ELECTRICITY AMENDMENT BILL 2004

Queensland Bills

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This is a Bill, not an Act. For current law, see the Acts databases.

ELECTRICITY AMENDMENT BILL 2004

Queensland Electricity Amendment Bill 2004

Queensland Electricity Amendment Bill 2004 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4 Amendment of s 64A (Annual levy) . . . . . . . . . . . . . . . . . . . . . . . 14 5 Insertion of new ss 113A and 113B . . . . . . . . . . . . . . . . . . . . . . . 14 113A Authority to transmit over land . . . . . . . . . . . . . . . . . . 14 113B Authority to supply over land . . . . . . . . . . . . . . . . . . . 15 6 Amendment of s 114 (Compensation payable by electricity entity for damage etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 7 Amendment of s 117 (Resolution of certain disputes between electricity entities or between electricity entities and public entities) ...................................... 15 8 Amendment of s 119 (Regulator's role in disputes between electricity entity and customers or occupiers) . . . . . . . . . . . . . . . 16 9 Amendment of s 120ZE (Notice of referral to parties to dispute) . 16 10 Amendment of s 120ZS (Giving notice of referral to parties to dispute) ..................................... 16 11 Amendment of s 120ZZC (Party, other than electricity entity, to advise whether order accepted) . . . . . . . . . . . . . . . . . . . . . . . . 16 12 Insertion of new ch 5A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Chapter 5A 13% gas scheme Part 1 Introduction Division 1 Purposes of chapter 135A Main purposes of ch 5A . . . . . . . . . . . . . . . . . . . . . . . 17 135AA How main purposes are achieved . . . . . . . . . . . . . . . 17 Division 2 Definitions for ch 5A 135AB Power stations and their nameplate capacity ... 18 135AC Who is the economic operator of a power station . . . 20 135AD What is eligible fuel . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2 Electricity Amendment Bill 2004 135AE What is auxiliary load for a power station . . . . . . . . . . 22 135AF What is a major grid and a small grid . . . . . . . . . . . . . 22 135AG What is a substantive traceable link to a major grid 23 135AH What is a direct supply arrangement . . . . . . . . . . . . . 23 135AI What is an electricity load. . . . . . . . . . . . . . . . . . . . . . 23 135AJ Who are the baseline customers of a power station. . 24 135AK Other definitions for ch 5A . . . . . . . . . . . . . . . . . . . . . 24 Part 2 Accreditation Division 1 Applying for and obtaining accreditation 135AL Who may apply for accreditation . . . . . . . . . . . . . . . . 28 135AM Requirements for application . . . . . . . . . . . . . . . . . . . 29 135AN Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 30 135AO Provisions for deciding ancillary matters for power station ............................ 31 135AP Provisional decision to grant. . . . . . . . . . . . . . . . . . . . 32 135AQ Steps after deciding application . . . . . . . . . . . . . . . . . 32 135AR Term of accreditation . . . . . . . . . . . . . . . . . . . . . . . . . 33 135AS Withdrawal of nomination to be accredited generator 33 Division 2 Accredited generator's rights 135AT Right to create, mortgage and transfer GEC . . . . . . . 34 Division 3 Standard accreditation conditions 135AU Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 135AV Obligation to give information when GEC created . . . 35 135AW Obligation to keep documents used for GEC creation 35 135AX Compliance with directions by regulator. . . . . . . . . . . 36 135AY Condition not to improperly create GECs. . . . . . . . . . 36 135AZ Notice to regulator of particular matters . . . . . . . . . . . 36 135B Periodic GEC reviews. . . . . . . . . . . . . . . . . . . . . . . . . 36 135BA Obligation to take action because of improper creation of GECs or GEC review . . . . . . . . . . . . . . . . 37 135BB Obligation to keep GEC review documents .... 38 135BC Access to power station . . . . . . . . . . . . . . . . . . . . . . . 38 135BD Obligation to provide information for annual loss factor 38 135BE Annual fee and return. . . . . . . . . . . . . . . . . . . . . . . . . 38 135BF Obligation to keep documents used to make annual return ............................... 39 135BG Conditions imposed under a regulation . . . . . . . . . . . 39 135BH Amounts payable under chapter or accreditation . . . . 39

3 Electricity Amendment Bill 2004 135BI Accreditation conditions must not be contravened . . . 39 Division 4 Dealings with accreditation Subdivision 1 Transfers 135BJ Transfer only by application . . . . . . . . . . . . . . . . . . . . 40 135BK Applying for transfer . . . . . . . . . . . . . . . . . . . . . . . . . . 40 135BL Deciding transfer application . . . . . . . . . . . . . . . . . . . 40 Subdivision 2 Surrenders 135BM Applying to surrender . . . . . . . . . . . . . . . . . . . . . . . . . 41 135BN Deciding surrender application. . . . . . . . . . . . . . . . . . 41 135BO Effect of surrender . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Division 5 Amendment, cancellation and suspension of accreditation Subdivision 1 Amendment by application 135BP Applying for amendment. . . . . . . . . . . . . . . . . . . . . . . 42 135BQ Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Subdivision 2 Amendment by regulator without proposed action notice 135BR Amendments for which proposed action notice not required ............................. 43 Subdivision 3 Other amendments, cancellation and suspension 135BS Partial suspension for non-payment of annual fee . . . 43 135BT Regulator's power to amend, cancel or suspend . . . . 44 135BU Conditions for other amendments and for cancellation or suspension by regulator . . . . . . . . . . . 45 135BV Notice of proposed action. . . . . . . . . . . . . . . . . . . . . . 46 135BW Considering submissions . . . . . . . . . . . . . . . . . . . . . . 46 135BX Decision on proposed action . . . . . . . . . . . . . . . . . . . 47 135BY Notice and taking of effect of proposed action decision 47 135BZ Effect of cancellation . . . . . . . . . . . . . . . . . . . . . . . . . 48 135C Final return on cancellation . . . . . . . . . . . . . . . . . . . . 48 Part 3 Eligible gasfired electricity Division 1 Working out eligible gas-fired electricity Subdivision 1 Preliminary 135CA Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Subdivision 2 Power stations with nameplate capacity of more than 500 kW 135CB Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 49 135CC General method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

4 Electricity Amendment Bill 2004 135CD Alternate methods for direct supply arrangement . . . 50 135CE Adjustment for general method if a direct method used 51 135CF Directions for working out eligible gas-fired electricity 51 Subdivision 3 Power stations with nameplate capacity of 500 kW or less 135CG Application of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 52 135CH Power to prescribe method. . . . . . . . . . . . . . . . . . . . . 52 135CI Obtaining approval to use method for working out . . . 52 135CJ Methods that otherwise apply. . . . . . . . . . . . . . . . . . . 53 Division 2 Eligible electricity guidelines 135CK Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 135CL Publication of guidelines. . . . . . . . . . . . . . . . . . . . . . . 53 Division 3 Queensland usage factors 135CM Annual QUFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 135CN Baseline QUFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 135CO Transmission zones . . . . . . . . . . . . . . . . . . . . . . . . . . 54 135CP Power stations connected to national grid within same transmission zone . . . . . . . . . . . . . . . . . . . . . . 55 135CQ QUFs may be differential as to time . . . . . . . . . . . . . . 56 Division 4 Loss factors 135CR Annual loss factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 135CS Baseline loss factor . . . . . . . . . . . . . . . . . . . . . . . . . . 56 135CT Provisions for working out loss factors . . . . . . . . . . . . 57 135CU Publication of loss factors. . . . . . . . . . . . . . . . . . . . . . 57 Division 5 Baselines for baseline customers Subdivision 1 Introduction 135CV What is a power station's baseline for a baseline customer ............................ 58 135CW Purpose of baseline . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Subdivision 2 Baseline for existing baseline customers 135CX Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 58 135CY General method for working out baseline. . . . . . . . . . 59 135CZ Alternate method for direct supply arrangement . . . . 60 135D Information notice about decision. . . . . . . . . . . . . . . . 61 Subdivision 3 Baseline for other baseline customers 135DA Baseline for other customers . . . . . . . . . . . . . . . . . . . 61 Subdivision 4 Changes to baseline 135DB Cessation of supply . . . . . . . . . . . . . . . . . . . . . . . . . . 62

5 Electricity Amendment Bill 2004 135DC Adjustment for customer transfer to another accredited power station . . . . . . . . . . . . . . . . . . . . . 62 135DD Adjustment for other customer transfers . . . . . . . . . . 62 Part 4 GECS Division 1 Creation and registration of GECs 135DE Electricity required to create GEC . . . . . . . . . . . . . . . 63 135DF Prohibition on creation if certificate created under corresponding law . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 135DG Time limitation on creation right . . . . . . . . . . . . . . . . . 63 135DH How a GEC is created . . . . . . . . . . . . . . . . . . . . . . . . 63 135DI When GEC takes effect . . . . . . . . . . . . . . . . . . . . . . . 64 135DJ Deciding on validity and registration. . . . . . . . . . . . . . 64 135DK Automatic registration. . . . . . . . . . . . . . . . . . . . . . . . . 65 135DL Power to register GEC without prescribed fee . . . . . . 66 135DM Effect of registration . . . . . . . . . . . . . . . . . . . . . . . . . . 66 135DN Ownership of GEC on registration . . . . . . . . . . . . . . . 66 Division 2 Improper creation or receipt of GECs 135DO Offence of improper creation of GEC . . . . . . . . . . . . . 67 135DP Defence to proceeding for improper creation of GEC 67 135DQ Direction to accredited generator to surrender GECs 68 135DR Improper receipt of invalidly created GEC . . . . . . . . . 68 Division 3 Term of GECs 135DS Automatic expiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 135DT Surrender and cancellation . . . . . . . . . . . . . . . . . . . . 69 Division 4 Dealings with GECs Subdivision 1 Transfers 135DU Conditions for transfer . . . . . . . . . . . . . . . . . . . . . . . . 69 135DV Notice and taking effect of transfer . . . . . . . . . . . . . . . 70 135DW Ownership of GEC on transfer . . . . . . . . . . . . . . . . . . 70 135DX Market operating rules and arrangements . . . . . . . . . 71 Subdivision 2 Mortgages 135DY Mortgage of GEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 135DZ Notice of intention to exercise powers under mortgage 72 135E Consequence of exercising powers under mortgage . 72 Subdivision 3 Surrenders 135EA Surrender only by approval . . . . . . . . . . . . . . . . . . . . 72 135EB Who may apply for surrender . . . . . . . . . . . . . . . . . . . 72

6 Electricity Amendment Bill 2004 135EC Making surrender application . . . . . . . . . . . . . . . . . . . 73 135ED Power to accept application without prescribed fee . . 73 135EE Deciding surrender application. . . . . . . . . . . . . . . . . . 73 Division 5 Amendment, cancellation and suspension of GECs Subdivision 1 Preliminary 135EF Application of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Subdivision 2 Immediate suspension 135EG Immediate suspension . . . . . . . . . . . . . . . . . . . . . . . . 75 Subdivision 3 Amendment, cancellation or suspension (other than immediate suspension) 135EH Power to amend, cancel or suspend . . . . . . . . . . . . . 76 135EI Notice of proposed action. . . . . . . . . . . . . . . . . . . . . . 76 135EJ Considering submissions . . . . . . . . . . . . . . . . . . . . . . 77 135EK Decision on proposed action . . . . . . . . . . . . . . . . . . . 77 135EL Notice and taking of effect of proposed action decision 78 Part 5 13% liability Division 1 Preliminary 135EM Simplified explanation of pt 5 . . . . . . . . . . . . . . . . . . . 79 Division 2 The 13% liability Subdivision 1 Imposition of 13% liability in relation to major grids 135EN Application of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 80 135EO Liable person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 135EP Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 135EQ How and when liability must be met . . . . . . . . . . . . . . 80 Subdivision 2 Imposition of 13% liability in relation to small grids 135ER Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 81 135ES Liable person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 135ET How and when liability must be met ........ 81 Subdivision 3 General provisions for 13% liability 135EU GECs that can not be used to meet 13% liability . . . . 82 135EV Liability not subject to condition of GEC ownership . . 82 135EW Obligation to keep documents relating to 13% liability 83 Division 3 Civil penalty for not meeting 13% liability 135EX Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 135EY Imposition of civil penalty for not meeting 13% liability 83

7 Electricity Amendment Bill 2004 135EZ Exemption to allow for meter data revisions or adjustments ......................... 84 135F Amount of civil penalty . . . . . . . . . . . . . . . . . . . . . . . . 84 135FA Shortfall charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 135FB Interest on unpaid civil penalty . . . . . . . . . . . . . . . . . . 86 135FC Recovery of unpaid civil penalty and interest .. 86 Division 4 Assessments Subdivision 1 Self-assessment 135FD Self-assessment report . . . . . . . . . . . . . . . . . . . . . . . 86 135FE Derivative use immunity for self-assessment report. . 87 135FF Obligation to keep documents used to make self-assessment report . . . . . . . . . . . . . . . . . . . 88 Subdivision 2 Assessments by regulator 135FG Purpose of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 135FH Default assessment . . . . . . . . . . . . . . . . . . . . . . . . . . 88 135FI Reassessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 135FJ Compromise assessment. . . . . . . . . . . . . . . . . . . . . . 89 135FK Amended assessment . . . . . . . . . . . . . . . . . . . . . . . . 90 135FL Assessments made on available relevant information 91 135FM Notice of assessment and when it takes effect 91 135FN Time for assessment by regulator . . . . . . . . . . . . . . . 91 Subdivision 3 Credits and refunds 135FO Credit to future 13% liability for over surrender . . . . . 91 135FP Regulator to refund overpaid civil penalty and interest 92 Subdivision 4 Evidentiary provisions for assessments 135FQ Evidentiary provisions . . . . . . . . . . . . . . . . . . . . . . . . 92 Division 5 Liable persons in relation to major grids Subdivision 1 Liability hierarchy 135FR Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 135FS Retailer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 135FT Special approval holder . . . . . . . . . . . . . . . . . . . . . . . 94 135FU Specific circumstance generator . . . . . . . . . . . . . . . . 95 135FV Substantial on-site generator . . . . . . . . . . . . . . . . . . . 95 135FW Wholesale purchaser from spot market . . . . . . . . . . . 96 Subdivision 2 Resolving disputes about who is the liable person 135FX Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 96 135FY Referral to regulator . . . . . . . . . . . . . . . . . . . . . . . . . . 97

8 Electricity Amendment Bill 2004 135FZ Submissions by other affected parties . . . . . . . . . . . . 97 135G Regulator's power to require documents or information 97 135GA Regulator may require confidentiality to be observed 98 135GB Regulator may require mediation . . . . . . . . . . . . . . . . 98 135GC Criteria for decision . . . . . . . . . . . . . . . . . . . . . . . . . . 98 135GD Exclusion of other jurisdictions . . . . . . . . . . . . . . . . . . 99 135GE Notice of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 135GF Decision binds parties to the dispute . . . . . . . . . . . . . 99 Division 6 Exempted loads Subdivision 1 Preliminary 135GG Who is an interested person for an electricity load. . . 100 135GH Who obtains the benefit of liable load exemption . . . . 100 Subdivision 2 State development exemption 135GI Application and operation of sdiv 2 . . . . . . . . . . . . . . 100 135GJ Making application . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 135GK Notice to other interested persons . . . . . . . . . . . . . . . 102 135GL Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 102 135GM Steps after deciding application . . . . . . . . . . . . . . . . . 103 135GN Condition for proposed supply . . . . . . . . . . . . . . . . . . 104 135GO Amendment of applicant's supply schedule ... 104 135GP Condition for continuity of supply . . . . . . . . . . . . . . . . 106 135GQ Reporting condition . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Subdivision 3 Renewable energy exemption 135GR Operation of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 135GS Making application . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 135GT Notice to other interested persons . . . . . . . . . . . . . . . 108 135GU Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 108 135GV Steps after deciding application . . . . . . . . . . . . . . . . . 109 135GW Ineligible fuel allowance . . . . . . . . . . . . . . . . . . . . . . . 110 135GX General conditions of exemption . . . . . . . . . . . . . . . . 110 135GY Reporting condition . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Subdivision 4 Power station auxiliary load exemption 135GZ Operation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 135H Making application . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 135HA Notice to other interested persons . . . . . . . . . . . . . . . 111 135HB Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 112 135HC Steps after deciding application . . . . . . . . . . . . . . . . . 112

9 Electricity Amendment Bill 2004 135HD General condition of exemption . . . . . . . . . . . . . . . . . 113 135HE Reporting condition . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Subdivision 5 General conditions of liable load exemptions 135HF Annual fee and exemption compliance report . . . . . . 113 135HG Obligation to keep documents relating to exemption . 114 Subdivision 6 Amending liable load exemption by application 135HH Applying for amendment. . . . . . . . . . . . . . . . . . . . . . . 114 135HI Notice to other interested persons . . . . . . . . . . . . . . . 114 135HJ Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Subdivision 7 Amendment of liable load exemption by regulator without proposed action notice 135HK Amendments for which proposed action notice not required ............................ 115 Subdivision 8 Other amendments, cancellation and suspension of liable load exemption 135HL Conditions for other amendments, cancellation or suspension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 135HM Notice of proposed action. . . . . . . . . . . . . . . . . . . . . . 116 135HN Considering submissions . . . . . . . . . . . . . . . . . . . . . . 117 135HO Decision on proposed action . . . . . . . . . . . . . . . . . . . 117 135HP Notice and taking of effect of proposed action decision 118 Subdivision 9 Consequences of particular cancellations 135HQ Liable load exemption obtained because of false or misleading declaration or representation . . . . . . . . . . 118 135HR Cancellation of State development exemption for contravention of condition for proposed supply . . . . . 118 135HS Consequence of cancellation of State development exemption for contravention of condition for continuity of supply . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 135HT Consequence of cancellation of other exemptions for contravention of general condition. . . . . . . . . . . . . 120 Division 7 Non-liable loads 135HU Emergency stand-by plant . . . . . . . . . . . . . . . . . . . . . 120 135HV Immaterial loads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 135HW Electricity sold under special remote area arrangement ........................ 121 135HX Electricity sold under retailer of last resort scheme or similar scheme ........................ 121 135HY Electricity sold under s 49A(3) contract . . . . . . . . . . . 122 135HZ Electricity sold or supplied to Boyne Island Smelter. . 122

10 Electricity Amendment Bill 2004 Part 6 Scheme participants 135I Applying for registration . . . . . . . . . . . . . . . . . . . . . . . 122 135IA Right to registration . . . . . . . . . . . . . . . . . . . . . . . . . . 123 135IB Term of registration. . . . . . . . . . . . . . . . . . . . . . . . . . . 123 135IC Annual fee for particular scheme participants 123 135ID Partial suspension for non-payment of annual fee . . . 124 135IE Surrender of registration. . . . . . . . . . . . . . . . . . . . . . . 124 Part 7 Monitoring Division 1 Approved auditors 135IF Appointment and qualifications . . . . . . . . . . . . . . . . . 125 135IG Appointment conditions and limit on powers . . . . . . . 125 135IH Applying for and obtaining appointment as an approved auditor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 135II Issue of identity card . . . . . . . . . . . . . . . . . . . . . . . . . 127 135IJ Production or display of identity card . . . . . . . . . . . . . 127 135IK When approved auditor ceases to hold office . . . . . . 127 135IL Revocation of approved auditor's appointment. . . . . . 128 135IM Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 135IN Return of identity card . . . . . . . . . . . . . . . . . . . . . . . . 129 Division 2 Required audits 135IO Who is an auditable person . . . . . . . . . . . . . . . . . . . . 130 135IP Regulator may require audit . . . . . . . . . . . . . . . . . . . . 130 135IQ Required contents for audit notice . . . . . . . . . . . . . . . 130 135IR Failure to comply with audit notice . . . . . . . . . . . . . . . 131 135IS Costs of complying with audit notice . . . . . . . . . . . . . 131 Division 3 Audits by regulator 135IT Regulator may carry out audit . . . . . . . . . . . . . . . . . . 131 135IU Regulator's costs of audit or report . . . . . . . . . . . . . . 132 Division 4 General provisions for audits 135IV Who may carry out audit . . . . . . . . . . . . . . . . . . . . . . 132 135IW False or misleading statement in audit report . . . . . . 133 Part 8 Miscellaneous provisions Division 1 Additional provisions for applications 135IX Meaning of application and applicant for div 1 . . . . . . 133 135IY Substantial compliance with application requirements may be accepted . . . . . . . . . . . . . . . . . 133 135IZ Additional information or inspection may be required. 134

11 Electricity Amendment Bill 2004 135J Regulator's costs of inspection. . . . . . . . . . . . . . . . . . 134 Division 2 Measurement of electricity 135JA Regulator's power to decide measurement method . . 135 135JB Procedure for deciding measurement method . . . . . . 136 135JC Decided method must be applied . . . . . . . . . . . . . . . . 136 135JD Obligation to notify regulator of change in circumstances for decided measurement method . . . 137 Division 3 Registers 135JE Registers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 135JF Required information for accredited generator register 138 135JG Required information for GEC register . . . . . . . . . . . . 138 135JH Required information for scheme participant register. 139 135JI Required information for liable load exemption register 139 135JJ General provisions for register keeping . . . . . . . . . . . 139 135JK Access to registers . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Division 4 General offences for ch 5A 135JL Who is an official . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 135JM Confidentiality of particular information . . . . . . . . . . . 141 135JN False or misleading statement . . . . . . . . . . . . . . . . . . 142 135JO False or misleading document . . . . . . . . . . . . . . . . . . 142 135JP Obstructing approved auditor . . . . . . . . . . . . . . . . . . . 142 135JQ Impersonating approved auditor. . . . . . . . . . . . . . . . . 143 135JR Notice of change from small grid to major grid. . . . . . 143 Division 5 Other miscellaneous provisions 135JS Additional information about reports and other matters 143 135JT General evidentiary aids for ch 5A . . . . . . . . . . . . . . . 144 135JU Obligation of State to indemnify particular information-givers ....................... 145 135JV Approved forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Part 9 Expiry of chapter 135JW Expiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 135JX Saving of operation of chapter . . . . . . . . . . . . . . . . . . 146 13 Insertion of new ss 140A and 140B . . . . . . . . . . . . . . . . . . . . . . . 146 140A Entry to place to carry out remedial work. . . . . . . . . . 146 140B Entry to place to carry out urgent remedial work . . . . 147 14 Insertion of new s 141A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 141A Duty to avoid damage. . . . . . . . . . . . . . . . . . . . . . . . . 148

12 Electricity Amendment Bill 2004 15 Amendment of s 152A (Power to enter place) . . . . . . . . . . . . . . . 148 16 Amendment of s 152G (General powers after entering place) . . . 148 16A Amendment of s 259A (Regulation may declare a State electricity entity) ................................. 149 17 Insertion of new ch 14, pt 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Part 7 Transitional provisions for Electricity Amendment Act 2004 309 Existing electricity supply contracts . . . . . . . . . . . . . . 150 18 Amendment of sch 1 (Appeals against administrative decisions) 151 19 Amendment of sch 5 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . 154

2004 A Bill for An Act to amend the Electricity Act 1994

14 Electricity Amendment Bill 2004 The Parliament of Queensland enacts-- 1 Clause 1 Short title 2 This Act may be cited as the Electricity Amendment Act 2004. 3 Clause 2 Commencement 4 This Act commences on a day to be fixed by proclamation. 5 Clause 3 Act amended 6 This Act amends the Electricity Act 1994. 7 Clause 4 Amendment of s 64A (Annual levy) 8 Section 64A(1)(b)-- 9 omit, insert-- 10 `(b) a retail entity whose retail authority states a retail area or 11 that supplies customers whose consumption of 12 electricity has been less than 200 000 kWh in any 13 12 month period;'. 14 Clause 5 Insertion of new ss 113A and 113B 15 After section 113-- 16 insert-- 17 `113A Authority to transmit over land 18 `(1) A transmission entity is authorised to operate works to 19 transmit electricity across, over or through the following 20 land-- 21 (a) land that it owns; 22 (b) land over which it holds the benefit of an easement, 23 licence or other agreement or a consent mentioned in 24 section 112 in relation to the works. 25

15 Electricity Amendment Bill 2004 `(2) Subsection (1)(b) applies whether or not the easement, 1 licence, agreement or consent authorises the transmission. 2 `113B Authority to supply over land 3 `(1) A distribution entity is authorised to operate works to supply 4 electricity using a supply network across, over or through the 5 following land-- 6 (a) land that it owns; 7 (b) land over which it holds the benefit of an easement, 8 licence or other agreement or a consent mentioned in 9 section 112 in relation to the works. 10 `(2) Subsection (1)(b) applies whether or not the easement, 11 licence, agreement or consent authorises the supply.'. 12 Clause 6 Amendment of s 114 (Compensation payable by 13 electricity entity for damage etc.) 14 Section 114-- 15 insert-- 16 `(3) Subsection (2) is subject to sections 97 and 97A. '. 1 17 Clause 7 Amendment of s 117 (Resolution of certain disputes 18 between electricity entities or between electricity entities 19 and public entities) 20 Section 117(1A), after `Market Code'-- 21 insert-- 22 `or to disputes that relate to chapter 5A (including a dispute 23 about what is a chargeable amount under section 309)2'. 24 1 Sections 97 (Limitation of liability of electricity entities and special approval holders that are not code participants) and 97A (Limitation of liability for National Electricity (Queensland) Law) 2 Chapter 5A (13% gas scheme) Section 309 (Existing electricity supply contracts)

16 Electricity Amendment Bill 2004 Clause 8 Amendment of s 119 (Regulator's role in disputes 1 between electricity entity and customers or occupiers) 2 (1) Section 119(2)-- 3 insert-- 4 `(c) a dispute between an electricity entity and a customer if 5 the customer's consumption of electricity has been more 6 than 200 000 k Wh in any 12 month period; 7 (d) a dispute that relates to chapter 5A.'. 8 (2) Section 119(8)-- 9 insert-- 10 `(c) the regulator considers the subject of the dispute, as 11 referred to the regulator, is frivolous or vexatious.'. 12 Clause 9 Amendment of s 120ZE (Notice of referral to parties to 13 dispute) 14 Section 120ZE(b)-- 15 omit, insert-- 16 `(b) the mediator's name.'. 17 Clause 10 Amendment of s 120ZS (Giving notice of referral to 18 parties to dispute) 19 Section 120ZS(2)(b)-- 20 omit, insert-- 21 `(b) the arbitrator's name.'. 22 Clause 11 Amendment of s 120ZZC (Party, other than electricity 23 entity, to advise whether order accepted) 24 Section 120ZZC(1), `energy arbitrator'-- 25 omit, insert-- 26 `regulator'. 27

17 Electricity Amendment Bill 2004 Clause 12 Insertion of new ch 5A 1 After chapter 5-- 2 insert-- 3 `Chapter 5A 13% gas scheme 4 `Part 1 Introduction 5 `Division 1 Purposes of chapter 6 `135A Main purposes of ch 5A 7 `The main purposes of this chapter are to-- 8 (a) reduce the growth in greenhouse gases associated with 9 electricity use in the State; and 10 (b) contribute to the diversification of the State's energy 11 mix towards the greater use of gas in electricity 12 generation; and 13 (c) encourage the development of new gas sources and gas 14 infrastructure to meet the State's future energy 15 requirements. 16 `135AA How main purposes are achieved 17 `(1) The main purposes of this chapter are achieved by providing 18 for a certificate-based scheme. 19 `(2) The scheme consists of-- 20 (a) persons (called `accredited generators') who generate, 21 or who are involved in the generation of, particular 22 gas-fired electricity that supports the State's electricity 23 load; and 24 (b) persons (called `liable persons'), most of whom are 25 retail entities and others who sell or use electricity in the 26 State, who have a liability under the scheme. 27 `(3) Under the scheme-- 28

18 Electricity Amendment Bill 2004 (a) accredited generators can create gas electricity 1 certificates (each called a GEC) for each MWh of 2 particular gas-fired electricity worked out under part 33 3 (eligible gas-fired electricity) generated by the 4 accredited power station; and 5 (b) accredited generators may sell GECs to liable persons 6 and anyone else registered under this chapter as a 7 scheme participant who wishes to trade in GECs; and 8 (c) liable persons must surrender to the regulator the 9 number of GECs that, in general terms, equates to 13% 10 of the electricity sold or used by them for each year from 11 2005 to 2019; and 12 (d) accredited generators and persons registered under 13 part 64 as scheme participants may, subject to part 4, 14 division 4,5 sell, transfer or surrender their GECS. 15 `(4) Accredited generators and persons registered under part 6 are 16 collectively called a scheme participant.6 17 `(5) It is Parliament's expectation that income earned from the sale 18 of GECs will help gas-fired electricity to compete with 19 electricity generated from other more greenhouse-intensive 20 energy sources. 21 `Division 2 Definitions for ch 5A 22 `135AB Power stations and their nameplate capacity 23 `(1) A power station is an electricity generating plant or system. 24 `(2) Power station also includes all buildings, components, 25 equipment and infrastructure of the plant or system directly 26 related to its operation or to its electricity production, 27 including, for example, a thing needed-- 28 3 Part 3 (Eligible gas-fired electricity) 4 Part 6 (Scheme participants) 5 Part 4, division 4 (Dealings with GECs) 6 For persons who are taken to be registered under part 6 as a scheme participant, see sections 135BO (Effect of surrender), 135BZ (Effect of cancellation) and 135GH (Who obtains the benefit of liable load exemption).

