The long-running dispute between Basslink and the Tasmanian Government — Hydro Tasmania is a subsidiary of the government — went to arbitration in April after the government notified the company of the same.
In a statement issued on Friday, Basslink said it had always maintained that the six-month cable failure was a force majeure event — an act of God — under the Basslink Services Agreement.
"Despite the independent investigation that was undertaken by independent experts appointed by Basslink, Cable Consulting International, which concluded that the cause of the incident was 'unknown', Hydro Tasmania did not accept the incident was a force majeure event and withheld, amongst others, facility fees on the basis there was no force majeure event," the Basslink statement said.
The dispute centres around a Basslink outage that occurred in December 2015 and was not fixed for six months. In March, the government formally lodged a notice of dispute, claiming damages of $122 million for the outage.
Charges have been flung back and forth over the incident. On 20 December 2017, Hydro Tasmania said it had identified the cause of the Basslink failure and cited two experts who said it was because Basslink had exceeded its design limit.
But two days later, Basslink chief executive Malcolm Eccles dismissed the findings, saying that the expert reports cited as proof merely outlined one possible cause of the outage.