Melbourne City Council & Ors - Authorisations - A91532 & A91533

Summary

The applicants are Melbourne City Council and 13 other entities, including three other local councils, two tertiary education institutions and two banks. Their proposed conduct concerns an arrangement to jointly negotiate the terms and conditions of certain electricity sale agreements and to conduct a collective tender process. That is, they seek interim and final authorisation to implement the Melbourne Renewable Energy Project. This involves establishing a joint electricity purchasing group, whereby the applicants would pool their electricity demand and place a single tender into the market calling for proposals for an electricity supply agreement under which an energy retailer would enter into green-electricity agreements with each applicant. This would collectively support the development of a new 'utility-scale' renewable-energy system connected to the National Electricity Market. That is, the applicants will jointly conduct a tender process to identify and select an electricity retailer on the basis that this supplier (individually or with a developer) will use the green-electricity agreements to develop a new renewable-energy generation system. The system must be capable of supplying a quantity of carbon neutral electricity into the NEM that is equivalent to the quantity purchased by the applicants.

The applicants seek authorisation for 15 years.

On 14 April 2016 the ACCC granted interim authorisation for the applicants to conduct a joint tender process for electricity supply agreements and jointly negotiate the terms and conditions of their electricity supply agreements. The ACCC granted interim authorisation on the basis that no electricity supply contracts pursuant to the joint tender process will be entered into unless and/or until a final determination from the ACCC authorising the overall conduct comes into effect. A copy of the Statement of Reasons is available under the 'ACCC decisions' link below.

On 17 June 2016, the ACCC issued a draft determination proposing to grant authorisation for 15 years.

On 21 July 2016, the ACCC released a final determination granting authorisation to the applicants for 15 years.

Applicant(s)

  • Australia Post Corporation
  • Citywide Service Solutions Pty Ltd
  • Fed Square Pty Ltd
  • Melbourne City Council
  • Melbourne Convention & Exhibition Trust
  • Moreland City Council
  • NEXTDC Limited
  • National Australia Bank Limited
  • Port Phillip City Council
  • Royal Melbourne Institute of Technology
  • University of Melbourne
  • Yarra City Council
  • Zoological Parks and Gardens Board
  • mecu Limited

Authorisation number(s)

  • A91532
  • A91533