19 Electricity Amendment Bill 2004 (a) to store, retrieve, measure, distribute or prepare the fuel 1 or energy source for the plant or system; or 2 (b) to combust, convert or otherwise use the fuel or energy 3 source for the plant or system to generate electricity 4 directly or to energise an intermediate medium; or 5 6 Example of an intermediate medium-- 7 steam, produced from the burning of fuel in a boiler, that is used 8 to drive a steam turbine to generate electricity (c) to convert the energy in an intermediate medium into 9 electricity; or 10 (d) to control, switch or transform the electricity generated; 11 or 12 (e) to control the processes involved in the main and 13 auxiliary processes associated with the electricity 14 generation; or 15 (f) to control emissions to ensure compliance with a 16 relevant environmental authority under the 17 Environmental Protection Act 1994 if the thing is 18 directly related to the electricity generation; or 19 (g) to do any of the following for a matter or process 20 mentioned in paragraphs (a) to (f)-- 21 (i) cooling; 22 (ii) heating; 23 (iii) preparing or distributing a fluid or gas to use in, or 24 to control, the matter or process; 25 (iv) distributing or controlling electricity used; 26 (v) metering, recording or transmitting relevant 27 parameters; 28 (vi) waste disposal or removal; or 29 (h) to comply with the Workplace Health and Safety Act 30 1995 or a requirement or standard under any other Act 31 relating to safety if the thing is directly related to the 32 electricity generation. 33 `(3) However, a thing mentioned in subsection (2) is not part of the 34 power station if it-- 35

20 Electricity Amendment Bill 2004 (a) is located more than 1 km from the boundary of the 1 plant or system; or 2 (b) is only used to-- 3 (i) extract or mine a fuel source for the plant or 4 system; or 5 (ii) separate or process wastes only part of which form 6 a fuel source for the power station. 7 `(4) A power station's nameplate capacity is the capacity of its 8 main generating unit or units, as stated by its manufacturer. 9 `135AC Who is the economic operator of a power station 10 `The economic operator of a power station is-- 11 (a) the person who, under the Market Code, is registered as 12 the generator for the power station; or 13 (b) if no one is registered, or required to be registered, under 14 the code as the generator for the power station--the 15 person who has the physical control of the power 16 station. 17 18 Example for paragraph (b)-- 19 a person who has the physical control of a power station not 20 connected to the national grid `135AD What is eligible fuel 21 `(1) An eligible fuel is-- 22 (a) natural gas formed naturally in the earth; or 23 24 Examples-- 25 · liquefied natural gas or `LNG' 26 · compressed natural gas or `CNG' 27 · gas (commonly called `coal seam gas') occurring naturally 28 in association with coal and produced as a resource in its 29 own right 30 · gas (commonly called `waste mine gas') occurring naturally 31 in association with coal and--

21 Electricity Amendment Bill 2004 1 (a) released during the process of coal mining, either 2 directly or indirectly by disturbance of gas-bearing 3 strata; or 4 (b) released before mining for the purpose of safety; or 5 (c) drained from underground areas previously mined for 6 coal (b) a substance that is-- 7 (i) a by-product of processes carried out at a 8 petroleum refinery; and 9 (ii) a gas at an absolute pressure of 101.325 kPa and at 10 a temperature of 15ºC; or 11 (c) a gas not formed naturally in the earth that consists 12 predominately of methane and-- 13 (i) is of the composition, characteristics and quality 14 prescribed, under the Gas (Residual Provisions) 15 Act 1965, for natural gas as defined under that Act 16 (whether or not the gas is natural gas as defined 17 under that Act);7 or 18 (ii) is of another quality approved under that Act;8 or 19 (iii) is of a quality prescribed under a regulation; or 20 (d) liquefied petroleum gas. 21 `(2) However, eligible fuel does not include an eligible renewable 22 energy source under the Renewable Energy (Electricity) Act 23 2000 (Cwlth). 24 `(3) In this section-- 25 petroleum refinery means an organised and coordinated 26 arrangement of manufacturing processes the primary purpose 27 of which is to separate and purify crude oil for the production 28 and sale of liquid fuel products. 29 7 For the prescribed quality, see the Gas (Residual Provisions) Regulation 1989, section 10 (Composition, characteristics and quality of gas). 8 See the Gas (Residual Provisions) Regulation 1989, section 21 (Non-conforming gases).

22 Electricity Amendment Bill 2004 `135AE What is auxiliary load for a power station 1 `(1) Auxiliary load, for a power station, is-- 2 (a) electricity used within the power station as part of an 3 electricity generation process; or 4 (b) electricity-- 5 (i) used within its boundaries to power buildings, 6 components, equipment or infrastructure that are 7 not part of the power station; and 8 (ii) that is not separately metered from electricity 9 mentioned in paragraph (a); or 10 (c) electricity used for a purpose mentioned in 11 paragraph (a) or (b) at any time from when the power 12 station first sends out electricity to a grid; or 13 (d) electricity used to run the power station in synchronous 14 condenser mode if the electricity is able to be separately 15 measured and is distinguishable from other energy uses 16 for the power station. 17 `(2) However, if electricity used within a power station as part of 18 an electricity generation process is a pumping load for a 19 pumped storage hydro power station, only the proportion of 20 the load that is equal to the amount of the electricity generated 21 that is sent out by the power station is auxiliary load. 22 `135AF What is a major grid and a small grid 23 `(1) A major grid is-- 24 (a) a supply network or transmission grid if-- 25 (i) it is not interconnected with another transmission 26 grid or supply network; and 27 (ii) the power stations connected to it have a combined 28 nameplate capacity of more than 100 MW; or 29 (b) a network of interconnected transmission grids or 30 supply networks the power stations connected to which 31 have a combined nameplate capacity of more than 32 100 MW. 33 `(2) A small grid is-- 34

23 Electricity Amendment Bill 2004 (a) a supply network or transmission grid if-- 1 (i) it is not interconnected with another transmission 2 grid or supply network; and 3 (ii) the power stations connected to it have a combined 4 nameplate capacity of 100 MW or less; or 5 (b) a network of interconnected transmission grids or 6 supply networks the power stations connected to which 7 have a combined nameplate capacity of 100 MW or less. 8 `135AG What is a substantive traceable link to a major grid 9 `A substantive traceable link, to a major grid, is a connection 10 of electric lines that allows electricity to be sent into or 11 received from the grid. 12 `135AH What is a direct supply arrangement 13 `A direct supply arrangement is an arrangement under 14 which-- 15 (a) a power station supplies electricity to an end user in the 16 State using a dedicated line; or 17 (b) electricity is supplied to a customer in the State through 18 a grid if-- 19 (i) the grid is not directly or indirectly connected to 20 the national grid; and 21 (ii) 90% or more of the annual electricity supplied to 22 the grid is generated from eligible fuels. 23 `135AI What is an electricity load 24 `(1) An electricity load is an amount of electricity to supply all or 25 part of the electricity of-- 26 (a) a customer or a group of customers; or 27 (b) an end user, or a group of end users, of electricity. 28 `(2) The electricity load of the State is the total amount of 29 electricity to supply the needs of end users of electricity who 30 are in the State. 31

24 Electricity Amendment Bill 2004 `135AJ Who are the baseline customers of a power station 1 `(1) A baseline customer, of a power station, is each person 2 mentioned in subsection (2)-- 3 (a) who is a customer of the power station or to whom the 4 power station supplies electricity; and 5 (b) who is in the State; and 6 (c) to whom the power station delivers electricity generated 7 from eligible fuels. 8 `(2) For subsection (1), the persons are-- 9 (a) a person to whom the power station supplies electricity 10 under a direct supply arrangement; and 11 (b) NEMMCO; and 12 (c) if the power station is not directly or indirectly 13 connected to the national grid--a retailer supplying 14 electricity under a direct supply arrangement. 15 `(3) Subsection (1) applies even if, under part 3, division 5, the 16 amount of the baseline for the person is 0. 17 `135AK Other definitions for ch 5A 18 `In this chapter-- 19 13% liability see section 135EM(1). 20 accreditation means accredited as an accredited generator 21 under part 2. 22 accredited generator means a person who holds an 23 accreditation that is in force. 24 accredited generator register see section 135JE(1)(a). 25 accredited power station means the power station or the parts 26 of the power station, as decided by the regulator under 27 section 135AN, for which an accreditation is held. 28 amended assessment see section 135FK(2). 29 ancillary matters, for a power station, see section 135AM(2). 30 annual loss factor, for a power station, see section 135CR(2). 31 annual QUF, for a power station, see section 135CM(2). 32

25 Electricity Amendment Bill 2004 applicant, for part 8, division 1, see section 135IX(a). 1 application, for part 8, division 1, see section 135IX(b). 2 approved auditor means a person who, under part 7, 3 division 1, holds an appointment as an approved auditor. 4 approved form means the form approved, under 5 section 135JV, by the regulator. 6 assessment, by the regulator, means an assessment by the 7 regulator made under part 5, division 4, subdivision 2. 8 auditable person see section 135IO. 9 audit notice see section 135IP(1). 10 auxiliary load, for a power station, see section 135AE. 11 baseline, for an accredited power station, see 12 section 135CV(1). 13 baseline customer, of a power station, see section 135AJ. 14 baseline loss factor, for a power station, see 15 section 135CS(3). 16 baseline QUF, for a power station, see section 135CN(3). 17 baseline year, for a power station-- 18 1 Generally, the baseline year for a power station is the 19 period mentioned in section 135CY(2). 20 2 However, if, under section 135CY(3) or 135CZ(3), the 21 regulator has fixed a sent out or delivered amount by 22 reference to another period, the baseline year for the 23 power station is the other period. 24 civil penalty means the civil penalty imposed under 25 section 135EY. 26 complete suspension, of the right to create GECs, see 27 section 135BT(2)(a). 28 compromise assessment see section 135FJ(2). 29 dedicated line means an electric line that supplies only 1 end 30 user or only 1 group of interrelated end users. 31 default assessment see section 135FH(1). 32

26 Electricity Amendment Bill 2004 direct method means direct method A or direct method B 1 under section 135CD. 2 direct supply arrangement see section 135AH. 3 economic operator, of a power station, see section 135AC. 4 electricity load see section 135AI. 5 eligible electricity guidelines see section 135CK. 6 eligible fuel see section 135AD. 7 eligible gas-fired electricity see section 135AA(3)(a). 8 eligible renewable electricity see section 135GR(2). 9 end user, of electricity, means any one who uses it. 10 exempted load see section 135EM(4)(b). 11 GEC see section 135AA(3)(a). 12 GEC register see section 135JE(1)(b). 13 GEC review see section 135B(1). 14 GEC surrender direction see section 135DQ(2). 15 general method see section 135CC. 16 information notice, for a decision, means a notice stating 17 each of the following-- 18 (a) the decision; 19 (b) reasons for the decision; 20 (c) all rights of review or appeal under this Act for the 21 decision; 22 (d) the period in which any review or appeal must be 23 started; 24 (e) how the rights of review or appeal must be exercised; 25 (f) that a stay of a decision the subject of review or appeal 26 under this Act may be applied for under this Act. 27 interested person, for an electricity load, see section 135GG. 28 liable load see section 135EM(5). 29 liable load exemption means an exemption granted under 30 part 5, division 6 that is in force. 31

27 Electricity Amendment Bill 2004 liable load exemption register see section 135JE(1)(d). 1 liable person see section 135EM(3). 2 liable year, for the 13% liability, see section 135EM(6). 3 limited suspension see section 135BT(2)(b). 4 major grid see section 135AF(1). 5 measurement method, for a power station, see 6 section 135AM(3). 7 nameplate capacity, for a power station, see 8 section 135AB(4). 9 non-liable load see section 135EM(4)(c). 10 notice means a written notice. 11 official, for part 8, division 4, see section 135JL. 12 penalty imposition day, for the 13% liability, see 13 section 135EY(2). 14 power station see section 135AB. 15 prescribed renewable energy source see 16 section 135GR(1)(a). 17 proponent, for a significant project, means the person who 18 proposes or owns the project. 19 reassessment see section 135FI. 20 recognised program see section 135GR(1)(b). 21 referrer see section 135FY(1). 22 registered owner, of a GEC-- 23 1 The registered owner, of a GEC, is the person who, 24 under section 135DN or 135DW, is or becomes its 25 registered owner. 26 2 However, the person ceases to be the registered owner if, 27 under part 4, division 3, the GEC is cancelled. 28 registration, for a GEC, means registration under 29 section 135DJ. 30 retailer means a person who holds a retail authority. 31 scheme participant see section 135AA(4). 32

28 Electricity Amendment Bill 2004 scheme participant register see section 135JE(1)(c). 1 self-assessment report see section 135FD. 2 significant project see section 135GI(1). 3 small grid see section 135AF(2). 4 special conditions, for accreditation, see 5 section 135AN(4)(a). 6 standard accreditation conditions see section 133AU(2). 7 State development exemption see section 135GI(4). 8 substantive traceable link, to a major grid, see 9 section 135AG. 10 surrender application, for a GEC, means an application made 11 under part 4, division 4, subdivision 3. 12 transmission zone see section 135CO(2). 13 valid, for the creation or purported creation of a GEC, means 14 creation under the requirements of part 4, division 1. 15 vintage year, for a GEC, means the year in which it was 16 registered. 17 `Part 2 Accreditation 18 `Division 1 Applying for and obtaining 19 accreditation 20 `135AL Who may apply for accreditation 21 `(1) The following persons may apply to the regulator to become 22 an accredited generator for a power station or proposed power 23 station-- 24 (a) for a power station-- 25 (i) its economic operator; or 26 (ii) a person nominated by the economic operator; 27

29 Electricity Amendment Bill 2004 (b) for a proposed power station-- 1 (i) a person who proposes to become its economic 2 operator; or 3 (ii) a person nominated by the proposed economic 4 operator. 5 `(2) However, only 1 person can be nominated under 6 subsection (1) for the same application. 7 `(3) If more than 1 person is the economic operator or proposed 8 economic operator-- 9 (a) the application must be made by them jointly; but 10 (b) only 1 of them can be the nominated accredited 11 generator. 12 `(4) A person can not apply for an accreditation that applies for 13 more than 1 power station or proposed power station. 14 `(5) However, subsection (4) does not prevent the same person 15 holding more than 1 accreditation. 16 `135AM Requirements for application 17 `(1) The application must-- 18 (a) be in the approved form; and 19 (b) identify the power station or proposed power station, its 20 location and each of its constituent parts; and 21 (c) state any relevant transmission zones known to the 22 applicant; and 23 (d) state the nameplate capacity of the power station or 24 proposed power station; and 25 (e) state details of the ownership of, and operating 26 arrangements for, the power station or proposed power 27 station; and 28 (f) state details of the fuels used or to be used by the power 29 station or proposed power station; and 30 (g) give information that will allow the regulator to decide 31 each of the following matters for the power station or 32 proposed power station-- 33

30 Electricity Amendment Bill 2004 (i) its baseline customers; 1 (ii) the baseline for each of the customers; 2 (iii) its annual and baseline loss factors; 3 (iv) its approved measurement points; 4 5 Example of measurement points-- 6 meters measuring sent out electricity or, if a direct method 7 is used, electricity delivered (v) if the power station or proposed power station 8 generates or uses unmetered electricity--a 9 methodology to estimate the generation or use; and 10 (h) give information that will allow the regulator to decide, 11 under section 135JA, a method for working out-- 12 (i) the amount of electricity sent out from the power 13 station or proposed power station or, if the 14 applicant proposes to apply to use a direct method, 15 delivered to an end user under a direct supply 16 arrangement; or 17 (ii) an amount incidental to subparagraph (i); and 18 (i) give information relevant to the working out of eligible 19 gas-fired electricity generated by the power station or 20 proposed power station; and 21 (j) be accompanied by-- 22 (i) evidence that, under section 135AL, the applicant 23 is entitled to make the application; and 24 (ii) the fee prescribed under a regulation. 25 `(2) The matters mentioned in subsection (1)(g) are the ancillary 26 matters for the power station or proposed power station. 27 `(3) The method mentioned in subsection (1)(h) is the 28 measurement method for the power station or proposed 29 power station. 30 `135AN Deciding application 31 `(1) The regulator must decide whether to grant or refuse the 32 application. 33

31 Electricity Amendment Bill 2004 `(2) The regulator may grant the application only if-- 1 (a) the regulator is satisfied-- 2 (i) the power station or proposed power station 3 generates, or will generate, eligible gas-fired 4 electricity; and 5 (ii) the amount of the eligible gas-fired electricity is, or 6 will be, able to be worked out from time to time; 7 and 8 (b) the regulator is able to decide-- 9 (i) the parts of the power station or proposed power 10 station that are relevant to the accreditation; and 11 (ii) the ancillary matters for the power station or 12 proposed power station. 13 `(3) If the power station or proposed power station is not in a 14 transmission zone under a regulation, the regulator may defer 15 the deciding of the application for a reasonable period to 16 allow a transmission zone to be prescribed that includes the 17 power station or proposed power station, and for the fixing of 18 relevant QUFs. 19 `(4) If the regulator decides to grant the application-- 20 (a) the regulator may impose conditions (special 21 conditions) on the accreditation the regulator considers 22 necessary or desirable;9 and 23 (b) the regulator must decide the ancillary matters. 24 `135AO Provisions for deciding ancillary matters for 25 power station 26 `(1) This section applies if the regulator is deciding the ancillary 27 matters for the power station or proposed power station. 28 `(2) The regulator need not decide its annual loss factor or baseline 29 loss factor if the regulator has, under section 135CD(3),10 30 approved direct method A for working out the eligible 31 9 See also division 3 (Standard accreditation conditions). 10 Section 135CD (Alternate methods for direct supply arrangement)

32 Electricity Amendment Bill 2004 gas-fired electricity generated by the power station or 1 proposed power station. 2 `(3) Different measurement methods may be approved for 3 different measurement points for the power station or 4 proposed power station. 5 `(4) If the regulator is satisfied arrangements for an approved 6 measurement point comply with any relevant requirements 7 under the Market Code, the regulator must approve the 8 arrangements as the measurement methods for the 9 measurement point. 10 `135AP Provisional decision to grant 11 `(1) This section applies if the regulator is deciding the application 12 and the regulator is unable to decide whether or not the 13 regulator is satisfied about a matter mentioned in 14 section 135AN(2)11 (the undecided matter). 15 `(2) The regulator may-- 16 (a) defer the deciding of the application; and 17 (b) give the applicant a notice stating that, subject to being 18 satisfied about the undecided matter as required under 19 section 135AN(2), the regulator will grant the 20 application. 21 `(3) If after giving the notice the applicant satisfies the regulator 22 about the undecided matter as required under 23 section 135AN(2), the regulator must grant the application. 24 `(4) However, subsection (3) ceases to apply if, because of a 25 change in circumstances, the regulator is no longer satisfied 26 about another matter mentioned in section 135AN(2). 27 `135AQ Steps after deciding application 28 `(1) If the regulator decides to grant the application, the regulator 29 must issue the accreditation as soon as practicable. 30 `(2) The accreditation must-- 31 11 Section 135AN (Deciding application)

33 Electricity Amendment Bill 2004 (a) state-- 1 (i) any special conditions imposed; and 2 (ii) the ancillary matters decided for the power station 3 or proposed power station; and 4 (iii) a unique accreditation code for the accredited 5 generator and the power station or proposed power 6 station; and 7 (b) be accompanied by an information notice about the 8 decisions about each of the ancillary matters and to 9 impose any special conditions. 10 `(3) Subsection (2)(b) does not apply for a condition or ancillary 11 matter that is the same, or is to the same effect as, a condition 12 or ancillary matter agreed to or requested by the applicant. 13 `(4) If the regulator decides to refuse the application, the regulator 14 must, as soon as practicable, give the applicant an information 15 notice about the decision. 16 `135AR Term of accreditation 17 `(1) An accreditation takes effect on the day of effect stated in the 18 accreditation or, if it states no day of effect, the day it is 19 issued. 20 `(2) The stated day of effect may be any day not before 1 January 21 2005. 22 `(3) Subject to suspension under division 5, subdivision 3,12 the 23 accreditation continues in force until 31 December 2020, 24 unless it is sooner cancelled or surrendered under this part. 25 `135AS Withdrawal of nomination to be accredited generator 26 `(1) This section applies if a person has applied to be, or is, the 27 accredited generator of a power station or proposed power 28 station and the person is not the economic operator of the 29 power station or proposed power station. 30 12 Division 5, subdivision 3 (Other amendments, cancellation and suspension)

34 Electricity Amendment Bill 2004 `(2) The economic operator of the power station may, by notice to 1 the regulator, withdraw the nomination given for the person to 2 become the accredited generator.13 3 `(3) A change in the economic operator of the power station does 4 not, of itself, affect the nomination. 5 `Division 2 Accredited generator's rights 6 `135AT Right to create, mortgage and transfer GEC 7 `(1) An accredited generator has, from when the accredited 8 generator's accreditation takes effect,14 the following rights-- 9 (a) to create, under part 4,15 GECs for eligible gas-fired 10 electricity generated by the power station on and from 11 the day the accreditation takes effect until-- 12 (i) the accreditation is cancelled or surrendered; or 13 (ii) the end of 31 December 2019; 14 (b) to mortgage or transfer GECs of which the accredited 15 generator is the owner up to and including 31 December 16 2020.16 17 `(2) However-- 18 (a) the rights are subject to part 4; and 19 (b) the right to create GECs is subject to any suspension 20 under division 5, subdivision 3.17 21 13 See also section 135BU(2)(c) (Conditions for other amendments and for cancellation or suspension by regulator). 14 For when an accreditation takes effect, see section 135AR (Term of accreditation) 15 Part 4 (GECs) 16 For the transfer of GECs by accredited generators or scheme participants see part 4, division 4 (Dealings with GECs). For mortgages of GECS, see section 135DY (Mortgage of GEC). 17 Division 5, subdivision 3 (Other amendments, cancellation and suspension)

35 Electricity Amendment Bill 2004 `Division 3 Standard accreditation conditions 1 `135AU Operation of div 3 2 `(1) This division imposes conditions on each accreditation. 3 `(2) Conditions imposed under this division are the standard 4 accreditation conditions. 5 `(3) The standard accreditation conditions apply as well as any 6 special conditions stated in the accreditation. 7 `(4) If a standard accreditation condition conflicts with any of the 8 special conditions, the standard accreditation condition 9 prevails to the extent of the inconsistency. 10 `(5) As well as imposing a condition, section 135BI18 also imposes 11 a penalty for not complying with the conditions. 12 `135AV Obligation to give information when GEC created 13 `If an accredited generator creates a GEC, the generator must 14 immediately give the regulator the following information-- 15 (a) information relevant to the calculation of the eligible 16 gas-fired electricity for which the GEC was created; 17 (b) information that shows the accredited power station's 18 baseline has been exceeded. 19 `135AW Obligation to keep documents used for GEC creation 20 `An accredited generator must, unless the generator has a 21 reasonable excuse, keep all documents the generator uses to 22 work out eligible gas-fired electricity for the creation of a 23 GEC by the generator for 5 years after the creation of the 24 GEC. 25 18 Sections 135BI (Accreditation conditions must not be contravened)

36 Electricity Amendment Bill 2004 `135AX Compliance with directions by regulator 1 `If an accredited generator is given a GEC surrender direction 2 or a direction under section 135CF or 135JC(2),19 the 3 generator must comply with the direction. 4 `135AY Condition not to improperly create GECs 5 `An accredited generator must comply with section 135DO.20 6 `135AZ Notice to regulator of particular matters 7 `An accredited generator must give the regulator notice within 8 20 business days after-- 9 (a) a change in the economic operator of the power station; 10 or 11 (b) a change to the accredited power station that may affect 12 the generation of electricity or the working out of 13 eligible gas-fired electricity generated by the power 14 station; or 15 (c) the happening of an arrangement or circumstance that 16 may, under part 3, division 5, subdivision 4,21 change the 17 baseline for the power station's baseline customers; or 18 (d) a change in a factor used to work out eligible gas-fired 19 electricity generated by the power station. 20 `135B Periodic GEC reviews 21 `(1) An accredited generator must, as soon as practicable after the 22 end of each of the following periods during which the 23 accreditation is in force, review (a GEC review) the accuracy 24 of information the accredited generator has used to work out 25 eligible gas-fired electricity generated by the power station in 26 the year to date-- 27 19 Sections 135CF (Directions for working out eligible gas-fired electricity) and 135JC (Decided method must be applied) 20 Section 135DO (Offence of improper creation of GEC) 21 Part 3, division 5, subdivision 4 (Changes to baseline)

37 Electricity Amendment Bill 2004 (a) the period notified by the regulator to the accredited 1 generator; 2 (b) if no period has been notified--each quarter. 3 `(2) In carrying out a GEC review, the accredited generator must 4 comply with the eligible electricity guidelines.22 5 `135BA Obligation to take action because of improper 6 creation of GECs or GEC review 7 `(1) This section applies if-- 8 (a) an accredited generator discovers the generator has not 9 complied with section 135DO;23 or 10 (b) the result of a GEC review is that the information an 11 accredited generator has used to work out eligible 12 gas-fired electricity is not accurate. 13 `(2) The generator must take appropriate action-- 14 (a) to correct the working out of the relevant eligible 15 gas-fired electricity; and 16 (b) to ensure the generator does not create more than 1 GEC 17 for each MWh of eligible gas-fired electricity; and 18 (c) if the generator did not comply with section 135DO 19 before carrying out the review--to correct the effect of 20 the failure to comply. 21 22 Examples of appropriate action-- 23 · when the accredited generator next creates GECs, the generator 24 creates less GECs than the generator is entitled to create, to ensure 25 the entitlement is not exceeded at that time 26 · acquiring enough GECs (either by creation or transfer) to surrender 27 the number of GECs equivalent to the number of GECS the 28 accredited generator created improperly and that have since been 29 transferred to others 22 See section 135CK (Guidelines). 23 Section 135DO (Offence of improper creation of GEC) See also section 135DP (Defence to proceeding for improper creation of GEC).

