Inflation adds $2.5 billion to Snowy 2.0 project costs, urgent government “support package” requested

In explosive evidence to Senate Estimates this evening, Snowy Hydro’s CEO Dennis Barnes:

  • Confirmed inflation has added $2.5 billion to Snowy’s $25 billion budget blowout;
  • Confirmed Snowy has requested a new multi-billion “support package” from the Government, required by mid-2027;
  • Confirmed that the new union-led enterprise bargaining agreement has no specific productivity enhancers;
  • Confirmed the new union-led enterprise bargaining agreement would add around $1 billion to project costs;
  • Confirmed that there are no plans to produce a new net present value; and
  • Confirmed that Chris Bowen knew about the $25 billion blowout on 30 September.

The extraordinary evidence was made following revelations last week that the revised cost to complete Snowy 2.0 under Labor had exploded to $25 billion.

Shadow Minister for Energy and Emissions Dan Tehan said the revelations were disturbing.

“Labor’s spending addiction has added $2.5 billion in inflationary costs to Snowy 2.0,” Mr Tehan said.

“The worse is not over though: it’s now been revealed that Snowy Hydro has urgently requested a massive new bailout to save their credit rating from crashing.

“Chris Bowen and the unions should never be allowed to touch a taxpayer-funded project again.

“This is yet further evidence that Chris Bowen should apologise to Australian taxpayers and resign. If Mr Bowen doesn’t resign, the Prime Minister should sack him.”

ENDS

Media contact: Phil Connole M | 0417 063 605