Darebin City Council & Ors

Summary

On 29 July 2020, the Darebin City Council lodged an application on behalf of itself and others (Darebin City Council & Ors) for revocation and substitution under the Competition and Consumer Act 2010 (Cth) to alter authorisation AA1000459 granted on 31 January 2020. Authorisation AA1000459 was granted to allow Victorian local councils which are parties to the authorisation to pool their electricity demand and place a single tender calling for proposals for the supply of retail electricity services and renewable energy certificates (i.e. Large Scale Generation Certificates) from an electricity retailer.

The alterations to the authorisation sought in the current application for revocation and substitution would:

  • add three new councils to the group
  • remove four councils and Municipal Association of Victoria, who no longer wish to participate in the arrangements, from the group
  • replace Municipal Association of Victoria as leading procurement organisation to conduct the tender process with Darebin City Council.

Darebin City Council & Ors are seeking authorisation for the amended arrangements for eleven years.

Darebin City Council & Ors have also requested interim authorisation to allow them to conduct the tender process, and negotiate the terms and conditions of their electricity supply agreements, prior to the ACCC’s final determination in relation to the substantive application for authorisation. Interim authorisation is sought because the participating Councils wish to issue the request for tender in late August/early September 2020. Darebin City Council will not award the tender unless and until final authorisation is granted.

Darebin City Council & Ors submitted an amendment to the 29 July 2020 application to allow for the addition and removal of local government councils in the future, in certain circumstances, without having to apply to the ACCC for a variation to the authorisation.

On 26 August 2020, the ACCC issued a draft determination in relation to the original application proposing to grant authorisation for 11 years. The ACCC also granted interim authorisation to allow Darebin City Council & Ors to conduct the tender process while the ACCC continues its assessment of the application.

The ACCC is now seeking submissions in relation to the draft determination and the amended application by 18 September 2020. For further information about the application and how to provide a submission to the ACCC, please refer to the links below.

An indicative timetable is set out below for your information.

Indicative date

Stage in assessment process

29 July 2020

Lodgement of application and supporting submission.

5 August 2020

Public consultation process begins.

14 August 2020

Closing date for submissions on interim authorisation.

26 August 2020

Draft determination released.

18 September 2020

Submissions on draft determination due.

October/November 2020

Final determination 

Applicant(s)

  • Darebin City Council

Authorisation number(s)

  • AA1000525-1