The ACCC has issued a determination granting authorisation to Macquarie Capital (Australia) and its parent company Macquarie Corporate Holdings (Macquarie Group) to identify a group of buyers and collectively negotiate power purchasing agreements with the developer of a new renewable energy project in Victoria, currently a large-scale wind farm.
Authorisation is granted with a condition that requires Macquarie to provide a public list of the members of the buying group once they are known, including future members that join the group.
Authorisation is granted for 14 years. This period reflects the time taken to negotiate supply agreements, for a new wind farm to reach commercial operation, and the proposed contract term.
The ACCC considers that the proposed joint purchasing arrangements are likely to result in public benefits in the form of transaction cost savings, greater investment in and competition for the supply of electricity, and environmental benefits through a reduction in greenhouse gas emissions.
The arrangements involve a cap on volumes of electricity that will be purchased by the group which account for a relatively small proportion of electricity demand in the relevant markets. The risk of any public detriment arising from the proposed conduct is therefore minimal.
Further information about the ACCC’ determination is available on the ACCC’s public register at: Macquarie Corporate Holdings Pty Ltd & Ors.