38 Electricity Amendment Bill 2004 `(3) After taking the action, the accredited generator must give the 1 regulator a notice describing the action taken and the reasons 2 for taking it. 3 `135BB Obligation to keep GEC review documents 4 `An accredited generator must, unless the generator has a 5 reasonable excuse, keep the following documents in relation 6 to a GEC review for 5 years after the end of the year in which 7 the review was carried out-- 8 (a) documents the generator used to make the GEC review; 9 (b) if, because of the review, action was taken under 10 section 135BA--documents showing what the action 11 was and the reasons for taking it. 12 `135BC Access to power station 13 `An accredited generator must, on the giving of reasonable 14 notice, allow, or make arrangements that allow, safe access to 15 the accredited power station by an approved auditor, an 16 inspection officer or a person authorised by the regulator to-- 17 (a) obtain information relevant to the accreditation; or 18 (b) monitor compliance with this chapter or the conditions 19 of the accreditation. 20 `135BD Obligation to provide information for annual loss factor 21 `An accredited generator must, as soon as practicable after 22 receiving a request from the regulator, give the regulator 23 information the generator has that the regulator reasonably 24 requires to allow the regulator to decide the accredited power 25 station's annual loss factor. 26 `135BE Annual fee and return 27 `(1) An accredited generator must, on or before the relevant day in 28 each year during which the accreditation is in force 29 (the current year), give the regulator the following for each 30 power station for which the generator is accredited-- 31

39 Electricity Amendment Bill 2004 (a) an annual electricity generation return for the last year, 1 in the approved form; 2 (b) the annual fee for the current year, as prescribed under a 3 regulation. 4 `(2) In this section-- 5 relevant day means-- 6 (a) generally--the last business day in April; or 7 (b) if the regulator has, by notice to all accredited 8 generators given before the day mentioned in 9 paragraph (a), fixed a later day--the later day. 10 `135BF Obligation to keep documents used to make annual 11 return 12 `An accredited generator must, unless the generator has a 13 reasonable excuse, keep all documents the generator uses to 14 make each electricity generation return given under 15 section 135BE for 5 years after the giving of the return. 16 `135BG Conditions imposed under a regulation 17 `An accredited generator must comply with any conditions of 18 accreditation prescribed under a regulation. 19 `135BH Amounts payable under chapter or accreditation 20 `An accredited generator must pay the regulator all amounts 21 that this chapter or the accreditation requires the accredited 22 generator to pay the regulator. 23 `135BI Accreditation conditions must not be contravened 24 `An accredited generator must comply with the conditions of 25 the accreditation. 26 Maximum penalty--500 penalty units. 27

40 Electricity Amendment Bill 2004 `Division 4 Dealings with accreditation 1 `Subdivision 1 Transfers 2 `135BJ Transfer only by application 3 `(1) An accreditation may be transferred only under this 4 subdivision. 5 `(2) A purported transfer of an accreditation not made under this 6 subdivision is of no effect. 7 `135BK Applying for transfer 8 `(1) An accredited generator may apply to the regulator to transfer 9 the accreditation. 10 `(2) The application must-- 11 (a) be in the approved form; and 12 (b) be made by the accredited generator and the proposed 13 transferee; and 14 (c) state reasons for the proposed transfer; and 15 (d) if the accredited generator is not the economic operator 16 of the accredited power station--be accompanied by a 17 written nomination of the proposed transferee by the 18 economic operator; and 19 (e) if the proposed transferee is, or proposes to become, the 20 economic operator of the accredited power station--be 21 accompanied by evidence that the transferee is, or will 22 become, the economic operator; and 23 (f) be accompanied by the fee prescribed under a 24 regulation. 25 `135BL Deciding transfer application 26 `(1) The regulator must decide whether to make or refuse to make 27 the transfer. 28

41 Electricity Amendment Bill 2004 `(2) If the regulator decides to refuse to make the transfer, the 1 regulator must, as soon as practicable, give the applicants an 2 information notice about the decision. 3 `(3) The regulator may impose conditions on giving the approval. 4 `Subdivision 2 Surrenders 5 `135BM Applying to surrender 6 `(1) An accredited generator may apply to surrender the 7 accreditation. 8 `(2) The application must-- 9 (a) be in the approved form; and 10 (b) state reasons for the proposed surrender; and 11 (c) be accompanied by the fee prescribed under a 12 regulation. 13 `135BN Deciding surrender application 14 `(1) The regulator must decide whether to approve or refuse the 15 surrender. 16 `(2) The regulator may impose conditions on giving the approval. 17 18 Example of a possible condition-- 19 a requirement that the regulator be given a final electricity generation 20 return `(3) If the regulator decides to refuse the surrender or impose a 21 condition on the surrender, the regulator must, as soon as 22 practicable, give the applicant an information notice about the 23 decision. 24 `(4) Subsection (3) does not apply for a condition that is the same, 25 or is to the same effect, as a condition agreed to or requested 26 by the applicant. 27

42 Electricity Amendment Bill 2004 `135BO Effect of surrender 1 `(1) This section applies if the surrender of an accreditation is 2 approved and all conditions of the approval have been 3 complied with. 4 `(2) The accreditation ceases to have effect. 5 `(3) If, immediately before this section applies, the former 6 accredited generator was the registered owner of a GEC, the 7 former accredited generator is taken to be registered under 8 part 6 as a scheme participant immediately after this section 9 applies. 10 `Division 5 Amendment, cancellation and 11 suspension of accreditation 12 `Subdivision 1 Amendment by application 13 `135BP Applying for amendment 14 `(1) An accredited generator may apply to the regulator to amend 15 the accreditation in a stated way, other than to-- 16 (a) amend a condition imposed under division 3; or 17 (b) add another power station to the accreditation. 18 `(2) The application must-- 19 (a) be in the approved form; and 20 (b) state reasons for the proposed amendment; and 21 (c) be accompanied by the fee prescribed under a 22 regulation. 23 `135BQ Deciding application 24 `(1) The regulator must decide to make or refuse to make the 25 amendment. 26 `(2) If the decision is to make the amendment, the regulator must, 27 as soon as practicable, make the amendment to the 28 accreditation and give the applicant notice of the decision. 29

43 Electricity Amendment Bill 2004 `(3) If the decision is to refuse to make the amendment, the 1 regulator, must, as soon as practicable, give the applicant an 2 information notice about the decision. 3 `Subdivision 2 Amendment by regulator without 4 proposed action notice 5 `135BR Amendments for which proposed action notice not 6 required 7 `The regulator may amend an accreditation at any time by 8 giving the accredited generator notice of the amendment and 9 recording particulars of the amendment in the register if the 10 amendment-- 11 (a) is to correct a clerical or formal error; or 12 (b) does not significantly affect the interests of the 13 accredited generator or anyone else and the accredited 14 generator has, in writing, agreed to the amendment. 15 `Subdivision 3 Other amendments, cancellation 16 and suspension 17 `135BS Partial suspension for non-payment of annual fee 18 `(1) This section applies if an accredited generator does not pay an 19 annual fee as required under section 135BE. 20 `(2) While the annual fee remains unpaid, the accreditation is 21 suspended. 22 `(3) If the annual fee is paid, the suspension ends. 23 `(4) The suspension is a complete suspension of the right to create 24 GECs. 25 `(5) Also, until the suspension ends, the accredited generator can 26 not-- 27 (a) transfer any GECs; or 28 (b) accept the transfer of any GECs. 29

44 Electricity Amendment Bill 2004 `(6) The suspension does not-- 1 (a) affect the accredited generator's ownership of any GEC 2 the generator owned immediately before the 3 suspension;24 or 4 (b) prevent the accredited generator from making a 5 surrender application for a GEC mentioned in 6 paragraph (a). 7 `(7) This section does not limit the regulator's powers under 8 section 135BT. 9 `135BT Regulator's power to amend, cancel or suspend 10 `(1) The regulator may, if the conditions under section 135BU 11 have been met, amend or cancel an accreditation or suspend 12 an accredited generator's right, under section 135AT(1)(a),25 13 to create GECs. 14 `(2) The suspension must be one of the following types-- 15 (a) a suspension that has the effect that, until it ends, the 16 accredited generator can not create any GECs for 17 eligible gas-fired electricity generated by the accredited 18 power station during the period of the suspension (a 19 complete suspension of the right to create GECs); 20 (b) a suspension that does not affect the right to, after the 21 suspension ends, create GECs for eligible gas-fired 22 electricity generated by the accredited power station 23 during the period of the suspension, subject to section 24 135DG (a limited suspension of the right to create 25 GECs).26 26 `(3) A complete or limited suspension of the right to create GECs 27 does not-- 28 24 See sections 135DN (Ownership of GEC on registration) and 135DW (Ownership of GEC on transfer). 25 Section 135AT (Right to create, mortgage and transfer GECs) 26 Section 135DG (Time limitation on creation right)

45 Electricity Amendment Bill 2004 (a) affect the accredited generator's ownership of any GEC 1 the generator owned immediately before the 2 suspension;27 or 3 (b) prevent the accredited generator from-- 4 (i) making a surrender application for a GEC 5 mentioned in paragraph (a); or 6 (ii) transferring a GEC mentioned in paragraph (a); or 7 (iii) accepting a transfer of a GEC. 8 `(4) A complete or limited suspension is subject to any suspension 9 under section 135BS. 10 `135BU Conditions for other amendments and for 11 cancellation or suspension by regulator 12 `(1) For section 135BT(1), the conditions are that-- 13 (a) the regulator considers the amendment, cancellation or 14 suspension necessary or desirable; and 15 (b) an event mentioned in subsection (2) has happened; and 16 (c) the procedure under sections 135BV to 135BY is 17 followed. 18 `(2) For subsection (1)(b), an event is that the accredited 19 generator-- 20 (a) obtained the accreditation because of a materially false 21 or misleading declaration or representation, made orally 22 or in writing; or 23 (b) has not complied with a provision of this chapter or a 24 condition of the accreditation; or 25 (c) has not complied with a provision of the Trade Practices 26 Act 1974 (Cwlth), part IV,28 in relation to the 27 accreditation or the creation or transfer of GECs; or 28 (d) has created GECs under the accreditation and-- 29 27 See sections 135DN (Ownership of GEC on registration) and 135DW (Ownership of GEC on transfer). 28 Trade Practices Act 1974 (Cwlth), part IV (Restrictive trade practices)

46 Electricity Amendment Bill 2004 (i) the generator is not the economic operator of the 1 accredited power station; and 2 (ii) either-- 3 (A) the generator has not been nominated by the 4 economic operator; or 5 (B) any nomination of the generator by the 6 economic operator has been withdrawn.29 7 `135BV Notice of proposed action 8 `(1) The regulator must give the accredited generator notice 9 stating each of the following-- 10 (a) the action (the proposed action) the regulator proposes 11 to take under this division; 12 (b) the grounds for the proposed action; 13 (c) the facts and circumstances that are the basis for the 14 grounds; 15 (d) if the proposed action is to amend--the proposed 16 amendment; 17 (e) if the proposed action is to suspend-- 18 (i) the proposed suspension period; and 19 (ii) whether the proposed suspension is a complete or 20 limited suspension of the right to create GECs; 21 (f) that the accredited generator may make, within a stated 22 period, written submissions to show why the proposed 23 action should not be taken. 24 `(2) The stated period must end at least 20 business days after the 25 notice is given. 26 `135BW Considering submissions 27 `(1) The regulator must consider any written submission made 28 under section 135BV(1)(f) by the accredited generator within 29 the period stated in the notice. 30 29 See section 135AS (Withdrawal of nomination to be accredited generator).

47 Electricity Amendment Bill 2004 `(2) If the regulator at any time decides not to take the proposed 1 action, the regulator must, as soon as practicable, give the 2 accredited generator notice of the decision. 3 `135BX Decision on proposed action 4 `(1) If, after complying with section 135BW, the regulator still 5 believes a ground exists to take the proposed action, the 6 regulator may decide to-- 7 (a) if the proposed action was to amend--make the 8 amendment; or 9 (b) if the proposed action was to suspend for a stated 10 period--suspend for no longer than the proposed 11 suspension period; or 12 (c) if the proposed action was to cancel-- 13 (i) cancel the accreditation; or 14 (ii) suspend it for a stated period. 15 `(2) If the regulator decides to suspend the accreditation under 16 subsection (1)(c)(ii), the regulator must decide whether it is a 17 complete or limited suspension. 18 `135BY Notice and taking of effect of proposed action decision 19 `(1) The regulator must, as soon as practicable after making a 20 decision under section 135BX, give the accredited generator 21 an information notice about the decision. 22 `(2) The decision takes effect on the later of the following-- 23 (a) the day the information notice is given; 24 (b) a later day of effect stated in the notice. 25 `(3) However, if the decision was to amend, cancel or suspend 26 because of a conviction, the amendment, cancellation or 27 suspension-- 28 (a) does not take effect until-- 29 (i) the period to appeal against the conviction ends; 30 and 31

48 Electricity Amendment Bill 2004 (ii) if an appeal is made against the conviction--the 1 appeal is finally decided or is otherwise ended; and 2 (b) has no effect if the conviction is quashed on appeal. 3 `135BZ Effect of cancellation 4 `(1) This section applies if an accreditation is cancelled. 5 `(2) The accreditation ceases to have effect. 6 `(3) If, immediately before the cancellation, the former accredited 7 generator was the registered owner of a GEC, the former 8 accredited generator is taken to be registered under part 6 as a 9 scheme participant immediately after the cancellation. 10 `135C Final return on cancellation 11 `If the accreditation is cancelled, the former accredited 12 generator must, as soon as practicable, give the regulator an 13 annual electricity generation return under section 135BE(1)(a) 14 for the period from the end of the last year to the day the 15 cancellation took effect. 16 Maximum penalty--100 penalty units. 17 `Part 3 Eligible gasfired electricity 18 `Division 1 Working out eligible gas-fired 19 electricity 20 `Subdivision 1 Preliminary 21 `135CA Operation of div 1 22 `(1) This part provides for what is the eligible gas-fired electricity 23 generated by an accredited power station. 24

49 Electricity Amendment Bill 2004 `(2) If the power station has more than 1 baseline customer, the 1 eligible gas-fired electricity must be worked out separately for 2 each of the customers who have a baseline other than 0. 3 `(3) For applying subsection (2), a reference in this division to the 4 power station is taken to be a reference to the power station to 5 the extent it supplies gas-fired electricity to each of its 6 customers. 7 `Subdivision 2 Power stations with nameplate 8 capacity of more than 500 kW 9 `135CB Application of sdiv 2 10 `This subdivision applies if the power station's nameplate 11 capacity is more than 500 kW. 12 `135CC General method 13 `Subject to sections 135CD to 135CF, the eligible gas-fired 14 electricity is worked out using the following formula 15 (the general method)-- 16 EE = (SO Gen × %EF x QUF x LF) BL where-- 17 EE is the eligible gas-fired electricity, measured in MWh. 18 SO Gen is electricity sent out from the power station, less 19 electricity imported into the power station, measured in MWh. 20 %EF is the proportion of electricity generated from an 21 eligible fuel. 22 QUF is the power station's annual QUF. 23 LF is the power station's annual loss factor. 24 BL is the baseline for the baseline customer of the power 25 station. 26

50 Electricity Amendment Bill 2004 `135CD Alternate methods for direct supply arrangement 1 `(1) This section applies if a power station sends out electricity to 2 someone else under a direct supply arrangement. 3 `(2) The accredited generator for the power station, or an applicant 4 for the accreditation, may apply in writing to the regulator for 5 approval to use direct method A or direct method B to work 6 out the eligible gas-fired electricity to the extent it is sent out 7 under the arrangement. 8 `(3) The regulator must decide-- 9 (a) whether to grant or refuse the approval; and 10 (b) if the regulator decides to grant the approval--whether 11 direct method A or direct method B must be used for the 12 working out. 13 `(4) If the regulator grants the approval, the direct method as 14 decided by the regulator must be used to work out the eligible 15 gas-fired electricity to the extent it is sent out under the direct 16 supply arrangement. 17 `(5) If the regulator decides to refuse to grant the approval, the 18 regulator must, as soon as practicable, give the applicant an 19 information notice about the decision. 20 `(6) In this section-- 21 direct method A means using the formula-- 22 EE = (ED × %EF x QUF) BL direct method B means using the formula-- 23 EE = (ED × %EF x QUF x LF) BL EE means the eligible gas-fired electricity, measured in 24 MWh. 25 ED means the electricity delivered to the person mentioned in 26 subsection (1), less electricity imported into the power station 27 multiplied by any relevant annual loss factor decided by the 28 regulator, measured in MWh. 29 %EF means the proportion of electricity generated from an 30 eligible fuel. 31

51 Electricity Amendment Bill 2004 QUF means the power station's annual QUF. 1 BL means the baseline for the baseline customer of the power 2 station. 3 LF means any annual loss factor the regulator decides for the 4 power station. 5 `135CE Adjustment for general method if a direct method used 6 `(1) This section applies if-- 7 (a) the regulator has approved the use of a direct method for 8 a direct supply arrangement; and 9 (b) electricity is sent out from the power station other than 10 under the arrangement. 11 `(2) The eligible gas-fired electricity sent out from the power 12 station other than under the arrangement must be worked out 13 under the general method. 14 `(3) However, in applying the general method, all amounts of 15 electricity used in the application of the direct method must be 16 deducted from the electricity sent out from the power station. 17 `135CF Directions for working out eligible gas-fired electricity 18 `(1) The regulator may give an accredited generator written 19 directions about how to work out any factor used to work out 20 the eligible gas-fired electricity under this subdivision. 21 `(2) In working out the factor, the direction must be complied 22 with.30 23 `(3) The directions must be accompanied by or include an 24 information notice about the decision to give the directions. 25 `(4) Subsection (3) does not apply if the accredited generator has 26 agreed to the working out as required under the direction. 27 `Subdivision 3 Power stations with nameplate 28 capacity of 500 kW or less 29 30 See also section 135AX (Compliance with directions by regulator).

52 Electricity Amendment Bill 2004 `135CG Application of sdiv 3 1 `This subdivision applies if the power station's nameplate 2 capacity is 500 kW or less. 3 `135CH Power to prescribe method 4 `If the baseline for all baseline customers of the power station 5 is 0, a regulation may prescribe what is the eligible gas-fired 6 electricity. 7 `135CI Obtaining approval to use method for working out 8 `(1) This section applies only if the eligible gas-fired electricity is 9 not prescribed. 10 `(2) The accredited generator for the power station, or an applicant 11 for the accreditation, may apply in writing to the regulator for 12 approval to use a proposed method to work out the eligible 13 gas-fired electricity. 14 `(3) The proposed method may involve-- 15 (a) the use of averages or estimates; or 16 (b) the application of annual or baseline loss factors or 17 QUFs for the power station. 18 `(4) The regulator must decide whether to grant or refuse the 19 approval. 20 `(5) The regulator may grant the approval only if satisfied the 21 proposed method is generally consistent with the approach of 22 the general method or, to the extent the proposed method 23 relates to a direct supply arrangement, a direct method. 24 `(6) If the regulator grants the approval the proposed method must 25 be used to work out the eligible gas-fired electricity. 26 `(7) If the regulator decides to refuse to grant the approval, the 27 regulator must, as soon as practicable, give the applicant an 28 information notice about the decision. 29

53 Electricity Amendment Bill 2004 `135CJ Methods that otherwise apply 1 `If the eligible gas-fired electricity is not prescribed and no 2 method is approved under section 135CI for the power station, 3 the eligible gas-fired electricity is worked out under 4 subdivision 2 as if the power station's nameplate capacity is 5 more than 500 kW. 6 `Division 2 Eligible electricity guidelines 7 `135CK Guidelines 8 `The regulator may issue guidelines (eligible electricity 9 guidelines) about the data that must be used under division 1 10 to work out eligible gas-fired electricity.31 11 `135CL Publication of guidelines 12 `(1) The regulator must give each accredited generator to whom 13 the eligible electricity guidelines apply a copy of the 14 guidelines. 15 `(2) The guidelines do not take effect for an accredited generator 16 to whom they apply until the later of the following days-- 17 (a) their day of effect, as stated in the guidelines; 18 (b) the day the accredited generator's accreditation takes 19 effect. 20 `Division 3 Queensland usage factors 21 `135CM Annual QUFs 22 `(1) Subject to section 135CP, the regulator must, for each 23 financial year during which a power station is accredited, fix 24 an estimated proportion of electricity sent out from the power 25 31 For the effect of the guidelines for the generators, see sections 135DP (Defence to proceeding for improper creation of GEC) and 135EK(2) (Decision on proposed action).

