The Australian Competition and Consumer Commission will not intervene in the proposal by ACTEW Corporation Limited and the Australian Gas Light Company to create an ACT-based multi-utility partnership, Acting ACCC Chairman, Mr Allan Asher, said today.
"In making its decision, the ACCC has undertaken a large number of market inquiries, particularly with retailers already supplying gas and electricity in other States. On the basis of these inquiries, the ACCC believes that the proposal would be unlikely to cause significant competition concerns.
"With the introduction of contestability in gas and electricity markets, the ACCC expects that competition will develop in electricity and gas markets in the ACT.
"There already appears to be emerging competition in the ACT to supply large electricity customers, with prices for these customers having fallen substantially with the introduction of competition.
"And although the development of competition in gas retailing has lagged behind that for electricity, most of the major energy retailers operating on the eastern seaboard have indicated that they are positioning themselves to supply both gas and electricity.
"In reaching its decision, the ACCC also took into consideration the ACT Government's continuing responsibility to ensure ACT energy consumers are protected.
"In supporting the merger, the ACT Government has indicated that the partnership will be subject to overall regulatory oversight under the proposed ACT Utilities Act. The ACCC understands that the Act will strengthen the position of the Independent Pricing and Regulatory Commission in addressing consumer protection".