ASX sought RBA help to revive electricity market

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The bourse asked the RBA for help when trading of its electricity derivatives waned amid market volatility.

The ASX sought help from the Reserve Bank of Australia to revive trading on its electricity market after liquidity dived as soaring gas and electricity prices triggered government intervention and some small retailers struggled to find a clearinghouse.

Activity on the ASX’s suite of electricity contracts dried up and the bourse sought the RBA’s help to revive them.clearing services due to concerns they were too heavily exposed due to the recent price swings,Those that could still trade on the bourse, however, have been reluctant to do so after the government promised to unveil its policy to lower utility bills for households and businesses.

Labor’s gas cap has been fiercely opposed by the fossil fuel industry, who claim it will not aid supply – the root cause of the issue, but wholesale prices have fallen significantly. A fall in prices will also aid retailers, who have to post margin with their clearinghouses. Industry executives said the surge in wholesale prices had meant hundreds of millions of dollars of capital were tied up in margin calls, straining the balance sheets of the industry and curtailing investment.The Australian Financial Review

 

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Colpackham Col. Your GPWF article in the financial review 19 April was more like an advertorial than a story. You did not talk about how the project is still in court for not adequately buffering Brolga, for their BAMP and EMP both being at odds with FFGA and Planning laws. Truth matters

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