Big market shares put ACCC in frame

Australian Financial Review
Tuesday 11/12/2007 Page: 12

Australian Competition and Consumer Commission chairman, Graeme Samuel, received a telephone call yesterday from NSW Treasurer, Michael Costa, who stressed the importance of competition issues ahead of the NSW Government's electricity privatisation plans. In the Premier State, three state-owned companies are responsible for around 33 percent of the power generated for the Australian electricity market, the largest of which is Macquarie Generation, who produces 40 percent of NSW's electricity needs and close to 15 percent of that required in the east of the country.

If a trade sale of the retail divisions of EnergyAustralia, Integral Energy and Country Energy is to eventuate, the most probable bidders will be AGL Energy, Origin Energy and TRUEnergy. Meanwhile, in the wake of the ACCC's unsuccessful legal bid to veto AGL's purchase of a minority interest in the Loy Yang power station, the question now exists as to whether or not the competition regulator will be willing to follow up the matter of existing stakeholders trying to get onto the share register of a floated vehicle.