Source: © russmac | Pixaby.com
Meridian Energy Limited (NZX:MEL) and Contact Energy Limited (NZX:CEN) could face substantial fines for manipulating the wholesale electricity price in 2020. The Electricity Authority is investigating the accusation that the electricity generators disposed of water from their hydro dams in an attempt to increase the wholesale electricity price
- Seven electricity retailers bought forward the complaint, including Flick, Haast Energy and Electric Kiwi.
- The Electricity Authority has proposed a NZ$11.3 million penalty for Meridian and a NZ$5.0 million penalty for Contact.
- Meridian has shrugged off the fees, noting that they hold hedges that will largely negate the fees' cost.
On 11 March, at the time of writing, Meridian shares were trading at $5.49, with no change.
On 11 March, at the time of writing, Contact shares were trading at $7.07, with no change.