Regulator warns electricity contract issues may pose risk to competition

Independent electricity retailers can't access the right type of hedge contract to cover their needs, and this poses a potential risk to competition, the Electricity Authority says.The regulator’s review of risk management options for electricity retailers found the companies could secure substantial hedge cover through over-the-counter (OTC) contracts offered by gentailers.“Prices for most of these contracts are likely to be competitive," said Electricity Authority chief executive Sarah Gillies."However, we could not...