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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Electricity Industry Act 2000
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 1
3. Definitions 2
4. Crown to be bound 3
5. Extra-territorial operation 4
6. Construction of Act 4
7. Application of Act to certain distribution, transmission and
generation companies 4
PART 2--REGULATION OF ELECTRICITY INDUSTRY 6
Division 1--Introductory 6
8. Application of Part 6
9. Construction of Part 6
10. Objectives of the Office 6
11. Conferral of power on ACCC in relation to transmission pricing 6
Division 2--Price Regulation 7
12. Powers in relation to price regulation 7
13. Regulation of tariffs for prescribed customers 8
14. Tariff Order 10
15. Continuation of charges relating to distribution system 12
Division 3--Licences 14
16. Prohibition 14
17. Exemptions 15
18. Application for licence 15
19. Determination of application 15
20. Provisions relating to licences 17
21. Specific licence conditions 18
22. Minister to determine fees 20
23. Condition restricting sale to certain customers 20
24. Condition restricting generating capacity 21
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Clause Page
25. Condition specifying industry codes, standards, rules or
guidelines 22
26. Condition relating to customer-related standards, procedures,
policies and practices 22
27. Supplier of last resort 23
28. Customer dispute resolution 26
29. Variation or revocation of licence 27
30. Gazettal requirement 28
31. Transfer of licence 28
32. Limitations on application for, or issue, transfer or variation of,
licence 30
33. Exceptions from prohibition 31
Division 4--Appointment of Administrator 32
34. Appointment of administrator 32
Division 5--Terms and Conditions of Sale and Supply of Electricity 32
35. Offer to domestic or small business customers 32
36. Terms and conditions of contracts for sale of electricity to certain
customers 34
37. Deemed contracts with former franchise customers 36
38. Variation of contracts with former franchise customers 37
39. Deemed contracts for supply and sale for certain domestic or
small business customers 37
40. Deemed contracts for supply and sale for certain relevant
customers 38
Division 6--Electricity Market Provisions 39
41. Definitions 39
42. Metering installation identification and registration 40
43. Arrangements facilitating election by customer of supply from
another retailer 41
44. Metrology procedures 41
45. Cost recovery 43
46. General powers in relation to Orders 44
Division 7--Community Services Agreements 45
47. Community services 45
48. Transitional provision relating to community services 45
49. Office may determine certain matters 46
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Clause Page
PART 3--SEPARATION OF GENERATION TRANSMISSION
AND DISTRIBUTION SECTORS 48
Division 1--Interpretation 48
50. Definitions 48
51. Relevant interest in a share 49
52. Voting power 50
53. References to Corporations Law 50
54. Unit trusts 51
55. Stock 51
56. Controlling interest in a corporation 51
57. Substantial interest in a corporation 52
58. Entitlement to generating capacity 53
59. Traced interest in generating capacity 54
60. Direct interest in a corporation 56
61. Regulations relating to relevant interests and generating
capacity 57
62. Certain shareholders agreements to be disregarded 57
63. Certain "see-through" interests to be disregarded 58
64. Effect of certificate under section 62 or 63 60
Division 2--Application of Part 61
65. Application of Part 61
66. Application of Part to partnerships 61
67. Part to be relevant legislation 62
Division 3--Separation of Generation Transmission and
Distribution Sectors 63
68. Prohibited interests 63
69. Temporary exemption from prohibition 65
70. Power to require information relating to interests 65
71. Disposal of interest 67
72. Voting rights in respect of certain shares 70
73. Revocation of licence 70
74. Annulment of certain resolutions of licensee 70
75. Making, review and revocation of determination by Office 71
76. Appeal against determination of Office 72
77. Sale of forfeited shares 72
78. Service 73
PART 4--ELECTRICITY TRANSMISSION 74
Division 1--Powers of VENCorp 74
79. Powers of VENCorp 74
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Clause Page
Division 2--Load Shedding in Situations of Emergency Supply
Shortage 74
80. Determination of customer load shedding arrangements 74
81. Powers in relation to load shedding 76
82. Offences 78
83. Provision of information 79
84. Immunity from suit 79
PART 5--POWERS OF ELECTRICITY CORPORATIONS 80
85. Definition 80
86. Power to acquire easements with approval of Governor in
Council 80
87. Acquisition of land within Latrobe area 80
88. Making of easements in subdivisions 81
89. Certain easements may be used for carriage service 82
90. Easements over lands held by Crown licensees or lessees 82
91. Arrangements for joint use of easements 83
92. Cancellation of easements 83
93. Powers as to works etc. 84
94. Rateability of certain property 86
PART 6--ELECTRICITY SUPPLY EMERGENCY PROVISIONS 89
Division 1--Emergency Provisions 89
95. Proclamation that this Part applies 89
96. Powers of Minister 89
97. Offences 93
98. Judicial notice 96
99. Immunity from suit 96
Division 2--Enforcement 96
100. Powers of entry--enforcement 96
101. Occupier to be given copy of consent 97
102. Search warrant 97
103. Announcement before entry 98
104. Copy of warrant to be given to occupier 99
105. Person authorised by Office of Chief Electrical Inspector can
bring proceedings 99
Division 3--Infringement Notices 100
106. Definition 100
107. Power to serve a notice 100
108. Form of notice 101
109. Infringement penalties 102
110. Late payment of penalty 102
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Clause Page
111. Withdrawal of notice 102
112. Payment expiates offence 103
113. Payment not to have certain consequences 103
114. Prosecution after service of infringement notice 103
115. Enforcement of infringement penalty 104
PART 7--GENERAL 105
116.
Delegation by Minister 105
117.
Liability for failure to supply electricity 105
118.
Supreme Court--limitation of jurisdiction 105
119.
Regulations 105
__________________
SCHEDULE--Easements set apart for electricity corporations 107
ENDNOTES 109
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PARLIAMENT OF VICTORIA
Initiated in Assembly 6 September 2000
As amended in Assembly 24 October 2000
A BILL
to regulate the electricity supply industry and for other purposes.
Electricity Industry Act 2000
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The main purpose of this Act is to regulate the
electricity supply industry.
5 2. Commencement
(1) Section 1 and this section come into operation on
the day after the day on which this Act receives
the Royal Assent.
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(2) Section 19(5) comes into operation on a day to be
proclaimed.
(3) Section 83 comes into operation on a day to be
proclaimed.
5 (4) The remaining provisions of this Act come into
operation on 1 January 2001.
(5) If section 83 does not come into operation before
31 December 2001, it comes into operation on that
day.
10 3. Definitions
In this Act--
"ACCC" means the Australian Competition and
Consumer Commission established by
section 6A of the Trade Practices Act 1974
15 of the Commonwealth;
"company" has the same meaning as in the
Corporations Law of Victoria;
"corporation" has the same meaning as in the
Corporations Law;
20 "distribution company" means a person who is
the holder of a licence to distribute
electricity;
"enforcement officer" means a person appointed
as an enforcement officer under Part 11 of
25 the Electricity Safety Act 1998;
"generation company" means a person who is
the holder of a licence to generate electricity
for supply or sale;
"licence" means a licence issued under Part 2;
30 "licensee", except in Part 3, means the holder of a
licence issued under Part 2;
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Act No.
"National Electricity Code" has the same
meaning as "Code" has in the National
Electricity (Victoria) Law;
"NEMMCO" has the same meaning as in the
5 National Electricity (Victoria) Law;
"Office" means the Office of the Regulator-
General established under Part 2 of the
Office of the Regulator-General Act 1994;
"retailer" means the holder of a licence to sell
10 electricity otherwise than through the
wholesale electricity market;
"SEC" means the State Electricity Commission
of Victoria;
"Tariff Order" means the Order made under
15 section 158A(1) of the Electricity Industry
Act 1993 on 20 June 1995 and published in
the Government Gazette on 30 June 1995 as
that Order is amended and in force from time
to time;
20 "transmission company" means a person who is
the holder of a licence to transmit electricity;
"VENCorp" means Victorian Energy Networks
Corporation established under Part 2A of the
Gas Industry Act 1994;
25 "wholesale electricity market" means the
market for wholesale trading in electricity
operated by NEMMCO.
4. Crown to be bound
This Act binds the Crown, not only in right of
30 Victoria but also, so far as the legislative power of
the Parliament permits, the Crown in all its other
capacities.
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5. Extra-territorial operation
It is the intention of the Parliament that the
operation of this Act should, so far as possible,
include operation in relation to the following--
5 (a) land situated outside Victoria, whether in or
outside Australia;
(b) things situated outside Victoria, whether in
or outside Australia;
(c) acts, transactions and matters done, entered
10 into or occurring outside Victoria, whether in
or outside Australia;
(d) things, acts, transactions and matters,
(wherever situated, done, entered into or
occurring) that would, apart from this Act,
15 be governed or otherwise affected by the law
of the Commonwealth, another State, a
Territory or a foreign country.
6. Construction of Act
This Act must be read and construed as one with
20 the Electricity Industry (Residual Provisions)
Act 1993.
7. Application of Act to certain distribution,
transmission and generation companies
(1) The Governor in Council, by Order published in
25 the Government Gazette, may declare that a
reference in specified provisions in Part 5 of this
Act or specified provisions in another Act to a
distribution company, transmission company or
generation company does not include a reference
30 to a specified distribution company, transmission
company or generation company.
(2) A copy of an Order under sub-section (1) must be
laid before each House of the Parliament on or
before the sixth sitting day after it is made.
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(3) An Order under sub-section (1) is subject to
disallowance by a House of the Parliament, and
section 23 of the Subordinate Legislation Act
1994 applies as if the Order were a statutory rule.
5 _______________
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Act No.
PART 2--REGULATION OF ELECTRICITY INDUSTRY
Division 1--Introductory
8. Application of Part
This Part applies to any person, including SEC,
5 VENCorp and any distribution company,
transmission company, retailer and generation
company.
9. Construction of Part
This Part is relevant legislation for the purposes of
10 the Office of the Regulator-General Act 1994.
10. Objectives of the Office
The objectives of the Office under this Act are--
(a) to promote competition in the generation,
supply and sale of electricity;
15 (b) to ensure the maintenance of an efficient and
economic system for the generation,
transmission, distribution, supply and sale of
electricity;
(c) to protect the interests of consumers with
20 respect to electricity prices and the safety,
reliability and quality of electricity supply;
(d) to facilitate the maintenance of a financially
viable electricity supply industry.
11. Conferral of power on ACCC in relation to
25 transmission pricing
(1) The Minister, on behalf of the State, may enter
into an agreement with the Commonwealth and
the ACCC for the performance of such functions
and the exercise of such powers as the Office has
30 in relation to the regulation of charges for
connection to, and the use of, the transmission
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system, whether under the Tariff Order or
otherwise.
