Energy minister to look at council power provider problem

POWER CONTRACT: Minister for climate change and energy Chris Bowen says his office will look into the matter. Picture: Elesa Kurtz

Federal energy minister Chris Bowen says he has asked his department to look into the power contract issue affecting Hunter councils.

The Herald reported this week Mojo Power, which has a 10-year agreement with Central Coast, Lake Macquarie, Cessnock, Maitland, Muswellbrook and Upper Hunter councils, had tried to pull the plug on the contract.

"I have asked my department to meet with Lake Macquarie City Council to discuss this matter and report back to me and I have written to the mayor letting her know this," Mr Bowen said.

"While I won't discuss the particulars of an agreement between the parties, I will reiterate that the Australian Energy Regulator has this government's full backing in investigating conduct by retailers in the market that they believe to be contrary to the needs of their customers and to reinforce the Federal Government's expectation that all retailers act in accordance with the law."

Mr Bowen said he'd discussed the issue with state counterparts and would address it, namely the regulator closely monitoring the market and participant conduct.