The Australian Competition and Consumer Commission has decided to amend the interim authorisation* granted to the capacity distribution system proposed by Port Waratah Coal Services to address the queue of coal ships at the Port of Newcastle, ACCC Chairman, Mr Graeme Samuel, said today.
"Under the amended interim authorisation, coal producers will not be able to sell coal export allocations to one another".
The ACCC issued a draft decision in April proposing to grant authorisation. It is currently consulting the Hunter Valley coal industry on this draft decision.
When the ACCC issued its draft decision, it also reconsidered the interim authorisation it granted on 5 March and allowed it to continue.
However, the ACCC was not previously made aware that it is possible for producers to sell allocations to one another.
"The ACCC considers that the ability for producers to sell allocation, rather than just being able to swap, is a potentially significant and contentious aspect of the system. It would like to consider it in more depth before deciding whether or not to allow it".
The interim authorisation (as amended) will continue until the ACCC issues a final decision on whether to grant substantive authorisation to the capacity distribution system. It anticipates being able to issue a final decision in June.
However, Mr Samuel emphasised that this decision does not necessarily mean that selling allocation will not be authorised in the ACCC's final decision.
The capacity distribution system has been operating since the beginning of April under the interim authorisation granted by the ACCC.