Equinix (Australia) Enterprises Pty Ltd & Ors

Summary

On 15 June 2021 the Australian Competition and Consumer Commission (the ACCC) received an application for authorisation from Equinix (Australia) Enterprises Pty Ltd (Equinix), HSBC Bank Australia Limited (HSBC), Nike Australia Pty Limited (Nike), J.Aron & Company LLC (Goldman Sachs) and H&M Hennes & Mauritz Finance AB (H&M) (the Applicants).

This application relates to a proposed joint procurement process for an aggregated hedged volume of electricity and equivalent volume of Green Products from a solar or wind electricity generation facility connected, or to be connected, to the National Electricity Market, likely in New South Wales (Facility).

The Applicants propose to pool their electricity demand and place a single tender into the market calling for proposals for the terms on which a supplier (Seller) will enter into a Power Purchasing Agreement (PPA) with the Applicants in the form of a contract for differences (also known as a hedge) for electricity and for the physical delivery of ‘Green Products’ (including large-scale generation certificates) from a Facility.

Specifically, the Applicants seek authorisation to:

  • jointly conduct a tender process to identify and select a Seller, including the joint evaluation of tender responses and the negotiation of PPA terms;
  • enter into a PPA with the Seller on the same general agreed terms and conditions; and
  • consult with each other and make joint decisions regarding the ongoing administration and operation of certain aspects of the PPA during the term of the contract.

Further detail on the proposed conduct is available in the application for authorisation (from the link below).

The Applicants have requested interim authorisation to enable the joint tender process to commence as soon as possible, while the ACCC considers the merit of the application for authorisation.

On 15 July 2021, the ACCC issued a draft determination proposing to grant authorisation and granting interim authorisation. A copy of the draft determination and interim authorisation decision is available below.

The ACCC is currently seeking submissions in relation to the draft determination by 29 July 2021.

Indicative date

Stage in assessment process

15 June 2021

Lodgement of application and supporting submission.

22 June 2021

Public consultation process begins.

2 July 2021

Closing date for submissions from interested parties.

15 July 2021

Draft determination and interim authorisation decision.

29 July 2021

Closing date to request pre-decision conference and for submissions in response to the draft determination

August / September 2021

Final determination.

Applicant(s)

  • Equinix (Australia) Enterprises Pty Ltd

Authorisation number(s)

  • AA1000558-1

Applications

Document title Date

Decisions

Submissions - before draft decision

Document title Date