NZX thought it was still on track to sign a deal with EnergyHedge as late as last week, but has been left out in the cold after the energy consortium looked across the Tasman.

But NZX chief executive Mark Weldon is adamant that the decision to base New Zealand’s electricity derivatives market in Australia would lead to barriers to genuine price competition.

EnergyHedge has diplomatically responded to NZX’s contention that signing a deal to develop the local electricity futures and options market with ASX would come at a cost to the country, saying the local exchange’s exclusion from the deal was a matter of timing.

EnergyHedge was established by Contact Energy, Genesis Power, Meridian Energy, Mighty River Power and TrustPower last year to advance the development of the electricity forward market in New Zealand.

Vector says a joint project by EnergyHedge and NZX to set up an electricity hedge market is a ‘veneer’.

EnergyHedge and NZX this week announced they were in discussions about setting up an exchange traded and centrally cleared electricity derivatives market.