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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
The following Bills are cognate with this Bill:
Energy Services Corporations Bill 1995
Sustainable Energy Development Bill 1995.
(a)
to establish a competitive wholesale and retail market in electricity so
as to promote efficient and environmentally responsible production
and use of electricity and to deliver a safe and reliable supply of
electricity, and
(b) to regulate network operations and wholesale trading i n the wholesale
market for electricity in anticipation of the introduction of a national
electricity market, and
* Amended in committee--see table at end of volume.
(c)
to regulate network operations and electricity supply in the retail
market in a manner that ensures open access to electricity distribution
systems, promotes customer choice and creates customer rights in
relation to electricity connections and electricity supply.
The Bill also amends various other Acts and instruments and contains
provisions of a savings and transitional nature.
Preliminary
This Part contains provisions for the name of the proposed Act, the
commencement of the proposed Act, the objects of the proposed Act, the
definition of words and expressions used in the proposed Act and the status
of the Crown (clauses 1-5).
Part 2
Network operations and wholesale trading in the
wholesale market
This Part deals with the wholesale market for electricity, regulating network
operations (that is, the operation of transmission and distribution systems
that convey electricity from where it is generated to where it is used) and
wholesale trading (that is, the buying and selling of electricity in bulk). The
provisions of the proposed Act anticipate a national regime to which it is
intended that the State will eventually become a party. The principal
characteristics of the regime involve the separation of network operations
from wholesale trading, so as to promote competition, and the involvement
of a Market and System Operator to co-ordinate both network operations and
wholesale trading, so as to promote a safe and reliable electricity supply
system.
Division 1
Network operations
This Division prohibits the operation of a transmission or distribution system
for wholesale trading by persons who do not hold appropriate authorisations
(clause 6), provides for the granting of network operators' authorisations
(clause 7 and Schedule 1) and imposes conditions on such authorisations in
relation to the persons for whom electricity may be conveyed (clause 8) and
compliance with the Market and System Operator's rules, procedures and
conditions of wholesale market operation (clause 9).
Explanatory note page 2
Division 2
Wholesale trading
This Division provides for the granting of wholesale traders' authorisations
(clause 10 and Schedule 1) and imposes conditions on such authorisations
in relation to the prohibition of discriminatory policies in connection with
the supply of electricity (clause 11) and compliance with the Market and
System Operator's rules, procedures and conditions of wholesale market
operation (clause 12).
Part 3
Network operations in the retail market
This Part regulates network operations (that is, the operation of transmission
and distribution systems that convey electricity from where it is generated to
where it is used) in the retail market for electricity. As with the wholesale
market, these operations are to be kept separate from electricity supply
operations, so as to promote competition.
Division 1
Network operations
This Division prohibits the operation of a transmission or distribution system
for retail supply by persons who do not hold appropriate licences (clause
13), provides for the granting of network operators' licences (clause 14 and
Schedule 2) and imposes conditions on such licences in relation to rights to
connection (clause 15), the persons for whom electricity may be conveyed
(clause 16), the holding of retail suppliers' licences by electricity distributors
(clause 17) and the requirement for customer connection contracts (clause
18).
Division 2
Standard form customer connection contracts
This Division establishes the procedure for preparing standard form
customer connection contracts (clause 19), provides for the matters for
which such contracts must provide (clause 20), specifies the effect of such
contracts (clause 21) and provides for their amendment (clause 22).
Division 3
Negotiated customer connection contracts
This Division provides for negotiated customer connection contracts for
customers who opt out of the standard form of contract (clause 23).
Explanatory note page 3
Division 4
Requirements relating to customer connection
services
This Division gives electricity distributors the power to impose requirements
on customers in relation to the provision of customer connection services. In
particular, it enables an electricity distributor to refuse to provide such
services if those requirements are not complied with (clause 24). The
requirements may relate to contributions towards the augmentation of the
electricity distributor's distribution system (clause 25), the provision of
service lines (clause 26), service equipment (clause 27), transformers (clause
28) and electricity meters (clause 29), the installation and use of apparatus
(clause 30), customer choice in the provision of goods and services
(clause 31) and the sealing of electrical installations (clause 32).
