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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
to reconstitute the governing bodies of the Electricity Commission, the
Electricity Transmission Authority, Sydney Electricity and other
electricity distributors, and
to reconstitute the Electricity Commission as a new statutory authority
under the name of Pacific Power (the business name under which it
currently trades), and
to require Pacific Power, the Electricity Transmission Authority,
Sydney Electricity and other electricity distributors to comply with
Ministerial directions regarding the restructuring of the electricity
industry, and
* Amended in committee--see table at end of volume.
(d)
to enable the Electricity Transmission Authority to develop a
wholesale market for electricity, and
(e) to facilitate the amalgamation of electricity distributors, and
(f)
to enact other provisions of a minor, consequential or ancillary nature.
Clause 2 provides that the proposed Act will commence on a day or days
to be proclaimed.
Clause 3 gives effect to the Schedule of amendments to the Electricity
Commission Act 1950.
Clause 4 gives effect to the Schedule of amendments to the Electricity
Transmission Authority Act 1994.
Clause 5 gives effect to the Schedule of amendments to the Sydney
Electricity Act 1990.
Clause 6 gives effect to the Schedule of amendments to the Electricity Act
1945.
Clause 7 gives effect to the Schedule of amendments to other Acts.
Clause 8 repeals regulations under the Electricity Commission Act 1950
and the Sydney Electricity Act 1990 as a consequence of amendments made
to those Acts by the proposed Act.
Schedule 1
Amendment of Electricity Commission
Act 1950
Reconstitution of the Electricity Commission
The Electricity Commission is currently constituted by 68 commissioners
appointed by the Governor. It is proposed to reconstitute the Commission as
a statutory body representing the Crown under the name of Pacific Power,
the business name under which it currently trades (Schedule l (4),
proposed section 5).
Explanatory note page 2
Establishment of Board of directors
Pacific Power is to have a Board of 57 directors, including the Chief
Executive, 35 part-time directors appointed by the Governor on the
recommendation of the Minister and one part-time director chosen by a
selection committee from a panel of Labor Council nominees (Schedule 1
(4), proposed section 5A). The Board will determine the policies and
strategies for Pacific Power (Schedule 1 (4), proposed section 5B).
There are further provisions governing the constitution and procedure of the
Board (Schedule 1 (13), proposed Schedule 6). In particular, the directors
(aside from the Chief Executive) will be appointed for a term of 1 year at a
time.
Appointment of Chief Executive
Pacific Power will have a Chief Executive (Schedule 1 (4), proposed
section 5C), to be appointed under Part 2A of the Public Sector
Management Act 1988, and provision for an acting Chief Executive
(Schedule 1 (4), proposed section 5D). The Chief Executive will have the
management and control of the affairs of Pacific Power (Schedule 1 (4),
proposed section 5E).
Delegation
Pacific Power will be competent to delegate its functions (Schedule 1 (4),
proposed section 5F).
Ministerial control
Pacific Power is to be subject to Ministerial direction (Schedule 1 (6),
proposed section 7). In particular, the Board and the Chief Executive will
be required to implement Ministerial directions concerning the structural
reform of the electricity industry.
Savings and transitional provisions
There are savings and transitional provisions (Schedule 1 (13), proposed
Schedule 7) that provide, among other things, for the continuation in office
of the current Chairperson and establish the termination rights of those
persons who will lose office under the reconstitution.
Explanatory note page 3
Other amendments
The remaining amendments made by Schedule 1 are consequential to the
amendments referred to above.
Schedule 2
Amendment of Electricity Transmission
Act 1994
Reconstitution of the Board of directors
The Board of the Electricity Transmission Authority currently comprises
7 directors. It is proposed to replace this board with a Board of 57
directors, including the Chief Executive, 35 part-time directors appointed
by the Governor on the recommendation of the Minister and one part-time
director chosen by a selection committee from a panel of Labor Council
nominees (Schedule 2 (6), proposed section 16 (2)).
There are further provisions governing the constitution and procedure of the
Board (Schedule 2 (13), proposed Schedule 1 ) . In particular, the directors
(aside from the Chief Executive) will be appointed for a term of 1 year at a
time.
Ministerial control
The Authority is currently subject to Ministerial direction. It is proposed to
insert an additional provision to require the Board and the Chief Executive
to implement Ministerial directions concerning the structural reform of the
electricity industry (Schedule 2 (3), proposed section 5 (2A)).
Development of a wholesale market for electricity
It is proposed to enable the Authority to develop, implement, operate and
administer a wholesale market for electricity (Schedule 2 (5), proposed
section 6 (e1)). This will involve the establishment of a Market Operations
Fund (Schedule 2 (11), proposed section 34A) and a Market Settlements
Fund (Schedule 2 (11), proposed section 34B).
Savings and transitional provisions
There are savings and transitional provisions (Schedule 2 (16), proposed
Schedule 2A) that provide, among other things, for the continuation in
office of the current Chairperson and establish the termination rights of those
persons who will lose office under the reconstitution.
Explanatory note page 4
Other amendments
The remaining amendments made by Schedule 2 are consequential to the
amendments referred to above.
