The ACCC has issued final determinations granting authorisation to two separate buying groups:
- the Barwon Region Renewable Energy Project and
- the Western Australian Local Government Association (WALGA) proposed energy group
Barwon Water, Barwon Health and Geelong Port sought authorisation in June 2021 to create a joint renewable energy purchasing group (the Barwon Region Renewable Energy Project) to pool their electricity demand and to jointly tender and negotiate a Power Purchasing Agreement. Authorisation is granted for 12 years and 6 months, until 30 March 2034.
WALGA also sought authorisation in June 2021, to enable local governments to pool their electricity demand and collectively tender and negotiate an electricity supply arrangement, including renewable energy certificates. Authorisation is granted for 15 years, until 30 September 2036.
The ACCC considers that the proposed joint purchasing arrangements in both applications are likely to result in public benefits in the form of transaction cost savings, environmental benefits through a reduction in greenhouse gas emissions, and greater investment in and competition for the supply of electricity.
Both applications involve volumes of electricity which account for a relatively small proportion of electricity demand in the relevant markets. The risk of any public detriment arising from the proposed conduct is therefore minimal.
Copies of the ACCC’s final determinations are available on the ACCC’s public register at Barwon Water & Ors and Western Australian Local Government Association (WALGA)