Carbon tax repeal: Hydro Tasmania says it will cut nearly 100 jobs

The state-owned renewable energy firm Hydro Tasmania has announced it will cut nearly 100 jobs, blaming the repeal of the carbon tax as a factor in its decision.

The company, which generates hydro and wind power and is owned by the Tasmanian government, said it will reduce its 1,092-strong workforce by 9% as a result of “financial and market challenges”.

Hydro Tasmania said the repeal of the carbon tax, uncertainty over the future of the renewable energy target and “softening demand” in the national electricity market forced it to make the cuts.

Financially, the current financial year is set to be a tough one for the company, with Hydro Tasmania forecasting that its profits will dip below $20 million, less than one-tenth of its current surplus.

Hydro Tasmania said it has already begun an internal restructure and has asked staff to volunteer for voluntary redundancies.

As well as overseeing clean energy projects, such as the large-scale King Island wind and solar scheme, Hydro Tasmania trades electricity and energy products, such as renewable energy certificates.

This means it is likely to suffer from the repeal of the carbon price, which now seems assured after Clive Palmer committed his Palmer United party senators to voting with the government to end the scheme.

The Coalition is also holding a review of the Renewable Energy Target, which mandates that 20% of Australia’s energy supply must come from renewable sources by 2020.

In his bizarre press conference with former US vice-president Al Gore, Palmer stressed that his party will vote against any attempt to amend or abolish the RET before the next election, seemingly safeguarding the target.

However, the review itself has been blamed by the clean energy industry for stymying investment in the sector. Several Coalition MPs have called for the RET to be dismantled, claiming that it increases energy bills.

In a statement, Hydro Tasmania chief executive Steve Davy said it was a “challenging time” for staff and that unions had been briefed on the process. It’s expected that the redundancies will take place over the next two months.

Hydro Tasmania refused to comment further on the job cuts when contacted by Guardian Australia.