ACCC grants authorisation for electricity industry coordination
The Australian Competition and Consumer Commission (ACCC) has granted authorisation for the Australian Energy Market Operator (AEMO) and electricity industry participants in the National Electricity Market to coordinate the scheduling of repairs, maintenance, renewals, upgrades, new connections, and associated information sharing. This decision comes in recognition of the challenges faced by the National Electricity Market during the ongoing transition to renewable electricity generation.
The coordination will allow AEMO to better manage the scheduling of outages, ensuring a secure supply of electricity over the next two summer periods, which are expected to be challenging. Mick Keogh, Deputy Chair of the ACCC, emphasized the importance of this coordination in maintaining stability in the electricity market during the transition to renewables.
While concerns were raised about the potential reduction in competition and information disparities resulting from this kind of coordination, the ACCC believes that the public benefits of improved outage management outweigh the likely harm to competition. To address these concerns, the ACCC has imposed a series of conditions for the authorisation.
Mr. Keogh explained that transparency and reporting conditions have been put in place to ensure accountability and safeguard against any negative impact on competition. The ACCC will closely monitor the implementation of these conditions.
AEMO, as the independent market and system operator for gas and electricity systems across Australia, has been granted broader coordination arrangements on previous occasions, primarily in response to issues arising from the COVID-19 pandemic. This recent authorisation builds on those arrangements and focuses on managing outages during the transition to renewables.
The ACCC acknowledges that AEMO is considering long-term, regulatory-based solutions to enhance its outage management capabilities during the renewable energy transition. These solutions could further strengthen the electricity market and ensure reliable supply during this crucial phase.
The grant of authorisation comes after the ACCC’s draft determination in October 2023, which initially proposed not granting authorisation. AEMO provided additional information to support its claims of public benefits and adjusted the period for which it sought authorisation, leading to the ACCC’s ultimate decision.
Industry participants and state energy departments submitted their support for the application, highlighting the potential public benefits that would arise from improved coordination and outage management.
The ACCC’s decision to grant authorisation for electricity industry coordination underscores the importance of managing electricity supply during the transition to renewable energy sources. By allowing AEMO and industry participants to work together, a secure supply of electricity can be ensured, overcoming the challenges posed by the renewable energy transition and safeguarding the interests of consumers and businesses.
For more information on the authorisation and related conditions, visit the ACCC website.
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