The Australian Competition and Consumer Commission acknowledges AGL’s application to the Australian Competition Tribunal which was filed today seeking an authorisation that an acquisition of Macquarie Generation be allowed to proceed on public benefit grounds. This application follows the ACCC’s decision that it would oppose the proposed acquisition because the ACCC considered that it was likely to have the effect of substantially lessening competition in the retail electricity market in NSW.
“The issues raised by these proceedings are of crucial importance for the structure and future competitiveness of the electricity generation and retail markets in NSW and beyond, and the ACCC welcomes the opportunity to have these issues considered by the Tribunal,” ACCC Chairman Rod Sims said.
The ACCC worked extremely hard to reach a view on whether AGL’s proposal to acquire Macquarie Generation was likely to substantially lessen competition within a short timeframe that accommodated the commercial requirements of the NSW Government and AGL.
This proposal requires an assessment of competition in complex markets, and has the potential to have a significant and long lasting impact on electricity consumers. The ACCC will work to ensure that the Tribunal has all relevant information and evidence before it in order to assess the competition and public benefit issue.