A refrigerant gas recovery program will be extended to cover synthetic greenhouse gases (HFC and PFC refrigerants) following an interim authorisation* granted by the Australian Competition and Consumer Commission today.
"There is already an authorisation in place for a scheme administered by Refrigerant Reclaim Australia to recover and destroy used ozone-depleting gases", ACCC Chairman, Professor Allan Fels, said today. "This interim authorisation extends immunity to allow Refrigerant Reclaim Australia to broaden the scheme to include synthetic greenhouse gases in time for summer - the period during which products, such as air-conditioners and refrigerators, are most heavily used.
"The scheme will ensure that certain environmentally harmful gases are not released into the atmosphere, but the effect upon the price of ordinary consumer products will be negligible, at around 20 cents per refrigerator".
Under the authorised scheme, importers and manufacturers can enter a potentially anti-competitive agreement to add a $1 levy to the cost of each kilogram of refrigerant gas sold. This charge is passed onto end users.
The levy funds will be used to encourage and facilitate the recovery and recycling of reprocessable gases. They are also used to encourage the storage and pay for the safe destruction of unreprocessable gases. The aim of the scheme is to help protect the environment, including the Earth's ozone layer. A rebate is paid to both refrigeration contractors and refrigeration wholesalers who recover and return refrigerant. The scheme is also a way for industry to comply with its legal responsibilities under existing State/Territory environment protection law.
Interim authorisation allows the parties to engage in the conduct while the ACCC considers the merits of the substantive application. A decision to grant interim authorisation does not mean that the ACCC will necessarily grant final authorisation.
The interim authorisation does not compel any party to take part in the proposed arrangements but will provide immunity against prosecution under the Trade Practices Act 1974 for the conduct covered. Participation in the scheme is voluntary
* The Trade Practices Act 1974 prohibits competitors agreeing to work together in a way that reduces competition between them. Authorisation provides immunity from court action arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any public detriment.