54 Electricity Amendment Bill 2004 station that will be used during that year for the State's 1 electricity load and not the electricity load of any other State. 2 `(2) The estimated proportion is the power station's annual QUF. 3 `(3) The annual QUF must be fixed by gazette notice. 4 `(4) Until the notice is gazetted, the last annual QUF fixed for the 5 power station continues to apply. 6 `135CN Baseline QUFs 7 `(1) Subject to section 135CP, the regulator must, for each 8 accredited power station, fix the proportion of electricity sent 9 out from the power station that was, during the baseline year, 10 used for the State's electricity load and not the electricity load 11 of any other State. 12 `(2) However, subsection (1) does not apply if, under 13 section 135DA,32 the power station's baseline is 0 for all of its 14 baseline customers. 15 `(3) The proportion is the power station's baseline QUF. 16 `(4) The baseline QUF must be fixed by gazette notice. 17 `(5) In fixing the baseline QUF, the regulator must consider 18 relevant data for the baseline year for the power station. 19 `135CO Transmission zones 20 `(1) A regulation may, for the purpose of fixing annual or baseline 21 QUFs, prescribe areas based on electricity grid areas in which 22 incoming and outgoing electricity is predominately 23 transported by high voltage transmission lines that are heavily 24 loaded compared with their capacity. 25 `(2) An area prescribed under subsection (1) is called a 26 transmission zone. 27 `(3) The area may be all of any State or include part of any State. 28 32 Section 135DA (Baseline for other customers)

55 Electricity Amendment Bill 2004 `135CP Power stations connected to national grid within 1 same transmission zone 2 `(1) The same annual QUF must be fixed for each power station 3 that-- 4 (a) supplies electricity into the same transmission grid or 5 supply network within the same transmission zone; and 6 (b) is directly or indirectly connected to the national grid. 7 `(2) The same baseline QUF must be fixed for each power station 8 that-- 9 (a) has the same baseline year; and 10 (b) supplies electricity into the same transmission grid or 11 supply network within the same transmission zone; and 12 (c) is directly or indirectly connected to the national grid. 13 `(3) In fixing the annual and baseline QUF, the regulator must 14 consider each of the following matters-- 15 (a) the electricity generated within the transmission zone; 16 (b) the electricity imported into the transmission zone; 17 (c) electricity sent out of the transmission zone and the 18 relevant annual or baseline QUFs of the transmission 19 zones to which it is initially sent out; 20 (d) the electricity load and losses within the transmission 21 zone; 22 (e) whether end users in the transmission zone are located 23 in the State or another State. 24 `(4) In considering the matters for fixing the annual QUF, the 25 regulator must use estimates or forecasts of relevant data for 26 the next financial year. 27 `(5) However, the regulator may use data for the previous financial 28 year if-- 29 (a) the estimates or forecasts are not available to the 30 regulator; or 31 (b) the regulator considers the estimates or forecasts are 32 inconsistent with the basis on which the transmission 33 zone was prescribed. 34

56 Electricity Amendment Bill 2004 `135CQ QUFs may be differential as to time 1 `In fixing an annual or baseline QUF, the regulator may fix a 2 different proportion for different periods. 3 `Division 4 Loss factors 4 `135CR Annual loss factor 5 `(1) Subject to section 135AO(2), the regulator must, for each 33 6 financial year during which a power station is accredited, fix a 7 factor that represents the power station's estimated 8 contribution during that year to electricity losses in the 9 transmission grid or supply network through which it supplies 10 electricity. 11 `(2) The factor is the power station's annual loss factor. 12 `(3) The annual loss factor for a particular financial year-- 13 (a) must be fixed by an information notice given to the 14 accredited generator; and 15 (b) takes effect on the day of effect stated in the notice, or if 16 it states no day of effect, the day the notice is given. 17 `(4) Until the annual loss factor for a particular financial year takes 18 effect, the last annual loss factor fixed for the power station 19 continues to apply for that year. 20 `135CS Baseline loss factor 21 `(1) The regulator must, for each accredited power station, fix a 22 factor that represents the power station's contribution, during 23 its baseline year, to electricity losses in the transmission grid 24 or supply network through which it supplies electricity. 25 `(2) However, subsection (1) does not apply if-- 26 (a) under section 135DA,34 the baseline is 0; or 27 33 Section 135AO (Provisions for deciding ancillary matters for power station) 34 Section 135DA (Baseline for other customers)

57 Electricity Amendment Bill 2004 (b) under section 135AO(2),35 the regulator need not work 1 out the baseline loss factor. 2 `(3) The factor is the power station's baseline loss factor. 3 `(4) The baseline loss factor -- 4 (a) must be fixed by an information notice given to the 5 accredited generator; and 6 (b) takes effect on the day of effect stated in the notice, or if 7 it states no day of effect, the day the notice is given. 8 `135CT Provisions for working out loss factors 9 `(1) If the overall effect of a power station's supply to a 10 transmission grid or supply network is to reduce electricity 11 losses in the grid, its annual or baseline loss factor may be 12 fixed as 1 or more than 1. 13 `(2) In fixing an annual or baseline loss factor for a power station 14 the regulator may apply a relevant loss factor decided under 15 the Market Code. 16 `(3) If a power station supplies electricity through a transmission 17 grid and a supply network, its annual or baseline loss factor 18 may consist of different components for each grid or network. 19 `135CU Publication of loss factors 20 `If the regulator fixes a loss factor under this division, the 21 regulator must, as soon as practicable, publish the loss factor 22 by gazette notice. 23 35 Section 135AO (Provisions for deciding ancillary matters for power station)

58 Electricity Amendment Bill 2004 `Division 5 Baselines for baseline customers 1 `Subdivision 1 Introduction 2 `135CV What is a power station's baseline for a baseline 3 customer 4 `(1) An accredited power station's baseline, for a baseline 5 customer of the power station, is the figure as provided for 6 under this division, that, as at 24 May 2000, represented the 7 power station's annual generation of electricity from eligible 8 fuels delivered to the customer. 9 `(2) The figure must be in MWh. 10 `135CW Purpose of baseline 11 `The purpose of the baseline is to ensure only new or 12 additional gas-fired electricity generated after 24 May 2000 13 can be used to create GECs. 14 `Subdivision 2 Baseline for existing baseline 15 customers 16 `135CX Application of sdiv 2 17 `(1) This subdivision applies for working out the baseline for a 18 baseline customer of an accredited power station, or of a 19 power station the subject of an application for accreditation, to 20 whom the power station supplies electricity generated from 21 eligible fuels under an arrangement that was in force on 22 24 May 2000. 23 `(2) However, the baseline worked out under this subdivision is 24 subject to subdivision 4.36 25 36 Subdivision 4 (Changes to baseline)

59 Electricity Amendment Bill 2004 `135CY General method for working out baseline 1 `(1) This section applies subject to section 135CZ. 2 `(2) The regulator must work out an amount (the sent out amount) 3 that fairly represents the amount of electricity the power 4 station generated from eligible fuels and sent the customer 5 during the following period-- 6 (a) generally--the 19992000 financial year; 7 (b) if the power station was commissioned or first started to 8 generate electricity from eligible fuels during the 9 19992000 financial year--its first 12 months of 10 commercial operation. 11 `(3) However, if the regulator considers the period does not 12 represent the power station's typical annual generation for the 13 customer as at 24 May 2000, the regulator may fix the sent out 14 amount by-- 15 (a) reference to another 12 month period that the regulator 16 considers is more representative of its typical annual 17 generation as at 24 May 2000; or 18 (b) extrapolating the average monthly generation from a 19 part of the period that the regulator considers is more 20 representative of its typical annual generation as at 21 24 May 2000. 22 `(4) The baseline for the customer is worked out using the 23 following formula-- 24 B B BL = SO Gen × %EF × QUF × LF where-- 25 BL is the baseline for the baseline customer. 26 SO Gen is the electricity sent out from the power station, less 27 electricity imported into the power station, measured in MWh 28 in the baseline year. 29 % EF is the proportion of electricity generated from an 30 eligible fuel in the baseline year. 31 QUFB is the power station's baseline QUF. 32 LFB is the power station's baseline loss factor. 33

60 Electricity Amendment Bill 2004 `(5) For subsection (2)(b), a power station was commissioned-- 1 (a) when, under the relevant contract to build the power 2 station, it reached a stage by which the building of the 3 station was, in a practical sense, complete; or 4 (b) if there was no stage as mentioned in 5 paragraph (a)--4 months after the power station first 6 sent out electricity. 7 `135CZ Alternate method for direct supply arrangement 8 `(1) This section applies if-- 9 (a) the supply to the customer is under a direct supply 10 arrangement; and 11 (b) the accredited generator for the power station, or an 12 applicant for the accreditation, has agreed with the 13 regulator to work out the customer's baseline on the 14 basis of electricity delivered to the customer. 15 `(2) The regulator must work out an amount (the delivered 16 amount) that fairly represents the amount of electricity the 17 power station generated from eligible fuels and delivered to 18 the customer during the period mentioned in 19 section 135CY(2). 20 `(3) However, if the regulator considers the period does not 21 represent the power station's typical annual delivered amount 22 for the customer as at 24 May 2000, the regulator may fix the 23 delivered amount by-- 24 (a) reference to another 12 month period that the regulator 25 considers is more representative of its typical annual 26 delivery as at 24 May 2000; or 27 (b) extrapolating the average monthly generation from a 28 part of the period that the regulator considers is more 29 representative of its typical annual delivery as at 30 24 May 2000. 31 `(4) The baseline for the customer is worked out using the 32 following formula-- 33

61 Electricity Amendment Bill 2004 (a) if the regulator has fixed a baseline loss factor for the 1 power station-- 2 B B BL = ED × %EF × QUF × LF (b) if the regulator has not fixed a baseline loss factor for 3 the power station-- 4 · B BL = ED × %EF × QUF `(5) In this section-- 5 BL means the baseline for the baseline customer. 6 ED means the electricity delivered to the customer, less 7 electricity imported into the power station multiplied by any 8 relevant baseline loss factor decided by the regulator, 9 measured in MWh, in the baseline year. 10 % EF means the proportion of electricity generated from an 11 eligible fuel in the baseline year. 12 LFB means the power station's baseline loss factor. 13 QUFB means the power station's baseline QUF. 14 `135D Information notice about decision 15 `The regulator must give the customer an information notice 16 about the baseline worked out under this subdivision. 17 `Subdivision 3 Baseline for other baseline 18 customers 19 `135DA Baseline for other customers 20 `(1) This section applies if an accredited power station, or a power 21 station the subject of an application for accreditation, sends 22 electricity generated from eligible fuels to a person who was 23 not a baseline customer of the power station on 24 May 2000. 24 `(2) Subject to subdivision 4, the baseline for the customer is 0. 25

62 Electricity Amendment Bill 2004 `Subdivision 4 Changes to baseline 1 `135DB Cessation of supply 2 `(1) If a baseline customer of an accredited power station ceases to 3 be a customer of the station, the power station ceases to have a 4 baseline for the customer. 5 `(2) The power station's baselines for its other baseline customers 6 do not change. 7 `135DC Adjustment for customer transfer to another 8 accredited power station 9 `(1) This section applies if-- 10 (a) a baseline customer ceases to be a customer of an 11 accredited power station (the first power station); and 12 (b) within 12 months of the cessation, the customer 13 becomes a customer of another accredited power station 14 under a direct supply arrangement that provides for the 15 supply of electricity generated from eligible fuels 16 (the second station). 17 `(2) The second station has a separate baseline for the customer. 18 `(3) The amount of the separate baseline is the amount of the first 19 station's baseline for the customer immediately before the 20 customer ceased to be a customer of the first station. 21 `135DD Adjustment for other customer transfers 22 `If-- 23 (a) a baseline customer (the former customer) ceases to be 24 a customer of an accredited power station; and 25 (b) within 12 months of the cessation, the customer 26 becomes a customer of another customer (the other 27 customer) of the power station, other than NEMMCO; 28 the baseline for the other customer increases by the amount of 29 the power station's baseline for the former customer 30 immediately before the former customer ceased to be a 31 customer of the power station. 32

63 Electricity Amendment Bill 2004 `Part 4 GECS 1 `Division 1 Creation and registration of GECs 2 `135DE Electricity required to create GEC 3 `A GEC may be created for each whole MWh of eligible 4 gas-fired electricity, other than auxiliary load for a power 5 station.37 6 `135DF Prohibition on creation if certificate created under 7 corresponding law 8 `Despite section 135DE, a GEC can not be created for eligible 9 gas-fired electricity if any of the following certificates has 10 been created in relation to the generation of the electricity-- 11 (a) an abatement certificate under the Electricity Supply Act 12 1995 (NSW), part 8A;38 13 (b) a certificate (however called) under a law of the 14 Commonwealth or another State the purposes of which 15 include the promotion of the reduction of greenhouse 16 gases. 17 `135DG Time limitation on creation right 18 `A GEC may be created only if the month in which the 19 electricity was generated was no more than 12 months before 20 the month in which the GEC is created. 21 `135DH How a GEC is created 22 `(1) A GEC is created-- 23 (a) either-- 24 37 See also section 135AT (Right to create, mortgage and transfer GECs). 38 Electricity Supply Act 1995 (NSW), part 8A (Reduction of greenhouse gas emissions)

64 Electricity Amendment Bill 2004 (i) by paying the regulator the fee prescribed under a 1 regulation to decide whether the GEC was validly 2 created; or 3 (ii) if, under section 135DL, the regulator decides to 4 make the decision required under section 135DJ, 5 without payment of the prescribed fee;39 and 6 (b) by electronically noting in the GEC register, in the way 7 approved by the regulator, the creation of the GEC. 8 `(2) The approved way must require the giving of the following 9 information-- 10 (a) an accreditation code for the accredited generator and 11 power station; 12 (b) the amount of eligible gas-fired electricity generated for 13 which the GEC was created; 14 (c) the period within which the eligible gas-fired electricity 15 was generated. 16 `135DI When GEC takes effect 17 `A GEC takes effect and continues to be in force only if it has 18 been registered by the regulator. 19 `135DJ Deciding on validity and registration 20 `(1) The regulator must, as soon as practicable after a GEC is 21 created, decide whether it was validly created. 22 `(2) In deciding whether it is practicable for the regulator to make 23 the decision, regard must be had to any need to seek, under 24 section 135IZ,40 information and whether any information 25 sought under the section has been given. 26 `(3) In making the decision the regulator may have regard to any 27 relevant eligible electricity guidelines. 28 39 Sections 135DL (Power to register GEC without prescribed fee) and 135DJ (Deciding on validity and registration) 40 Section 135IZ (Additional information or inspection may be required)

65 Electricity Amendment Bill 2004 `(4) If the regulator decides the GEC was validly created, the 1 regulator must, as soon as practicable-- 2 (a) register the GEC in the GEC register by complying with 3 section 135JG;41 and 4 (b) give the accredited generator who created it a notice 5 stating-- 6 (i) that the GEC has been registered; and 7 (ii) the information about the GEC that, under 8 section 135JG, the regulator must record in the 9 GEC register. 10 `(5) If the regulator decides the GEC was not validly created, the 11 regulator must, as soon as practicable give the accredited 12 generator an information notice about the decision.42 13 `135DK Automatic registration 14 `(1) The regulator may establish a system under which the 15 following are done or made automatically by electronic 16 means-- 17 (a) the decision under section 135DJ about whether a GEC 18 was validly created; 19 (b) if the decision is that the GEC was validly created--the 20 steps under section 135DJ(4). 21 `(2) However, the use of the automated system may allow a 22 decision that the GEC was validly created only if the 23 information noted under section 135DH on its face shows that 24 the requirements under this chapter for the creation of a GEC 25 have been met. 26 `(3) For chapter 10 and schedule 1,43 a decision made under the 27 automated system is taken to be a decision of the regulator 28 under section 135DJ. 29 41 Section 135JG (Required information for GEC register) 42 See also section 135JJ(1) (General provisions for register keeping). 43 Chapter 10 (Review of and appeals against decisions) and schedule 1 (Appeals against administrative decisions)

66 Electricity Amendment Bill 2004 `135DL Power to register GEC without prescribed fee 1 `(1) The regulator may decide whether a GEC was validly created 2 even if the prescribed fee under section 135DH(1)(a)(i) has 3 not been paid. 4 `(2) If the regulator makes a decision under subsection (1), the 5 regulator may recover the amount of the prescribed fee as a 6 debt. 7 `135DM Effect of registration 8 `If a GEC is registered, it is, other than for the following 9 provisions, taken to have been validly created-- 10 (a) part 2, division 3; 11 (b) divisions 2, 3 and 5.44 12 `135DN Ownership of GEC on registration 13 `(1) If a GEC is registered, the accredited generator that created it 14 becomes its registered owner. 15 `(2) The ownership is subject to-- 16 (a) a mortgage of the GEC created by the accredited 17 generator or to which the accredited generator is a party; 18 and 19 (b) a transfer or surrender of the GEC made under 20 division 4. 21 `(3) This section is subject to sections 135DO(4), 135DW and 22 division 5.45 23 44 Part 2, division 3 (Standard accreditation conditions) Divisions 2 (Improper creation or receipt of GECs), 3 (Term of GECs) and 5 (Amendment, cancellation and suspension of GECs) 45 Sections 135DO (Offence of improper creation of GEC) and 135DW (Ownership of GEC on transfer) and division 5 (Amendment, cancellation and suspension of GECs)

67 Electricity Amendment Bill 2004 `Division 2 Improper creation or receipt of 1 GECs 2 `135DO Offence of improper creation of GEC 3 `(1) A person must not create, or purport to create, a GEC if the 4 person-- 5 (a) is not an accredited generator; or 6 (b) knows that the creation or purported creation of the 7 GEC is not, or would not be, valid. 8 Maximum penalty--750 penalty units or 6 months 9 imprisonment. 10 `(2) A person must not, unless the person has a reasonable 11 excuse-- 12 (a) create a GEC if the creation of the GEC is not valid; or 13 (b) purport to create a GEC the creation of which would not 14 be valid. 15 Maximum penalty--500 penalty units. 16 `(3) In a proceeding for an offence against subsection (1), if the 17 court is not satisfied the defendant is guilty of the offence 18 charged but is satisfied the defendant is guilty of an offence 19 against subsection (2), the court may find the defendant guilty 20 of the offence against subsection (2).46 21 `(4) In a proceeding for an offence against this section, the fact 22 that the GEC has been registered must be disregarded. 23 `135DP Defence to proceeding for improper creation of GEC 24 `It is a defence in a proceeding against a person for a failure to 25 comply with section 135DO(1)(b) or (2) for the person to 26 prove that, to the extent they are relevant, the person complied 27 with the eligible electricity guidelines. 28 46 See also section 240A (Executive officers must ensure corporation complies with Act).

68 Electricity Amendment Bill 2004 `135DQ Direction to accredited generator to surrender GECs 1 `(1) This section applies if an accredited generator has not 2 complied with section 135AY or 135BA and, to the extent 3 they are relevant, the generator did not comply with the 4 eligible electricity guidelines.47 5 `(2) The regulator may give the accredited generator a notice 6 (a GEC surrender direction) directing the generator to-- 7 (a) make a surrender application for the number of GECs 8 equivalent to the number of invalidly created GECS; and 9 (b) if the accredited generator does not own enough GECs 10 to make the application--acquire, by creation or transfer 11 under part 4, enough GECs to do so. 12 `(3) The notice must be accompanied by or include an information 13 notice about the decision to make the direction. 14 `(4) The accredited generator must comply with the direction. 15 Maximum penalty--500 penalty units. 16 `(5) The giving of the direction does not limit the regulator's 17 powers under part 2, division 5 or division 5 of this part.48 18 `135DR Improper receipt of invalidly created GEC 19 `(1) A person must not give the regulator a notice accepting the 20 transfer of a GEC if the person knows the GEC was not 21 validly created. 22 Maximum penalty--500 penalty units. 23 `(2) A person must not give the regulator a notice accepting the 24 transfer of a GEC if the person ought reasonably to have 25 known that the GEC was not validly created. 26 Maximum penalty--300 penalty units. 27 `(3) In a proceeding for an offence against subsection (1), if the 28 court is not satisfied the defendant is guilty of the offence 29 47 Sections 135AY (Condition not to improperly create GECs) and 135BA (Obligation to take action because of improper creation of GECs or GEC review) 48 Part 2, division 5 (Amendment, cancellation and suspension of accreditation) and division 5 (Amendment, cancellation and suspension of GECs)

69 Electricity Amendment Bill 2004 charged but is satisfied the defendant is guilty of an offence 1 against subsection (2), the court may find the defendant guilty 2 of the offence against subsection (2).49 3 `(4) In a proceeding for an offence against this section, the fact 4 that the GEC has been registered must be disregarded. 5 `Division 3 Term of GECs 6 `135DS Automatic expiry 7 `A GEC expires at the end of the second year after its vintage 8 year. 9 10 Example-- 11 A GEC registered on 1 May 2006 (2006 vintage) expires at the end of 12 2008. `135DT Surrender and cancellation 13 `(1) A registered GEC ceases to be in force if it is surrendered 14 under division 4, subdivision 3, or cancelled under division 5. 15 `(2) A registered GEC has no force during any period in which it is 16 suspended under division 5. 17 `Division 4 Dealings with GECs 18 `Subdivision 1 Transfers 19 `135DU Conditions for transfer 20 `(1) The registered owner of a GEC may transfer the GEC only 21 if-- 22 (a) it is in force; and 23 (b) the transferee is a scheme participant; and 24 49 See also section 240A (Executive officers must ensure corporation complies with Act).

70 Electricity Amendment Bill 2004 (c) section 135BS(4) or 135ID(4)50 does not prevent the 1 registered owner from transferring the GEC. 2 `(2) A purported transfer of a GEC that does not comply with 3 subsection (1) is of no effect. 4 `135DV Notice and taking effect of transfer 5 `(1) A person who transfers a GEC must immediately give the 6 regulator notice (a transfer notice) of the transfer. 7 `(2) The transfer notice must-- 8 (a) state the names of the transferor and transferee; and 9 (b) identify the GEC; and 10 (c) be accompanied by the fee prescribed under a 11 regulation. 12 `(3) The transfer does not take effect until-- 13 (a) the transfer notice has been given; and 14 (b) the transferee has given the regulator notice stating that 15 the transferee accepts the transfer.51 16 `135DW Ownership of GEC on transfer 17 `(1) When the transfer of a GEC takes effect, the transferee 18 becomes its registered owner.52 19 `(2) Subsection (1) applies even if the person who created, or 20 purported to create the GEC, was not entitled to create it 21 under this chapter. 22 `(3) The ownership-- 23 (a) is taken to be absolute and free of any other legal or 24 equitable interest, or purported legal or equitable 25 interest, in the GEC; but 26 50 Section 135BS and 135ID (Partial suspension for non-payment of annual fee) 51 See however section 135DR (Improper receipt of invalidly created GEC). For the requirement to record the transfer in the GEC register, see section 135JJ (General provisions for register keeping). 52 See also section 135JJ(3) and (4) (General provisions for register keeping).

71 Electricity Amendment Bill 2004 (b) is subject to-- 1 (i) a mortgage of the GEC created by the transferee or 2 to which the transferree is a party; and 3 (ii) an equity arising from the act of the registered 4 owner; and 5 (iii) a transfer or surrender of the GEC made under this 6 division. 7 `(4) Subsection (3)(a) applies-- 8 (a) even if the transferee had actual or constructive notice of 9 the interest or purported interest; and 10 (b) whether or not valuable consideration has been given for 11 the transfer. 12 `(5) Subsections (1) to (3) do not apply if there has been fraud by 13 the transferee in relation to the transfer or the registration. 14 `(6) This section applies subject to division 5.53 15 `135DX Market operating rules and arrangements 16 `A regulation may-- 17 (a) make rules for the operation of services or systems that 18 relate to the selling and buying of GECs; or 19 (b) provide for arrangements that apply to persons who 20 provide or use the services or systems; or 21 (c) impose stated terms on the arrangements; or 22 (d) provide for the legal effect or enforcement of the terms, 23 including, for example by dispute resolution, arbitration 24 or court proceedings. 25 53 Division 5 (Amendment, cancellation and suspension of GECs)

72 Electricity Amendment Bill 2004 `Subdivision 2 Mortgages 1 `135DY Mortgage of GEC 2 `The registered owner of a GEC may mortgage it without the 3 approval of, or notice to, the regulator. 4 `135DZ Notice of intention to exercise powers under mortgage 5 `(1) This section applies if a registered owner of a GEC has 6 mortgaged it and the owner has defaulted under the mortgage. 7 `(2) The mortgagee may exercise its powers under the mortgage 8 only if the mortgagee has given the regulator notice of the 9 mortgagee's intention to exercise powers under the mortgage 10 that relate to the GEC. 11 `(3) Any purported exercise of a power under the mortgage 12 relating to the GEC that does not comply with subsection (2) 13 is of no effect. 14 `135E Consequence of exercising powers under mortgage 15 `If a mortgagee under a mortgage over a GEC exercises any 16 power under the mortgage relating to the GEC, this chapter 17 applies to the mortgagee as if the mortgagee were the 18 registered owner of the GEC. 19 `Subdivision 3 Surrenders 20 `135EA Surrender only by approval 21 `A GEC is surrendered only if an application to surrender the 22 GEC has been made under this subdivision and the regulator 23 has accepted the surrender. 24 `135EB Who may apply for surrender 25 `(1) The owner of a GEC may apply to surrender it. 26

73 Electricity Amendment Bill 2004 `(2) The accredited generator who creates a GEC may, when the 1 generator creates the GEC, apply to surrender it.54 2 `135EC Making surrender application 3 `(1) The application must be made by-- 4 (a) paying the regulator the fee prescribed under a 5 regulation to decide whether to accept the surrender; and 6 (b) electronically noting in the GEC register, in the way 7 approved by the regulator, an application to surrender 8 the GEC. 9 `(2) The application must state the purpose of the proposed 10 surrender. 11 12 Examples-- 13 · to meet all or part of the 13% liability 14 · to comply with section 135BA(2)(c)55 15 · to comply with a GEC surrender direction `135ED Power to accept application without prescribed fee 16 `(1) Despite section 135EC, the regulator may decide to accept the 17 application and decide it even if the application is not 18 accompanied by the prescribed fee required under the section. 19 `(2) If the regulator decides the application under subsection (1), 20 the regulator may recover the amount of the prescribed fee as 21 a debt. 22 `135EE Deciding surrender application 23 `(1) The regulator may accept the surrender only if the GEC is in 24 force or was in force when the surrender application was 25 made.56 26 54 See section 135DH (How a GEC is created). 55 Section 135BA (Obligation to take action because of improper creation of GECs or GEC review) 56 See section 135DI (When GEC takes effect).

74 Electricity Amendment Bill 2004 `(2) Subsection (3) applies if-- 1 (a) the purpose of the application is a purpose mentioned in 2 the examples for section 135EC; and 3 (b) the regulator considers the applicant has applied to 4 surrender too many GECs to achieve that purpose. 5 `(3) The regulator may accept the proposed surrender to the extent 6 needed to achieve the purpose and-- 7 (a) refuse to accept the rest of the proposed surrender; or 8 (b) defer the deciding of the rest of the application for an 9 appropriate period. 10 `(4) If the regulator decides not to accept all or part of the 11 surrender the regulator must, as soon as practicable, give the 12 applicant an information notice about the decision. 13 `Division 5 Amendment, cancellation and 14 suspension of GECs 15 `Subdivision 1 Preliminary 16 `135EF Application of div 5 17 `(1) This division applies if-- 18 (a) a GEC is registered; and 19 (b) because of information the regulator receives after the 20 registration of the GEC, the regulator reasonably 21 believes it was not validly created; and 22 (c) either-- 23 (i) the registered owner of the GEC is the accredited 24 generator that created it; or 25 (ii) if someone else is the registered owner--the 26 regulator reasonably believes that, before the 27 person became the registered owner, the person 28 knew or ought reasonably to have known that the 29 GEC was not validly created. 30

75 Electricity Amendment Bill 2004 `(2) Also, if an accredited generator has not complied with a GEC 1 surrender direction, this division applies for each GEC of 2 which the generator is the registered owner up to the number 3 of GECs that the direction required the generator to apply to 4 surrender. 5 `(3) This division also applies if the registered owner of a GEC 6 gives the regulator notice asking the regulator to cancel the 7 GEC. 8 `Subdivision 2 Immediate suspension 9 `135EG Immediate suspension 10 `(1) The regulator may, by notice to the registered owner, 11 immediately suspend the GEC if the regulator reasonably 12 suspects the owner may attempt to transfer the GEC. 13 `(2) The notice must-- 14 (a) identify the GEC; and 15 (b) state each of the following-- 16 (i) that the GEC is suspended immediately; 17 (ii) that the regulator believes the GEC was not validly 18 created; 19 (iii) the facts and circumstances forming the basis for 20 the belief; 21 (iv) the suspension period; 22 (v) that the registered owner may make written 23 submissions to the regulator to show why the 24 suspension should end; and 25 (c) include, or be accompanied by, an information notice 26 about the decisions to give the notice and to fix the 27 suspension period. 28 `(3) The suspension period must not be more than 40 business 29 days. 30 `(4) The suspension has effect immediately after the registered 31 owner is given the suspension notice. 32

76 Electricity Amendment Bill 2004 `(5) This section does not limit the power to suspend under 1 subdivision 3. 2 `(6) Section 21657 does not apply to a decision under this section. 3 `Subdivision 3 Amendment, cancellation or 4 suspension (other than immediate 5 suspension) 6 `135EH Power to amend, cancel or suspend 7 `(1) If the registered owner of the GEC has given the regulator 8 notice asking the regulator to cancel the GEC, the regulator 9 may cancel it. 10 `(2) Otherwise, the regulator may amend, cancel or suspend the 11 GEC only by following the procedure under this subdivision. 12 `(3) To remove any doubt, it is declared that if the accredited 13 generator has not complied with a GEC surrender direction, 14 the cancellation may be made for any GEC. 15 `(4) However, the regulator may cancel a GEC with a different 16 vintage year to the relevant vintage year only if the generator 17 has no GECs of the relevant vintage year other than GECs that 18 the regulator proposes to cancel under this subdivision. 19 `(5) In this section-- 20 relevant vintage year means the vintage year for the GECs 21 that the direction required the generator to apply to surrender. 22 `135EI Notice of proposed action 23 `(1) The regulator must give the registered owner notice stating 24 each of the following-- 25 (a) the action (the proposed action) the regulator proposes 26 to take under this division; 27 (b) that the regulator believes the GEC was not validly 28 created; 29 57 Section 216 (Stay of operation of decision etc.)

