The ACCC has issued a draft determination proposing to grant authorisation to a proposed joint renewable energy purchasing group (Melbourne Renewable Energy Project 2). Authorisation would allow current and future members to pool their electricity demand and collectively tender with electricity suppliers on the basis of that aggregated demand. The ACCC proposes to grant authorisation for 15 years.
The ACCC considers that the collective arrangements are likely to result in public benefits, including transaction cost savings and facilitating greater competition for the supply of electricity to participating members of the group. There is likely to be minimal detriment to the public. Under the terms of the authorisation sought the combined electricity demand of the participating group members must remain below 1% of Victorian consumption.
The ACCC has also granted interim authorisation to allow the Applicants to conduct the proposed tender process prior to the ACCC making its final determination, but not enter into any supply agreements.
The ACCC invites submissions in relation to the draft determination by 5 December 2019 before it makes its final decision, which is expected to be in December 2019 or January 2020.
Further information about the ACCC’s draft determination and the application for authorisation is available on the ACCC’s public register at: Melbourne Renewable Energy Project 2.