The Australian Competition and Consumer Commission has agreed in-principle not to intervene in the Duet Consortium bid for the Dampier to Bunbury Natural Gas Pipeline after agreeing in-principle to court enforceable undertakings, ACCC Chairman, Mr Graeme Samuel, confirmed today.
"The final decision not to intervene will depend on the acceptance by the ACCC of the final form of the undertakings.
"The ACCC was concerned that Alinta Limited's 20 per cent interest in the Duet Consortium would give it the ability to affect anti-competitive outcomes in relevant downstream markets, making it much harder for new entrants to retail gas and generate electricity in Western Australia.
"In response, the Duet Consortium offered undertakings designed to alleviate the ACCC's competition concerns. The undertaking terms that have been agreed to on an in-principle basis will prevent Alinta from being involved in any commercial negotiations between the Duet Consortium and other shippers that transport gas down the DBNGP.
"The agreed terms also include assurances on the future expansion of the DBNGP, and a 20 year commitment not to seek revocation of coverage".
Whilst an in-principle agreement has been reached, the undertakings have not been finalised. Negotiations with the Duet Consortium are continuing.
Previously the ACCC has stated that it will closely consider the competition effects of all significant vertical integrations of energy supply chains, especially if the proposed integration involves parties with significant downstream interest such as Alinta has in Western Australia. The ACCC remains firmly commitment to this principle. The ACCC decided not to intervene in this matter only after it was completely satisfied that the in-principle terms would address the competition issues raised by the Duet Consortium bid.