(2) The ACCC, and the members of the ACCC, have
power to perform such functions and exercise
5 such powers as are conferred on the ACCC by an
agreement under sub-section (1).
(3) An agreement referred to in sub-section (1) shall
be published in the Government Gazette.
(4) An agreement under sub-section (1) comes into
10 effect on publication of a copy in accordance with
sub-section (3) or on such later date as is specified
in the agreement.
(5) Despite anything to the contrary in section 39A of
the Office of the Regulator-General Act 1994,
15 the Office may give to the ACCC such
information as may be necessary or convenient for
the ACCC to have in connection with carrying out
the functions and powers of the Office that are
conferred on the ACCC by an agreement under
20 this section.
Division 2--Price Regulation
12. Powers in relation to price regulation
(1) For the purposes of Part 3 of the Office of the
Regulator-General Act 1994--
25 (a) the electricity industry is a regulated
industry; and
(b) the power to regulate prescribed prices in
respect of prescribed goods and services is
conferred on the Office in respect of the
30 following--
(i) charges for connection to, and the use
of, any distribution system;
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(ii) unless an Order is in force under sub-
section (2), charges for connection to,
and the use of, the transmission system;
(iii) tariffs for the sale of electricity
5 regulated by Order under section 13, to
the extent specified in such an Order.
(2) The Governor in Council may, by Order published
in the Government Gazette, declare that charges
for connection to, and the use of, the transmission
10 system are subject to the regulation of the ACCC
under an agreement entered into under section 11
and are not subject to the regulation of the Office.
13. Regulation of tariffs for prescribed customers
(1) The Governor in Council may, by Order published
15 in the Government Gazette, regulate, in such
manner and in relation to such period as the
Governor in Council thinks fit, tariffs for the sale
of electricity to prescribed customers or a class of
prescribed customers.
20 (2) Without limiting the generality of sub-section (1),
the manner may include--
(a) fixing the tariff or the rate of increase or
decrease in a tariff;
(b) fixing a maximum tariff or maximum rate of
25 increase or minimum rate of decrease in the
maximum tariff;
(c) fixing an average tariff or an average rate of
increase or decrease in the average tariff;
(d) specifying policies or principles for fixing
30 tariffs;
(e) specifying a tariff determined by reference to
a general price index, the cost of production,
a rate of return on assets employed or any
other specified factor;
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(f) specifying a tariff determined by reference to
any one or more of the following--
(i) a prescribed customer or a class of
prescribed customers;
5 (ii) a person or a class of persons
authorised to sell electricity;
(iii) the purpose for which the electricity is
used;
(iv) the quantity of electricity used;
10 (v) the period of use;
(vi) the place of supply;
(vii) any other specified factor relevant to
the sale of electricity.
(3) An Order under sub-section (1) may direct the
15 Office to make a determination under the Office
of the Regulator-General Act 1994 in respect of
such factors and matters or in accordance with
such procedures, matters or bases as are specified
in the Order, or both.
20 (4) An Order under sub-section (1) has effect as from
the date specified in the Order as if the tariffs to
which the Order applies were prices determined
by the Office.
(5) The Governor in Council may, by Order published
25 in the Government Gazette, declare that a person
or class of persons specified in the Order is, for
the purposes of this section, a prescribed customer
or class of prescribed customers.
(6) In this section--
30 "prescribed customer" means a person, or a
member of a class of persons, to whom an
Order under sub-section (5) applies.
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(7) This section, and any Order made under this
section and in force immediately before that date,
expire on 31 December 2003.
14. Tariff Order
5 (1) Subject to section 15, the Tariff Order cannot be
amended or varied except as provided by this
section.
(2) The Governor in Council may, by Order published
in the Government Gazette, revoke the Tariff
10 Order.
(3) The Governor in Council, on the recommendation
of the Minister, may by Order published in the
Government Gazette, amend the Tariff Order--
(a) to vary the provisions in clause 2.5 in
15 relation to the giving of notices to customers
and to extend the period of operation of that
clause;
(b) to insert specified metering and data
collection and processing services as
20 excluded services for the purposes of
clause 5.7;
(c) to insert as excluded services for the
purposes of clause 5.7, specified services in
connection with the implementation and
25 operation of arrangements--
(i) under which a customer of a retailer
may elect to become a customer of
another retailer; or
(ii) relating to the settlement of the
30 wholesale electricity market in respect
of customers making such elections;
(d) to vary clause 5.7.5 to provide for regulation
by the Office of terms and charges for
excluded services to the extent that the terms
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and charges for those excluded services are
not regulated under the licenses referred to in
clause 5.7.5;
(e) to vary clause 6.3 of the Tariff Order to
5 authorise the Office, at the request of a
distribution company, to review and amend a
price determination relating to that
distribution company to address any matter
arising from the implementation and
10 operation of arrangements--
(i) under which a customer of a retailer
may elect to become a customer of
another retailer; or
(ii) relating to the settlement of the
15 wholesale electricity market in the case
of customers making such elections--
including any matter relating to the recovery
by the distribution company of the costs of
that implementation and operation;
20 (f) to permit a distribution company, with the
approval of the Office, to pass through to the
retailers supplied by that distribution
company additional costs to the distribution
company of the implementation and
25 operation of arrangements--
(i) under which a customer of a retailer
may elect to become a customer of
another retailer; or
(ii) relating to the settlement of the
30 wholesale electricity market in the case
of customers making such elections;
(g) in relation to public lighting.
(4) An Order under sub-section (3) amending the
Tariff Order may declare prices and goods and
35 services to be prescribed prices and goods and
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Act No.
services in respect of the electricity industry for
the purposes of the Office of the Regulator-
General Act 1994.
(5) An Order under sub-section (3) amending the
5 Tariff Order may direct the Office to make a
determination under the Office of the Regulator-
General Act 1994 in respect of such factors and
matters or in accordance with such procedures,
matters or bases as are specified in the Order, or
10 both.
(6) The Tariff Order has effect as from the date
specified in the Order as if the tariffs, charges and
other matters to which the Order applies had been
determined by the Office.
15 (7) If a provision of the Tariff Order ceases to have
effect, the remaining provisions of that Order
continue to have effect, subject to that Order and
this Act, according to their tenor and so to have
effect, subject to that Order and this Act, as if--
20 (a) references in those provisions to a provision
that has ceased to have effect were a
reference to that provision as in force
immediately before it ceased to have effect;
and
25 (b) words and expressions used in those
provisions that were defined by the provision
that has ceased to have effect continue to
have the same respective meanings as before
the provision ceased to have effect.
30 15. Continuation of charges relating to distribution
system
(1) This section applies if--
(a) the Office has made a determination under
the Office of the Regulator-General Act
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1994 regulating charges for connection to,
and the use of, any distribution system; and
(b) proceedings are commenced in respect of the
determination; and
5 (c) the determination is stayed or set aside.
(2) If the decision to stay or set aside the
determination is made before 1 January 2001,
then, despite anything to the contrary in the Tariff
Order, the provisions of the Tariff Order
10 regulating charges for connection to, and the use
of, a distribution system will continue to apply on
and after that date to that distribution system until
a determination of the Office is in effect
regulating those charges.
15 (3) If the decision to stay or set aside the
determination is made on or after 1 January 2001,
then despite the determination being stayed or set
aside and despite anything to the contrary in the
Tariff Order, the provisions of the determination
20 regulating charges for connection to, and the use
of, a distribution system will apply to that
distribution system on and after the date of the
decision to stay or set aside the determination
until a determination of the Office is in effect
25 regulating those charges.
(4) Sub-sections (2) and (3) are subject to any order
of the Court or the appeal panel under the Office
of the Regulator-General Act 1994 to the
contrary.
30 (5) The Governor in Council may, by Order published
in the Government Gazette, provide for
transitional arrangements between the operation
of sub-section (2) or (3) and the operation of any
determination of the Office that takes effect
35 following the determination of the proceedings.
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(6) An Order under sub-section (5) may direct the
Office to make a determination under the Office
of the Regulator-General Act 1994 in respect of
such factors and matters or in accordance with
5 such procedures, matters or bases as are specified
in the Order, or both.
(7) In this section "proceedings", in relation to a
determination, means--
(a) proceedings on an appeal under section 37 of
10 the Office of the Regulator-General Act
1994 against the determination; or
(b) proceedings before a Court of a kind
permitted by section 40 of the Office of the
Regulator-General Act 1994 in respect of
15 the determination.
Division 3--Licences
16. Prohibition
(1) A person must not engage in the generation of
electricity for supply or sale or the transmission,
20 distribution, supply or sale of electricity unless the
person--
(a) is the holder of a licence authorising the
relevant activity; or
(b) is exempted from the requirement to obtain a
25 licence in respect of the relevant activity.
Penalty: 1000 penalty units and 100 penalty
units for each day after the day on
which a notice of contravention of this
sub-section is served on the person by
30 the Office.
(2) This section does not prohibit the transmission,
distribution or supply of electricity by and for the
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19
Act No.
use of the Public Transport Corporation
established under the Transport Act 1983.
17. Exemptions
(1) The Governor in Council may by Order in
5 Council published in the Government Gazette
exempt a person from the requirement to obtain a
licence in respect of the activity specified in the
Order in Council.
(2) An exemption may be of general or specific
10 application.
(3) An exemption is subject to such terms, conditions
and limitations as are specified in the Order in
Council.
(4) An Order under sub-section (1) may confer
15 powers and functions on, and leave any matter to
be determined by, the Office.
18. Application for licence
(1) A person may apply to the Office for the issue of a
licence authorising one or more of the following
20 activities--
(a) to generate electricity for supply or sale;
(b) to transmit electricity;
(c) to distribute or supply electricity;
(d) to sell electricity.
25 (2) An application must be in a form approved by the
Office and accompanied by such documents as
may be determined by the Office.
(3) An application must be accompanied by the
application fee (if any) fixed by the Office.
30 19. Determination of application
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(1) Subject to sub-sections (2) and (3) the Office may
grant or refuse an application for the issue of a
licence for any reason it considers appropriate,
having regard to the objectives specified in
5 section 10.
(2) The Office must not grant an application for the
issue of a licence unless the Office is satisfied
that--
(a) subject to sub-section (3), in the case of an
10 application for a licence to sell electricity,
the applicant is financially viable; and
(b) subject to sub-section (4), the applicant has
the technical capacity to comply with the
conditions of the licence.
15 (3) The Office does not have to be satisfied as to the
applicant's financial viability, if the applicant is
applying for a licence which includes a condition
requiring compliance with the National Electricity
Code and the Code includes prudential
20 requirements.
