The ACCC proposes to authorise LGA Procurement & Ors to undertake a joint tender process to procure retail electricity services in South Australia

The ACCC proposes to grant authorisation to LGA Procurement, on behalf of itself, 64 local government councils and 7 associated local government entities (collectively, the Participating Entities), to pool the Participating Entities' electricity demand, and jointly investigate and evaluate tenders for the supply of retail electricity services (including Accredited Renewable Electricity and Unspecified Electricity) to the Participating Entities.

The ACCC considers the proposed joint tender arrangement is likely to result in public benefits in the form of environmental benefits, transaction cost savings and stimulation of competition to supply electricity to the Participating Entities. The ACCC considers that the proposed arrangement is likely to result in minimal public detriment.

The ACCC proposes to grant authorisation for 15 years. This period reflects a period of time to undertake the joint tender process, an initial 3-7 year period for the term of the electricity supply agreement/s and a 7 year period to enable extension of the term of the agreement/s.

Further information about the ACCC's draft determination is available on the ACCC public register at: LGA Procurement & Ors

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