Darebin City Council & Ors

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 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 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.

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 continued its assessment of the application. The ACCC did not receive any submissions in relation to the draft decision or the amended application for authorisation.

On 9 October 2020, the ACCC issued a determination granting authorisation to the amended application until 31 October 2031. A copy of the authorisation is available below.