Ergon Energy & Energex - Proposed joint venture for IT and telecommunications services

Summary

Ergon Energy Corporation Ltd and Energex Limited's proposed joint venture for information technology (IT) and telecommunications services

Market definition

The retail market for the supply of electricity to contestable customers in Queensland

Competition analysis

The ACCC decided not to oppose Energex Ltd and Ergon Energy Corporation Ltd's proposed joint venture for IT and telecommunication services pursuant to sections 45 and 50 of the Trade Practices Act 1975, for the following reasons:
* The joint venture for IT&T only involves a back-office function which appears unlikely to spill-over and impact on competitively sensitive activities by the parties in the retail market. In this regard, the ACCC noted that the parties appear to have sought to ensure that commercially sensitive information is not accessed or shared between them. For example, the parties plan to implement a ring-fencing protocol and to introduce specific procedures for commercially secret projects; and
* The thirteen other licensed retailers participating in the Queensland retail electricity market are likely to provide a competitive constraint to Energex and Ergon.

Merger type

Horizontal

Initiation

Parties