Queensland Electricity Giants Cleared of Market Manipulation
In a landmark ruling, the Federal Court has dismissed claims that two Queensland government-owned electricity generators, Stanwell Corporation and CS Energy, manipulated the market to maximize profits. The decision brings to a close Australia's largest energy class action, which was initiated by Ronnie and Nick Adamson from the Stillwater Pastoral Company on behalf of over 47,000 customers.
The class action, led by law firm Piper Alderman, alleged that Stanwell and CS Energy, controlling roughly 70% of the state's energy market, abused their dominant position by manipulating the bidding system in the National Energy Market (NEM). They were accused of bidding late in the settlement process to artificially create scarcity and inflate energy prices.
However, Justice Derrington found no evidence of market manipulation. In her judgment, she stated that the companies' conduct was legitimate "profit maximization behavior" and that they did not possess a substantial degree of market power.
Both Stanwell and CS Energy welcomed the court's decision. Stanwell emphasized its commitment to operating within the rules and supporting a competitive electricity market, while CS Energy reiterated its dedication to complying with market regulations.
The applicants have indicated a potential appeal, but the companies declined further comment until the matter is resolved.