ACCC proposes to allow electricity generators to start joint negotiations

12 September 2013

The Australian Competition and Consumer Commission is proposing to allow Queensland power generators CS Energy, Callide Energy, InterGen and Callide Power Management (the applicants) to jointly renegotiate existing coal supply arrangements with Anglo Coal.

The arrangements relate to coal supplied to the Callide B and Callide C power stations in central Queensland by the nearby coal mine owned by Anglo Coal. The applicants have previously been granted authorisation by the ACCC in 2006 to jointly negotiate with Anglo Coal for the purposes of a price review.

“The ACCC considers joint negotiations may result in a public benefit through reducing transaction costs, and considers the joint negotiations are unlikely to result in any detriment,” ACCC Commissioner Dr Jill Walker said.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The ACCC will now seek submissions from interested parties in response to the draft determination. The ACCC anticipates a final decision is likely to be made in October.

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