The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise amendments to agreements in relation to electricity generated by the Gladstone Power Station and supplied to the Boyne Island Smelter and the National Electricity Market (the GPS Agreements).
The Gladstone Power Station and the Boyne Island Smelter are located in the central Queensland coast region.
The original GPS Agreements were authorised by the ACCC in 1994. The participants in the Gladstone Power Station Joint Venture have applied for authorisation to amend these agreements to comply with the National Electricity Law and the National Electricity Rules. The ACCC proposes to grant authorisation until 29 March 2029, coinciding with the term of the GPS Agreements.
"The amendments provide a mechanism for the Gladstone Power Station to continue to obtain a secure, reliable and cost effective supply of power to the Boyne Island Smelter. The ACCC considers that this is likely to contribute to the value of exports and the development of the Australian economy," ACCC chairman Graeme Samuel said.
"The ACCC also considers that the amendments are likely to facilitate the supply of electricity into the National Electricity Market and enhance the flexibility of Stanwell (the nominated generator) to use the Gladstone Power Station to participate in the National Electricity Market."
The ACCC may authorise arrangements when it is satisfied that the public benefit from the conduct outweighs any public detriment. Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.
The ACCC now invites comments on the draft determination. The ACCC's draft determination will be available from the ACCC website on the authorisations public register www.accc.gov.au/AuthorisationsRegister and by following the links to this matter. Parties wishing to make submissions should do so by 7 May 2010.