77 Electricity Amendment Bill 2004 (c) the facts and circumstances forming the basis for the 1 belief; 2 (d) if the proposed action is to amend--the proposed 3 amendment; 4 (e) if the proposed action is to suspend--the proposed 5 suspension period; 6 (f) that the registered owner may make, within a stated 7 period, written submissions to show why the proposed 8 action should not be taken. 9 `(2) The stated period must end at least 20 business days after the 10 notice is given. 11 `135EJ Considering submissions 12 `(1) The regulator must consider any written submission made 13 under section 135EI(1)(f) by the registered owner within the 14 period stated in the notice. 15 `(2) If the regulator at any time decides not to take the proposed 16 action, the regulator must, as soon as practicable, give the 17 registered owner notice of the decision. 18 `135EK Decision on proposed action 19 `(1) If, after complying with section 135EJ, the regulator still 20 believes the GEC was not validly created, the regulator may 21 decide to-- 22 (a) if the proposed action was to amend--make the 23 amendment; or 24 (b) if the proposed action was to suspend for a stated 25 period--suspend for no longer than the proposed 26 suspension period; or 27 (c) if the proposed action was to cancel-- 28 (i) cancel the GEC; or 29 (ii) suspend it for a stated period. 30 `(2) However, the regulator can not take the proposed action if the 31 regulator is satisfied that, to the extent they are relevant, the 32

78 Electricity Amendment Bill 2004 person who created the GEC complied with the eligible 1 electricity guidelines. 2 `(3) Section 21658 does not apply to a decision to suspend under 3 this section. 4 `135EL Notice and taking of effect of proposed action decision 5 `(1) The regulator must, as soon as practicable after making a 6 decision under section 135EK, give the registered owner an 7 information notice about the decision. 8 `(2) The decision takes effect on the later of the following-- 9 (a) the day the information notice is given; 10 (b) a later day of effect stated in the notice. 11 `(3) However, if the decision was to amend or cancel because of a 12 conviction, the amendment or cancellation-- 13 (a) does not take effect until-- 14 (i) the period to appeal against the conviction ends; 15 and 16 (ii) if an appeal is made against the conviction--the 17 appeal is finally decided or is otherwise ended; and 18 (b) has no effect if the conviction is quashed on appeal. 19 `(4) Also, if the decision was to suspend because of a conviction, 20 the suspension ends if the conviction is quashed on appeal. 21 58 Section 216 (Stay of operation of decision etc.)

79 Electricity Amendment Bill 2004 `Part 5 13% liability 1 `Division 1 Preliminary 2 `135EM Simplified explanation of pt 5 3 `(1) Sections 135EP and 135ET impose an annual liability 4 (the 13% liability) on particular persons who sell or use 5 electricity loads to surrender GECs to the regulator. 6 `(2) The liability only applies to-- 7 (a) particular persons who have a relationship with a major 8 grid; or 9 (b) an accredited generator for a power station connected to 10 a small grid. 11 `(3) The liability only attaches to 1 person, the liable person, as 12 provided for in section 135ES and division 5.59 13 `(4) The liability under subsection (2)(a) applies to all electricity 14 loads, other than any of the following loads-- 15 (a) a load for which, under division 5, there is no liable 16 person; 17 (b) a load (an exempted load) the subject of a liable load 18 exemption;60 19 (c) a load that, under division 7, is not a liable load 20 (a non-liable load). 21 `(5) An electricity load to which the liability applies as mentioned 22 in subsection (4) is called a liable load. 23 `(6) The relevant year to which the 13% liability attaches is 24 the liable year for that liability. 25 59 Section 135ES (Liable persons) and division 5 (Liable persons in relation to major grids) 60 See division 6 (Exempted loads).

80 Electricity Amendment Bill 2004 `Division 2 The 13% liability 1 `Subdivision 1 Imposition of 13% liability in 2 relation to major grids 3 `135EN Application of sdiv 1 4 `This subdivision applies, subject to section 135EM(4), to a 5 liable person for a liable load, other than an accredited 6 generator for a power station connected to a small grid. 7 `135EO Liable person 8 `Division 5 provides for who is the liable person for the liable 9 load. 10 `135EP Liability 11 `(1) The liable person has, for each year from 2005, an annual 12 liability to the regulator that equates to-- 13 (a) for the person's liable loads generated from eligible 14 fuels supplied under a direct supply arrangement that 15 was in force on 24 May 2000--13% of the total of the 16 liable loads, in MWh, above the baseline fixed for the 17 customer to whom the load is supplied; and 18 (b) for the person's other liable loads--13% of the total of 19 the liable loads, in MWh. 20 `(2) For subsection (1), if 13% of the total liable loads is a number 21 of MWhs that ends in a fraction, the number is taken to be the 22 whole number of MWhs, disregarding the fraction. 23 `135EQ How and when liability must be met 24 `(1) The 13% liability must be met by surrendering, under part 4, 25 division 4, subdivision 3, the number (the required number) 26

81 Electricity Amendment Bill 2004 of GECs that equates to 13% of the person's liable load for the 1 liable year.61 2 `(2) The surrenders must be made on or before the final surrender 3 day for the next year after the liable year. 4 `(3) However, the 13% liability is taken to be complied with if-- 5 (a) the liable person has, on or before the final surrender 6 day made a surrender application for GECs; and 7 (b) should the surrenders be accepted, the required number 8 of GECs are surrendered. 9 `(4) In this section-- 10 final surrender day means-- 11 (a) generally--the last business day in April; or 12 (b) if the regulator has, by notice given to the liable person, 13 fixed a day between the last business day in April and 14 the next penalty imposition day--that fixed day. 15 `Subdivision 2 Imposition of 13% liability in 16 relation to small grids 17 `135ER Application of sdiv 2 18 `This subdivision applies for a power station connected to a 19 small grid. 20 `135ES Liable person 21 `If there is an accredited generator for the power station and 22 the generator creates GECs, the generator is the liable person. 23 `135ET How and when liability must be met 24 `(1) The liable person has, for each year from 2005, an annual 25 liability to the regulator to surrender, under part 4, division 4, 26 subdivision 3, the number of GECs that equates to 13% of the 27 61 See however section 135FO (Credit to future 13% liability for over surrender).

82 Electricity Amendment Bill 2004 GECs created by the person and registered during the liable 1 year.62 2 `(2) The surrenders must be made on or before the final surrender 3 day for the next year after the liable year. 4 `(3) However, the 13% liability is taken to be complied with if-- 5 (a) the liable person has, on or before the final surrender 6 day made a surrender application for GECs; and 7 (b) should the surrenders be accepted, the required number 8 of GECs are surrendered. 9 `(4) In this section-- 10 final surrender day means-- 11 (a) generally--the last business day in April; or 12 (b) if the regulator has, by notice given to the liable person, 13 fixed a day between the last business day in April and 14 the next penalty imposition day--that fixed day. 15 `Subdivision 3 General provisions for 13% liability 16 `135EU GECs that can not be used to meet 13% liability 17 `In deciding whether the 13% liability has been met for a 18 liable year the surrender of a GEC must be disregarded if the 19 surrender is-- 20 (a) to comply with section 135BA;63 or 21 (b) under a GEC surrender direction. 22 `135EV Liability not subject to condition of GEC ownership 23 `To remove any doubt, it is declared that the 13% liability 24 applies to a liable person even if the person does not own any 25 GECs or does not own enough GECs to meet the liability. 26 62 See however section 135FO (Credit to future 13% liability for over surrender). 63 Section 135BA (Obligation to take action because of improper creation of GECs or GEC review)

83 Electricity Amendment Bill 2004 `135EW Obligation to keep documents relating to 13% liability 1 `(1) The liable person must, unless the person has a reasonable 2 excuse, keep during the relevant period all documents that will 3 allow the person's 13% liability for a liable year to be worked 4 out. 5 Maximum penalty--200 penalty units. 6 `(2) In this section-- 7 relevant period means the period that ends 5 years after the 8 giving of a self-assessment report for the 13% liability. 9 `Division 3 Civil penalty for not meeting 13% 10 liability 11 `135EX Application of div 3 12 `This division applies if a liable person does not meet the 13 13% liability for any liable year. 14 `135EY Imposition of civil penalty for not meeting 13% liability 15 `(1) Subject to section 135EZ, the liable person must, on the later 16 of the following days, pay the regulator a civil penalty-- 17 (a) the next 30 June after the 13% liability was not met; 18 (b) if the regulator has, by notice given to the liable person 19 before the next 30 June, fixed a later day--the later day. 20 `(2) The day mentioned in subsection (1) is the penalty imposition 21 day for the 13% liability. 22 `(3) If the liable person meets the 13% liability before the penalty 23 imposition day, the obligation to pay the civil penalty ends. 24 `(4) If the liable person does not meet the 13% liability before the 25 penalty imposition day, the obligation to pay the penalty 26 applies whether or not the liable person later meets the 27 liability. 28 `(5) However, if the penalty is paid the 13% liability for the liable 29 year ends. 30

84 Electricity Amendment Bill 2004 `(6) Subsection (5) is subject to any assessment, under 1 division 4,64 that increases the amount of the penalty or the 2 13% liability. 3 `135EZ Exemption to allow for meter data revisions or 4 adjustments 5 `Despite the liable person not having met all of the 13% 6 liability for a particular liable year before the penalty 7 imposition day for the 13% liability, the obligation to pay the 8 civil penalty ends if-- 9 (a) the person has given the regulator a self-assessment 10 report for that year; and 11 (b) the person gives the regulator evidence that the failure to 12 meet the 13% liability was because of meter data 13 revisions or adjustments that were not available to the 14 person when the report was given; and 15 (c) before the penalty imposition day the person met the 16 13% liability other than to the extent it relates to the 17 revisions or adjustments; and 18 (d) the person meets all of the 13% liability on or before the 19 next final surrender day under-- 20 (i) if division 2, subdivision 1 applies-- 21 section 135EQ; or 22 (ii) if division 2, subdivision 2 applies-- 23 section 135ET.65 24 `135F Amount of civil penalty 25 `The amount of the civil penalty is worked out using the 26 following formula-- 27 P = ( 13% LL GECs surrendered ) × SC 64 Division 4 (Assessments) 65 Division 2, subdivisions 1 (Imposition of 13% liability in relation to major grids) and 2 (Imposition of 13% liability in relation to small grids) Sections 135EQ and 135ET (How and when liability must be met)

85 Electricity Amendment Bill 2004 where-- 1 P is the amount of the penalty. 2 13%LL is 13% of the liable load, in MWh, for which the 13% 3 liability was imposed. 4 GECs surrendered is the total number of-- 5 (a) GECs surrendered to meet the 13% liability for the 6 liable year; and 7 (b) GECs the subject of a surrender application under 8 section 135EQ(3) or 135ET(3).66 9 SC is the amount of the shortfall charge for the liable year, as 10 fixed under section 135FA. 11 `135FA Shortfall charge 12 `(1) For section 135F, the amount of the shortfall charge is the 13 following-- 14 (a) for 2005--$11; 15 (b) for 2006--$11, CPI indexed; 16 (c) for 2007--the shortfall charge for 2006, CPI indexed; 17 (d) for 2008--the shortfall charge for 2007, CPI indexed; 18 (e) for 2009--the shortfall charge for 2008, CPI indexed; 19 (f) for 2010--the shortfall charge for 2009, CPI indexed; 20 (g) for 2011--the shortfall charge for 2010, CPI indexed; 21 (h) for 2012 to 2019--the shortfall charge for 2011. 22 `(2) However, if the amount provided for under subsection (1) is 23 an amount that is or includes a fraction of a dollar, the amount 24 is taken to be the amount that is the nearest 5c, rounded up. 25 `(3) In this section-- 26 CPI means-- 27 (a) the all groups index for Brisbane published by the 28 Australian Bureau of Statistics; or 29 66 Section 135EQ or 135ET (How and when liability must be met)

86 Electricity Amendment Bill 2004 (b) if the index ceases to be published, another similar index 1 prescribed under a regulation. 2 CPI indexed, for a stated year, means the addition of an 3 amount that equates to the percentage increase in the CPI 4 from the December quarter for the previous year and the 5 December quarter for the stated year. 6 `135FB Interest on unpaid civil penalty 7 `(1) The liable person must pay interest on an amount owing for 8 the civil penalty unpaid from time to time. 9 `(2) Interest accrues daily at the rate of 10% a year on the unpaid 10 amount on and from the day after it is owing until it is paid in 11 full. 12 `(3) The regulator may waive payment of the interest. 13 `(4) The liability to pay the amount waived is extinguished. 14 `135FC Recovery of unpaid civil penalty and interest 15 `(1) If the liable person does not pay an amount owing under this 16 division, the State may recover the amount from the person as 17 a debt. 18 `(2) Despite the Limitation of Actions Act 1974, section 10(5),67 19 the proceeding may be started within 6 years after the penalty 20 imposition day for the relevant 13% liability. 21 `Division 4 Assessments 22 `Subdivision 1 Self-assessment 23 `135FD Self-assessment report 24 `(1) Each liable person must, on or before the report day in each 25 year from 2006, give the regulator a report (a self-assessment 26 67 Limitation of Actions Act 1974, section 10 (Actions of contract and tort and certain other actions)

87 Electricity Amendment Bill 2004 report) that complies with subsection (2) about the person's 1 13% liability for the previous year. 2 Maximum penalty--200 penalty units. 3 `(2) The report must-- 4 (a) be in the approved form; and 5 (b) for an accredited generator for a power station 6 connected to a small grid--state how many registered 7 GECs the person created during the previous year; and 8 (c) for a liable person other than an accredited generator for 9 a power station connected to a small grid--give all 10 information needed to work out the person's liable load 11 for the previous year, including, for example, any 12 electricity loads the person claims were exempt or 13 non-liable loads; and 14 (d) the liable person's 13% liability for the previous year, as 15 worked out by the person; and 16 (e) state how many GECs the person has surrendered to 17 meet the 13% liability.68 18 `(3) In this section-- 19 report day means-- 20 (a) generally--the last business day in April; or 21 (b) if the regulator has, by notice given to the liable person 22 before the day mentioned in paragraph (a), fixed a later 23 day--the later day. 24 `135FE Derivative use immunity for self-assessment report 25 `(1) It is not a defence to a proceeding for an offence against 26 section 135FD(1) that the giving of the report or information 27 it contains might tend to incriminate the liable person. 28 `(2) However, if the liable person is an individual evidence of, or 29 evidence directly or indirectly derived from, the report or 30 information it contains that might tend to incriminate the 31 68 See also section 135JS (Additional information about reports and other matters).

88 Electricity Amendment Bill 2004 liable person is not admissible in evidence against the person 1 in a civil or criminal proceeding, other than a proceeding-- 2 (a) for an offence for which the falsity or misleading nature 3 of the answer is relevant; or 4 (b) to recover an amount under section 135FC.69 5 `135FF Obligation to keep documents used to 6 make self-assessment report 7 `If a liable person gives the regulator a self-assessment report, 8 the person must, unless the person has a reasonable excuse, 9 keep all documents the person used to make the report for 10 5 years after the giving of the report. 11 Maximum penalty--200 penalty units. 12 `Subdivision 2 Assessments by regulator 13 `135FG Purpose of sdiv 2 14 `(1) This subdivision gives the regulator power to make 15 assessments of the 13% liability and any civil penalty for not 16 meeting it. 17 `(2) Subdivision 4 provides for the evidentiary effect of the 18 assessments in proceedings relating to the liability or the 19 penalty. 20 `135FH Default assessment 21 `(1) If a liable person has not given the regulator a self-assessment 22 report as required under section 135FD, the regulator may 23 make an assessment (a default assessment) for the following 24 that the regulator reasonably believes is outstanding-- 25 (a) the 13% liability for the year for which the report ought 26 to have been given; 27 69 Section 135FC (Recovery of unpaid civil penalty and interest)

89 Electricity Amendment Bill 2004 (b) if the penalty imposition day for the 13% liability has 1 passed--the civil penalty for not meeting the 2 13% liability. 3 `(2) A default assessment must state-- 4 (a) the amount of the 13% liability or civil penalty; and 5 (b) when, under section 135EY, the civil penalty became 6 payable; and 7 (c) any interest payable, under section 135FB, on the civil 8 penalty.70 9 `135FI Reassessment 10 `If the regulator is not satisfied about the accuracy or 11 completeness of a self-assessment report the regulator may 12 make an assessment (a reassessment) for the following that 13 the regulator reasonably believes is outstanding-- 14 (a) the 13% liability for the year for which the report was 15 given; 16 (b) if the penalty imposition day for the 13% liability has 17 passed--the civil penalty for not meeting the 18 13% liability. 19 `135FJ Compromise assessment 20 `(1) This section applies if, because of a complexity or uncertainty 21 or for another reason, it is difficult or impracticable for the 22 liable person or the regulator to properly work out the amount 23 of the liable person's 13% liability for any year. 24 `(2) The regulator may, under a written agreement with the liable 25 person, make an assessment (a compromise assessment) of 26 the 13% liability. 27 `(3) A compromise assessment must also state-- 28 70 Sections 135EY (Imposition of civil penalty for not meeting 13% liability) and 135FB (Interest on unpaid civil penalty)

90 Electricity Amendment Bill 2004 (a) if the penalty imposition day for the 13% liability has 1 passed--the amount of the civil penalty for not meeting 2 the 13% liability; and 3 (b) when, under section 135EY, the civil penalty became 4 payable; and 5 (c) any interest payable, under section 135FB, on the civil 6 penalty. 7 `(4) Nothing in this part requires the regulator to make a 8 compromise assessment for a liable person. 9 `135FK Amended assessment 10 `(1) The regulator may amend a default assessment, reassessment 11 or compromise assessment in any way the regulator considers 12 is reasonably necessary to correct the relevant 13% liability or 13 civil penalty. 14 `(2) An amendment under subsection (1) is called an amended 15 assessment. 16 `(3) An amended assessment must state-- 17 (a) the 13% liability or the amount of the civil penalty; and 18 (b) for the civil penalty-- 19 (i) when, under section 135EY, it became payable; 20 and 21 (ii) any interest payable on it under section 135FB. 22 `(4) However, a compromise assessment may be amended only-- 23 (a) with the written agreement of the relevant liable person; 24 or 25 (b) if the regulator reasonably believes the compromise was 26 agreed to by the regulator because of fraud or a false or 27 misleading statement; or 28 (c) if, when the compromise was made, the regulator was 29 unaware of information material to the making of the 30 compromise. 31

91 Electricity Amendment Bill 2004 `135FL Assessments made on available relevant information 1 `The regulator may make an assessment on the available 2 information the regulator considers relevant. 3 `135FM Notice of assessment and when it takes effect 4 `(1) As soon as practicable after making an assessment, the 5 regulator must give the relevant liable person notice of the 6 assessment. 7 `(2) The assessment takes effect on the later of the following-- 8 (a) the day the notice is given; 9 (b) a later day of effect stated in the notice. 10 `(3) If the assessment is an assessment other than a compromise 11 assessment, the notice must include or be accompanied by an 12 information notice about the decision to make the assessment. 13 `135FN Time for assessment by regulator 14 `An assessment by the regulator may be made only within 15 5 years after the final surrender day under section 135EQ 16 or 135ET for the relevant 13% liability.71 17 `Subdivision 3 Credits and refunds 18 `135FO Credit to future 13% liability for over surrender 19 `(1) This section applies if-- 20 (a) under an amended assessment, compromise assessment 21 or reassessment, a liable person's 13% liability for a 22 year is decreased; and 23 (b) the liable person has, for that year, surrendered more 24 than the number of GECs that the assessment states was 25 required to meet the liability. 26 71 Section 135EQ or 135ET (How and when liability must be met)

92 Electricity Amendment Bill 2004 `(2) The amount of the over surrender is taken to have been made 1 for the next year or years for which the liable person must 2 meet the 13% liability. 3 `(3) Subsection (2) is subject to section 135DS.72 4 `135FP Regulator to refund overpaid civil penalty and interest 5 `(1) An entitlement to a refund of an amount paid for the civil 6 penalty and interest on the penalty arises if, under an amended 7 assessment, compromise assessment or reassessment, a liable 8 person's liability for the civil penalty is decreased. 9 `(2) The regulator must refund the overpaid amount. 10 `(3) The liable person is not entitled to-- 11 (a) a refund of any civil penalty or interest on the penalty 12 paid, or purportedly paid, other than under this section; 13 or 14 (b) interest on the overpaid amount. 15 `Subdivision 4 Evidentiary provisions for 16 assessments 17 `135FQ Evidentiary provisions 18 `(1) This section applies to any proceeding under or in relation to 19 this chapter. 20 `(2) Production of a document signed by the regulator purporting 21 to be a copy of an assessment by the regulator-- 22 (a) is conclusive evidence of the proper making of the 23 assessment; and 24 (b) for a proceeding on an appeal against a decision to make 25 the assessment, is evidence that the amount and all 26 particulars of the assessment are correct; and 27 (c) for another proceeding, is conclusive evidence-- 28 72 Section 135DS (Automatic expiry)

93 Electricity Amendment Bill 2004 (i) of the 13% liability and any civil penalty and 1 interest on the penalty as stated in the assessment; 2 and 3 (ii) that all particulars of the assessment are correct. 4 `(3) The validity of an assessment by the regulator is not affected 5 merely because a provision of this chapter has not been 6 complied with. 7 `Division 5 Liable persons in relation to major 8 grids 9 `Subdivision 1 Liability hierarchy 10 `135FR Operation of sdiv 1 11 `(1) This subdivision provides for who is the liable person for a 12 liable load other than in relation to a power station connected 13 to a small grid.73 14 `(2) The general principle of this subdivision is-- 15 (a) that the liable person is-- 16 (i) any relevant retailer for the load; or 17 (ii) if there is no relevant retailer for the load--the 18 relevant special approval holder for the load; or 19 (iii) if there is no relevant retailer or relevant special 20 approval holder for the load--any other person 21 who, in effect, acts as a retailer in relation to the 22 load; but 23 (b) the person mentioned in paragraph (a) is not the liable 24 person for the load if-- 25 (i) the person sells the load to NEMMCO; or 26 (ii) NEMMCO later acquires the load. 27 73 For who is the liable person in relation to a power station connected to a small grid, see division 2, subdivision 2 (Imposition of 13% liability in relation to small grids).

