then bids have been at prices far higher– in the $20 to $30 range and often greater than $50 in the case of BLNKVIC (supply from Victoria to Tasmania).
With offers to transfer energy in any direction requiring greater price differences, we expected that flows would be less often and lower in magnitude.
Energy flows declined from July 2025
The greatest difference, pre and post July 2025, is in the flows from Victoria to Tasmania. These shrunk considerably.
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