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Power prices rise after companies use rivals’ outages to ‘profit maximise’, Australian regulator says

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Australian Energy Regulator says behaviour of big power companies was ‘permissible’ under national rules but ‘may not have been in the best interests’ of consumers

Outages at Origin Energy’s Eraring power station and Delta’s Vales Point facility contributed to a sharp rise in power prices in May.Outages at Origin Energy’s Eraring power station and Delta’s Vales Point facility contributed to a sharp rise in power prices in May.

The behaviour by AGL and EA was “quite a contrast with offer behaviour of the previous week”, the AER said. Wholesale power prices make up about a third of power bills, with retail and network costs making up the rest. An extended period of high wholesale prices could mean the latest

 

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