Part 4
Electricity supply in the retail market
This Part regulates the supply of electricity in the retail market for
electricity. As with the wholesale market, operations relating to retail supply
are to be kept separate from network operations, so as to promote
competition.
Division 1
Electricity supply
This Division provides for the granting of retail suppliers' licences (clause
33 and Schedule 2) and imposes conditions on such licences in relation to
rights to supply (clause 34), the prohibition of discriminatory policies in
connection with the supply of electricity (clause 3 3 , the supply of electricity
to franchise customers (clause 36), the supply of electricity to non-franchise
customers (clause 37) and the requirement for customer supply contracts
(clause 3 8).
Division 2
Standard form customer supply contracts
This Division establishes the procedure for preparing standard form
customer supply contracts (clause 39), provides for the matters for which
such contracts must provide (clause 40), specifies the effect of such contracts
(clause 4 1) and provides for their amendment (clause 42).
Division 3
Negotiated customer supply contracts
This Division provides for negotiated customer supply contracts for
non-franchise customers and for franchise customers who opt out of the
standard form of contract (clause 43).
Explanatory note page 4
Part 5
Powers and duties of network operators
generally
This Part deals with the powers and duties of network operators in
connection with the installation, operation and maintenance of their
transmission and distribution systems.
Division 1
Acquisition of land
This Division empowers a network operator to acquire land in accordance
with the Land Acquisition (Just Terms Compensation) Act 1991 (clause 44).
Division 2
Powers and duties relating to electricity works
This Division empowers network operators to carry out certain works in
connection with their transmission and distribution systems (clause 45),
requires them to make good any damage they cause in so doing (clause 46),
empowers them to move conduits (clause 47), trim and remove trees (clause
48) and remove obstructions (clause 49), exempts them from payments of
charges in relation to electricity works situated in public roads or public
reserves (clause 50), ensures that they retain ownership over their electricity
works, wherever situated (clause 51), allows them to interrupt the supply of
electricity for maintenance purposes (clause 52) and exempts them from
liability for failures in electricity supply due to mechanical breakdowns or
uncontrollable causes (clause 53).
Division 3
Powers of entry
This Division sets out the powers and duties of network operators in relation
to entry to private land. The Division confers a power of entry in certain
circumstances (clause 54), requires notice to be given (clause 53, allows the
use of force in specified situations (clause 56), requires the use of force or
urgent entry to be reported (clause 57), requires care to be taken (clause 58),
provides for the recovery of the costs of entry in certain circumstances
(clause 59), provides for the payment of compensation (clause 60), requires
possession of an appropriate certificate of authority (clause 61), regulates
entry onto residential premises (clause 62) and provides for warrants of entry
(clause 63).
Explanatory note page 5
Part 6
Offences
Division 1
General offences
This Division creates offences with respect to theft of electricity (clause 64),
interference with electricity works (clause 65)' interference with electricity
meters (clause 66)' interference with electricity distributors' seals (clause
67), unauthorised connections (clause 68), unauthorised increase in capacity
of connections (clause 69), unauthorised alterations and additions to
electrical installations (clause 70) and obstruction of authorised officers
(clause 7 1).
Division 2
Restrictions on resupply of electricity
This Division prohibits the reselling of electricity, with an exception for
landlords who merely pass on electricity charges to their tenants (clause 72).
Division 3
Supplementary orders
This Division empowers a Local Court to order disconnection and
discontinuance of electricity supply (clause 73), to order payment for
electricity unlawfully charged for (clause 74) and to order payment for stolen
electricity (clause 75) and provides that any such order may be enforced as a
civil debt (clause 76).
Part 7
Administration
Division 1
The Market and System Operator
This Division provides for the appointment of 'a Market and System
Operator to co-ordinate the wholesale market for electricity (clause 77).
Initially, TransGrid will be the Market and System Operator. The Division
also sets out the principal functions of the Market and System Operator
(clause 78), empowers the Market and System Operator to impose fees
(clause 79) and establishes a System Control Fund (clause 80), a Market
Operations Fund (clause 81) and a Market Settlements Fund (clause 82).
