The ACCC has issued a draft determination proposing to authorise the Australian Energy Market Operator Limited (AEMO) to allow gas and electricity industry participants to co-operate on measures to ensure secure and reliable energy supply and integrity of wholesale markets during the COVID-19 pandemic. The ACCC proposes to grant authorisation until 31 March 2021.
Under the proposed authorisation, AEMO and participants in Australian gas and electricity markets would be permitted to cooperate to ensure the ongoing safety, security, or reliability of Australian energy systems during the COVID-19 pandemic by:
- sharing information regarding ongoing operation at their facilities
- co-ordinating repairs and maintenance
- sharing essential personnel
- sharing essential inputs.
Cooperation between energy market participants under the proposed authorisation must be facilitated by AEMO and does not include information sharing or agreements about the wholesale or retail price of energy, or retail cost or profits.
The conduct that the ACCC proposes to authorise has been narrowed compared to what was originally proposed by AEMO. The ACCC has also revoked its previous interim authorisation (granted on 17 April 2020) and issued a new interim authorisation for the same range of conduct that it proposes to authorise.
The ACCC considers that the proposed conduct is likely to result in public benefits by providing greater capacity to ensure the ongoing safety, security and reliability of Australian energy systems and minimising costly delays to maintenance. The ACCC also considers that the scheme is likely to result in some public detriment by reducing competition in wholesale electricity markets and competition for maintenance services and other inputs.
Authorisation provides businesses with legal protection for arrangements that may otherwise risk breaching the law but are not harmful to competition and/or are likely to result in overall public benefits.
The ACCC invites submissions in relation to the draft determination by 14 August 2020. Further information about the draft determination and how to provide a submission to the ACCC's public register at: Australian Energy Market Operator (AEMO).