The former gas industry executive who chairs the government owned Snowy Hydro utility has been appointed for another 18 months – a time that the Albanese government expects the company to address its massive cost over-runs and delays at its two key signature projects.
The federal government announced on Friday that David Know, the former Santos CEO appointed chair of Snowy by the Morrison government from January, 2020, will serve for another 18 months.
Two other director, Karen Moses (a former CFO at gas giant Origin) and Sandra Dodds will continue as directors for another three years. The government said the reappointments will maintain “both certainty and gender equity” among Snowy Hydro’s leadership.
Controversy is raging about Snowy Hydro’s two new projects, particularly the Snowy 2.0 pumped hydro project that is running several years late and over-budget, with the prospect of further delays and cost over-runs that could have a big impact on the grid’s transition to green energy.
One of its principal tunnelling machines has become stuck, a victim of “weak material”, according to the most recent Snowy update published on its website this week. The company says it is injecting significant amounts of grout to reinforce the tunnelling conditions. It says the delays are only “temporary.”
The company is also building the 600MW Kurri Kurri gas generator, which is supposed to be “hydrogen ready”, but is already one year behind schedule.
A statement from energy minister Chris Bowen and finance minister Kate Gallagher said the Labor government had inherited “hidden delays from the Coalition” on Snowy 2.0 and the Kurri Kurri gas project.
It noted that a new CEO, Dennis Barnes has been appointed to “bring a fresh approach” to Snowy Hydro after the sudden resignation of Paul Broad, reportedly after a falling out with Bowen.
“Snowy 2.0 will be an essential provider of dispatchable capacity to the National Electricity Market over coming decades,” the ministers said.
“The shareholder ministers are looking forward to the Board and CEO addressing legacy issues and delivering these critical projects consistent with the highest standards as Australians expect from the iconic Snowy Hydro company.”
Bowen said the re-appointed board members will be responsible for overseeing and guiding Barnes and his team to “rectify and deliver” the Snowy 2.0 and the Kurri Kurri projedts.
“Their expertise will contribute to Snowy Hydro’s role underpinning the reliability and affordability of the National Electricity Market and the transition to net zero by 2050.”
He said Knox has had his term extended for a further 18 months “to help with the transition of the incoming Managing Director.”, while Dodds and Moses will help “ensure continuity while the new Managing Director sets a new direction for the organisation.”
Knox was paid $250,000 in 2022 for his role as chair of the board, while Dodds and Moses received $150,000 and $125,000 respectively.
Barnes has a five year contract.