94 Electricity Amendment Bill 2004 `(3) If no liable person is provided for the load, the 13% liability 1 does not apply to anyone. 2 `135FS Retailer 3 `(1) If the liable load is electricity generated or used at premises 4 with a substantive traceable link to a major grid and a retailer 5 sells the electricity to any of the following in the State, the 6 retailer is the liable person for the load-- 7 (a) a customer of the retailer, other than another retailer; 8 (b) an on-supplier; 9 (c) a special approval holder. 10 `(2) However-- 11 (a) the retailer is not the liable person for the load if-- 12 (i) the retailer sells the load to NEMMCO; or 13 (ii) NEMMCO later acquires the load; and 14 (b) the retailer ceases to be the liable person for the load if it 15 is sold later by another retailer. 16 `135FT Special approval holder 17 `(1) A special approval holder is a liable person for the liable load 18 if-- 19 (a) the liable load is electricity generated or used at 20 premises with a substantive traceable link to a major 21 grid; and 22 (b) the power station that generated the electricity-- 23 (i) can not be identified; or 24 (ii) has a nameplate capacity of more than 5 MW and 25 an annual generation output of more than 26 100 MWh; and 27 (c) no retailer is the liable person for the load; and 28 (d) the special approval holder sells the electricity to any of 29 the following in the State-- 30 (i) a customer of the special approval holder; 31

95 Electricity Amendment Bill 2004 (ii) an on-supplier; 1 (iii) another special approval holder; and 2 (e) the load has not previously been sold by another special 3 approval holder. 4 `(2) The special approval holder continues to be the liable person 5 for the load even though another special approval holder later 6 sells it to someone else. 7 `(3) Despite subsections (1) and (2), the special approval holder is 8 not the liable person for the load if-- 9 (a) the special approval holder sells the load to NEMMCO; 10 or 11 (b) NEMMCO later acquires the load. 12 `135FU Specific circumstance generator 13 `(1) This section applies if-- 14 (a) a power station has a substantive traceable link to a 15 major grid; and 16 (b) the liable load is electricity sold directly from the power 17 station to an end user in the State; and 18 (c) the power station has-- 19 (i) a nameplate capacity of more than 5 MW; and 20 (ii) an annual generation output of more than 21 100 MWh; and 22 (d) a dedicated line is used for the supply; and 23 (e) no retailer or special approval holder is the liable person 24 for the load. 25 `(2) The person who sells the electricity to the end user is the 26 liable person for the load. 27 `135FV Substantial on-site generator 28 `If-- 29 (a) the liable load is electricity-- 30

96 Electricity Amendment Bill 2004 (i) generated in the State; and 1 (ii) generated or used at premises with a substantive 2 traceable link to a major grid; and 3 (b) the power station at which the electricity is generated 4 has-- 5 (i) a nameplate capacity of more than 5 MW; and 6 (ii) an annual generation output of more than 7 100 MWh; and 8 (c) the person who generated the electricity (the generator) 9 also uses it in the State; and 10 (d) no retailer or special approval holder is the liable person 11 for the load; 12 the generator is the liable person for the load. 13 `135FW Wholesale purchaser from spot market 14 `If-- 15 (a) the liable load is, under the Market Code, electricity 16 bought directly from NEMMCO by someone 17 (the purchaser) for their own use; and 18 (b) the premises at which the electricity is used has a 19 substantive traceable link to a major grid; and 20 (c) no retailer or special approval holder is the liable person 21 for the load; 22 the purchaser is the liable person for the load. 23 `Subdivision 2 Resolving disputes about who is 24 the liable person 25 `135FX Application of sdiv 2 26 `This subdivision applies if a dispute exists about who is the 27 liable person for a liable load and the regulator is not a party 28 to the dispute. 29

97 Electricity Amendment Bill 2004 `135FY Referral to regulator 1 `(1) Any party to the dispute (the referrer) may refer it to the 2 regulator to decide who is the liable person. 3 `(2) The referral must-- 4 (a) be written; and 5 (b) include submissions about who the referrer believes is 6 the liable person; and 7 (c) state the grounds for the belief; and 8 (d) include all documents or information the referrer has 9 that will allow the regulator to resolve the dispute. 10 `135FZ Submissions by other affected parties 11 `Before deciding who is the liable person the regulator must-- 12 (a) give each party to the dispute other than the referrer a 13 copy of the referral; and 14 (b) invite each other party to make written submissions 15 about the dispute; and 16 (c) give the referrer a reasonable opportunity to give the 17 regulator a written response to the submissions; and 18 (d) consider the referral, submissions and response. 19 `135G Regulator's power to require documents or information 20 `(1) The regulator may, by notice, require a party to the dispute to 21 give the regulator a stated document or information the 22 regulator reasonably requires to decide who is the liable 23 person. 24 `(2) The notice must be accompanied by, or include, an 25 information notice about the decision to make the 26 requirement. 27 `(3) The document or information must be given within a 28 reasonable period after giving the notice, unless the party has 29 a reasonable excuse. 30 Maximum penalty--100 penalty units. 31

98 Electricity Amendment Bill 2004 `(4) It is not a reasonable excuse not to give the document or 1 information because it is confidential or because the party has 2 agreed with another party or someone else not to give it to 3 anyone else. 4 `135GA Regulator may require confidentiality to be observed 5 `(1) A person who gives the regulator information, or produces a 6 document, may ask the regulator to keep the information or 7 the contents of the document confidential. 8 `(2) After considering representations from the parties to the 9 dispute, the regulator may impose conditions limiting access 10 to, or disclosure of, the information or document. 11 12 Example of a condition that may be imposed-- 13 a condition that the parties, or a stated party, may use the information or 14 document only for the mediation `(3) A person to whom a condition under subsection (2) applies 15 must comply with the condition. 16 Maximum penalty for subsection (3)--200 penalty units. 17 `135GB Regulator may require mediation 18 `Before deciding who is the liable person the regulator may 19 require the parties to the dispute to undergo mediation of a 20 stated type. 21 `135GC Criteria for decision 22 `The matters the regulator must consider in deciding who is 23 the liable person include each of the following-- 24 (a) each relevant agreement between the parties; 25 (b) the purpose of each relevant agreement; 26

99 Electricity Amendment Bill 2004 (c) the ability of any party to the dispute to pass on the cost 1 of meeting the 13% liability;74 2 (d) the main purposes of this chapter;75 3 (e) the general principle of subdivision 1.76 4 `135GD Exclusion of other jurisdictions 5 `(1) If the dispute has been referred to the regulator, the following 6 matters are not justiciable by a court or tribunal at the 7 instigation of a party to the dispute-- 8 (a) an issue in the dispute; 9 (b) any issue that arises in the course of the regulator's 10 deciding of the dispute. 11 `(2) However, subsection (1) does not apply if the proceeding 12 before the court or tribunal was started before the dispute was 13 referred to the regulator. 14 `135GE Notice of decision 15 `After deciding who is the liable person, the regulator must 16 give each party to the dispute an information notice about the 17 decision. 18 `135GF Decision binds parties to the dispute 19 `The regulator's decision about who is the liable person binds 20 each party to the dispute. 21 74 See section 309 (Existing electricity supply contracts). 75 See section 135A (Main purposes of ch 5A). 76 See section 135FR (Operation of sdiv 1).

100 Electricity Amendment Bill 2004 `Division 6 Exempted loads 1 `Subdivision 1 Preliminary 2 `135GG Who is an interested person for an electricity load 3 `(1) An interested person for an electricity load is-- 4 (a) each person who is, or may become, the liable person 5 for the load; and 6 (b) the person who generates or uses the load. 7 `(2) Also, if a business or enterprise is, or is part of a significant 8 project, the proponent of the project is an interested person 9 for electricity loads supplied to the business or enterprise. 10 `135GH Who obtains the benefit of liable load exemption 11 `(1) If a liable load exemption is granted, the person who applied 12 for it has the benefit of the exemption and is taken to be 13 registered under part 6 as a scheme participant. 14 `(2) Another person who is a scheme participant and an interested 15 person for the load may also claim the benefit of the 16 exemption. 17 `Subdivision 2 State development exemption 18 `135GI Application and operation of sdiv 2 19 `(1) This subdivision applies if a business or enterprise is, or is 20 part of any of the following projects (a significant project)-- 21 (a) a project that, under the State Development and Public 22 Works Organisation Act 1971, part 4,77 has been 23 declared to be a significant project; 24 77 State Development and Public Works Organisation Act 1971, part 4 (Environmental coordination)

101 Electricity Amendment Bill 2004 (b) another project that the regulator decides provides, or 1 will provide, substantial strategic and economic benefits 2 to the State. 3 `(2) In making the decision, the regulator may consider any matter 4 mentioned in the State Development and Public Works 5 Organisation Act 1971, section 27. 6 `(3) This subdivision gives the regulator power to grant a liable 7 load exemption for the proportion of all electricity loads 8 supplied, or proposed to be supplied, to the business or 9 enterprise that is not eligible gas-fired electricity if the total of 10 the loads is, or will be, more than 750 GWh a year. 11 `(4) A liable load exemption granted under this division is a State 12 development exemption. 13 `135GJ Making application 14 `(1) Any interested person for any of the loads may apply for the 15 exemption. 16 `(2) The application must-- 17 (a) be in the approved form; and 18 (b) identify each of the following-- 19 (i) the business or enterprise; 20 (ii) each relevant premises; 21 (iii) the electricity loads; 22 (iv) the proponent of the significant project; and 23 (c) state each of the following-- 24 (i) the applicant's estimate of the proportion of the 25 electricity supply or proposed supply that is not 26 eligible gas-fired electricity; 27 (ii) each interested person for the electricity loads; 28 (iii) if the supply started before the 3 years before the 29 making of the application--details of the 30 electricity consumption of the business or 31 enterprise during the 3 years; 32

102 Electricity Amendment Bill 2004 (iv) if the supply started during the 3 years before the 1 making of the application--details of the 2 electricity consumption of the business or 3 enterprise from when the supply started to the 4 making of the application; and 5 (d) be accompanied by each of the following-- 6 (i) evidence that the business or enterprise is, or will 7 be, part of the significant project; 8 (ii) evidence that the supply or proposed supply is, or 9 will be-- 10 (A) more than 750 GWh a year; and 11 (B) carried out as part of the same business or 12 enterprise; 13 (iii) if the supply has not started or has not exceeded 14 750 GWh a year-- 15 (A) the parts of any environmental impact 16 statement for the project, as made under 17 another Act, that are relevant to the business 18 or enterprise; and 19 (B) a schedule by the applicant for bringing the 20 supply over 750 GWh a year; 21 (iv) the fee prescribed under a regulation. 22 `135GK Notice to other interested persons 23 `The applicant must give any other interested person for any 24 of the electricity loads-- 25 (a) a copy of the application; and 26 (b) a notice stating that the interested person may make, 27 within 20 business days after the person is given the 28 notice, written submissions to the regulator about the 29 application. 30 `135GL Deciding application 31 `(1) The regulator must decide whether to grant or refuse the 32 application. 33

103 Electricity Amendment Bill 2004 `(2) However, if section 135GK applies, the regulator-- 1 (a) must not make the decision until the applicant has 2 complied with that section; and 3 (b) must consider any written submissions made under that 4 section. 5 `(3) Also, the regulator may grant the application only if satisfied 6 of each of the following-- 7 (a) the business or enterprise is, or is part of, a significant 8 project; 9 (b) the total of the electricity loads supplied, or proposed to 10 be supplied, to the business or enterprise is, or will be-- 11 (i) more than 750 GWh a year; and 12 (ii) carried out as part of the same business or 13 enterprise; 14 (c) if the total of the supply is currently 750 GWh a year or 15 less--that the period to bring it over 750 GWh a year 16 will not be more than 4 years from when the business or 17 enterprise first consumes or consumed electricity for 18 production; 19 (d) all of the business or enterprise is carried out in the same 20 locality; 21 (e) the supply or proposed supply does, or will, include a 22 proportion of electricity that is not eligible gas-fired 23 electricity. 24 `135GM Steps after deciding application 25 `(1) If the regulator decides to grant the application, the regulator 26 must-- 27 (a) decide the extent to which the liable load exemption is 28 granted; and 29 (b) decide the term of the exemption; and 30 (c) give the applicant a certificate in the approved form 31 about the exemption; and 32

104 Electricity Amendment Bill 2004 (d) give each interested person for any of the electricity 1 loads a copy of the certificate. 2 `(2) The term of the exemption-- 3 (a) must not be more than 15 years; and 4 (b) may start at any day not before 1 January 2005; and 5 (c) is subject to any cancellation or suspension under 6 subdivision 8. 7 `(3) If the regulator makes any of the following decisions, the 8 regulator must give the applicant and each interested person 9 an information notice about the decision-- 10 (a) a decision to refuse the application; 11 (b) a decision about the extent to which the liable load 12 exemption is granted, other than an extent to which the 13 applicant has agreed. 14 `135GN Condition for proposed supply 15 `(1) This section applies if the State development exemption is 16 granted and, when it is granted, the total of the electricity 17 loads supplied to the business or enterprise is 750 GWh a year 18 or less. 19 `(2) It is a condition of the exemption that the supply must comply 20 with-- 21 (a) the schedule that accompanied the application for the 22 exemption; or 23 (b) if, under section 135GO, the schedule has been 24 amended--the amended schedule. 25 `(3) If the schedule or amended schedule is complied with, the 26 condition under section 135GP applies. 27 `135GO Amendment of applicant's supply schedule 28 `(1) If the State development exemption is granted, the proponent 29 of the significant project may apply in writing to the regulator 30 to amend either of the following (the earlier schedule)-- 31

105 Electricity Amendment Bill 2004 (a) the schedule that accompanied the application for the 1 exemption; 2 (b) the schedule that accompanied the application for the 3 exemption, as previously amended under this section. 4 `(2) If there is any other interested person for any of the exempted 5 loads-- 6 (a) the applicant must give the interested person-- 7 (i) a copy of the application; and 8 (ii) a notice stating that the interested person may 9 make, within 20 business days after the person is 10 given the notice, written submissions to the 11 regulator about the application; and 12 (b) the regulator-- 13 (i) must not decide the application until the applicant 14 has complied with paragraph (a); and 15 (ii) must consider any written submissions made under 16 that paragraph. 17 `(3) The regulator may amend the earlier schedule only if 18 satisfied-- 19 (a) the earlier schedule was given to the regulator in good 20 faith; and 21 (b) the period to bring the electricity loads supplied to the 22 relevant business or enterprise to more than 750 GWh a 23 year has not been, and will not be, more than 4 years 24 from when the business or enterprise first consumes or 25 consumed electricity for production; and 26 (c) either-- 27 (i) the proponent has made all reasonable attempts to 28 comply with the earlier schedule; or 29 (ii) any inability to comply with the earlier schedule 30 was caused by a circumstance or event beyond the 31 proponent's control that the proponent took all 32 reasonable steps to avoid; or 33

106 Electricity Amendment Bill 2004 (iii) a material change in circumstances for the 1 significant project has unavoidably caused a need 2 to amend the earlier schedule. 3 `(4) If the regulator decides to refuse the application, the regulator 4 must, as soon as practicable, give the applicant and any other 5 interested person for any of the exempted loads of whom the 6 regulator is aware an information notice about the decision. 7 `135GP Condition for continuity of supply 8 `(1) This section applies if the application is granted and, when it 9 is granted, the total of the electricity loads supplied to the 10 business or enterprise is more than 750 GWh a year. 11 `(2) It is a condition of the State development exemption that the 12 supply must not be reduced to 750 GWh a year or less unless 13 the reduction was caused by-- 14 (a) energy efficiency initiatives and the production of the 15 business or enterprise has not declined; or 16 (b) an unavoidable act of nature; or 17 (c) a circumstance or event that-- 18 (i) was beyond the control of the proponent of the 19 significant project; and 20 (ii) the proponent took all reasonable steps to avoid. 21 22 Example of an event-- 23 an emergency water prohibition or reduction under the Water Act 24 2000, section 2278 `135GQ Reporting condition 25 `(1) It is a condition of the exemption that if an interested person 26 for the exempted load becomes aware of the happening of an 27 event as follows, the interested person must give the regulator 28 notice of the event as soon as practicable-- 29 (a) the supply falls to 750 GWh a year or less; 30 78 Water Act 2000, section 22 (Limiting or prohibiting taking, or interfering with, water during emergencies)

107 Electricity Amendment Bill 2004 (b) another material change in the circumstances under 1 which the exemption was granted. 2 `(2) The notice must also state the reasons for the happening of the 3 event.79 4 `Subdivision 3 Renewable energy exemption 5 `135GR Operation of sdiv 3 6 `(1) This subdivision gives the regulator power to grant a liable 7 load exemption for an electricity load supplied by an on-site 8 generator or under a direct supply arrangement under which a 9 power station supplies electricity to an end user in the State 10 using a dedicated line to the extent the electricity is generated 11 from a renewable energy source-- 12 (a) of a type prescribed under a regulation (a prescribed 13 renewable energy source); or 14 (b) recognised under a law or program prescribed under a 15 regulation about renewable energy (a recognised 16 program). 17 `(2) An electricity load mentioned in subsection (1) is called 18 eligible renewable electricity. 19 `(3) Sections 135GV(2) and 135GW80 adjust the extent mentioned 20 in subsection (1) to allow for minor supplementation of 21 electricity generation from fuels that are not a prescribed 22 renewable energy source or under a recognised program. 23 `135GS Making application 24 `(1) Any interested person for the load may apply for the 25 exemption. 26 `(2) The application must-- 27 (a) be in the approved form; and 28 79 See also section 135JS (Additional information about reports and other matters). 80 Sections 135GV (Steps after deciding application) and 135GW (Ineligible fuel allowance)

108 Electricity Amendment Bill 2004 (b) identify the electricity load; and 1 (c) be accompanied by evidence-- 2 (i) that the electricity is supplied by an on-site 3 generator or of the direct supply arrangement; and 4 (ii) that the electricity load is generated from a 5 prescribed renewable energy source or under a 6 recognised program; and 7 (d) include information that will allow the regulator to 8 decide the extent to which the electricity is eligible 9 renewable electricity; and 10 (e) be accompanied by the fee prescribed under a 11 regulation. 12 `135GT Notice to other interested persons 13 `The applicant must give any other interested person for the 14 electricity load-- 15 (a) a copy of the application; and 16 (b) a notice stating that the interested person may make, 17 within 20 business days after the person is given the 18 notice, written submissions to the regulator about the 19 application. 20 `135GU Deciding application 21 `(1) The regulator must decide whether to grant or refuse the 22 application. 23 `(2) However, if section 135GT applies, the regulator-- 24 (a) must not make the decision until the applicant has 25 complied with that section; and 26 (b) must consider any written submissions made under that 27 section. 28 `(3) Also, the regulator may grant the application only if satisfied 29 the electricity is-- 30 (a) supplied by an on-site generator or under a direct supply 31 arrangement using a dedicated line; and 32

109 Electricity Amendment Bill 2004 (b) generated-- 1 (i) from a prescribed renewable energy source; or 2 (ii) under a recognised program. 3 `135GV Steps after deciding application 4 `(1) If the regulator decides to grant the application, the regulator 5 must-- 6 (a) decide the extent to which the electricity is eligible 7 renewable electricity; and 8 (b) decide the term of the exemption; and 9 (c) give the applicant a certificate in the approved form 10 about the exemption; and 11 (d) give each interested person for the load a copy of the 12 certificate. 13 `(2) If-- 14 (a) apart from this subsection, the regulator would have 15 decided that the electricity is 90% or more eligible 16 renewable electricity; and 17 (b) all of the electricity is supplied by an on-site generator 18 or under a direct supply arrangement; 19 the regulator must decide that 100% of the electricity is 20 eligible renewable electricity. 21 `(3) The term of the exemption-- 22 (a) must not be more than 15 years; and 23 (b) may start at any day not before 1 January 2005; and 24 (c) is subject to any cancellation or suspension under 25 subdivision 8. 26 `(4) If the regulator makes any of the following decisions, the 27 regulator must give the applicant and each interested person 28 an information notice about the decision-- 29 (a) a decision to refuse the application; 30

110 Electricity Amendment Bill 2004 (b) a decision about the extent to which the electricity is 1 eligible renewable electricity, other than an extent to 2 which the applicant has agreed. 3 `135GW Ineligible fuel allowance 4 `If-- 5 (a) under section 135GV, the regulator has decided an 6 extent to which the electricity is eligible renewable 7 electricity; and 8 (b) the extent is less than 90%; 9 the percentage is adjusted by an allowance of 1.112. 10 11 Example-- 12 The decided extent is 80%. The adjusted percentage is 89% 13 (0.80 x 1.112). `135GX General conditions of exemption 14 `It is a condition of the exemption that the electricity load the 15 subject of the exemption must continue to be-- 16 (a) supplied by an on-site generator or under a direct supply 17 arrangement; and 18 (b) generated from a prescribed renewable energy source or 19 under a recognised program. 20 `135GY Reporting condition 21 `It is a condition of the exemption that, if an interested person 22 for the exempted load becomes aware of the happening of an 23 event as follows the interested person must give the regulator 24 notice of the event as soon as practicable-- 25 (a) the electricity load the subject of the exemption ceases 26 to be-- 27 (i) supplied by an on-site generator or under a direct 28 supply arrangement; or 29 (ii) generated from a prescribed renewable energy 30 source or under a recognised program; 31

111 Electricity Amendment Bill 2004 (b) a change in the energy source for the electricity that is 1 relevant to the extent of eligible renewable electricity 2 decided by the regulator.81 3 `Subdivision 4 Power station auxiliary load 4 exemption 5 `135GZ Operation of sdiv 4 6 `This subdivision gives the regulator power to grant a liable 7 load exemption for an electricity load used for an auxiliary 8 load for a power station. 9 `135H Making application 10 `(1) Any interested person for the load may apply for the 11 exemption. 12 `(2) The application must-- 13 (a) be in the approved form; and 14 (b) identify the power station and the electricity load; and 15 (c) state each person who is an interested person for the 16 load; and 17 (d) include information that will allow the regulator to 18 decide the extent to which the electricity is an auxiliary 19 load; and 20 (e) be accompanied by-- 21 (i) evidence that the load is an auxiliary load for the 22 power station; and 23 (ii) the fee prescribed under a regulation. 24 `135HA Notice to other interested persons 25 `The applicant must give any other interested person for the 26 electricity load-- 27 81 See also section 135JS (Additional information about reports and other matters).

112 Electricity Amendment Bill 2004 (a) a copy of the application; and 1 (b) a notice stating that the interested person may make, 2 within 20 business days after the person is given the 3 notice, written submissions to the regulator about the 4 application. 5 `135HB Deciding application 6 `(1) The regulator must decide whether to grant or refuse the 7 application. 8 `(2) However, if section 135HA applies, the regulator-- 9 (a) must not make the decision until the applicant has 10 complied with that section; and 11 (b) must consider any written submissions made under that 12 section. 13 `(3) The regulator may grant the application only if satisfied the 14 electricity load is an auxiliary load for the power station. 15 `135HC Steps after deciding application 16 `(1) If the regulator decides to grant the application, the regulator 17 must-- 18 (a) decide the extent to which the liable load exemption is 19 granted; and 20 (b) decide the term of the exemption; and 21 (c) give the applicant a certificate in the approved form 22 about the exemption; and 23 (d) give each interested person for the auxiliary load a copy 24 of the certificate. 25 `(2) The term of the exemption-- 26 (a) must not be more than 15 years; and 27 (b) may start at any day after 31 December 2004; and 28 (c) is subject to any cancellation or suspension under 29 subdivision 8. 30

113 Electricity Amendment Bill 2004 `(3) If the regulator decides to refuse the application or grant the 1 exemption for a load less than the load sought in the 2 application, the regulator must give the applicant and each 3 interested person an information notice about the decision. 4 `135HD General condition of exemption 5 `It is a condition of the exemption that the electricity load the 6 subject of the exemption must continue to be an auxiliary 7 load. 8 `135HE Reporting condition 9 `It is a condition of the exemption that if an interested person 10 for the exempted load becomes aware of a material change in 11 the circumstances under which the exemption was granted, 12 the interested person must give the regulator notice of the 13 event as soon as practicable.82 14 `Subdivision 5 General conditions of liable load 15 exemptions 16 `135HF Annual fee and exemption compliance report 17 `(1) It is a condition of each liable load exemption that each 18 interested person for the exempted load must, on or before the 19 relevant day in each year during which the exemption is in 20 force (the current year), ensure the regulator is given the 21 following for the previous year-- 22 (a) an exemption compliance report for the last year, in the 23 approved form; 24 (b) the annual fee prescribed for the current year, as 25 prescribed under a regulation. 26 `(2) However, if there is more than 1 interested person for the load, 27 only 1 exemption compliance report and only 1 annual fee 28 need be given by them jointly. 29 82 See also section 135JS (Additional information about reports and other matters).

