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Gas Supply Amendment Bill 2008
Gas Supply Amendment Bill 2008
Explanatory Notes
Introduction
The Bill provides for a requirement to be placed on retailers of reticulated
natural gas to deliver community service initiatives under an agreement
between the retailer and the State or, in the absence of such an agreement,
as decided by the Minister.
Short Title of the Bill
The short title of the Bill is the Gas Supply Amendment Bill 2008.
Objectives of the Bill
The policy objective of the Bill is to provide legislation that will require gas
retailers to deliver community service initiatives if retail services are
provided.
The Bill will enable the Government to provide community service
initiatives to reticulated natural gas customers through the gas retailers.
Policy rationale
The Government has introduced a rebate payable to eligible natural gas
customers (pensioners, Seniors Card holders and certain other benefit
recipients) in recognition of increases in reticulated natural gas prices
following the deregulation of natural gas prices on 1 July 2007. The rebate
is most efficiently delivered by the natural gas retailers. The approach to
providing community service initiatives through the retailer is the same as
is used to provide the Queensland Electricity Rebate to the same class of
recipients.
How objectives are achieved
The Bill will prohibit a retailer from offering retail services unless the
retailer enters an agreement with the State to provide agreed community
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Gas Supply Amendment Bill 2008
services for a minimum period of five years or, if there is no such
agreement, the retailer provides community services as directed by the
Minister and complies with any conditions in the Minister's decision.
Alternative method of achieving policy objectives
The method proposed is considered the most efficient method of delivering
community services to reticulated natural gas consumers and mimics a
provision in the Electricity Act 1994. Alternatives involving direct payment
of rebates by Government would be administratively difficult and
expensive.
Estimated cost for Government implementation
There is no cost for implementation of the provision requiring delivery of
community service initiatives. Gas retailers will be paid an administration
fee for the delivery of the gas rebate on behalf of the Government,
amounting to approximately $75,000 per year.
Consistency with Fundamental Legislative Principles
The amendments are consistent with Fundamental Legislative Principles.
Consultation
The Government announced the Gas Pensioner Rebate in 2007 and has had
extensive discussions with gas retailers on the form of the community
services to be provided. The retailers have failed to implement the rebate
scheme as agreed in a timely fashion and the Government now wishes to
legislate to ensure that the rebate is provided to eligible customers.
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Gas Supply Amendment Bill 2008
Notes on Provisions
Section 1 Short Title
Section 1 states that this Act may be cited as the Gas Supply Amendment
Act 2008
Section 2 Commencement
Section 2 provides that this Act commences on 31 March 2008
Section 3 Act Amended
Section 3 provides for the amendment of the Gas Supply Act 2003
Section 4 Insertion of new s 175A
Clause (1) inserts a new provision in the Gas Supply Act 2003 that will
require that a gas retailer must not offer retail services unless the retailer
has entered and complies with an agreement of at least five years with the
State to provide agreed community services or, in the absence of such an
agreement, the retailer provides the community services the Minister
decides and complies with any conditions in the Minister's decision. A
penalty of 400 penalty units is provided for if a retailer provides retail
services in contravention of this requirement.
Clause (2) provides that where there is no agreement and the Minister
decides the community services to be provided and any relevant conditions,
the Minister will have regard to the retailer's reasonable administration
costs and other risks in providing the community services decided.
© State of Queensland 2008
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