A Hunter council is considering its legal options against a power supplier that stopped supplying it electricity, triggering intervention by the Australian Energy Regulator.
The Herald reported last week the regulator initiated a Retailer of Last resort process for about 500 customers of Mojo Power East after the company stopped selling power to five Hunter and Central Coast councils.
The councils - Cessnock, Muswellbrook, Upper Hunter, Maitland and Central Coast - plus Lake Macquarie signed a 10-year agreement with Mojo Power in January to supply power for large sites and street lighting.
Lake Macquarie was the only council that did not novate to Mojo Power East from Mojo Power, and therefore says it is not affected by the company failure, but is keeping a close eye on the situation.
Mojo and Mojo East are both run by parent company iON Holdings.
All five councils are now being serviced by Retailer of Last Resort, Energy Australia and are discussing their options for ongoing power supply.
Cessnock council said it was "considering its legal options in regards to the Mojo Power East contract". The council said it was reviewing its options for procuring a new contract and expected its electricity costs to be "significantly" affected.
Upper Hunter council will discuss the matter in a confidential session at its ordinary meeting on Monday night, but said it did not have plans to pursue legal action.
Muswellbrook council will also speak about the issue confidentially at its ordinary meeting on Tuesday.