Schedule 3
Amendment of Sydney Electricity Act 1990
Reconstitution of the Board of directors
Sydney Electricity is currently governed by a board of 10 directors. It is
proposed to replace this board with a Board of 57 directors, including the
Chief Executive, 35 part-time directors appointed by the Governor on the
recommendation of the Minister and one part-time director chosen by a
selection committee from a panel of Labor Council nominees (Schedule 3
(3), proposed section 8). The Board will determine the policies and
strategies for Sydney Electricity (Schedule 3 (3), proposed section 9).
There are further provisions governing the constitution and procedure of the
Board (Schedule 3 (14), proposed Schedule 2). In particular, the directors
(aside from the Chief Executive) will be appointed for a term of 1 year at a
time.
Ministerial control
Sydney Electricity is currently subject to Ministerial direction. It is proposed
to insert an additional provision to require the Board and the Chief
Executive to implement Ministerial directions concerning the structural
reform of the electricity industry (Schedule 3 (4), proposed
section 10 (2A)).
Alteration of electricity district
The area within which Sydney Electricity operates is described in
Schedule 1 to the Act. It is proposed to enable that area to be varied by
means of a proclamation made by the Governor (Schedule 3 (13), proposed
section 53A (1)). It is proposed also to enable the Minister to direct the
transfer of staff, assets, rights and liabilities to some other person or body
(typically, an electricity distributor) consequent on the making of such a
proclamation (Schedule 3 (13), proposed section 53A (2)(5)). This will
facilitate the amalgamation of parts of Sydney Electricity with adjacent
electricity distributors.
Explanatory note page 5
Savings and transitional provisions
There are savings and transitional provisions (Schedule 3 (18), proposed
Part 3 of Schedule 5) that provide, among other things, for the termination
rights of those persons who will lose office under the reconstitution of the
old Board and for the appointment of an administrator to exercise the
functions of the new Board pending the appointment of its first members.
Other amendments
The remaining amendments made by Schedule 3 are consequential to the
amendments referred to above.
Schedule 4
Amendment of Electricity Act 1945
Reconstitution of the boards of directors
Electricity distributors are currently governed by boards of up to 16
directors. It is proposed to replace these boards with boards of 57 directors,
including the general manager or chief executive officer, as the case requires,
35 part-time directors appointed by the Governor on the recommendation
of the Minister and one part-time director chosen by a selection committee
from a panel of Labor Council nominees (Schedule 4 (12), proposed
section 6M). A board will determine the policies and strategies for the
electricity distributor for which it is appointed (Schedule 4 (12), proposed
section 6N). It will be possible for several electricity distributors to be
governed by a single board of directors. This will facilitate future
amalgamations of electricity distributors.
There are further provisions governing the constitution and procedure of the
boards of directors (Schedule 4 (21), proposed Schedule 8). In particular,
the directors (aside from the general manager or chief executive officer) will
be appointed for a term of 1 year at a time.
Ministerial control
Electricity distributors are currently subject to Ministerial direction. It is
proposed to insert an additional provision to require the board of directors
and the general manager and chief executive officer to implement Ministerial
directions concerning the structural reform of the electricity industry
(Schedule 4 (9), proposed section 6 1 (2A)).
Explanatory note page 6
Transfers of staff and assets
The Act currently provides for the creation, dissolution and variation of the
areas of operations of electricity distributors. It is proposed to provide that
this be done by means of a proclamation made by the Governor rather than,
as is currently the case, by means of regulations (Schedule 4 (5), proposed
section 6A ( l ) ) . It is proposed also to standardise the provisions regarding
the transfer of staff, assets, rights and liabilities in cases where electricity
distributors are dissolved or have their areas of operations reduced in size
(Schedule 4 (6), proposed section 6A (2)(5)) and to apply those
provisions to Tenterfield Council, which currently exercises electricity
supply functions (Schedule 4 (7), proposed section 6B (5)(7)).
Appointment of chief executive officers
The Minister will be empowered to appoint a chief executive officer under
Part 2A of the Public Sector Management Act 1988 (Schedule 4 (13),
proposed section 6OA) for one or more electricity distributors. There will
also be provision for the appointment of an acting chief executive officer
(Schedule 4 (13), proposed section 6OB). The chief executive officer will
have the management and control of the affairs of each of the electricity
distributors in connection with which he or she is appointed, to the exclusion
of the general manager of any such electricity distributor (Schedule 4 (13),
proposed section 6OC).
Savings and transitional provisions
There are savings and transitional provisions (Schedule 4 (23), proposed
Part 5 of Schedule 11) that provide, among other things, for the termination
rights of those persons who will lose office under the reconstitution of the
old boards and for the appointment of an administrator to exercise the
functions of a new board pending the appointment of its first members. It
will be possible for the same person to be appointed administrator of more
than one electricity distributor. This will facilitate future amalgamations of
electricity distributors.
Other amendments
The remaining amendments made by Schedule 4 are consequential to the
amendments referred to above.
Schedule 5
Amendment of other Acts
This Schedule amends various Acts as a consequence of the amendments
made by Schedules 1, 2, 3 and 4. The bulk of the amendments follow from
the renaming of the Electricity Commission as Pacific Power.
Explanatory note page 7