Don't overreact to energy crisis: Hydro

The chairman of Tasmania's government-owned energy company Hydro has warned authorities not to overreact to a recent supply crisis, which he says resulted from a once-in-three-centuries event.

Dam levels dipped to just 12 per cent after a record dry spring at the same time as a broken and inoperable Bass Strait electricity cable meant there was no backup source for the island state.

"I caution against a costly overreaction to the extremely rare events of 2015-16," Hydro chairman Grant Every-Burns said on Thursday, as a parliamentary inquiry continues to probe the energy crisis.