So RECs will be have a floor at $40. This expalanis why CBD is holding on to thiers, as the price is $35.55 now (http://www.climatespectator.com.au/ - bottom right of page). However, they have had to redeem some now to get some cashflow ($3.2M).
If Origin is providing customers with RECs for $44 , they must anticipate a rise above the $40 floor from 2011, which would also be relevant for CBD
CBD Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
