ACCC clears potential acquisitions under NSW Energy Privatis

The ACCC concluded that new entry, together with continued vigorous competition from existing players, would be likely to preserve competitive tension in the retail markets.

The ACCC found that the aggregation of Origin's Uranquity generator with one of the Gentrader bundles would not be likely to provide it with the ability to exercise market power in the wholesale electricity market in New South Wales due to the presence of several competing generators in the market.

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 developer. Moreover, the aggregation of these with the Gentrader contracts is unlikely to provide the acquirers with increased ability to exercise market power, given the presence of other competitors in the market including other acquirers of generation development sites.

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.

A Public Competition Assessment outlining the ACCC's reasons for its decision will be available on the ACCC's website, www.accc.gov.au, in due course.

About AGL

AGL is one of Australia's leading integrated energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.