New South Wales Bills Explanatory Notes New South Wales Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
ELECTRICITY AND OTHER LEGISLATION (AMENDMENT)
BILL 1991 (No. 2) *
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The objects of this Bill are:
(a) to amend the Electricity Act 1945 with respect to the following:
(i) the abolition of Electricity Area Boards;
(ii) the application of performance agreements to electricity councils;
(iii) the establishment of subsidiary companies of electricity councils for the
purpose of carrying out joint enterprises;
(iv) the abolition of the Industrial Development Assistance Fund;
(v) prohibiting the sale of certain electrical items that are unsafe;
(vi) the responsibilities of consumers for the safety of their electrical
installations;
(vii) the theft of electricity;
(viii) the rendering of accounts by electricity councils and the payment of
interest on overdue accounts;
(ix) other miscellaneous matters; and
(b) to amend the County Districts Reconstitution Act 1979 with respect to the
areas within which certain employees of county councils may be based; and
(c) to amend the Energy Administration Act 1987 to extend the objects of the
Energy Corporation; and
(d) to amend the Local Government Act 1919 with respect to the rendering of
electricity accounts by county councils, and
(e) to make consequential amendments to the Crimes Act 1900 and the Search
Warrants Act 1985.
* Amended in committee--see table at end of volume.
Clause 2 provides for the commencement of the proposed Act.
Clause 3 is a formal provision that gives effect to the Schedule of amendments to
the Electricity Act 1945.
Clause 4 is a formal provision that gives effect to the Schedule of amendments to
other Acts.
Clause 5 is a transitional provision. It vests the assets and liabilities of the Industrial
Development Assistance Fund in the Electricity Development Fund on the abolition of
the former fund. It also ensures that electricity accounts of electricity councils that could
not be recovered before the amendment to section 419A of the Local Government Act
1919 by Schedule 2 cannot be recovered after that amendment.
SCHEDULE 1--AMENDMENT OF ELECTRICITY ACT 1945
Abolition of Electricity Area Boards
Schedule 1 (2) omits Part 2A so as to abolish Electricity Area Boards and to remove
provisions relating to those Boards from the Principal Act.
Schedule 1 (1) (a) makes a consequential amendment.
Performance agreements
Schedule 1 (3) empowers the Minister administering the Principal Act to require an
electricity council to enter into a performance agreement. Perfomance agreements are to
set operational performance targets for electricity councils in the exercise of specified
functions during a financial year. Perfomance agreements are to be monitored by the
Energy Corporation constituted under the Energy Administration Act 1987. The results
of an electricity council's performance during a financial year are to be included in the
council's annual report for that year.
Special purpose companies
Schedule 1 (5) inserts proposed Part 2C. The proposed Part (comprising don 7W)
will enable two or more electricity councils, with the Minister's approval, to carry on a
common enterprise relating to the performance of their functions by means of a
subsidiary company. Electricity councils may form, or participate in the formation of,
these companies, acquire interests in them and sell or otherwise dispose of those
interests. The companies must conform to the Premier's guidelines relating to subsidiary
companies.
Schedule 1 (7) inserts proposed section 14AAE so as to enable the application of the
electricity supply authorities insurance scheme to special purpose companies.
Exercise by the Energy Corporation of the functions of electricity supply
authorities in order to protect life and prevent injury
Schedule 1 (6) inserts proposed section 10 which will enable the Energy Corporation
to exercise, in its own name, any function of an electricity supply authority if the
Corporation is of the opinion that it is necessary to do so in order to protect the life or
health of any person.
Electricity and Other Legislation (Amendment) 1991 (No. 2 )
Contributions to the State Energy Research and Development Fund
Section 17 of the Principal Act requires an amount equal to 0.125 per cent of the
value of the gross retail sales of electricity of the electricity industry in each financial
year to be paid out of the Electricity Development Fund into th eState Energy Research
and Development fund established under section 35A of the Energy Administration Act
1987. Schedule 1 (8) amends section 17 to provide that the amount to be paid out is to
be such amount as may be determined by the Minister on the recommeendation of the
Energy Corporation not exceeding 0.125 per cent of the value of those gross retail sales
of electricity.
Abolition of Industrial Development Assistance Fund
Schedule 1 (9) omits sections 19 and 19AA so as to abolish the Industrial
Development Assistance Fund. Schedule 1 (1) (b) and (4) make amendments
consequential on the abolition of that Fund. Clause 5 (1) will transfer the assets and
liabilities of that Fund to the Electricity Development Fund.
Sale of certain electrical articles
As part of a uniform Australian process, electrical appliances and accessories are
presently divided into two groups.
The first, or "declared", group of typically domestic products (e.g. kitchen, heating
and wiring products) must hold a certificate of approval before sale to ensure that the
design and construction complies with specific Australian safety standards.
Other products fall into the second, or "non-declared", group and are not required to
have certification before sale, and currently are not subject to any requirement under the
Principal Act that they be safe at the point of sale. This latter group includes videos,
electronic equipment, televisions, computers and non-domestic equipment.
The principal offence at present is to sell a "declared" product without a certificate
of approval.
Schedule 1 (10) inserts proposed section 21DA The proposed section will apply to
electrical articles in the group which have not been declared under section 21. The
proposed section makes it an offence to sell an electrical article that does not comply
with specifications or other requirements determined for the electrical article. The
maximum penalty for the offence is 100 penalty units (currently $10,000).
