On 13 December 2023, the Water Services Association of Australia (WSAA) applied on behalf of itself, and current and future WSAA Members who are water utilities that procure gaseous chlorine (together, the Participants), for authorisation to engage in certain conduct for the purpose of improving the resilience of the supply chain of gaseous chlorine in Australia. Gaseous chlorine is a chemical used to treat water for safe drinking.
On 15 April 2024, the Australian Competition and Consumer Commission (ACCC) issued a draft determination proposing to grant authorisation for a period of 5 years. The ACCC also granted interim authorisation to enable the Participants to begin negotiations and information sharing but not give effect to any contracts, while the ACCC considered the substantive application.
The ACCC has authorised the Participants to engage in the following activities for the purposes of improving security of supply of gaseous chlorine in Australia for the Australian water authorities:
- collective negotiation with suppliers to import gaseous chlorine into Australia
- collective negotiation with suppliers of chlor-alkali products to construct a new gaseous chlorine bottling and drumming facility in Australia, including collective negotiation of supply contracts
- sharing information about the volume of gaseous chlorine required by the Participants or the price of acquiring gaseous chlorine for the purposes of (1) and (2) above
- making and giving effect to contracts recording any terms collectively negotiated under (1) or (2) above.
The ACCC considers that the authorised conduct is likely to result in public benefits in the form of increasing the likelihood of improving the supply chain resilience of gaseous chlorine by the construction of a new bottling facility and/or establishing importation of packaged gaseous chlorine, some transaction cost savings and the potential for enhanced competition in the supply of packaged gaseous chlorine. The ACCC considers that the conduct is likely to result in limited, if any, public detriment due to reduced competition between the Participants for the acquisition of gaseous chlorine.
On 23 May 2024, the ACCC issued a final determination granting authorisation AA1000657 for 5 years until 14 June 2029.
Further details about the application and determination are available on the ACCC’s public register.