Division 2
Distribution districts
This Division establishes distribution districts for certain electricity
distributors (clause 83 and Schedule 3), provides for their variation (clause
84) and provides for the transfer of staff, assets, rights and liabilities as a
consequence of any such variation (clause 85 and Schedule 4).
Explanatory note page 6
Division 3
Customer consultative groups
This Division provides for the appointment of customer consultative groups
for electricity distributors (clause 86), provides for their constitution and
procedure (clause 87) and sets out their functions, which are to be to provide
advice and information to their parent electricity distributor in connection
with customer connection services and electricity supply (clause 88).
Division 4
General
This Division enables the Minister to declare certain persons to be
non-franchise customers (clause 89), and certain electricity works to be
transmission systems (clause 90), by means of orders published in the
Gazette, and empowers network operators to appoint authorised officers for
the purpose of exercising various functions (including powers of entry)
under the proposed Act (clause 91).
Part 8
Appeals and resolution of disputes
This Part confers a right of appeal in relation to decisions under Schedules 1
and 2 in relation to authorisations and licences (clause 92), confers a right of
appeal on customers against certain decisions of electricity distributors and
retail suppliers (clause 93) and provides a mechanism for resolving disputes
between public authorities (clause 94).
Part 9
Miscellaneous
This Part contains the following provisions:
(a)
a provision making unauthorised electricity supply arrangements
unenforceable (clause 9 3 ,
(b)
a provision to the effect that customer connection contracts and
customer supply contracts may form one document (clause 96),
(c)
a provision authorising the delegation of the Minister's functions
under the proposed Act (clause 97),
(d) a provision making directors and managers liable for offences
committed by corporations (clause 98),
(e)
a provision with respect to proceedings for offences (clause 99),
(f)
a provision with respect to the recovery of monetary penalties
imposed under Schedule 1 or 2 (clause 100),
(g)
a provision with respect to the recovery of charges by network
operators and wholesale or retail suppliers (clause 101),
Explanatory note page 7
(h)
a provision with respect to the application of the proposed Act outside
local government areas (clause 102),
(i)
a provision authorising the making of regulations (clause 103),
(j)
a provision repealing certain Acts and instruments (clause 104),
(k)
a provision giving effect to Schedule 5, which contains amendments
to various Acts and instruments (clause 105),
(1)
a provision giving effect to Schedule 6, which contains savings and
transitional provisions (clause 106),
(m) a provision requiring the proposed Act to be reviewed at the end of
5 years (clause 107).
Schedules
Schedule 1 provides for the granting of authorisations, the imposition of
conditions on authorisations, the variation of those conditions and the
cancelling of authorisations. The Schedule also enables a civil penalty of up
to $100,000 to be imposed on the holder of an authorisation in relation to
any contravention of the proposed Act or the regulations or the conditions of
the authorisation.
Schedule 2 provides for the granting of licences, the imposition of
conditions on licences, the variation of those conditions and the cancelling
of licences. The Schedule also enables a civil penalty of up to $100,000 to
be imposed on the holder of a licence in relation to any contravention of the
proposed Act or the regulations or the conditions of the licence.
Schedule 3 describes the distribution districts of various electricity
distributors.
Schedule 4 provides for the transfer of staff, assets, rights and liabilities
consequent on the variation of the boundaries of an electricity distributor's
distribution district.
Schedule 5 amends the following Acts and instruments:
Electricity Act 1945 (I 946 No 13)
Electricity (Pacific Power) Act 1950 No 22
Electricity Transmission Authority Act 1994 No 64
Energy Administration Act 1987 No 103
Fish River Water Supply Administration Act 1945 No 16
Explanatory note page 8
Land Tax Management Act 1956 No 26
Local Government Act 1919 No 41
Local Government Act I993 No 30
Roads (General) Regulation I994
Search Warrants Act 1985 No 37
South-west Tablelands Water Supply Administration Act 1941 No 36
Traffic Act 1909 No 5.
Schedule 6 contains provisions of a savings or transitional nature
consequent on the enactment of the proposed Act.
Dictionary defines various words and expressions used in the proposed Act.
Explanatory note page 9