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Amendment (TransGrid
Corporatisation) Bill 1998
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
* Amended in committee-see table at end of volume.
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
Energy Services Corporations Act 1995 set out in Schedule 1.
Clause 4 is a formal provision giving effect to the amendments to other Acts
and regulations set out in Schedule 2.
Clause 5 repeals the Electricity Transmission Authority Act 1994 and the
regulations made under that Act.
Schedule 1 Amendment of Energy Services Corporations
Act 1995
Schedule 1 [4] inserts new Part 2A into the Principal Act relating to energy
transmission operators. The new Part establishes TransGrid as a statutory
State owned corporation and amends the State Owned Corporations Act 1989
accordingly. The new Part also sets out the objectives and functions of
TransGrid (and any other future energy transmission operators). Those
objectives and functions are similar to other energy services corporations
except that the principal objectives and functions of TransGrid relate to the
provision of facilities for the transmission of electricity and other forms of
energy.
Schedule 1 [1][3] and [5][11] make consequential amendments. In
particular, the amendments apply the special provisions of the Principal Act
relating to the other energy services corporations (that is, electricity
generators and energy distributors) to TransGrid, including special provisions
relating to:
(a) restrictions on the sale of shares and on the appointment of
shareholding Ministers (section 11 of the Principal Act), and
(b) the appointment and removal of the board of directors (clause 1 of
Schedule 2 to the Principal Act), and
(c) the appointment and other provisions relating to the chief executive
officer (clause 2 of Schedule 2 to the Principal Act), and
( d ) the payment of dividends (clause 4 of Schedule 2 to the Principal Act).
Schedule 1 [12] inserts provisions consequent on the enactment of the
proposed Act, including:
( a ) the dissolution of the Electricity Transmission Authority. and
(b) the transfer, by Ministerial order, of the assets, rights and liabilities of
the Authority to TransGrid. and
Explanatory note page 2
(c)
the appointment of the existing part-time directors of the Board as
part-time directors of the Board of TransGrid for a period of 1 year,
and
(d)
the automatic transfer of all staff of the Authority (including the chief
executive officer) to the service of TransGrid on existing terms and
conditions of employment, and
(e) provisions relating to the management of the State electricity market
should the proposed Act commence before the commencement of the
national electricity market.
Schedule 1 [13] authorises the finalisation of arrangements relating to asset
transfers arising from the establishment of TransGrid and the other energy
services corporations.
Schedule 2
Amendment of other Acts and regulations
The Schedule amends the following Acts and regulations consequentially:
Electricity (Pacific Power) Act 1950
Electricity Safety Act 1945
Electricity Supply Act 1995
First State Superannuation Act 1992
Government and Related Employees Appeal Tribunal Act 1980
Independent Pricing and Regulatory Tribunal Act 1992
National Electricity (New South Wales) Act 1997
Occupational Health and Safety Amendment Act 1997
Public Authorities (Financial Arrangements) Act 1987
Public Authorities (Financial Arrangements) Regulation 1995
Public Finance and Audit Act 1983
Public Sector Executives Superannuation Act 1989
Public Sector Management Act 1988
Rural Fires Regulation 1997
Snowy Hydro Corporatisation Act 1997
State Authorities Non-contributory Superannuation Act 1987
State Authorities Superannuation Act 1987
Superannuation Act 1916
Superannuation Administration (Electricity
Superannuation Scheme
Transitional Provisions) Regulation 1997
Explanatory note page 3