Class action alleges electricity giants fudged supply numbers for profit

Class action alleges electricity giants fudged supply numbers for profit

Law firm Piper Alderman has launched a class action on behalf of all Queenslanders against two of the State's leading electricity giants.

The action alleges Stanwell Corporation and CS Energy engaged in "bidding games" designed to artificially create scarcity of supply of electricity and to spike energy prices for their own profit.

Stanwell and CS Energy control around 70 per cent of the electricity dispatched in Queensland.

Allegations of market power abuse by the two giants to manipulate the price of electricity have previously been investigated by the Queensland Productivity Commission, the Australian Energy Market Commission, the Australian Energy Regulator and the Australian Competition and Consumer Commission in 2017.

The law firm's class action will seek to recover compensation for anyone who purchased electricity in Queensland in the period between August 2014 and December 2019.

"This case is about abuse of market power," says Piper Alderman head of dispute resolution and litigation Greg Whyte.

"Stanwell and CS Energy have used their position to unlawfully manipulate the wholesale cost of electricity and that has driven up the prices paid by all Queensland businesses and customers," says Whyte.

"It's had a devastating effect on the Queensland economy. We are trying to stop that behaviour and recoup the losses that illegal conduct has caused."

The litigation is fully funded with all costs underwritten by LCM, a subsidiary of Litigation Capital Management.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Origin slapped with $17m fine for failing to protect vulnerable customers

Origin slapped with $17m fine for failing to protect vulnerable customers

Australian energy giant Origin Energy (ASX: ORG) has today been ord...

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

Salad chain FISHBOWL swims upstream with new stores in Brisbane, Gold Coast

A Japanese-inspired salad bar from Bondi with "No More Fast Fo...

QLD and NSW floods become third costliest disaster, insured losses hit $4.8 billion

QLD and NSW floods become third costliest disaster, insured losses hit $4.8 billion

The recent floods that ravaged parts of Southeast Queensland and No...

Go1 co-founder Vu Tran joins board of recruitment group PeopleIN

Go1 co-founder Vu Tran joins board of recruitment group PeopleIN

Brisbane-based workforce management company PeopleIN (ASX: PPE) has...