114 Electricity Amendment Bill 2004 `(3) In this section-- 1 relevant day means-- 2 (a) generally--the last business day in April; or 3 (b) if the regulator has, by notice given to each of the 4 interested persons, fixed a later day--the later day. 5 `135HG Obligation to keep documents relating to exemption 6 `(1) It is a condition of each liable load exemption that each 7 interested person for the exempted load must ensure 8 documents relevant to the exemption and compliance with its 9 conditions are kept by an interested person for the exempted 10 load for at least the required period. 11 `(2) Each interested person for the exempted load must comply 12 with the condition unless the person has a reasonable excuse. 13 Maximum penalty--200 penalty units. 14 `(3) In this section-- 15 required period means 5 years from the giving of the 16 exemption compliance report under section 135HF to which 17 the documents relate. 18 `Subdivision 6 Amending liable load exemption by 19 application 20 `135HH Applying for amendment 21 `(1) An interested person for an exempted load may, in the 22 approved form, apply to the regulator to amend the exemption 23 in a stated way, other than to change a condition imposed 24 under this division. 25 `(2) The application must be accompanied by the fee prescribed 26 under a regulation. 27 `135HI Notice to other interested persons 28 `The applicant must give any other interested person for the 29 exempted load-- 30

115 Electricity Amendment Bill 2004 (a) a copy of the application; and 1 (b) a notice stating that the interested person may make, 2 within 20 business days after the person is given the 3 notice, written submissions to the regulator about the 4 application. 5 `135HJ Deciding application 6 `(1) The regulator must decide to make or refuse to make the 7 amendment. 8 `(2) However, if section 135HI applies, the regulator-- 9 (a) must not make the decision until the applicant has 10 complied with that section; and 11 (b) must consider any written submissions made under that 12 section. 13 `(3) If the decision is to make the amendment, the regulator must, 14 as soon as practicable-- 15 (a) give the applicant an amended certificate of exemption 16 that reflects the amendment; and 17 (b) give any interested person a copy of the amended 18 certificate. 19 `(4) If the decision is to refuse to make the amendment, the 20 regulator, must, as soon as practicable, give the applicant and 21 any interested person an information notice about the 22 decision. 23 `Subdivision 7 Amendment of liable load 24 exemption by regulator without 25 proposed action notice 26 `135HK Amendments for which proposed action notice not 27 required 28 `(1) The regulator may amend a liable load exemption at any time 29 by taking the action mentioned in subsection (2) if the 30 amendment-- 31

116 Electricity Amendment Bill 2004 (a) is to correct a clerical or formal error; or 1 (b) does not significantly affect the interests of any 2 interested person for the relevant exempted load and 3 each interested person has, in writing, agreed to the 4 amendment. 5 `(2) For subsection (1), the action is giving each interested person 6 for the load an amended certificate of exemption that reflects 7 the amendment. 8 `Subdivision 8 Other amendments, cancellation 9 and suspension of liable load 10 exemption 11 `135HL Conditions for other amendments, cancellation or 12 suspension 13 `(1) The regulator may amend, cancel or suspend a liable load 14 exemption if-- 15 (a) the regulator considers it necessary or desirable; and 16 (b) an event mentioned in subsection (2) has happened; and 17 (c) the procedure under sections 135HM to 135HP is 18 followed. 19 `(2) For subsection (1)(b), the event is that-- 20 (a) the exemption was obtained because of a materially 21 false or misleading declaration or representation, made 22 orally or in writing; or 23 (b) a condition of the exemption has not been complied 24 with; or 25 (c) there has been a material change in the circumstances 26 under which the exemption was granted. 27 `135HM Notice of proposed action 28 `(1) The regulator must give each interested person for the relevant 29 exempted load of whom the regulator is aware, notice stating 30 each of the following-- 31

117 Electricity Amendment Bill 2004 (a) the action (the proposed action) the regulator proposes 1 to take under this division; 2 (b) the grounds for the proposed action; 3 (c) the facts and circumstances that are the basis for the 4 grounds; 5 (d) if the proposed action is to amend--the proposed 6 amendment; 7 (e) if the proposed action is to suspend--the proposed 8 suspension period; 9 (f) that the interested person may make, within a stated 10 period, written submissions to show why the proposed 11 action should not be taken. 12 `(2) The stated period must end at least 20 business days after the 13 notice is given. 14 `135HN Considering submissions 15 `(1) The regulator must consider any written submission made 16 under section 135HM(1)(f) within the period stated in the 17 notice. 18 `(2) If the regulator at any time decides not to take the proposed 19 action, the regulator must, as soon as practicable, give each 20 interested person of whom the regulator is aware notice of the 21 decision. 22 `135HO Decision on proposed action 23 `If, after complying with section 135HN, the regulator still 24 believes a ground exists to take the proposed action, the 25 regulator may decide to-- 26 (a) if the proposed action was to amend--make the 27 amendment; or 28 (b) if the proposed action was to suspend for a stated 29 period--suspend for no longer than the proposed 30 suspension period; or 31 (c) if the proposed action was to cancel-- 32

118 Electricity Amendment Bill 2004 (i) cancel the exemption; or 1 (ii) suspend it for a stated period. 2 `135HP Notice and taking of effect of proposed action decision 3 `(1) The regulator must, as soon as practicable after making a 4 decision under section 135HO, give each interested person for 5 the relevant exempted load of whom the regulator is aware, an 6 information notice about the decision. 7 `(2) Subject to subdivision 9, the decision takes effect on the later 8 of the following-- 9 (a) the day the information notice is given; 10 (b) a later day of effect stated in the notice. 11 `Subdivision 9 Consequences of particular 12 cancellations 13 `135HQ Liable load exemption obtained because of false or 14 misleading declaration or representation 15 `If-- 16 (a) a liable load exemption is cancelled; and 17 (b) a ground for the cancellation is that the exemption was 18 obtained because of a materially false or misleading 19 declaration or representation; 20 the cancelled exemption is, other than for section 135FD,83 21 taken never to have had any effect. 22 `135HR Cancellation of State development exemption for 23 contravention of condition for proposed supply 24 `(1) This section applies if-- 25 (a) a State development exemption is cancelled; and 26 83 Section 135FD (Self-assessment report)

119 Electricity Amendment Bill 2004 (b) a ground for the cancellation is that the condition under 1 section 135GN has been not been complied with.84 2 `(2) The liable load exemption is, other than for section 135FD, 3 taken never to have had any effect. 4 `(3) Despite any other provision of this part, the user of the 5 relevant electricity load is taken to have always been the liable 6 person for the liable loads that were, other than for 7 subsections (1) or (2), the subject of the cancelled liable load 8 exemption. 9 `(4) Subsection (3) does not affect who, after the cancellation, is 10 the liable person for the liable loads. 11 `135HS Consequence of cancellation of State development 12 exemption for contravention of condition for 13 continuity of supply 14 `(1) This section applies if-- 15 (a) a State development exemption is cancelled; and 16 (b) a ground for the cancellation is that the condition under 17 section 135GP85 has not been complied with. 18 `(2) The cancelled exemption is, other than for section 135FD, 19 taken never to have had any effect from the beginning of the 20 year in which the failure to comply happened. 21 `(3) Despite any other provision of this part, the user of the 22 relevant electricity load is taken to have always been the liable 23 person for the liable loads that were, other than for 24 subsections (1) and (2), the subject of the cancelled liable load 25 exemption for the year in which the failure to comply 26 happened. 27 `(4) Subsection (3) does not affect who, for any later year, is the 28 liable person for the liable loads. 29 84 Section 135GN (Condition for proposed supply) 85 Section 135GP (Condition for continuity of supply)

120 Electricity Amendment Bill 2004 `135HT Consequence of cancellation of other exemptions 1 for contravention of general condition 2 `If-- 3 (a) a liable load exemption granted under subdivision 3 4 or 486 is cancelled; and 5 (b) a ground for the cancellation is that the condition under 6 section 135GX or 135HD has not been complied with;87 7 the cancelled exemption is, other than for section 135FD, 8 taken never to have had any effect after the failure to comply 9 happened. 10 `Division 7 Non-liable loads 11 `135HU Emergency stand-by plant 12 `(1) Electricity generated by emergency stand-by plant is a 13 non-liable load if-- 14 (a) the generation happened during an emergency; or 15 (b) an electricity restriction regulation or emergency 16 rationing order applies to the person generating the 17 electricity and the purpose of the generation was to 18 supplement electricity supply limited under the 19 regulation or order. 20 `(2) In this section-- 21 emergency stand-by plant means generation plant that-- 22 (a) supplements the supply (the normal supply) of 23 electricity from another generation plant or a major grid; 24 and 25 (b) does not generate electricity as part of the normal 26 operating cycle of the other plant or supply from the 27 grid; and 28 86 Subdivisions 3 (Renewable energy exemption) and 4 (Power station auxiliary load exemption) 87 Section 135GX (General condition of exemption) or 135HD (General condition of exemption)

121 Electricity Amendment Bill 2004 (c) only generates electricity-- 1 (i) while all or part of the normal supply has failed; or 2 (ii) for start-up proving tests. 3 `135HV Immaterial loads 4 `If, other than for this section, the total of all liable loads for 5 which a person would be the liable person is 100 MWh or less 6 in a year the loads are non-liable loads. 7 `135HW Electricity sold under special remote area 8 arrangement 9 `An electricity load is a non-liable load if it is sold under 10 special approval number 6/98 to the property called `Naryilco 11 Pastoral Station'. 12 `135HX Electricity sold under retailer of last resort scheme or 13 similar scheme 14 `(1) An electricity load is a non-liable load if it is sold to a 15 customer under a retailer of last resort scheme made under 16 section 131A. 17 `(2) If-- 18 (a) under a provision of a regulation, a retailer (the host 19 retailer) is taken to have entered into a customer sale 20 contract with a customer because of the suspension of 21 another retailer from trading under the Market Code; 22 and 23 (b) under the contract, the host retailer sells an electricity 24 load to the customer; 25 the electricity load is a non-liable load.88 26 88 See the regulation, section 70 (Statutory customer sale contract).

122 Electricity Amendment Bill 2004 `135HY Electricity sold under s 49A(3) contract 1 `(1) This section applies if, under section 49A(3), a contestable 2 customer and a host retail entity are taken to have entered into 3 a contract and the contract is not, under section 49A(5), taken 4 to have ended. 5 `(2) An electricity load sold under the contract is a non-liable load 6 if it is supplied within 3 months after the contract is taken to 7 have been made under section 49A(1) and (3). 8 `135HZ Electricity sold or supplied to Boyne Island Smelter 9 `(1) An electricity load is a non-liable load if it is directly or 10 indirectly sold or supplied to the smelter as defined under the 11 State agreement. 12 `(2) Subsection (1) ceases to apply if clause 1289 of the State 13 agreement ceases to be in force. 14 `(3) In this section-- 15 State agreement means the State agreement as defined under 16 the Gladstone Power Station Agreement Act 1993. 17 `Part 6 Scheme participants 18 `135I Applying for registration 19 `(1) Any person may, in the approved form, apply to the regulator 20 to be registered as a scheme participant. 21 `(2) The application must state-- 22 (a) whether the applicant is an interested or a liable person 23 for an electricity load; and 24 (b) if the application states that the applicant is not an 25 interested or a liable person-- 26 (i) the applicant's primary business; and 27 89 Clause 12 (No State electricity taxes) of the State agreement

123 Electricity Amendment Bill 2004 (ii) the applicant's reasons for seeking the registration. 1 `(3) The application must be accompanied by the fee prescribed 2 under a regulation. 3 `135IA Right to registration 4 `If the regulator is satisfied the application complies with 5 section 135I, the regulator must, by complying with 6 section 135JH,90 register the person as a scheme participant in 7 the scheme participant register.91 8 `135IB Term of registration 9 `(1) Registration as a scheme participant takes effect on the day of 10 effect as stated in the scheme participant register, or if the 11 register states no day of effect, the day the participant is 12 registered. 13 `(2) The day of effect may be any day after 31 December 2004. 14 `(3) Subject to suspension under section 135ID, the registration 15 continues in force until 31 December 2020, unless it is sooner 16 surrendered under section 135IE. 17 `135IC Annual fee for particular scheme participants 18 `(1) This section applies to a scheme participant, other than-- 19 (a) an accredited generator; or 20 (b) a person who, under section 135GH(1), is taken to be 21 registered under part 6 as a scheme participant.92 22 `(2) The scheme participant must, on or before the last business 23 day in April in each year, pay the regulator the annual fee for 24 that year, as prescribed under a regulation. 25 90 Section 135JH (Required information for scheme participant register) 91 For the rights of scheme participants to own, mortgage or transfer GECs, see part 4, division 4, subdivisions 1 (Transfers) and 2 (Mortgages). 92 Section 135GH (Who obtains the benefit of liable load exemption)

124 Electricity Amendment Bill 2004 `135ID Partial suspension for non-payment of annual fee 1 `(1) This section applies if a scheme participant does not comply 2 with section 135IC. 3 `(2) While the scheme participant continues not to comply with 4 section 135IC, the participant's registration as a scheme 5 participant is suspended. 6 `(3) The suspension ends if the failure to comply ends. 7 `(4) The effect of the suspension is that until it ends the scheme 8 participant can not-- 9 (a) transfer any GECs; or 10 (b) accept the transfer of any GECs. 11 `(5) The suspension does not-- 12 (a) affect the scheme participant's ownership of any GEC 13 the participant owned immediately before the 14 suspension;93 or 15 (b) prevent the scheme participant from making a surrender 16 application for a GEC mentioned in paragraph (a). 17 `135IE Surrender of registration 18 `(1) A scheme participant, other than an accredited generator, may 19 by notice to the regulator, surrender the participant's 20 registration as a scheme participant. 21 `(2) However-- 22 (a) the notice can not be given if the scheme participant is 23 the registered owner of a GEC; and 24 (b) if the scheme participant owes the regulator an amount 25 for an annual or other fee under this chapter, the 26 participant may give the notice only if it is accompanied 27 by payment of the amount. 28 93 See sections 135DN (Ownership of GEC on registration) and 135DW (Ownership of GEC on transfer).

125 Electricity Amendment Bill 2004 `Part 7 Monitoring 1 `Division 1 Approved auditors 2 `135IF Appointment and qualifications 3 `(1) The regulator may, by instrument, appoint a person, whether 4 or not the person is an officer of the department, as an 5 approved auditor. 6 `(2) However, the regulator may appoint a person as an approved 7 auditor only if-- 8 (a) the person makes application for appointment in the way 9 prescribed under a regulation; and 10 (b) either-- 11 (i) the regulator is satisfied the person is qualified for 12 appointment because the person has the necessary 13 expertise or experience to carry out an audit under 14 this part; or 15 (ii) the person has satisfactorily finished training 16 approved by the regulator. 17 `(3) Also, the regulator may appoint a corporation as an approved 18 auditor only if satisfied it has employees or officers who are 19 approved auditors and who are appropriate to carry out audits 20 under this part for the corporation. 21 `135IG Appointment conditions and limit on powers 22 `(1) An approved auditor holds office on any conditions stated 23 in-- 24 (a) the auditor's instrument of appointment; or 25 (b) a signed notice given to the auditor; or 26 (c) a regulation.94 27 94 See also section 135IV (Who may carry out audit).

126 Electricity Amendment Bill 2004 `(2) Without limiting subsection (1), the instrument of 1 appointment, a signed notice given to the approved auditor or 2 a regulation may impose a condition that-- 3 (a) the approved auditor must hold, and continue to hold 4 another stated office; and 5 (b) if the approved auditor ceases to hold the other office the 6 auditor's appointment ceases. 7 `(3) The instrument of appointment, a signed notice given to the 8 auditor or a regulation may limit the auditor's powers or 9 functions under this Act. 10 `(4) In this section-- 11 signed notice means a notice signed by the regulator. 12 `135IH Applying for and obtaining appointment as an 13 approved auditor 14 `(1) A person may apply to the regulator for appointment under 15 section 135IF as an approved auditor. 16 `(2) The application must be-- 17 (a) in the approved form; and 18 (b) accompanied by-- 19 (i) evidence that the applicant is qualified as 20 mentioned in section 135IF(2)(b)(i) or has 21 satisfactorily finished training as mentioned in 22 section 135IF(2)(b)(ii); and 23 (ii) the fee prescribed under a regulation. 24 `(3) The regulator must decide whether to grant or refuse the 25 application. 26 `(4) If the regulator decides to grant the application, the regulator 27 must issue the approved auditor's instrument of appointment 28 as soon as practicable. 29 `(5) If the regulator makes any of the following decisions, the 30 regulator must, as soon as practicable, give the applicant an 31 information notice about the decision-- 32 (a) a decision to refuse the application; 33

127 Electricity Amendment Bill 2004 (b) a decision under section 135IG(1)(a) or (b) to impose a 1 condition on the applicant's instrument of appointment 2 as an approved auditor. 3 `(6) However, subsection (5)(b) does not apply for a condition that 4 is the same, or is to the same effect, as a condition agreed to or 5 requested by the applicant. 6 `135II Issue of identity card 7 `(1) The regulator must issue an identity card to each approved 8 auditor. 9 `(2) The identity card must-- 10 (a) contain a recent photo of the auditor; and 11 (b) contain a copy of the auditor's signature; and 12 (c) identify the person as an approved auditor under this 13 Act; and 14 (d) state an expiry date for the card. 15 `(3) This section does not prevent the issue of a single identity 16 card to a person for this Act and for other purposes. 17 `135IJ Production or display of identity card 18 `(1) In exercising a power or performing a function under this Act 19 in relation to a person, an approved auditor must produce the 20 auditor's identity card for the person's inspection if asked by 21 the person. 22 `(2) However, if it is not practicable to comply with subsection (1), 23 the auditor must produce the identity card for the person's 24 inspection at the first reasonable opportunity. 25 `135IK When approved auditor ceases to hold office 26 `(1) An approved auditor ceases to hold office if any of the 27 following happens-- 28 (a) the term of office stated in a condition of office ends; 29 (b) under another condition of office, the auditor ceases to 30 hold office; 31

128 Electricity Amendment Bill 2004 (c) the auditor's resignation takes effect. 1 `(2) Subsection (1) does not limit the ways an approved auditor 2 may cease to hold office. 3 `(3) In this section-- 4 condition of office means a condition on which the auditor 5 holds office. 6 `135IL Revocation of approved auditor's appointment 7 `(1) The regulator may revoke a person's appointment as an 8 approved auditor's only if-- 9 (a) either-- 10 (i) the person obtained the appointment because of a 11 materially false or misleading declaration or 12 representation, made orally or in writing; or 13 (ii) the person has not complied with a provision of 14 this chapter or a condition of the appointment; or 15 (iii) the person is a corporation and it does not have 16 employees or officers who are approved auditors 17 and who are appropriate to carry out audits under 18 this part for the corporation; and 19 (b) subsections (2) to (4) have been complied with. 20 `(2) The regulator must give the person notice stating-- 21 (a) that the regulator proposes to revoke the appointment; 22 and 23 (b) the grounds for the proposed revocation; and 24 (c) that the person may make, within a stated period, written 25 submissions to show why the appointment should not be 26 revoked. 27 `(3) The stated period must end at least 20 business days after the 28 notice is given. 29 `(4) The regulator must, before deciding whether to revoke the 30 appointment, consider any written submission made under 31 subsection (2)(c) by the person within the stated period. 32

129 Electricity Amendment Bill 2004 `(5) If the regulator at any time decides not to revoke the 1 appointment, the regulator must, as soon as practicable, give 2 the person notice of the decision. 3 `(6) The regulator must, as soon as practicable after deciding to 4 revoke the appointment, give the person an information notice 5 about the decision. 6 `(7) A decision to revoke the appointment takes effect on the later 7 of the following-- 8 (a) the day the information notice is given; 9 (b) a later day of effect stated in the notice. 10 `(8) However, if the decision was to revoke because of a 11 conviction, the revocation-- 12 (a) does not take effect until-- 13 (i) the period to appeal against the conviction ends; 14 and 15 (ii) if an appeal is made against the conviction--the 16 appeal is finally decided or is otherwise ended; and 17 (b) has no effect if the conviction is quashed on appeal. 18 `135IM Resignation 19 `An approved auditor may resign by signed notice given to the 20 regulator. 21 `135IN Return of identity card 22 `A person who ceases to be an approved auditor must return 23 the person's identity card to the regulator within 20 business 24 days after ceasing to be an approved auditor, unless the person 25 has a reasonable excuse. 26 Maximum penalty--40 penalty units. 27

130 Electricity Amendment Bill 2004 `Division 2 Required audits 1 `135IO Who is an auditable person 2 `Each of the following is an auditable person-- 3 (a) an accredited generator; 4 (b) a liable person; 5 (c) a person the regulator reasonably suspects may be a 6 liable person; 7 (d) an interested person for an exempted load; 8 (e) a person who has made an application under this chapter 9 that has not been decided. 10 `135IP Regulator may require audit 11 `(1) The regulator may, by written notice that complies with 12 section 135IQ (an audit notice) require an auditable person to 13 commission an approved auditor to-- 14 (a) carry out an audit by an approved auditor about a stated 15 matter relevant to this chapter; and 16 17 Example of a stated matter-- 18 GEC creation by the accredited generator (b) give the regulator within a stated reasonable period a 19 report about the audit that contains the information 20 prescribed under a regulation and any other information 21 required in the audit notice.95 22 `(2) For subsection (1), the regulator may, to monitor compliance 23 with this chapter, give an audit notice on a random or another 24 basis not directly connected with the auditable person. 25 `135IQ Required contents for audit notice 26 `(1) An audit notice must state-- 27 95 See also section 135JS (Additional information about reports and other matters).

131 Electricity Amendment Bill 2004 (a) the name of the person who must commission the audit; 1 and 2 (b) each matter for which the audit is required; and 3 (c) that the person must-- 4 (i) commission an approved auditor to carry out an 5 audit about each of the matters; and 6 (ii) give the regulator a report by the auditor about the 7 audit within a stated reasonable period. 8 `(2) Also, an audit notice must be accompanied by or include an 9 information notice about the decision to give the notice and to 10 fix the stated period. 11 `135IR Failure to comply with audit notice 12 `A person to whom an audit notice has been given must 13 comply with the notice, unless the person has a reasonable 14 excuse. 15 Maximum penalty--200 penalty units. 16 `135IS Costs of complying with audit notice 17 `A person to whom an audit notice has been given must pay 18 any costs incurred by the person in relation to complying with 19 the notice. 20 `Division 3 Audits by regulator 21 `135IT Regulator may carry out audit 22 `(1) The regulator may decide to commission an approved auditor 23 to-- 24 (a) carry out an audit about a stated matter concerning an 25 auditable person; and 26 (b) give the regulator within a stated reasonable period a 27 report about the audit that contains the information 28 prescribed under a regulation and any other information 29 required in the audit notice. 30

132 Electricity Amendment Bill 2004 `(2) The regulator may, to monitor compliance with this chapter, 1 make a decision under subsection (1) on a random or another 2 basis not directly connected with the auditable person. 3 `(3) If the regulator makes a decision under subsection (1), the 4 regulator must give the auditable person an information notice 5 about the decision. 6 `(4) The regulator must, within 10 business days after receiving 7 the report, give the auditable person a copy. 8 `135IU Regulator's costs of audit or report 9 `(1) This section applies if the regulator has incurred costs in 10 commissioning an audit under section 135IT, including, for 11 example, the approved auditor's costs of carrying out the 12 audit or giving the regulator a report about the audit. 13 `(2) The auditable person must pay the amount of the costs if-- 14 (a) the costs were properly and reasonably incurred; and 15 (b) the regulator has by notice asked the party to pay the 16 amount. 17 `(3) The regulator may recover the amount as a debt. 18 `Division 4 General provisions for audits 19 `135IV Who may carry out audit 20 `A person must not carry out, or purport to carry out, an audit 21 under this part unless-- 22 (a) the person is an approved auditor; and 23 (b) the conditions of the person's appointment as an 24 approved auditor do not prevent the person from 25 carrying out the audit; and 26 (c) the person complies with the conditions.96 27 Maximum penalty--200 penalty units. 28 96 For conditions of appointment, see section 135IG (Appointment conditions and limit on powers).

133 Electricity Amendment Bill 2004 `135IW False or misleading statement in audit report 1 `(1) An approved auditor must not give the regulator a report about 2 an audit that contains a statement that the auditor knows is 3 false or misleading in a material particular. 4 Maximum penalty--300 penalty units. 5 `(2) In a proceeding for an offence against subsection (1), it is 6 enough for a charge to state that the statement was, without 7 specifying which, `false or misleading'. 8 `Part 8 Miscellaneous provisions 9 `Division 1 Additional provisions for 10 applications 11 `135IX Meaning of application and applicant for div 1 12 `In this division-- 13 (a) the applicant, for the creation of a GEC that the 14 regulator must make a decision about under 15 section 135DJ,97 means the accredited generator who 16 created the GEC; and 17 (b) an application includes the creation of a GEC that the 18 regulator must make a decision about under 19 section 135DJ. 20 `135IY Substantial compliance with application 21 requirements may be accepted 22 `If-- 23 (a) a person has made, or purported to make, an application 24 under this chapter; and 25 97 Section 135DJ (Deciding of validity and registration)

134 Electricity Amendment Bill 2004 (b) the requirements under this chapter for making the 1 application have not been complied with; and 2 (c) the regulator is reasonably satisfied the information 3 provided in or with the application is enough to allow 4 the regulator to decide the application in the way 5 required under this chapter; 6 the regulator may decide to allow the application to proceed 7 as if it did comply with the requirements. 8 `135IZ Additional information or inspection may be required 9 `(1) This section applies if the regulator is deciding, or is required 10 to decide, an application under this chapter. 11 `(2) The regulator may, by notice, require the applicant to-- 12 (a) give the regulator within a stated reasonable period-- 13 (i) additional information about, or a document 14 relevant to, the application; or 15 (ii) a statutory declaration or independent evidence of 16 a stated type verifying any information included in 17 the application or any additional information 18 required under subparagraph (i); and 19 20 Example of independent evidence-- 21 a chemical analysis, by a chemist independent of the 22 applicant, of gases the applicant claims are eligible fuel (b) allow a stated person authorised by the regulator to, at 23 any reasonable time, inspect any power station or other 24 premises relating to the application. 25 `(3) If the applicant does not comply with the notice, the regulator 26 may refuse the application. 27 `(4) The applicant must pay any costs incurred in complying with 28 the notice. 29 `135J Regulator's costs of inspection 30 `(1) This section applies if the regulator has incurred costs-- 31 (a) in the carrying out of an inspection mentioned in 32 section 135IZ(2)(b); or 33

135 Electricity Amendment Bill 2004 (b) in obtaining a report about the inspection. 1 `(2) The applicant to whom the notice under that section was given 2 must pay the amount of the costs if-- 3 (a) the costs were properly and reasonably incurred; and 4 (b) the regulator has by notice asked the applicant to pay the 5 amount. 6 `(3) The regulator may recover the amount as a debt. 7 `(4) Subsection (3) applies whether or not the regulator decides to 8 grant the application. 9 `Division 2 Measurement of electricity 10 `135JA Regulator's power to decide measurement method 11 `(1) The regulator may, under section 135JB, decide a method for 12 working out-- 13 (a) the amount of an electricity load, including a liable 14 electricity load; or 15 (b) the amount of electricity sent out from a power station 16 or delivered to an end user; or 17 (c) an amount incidental to a matter mentioned in 18 paragraph (a) or (b). 19 `(2) In making a decision under subsection (1), the regulator may 20 fix-- 21 (a) if the electricity is metered-- 22 (i) its approved measurement points; and 23 (ii) measurement arrangements for the meter; or 24 25 Examples of measurement arrangements-- 26 · requirements for meter's tolerance for error 27 · required intervals to test the meter (b) if the electricity is unmetered--a methodology to 28 estimate the amount. 29 `(3) For subsection (2)(a)-- 30

136 Electricity Amendment Bill 2004 (a) if the electricity is metered at periods that the regulator 1 does not consider appropriate, the regulator may decide 2 a method that, in part, uses estimates based on previous 3 meter readings; and 4 (b) different measurement arrangements may be approved 5 for different measurement points; and 6 (c) if the regulator is satisfied arrangements for an approved 7 measurement point comply with any relevant 8 requirements under the Market Code, the regulator must 9 approve the arrangements as the measurement 10 arrangements for the measurement point. 11 `135JB Procedure for deciding measurement method 12 `(1) Before making the decision, the regulator must-- 13 (a) give any person of which the regulator is aware who 14 will, under section 135JC, be required to use the 15 method-- 16 (i) notice of the proposed decision; and 17 (ii) a reasonable opportunity to make written 18 submissions about the proposed decision; and 19 (b) consider any submissions made under paragraph (a)(ii). 20 `(2) If the person has not agreed to the decision, the notice must 21 include, or be accompanied by, an information notice about 22 the decision. 23 `135JC Decided method must be applied 24 `(1) If-- 25 (a) for the purposes of this chapter, it is necessary to 26 measure electricity; and 27 (b) the regulator has, under section 135JA, decided a 28 method for measuring the electricity; 29 only the decided method may be used to make the 30 measurement. 31

137 Electricity Amendment Bill 2004 `(2) If the regulator reasonably believes an accredited generator or 1 an interested person98 for an electricity load is not complying 2 with the decided method, the regulator may give the generator 3 or person a written direction stating-- 4 (a) the decided method; and 5 (b) how the regulator believes the generator or person is not 6 complying with the decided method; and 7 (c) that the generator or person is directed to comply with 8 the decided method. 9 `(3) The accredited generator or interested person must comply 10 with the direction.99 11 Maximum penalty--200 penalty units. 12 `135JD Obligation to notify regulator of change in 13 circumstances for decided measurement method 14 `If-- 15 (a) the regulator has, under section 135JA, decided a 16 method for measuring an amount of electricity; and 17 (b) a person who has been given an information notice 18 about the decision becomes aware of a change in 19 circumstances that may affect the appropriateness of the 20 method; 21 the person must, as soon as practicable, give the regulator 22 notice of the change. 23 Maximum penalty--60 penalty units. 24 `Division 3 Registers 25 `135JE Registers 26 `(1) The regulator must keep the following registers-- 27 98 See section 135GG (Who is an interested person for an electricity load). 99 For an accredited generator, see also section 135AX (Compliance with directions by regulator).

