30ABMeaning of effective competition

30AB Meaning of effective competition

30AB Meaning of effective competition

For the purposes of this Division, the AER must, in assessing whether there is effective competition within a wholesale gas market, have regard to—

(a) whether—

(i) there are active competitors in the market and whether those competitors hold a reasonably sustainable position in the market; or

(ii) there is merely the threat of competition in the market; and

(b) whether prices are determined on a long term basis by underlying costs rather than the existence of market power, even though a wholesale gas market participant may hold a substantial degree of market power from time to time; and

(c) whether barriers to entry into the market are sufficiently low so that a substantial degree of market power may only be held by a wholesale gas market participant on a temporary basis; and

(d) whether there is independent rivalry in all dimensions of the price, product or service offered in the market; and

(e) other matters the AER considers relevant.

s 30AB: Ins 2024 No 12, sec 15.