The excavation site for Snowy Hydro 2.0 at Talbingo. Photo: Snowy Hydro Facebook.
The Snowy Hydro 2.0 price tag is being examined in a government audit.
The Australian National Audit Office (the ANAO) is currently accepting submissions from the community as it examines the delivery of the multi-million dollar project.
The ANAO audit will examine if a 2023 contract reset was informed by sound planning and advice, and if Snowy Hydro Limited is effectively managing contract performance to ensure it receives “value for money”.
“The ANAO does not have a role in commenting on the merits of government policy but focuses on assessing the efficient and effective implementation of government programs, including the achievement of their intended benefits,” according to the ANAO’s website.
The pumped hydro project involves linking two existing dams (Tantangara and Talbingo) through 27 kilometres of tunnels.
A new underground power station will also be built.
In 2023, the company announced a so-called “reset”, after the project’s cost reached a revised cost of $12 billion.
It announced work carried out to the end of June 2023 had cost $4.3 billion, with a fixed-price EPC contract being described as “no longer fit for purpose”.
At the time, the completion date was also pushed out to 2028.
Those revelations triggered a move to an incentivised target cost contract model for the project.
This audit follows a 2022 audit, also carried out by the ANAO, which examined how effective Snowy Hydro Limited’s governance was in the early implementation of the project.
“The audit provides assurance to parliament that Snowy Hydro Limited has appropriate arrangements in place to effectively deliver Snowy 2.0,” it stated of the motivation for the audit.
According to the report, the project had appropriate oversight in its board of directors and an “appropriate basis” for procurement and contract management frameworks.
The previous audit did not make any recommendations to Snowy Hydro.
In a statement, a Snowy Hydro spokesperson told Region the company was aware of the audit.
“Snowy Hydro is actively engaging with the Australian National Audit Office as it progresses a performance audit of Snowy 2.0,” they said.
People can make submissions through the ANAO’s website until 4 January 2026. Its results are expected to be tabled in May 2026.