(4) The Office does not have to be satisfied as to the
applicant's technical capacity to comply with the
conditions of the licence at the time it is issued
if--
25 (a) the activities specified in the licence are not
likely to be commenced to be carried out
within the next following 12 months; and
(b) the application is granted subject to such
conditions as are determined by the Office
30 relating to further approval of the applicant's
technical capacity or approval of future
facilities necessary for the carrying out of the
activities.
(5) The Office does not have to be satisfied as to the
35 applicant's technical capacity to comply with the
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conditions of the licence, if the applicant is the
Snowy Hydro Company within the meaning of the
Snowy Hydro Corporatisation Act 1997.
(6) The Office must publish a notice in a daily
5 newspaper generally circulating in Victoria--
(a) specifying that an application for a licence in
respect of the relevant activity has been
lodged with the Office by the person
specified in the notice; and
10 (b) inviting interested persons to make
submissions to the Office in respect of the
application within the period and in the
manner specified in the notice.
(7) Subject to this section and any requirements
15 specified in regulations made for the purposes of
this section under section 119, the Office may
determine the procedures that are to apply in
respect of the issue of licences.
(8) The Office must notify an applicant in writing of
20 its decision to grant or refuse to grant the
application and, in the case of a decision to refuse
to grant the application, of the reasons for its
decision.
20. Provisions relating to licences
25 (1) A licence is to be issued for such term (if any) as
is determined by the Office and is specified in the
licence.
(2) A licence is subject to such conditions as are
determined by the Office.
30 (3) If a licence is issued to 2 or more persons for the
purpose of the carrying on by those persons of the
activities authorised by the licence in partnership
or as an unincorporated joint venture, the licence
may include conditions relating to the carrying on
35 of those activities in that manner.
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21. Specific licence conditions
Without limiting the generality of section 20, the
conditions on a licence may include provisions--
(a) requiring the licensee to pay specified fees
5 and charges in respect of the licence to the
Office;
(b) requiring the licensee to enter into
agreements on specified terms or on terms of
a specified type;
10 (c) requiring a retailer to have such agreements
with one or more distribution companies as
are necessary to ensure that, subject this Act,
electricity is distributed or supplied to the
extent necessary to enable the retailer to sell
15 electricity to its customers;
(d) requiring a distribution company to have
such agreements with retailers as are
necessary to ensure that, subject to this Act,
electricity is distributed or supplied to the
20 extent necessary to enable the retailers to sell
electricity to their customers;
(e) requiring a distribution company--
(i) to prepare standard agreements for the
purposes of paragraphs (c) and (d); and
25 (ii) to submit those standard agreements to
the Office for approval; and
(iii) to offer a standard agreement approved
by the Office to a retailer for the
purposes of paragraphs (c) and (d);
30 (f) subject to section 47, requiring a retailer to
enter into an agreement with the State for the
provision of community services;
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(g) requiring a distribution company to comply
with requirements relating to the provision of
public lighting;
(h) requiring the licensee to comply with
5 customer load shedding arrangements agreed
with VENCorp or with such arrangements as
are determined by the Minister under
section 80;
(i) requiring the licensee to supply information
10 to VENCorp, when requested by VENCorp,
to assist VENCorp to fulfil its functions in
relation to the securing of supply of
electricity;
(j) requiring the licensee to inform customers
15 from time to time of the arrangements in
place or proposed to be in place to allow
them to elect to become a customer of
another licensee;
(k) requiring a licensee to give notice to
20 customers of the existence of deemed
contracts under sections 39 and 40 and the
methods by which those contracts may be
terminated and requiring the licensee to
provide for cooling-off periods approved by
25 the Office for the termination of those
contracts;
(l) requiring the licensee to observe specified
Orders in Council, industry codes, standards,
rules and guidelines, with such modifications
30 or exemptions as may be determined by the
Office;
(m) requiring the licensee to maintain specified
accounting records and to prepare accounts
according to specified principles;
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(n) specifying requirements about the ownership
of real or personal property used in or in
connection with the carrying on of the
activities authorised by the licence;
5 (o) preventing the licensee from engaging in or
undertaking specified business activities;
(p) specifying methods or principles to be
applied by the licensee in determining prices
or charges;
10 (q) specifying methods or principles to be
applied in the conduct of activities
authorised by the licence;
(r) specifying procedures for variation or
revocation of the licence;
15 (s) specifying the procedures to apply if an
administrator is appointed under section 34;
(t) requiring the licensee to provide, in the
manner and form determined by the Office,
such information as the Office may from
20 time to time require;
(u) requiring the licensee to develop, issue and
comply with customer-related standards,
procedures, policies and practices (including
with respect to the payment of compensation
25 to customers).
22. Minister to determine fees
For the purposes of section 21(a) the fees and
charges to be specified in respect of a licence are
to be determined by the Minister having regard to
30 the proportion of the total costs of the Office that
are incurred in the administration of this Part.
23. Condition restricting sale to certain customers
(1) A licence to sell electricity is deemed to include a
condition prohibiting the licensee from selling
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electricity to persons or classes of persons
specified by Order under this section for the
period or periods specified in the Order in respect
of those persons.
5 (2) The Governor in Council may by Order published
in the Government Gazette specify persons or
classes or persons and periods for the purposes of
this section.
(3) An Order under sub-section (2) may specify a
10 class of persons by reference to all or any of the
following--
(a) the person authorised to sell the electricity;
(b) the purpose for which the electricity is used;
(c) the quantity of electricity used;
15 (d) the period of use;
(e) the place of supply;
(f) any other specified factor relevant to the sale
of electricity.
(4) This section ceases to have effect on 31 December
20 2003.
24. Condition restricting generating capacity
Subject to section 33, if the Office--
(a) issues a single licence authorising each of
the activities referred to in section 18(1)(a)
25 and (c); or
(b) issues to the same person separate licences
which together authorise each of those
activities; or
(c) approves the transfer of a licence as a result
30 of which the same person holds separate
licences which together authorise each of
those activities--
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the licence, or each such licence, must contain a
condition prohibiting the person from having an
entitlement to generating capacity within the
meaning of Part 3 of more than 200 megawatts.
5 25. Condition specifying industry codes, standards, rules
or guidelines
(1) If a licence is subject to a condition of a kind
referred to in section 21(l), the Office--
(a) may, in accordance with procedures
10 specified by the Office, amend the specified
industry codes, standards, rules or
guidelines, or a document referred to in any
of them, for the purposes of their application
under the licence;
15 (b) may resolve, or seek to resolve, disputes
between the licensee and any other person
relating to the specified industry codes,
standards, rules or guidelines, or a document
referred to in any of them, as they apply
20 under the licence.
(2) If the Office amends an industry code, standard,
rule or guideline or a document under sub-section
(1), the Office may at the same time, in
accordance with procedures specified by the
25 Office, amend that code, standard, rule, guideline
or document for the purposes of their application
otherwise than under the licence.
26. Condition relating to customer-related standards,
procedures, policies and practices
30 (1) If a licence is subject to a condition of a kind
referred to in section 21(u)--
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(a) the Office must monitor the licensee's
compliance with the customer-related
standards, procedures, policies and practices
developed by the licensee in accordance with
5 the condition; and
(b) if the Office considers that any of the
customer-related standards, procedures,
policies and practices, or compliance by the
licensee with any of them, disadvantages, or
10 may disadvantage, any class of its customers,
or all of its customers, the Office may make
a determination requiring the licensee to
modify or revoke any part of the standards,
procedures, policies or practices that causes
15 the disadvantage or possible disadvantage.
(2) The Office, in making a determination under sub-
section (1)(b), must have regard to the prices,
risks and costs associated with or resulting from
the modification or revocation which is the
20 subject of the determination.
(3) The Office must not make a determination under
sub-section (1)(b) unless the Office has given the
licensee an opportunity to make representations
on the matter.
25 (4) Section 27 of the Office of the Regulator-
General Act 1994 applies to the making of a
determination under sub-section (1).
27. Supplier of last resort
(1) Without limiting the generality of section 20, the
30 conditions to which a licence to distribute or
supply, or to sell, electricity is subject may
include a requirement that, in certain
circumstances, the licensee, at tariffs and on terms
and conditions approved by the Office, having
35 regard to the matters referred to in sub-section (2),
supply or sell electricity to customers to whom
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electricity is supplied or sold under another such
licence (whether held by that licensee or another
licensee).
(2) In approving the tariffs and terms and conditions
5 of a requirement referred to in sub-section (1), the
Office must have regard to--
(a) the risks and costs associated with the
requirement; and
(b) the extent to which the licensee or another
10 licensee has developed systems to comply
with such a requirement; and
(c) any tariffs and terms and conditions
proposed by the licensee whether or not at
the request of the Office.
15 (3) A requirement referred to in sub-section (1) does
not apply so as to require the licensee to supply or
sell electricity--
(a) if the licensee's licence provides for a
distribution area, outside that area; or
20 (b) to a customer to whom electricity is supplied
or sold under another licence if the customer
elects, in writing given to the holder of that
other licence, not to be a customer of that
other licensee for the purposes of sub-section
25 (1).
(4) If the conditions to which a licence of a licensee is
subject include a requirement referred to in sub-
section (1), the licensee is deemed to be the holder
of a licence to sell electricity to the extent
30 necessary to comply with the requirement.
(5) The obligation of a licensee ("the second
licensee") to supply or sell electricity to a
customer to whom electricity is supplied or sold
by another licensee ("the first licensee") in
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accordance with the requirement referred to in
sub-section (1) commences when--
(a) the first licensee's licence is suspended or
revoked; or
5 (b) the right of the first licensee to acquire
electricity from the wholesale electricity
market is suspended or terminated--
whichever first occurs, and ends after 3 months or
when the customer advises the second licensee in
10 writing that the supply or sale is no longer
required, whichever occurs first.
(6) The Office must notify the second licensee under
sub-section (5), as soon as practicable, of the
commencement of the second licensee's obligation
15 under that sub-section.
(7) The tariffs and terms and conditions upon which,
in the circumstances referred to in sub-section (5),
a licensee will supply or sell electricity to
customers of another licensee are--
20 (a) the tariffs and terms and conditions approved
by the Office after proposed tariffs, terms
and conditions have been submitted by the
licensee for approval; or
(b) if--
25 (i) the licensee has submitted tariffs, terms
and conditions for approval and any
changes proposed by the Office are not
adopted by the licensee within one
month after being proposed; or
30 (ii) if the licensee, after being given at least
one month's notice to submit proposed
tariffs, terms and conditions to the
Office, fails to comply with the
request--
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the tariffs, terms and conditions determined
by the Office as the approved tariffs, terms
and conditions.