Accident reporting and investigation
The Department of Mineral Resources has developed and used an electrical accident
record system since 1954. The Department does this centrally on behalf of all electricity
supply authorities and the public, and represents New South Wales in gathering national
safety statistics. Currently the reporting of accidents is voluntary, and often reports are
either not forthcoming or are incomplete.
It is now proposed to reinforce accident prevention measures by rquiring serious
electrical accidents to be reported so as to enable timely, independent and expert
investigation of the cause of an accident.
Proposed section 27D contains definitions for the purposes of the proposed Part. In
particular, "serious electrical accident" is defined to mean an accident, involving
electricity or an electrical item, as a consequence of which a person dies or suffers
serious injury.
Proposed section 27E requires serious electrical accidents to be notified to the Energy
Corporation by the occupier of the place at which the accident occurred or such
other person as is prescribed by the regulations. The maximum penalty for the
offence is 100 penalty units (currently $10,000).
Proposed section 27F enables the Energy Corporation to appoint inspectors for the
purposes of the Part.
Proposed section 27G enables the Energy Corporation to arrange for an inspector to
investigate and report on a serious electrical accident, whether or not notice of the
accident is given to the Corporation.
Proposed section 27H sets out the powers of inspectors. An inspector is not
empowered to enter premises used for residential purposes without the permission
of the occupier or unless the inspector has obtained a search warrant under
proposed section 27I.
Proposed section 27I enables an inspector to obtain a starch warrant to enter
premises on which the inspector has reasonable grounds for believing a serious
electrical accident has occurred Part 3 of the Search Warrants Act 1985 applies to
a search warrant issued under the proposed section.
Proposed section 27J makes it an offence to obstruct or fail to co-operate with an
inspector in the exercise of the inspector's functions or to impersonate an
inspector. The maximum penalty for the offence is 50 penalty units (currently
$5,000). A person is not excused from answering a question of an inspector on the
grounds that the answer may be self-incriminating, but the answer given may not
be used against the person except for an offence of obstructing or failing to
co-operate with an inspector.
Proposed section 27K makes it an offence for a person to disturb the site of a serious
electrical accident before it has been inspected by an inspector, except to make it
safe or with the permission of an inspector The maximum penalty for the offence
is 100 penalty units (currently $10,000).
Proposed section 27L enables the Energy corporation to publish details of electrical
accidents and absolves it and associated persons from any liability arising from
details so published.
Responsibilities of consumers concerning the safety of electrical installations
Schedule 1 (12) inserts proposed section 29. The proposed section imposes an
obligation on a consumer to ensure, to the best of the consumer's ability and knowledge,
that the consumer's electrical installation, while it remains connected to the source of
supply of electricity, is maintained free from defects or circumstances (such as
proximity to the branches of trees) that are likely to cause fire or otherwise make the
electrical installation unsafe. The proposed section also prohibits a consumer from
connecting the consumer's electrical installation to an electricity supply if the
installation has been lawfully disconnected for reasons of safety until the installation has
been made safe. The maximum penalty for a breach of the proposed section is 20
penalty units (currently $2,000).
Electricity and Other Legislation (Amendment) 1991 (No. 2 )
Theft of electricity
Schedule 1 (12) also inserts proposed section 30 relating to the theft of electricity.
Provisions relating to the theft of electricity are currently found in section 154C of
the Crimes Act 1900, Part 23 of the Local Government Act 1919 and Ordinance No. 54
made under the Local Government Act 1919. The substance of those provisions is
consolidated in the proposed section.
Interest on overdue accounts
Currently, electricity councils are not entitled to charge interest on overdue accounts.
Schedule 1 (13) (a) will enable regulations to be made requiring the payment of
interest at a rate to be prescribed.
Powers of electricity councils
Schedule 1 (13) (b) and (e) will enable regulations to be made to retain the powers
currently conferred on electricity councils under Ordinance No. 54 made under the
Local Government Act 1919 in the event that, as a consequence of the review of the
functions of councils under that Act or otherwise, the Ordinance is repealed.
Training of certain persons
Schedule 1 (13) (c) will enable regulations to be made concerning the training and
qualifications of persons who perform work on high voltage electrical equipment.
Regulations--adoption of publications
Schedule 1 (13) (f) will enable regulations under the Principal Act to adopt
publications (such as standards) as in force for the time being rather than as in force at a
particular time.
SCHEDULE 2--AMENDMENT OF OTHER ACTS
Crimes Act 1900 No. 40
The Crimes Act 1900 is amended to omit section 154C as a consequence of the
amendment of the Principal Act by Schedule 1 (12) relating to the theft of electricity.
County Districts Reconstitution Act 1979 No. 185
The County Districts Reconstitution Act 1979 is amended to remove the restriction
that certain employees of county councils whose service was transferred to a council for
a reconstituted district under that Act cannot be required to be based outside their old
areas.
Energy Administration Act 1987 No. 103
The Energy Administration Act 1987 is amended to add as an object of the Energy
Corporation, the promotion of energy conservation and measures to increase the
efficiency of energy supply, transmission and use.
The Local Government Act 1919 is amended to remove the restriction imposed in
section 419A that a council cannot recover an amount which, because of an error of the
council, has not been charged for electricity supplied more than 2 years before the
account for the supply is rendered. Clause 5 (2) prevents the recovery, after the
amendment, of an overdue amount that could not be recovered before the amendment.
Search Warrants Act 1985 No. 37
The Search Warrants Act 1985 is amended as a consequence of the amendment made
to the Principal Act by Schedule 1 (1 1) relating to serious electrical accidents.