13 Dec 2011

Power price rules review delayed

1:47 pm on 13 December 2011

The Electricity Authority will delay a review of the provisions for calling an undesirable trading situation, which allows it to reset wholesale power prices, until a court case is decided.

The regulator says it will wait until the High Court issues a decision over a challenge to its decision to retrospectively lower a spike in prices in late March.

The court's decision is expected before the end of February.

The authority decided to lower prices from $20,000 to $3000 per megawatt hour after it deemed the higher prices undesirable and a threat to the integrity of the market.

Genesis Energy, Contact Energy and Todd Energy challenged the decision.

The Electricity Authority had indicated it may amend the Code.