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ACCC to authorise Gladstone Power supply agreements

07/05/2010

The Trade Practices Act 1974 prohibits agreements which have the effect of lessening competition. However, the Australian Competition and Consumer Commission has power  to authorise such arrangements when it is satisfied that the public benefit from the conduct outweighs any public detriment.  Authorisation provides immunity from court action for conduct which is otherwise illegal.

The ACCC proposes to authorise changes to supply agreements about electricity generated by the Gladstone Power Station and supplied to its customers.  The agreements were first authorised by the ACCC in 1994. The operators of the Gladstone Power Station have applied for authorisation to amend these agreements so that they comply with the National Electricity Law and the National Electricity Rules. The ACCC proposes to grant authorisation until 29 March 2029, to coincid with the term of the Agreements.

The ACCC considers that secure, reliable and cost effective supply of power to the Boyne Island Smelter is likely to contribute to the value of exports and the Australian economy.  Further, it is thought to facilitate the supply of electricity into the National Electricity Market and enhance the flexibility of the Gladstone Power Station in the National Electricity Market.

Read the full text of the draft determination.

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