The ACCC has issued draft determinations proposing to grant authorisation to two separate buying groups:
- the Barwon Region Renewable Energy Project and
- the Western Australian Local Government Association (WALGA) proposed energy group.
Under the authorisations, members of each group are permitted to conduct joint tenders and enter into joint contracts for electricity generated from renewable energy facilities in Victoria and Western Australia, respectively.
The ACCC also granted interim authorisation to each group to allow them to commence their tender processes and collective negotiations for the supply contracts.
Barwon Water, Barwon Health and GeelongPort sought authorisation in June 2021 to create a joint renewable energy purchasing group (the Barwon Region Renewable Energy Project) to pool their electricity demand and to jointly tender and negotiate a Power Purchasing Agreement.
WALGA also sought authorisation in June 2021, to enable local governments to pool their electricity demand and collectively tender and negotiate an electricity supply arrangement.
The ACCC considers that the proposed joint purchasing arrangements in both applications are likely to result in public benefits in the form of transaction cost savings, environmental benefits through a reduction in greenhouse gas emissions, and greater investment in and competition for the supply of electricity.
Both applications involve volumes of electricity 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’s draft determinations and interim authorisation decisions are available on the ACCC’s public register at: Barwon Water & Ors and Western Australian Local Government Association (WALGA)