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Contact Energy loses again in gas payment battle

By Phil Boeyen, ShareChat Business News Editor

Thursday 10th August 2000

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Contact Energy has lost another round in the legal battle to try to get Fletcher Energy to pay for gas it never used.

FEG buys gas from Contact and on-sells it to the Taranaki Combined Cycle Station in Stratford.

Because of power outages the station was unable to take gas at various times between August 1998 and July 1999, however Contact argued Fletcher Energy should still pay for the gas whether they used it or not.

An arbitrator ruled FEG did not have to pay, but Contact Energy sought to appeal the decision.

The High Court has now ruled Contact lacked grounds for appeal and has dismissed its application.

Fletcher Energy spokesman, Rick Webber, says he is pleased with the decision as it clarifies responsibilities for both parties.

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