Aussie competition watchdog to deny coordination between electricity participants
Oct 12 (Reuters) - Australia's competition watchdog said on Thursday it intended to deny authorization for industry participants in the national electricity market to coordinate information sharing, on concerns it would breach the country's competition laws.
The Australian Competition and Consumer Commission (ACCC) is proposing a draft determination against allowing the sharing of information between Australian Energy Market Operator (AEMO) and industry participants, such as schedule of repairs, maintenance, renewals upgrades, and new connections.
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"While there are challenges arising from the transition towards renewable electricity, currently we do not consider that the proposed coordination would significantly increase AEMO's ability to manage the scheduling of outages," Keogh added.
The country's top gas retailers Origin Energy, AGL Energy and EnergyAustralia, owned by Hong Kong's CLP Holdings, are all registered under the AEMO as participants in the national electricity market.
Origin and AGL did not immediately respond to requests for clarification on whether the ACCC's intended intervention was going to result in any impact on operations.
Shares of Origin rose as much as 0.7%, touching their highest level since August 2018, while those in AGL advanced 1.2% by 0421 GMT.
The red light on information sharing among energy competitors presents a double-edged sword for the energy market even though the intervention will enhance the bargaining power of consumers, according to Hebe Chen, an analyst with IG Markets.
"However, the sacrificed efficiency, particularly concerning maintenance and upgrades, will also contribute to the already elevated energy costs for Australian families and businesses," Chen added.
The ACCC, however, said a conditional interim authorization will remain in place for these arrangements with room for a response before a final decision is made.
In 2020, the ACCC has permitted broader coordination arrangements to respond to issues pertaining to the COVID-19 pandemic, and in late 2022 the regulator allowed industry co-ordination to respond to the energy crisis. (Reporting by Roushni Nair in Bengaluru; Editing by Krishna Chandra Eluri)