Electricity company Hydro Tasmania's storages continue to feel the brunt of below average rainfall just two months into the new financial year and despite good rains in the first half of August.

While inflows were above average for August, early September inflows are well below average and the indications are that this trend will continue for the month without significant spring falls.

This means Hydro Tasmania will continue to import significantly across Basslink as it continues to protect storages following a dry winter across the State.

Hydro Tasmania’s manager energy resources, David Marshall, said that while storages rose by 7.5% in August to 27.1% full, this was 4.5% lower than the same time last year. The rise was mostly a result of the heavy rains on August 8, and August 11, 2007 which resulted in widespread flooding.

Mr Marshall said: The Pieman, Forth and Derwent rivers all experienced peak flows during that period that exceeded previously recorded maximum flows.

Unfortunately, some of the benefit of the heavy rain was unavoidably lost when it spilled over the dams despite operating all the power stations at maximum output.