A group of South Australia's biggest electricity users will be able to buy power in bulk to cut costs and ensure stability of supply after being granted final approval from the Australian Competition and Consumer Commission.
The group, headed by the South Australian Chamber of Mines and Energy and including Oz Minerals, Arrium, Nyrstar and Thomas Foods, represents about 16 per cent of SA's total electricity consumption.
The ACCC agreed to their plan in a draft ruling in April and on Wednesday issued a final approval for the bulk purchase of power for the next 11 years.
Chairman Rod Sims says 27 companies are now involved in the buying group, accounting for a total load of about 269 megawatts of electricity.
"This joint tender has the potential to change wholesale market dynamics by allowing generators to use existing plants more efficiently, or encouraging new entrants into South Australian electricity generation," Mr Sims said in a statement.
"This could bring the benefits of increased competition in the wholesale market for electricity."
Earlier this week SACOME called for expressions of interest from electricity suppliers.
The chamber previously described its proposal as both sensible and workable and said it offered an opportunity to take cost pressures off some of SA's most important businesses.
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