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Origin and AGL get ACCC OK to acquire NSW energy businesses

The ACCC would not oppose the acquisition by Origin of the following retail businesses:

  • EnergyAustralia, or
  • Country Energy, or
  • Integral Energy, or
  • Country Energy and Integral Energy, together with one of the Eraring, Delta Coastal or Delta Western gentrader bundles and one of the generator development sites.

The ACCC also announced that it would not oppose the acquisitions by AGL of:

  • Country Energy, or
  • Integral Energy, together with one of the Eraring, Delta Coastal or Delta Western Gentrader bundles and one or more of the generator development sites.

After extensive inquiries, the ACCC concluded that these potential acquisitions were unlikely to result in a substantial lessening of competition in any of the relevant markets.

The ACCC also concluded that the acquisition of one or more development sites is unlikely to provide Origin or AGL with a material advantage in the development of new generation capacity relative to other generation project developers.

Finally, the ACCC concluded that the vertical integration of generators and retailers arising from the potential acquisitions would not be likely to change incentives for generator bidding or retailer conduct in New South Wales, nor raise barriers to entry in these markets.

EnergyAustralia has received development approval from the New South Wales Government for the proposed 350 MW Marulan Gas Turbine, a peaking plant to be built in open cycle configuration.

The New South Wales Government is in the process of partially privatising the State’s energy sector.

The State Government will maintain public ownership of existing power stations and electricity transmission and distribution networks, while electricity trading rights and state-owned power station development sites will be privatised. Bids for these trading rights were due by 15 November 2010.

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