3 Apr 2012

Power spike price ruling to be appealed

11:58 am on 3 April 2012

Genesis Energy is planning to appeal a High Court decision, which backed the Electricity Authority's move to declare an Undesirable Trading Situation after a massive spike in the price of electricity.

Genesis, Todd Energy and Contact last year appealed the authority's decision to reset prices, arguing it rewarded bad business practice and that companies should have had hedging in place.

But in February the High Court dismissed the appeal, saying the authority was right as the situation was a threat to the integrity of the wholesale electricity market.

The Electricity Authority says Genesis has since indicated its intention to seek leave to appeal the High Court's ruling.

The authority says in the meantime, the stay on the publication of final prices continues, and a review of UTS provisions remains deferred.