(8) The licensee or, if the Office determines the tariffs
5 and terms and conditions, the Office, must cause
notice of the approved tariffs, terms and
conditions to be published in the Government
Gazette.
(9) The tariffs and terms and conditions of which
10 notice has been published in accordance with sub-
section (8) are binding on the licensee and the
customers to which they apply and, when the
licensee is acting in accordance with those tariffs,
terms and conditions, they have effect despite any
15 agreement or instrument to the contrary relating to
the distribution or supply, or sale, of electricity to
customers.
(10) A licensee and a customer to whom the licensee
has an obligation under sub-section (5) to supply
20 or sell electricity are deemed to have entered into
a contract on the relevant tariffs, terms and
conditions published under sub-section (8).
28. Customer dispute resolution
(1) A licence to--
25 (a) distribute or supply electricity; or
(b) sell electricity--
must be issued subject to a condition requiring the
licensee to enter into a customer dispute
resolution scheme approved by the Office.
30 (2) In approving a customer dispute resolution
scheme, the Office must have regard to--
(a) the objectives of the Office under this Act
and under the Office of the Regulator-
General Act 1994; and
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(b) the need to ensure that the scheme is
accessible to the licensee's customers and
that there are no cost barriers to those
customers using the scheme; and
5 (c) the need to ensure that the scheme is
independent of the members of the scheme;
and
(d) the need for the scheme to be fair and be
seen to be fair; and
10 (e) the need to ensure that the scheme will
publish decisions and information about
complaints received by the scheme so as to
be accountable to the members of the scheme
and the customers of the scheme members;
15 and
(f) the need for the scheme to undertake regular
reviews of its performance to ensure that its
operation is efficient and effective.
(3) The Office may, in accordance with this Part, vary
20 any existing licence to--
(a) distribute or supply electricity; or
(b) sell electricity--
to include a condition of a kind referred to in sub-
section (1).
25 29. Variation or revocation of licence
(1) A licence or the licence conditions may be
varied--
(a) in accordance with the procedures specified
in the licence conditions; or
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(b) by agreement between the Office and the
licensee; or
(c) by a notice in accordance with sub-section
(2) served on the licensee.
5 (2) The Office must not vary a licence or the licence
conditions by a notice unless--
(a) the Office is satisfied that the variation is
necessary--
(i) having regard to the objectives
10 specified in section 10; or
(ii) to give effect to Division 7; and
(b) the Office has given the licensee an
opportunity to make representations on the
matter.
15 (3) The Office may revoke a licence in accordance
with the procedures specified in the licence
conditions.
30. Gazettal requirement
The Office must ensure that--
20 (a) notice of the grant of a licence including--
(i) the name of the licensee;
(ii) the term of the licence;
(iii) the place where a copy of the licence
may be inspected;
25
(b) notice of a variation or revocation under
section 29--
is published in the Government Gazette as soon as
possible after the grant of a licence or the
30 variation or revocation, as the case requires.
31. Transfer of licence
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(1) The holder of a licence may apply to the Office
for approval to transfer the licence.
(2) An application must be in a form approved by the
Office and accompanied by such documents as
5 may be determined by the Office.
(3) An application must be accompanied by the
application fee (if any) fixed by the Office.
(4) The Office must publish in a daily newspaper
generally circulating in Victoria a notice--
10 (a) specifying that an application for the transfer
of the licence has been lodged with the
Office for the transfer by the holder to a
proposed transferee specified in the notice;
and
15 (b) inviting interested persons to make
submissions to the Office in respect of the
application within the period and in the
manner specified in the notice.
(5) Subject to this section, the Office may approve, or
20 refuse to approve, the application for any reason it
considers appropriate, having regard to the
objectives specified in section 10.
(6) The Office must not approve the application
unless the Office is satisfied that--
25 (a) the proposed transferee has the technical
capacity to comply with the conditions of the
licence or the conditions as varied by the
Office under this section; and
(b) subject to sub-section (7), in the case of an
30 application for the transfer of a licence to sell
electricity, the proposed transferee is
financially viable.
(7) The Office does not have to be satisfied as to the
applicant's financial viability if the licence
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includes a condition requiring compliance with
the National Electricity Code and the Code
includes prudential requirements.
(8) The Office may determine that, upon the transfer
5 of the licence under this section, the conditions to
which the licence is subject are varied as
determined by the Office.
(9) Subject to this section and any requirements
specified in regulations made for the purposes of
10 this section under section 119, the Office may
determine the procedures that are to apply in
respect of the transfer of the licences.
(10) The Office must notify an applicant in writing of
its decision to approve or refuse to approve the
15 application and, in the case of a decision to refuse
to approve the application, of the reasons for its
decision.
32. Limitations on application for, or issue, transfer or
variation of, licence
20 (1) Subject to section 33, the Office must not grant an
application for the issue or transfer of a licence to
a distribution company to generate electricity for
supply or sale if the distribution company is
entitled to generating capacity within the meaning
25 of Part 3 of more than 200 megawatts.
(2) Subject to section 33, the Office must not grant an
application for the issue or transfer of a licence to
a generation company to distribute or supply
electricity if the generation company is entitled to
30 generating capacity within the meaning of Part 3
of more than 200 megawatts.
(3) Subject to section 33, the Office must not grant an
application for the issue or transfer of a licence,
and must not vary a licence, if the Office is
35 satisfied--
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(a) that the applicant for the licence or variation,
or the transferee, proposes to use property
and rights acquired from a person (being a
corporation) who is or has been a licensee
5 within the meaning of Part 3 for the purposes
of a business proposed to be carried on by
the applicant under the licence or by the
transferee; and
(b) that the applicant, or the transferee, or
10 another person, would have held a prohibited
interest if--
(i) the applicant, transferee or other person
had acquired all the shares in that
corporation; and
15 (ii) the property and rights acquired had
constituted the sole undertaking of that
corporation.
33. Exceptions from prohibition
A prohibition in section 24 or 32 does not apply
20 if--
(a) the prohibition arises as a result of an
acquisition referred to in section 88(9)(a) or
(b) of the Trade Practices Act 1974 of the
Commonwealth; and
25 (b) either--
(i) the acquisition was authorised under
the Trade Practices Act 1974 of the
Commonwealth; or
(ii) the Office has determined that it is
30 satisfied that the ACCC has considered
the acquisition and that the ACCC has
notified the person that it does not
intend to take action in relation to the
acquisition under section 50 of that Act.
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Division 4--Appointment of Administrator
34. Appointment of administrator
(1) This section applies if the Office considers that--
(a) the contravention by a licensee of the licence
5 conditions threatens the security of
electricity supply; and
(b) any other remedies to enforce compliance
are not adequate.
(2) The Office may appoint an administrator to the
10 business in respect of which the licence is issued.
(3) The administrator has such functions and powers
in relation to the business in respect of which the
licence is issued as are specified in the
appointment of the administrator.
15 (4) Unless sooner revoked by the Office, the
appointment of an administrator has effect for a
period of 28 days but the appointment may be
renewed for a further period or periods, each
period not exceeding 28 days.
20 (5) The terms and conditions (including
remuneration) of appointment of the administrator
are to be determined by the Office.
25
Division 5--Terms and Conditions of Sale and Supply of
Electricity
35. Offer to domestic or small business customers
30 (1) Without limiting the generality of section 20(2) or
(3) or section 21, the conditions to which a licence
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to sell electricity, being a licence under which
electricity may be sold to domestic or small
business customers, is subject, include a condition
requiring the licensee to offer to supply and sell
5 electricity to domestic or small business
customers, subject to this section and to any Order
in force under section 13 and to the conditions of
its licence--
(a) at tariffs determined by the licensee and
10 published by the licensee in the Government
Gazette at least 2 months before they take
effect; and
(b) on terms and conditions determined by the
licensee and approved by the Office and
15 published by the licensee in the Government
Gazette at least 2 months before they take
effect.
(2) The terms and conditions determined by the
licensee for the purposes of sub-section (1) must
20 not be inconsistent with the terms and conditions
determined by the Office under section 36(1).
(3) The tariffs determined by a licensee and published
in the Government Gazette under sub-section (1)
may be varied by notice published by the licensee
25 in the Government Gazette not less than 2 months
before the variation is to take effect.
(4) The terms and conditions determined by a licensee
and published in the Government Gazette under
sub-section (1) may, with the approval of the
30 Office, be varied by notice published by the
licensee in the Government Gazette not less than
2 months before the variation is to take effect.
(5) The Governor in Council may, by Order published
in the Government Gazette, declare that a person
35 or class of persons specified in the Order is, for
the purposes of this section, a domestic or small
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business customer or class of domestic or small
business customers.
(6) An Order under sub-section (5) may specify a
class of persons by reference to all or any of the
5 following--
(a) the person authorised to sell the electricity;
(b) the purpose for which the electricity is used;
(c) the quantity of electricity used;
(d) the period of use;
10 (e) the place of supply;
(f) any other specified factor relevant to the sale
of electricity.
(7) An Order under sub-section (5) may confer
powers and functions on, and leave any matter to
15 be determined by, the Office.
(8) In this section--
"domestic or small business customer" means a
person, or a member of a class of persons, to
whom an Order under sub-section (5)
20 applies.
(9) This section expires on 31 December 2003.
36. Terms and conditions of contracts for sale of
electricity to certain customers
(1) A term or condition in a contract for the supply or
25 sale of electricity by a licensee to a relevant
customer (whether entered into before or after the
commencement of this section) is void to the
extent that it is inconsistent with--
(a) terms and conditions determined by the
30 Office that--
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(i) specify the circumstances in which the
supply of electricity to premises may be
disconnected; and
(ii) require the licensee to provide
5 information specified by the Office
about the rights and entitlements of
customers; and
(iii) specify the circumstances in which the
licensee requires access to premises of
10 customers for the purpose of reading
meters or otherwise; and
(iv) make provision for confidentiality of
customer information; and
(b) any other terms and conditions determined
15 by the Office and provided for in the licence
of the licensee.
(2) If a term or condition of a contract is void
pursuant to sub-section (1) because of an
inconsistency with a term or condition referred to
20 in sub-section (1)(a) or (b), that term or condition
referred to in sub-section (1)(a) or (b) is deemed
to form part of that contract in place of the void
term or condition.
(3) The Governor in Council may, by Order published
25 in the Government Gazette, declare that a person
or class of persons specified in the Order is, for
the purposes of this section, a relevant customer
or class of relevant customers.
(4) An Order under sub-section (3) may specify a
30 class of persons by reference to all or any of the
following--
(a) the person authorised to sell the electricity;
(b) the purpose for which the electricity is used;
(c) the quantity of electricity used;
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(d) the period of use;
(e) the place of supply;
(f) any other specified factor relevant to the sale
of electricity.
