‘Arm-twisting’: Authority eases market regulation for gentailers

Worried small power firms and traders have complained to the Electricity Authority about a unilateral rule change damaging confidence in the market. “This could trigger a cascade of exits, leading to heightened volatility and contagion risk across the market,
Contact, Genesis, Meridian and Mercury are legally required to act as “market-makers” every afternoon on the electricity derivatives market, traded through the ASX, in order to provide sufficient liquidity that energy retailers and corporates can hedge their longterm power prices.