Electricity producer Synergy has been accused of price-gouging up to $100 million by Western Australia’s Economic Regulation Authority (ERA).
The ERA is bringing proceedings against Synergy after it says it breached market rules requiring it to sell electricity for around the same price it costs to produce.
The ERA examined 14,812 trading intervals by the company between March 2016 and July 2017, finding it increased its revenue by $40 to $100 million, which was directly related to its market power as a generator in the WA wholesale market.
Related article: ‘Generator gaming’ rebidding allegations shut down
It’s said there’s a likely flow-on effect to retail customers, a claim Synergy denies.
In a statement, the company said it was reviewing the ERA’s findings before considering its options.
“The investigation relates to wholesale electricity and is not related to retail tariffs which are set annually by the State Government,” it said.
“There is no impact on residential consumers.
“Synergy provided significant detail and worked with the ERA throughout the process.”
The report comes a week after AGL was accused of price-gouging after Hazelwood Power Station’s closure.