5 (5) An Order under sub-section (3) may confer
powers and functions on, and leave any matter to
be determined by, the Office.
(6) In this section--
"relevant customer" means a person, or a
10 member of a class of persons, to whom an
Order under sub-section (3) applies.
(7) This section expires on 31 December 2003.
37. Deemed contracts with former franchise customers
(1) If a person--
15 (a) was a franchise customer within the meaning
of the Electricity Industry Act 1993
immediately before 1 January 2001; and
(b) has not entered into a new contract with a
licensee which takes effect on or after that
20 date--
there is deemed to be a contract between that
person and the licensee of which the person was a
customer immediately before that date for the
supply and sale of electricity at the tariff
25 determined by the licensee in accordance with any
Order in force under section 13 or, if there is no
such Order, at tariffs determined by the licensee
and published by the licensee in the Government
Gazette at least 2 months before they take effect
30 and otherwise on the terms and conditions
applying to that licensee under section 35 until--
(c) the contract is terminated; or
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(d) if the customer enters into a new contract for
the purchase of electricity from the licensee
in respect of the same premises, the date of
taking effect of that new contract--
5 whichever first occurs.
(2) This section expires on 31 December 2003.
38. Variation of contracts with former franchise
customers
A licensee may, subject to any Order in force
10 under section 13, vary any tariffs determined by
the licensee under section 37 and the terms and
conditions of its contracts under section 37 by
notice published--
(a) in the Government Gazette; and
15 (b) in a newspaper circulating generally in
Victoria--
not less than 2 months before the variations take
effect but not so that the terms and conditions, as
varied, are inconsistent with the terms and
20 conditions determined by the Office under
section 36(1).
39. Deemed contracts for supply and sale for certain
domestic or small business customers
(1) If--
25 (a) a person commences to take a supply of
electricity at premises from a licensee
without notice being first given to the
licensee who is responsible for the energy
supplied at those premises for the purposes
30 of settlement of the wholesale electricity
market; and
(b) that person is a domestic or small business
customer within the meaning of section 35--
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there is deemed on the commencement of that
supply to be a contract between the licensee and
that person for the supply and sale of electricity at
the tariffs and on the terms and conditions offered
5 by the licensee in accordance with section 35 for
the supply and sale of electricity by the licensee to
domestic or small business customers at those
premises.
(2) The deemed contract continues until--
10 (a) the contract is terminated; or
(b) if the domestic or small business customer
enters into a new contract for the purchase of
electricity from the licensee in respect of the
same premises, the date of taking effect of
15 that new contract--
whichever first occurs.
40. Deemed contracts for supply and sale for certain
relevant customers
(1) If--
20 (a) a person commences to take a supply of
electricity at premises from a licensee
without notice being first given to the
licensee who is responsible for the energy
supplied at those premises for the purposes
25 of settlement of the wholesale electricity
market; and
(b) that person is a relevant customer within the
meaning of section 36--
there is deemed on the commencement of that
30 supply to be a contract between the licensee and
that person for the supply and sale of electricity at
the tariffs and on the terms and conditions offered
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by the licensee in accordance with section 35 for
the supply and sale of electricity by the licensee at
those premises.
(2) The deemed contract continues until--
5 (a) the contract is terminated; or
(b) if the relevant customer enters into a new
contract for the purchase of electricity from
the licensee in respect of the same premises,
the date of taking effect of that new
10 contract--
whichever first occurs.
Division 6--Electricity Market Provisions
41. Definitions
In this Division--
15 "prescribed information", in relation to an
Order under this Division, means
information, or information of a class,
relating to, and identifying, customers of
retailers and records of the consumption of
20 electricity by such customers and any other
information specified in that Order;
"prescribed person" means--
(a) a distribution company;
(b) a retailer;
25 (c) a customer of a distribution company or
retailer;
(d) NEMMCO;
(e) the Office;
(f) a person nominated in writing to the
30 Office by a person referred to in
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paragraph (a), (b) or (d) as its agent for
the purposes of this Division.
42. Metering installation identification and registration
The Governor in Council--
5 (a) may, by Order published in the Government
Gazette, make a direction requiring a
licensee to assign to each metering
installation of a customer to whom it
supplies electricity a unique identifying mark
10 in accordance with the requirements
specified in the Order; and
(b) may, by Order published in the Government
Gazette, make a direction requiring a
licensee to include that mark on each
15 statement of charges for electricity given to a
customer in accordance with the
requirements so specified; and
(c) may, by Order published in the Government
Gazette, appoint NEMMCO or another
20 person to keep a register of unique
identifying marks and of the metering
installations to which they are assigned and
of any changes to them; and
(d) may, by Order published in the Government
25 Gazette, provide for or adopt processes and
procedures for--
(i) the registration (including the time of
registration) of unique identifying
marks with NEMMCO or another
30 person appointed under an Order under
paragraph (c); and
(ii) the allocation of unique identifying
marks by NEMMCO or another person;
and
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(iii) the provision from the register of
unique identifying marks to prescribed
persons; and
(iv) the provision of information from the
5 register or the release of such other
prescribed information by prescribed
persons to other prescribed persons as
is reasonably necessary to facilitate the
transfer of a customer from one retailer
10 to another retailer where the customer
has elected to make such a transfer.
43. Arrangements facilitating election by customer of
supply from another retailer
The Governor in Council may, by Order published
15 in the Government Gazette--
(a) provide for or adopt processes and
procedures to facilitate arrangements for the
transfer of a customer from one retailer to
another retailer where the customer has
20 elected to make such a transfer; and
(b) provide for or adopt processes and
procedures providing for the administration
of those arrangements and the customer
transfers occurring under them; and
25 (c) make a direction requiring the release of
prescribed information by prescribed persons
to other prescribed persons for those
purposes.
44. Metrology procedures
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(1) The Governor in Council may, by Order published
in the Government Gazette, make provision for
the matters set out in this section.
(2) An Order may specify, or provide for the
5 determination of, processes and procedures for the
collection, creation and provision of access to data
to be used--
(a) in order to facilitate arrangements under
which a customer of a retailer may elect to
10 become a customer of another retailer; or
(b) relating to the settlement of the wholesale
electricity market in the case of customers
making such elections.
(3) An Order--
15 (a) may authorise the Office or another person
to approve a variation of the processes and
procedures referred to in sub-section (2); and
(b) may specify the processes to be followed by
the Office or that other person in approving
20 the variation.
(4) An Order referred to in sub-section (3) must
provide that the Office or other person in
approving a variation to a process or procedure
must have regard to--
25 (a) the reasonable costs incurred in complying
with a process or procedure specified in sub-
section (2); and
(b) the reasonable costs incurred in complying
with the process or procedure as so varied.
30 (5) If the Office or other person approves a variation
to a process or procedure, that variation takes
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effect on the approval being given or on such
other date as is specified in the approval.
(6) An Order may--
(a) appoint NEMMCO or another person to
5 carry out any function under the Order; and
(b) authorise a specified person or class of
persons to carry out any function under or in
connection with the processes and
procedures referred to in sub-section (2).
10 45. Cost recovery
(1) The Governor in Council may by Order published
in the Government Gazette--
(a) provide for the setting and regulation of the
prices, fees and charges that a distribution
15 company may charge for or in connection
with the implementation and operation of
arrangements--
(i) under which a customer of a retailer
may elect to become a customer of
20 another retailer; and
(ii) relating to the settlement of the
wholesale electricity market in the case
of customers making such elections;
(b) empower the recovery of those prices, fees
25 and charges from all retailers or a class or
classes of retailers supplied by the
distribution company or all customers of a
retailer or a class or classes of customers of a
retailer so supplied.
30 (2) An Order under sub-section (1) may direct the
Office to make a determination under the Office
of the Regulator-General Act 1994 in respect of
such factors and matters or in accordance with
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such procedures, matters or bases as are specified
in the Order, or both.
46. General powers in relation to Orders
(1) An Order of the Governor in Council under this
5 Division may make ancillary provision for any
system, process or procedure required to be used
or other matter required to be done--
(a) in order to facilitate arrangements under
which a customer of a retailer may elect to
10 become a customer of another retailer; or
(b) relating to the settlement of the wholesale
electricity market in the case of customers
making such elections.
(2) An Order of the Governor in Council under this
15 Division may be made so as to apply, adopt or
incorporate wholly or partially or as amended by
the Order, the provisions of any document,
standard, rule, specification or method formulated,
issued, prescribed or published by any authority or
20 body whether--
(a) as formulated, issued, prescribed or
published at the time the Order is made or at
any time before the Order is made; or
(b) as amended from time to time.
25 (3) An Order of the Governor in Council under this
Division may confer powers and functions on, and
leave any matter to be determined by, the Office.
(4) An Order of the Governor in Council has effect as
from the day specified in the Order for the period
30 specified in the Order.
(5) An Order of the Governor in Council under this
Division has effect according to its tenor despite
anything to the contrary in any agreement or
contract.
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Division 7--Community Services Agreements
47. Community services
(1) An agreement by a retailer with the State for the
provision of community services is an agreement
5 for a term of not less than 5 years for the provision
by the retailer of electricity to a class of domestic
customers specified by the Secretary to the
Department of Human Services--
(a) at such concessional rates and in such
10 manner and at such times as are determined
by the Secretary; and
(b) on such other terms and conditions as are
agreed between the retailer and the State or,
in default of agreement, as are determined by
15 the Secretary.
(2) In determining terms and conditions under sub-
section (1)(b), the Secretary must have regard to
the risks and costs associated with the obligations
imposed on the retailer under the agreement.
20 48. Transitional provision relating to community services
(1) An agreement to which this section applies that,
but for this section, would cease to have effect on
31 December 2000, continues in force until the
expiration of the prescribed period or terminated
25 upon the making of a new agreement by the
retailer with the State for the provision of
community services by way of the provision of
electricity to certain customers, whichever first
occurs.
30 (2) The prescribed period is the period ending on
31 March 2001 or such other date, not later than
30 June 2001, as is agreed between the retailer
and the Secretary to the Department of Human
Services.
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(3) If a new agreement is not made between the
retailer and the State before the expiration of the
prescribed period, an agreement is deemed to have
been entered into on terms and conditions
5 determined by the Secretary in accordance with
section 47.
(4) This section applies to an agreement in force
before 31 December 2000 under which a retailer
agrees with the State to provide certain
10 community services by way of the provision of
electricity to customers.
