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Electricity Legislation Amendment
(Wholesale Electricity Market) Bill
1997
Explanatory note
This explanatory note relates to this BiIl as introduced into Parliament.
This Bill is cognate with the National Electricity (New South Wales) Bill
1997.
Clause 2 provides for the commencement of the proposed Act on a day or
days to be appointed by proclamation.
Clause 3 is a formal provision giving effect to the amendments to the
Electricity Supply Act 1995 set out in Schedule 1.
Clause 4 is a formal provision giving effect to the amendments to the
Electricity Transmission Authority Act 1994 set out in Schedule 2.
Schedule 1
Amendment of Electricity Supply Act 1995
Functions of Market and System Operator
It is proposed to amend section 78 of the Act so as to make it clear that the
functions of the Market and System Operator extend to entering into, and
regulating the conduct of participants in, interstate wholesale market
arrangements (Schedule 1 [ 17] and [18]) and to amend section 82 of the Act
so as to make it clear that money received or paid out in connection with such
arrangements is channelled through the Market Settlements Fund
administered by the Market and System Operator (Schedule 1 [19] and [20]).
Wholesale supply arrangements
It is proposed to amend sections 8, 12, 16 and 98 of the Act so as to enable
interstate wholesale market operators to participate in the New South Wales
wholesale market for electricity without having to hold an authorisation
under the Act (Schedule 1 [l], [2], [3] and [21]). Section 8 restricts network
operators in the operation of their transmission or distribution systems,
section 12 restricts wholesale traders in their capacity to enter into wholesale
supply arrangements, section 16 restricts electricity distributors in the
operation of their distribution systems and section 98 renders certain
electricity supply arrangements unenforceable. Definitions used in the
amendments (interstate wholesale market agreement and interstate
wholesale market operator) are proposed to be inserted in the Dictionary to
the Act (Schedule 1 [30]).
Miscellaneous amendments
It is proposed to make the following miscellaneous amendments to the Act:
(a)
the amendment of sections 19 and 39 of the Act, so as to make
compliance with certain requirements concerning the preparation of
customer connection contracts and customer supply contracts a
condition of an electricity distributor's licence and a retail supplier's
licence, respectively (Schedule l [4] and [9]),
Explanatory note page 2
(b)
the amendment of sections 20 and 40 of the Act, so as to convert
references to the Government Pricing Tribunal to references to that
body under its new name of the Independent Pricing and Regulatory
Tribunal (Schedule 1 [5] and [10]),
(c)
the amendment of sections 23 and 43 of the Act, and the substitution
of the definitions of retail supplier and wholesale supplier in the
Dictionary to the Act, so as to clarify the meaning of those expressions
and of the expressions standard form customer supply contract and
negotiated customer supply contract and, in turn the expression
customer supply contract (Schedule 1 [6], [7], [l l], [12], [31] and
[32]),
(d)
the amendment of section 25 of the Act, so as to ensure that customers
requiring an increased capacity from a newly extended distribution
system are required to contribute to the costs of the extension
(Schedule 1 [8]),
(e) the amendment of section 48 of the Act, so as to enable a notice
requiring the owner of premises to trim trees interfering with electricity
works to be sent to the occupier of the premises as an alternative to
being sent to the owner (Schedule 1 [13]),
(f) the amendment of section 60 of the Act, so as to enable compensation
to be paid to the occupier of premises as well as to the owner of
premises for damage arising out of the exercise of statutory powers of
entry in relation to the premises (Schedule 1 [14] and [15]),
(g) the insertion of a new section 63A into the Act, so as to make it clear
that powers of entry existing apart from the Act are not affected by the
powers of entry conferred by the Act (Schedule 1 [16]),
(h) the substitution of section 103 of the Act, and the amendment of
Schedule 2 to the Act, so as to enable the imposition and recovery of
annual authorisation and licence fees (Schedule 1 [22] and [26]),
(i) the amendment of section 106 of the Act, so as to enable regulations to
be made with respect to the preparation of safety plans by network
operators (Schedule 1 [23]),
(j) the amendment of section 106 of the Act, so as to make it clear that a
regulation exempting persons or matters from provisions of the Act
may do so either unconditionally or subject to conditions (Schedule 1
[24]),
Explanatory note page 3
(k)
the amendment of clause 1 of Schedule 2 to the Act, so as to make it
clear that a retail supplier's licence authorises its holder to enter into
arrangements for the supply of electricity to retail customers (Schedule
1 [25]),
(1)
the insertion of a new clause 19 into Schedule 6 to the Act, so as to
restore the effect of some inadvertently repealed provisions that allow
certain energy distributors to exercise water supply functions and
provide for the transfer to other bodies of assets and staff used by them
in the exercise of those functions (Schedule 1 [29]),
(m) other minor statute law revision in relation to savings and transitional
provisions (Schedule 1 [27] and [28]).
Schedule 2
Amendment of Electricity Transmission
Authority Act 1994
Agencies and delegations
It is proposed to amend sections 9 and 11 of the Act, so as to ensure that the
Electricity Transmission Authority (TransGrid):
(a)
can appoint certain bodies as agents, and
(b)
can act as agent for those bodies, and
(c)
can delegate its functions to those bodies.
The bodies concerned include interstate wholesale market operators (referred
to in the proposed amendments to the Electricity Supply Act 1995) and
NECA and NEMMCO (bodies established in connection with the national
electricity market) (Schedule 2 [ l ] and [2]).
Explanatory note page 4