The Australian Competition and Consumer Commission has granted interim* authorisation to Callide Power Management Pty Limited and CS Energy Limited to begin joint negotiations for a price review with Anglo Coal, ACCC Chairman, Mr Graeme Samuel, announced today.
CS Energy is the owner of the Callide B power station, while CPM and CS Energy are 50/50 joint venture partners in the Callide C power station. Anglo Coal is the owner of the Callide coal mine.
In August 2006, the ACCC received an application for authorisation from CS Energy and CPM to jointly negotiate the price review mechanism under the existing coal supply agreements between each of the Applicants and Anglo Coal.
CS Energy and CPM also applied for interim authorisation for the arrangements, while the ACCC considers the merits of the substantive application.
The ACCC has granted interim authorisation for CS Energy and CPM to commence joint negotiations. However, interim authorisation is not granted to the Applicants to conclude the joint negotiation and enter into arrangements.
"In granting interim authorisation for the commencement of joint negotiations, the ACCC has taken into account Anglo Coal's lack of opposition to the joint negotiation process, the narrow scope of the negotiations and the significant common ownership between Callide B and Callide C", Mr Samuel said.
"The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation".
More information regarding the application and granting of interim authorisation, including the terms, will be available by following the Authorising anti-competitive conduct and Authorisations links on the ACCC's website.