49. Office may determine certain matters
(1) The Office, at the request of the Secretary to the
Department of Human Services or a retailer,
15 may--
(a) determine matters referred by the Secretary
or retailer for determination for the purposes
of making an agreement referred to in
section 47 or 48; or
20 (b) if an agreement referred to in section 47 or
48 has been entered into or deemed to be
entered into on terms and conditions
determined by the Secretary under
section 47, determine matters relating to
25 those terms and conditions (including the
variation of any of those terms and
conditions) referred by the Secretary or
retailer for determination.
(2) A request relating to a term or condition
30 determined by the Secretary under section 47 must
be made within one month after notice of the
determination is given.
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(3) A determination by the Office on matters referred
under sub-section (1) is binding on the parties to
the agreement.
(4) If a determination of the Office on matters
5 referred under sub-section (1) varies a term or
condition of an agreement, that agreement is
deemed to be so varied on that determination
being made.
(5) The matters which may be referred to the Office
10 under this section do not include--
(a) any matters relating to the class of domestic
customers specified by the Secretary under
section 47; or
(b) any matters determined by the Secretary
15 under section 47.
_______________
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PART 3--SEPARATION OF GENERATION TRANSMISSION
AND DISTRIBUTION SECTORS
Division 1--Interpretation
50. Definitions
5 In this Part--
"associate" has the meaning, in relation to a
person, it would have under the Corporations
Law if, in Division 2 of Part 1.2 of the
Corporations Law--
10 (a) for paragraphs (b) and (c) of
section 12(1) of that Law, there were
substituted--
"or
(b) the primary person's voting power
15 in a body corporate or whether the
primary person is in a position to
exercise certain powers in relation
to a body corporate;"; and
(b) sections 13, 14, 16(2) and 17 of that
20 Law were repealed;
"licensee" means--
(a) a distribution company, generation
company or transmission company; or
(b) a person that, under section 17, is
25 exempt from the requirement to obtain
a licence to generate electricity for
supply or sale--
but does not include a person who--
(c) requires a licence under Part 2 or an
30 exemption under section 17 only
because the person generates electricity
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for supply or sale if the person is not
entitled to generating capacity of more
than 200 megawatts; or
(d) is a statutory authority or a corporation
5 all the shares in which are held by or on
behalf of the State or by a statutory
authority;
"officer", in relation to a corporation, has the
same meaning as in section 9 of the
10 Corporations Law;
"relevant agreement" means an agreement,
arrangement or understanding--
(a) whether formal or informal or partly
formal and partly informal; and
15 (b) whether written or oral or partly written
and partly oral; and
(c) whether or not having legal or equitable
force and whether or not based on legal
or equitable rights;
20 "share" has the same meaning as in the
Corporations Law;
"voting share", in relation to a corporation, has
the same meaning as in section 9 of the
Corporations Law.
25 51. Relevant interest in a share
For the purposes of this Part, a person has a
relevant interest in a share if, and only if, the
person would be taken to have a relevant interest
in the share because of sections 608 and 609 of
30 the Corporations Law but a person does not have
a relevant interest in a share in a corporation only
because the person has a right of pre-emption in
relation to that share if the corporation--
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(a) was formed by two or more persons for the
purpose of enabling those persons to carry
on an activity jointly by means of their joint
control of, or by means of their ownership of
5 shares in, that corporation; and
(b) those persons, or persons who have acquired
some or all of the shares in that corporation,
continue to carry on that activity jointly by
either of those means.
10 52. Voting power
For the purposes of this Part, the voting power a
person has in a corporation is the person's voting
power determined in accordance with section 610
of the Corporations Law as if a reference in that
15 section of that Law to a relevant interest were a
reference to a relevant interest to which section 51
applies.
53. References to Corporations Law
A reference in this Part to the Corporations Law is
20 a reference to that Law as it would apply if
references in that Law to a body corporate,
corporation or company included references to--
(a) a body corporate of any kind wherever
formed or incorporated and whether formed
25 or incorporated under that Law or any other
law; and
(b) any unincorporated body, being a society,
association, company of proprietors or other
body, wherever formed, that, under the law
30 of its place of formation, may sue or be sued,
or may hold property in the name of the
secretary or some other officer of the society,
association or body, or in the name of any
trustee or trustees; and
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(c) any unincorporated body, being a society,
association, company of proprietors or other
body or undertaking to which is applied,
under the laws of the place of its formation,
5 with or without exceptions, a law in force in
that place relating to companies or
corporations as if it were a company or
corporation within the meaning of that law.
54. Unit trusts
10 If--
(a) assets used in, or liabilities of, the business
carried on by a licensee under a licence
under this Act; or
(b) an entitlement of a licensee to generating
15 capacity--
forms part of the trust estate of a unit trust, then,
for the purposes of this Part, units in the unit trust
are deemed to be shares in a corporation the
business of which is the business of the trust
20 estate of the unit trust.
55. Stock
If the whole or a portion of the share capital of a
licensee consists of stock, a reference in this Part
to a number of shares in the licensee as a
25 percentage is, in relation to an amount of stock, a
reference to the amount of stock that represents
that number of shares.
56. Controlling interest in a corporation
For the purposes of this Part but subject to
30 section 61, a person has a controlling interest in a
corporation if--
(a) the person's voting power in the corporation
is more than 20%; or
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(b) the person and the person's associates have
relevant interests in shares in the corporation
that confer or, if a dividend were declared or
a distribution of profits were made by the
5 corporation, would confer a right to receive
the benefit of more than 20% of the dividend
or distribution; or
(c) the person and the person's associates have
relevant interests in shares in the corporation
10 that confer or, in the event of any other
distribution of property or rights by the
corporation, whether on dissolution or
otherwise, would confer an entitlement to
receive the benefit of more than 20% of the
15 property and rights; or
(d) is able, whether alone or in concert with
another, and whether by any act or omission
or otherwise, to dominate or control--
(i) the corporation; or
20 (ii) the financial and operating policies or
management of the corporation; or
(iii) the activities of the corporation as a
licensee.
57. Substantial interest in a corporation
25 For the purposes of this Part but subject to
section 61, a person has a substantial interest in a
corporation if--
(a) the person's voting power in the corporation
is more than 5%; or
30 (b) the person and the person's associates have
relevant interests in shares in the corporation
that confer or, if a dividend were declared or
a distribution of profits were made by the
corporation, would confer a right to receive
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the benefit of more than 5% of the dividend
or distribution; or
(c) the person and the person's associates have
relevant interests in shares in the corporation
5 that confer or, in the event of any other
distribution of property or rights by the
corporation, whether on dissolution or
otherwise, would confer an entitlement to
receive the benefit of more than 5% of the
10 property and rights.
58. Entitlement to generating capacity
(1) For the purposes of this Part, a person is entitled
to generating capacity if--
(a) by virtue of ownership of, or an interest in,
15 land or other property or rights, the person
can generate electricity for supply or sale in
Victoria; or
(b) by virtue of a relevant agreement, the person
can require electricity to be made available
20 to it for supply or sale in Victoria (otherwise
than through the wholesale electricity
market); or
(c) the person has a traced interest in generating
capacity to which another person, being a
25 corporation, is entitled as provided by
paragraph (a) or (b)--
and the amount of generating capacity to which a
person is entitled is--
(d) in the case of paragraph (a), the installed or
30 name-plate generating capacity of the
relevant facilities which generate the
electricity; and
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(e) in the case of paragraph (b), the amount that,
under the relevant agreement, the person can
require to be made available to it for supply
or sale in Victoria; and
5 (f) in the case of paragraph (c), the aggregate of
the entitlements to generating capacity of all
corporations in whose entitlements to
generating capacity the person has a traced
interest as determined in accordance with
10 section 59.
(2) A person is not, under sub-section (1), entitled to
generating capacity if the entitlement arises only
because of the person's traced interest in
generating capacity of a licensee or because the
15 person and a licensee are parties to a relevant
agreement.
59. Traced interest in generating capacity
(1) For the purposes of this Part, a person's traced
interest in generating capacity to which a
20 corporation is entitled is calculated as follows--
(a) if the person has a direct interest in the
corporation, the corporation's entitlement to
generating capacity is multiplied by that
direct interest;
25 (b) if the person holds an interest in the
corporation through a chain of corporations
each of which is referred to in this section as
an "interposed entity"--
(i) the direct interest of the person in the
30 first interposed entity is multiplied by
the direct interests of each interposed
entity in the next interposed entity in
the chain until, and including, the last
interposed entity's direct interest in the
35 corporation; and
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(ii) the product of that multiplication is
multiplied by the corporation's
entitlement to generating capacity;
(c) if the person holds an interest in the
5 corporation through two or more chains of
corporations, the person's traced interests in
the corporation's entitlement to generating
capacity calculated through each chain in
accordance with paragraph (b) are added
10 together;
(d) if the person holds a direct interest in the
corporation and an interest in the corporation
through one or more chains of corporations,
the person's traced interest in the
15 corporation's entitlement to generating
capacity calculated in accordance with
paragraph (a) and the person's traced
interests in the corporation's entitlement to
generating capacity calculated through each
20 chain in accordance with paragraph (b) are
added together.
(2) For the purposes of this Part, in calculating the
traced interest of a person in a corporation's
entitlement to generating capacity, any direct
25 interest of an interposed entity in that person must
be disregarded.
(3) If the Office is of the opinion that the calculation
of a person's traced interest in generating capacity
of a corporation involves duplication, the Office
30 may determine that any one or more specified
interests must be disregarded.
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60. Direct interest in a corporation
(1) For the purposes of this Part, the direct interest of
a person in the corporation referred to in section
59(1)(a) or in the corporation that is the next
5 interposed entity in a chain is--
(a) the person's voting power in the corporation,
expressed as a fraction; or
(b) if the person and the person's associates have
relevant interests in shares in the corporation
10 that confer, or if a dividend were declared or
a distribution of profits were made by the
corporation would confer, a right to receive a
share of the dividend or distribution, that
share of the dividend or distribution
15 expressed as a fraction of the total dividend
or distribution; or
(c) if the person and the person's associates have
relevant interests in shares in the corporation
that confer, or in the event of any other
20 distribution of property or rights by the
corporation, whether on dissolution or
otherwise, would confer, an entitlement to
receive a share of the property or rights, that
share of the property or rights expressed as a
25 fraction of the total property or rights; or
(d) if the person is able, whether alone or in
concert with another, and whether by any act
or omission or otherwise, to dominate or
control--
30 (i) the corporation; or
(ii) the financial and operating policies or
management of the corporation; or
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(iii) the activities of the corporation--
the number 1--
whichever is the highest.
(2) In calculating a person's direct interest in a
5 corporation for the purposes of section 59(1)(a),
the person's or the person's associate's relevant
interest in shares in the corporation in which an
interposed entity in the chain has a relevant
interest must be disregarded.
