The competition watchdog has proposed that the Retail Energy Market Company continue operating the market rules in Western Australia and South Australia.
Retail Energy Market Company (REMCo) is a not-for-project organisation established five years ago to support the setting up and running of fully contestable retail gas markets in WA and SA.
The announcement is below:
The Australian Competition and Consumer Commission proposes to allow Retail Energy Market Company (REMCo) to continue to operate the Retail Market Rules in South Australia and Western Australia.
REMCo publishes the rules which govern the conduct and operations of the SA and WA retail gas markets. It has been effectively operating the Retail Market Rules for the past five years.
"The ACCC considers that significant public benefits are likely to result from the proposed arrangements including full retail contestability and efficiency in the retail gas markets," ACCC Chairman, Graeme Samuel, said.
Authorisation provides protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
REMCo's application for authorisation relates to two chapters of the Retail Market Rules - Chapter 5 (which sets out rules for dealing with imbalances in the gas network) and Chapter 6 (which sets out procedures for ensuring compliance with the rules).
The ACCC proposes to grant authorisation for a further 10 years.
The ACCC's draft determination will be available from the ACCC website, via the Public registers and Authorisations and notifications registers links.
The ACCC invites submissions from interested parties in relation to the draft determination before making its final decision. Parties wishing to make submissions should do so by July 29 2009. Please refer to the website for further information about making a submission to the ACCC.
