Electricity futures market freezes as cartel chaos reigns

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Albo’s cowards had better wake up:

The sense of chaos engulfing Australia’s energy market has intensified as Macquarie has moved to restrict clearing services for electricity futures amid heightened concern about market volatility.

Electricity retailers have begun buying wholesale electricity for the coming years and would typically acquire hedges against those positions either through the ASX electricity futures or so-called over-the-counter derivatives such as contracts for difference.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.