Re: Application for Merger Authorisation of Macquarie Generation

This submission addresses the Australian Competition Tribunal’s consideration of an application by the energy retailer AGL to acquire Macquarie Generation from the NSW Government. The sale was blocked by the Australian Competition and Consumer Commission (ACCC) due to concerns about the impact the sale would have on competition in the wholesale electricity market. In the submission, PIAC raises concerns about the ability of second-tier energy retailers to purchase electricity at a competitive price should the sale be permitted, as well as the issue of transparency in wholesale electricity markets if further ‘vertical integration’ occurs (through the sale of generation assets to a retailer). On this basis, PIAC shares the view of the ACCC that the proposed sale of Macquarie Generation to AGL is not in the public interest.