When Two Become One: Why the ACCC Is Concerned About WA’s Waste-to-Energy Market

Published: 17 July 2025

By Bane Legal Services — Australia’s Trusted Legal Matchmaker for Franchisors, SMEs and Commercial Operators

The Australian Competition and Consumer Commission (ACCC) has flagged serious competition concerns about a proposed acquisition that could reshape Western Australia's waste management industry.

According to a Statement of Issues released by the ACCC on 17 July 2025, global infrastructure company Acciona has proposed acquiring the East Rockingham Waste to Energy Project—a facility currently under administration and receivership.

While this may sound like business-as-usual in the mergers and acquisitions world, here’s why the deal is ringing alarm bells.

What’s the deal?

Acciona already owns and operates a similar waste-to-energy facility in Kwinana, south of Perth. It also happens to:

• Hold a 10% stake in the East Rockingham project,

• Be a creditor under a loan agreement, and

• Act as the engineering, procurement and construction contractor for East Rockingham.

Both the Kwinana and East Rockingham plants are designed to process residual putrescible waste—essentially organic waste that can’t be reused or recycled—into energy. Once operational, these two will be the only waste-to-energy facilities in WA for the foreseeable future.

Why the ACCC is worried

According to ACCC Commissioner Dr Philip Williams, the acquisition would remove competition between the only two providers of waste-to-energy services in Perth and the broader Peel region.

“Our preliminary view is that the proposed acquisition is likely to substantially lessen competition in the supply of putrescible waste disposal services,” said Dr Williams.

Market feedback suggests these two facilities are each other’s closest rivals—with near-identical services, capacity and geography. The ACCC is concerned that if Acciona owns both facilities, it could increase prices or reduce service quality with little fear of losing business.

The watchdog is also analysing whether:

• Capacity constraints or contractual obligations might prevent Acciona from exercising market power, and

• Other disposal options, such as landfills, could keep prices in check.

But here’s the kicker: the ACCC notes it’s highly unlikely that any new waste-to-energy facility will be developed in WA in the next decade, due to high capital costs and regulatory barriers.

Why this matters to business owners and councils

For local governments and commercial & industrial (C&I) businesses that rely on waste disposal services, a reduction in competition could lead to:

• Higher operational costs,

• Less choice, and

• Decreased service standards.

In heavily regulated industries like waste management, mergers and acquisitions aren’t just financial transactions—they can shape the entire competitive landscape for years to come.

Legal Insight: What businesses should watch for

At Bane Legal Services, we see cases like this as reminders of how competition law intersects with everyday business operations—especially in sectors with limited players or high infrastructure costs.

If you're:

• Involved in a proposed acquisition or supplier agreement,

• Worried about market dominance or anti-competitive conduct, or

• A council or business with waste disposal contracts in Western Australia,

…it may be time to speak to a commercial lawyer with deep expertise in the Competition and Consumer Act 2010 (Cth).

We’re not a law firm — but we know the right ones

Bane Legal Services is not a law firm and does not provide legal advice, but with over 30 years’ experience in business and franchising, we know how to match you with the right legal expert for your needs.

Whether you're navigating ACCC scrutiny, negotiating with major contractors, or reviewing competition risks in your industry, we can help you find a commercial lawyer who speaks your language and understands your business.

Need to talk to a lawyer about merger control or anti-competitive behaviour?Let Bane Legal Services connect you with the right expert.

Get in touch today — because when the stakes are high, the right legal advice is everything.

This blog is based on information sourced from the ACCC's official media release dated 17 July 2025. Read the full release here.