The dissapreement is a little more complex than that.
If Ausgrid argues that the Crbon Tax is not allowed to be passed through I think they are in a Loose postion only. there is enough precedence and I believe most legal agreements do have a clause around passing through any legislative changes and would be surprised if there wasnt one in AEJ & Ausgrids agreement.
What I think the real arguement is is who get the Crbon credits. I believe that there is no doubt that the carbon tax has to pass through, the question is what amount of the Governments Credits and assitance must be passed through to Ausgrid.
If you read the Annual reporty the directors state that the impact to AEJ is between -$2.6m and +$160m in value.
This to me doesnt say that AEJ is insolvent.
The half way point is that AEJ passes through the Crabobn tax as well as any assitance that the Federal Government provides AEJ. (Tough this defeats the principal of assitance for carbon polluters to get their act together)
My belief (and yes I hold AEJ and possible may be a top 20 holder now) is that the courts will support AEJ on the principal of what the Federal government was trying to do.
If not the courts will be filled up with all the other Wholesalers trying to force the generators to swallow the Tax! It just will not happen
AEJ Price at posting:
$9.50 Sentiment: Hold Disclosure: Held
