The ACCC has issued a draft determination proposing to grant authorisation to the Municipal Association of Victoria and 48 Victorian Councils to pool their electricity demand and place a single tender calling for proposals for the supply of retail electricity services and renewable energy certificates (i.e. Large Scale Generation Certificates) from an electricity retailer. The ACCC proposes to grant authorisation for 11 years.
The ACCC considers that the Councils collectively tendering for their electricity needs is likely to result in public benefits, including transaction cost savings and facilitating greater competition for the supply of electricity to the Councils. There is likely to be minimal detriment to the public. The combined electricity demand of the Councils is less than 1 percent of Victorian consumption.
The ACCC has also granted interim authorisation to allow the Councils to commence the proposed tender process, but not to enter into any contracts, prior to the ACCC making its final decision.
The ACCC invites submissions in relation to the draft determination by 22 January 2019 before it makes its final decision, which is expected to be in late January or February 2020.
Further information about the ACCC’s draft determination and the application for authorisation is available on the ACCC’s public register at: Municipal Association of Victoria.