138 Electricity Amendment Bill 2004 (a) a register of accredited generators (the accredited 1 generator register); 2 (b) a register of GECs (the GEC register); 3 (c) a register of scheme participants (the scheme 4 participant register); 5 (d) a register of liable load exemptions (the liable load 6 exemption register). 7 `(2) The regulator may also keep other registers relating to this 8 chapter that the regulator considers appropriate, including, for 9 example, registers about undecided applications under this 10 chapter. 11 `135JF Required information for accredited generator register 12 `The regulator must in the accredited generator register 13 include the following information about each accredited 14 generator-- 15 (a) the generator's name and accreditation code; 16 (b) the name of the accredited power station; 17 (c) the power station's accreditation code; 18 (d) the name of the economic operator of the power station. 19 `135JG Required information for GEC register 20 `(1) The regulator must, for each GEC that is in force,100 record the 21 following information in the GEC register-- 22 (a) its registered owner; 23 (b) the day or period the relevant electricity was generated; 24 (c) its vintage year and the month in that year in which the 25 GEC was registered; 26 (d) when, under section 135DS,101 the GEC automatically 27 expires; 28 100 For when a GEC is in force see part 4, divisions 3 (Term of GECs) and 5 (Amendment, cancellation and suspension of GECs). 101 Section 135DS (Automatic expiry)

139 Electricity Amendment Bill 2004 (e) the accreditation code of the power station that 1 generated the relevant eligible gas-fired electricity. 2 `(2) If, under section 135DJ,102 the regulator decides a GEC was 3 not validly created, the regulator may remove its notation 4 from the GEC register. 5 `(3) Sections 135DI, 135DN and 135DW provide for the effect of 6 registration.103 7 `135JH Required information for scheme participant register 8 `The regulator must record in the scheme participant 9 register-- 10 (a) the name of each scheme participant; and 11 (b) a unique scheme code for each scheme participant. 12 `135JI Required information for liable load exemption register 13 `The regulator must in the liable load exemption register 14 include the following for each liable load exemption-- 15 (a) the name and the scheme code of-- 16 (i) the person who applied for the exemption; and 17 (ii) each interested person for the exempted load of 18 whom the regulator is aware; 19 (b) the type of liable load exemption; 20 (c) the name of the relevant project or premises. 21 `135JJ General provisions for register keeping 22 `(1) If an accreditation, GEC, liable load exemption or a scheme 23 participant's registration is cancelled, suspended or 24 surrendered the regulator must, as soon as practicable, record 25 in the appropriate register-- 26 102 Section 135DJ (Deciding of validity and registration) 103 Sections 135DI (When GEC takes effect), 135DN (Ownership of GEC on registration) and 135DW (Ownership of GEC on transfer) See also section 135JT (General evidentiary aids for ch 5A).

140 Electricity Amendment Bill 2004 (a) the cancellation, suspension or surrender, and when it 1 took effect; and 2 (b) for a suspension--when the suspension started, and if it 3 is for a period, when the period is to end. 4 `(2) The regulator may include in a register other information 5 relevant to this chapter if it is not exempt matter under the 6 Freedom of Information Act 1992. 7 `(3) If under this chapter there is a transfer or other change relating 8 to information kept in a register the regulator must-- 9 (a) amend the register to reflect the change; and 10 (b) record in the register when the information was 11 amended. 12 `(4) For subsection (3), the change is made on the later of the 13 following-- 14 (a) if the change requires approval under this 15 chapter--when it was approved; 16 (b) when it takes effect. 17 `(5) In this section-- 18 cancellation, of a GEC, does not include a decision under 19 section 135DJ104 that the GEC was not validly created. 20 `135JK Access to registers 21 `(1) The regulator must keep a register open for inspection by the 22 public during office hours on business days. 23 `(2) Subsection (1) may be complied with by placing a link to the 24 register on the department's web site on the internet.105 25 104 See also part 4, division 5 (Amendment, cancellation and suspension of GECs). 105 At the commencement of this section, the department's web site on the internet could be located at .

141 Electricity Amendment Bill 2004 `Division 4 General offences for ch 5A106 1 `135JL Who is an official 2 `In this division, an official is any of the following-- 3 (a) the regulator; 4 (b) an approved auditor; 5 (c) an inspection officer; 6 (d) a public service officer performing functions under this 7 Act. 8 `135JM Confidentiality of particular information 9 `(1) This section applies if a person gives any of the following 10 information that is not a type that may or must be recorded in 11 a register under this chapter-- 12 (a) information for an application made under this chapter; 13 (b) information in response to a requirement under this 14 chapter. 15 `(2) If an official acquires the information in the official's capacity 16 as an official, the official must not disclose it to any one else, 17 unless the disclosure is-- 18 (a) made with the person's consent; or 19 (b) to another person carrying out functions under this Act; 20 or 21 (c) expressly permitted or required under the Freedom of 22 Information Act 1992 or another Act; or 23 (d) under a direction, order or requirement made in a 24 proceeding. 25 Maximum penalty--100 penalty units. 26 `(3) To remove any doubt, it is declared that subsection (2) 27 continues to apply to the official even if the person ceases to 28 be an official. 29 106 For other relevant offences, see chapter 11, part 1 (Offences).

142 Electricity Amendment Bill 2004 `135JN False or misleading statement 1 `(1) A person must not state anything to an official the person 2 knows is false or misleading in a material particular. 3 Maximum penalty--60 penalty units. 4 `(2) In a proceeding for an offence against this section, it is 5 enough for a charge to state that the statement was, without 6 specifying which, `false or misleading'. 7 `135JO False or misleading document 8 `(1) A person must not give an official a document containing 9 information the person knows is false or misleading in a 10 material particular. 11 Maximum penalty--60 penalty units. 12 `(2) A person must not make an entry in a document required or 13 permitted to be made or kept under this chapter knowing the 14 entry to be false or misleading in a material particular. 15 Maximum penalty--100 penalty units. 16 `(3) In a proceeding for an offence against this section, it is 17 enough for a charge to state that the information or entry was, 18 without specifying which, `false or misleading'. 19 `135JP Obstructing approved auditor 20 `(1) A person must not obstruct an approved auditor in the 21 exercise of a power under this chapter, unless the person has a 22 reasonable excuse. 23 Maximum penalty--40 penalty units. 24 `(2) If a person has obstructed an approved auditor and the auditor 25 decides to proceed with the exercise of the power, the auditor 26 must warn the person that-- 27 (a) it is an offence to obstruct the auditor unless the person 28 has a reasonable excuse; and 29 (b) the auditor considers the person's conduct an 30 obstruction; and 31

143 Electricity Amendment Bill 2004 (c) if the person continues to obstruct the auditor, the 1 auditor may ask a police officer to help the auditor 2 exercise the power. 3 `(3) In this section-- 4 obstruct includes hinder and attempt to obstruct. 5 `135JQ Impersonating approved auditor 6 `A person must not pretend to be an approved auditor. 7 Maximum penalty--80 penalty units. 8 `135JR Notice of change from small grid to major grid 9 `If a small grid becomes a major grid, the person who operates 10 the grid must, within 20 business days, give the regulator 11 notice of the change. 12 Maximum penalty--200 penalty units. 13 `Division 5 Other miscellaneous provisions 14 `135JS Additional information about reports and other matters 15 `(1) This section applies if-- 16 (a) a person is required under this chapter to give the 17 regulator a notice or copy of a document, a report or 18 information (the advice); and 19 (b) the person gives the advice. 20 `(2) The regulator may, by notice, require the person to give, 21 within the reasonable time stated in the notice, written 22 information about the matter for which the advice was given. 23 `(3) The person must comply with the notice unless the person has 24 a reasonable excuse. 25 Maximum penalty for subsection (3)--30 penalty units. 26

144 Electricity Amendment Bill 2004 `135JT General evidentiary aids for ch 5A 1 `(1) A certificate purporting to be signed by the regulator stating 2 any of the following matters is, in the absence of evidence to 3 the contrary, evidence of the matter-- 4 (a) a stated document is any of the following things made, 5 given, or issued under this chapter-- 6 (i) an accreditation; 7 (ii) the eligible electricity guidelines; 8 (iii) a certificate for a liable load exemption; 9 (iv) an appointment as an approved auditor; 10 (v) a measurement method decided under 11 section 135JA;107 12 (vi) an approval under this chapter; 13 (vii) a register under this chapter; 14 (b) a stated document is a copy of a thing mentioned in 15 paragraph (a); 16 (c) on a stated day, or during a stated period, an 17 accreditation, GEC, registration as a scheme participant, 18 liable load exemption or appointment as an approved 19 auditor-- 20 (i) was, or was not, in force; or 21 (ii) was, or was not, subject to a stated condition; or 22 (iii) was, or was not, cancelled; 23 (d) on a stated day, a stated requirement was made of a 24 stated person. 25 `(2) This section does not limit section 135FQ or 248.108 26 107 Section 135JA (Regulator's power to decide measurement method) 108 Section 135FQ (Evidentiary provisions) or 248 (Evidentiary certificates by regulator)

145 Electricity Amendment Bill 2004 `135JU Obligation of State to indemnify particular 1 information-givers 2 `(1) This section applies if-- 3 (a) at the request of the regulator, a relevant entity gives the 4 regulator a document or information; and 5 (b) the document or information was given for the purpose 6 of fixing a QUF or the loss factor for a power station; 7 and 8 (c) the entity or anyone else incurs a cost, damage or loss 9 because of the giving of the information or document. 10 `(2) If-- 11 (a) in a proceeding, the entity is found to be civilly liable 12 for the cost, damage or loss; and 13 (b) the information was given honestly and without 14 negligence; 15 the State must indemnify the entity for the liability. 16 `(3) In this section-- 17 civil liability includes liability for the payment of costs 18 ordered to be paid in a proceeding. 19 relevant entity means-- 20 (a) NEMMCO; or 21 (b) a distribution entity; or 22 (c) a transmission entity. 23 `135JV Approved forms 24 `The regulator may approve forms for use under this chapter. 25

146 Electricity Amendment Bill 2004 `Part 9 Expiry of chapter 1 `135JW Expiry 2 `This chapter expires on 31 December 2020. 3 `135JX Saving of operation of chapter 4 `This chapter is declared to be a law to which the Acts 5 Interpretation Act 1954, section 20A applies.109'. 6 Clause 13 Insertion of new ss 140A and 140B 7 Chapter 6, part 1-- 8 insert-- 9 `140A Entry to place to carry out remedial work 10 `(1) Subject to subsections (2) to (4), an electricity officer for an 11 electricity entity may enter a place to fix damage or harm to 12 the place caused by, or in connection with, works or an 13 electrical installation of the entity. 14 `(2) The entry may be made only if it is made at a reasonable time 15 and-- 16 (a) any occupier of the place to be entered has consented to 17 the entry; or 18 (b) the entity has given any occupier of the place to be 19 entered at least 7 days written notice of the proposed 20 entry. 21 `(3) The notice must state-- 22 (a) the time or times or period of the proposed entry; and 23 (b) the purpose of the proposed entry; and 24 109 Acts Interpretation Act 1954, section 20A (Repeal does not end saving, transitional or validating effect etc.)

147 Electricity Amendment Bill 2004 (c) that the proposed entry is, at the time or times or during 1 the period, permitted under this Act without the 2 occupier's consent. 3 `(4) This section does not authorise entry to a residence. 4 `140B Entry to place to carry out urgent remedial work 5 `(1) Subject to subsections (3), (4) and (6), an electricity officer for 6 an electricity entity may enter a place to fix damage or harm 7 to the place caused by, or in connection with, works or an 8 electrical installation of the entity if the entity is satisfied, on 9 reasonable grounds-- 10 (a) the damage or harm is, or is likely to be, serious; and 11 (b) the need to fix the damage or harm is urgent. 12 `(2) The power under subsection (1) may be exercised-- 13 (a) at any time; and 14 (b) without the consent of, or notice to, the occupier of the 15 place to be entered. 16 `(3) However, if the occupier is present at the place, before 17 entering the place, the officer must do, or make a reasonable 18 attempt to do, the following things-- 19 (a) identify himself or herself to the occupier, in the way 20 stated in section 70;110 21 (b) tell the occupier the purpose of the entry; 22 (c) seek the consent of the occupier to the entry; 23 (d) tell the occupier the officer is permitted under this Act to 24 enter the place without the occupier's consent. 25 `(4) Also, if the occupier is not present at the place, the officer 26 must take reasonable steps to advise the occupier of the 27 officer's intention to enter the place. 28 110 Section 70 (Production or display of electricity officer's identity card)

148 Electricity Amendment Bill 2004 `(5) Subsections (3) and (4) do not require the officer to take a step 1 that the officer reasonably believes may frustrate or otherwise 2 hinder the fixing of the damage or harm. 3 `(6) This section does not authorise entry to a residence.'. 4 Clause 14 Insertion of new s 141A 5 Chapter 6, part 3-- 6 insert-- 7 `141A Duty to avoid damage 8 `In exercising a power under this chapter, an electricity officer 9 must take all reasonable steps to ensure the officer causes as 10 little inconvenience, and does as little damage as is 11 practicable. 12 13 Example of a reasonable step-- 14 For an entry to a place, under section 140A, complying with any 15 reasonable requirement of the owner or occupier of the place about 16 fixing the damage or harm.'. Clause 15 Amendment of s 152A (Power to enter place) 17 Section 152A(1)-- 18 insert-- 19 `(d) the purpose of the entry is to help an approved auditor 20 carry out an audit commissioned under section 135IT111 21 and the occupier of the place is a person to whom the 22 audit relates.'. 23 Clause 16 Amendment of s 152G (General powers after entering 24 place) 25 (1) Section 152G(3), words before paragraph (a)-- 26 omit, insert-- 27 `(3) The inspection officer may, for a prescribed purpose--'. 28 (2) Section 152G-- 29 111 Section 135IT (Regulator may carry out audit)

149 Electricity Amendment Bill 2004 insert-- 1 `(8) In this section-- 2 prescribed purpose means-- 3 (a) for monitoring and enforcing compliance with this Act; 4 or 5 (b) if the purpose of the entry was to help an approved 6 auditor carry out an audit commissioned under 7 section 135IT112 and the occupier of the place is a person 8 to whom the audit relates--for the carrying out of the 9 audit.'. 10 Clause 16A Amendment of s 259A (Regulation may declare a State 11 electricity entity) 12 Section 259A-- 13 insert-- 14 `(2) A regulation may also declare an entity that is a subsidiary of 15 a GOC but is not a State electricity entity to be a State 16 electricity entity for-- 17 (a) awards, or a stated award, under the Industrial Relations 18 Act 1999; or 19 (b) employment conditions, or stated employment 20 conditions, of its employees.113'. 21 Clause 17 Insertion of new ch 14, pt 7 22 Chapter 14-- 23 insert-- 24 112 Section 135IT (Regulator may carry out audit) 113 For employment conditions of State electricity entities, see chapter 7 (Employment in government owned electricity industry) of the regulation.

150 Electricity Amendment Bill 2004 `Part 7 Transitional provisions for 1 Electricity Amendment Act 2 2004 3 `309 Existing electricity supply contracts 4 `(1) This section applies if-- 5 (a) immediately before 1 January 2003, a contract was in 6 force for the sale of electricity from a liable person to a 7 contestable customer; and 8 (b) under chapter 5A, the 13% liability is imposed on the 9 liable person for electricity sold under the contract. 10 `(2) However, this section does not apply, or ceases to apply, if a 11 review opportunity arose or arises for the contract on or after 12 1 January 2003. 13 `(3) The liable person may, by notice to the customer, charge the 14 customer all or any of the following (chargeable amounts)-- 15 (a) the amount of the liable person's reasonable costs 16 incurred in meeting or managing the 13% liability for 17 electricity sold under the contract; and 18 19 Examples of reasonable costs that may be incurred in meeting the 20 liability-- 21 · the cost of working out the relevant liable load 22 · the cost of acquiring GECs to surrender to meet the liability 23 · any fee paid to surrender the GECs 24 · an appropriate proportion of the costs of giving the relevant 25 self-assessment report 26 · if the liable person is an accredited generator--an 27 appropriate proportion of the relevant annual fee 28 · if the liable person is not an accredited generator--an 29 appropriate proportion of the fee to apply to become a 30 scheme participant and the relevant annual fee 31 Example of a reasonable cost that may be incurred in managing the 32 liability-- 33 · the cost of setting up an internal information technology 34 system to manage the liability

151 Electricity Amendment Bill 2004 (b) an amount equivalent to the amount of any civil penalty 1 paid to meet the 13% liability and any reasonable costs 2 of paying the civil penalty.114 3 `(4) The notice must state the amount of each chargeable amount 4 charged to the customer separately from any other amount 5 charged for the sale of the electricity. 6 `(5) If the customer does not pay a chargeable amount charged to 7 the customer within a reasonable period after receiving the 8 notice, the liable person may recover the chargeable amount 9 from the customer as a debt. 10 `(6) In deciding what is a reasonable period for subsection (5), 11 regard must be had to the provisions of the contract. 12 `(7) Subsections (3) to (6)-- 13 (a) apply despite any other provision of this Act; but 14 (b) do not apply for a particular chargeable amount if the 15 contract, by express words, provides for who is liable to 16 pay that amount. 17 `(8) In this section-- 18 review opportunity, for a contract, means an opportunity for 19 the liable person, acting either alone or with the agreement of 20 1 or more of the other parties to the contract-- 21 (a) to change how much the customer must pay for 22 electricity sold under the contract; or 23 (b) to carry out a general review, renegotiation or alteration 24 of how much the customer must pay for electricity sold 25 under the contract.'. 26 Clause 18 Amendment of sch 1 (Appeals against administrative 27 decisions) 28 (1) Schedule 1, part 2-- 29 renumber as schedule 1, part 3. 30 (2) Schedule 1-- 31 114 See section 135EY(4) (Imposition of civil penalty for not meeting 13% liability).

152 Electricity Amendment Bill 2004 insert-- 1 `Part 2 Decisions under chapter 5A 2 Section Description of decision Court 135AN(1) Refusal of accreditation application . . . . . . . District 135AN(4)(a) Imposition of accreditation condition, other than a condition mentioned in section 135AQ(3). . . . . . . . . . . . . . . . . . . . . . District 135AN(4)(b) Deciding of ancillary matter, other than an ancillary matter mentioned in section 135AQ(3). . . . . . . . . . . . . . . . . . . . . . District 135BL(1) Refusal to transfer accreditation . . . . . . . . . . District 135BN(1) Refusal to accept surrender of accreditation . District 135BQ(1) Refusal to amend accreditation . . . . . . . . . . . District 135BX Decision to take proposed action in relation to accreditation . . . . . . . . . . . . . . . . . . . . . . . . . District 135CD(3) Refusal to approve a direct method to work out eligible gas-fired electricity . . . . . . . . . . . District 135CF(1) Decision to give directions about how to work out factor used to work out eligible gas-fired electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . District 135CI(4) Refusal to approve method to work out eligible gas-fired electricity . . . . . . . . . . . . . . District 135CR(1) Fixing of annual loss factor . . . . . . . . . . . . . . District 135CS(1) Fixing of baseline loss factor. . . . . . . . . . . . . District 135CY Fixing of baseline for baseline customer of or 135CZ accredited power station . . . . . . . . . . . . . . . . District 135DJ(1) Decision that GEC was not validly created . . District 135DQ Decision to give GEC surrender direction. . . District 135EE Refusal to accept surrender of GEC . . . . . . . District

153 Electricity Amendment Bill 2004 Section Description of decision Court 135EG(1) Decision to immediately suspend GEC . . . . . District 135EG(2) Fixing of suspension period for GEC . . . . . . District 135EK(1) Decision to take proposed action in relation to GEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . District 135FH Decision to make default assessment . . . . . . District 135FI Decision to make reassessment . . . . . . . . . . . District 135FK Decision to make amended assessment . . . . . District 135FY Decision about who is the liable person for liable load . . . . . . . . . . . . . . . . . . . . . . . . . . . District 135G(1) Decision to require party to dispute to give stated document or information. . . . . . . . . . . District 135GL Refusal of application for State development exemption application . . . . . . . . . . . . . . . . . . District 135GM(1) Decision about extent to which liable load exemption is granted, other than an extent to which the applicant has agreed . . . . . . . . . . . District 135GO Refusal of application to amend schedule for State development exemption . . . . . . . . . . . . District 135GU Refusal of liable load exemption application under part 5, division 6, subdivision 3. . . . . . District 135GV(1) Decision about extent to which liable load exemption is granted, other than an extent to which the applicant has agreed . . . . . . . . . . . District 135HB Refusal of liable load exemption application under part 5, division 6, subdivision 4. . . . . . District 135HC(1) Decision to grant liable load exemption application under part 5, division 6, subdivision 4 for a load less than the load sought in the application . . . . . . . . . . . . . . . . District 135HJ Refusal to amend liable load exemption . . . . District

154 Electricity Amendment Bill 2004 Section Description of decision Court 135HO Decision to take proposed action in relation to liable load exemption. . . . . . . . . . . . . . . . . . . District 135IH(3) Refusal of application for approval as an auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . District 135IG(1)(a) Imposition of condition on instrument of and 135IH appointment as an approved auditor, other than a condition mentioned in section 135IH(6) . . . . . . . . . . . . . . . . . . . . . . District 135IL(1) Revocation of approved auditor's appointment . . . . . . . . . . . . . . . . . . . . . . . . . . District 135IP(1) Decision to give audit notice . . . . . . . . . . . . . District 135IT(1) Decision to carry out audit . . . . . . . . . . . . . . District 135JA Decision about method for working out amount of electricity load or amount of electricity sent out from a power station or delivered to an end user . . . . . . . . . . . . . . . . . District'. Clause 19 Amendment of sch 5 (Dictionary) 1 Schedule 5-- 2 insert-- 3 `13% liability see section 135EM(1). 4 accreditation see section 135AK. 5 accredited generator see section 135AK. 6 accredited generator register see section 135JE(1)(a). 7 accredited power station see section 135AK. 8 amended assessment see section 135FK(2). 9 ancillary matters, for a power station, see section 135AM(2). 10 annual loss factor, for a power station, see section 135CR(2). 11 annual QUF, for a power station, see section 135CM(2). 12

155 Electricity Amendment Bill 2004 applicant, for chapter 5A, part 8, division 1, see 1 section 135IX(a). 2 application, for chapter 5A, part 8, division 1, see 3 section 135IX(b). 4 approved auditor see section 135AK. 5 approved form, for chapter 5A, see section 135AK. 6 assessment, by the regulator, see section 135AK. 7 auditable person see section 135IO. 8 audit notice see section 135IP(1). 9 auxiliary load, for a power station, see section 135AE. 10 baseline, for an accredited power station, see 11 section 135CV(1). 12 baseline customer, of a power station, see section 135AJ. 13 baseline loss factor, for a power station, see 14 section 135CS(3). 15 baseline QUF, for a power station, see section 135CN(3). 16 baseline year, for a power station, see section 135AK. 17 civil penalty means the civil penalty imposed under 18 section 135EY. 19 complete suspension, of the right to create GECs, see 20 section 135BT(2)(a). 21 compromise assessment see section 135FJ(2). 22 damage or harm includes likely damage or harm. 23 dedicated line see section 135AK. 24 default assessment see section 135FH(1). 25 direct method see section 135AK. 26 direct supply arrangement see section 135AH. 27 economic operator, of a power station, see section 135AC. 28 electricity load see section 135AI. 29 eligible electricity guidelines see section 135CK. 30 eligible fuel see section 135AD. 31

156 Electricity Amendment Bill 2004 eligible gas-fired electricity see section 135AA(3)(a). 1 eligible renewable electricity see section 135GR(2). 2 end user, of electricity, see section 135AK. 3 exempted load see section 135EM(4)(b). 4 fix, damage or harm, includes-- 5 (a) minimising the damage or harm; and 6 (b) if the damage or harm has not yet 7 happened--preventing it from being caused. 8 GEC see section 135AA(3)(a). 9 GEC register see section 135JE(1)(b). 10 GEC review see section 135B(1). 11 GEC surrender direction see section 135DQ(2). 12 general method see section 135CC. 13 information notice, for chapter 5A, see section 135AK. 14 interested person, for an electricity load, see section 135GG. 15 liable load see section 135EM(5). 16 liable load exemption see section 135AK. 17 liable load exemption register see section 135JE(1)(d). 18 liable person see section 135EM(3). 19 liable year for the 13% liability, see section 135EM(6). 20 limited suspension see section 135BT(2)(b). 21 major grid see section 135AF(1). 22 measurement method, for a power station, see 23 section 135AM(3). 24 nameplate capacity, for a power station, see 25 section 135AB(4). 26 non-liable load see section 135EM(4)(c). 27 notice, for chapter 5A, see section 135AK. 28 official, for chapter 5A, part 8, division 4, see section 135JL. 29

157 Electricity Amendment Bill 2004 penalty imposition day, for the 13% liability, see 1 section 135EY(2). 2 power station see section 135AB. 3 prescribed renewable energy source see 4 section 135GR(1)(a). 5 proponent, for a significant project, see section 135AK. 6 reassessment see section 135FI. 7 recognised program see section 135GR(1)(b). 8 referrer see section 135FY(1). 9 registered owner, of a GEC, see section 135AK. 10 registration, for a GEC, see section 135AK. 11 residence means a structure or a part of a structure where a 12 person resides. 13 retailer see section 135AK. 14 scheme participant see section 135AA(4). 15 scheme participant register see section 135JE(1)(c). 16 self-assessment report see section 135FD. 17 significant project see section 135GI(1). 18 small grid see section 135AF(2). 19 special conditions, for accreditation, see section 20 135AN(4)(a). 21 standard accreditation conditions see section 135AU(2). 22 State development exemption see section 135GI(4). 23 substantive traceable link, to a major grid, see 24 section 135AG. 25 surrender application, for a GEC, see section 135AK. 26 transmission zone see section 135CO(2). 27 valid, for the creation or purported creation of a GEC, see 28 section 135AK. 29 vintage year, for a GEC, see section 135AK.'. 30

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