JEPG 2.0 Joint Electricity Purchasing Group granted ACCC interim Authorisation
Media Release Date: 24 September 2025
The South Australian Chamber of Mines and Energy (SACOME) is pleased to advise that the Australian Competition and Consumer Commission (ACCC) has today released its draft determination and interim authorisation in relation to the proposed Joint Electricity Buying Group (JEPG 2.0).
Background JEPG success
In 2016, in response to volatile electricity market pressures and the increasing cost of electricity in South Australia, SACOME led the establishment of a Joint Electricity Purchasing Group (JEPG) focussed on procuring a longer term, more cost competitive, sustainable and predictable electricity supply agreement for the group.
In June 2018, SACOME concluded negotiation of an 8-year electricity supply agreement on behalf of the purchasing group which physically commenced in June 2019.
For the member companies of the JEPG, this agreement has enabled a long-term predictable cost of electricity, that to date has resulted in overall electricity pricing lower than the average wholesale market over the term, and significantly lower than the volatile retail market members were previously exposed to.
JEPG Version 2.0
With the success of the original JEPG arrangement, SACOME, commenced activities to secure a new electricity supply agreement post June 2027 (JEPG 2.0).
JEPG 2.0 includes all members of the original SACOME JEPG plus other businesses that are also large electricity customers in South Australia.
Collectively, the JEPG members provide a range of products from food and grocery services to local markets, to exporting raw minerals and refined products. Operating in global markets requires the businesses to be globally competitive.
Given the current state of play and ongoing uncertainty of the electricity market in South Australia, and across the National Electricity Market (NEM) more broadly, it is predicted that market volatility and the high cost of electricity will continue for the foreseeable future. As such, engaging the electricity supply market as a consolidated buying group will continue to be an effective strategy to drive a long term, cost competitive outcome.
Given the nature of the JEPG 2.0, authorisation to formally establish the buying group, and engage with the market is required from the ACCC.
ACCC Draft Determination and Interim Authorisation
On 24 September 2025, the ACCC provided their draft determination that:
“The ACCC proposes to grant authorisation to enable the South Australian Chamber of Mines & Energy Inc. (SACOME) and participating members to engage in certain conduct related to forming a joint electricity buying group in which the participating members of the group pool their electricity demand, conduct a joint tender process, and individually enter into an electricity supply agreement with the chosen electricity supplier(s).
The ACCC considers there is likely to be minimal, if any, public detriment associated with the proposed conduct, given that the combined electricity demand of the buying group is expected to be relatively low.
The ACCC considers that the collective nature of the proposed tender processes is likely to result in public benefits in the form of transaction cost savings for both members of the group and potential electricity suppliers.
The ACCC proposes to grant authorisation for 12 years.
The ACCC has also granted interim authorisation to enable SACOME and participating members to commence the joint tender process while the ACCC considers the substantive authorisation application. Interim authorisation does not extend to the participating members making or giving effect to agreements with suppliers.”
Further Information
More information in relation to the ACCC process and full details of the draft determination and interim authorisation can be found on the ACCC website.
Quote from Nicola McFarlane, CEO SACOME
“SACOME strives to support our members and stakeholders in negotiating outcomes that provide energy security and benefit economic growth. Securing the interim approval from the ACCC for JEPG 2.0 is a significant milestone and SACOME, together with the JEPG 2.0 members, is pleased to be able to advance the next stage of the joint purchasing process.”
The South Australian Chamber of Mines and Energy (SACOME) is pleased to advise that the Australian Competition and Consumer Commission (ACCC) has today released its draft determination and interim authorisation in relation to the proposed Joint Electricity Buying Group (JEPG 2.0).
Background JEPG success
In 2016, in response to volatile electricity market pressures and the increasing cost of electricity in South Australia, SACOME led the establishment of a Joint Electricity Purchasing Group (JEPG) focussed on procuring a longer term, more cost competitive, sustainable and predictable electricity supply agreement for the group.
In June 2018, SACOME concluded negotiation of an 8-year electricity supply agreement on behalf of the purchasing group which physically commenced in June 2019.
For the member companies of the JEPG, this agreement has enabled a long-term predictable cost of electricity, that to date has resulted in overall electricity pricing lower than the average wholesale market over the term, and significantly lower than the volatile retail market members were previously exposed to.
JEPG Version 2.0
With the success of the original JEPG arrangement, SACOME, commenced activities to secure a new electricity supply agreement post June 2027 (JEPG 2.0).
JEPG 2.0 includes all members of the original SACOME JEPG plus other businesses that are also large electricity customers in South Australia.
Collectively, the JEPG members provide a range of products from food and grocery services to local markets, to exporting raw minerals and refined products. Operating in global markets requires the businesses to be globally competitive.
Given the current state of play and ongoing uncertainty of the electricity market in South Australia, and across the National Electricity Market (NEM) more broadly, it is predicted that market volatility and the high cost of electricity will continue for the foreseeable future. As such, engaging the electricity supply market as a consolidated buying group will continue to be an effective strategy to drive a long term, cost competitive outcome.
Given the nature of the JEPG 2.0, authorisation to formally establish the buying group, and engage with the market is required from the ACCC.
ACCC Draft Determination and Interim Authorisation
On 24 September 2025, the ACCC provided their draft determination that:
“The ACCC proposes to grant authorisation to enable the South Australian Chamber of Mines & Energy Inc. (SACOME) and participating members to engage in certain conduct related to forming a joint electricity buying group in which the participating members of the group pool their electricity demand, conduct a joint tender process, and individually enter into an electricity supply agreement with the chosen electricity supplier(s).
The ACCC considers there is likely to be minimal, if any, public detriment associated with the proposed conduct, given that the combined electricity demand of the buying group is expected to be relatively low.
The ACCC considers that the collective nature of the proposed tender processes is likely to result in public benefits in the form of transaction cost savings for both members of the group and potential electricity suppliers.
The ACCC proposes to grant authorisation for 12 years.
The ACCC has also granted interim authorisation to enable SACOME and participating members to commence the joint tender process while the ACCC considers the substantive authorisation application. Interim authorisation does not extend to the participating members making or giving effect to agreements with suppliers.”
Further Information
More information in relation to the ACCC process and full details of the draft determination and interim authorisation can be found on the ACCC website.
Quote from Nicola McFarlane, CEO SACOME
“SACOME strives to support our members and stakeholders in negotiating outcomes that provide energy security and benefit economic growth. Securing the interim approval from the ACCC for JEPG 2.0 is a significant milestone and SACOME, together with the JEPG 2.0 members, is pleased to be able to advance the next stage of the joint purchasing process.”