10 61. Regulations relating to relevant interests and
generating capacity
Without derogating from section 62, the
regulations--
(a) may provide that relevant interests, or
15 particular classes of relevant interests, in
shares, or in particular classes of shares, are,
in such circumstances and subject to such
conditions (if any) as are specified in the
regulations, to be disregarded for such
20 purposes as are specified in the regulations;
and
(b) may provide that generating capacity, or a
particular class of generating capacity, to
which a person is entitled is, in such
25 circumstances and subject to such conditions
(if any) as are specified in the regulations, to
be disregarded for such purposes as are
specified in the regulations.
62. Certain shareholders agreements to be disregarded
30 For the purposes of determining under this Part
whether a person has a controlling interest or a
substantial interest in a licensee, a relevant
interest of an associate of the person must be
disregarded if the Office certifies in writing that
35 the Office is satisfied--
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(a) that the association arises solely under
section 12(1)(e) or section 15(1) of the
Corporations Law by virtue of provisions of
the constitution or other constituent
5 documents of a corporation or other entity, a
shareholders' agreement or other consortium
arrangements and that the provisions are not
unusual having regard to conventional or
usual investment considerations;
10 (b) that the person or any related corporation
does not have the power--
(i) to control or influence the composition
of the board of directors of the licensee
otherwise than by control of the
15 exercise at a general meeting of the
licensee of voting rights in respect of
particular shares or a particular
proportion of shares in the licensee or
the exercise of powers of appointment
20 of a specified number of directors of
the licensee; or
(ii) to control or influence the conduct of
affairs of the licensee otherwise than by
control of the exercise at a general
25 meeting of the licensee of voting rights
in respect of particular shares or a
particular proportion of shares in the
licensee or by the actions of directors
appointed by the person.
30 63. Certain "see-through" interests to be disregarded
For the purpose of determining under this Part
whether a person has a controlling interest or a
substantial interest in a licensee, a relevant
interest that the person has solely by virtue of
35 section 608(3) of the Corporations Law must be
disregarded if the Office certifies in writing--
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(a) that the Office is satisfied that the person or
any related corporation of the person does
not have the power--
(i) to control or influence the composition
5 of the board of directors of the licensee
otherwise than by having voting power
in the licensee of not more than 20% or
exercising powers of appointment of
not more than one-fifth of the directors
10 of the licensee; or
(ii) to control or influence the conduct of
affairs of the licensee otherwise than by
having voting power in the licensee of
not more than 20% or by the actions of
15 directors appointed by it being not
more than one-fifth of the directors of
the licensee; and
(b) that the Office is satisfied that--
(i) in the case of determining whether the
20 person has a controlling interest, the
person does not have--
(A) voting power of more than 20% in
the licensee or the power to
control the disposal of more than
25 20% of the voting shares in the
licensee, not including a right of
pre-emption whether direct or
indirect in relation to those shares;
or
30 (B) the right to receive directly or
indirectly the benefit of more than
20% of the dividends declared or
distribution of profits made by the
licensee in respect of a financial
35 year of the licensee; or
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(C) the right to receive directly or
indirectly the benefit of more than
20% of the property and rights of
the licensee on a dissolution or
5 otherwise; or
(ii) in the case of determining whether the
person has a substantial interest, the
person does not have--
(A) voting power of more than 5% in
10 the licensee or the power to
control the disposal of more than
5% of the voting shares in the
licensee, other than a right of pre-
emption whether direct or indirect
15 in relation to those shares; or
(B) the right to receive directly or
indirectly the benefit of more than
5% of the dividends declared or
distribution of profits made by the
20 licensee in respect of a financial
year of the licensee; or
(C) the right to receive directly or
indirectly the benefit of more than
5% of the property and rights of
25 the licensee on a dissolution or
otherwise.
64. Effect of certificate under section 62 or 63
A certificate of the Office under section 62 or 63
continues to have effect unless the Office
30 determines that--
(a) a change has occurred in respect of the
matters to which the certificate relates; and
(b) the certificate ceases to have effect.
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Division 2--Application of Part
65. Application of Part
This Part (including any provision of the
Corporations Law referred to or applied for the
5 purposes of this Part) applies in relation to any
transaction, agreement, arrangement,
understanding or undertaking--
(a) whether the transaction, agreement,
arrangement, understanding or undertaking
10 is entered into, or made, in this State or
elsewhere; and
(b) whether the shares (if any) to which the
transaction, agreement, arrangement,
understanding or undertaking relates are
15 registered in this State or elsewhere; and
(c) whether the proper law of the transaction,
agreement, arrangement, understanding or
undertaking is the law of this State or not.
66. Application of Part to partnerships
20 (1) In this section--
"partner" includes member of an unincorporated
joint venture;
"partnership" includes unincorporated joint
venture.
25 (2) This Part applies to partnerships, and partners, as
if a partnership were a corporation and a partner
were a member of a corporation.
(3) For the purposes of this Part--
(a) a partnership is deemed to be a corporation
30 and a person;
(b) a partner is deemed--
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(i) to be a member of the corporation; and
(ii) to hold shares bearing the same
proportion to all the shares in the
corporation as the partner's right to
5 receive a distribution of profits of the
partnership bears to the sum of the
rights of partners to receive such
distributions;
(c) rights and powers of a partner in respect of
10 the partnership, including voting rights and
rights to dispose of interests in the
partnership or the partnership property are
deemed to be rights and powers of a member
of a corporation attached to and conferred by
15 that member's shares in the corporation;
(d) the committee of management (by whatever
name called) of a partnership is deemed to be
the board of directors of the partnership;
(e) a meeting of the partners of a partnership is
20 deemed to be a general meeting of a
corporation.
(4) For the purposes of this Part and its application to
a partnership, "licensee" includes a partnership
the members of which are the holders of a licence
25 to generate electricity for supply or sale or to
distribute or supply electricity.
67. Part to be relevant legislation
This Part is relevant legislation for the purposes of
the Office of the Regulator-General Act 1994.
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Division 3--Separation of Generation Transmission and
Distribution Sectors
68. Prohibited interests
(1) It is unlawful for a person to hold a prohibited
5 interest.
(2) Subject to sub-section (11), a licensee holds a
prohibited interest if the licensee--
(a) has a controlling interest in one or more
other licensees; or
10 (b) has a substantial interest in 2 or more other
licensees.
(3) Subject to sub-sections (5), (6), (7) and (8), a
person, not being a licensee, holds a prohibited
interest if the person--
15 (a) has a controlling interest in 2 or more
licensees; or
(b) has a substantial interest in 3 or more
licensees; or
(c) has a controlling interest in one licensee and
20 a substantial interest in 2 licensees.
(4) A distribution company or a person who has a
controlling interest in a distribution company
holds a prohibited interest if the company or
person is entitled, whether or not through a traced
25 interest, to generating capacity of more than
200 megawatts.
(5) A person, not being a licensee, does not hold a
prohibited interest within the meaning of sub-
section (3) because the person has a controlling
30 interest in 2 or more licensees or a substantial
interest in 3 or more licensees if--
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(a) the Office is satisfied that each such interest
is held only as a passive institutional
investment; and
(b) the Office determines in writing that the
5 person does not hold a prohibited interest.
(6) At any time after a determination is made under
sub-section (5) in relation to a person, the Office
may, by notice in writing served on that person,
determine that circumstances have changed so that
10 it is no longer satisfied as to the matters set out in
sub-section (5)(a) in relation to the person and that
the person has a prohibited interest within the
meaning of sub-section (3).
(7) A person does not hold a prohibited interest by
15 reason only of holding an interest to which a
certificate given by the Office under section
173(6A) of the Electricity Industry Act 1993
before 1 January 2001 applies.
(8) A person does not hold a prohibited interest
20 within the meaning of sub-section (2), (3) or (4)
if--
(a) the prohibited interest arises as a result of an
acquisition referred to in section 88(9)(a) or
(b) of the Trade Practices Act 1974 of the
25 Commonwealth; and
(b) either--
(i) the acquisition was authorised under
the Trade Practices Act 1974 of the
Commonwealth; or
30 (ii) the Office has determined that it is
satisfied that the ACCC has considered
the acquisition and that the ACCC has
notified the person that it does not
intend to take action in relation to the
35 acquisition under section 50 of that Act.
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(9) For the purposes of this Part--
(a) a licensee is not capable of having a
prohibited interest in itself; and
(b) if 2 or more licensees are carrying on
5 activities under their licences in the same
business undertaking, one of those licensees
is not capable of having a prohibited interest
in another of those licensees.
69. Temporary exemption from prohibition
10 (1) The Office may, by notice published in the
Government Gazette, declare that a specified
person does not, by reason only of having a
specified controlling interest or specified
substantial interest, have a prohibited interest
15 during a specified period ending not more than
6 months after the day on which the declaration is
made.
(2) A declaration under sub-section (1) may be made
subject to such conditions as are specified in it.
20 (3) A declaration under this section has effect
according to its terms and ceases to have effect--
(a) at the end of the specified period; or
(b) on a breach of a condition to which it is
expressed to be subject.
25 (4) Only one declaration may be made under this
section in respect of a specified controlling
interest or a specified substantial interest.
70. Power to require information relating to interests
(1) The Office may, by notice in writing served on a
30 person who is, or is suspected by the Office of--
(a) having a relevant interest in shares in a
licensee; or
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(b) being the holder of a controlling interest or
substantial interest in a licensee; or
(c) being entitled to generating capacity--
require the person to furnish information specified
5 in the notice for the purpose of determining
whether that person or any other person has, or is
taking action to acquire, a prohibited interest.
(2) A notice under sub-section (1) may require the
person on whom the notice is served or, if that
10 person is a corporation, 2 directors of the
corporation, to verify by statutory declaration any
information furnished in compliance with the
notice.
(3) If--
15 (a) a person on whom a notice under sub-section
(1) has been served fails to furnish, within
the time allowed in the notice, the
information required by the notice, verified
as required by the notice; or
20 (b) information furnished by the person in
response to the notice is, in the opinion of
the Office, by reason of anything included in
it or omitted from it, false or misleading in a
material particular--
25 the Office may, by reason only of that fact, by
notice in writing served on a person, do one or
more of the following--
(c) determine that the person is an associate of
another, or that another is an associate of that
30 person;
(d) determine that the person, or another to
whom a determination under paragraph (c)
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relates, has a relevant interest in specified
shares in a licensee;
(e) determine that the voting rights attaching to
all or any of the shares to which a
5 determination under paragraph (d) relates are
suspended;
(f) determine that a person is entitled to
generating capacity;
(g) determine that the person, or another to
10 whom a determination under paragraph (c)
relates, has a prohibited interest.
