The Australian Competition and Consumer Commission has granted interim authorisation for 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 has allowed the parties to negotiate to address any supply issues, while the application for authorisation is considered,” ACCC Deputy Chair Dr Michael Schaper.
Interim authorisation does not allow the applicants to enter into agreements with Anglo Coal, and the granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.
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 has sought submissions from interested parties on the applicants’ substantive application for authorisation. A draft decision on the substantive application is likely to be issued in September or October.
Further information is available at Authorisation register.