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CS Energy to defend market manipulation claims in class action

Business

The State Government’s CS Energy will defend a class action claim of market manipulation of electricity prices and has raised questions on the motives of the case.

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Piper Alderman filed the claim last year claiming CS Energy and Stanwell Corporation engaged in bidding games or trading strategies that were designed to artificially create a scarcity of electricity supply.

About 40,000 people have signed up to be a part of the action which is expected to start today in the Federal Court.

The class action is seeking to recover compensation for all electricity customers in Queensland for a period between August 2014 and December 2019.

The two government-owned corporations control about 70 per cent of electricity dispatched in Queensland.

CS Energy said it would defend the claim and said it “totally rejects the false claims about us”.

“Queenslanders should question who will benefit from a claim like this – is it Queenslanders or an overseas litigation funder whose main interest is making a return on their investment in class actions?” the GOC said.

“There is strict oversight of the national electricity market by the Australian Energy Regulator.

“Previous investigations found price changes were due to a wide range of influencing factors, including extreme weather fluctuations.

“Queenslanders have enjoyed the lowest average wholesale electricity priced in the national electricity market for the past three years.

Stanwell has also rejected the claims and will also defend the claim.

 

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