Legal action adjourned against ucg miner linc energy, company co-founder Paul Moore and other co-founders on Tuesday.
The joint action was prompted by a report released by the Australian Competition and Consumer Commission (ACCC) in November claiming that coal-fired generation by coalminers was “consistently harming consumer interests, and therefore breaching Australian law”.
The report detailed a process whereby companies in the energy sector set up by coal mining had been required to apply to the regulator for permission to increase output in their own mines.
In doing so, the companies set a precedent for others to follow, which was in turn used by other coalminers in the industry to extend their own output, increasing costs in return for an increase in profit.
The commission’s submission also detailed the impact this had on the prices consumers paid for consumer energy, including for heating, lighting and cooling.
The agreement, known as the Adjoint Agreement, was negotiated between ASIC and the industry and energy experts including senior managers of the power companies that owned Australia’s power stations.
The agreement was signed at the start of July in a major agreement between regulators in Queensland, Victoria and NSW. Under the agreement, the regulator would be allowed to set its own rules on the distribution of renewable energy generation and the company would not be forced to join or assist a power station.
A spokesman for Mr Morrison said he was satisfied the Adjoint Agreement was in line with consumer policies.
“Under the agreement, the regulator must not, for example, prohibit any power station or its related entities from operating an increase of its own generation, including in the absence of specific requests from an Energy Security Authority,” Mr Morrison said.
“The regulator must also not take action that would be inconsistent with the interests of consumers.”
The Adjoint Agreement has also provided the industry with new guidelines for the electricity supply and distribution of renewable energy.