The Basslink cable outage will have far reaching effects on the finances of the state government.
Working out how to generate enough electricity for our needs is the easy bit. Finding enough dollars to help Hydro Tasmania survive is harder.
Were Hydro a private company a Voluntary Administrator would have been appointed by now as there is no certainty it would have been able to trade its way out of current difficulties.
With borrowings of $850 million plus Basslink liabilities of $860 million at latest reporting date, private lenders would be reluctant to lend assistance.
The reason for the cable fault has not been determined, the repair time is a guess based on experiences with other sub-sea cable problems, and once repaired whether it will meet original design specifications is highly problematical.
In such circumstances the voluntary administrator checks the situation and talks to creditors, lenders and shareholders about the way forward. In essence that is what Minister Groom is now doing.
The dim light at the end of the electricity supply tunnel gives hope that we might find enough power to continue come what may. Next is the search for the necessary funds to sustain Hydro. We can dispense with talk about profits and returns to government. Neither is likely in the short term. The question is whether Hydro can generate enough cash from operations to cover its annual capex bill of $100 million needed to upgrade dams and generating plant.