The Auditor-General has delivered a bombshell report into Snowy Hydro 2.0, savaging Labor’s mismanagement of the massive renewable energy project that has blown out by billions.
The audit found that following the project “reset” in mid-2023, the renewable energy project is still “facing delays, cost increases and problems with delivery” with “management of the project” only “partly effective”, resulting in an “increasing risk” to overall cost and delivery.
By contrast, under the Coalition, in a report delivered by the Auditor-General in June 2022, early implementation of Snowy Hydro 2.0 was found to be “effective”, with the project’s budget “tracking in line with planned expenditure.”
In 2023 the Albanese Labor Government undertook a reset of Snowy 2.0 and the renegotiation of the contract with Italian construction giant, Webuild.
The scope of the 2026 audit was from 2022 to December 2025.
Shadow Minister for Energy and Emissions Reduction Dan Tehan said Labor’s mismanagement of the mega project was costing taxpayers.
“In just a few short years, Chris Bowen has turned the Snowy Hydro into an absolute financial train wreck,” Mr Tehan said.
“Despite Labor’s much-vaunted project reset in 2023, blowout Bowen has managed to oversee another Net Zero disaster.
“This scathing audit is further proof why taxpayers need greater transparency on all projects Chris Bowen has oversight on.
“Labor’s decision to move Snowy Hydro to a ‘reimbursable’ contract model has significantly exposed taxpayers to even more cost blowouts.
“Last month in Senate Estimates the CEO of Snowy Hydro was unable to confirm the cost impact of a new enterprise bargaining agreement on the project, despite workers already receiving additional pay and allowances.
“It has been speculated that the new enterprise agreement will add over $1 billion to project costs, with the Auditor-General noting that the agreement creates ‘persistent and material cost pressures.’”
At Senate Estimates it was confirmed that transmission projects connecting Snowy Hydro, VNI West West and HumeLink, were both delayed and over budget.
The Audit also found the following key deficiencies:
Key quality controls have not been effectively implemented.
● There is no agreed baseline schedule for the project.
● Snowy Hydro has reported that productivity gains assumed at reset are proving difficult to realise.
● Snowy Hydro does not have a robust understanding of the forecast cost to complete the project.
● The incentive framework is not working as intended.
● Snowy Hydro does not have adequate arrangements to monitor the impact of adjustments on value for money.
ENDS
Media contact: Phil Connole M | 0417 063 605