71. Disposal of interest
(1) If the Office--
(a) makes a determination under section 70; or
15 (b) forms the opinion--
that a person (in this section referred to as "the
offender") has a prohibited interest, the Office
may, by notice in writing served--
(c) if the offender holds shares that cause the
20 offender to have a prohibited interest
(whether alone or together with shares held
by any other person)--on the offender; or
(d) on any other person who holds shares that
cause the offender to have a prohibited
25 interest (whether alone or together with
shares held by any other person); or
(e) if the offender is entitled to generating
capacity, on the offender--
determine that the offender or that other person
30 must dispose of the relevant shares otherwise than
to an associate of the offender, within a period
specified in the notice, being not less than
3 months after service of the notice, and that, until
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those shares are disposed of, the voting rights
attaching to all or to specified shares in a licensee
in which the offender or an associate of the
offender has a relevant interest are suspended.
5 (2) For the purposes of sub-section (1), the relevant
shares that a person may be required by a notice
under that sub-section to dispose of otherwise
than to an associate of the offender are--
(a) subject to paragraph (b), any shares held by
10 the person that would need to be so disposed
of in order to cause the offender to cease to
have a prohibited interest; or
(b) if, after all the shares held by the person to
which the offender is entitled were so
15 disposed of, the offender would continue to
have a prohibited interest--the total number
of those shares.
(3) For the purposes of this section a person is not to
be taken to have disposed of shares unless and
20 until the person ceases to hold the shares and the
offender and the offender's associates cease to
have a relevant interest in the shares.
(4) If a person served with a notice of a determination
under sub-section (1) requiring the person to
25 dispose of shares fails to comply with the notice
within the period specified in the notice, the
shares last registered in the name of that person
that caused the person to have a prohibited interest
and specified by the Office by notice in writing
30 served on the person are, by force of this sub-
section, forfeited to the State.
(5) If--
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(a) a person served with a notice of a
determination under sub-section (1)
requiring the person to dispose of shares fails
to comply with the notice within the period
5 specified in the notice; and
(b) the person is a member of a partnership and
the shares are an interest in the partnership;
and
(c) the person is one of 2 or more persons
10 constituting a licensee--
the Office may, by notice in writing given to the
licensee, revoke the licence.
(6) The Office must cause written notice of--
(a) a determination under sub-section (1)
15 requiring a person to dispose of shares in a
licensee; or
(b) a determination under section 70(3)(e) that a
person's voting rights are suspended--
to be served on the relevant person.
20 (7) If the Office--
(a) makes a determination under section 70(3);
or
(b) forms the opinion--
that a person (in this section referred to as "the
25 offender") has a prohibited interest because of the
circumstances referred to in section 56(d), the
Office may, by notice in writing served on the
offender, determine that the offender--
(c) must desist from dominating or controlling
30 the relevant corporation, the financial and
operating policies or management of the
corporation or the activities of the
corporation as a licensee; and
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(d) must terminate a relevant agreement--
to the extent necessary to prevent it having a
prohibited interest, within a period specified in the
notice, not being less than 3 months after service
5 of the notice.
72. Voting rights in respect of certain shares
If written notice is served on a licensee of a
declaration of the Office under this Part--
(a) that a person is an associate of another; or
10 (b) that a person has a prohibited interest in a
licensee; or
(c) that voting rights are suspended--
the determination is binding and has effect for the
purposes of the application of this Part in relation
15 to any general meeting of the licensee held after
receipt by the licensee of the notice.
73. Revocation of licence
(1) If the Office makes a determination under section
70(3), or forms the opinion under section 71, that
20 a licensee has a prohibited interest because of its
entitlement to generating capacity, the Office may
by notice in writing served on the licensee
determine that the licensee dispose of an interest
in land or other property or rights, or terminate a
25 relevant agreement, to the extent necessary to
prevent it having a prohibited interest within a
period specified in the notice, not being less than
3 months after the service of the notice.
(2) If a licensee does not comply with a determination
30 under sub-section (1), the Office may by notice in
writing given to the licensee, revoke the licence.
74. Annulment of certain resolutions of licensee
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(1) If the Office is of the opinion that a resolution of a
general meeting of the licensee has been passed as
a result of the admission of votes that should not,
by virtue of a declaration of the Office under
5 section 70(3) or 71 have been admitted, the Office
may, by notice in writing served on the licensee,
declare the resolution to have been (at all times)
null and void.
(2) If notice of a declaration under sub-section (1) is
10 served on a licensee, the Office must, at the same
time or as soon as practicable thereafter, cause
written notice of the declaration to be served on
each person whose votes should not, in the
opinion of the Office, have been admitted.
15 (3) A notice under sub-section (1) does not have any
effect unless it is served on the licensee within
one month after the date of the resolution to which
it relates.
75. Making, review and revocation of determination by
20 Office
(1) A determination may be made by the Office under
this Part on the basis of such information as the
Office considers sufficient in the circumstances.
(2) A determination of the Office under this Part is
25 effective when written notice is served on the
relevant person.
(3) Despite an application being made under
section 37 of the Office of the Regulator-
General Act 1994 for review of a determination
30 of the Office under this Part, the determination
continues to have effect pending determination of
the application except as otherwise determined by
the Office.
(4) The Office may, by notice in writing served on the
35 person on whom notice of the determination was
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served, revoke or vary a determination of the
Office under this Part with effect from the date of
the determination or some other date determined
by the Office.
5 76. Appeal against determination of Office
(1) Despite anything to the contrary in the Office of
the Regulator-General Act 1994, a person on
whom notice of a determination of the Office is
served under this Part may appeal to the Supreme
10 Court against the determination.
(2) An appeal under this section must be instituted
within 21 days after notice of the determination
under appeal is served on the appellant and that
period of limitation may not be extended.
15 (3) The Supreme Court may, on an appeal under this
section, if satisfied that proper grounds for making
the determination did not exist, quash or vary the
determination, either conditionally or
unconditionally and with effect from the date of
20 the determination or some other date, as the Court
thinks fit, and make any consequential or ancillary
orders that may be just.
(4) Despite any appeal under this section, a
determination other than--
25 (a) a determination under section 71 requiring a
person to dispose of shares in the licensee; or
(b) a determination under section 71 that shares
in the licensee are forfeited to the State--
continues to have effect pending determination of
30 the appeal.
(5) Except as provided in this Part, a determination of
the Office under this Part may not be challenged
or called into question.
77. Sale of forfeited shares
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(1) The Office is to sell any shares forfeited to the
State under this Part.
(2) For the purposes of any such sale, the Office is not
bound by any restriction on the sale of shares
5 whether contained in the constitution of the
licensee or in any other document.
(3) Any money realised from the sale of forfeited
shares under this section must, after deduction of
the reasonable costs of the forfeiture and sale be
10 paid to the person from whom the shares were
forfeited.
78. Service
A notice required or authorised by this Part to be
served on a person may--
15 (a) in the case of a natural person--
(i) be served personally on the person; or
(ii) be sent by post to the person at his or
her last known place of residence,
business or employment; or
20 (b) in the case of a company or other body--be
left at, or sent by post to, its registered office
or a place of business of the company or
body whether within the State or elsewhere.
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PART 4--ELECTRICITY TRANSMISSION
Division 1--Powers of VENCorp
79. Powers of VENCorp
(1) Without limiting any other functions of VENCorp,
5 the functions of VENCorp in relation to the
electricity industry are--
(a) to plan, and direct the augmentation of, the
electricity transmission system;
(b) to provide information and other services to
10 facilitate decisions for investment and the
use of resources in the electricity industry;
(c) any other functions conferred on VENCorp
under this Part or under a licence issued
under Part 2.
15 (2) This section has effect subject to the National
Electricity (Victoria) Law and the National
Electricity Code.
Division 2--Load Shedding in Situations of Emergency
Supply Shortage
20 80. Determination of customer load shedding
arrangements
(1) For the purposes of the National Electricity Code,
VENCorp may enter into agreements with the
holders of licences to distribute and supply or sell
25 electricity to determine the arrangements to apply
in respect of customer load shedding in
circumstances where the available supply of
electricity is, or is likely to become, less than is
sufficient for the reasonable requirements of the
30 community.
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(2) If VENCorp is unable to reach agreement with a
licensee about load shedding arrangements within
6 months after VENCorp offers to enter into an
agreement with the licensee for that purpose, the
5 Minister may determine those arrangements.
(3) The Minister may appoint a person to review and
advise the Minister on any proposed arrangements
under this section.
(4) The Minister must cause notice in writing to be
10 given to a licensee of the arrangements
determined under sub-section (2) in respect of that
licensee's licence.
(5) The notice must be given not less than 14 days
before the arrangements take effect in relation to
15 that licensee.
(6) In determining load shedding arrangements, the
Minister must take into account the need to--
(a) protect any undertaking of a distribution
company, a transmission company or a
20 generation company or a person who
supplies electricity to another person; and
(b) ensure the safe, economical or effective
supply of electricity; and
(c) ensure that the available electricity is fairly
25 distributed to the community; and
(d) increase the available supply of electricity;
and
(e) regulate the use of the available supply of
electricity, having regard to the needs of the
30 community.
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(7) The Minister must inform VENCorp of any
arrangements determined under sub-section (2).
(8) VENCorp must from time to time publish a notice
of any arrangements determined under this
5 section.
81. Powers in relation to load shedding
(1) If it appears to VENCorp at any time that the
available supply of electricity is, or is likely to
become, less than is sufficient for the reasonable
10 requirements of the community, VENCorp may--
(a) inform the community in such manner as it
thinks fit about that shortfall in supply; and
(b) subject to the directions of NEMMCO, give
directions to a licensee to shed customer load
15 in accordance with the arrangements
applying to that licensee under section 80;
and
(c) give directions to any person that are
incidental to or consequential on a direction
20 under paragraph (b).
(2) A direction--
(a) may operate generally, or may be limited in
its operation according to specified times,
places, circumstances, conditions or
25 restrictions; and
(b) may, if so specified in the direction, allow
VENCorp to exempt a person or body from
having to comply with the direction; and
(c) may be addressed or directed to people and
30 bodies generally or particularly; and
(d) subject to sub-section (5), takes effect when
made or, if a later time is specified in the
direction, at that later time; and
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(e) has effect as if enacted in this Act.
(3) A direction including a direction under sub-
section (4) must be published in the Government
Gazette as soon as possible after it is made.
5 (4) VENCorp may at any time by direction under this
section amend or revoke a direction made, or
purportedly made, under this section.
(5) If a direction of VENCorp under sub-section (4)
amending an earlier direction for the purpose of
10 correcting a defect, mistake or omission--
(a) includes the statement that the earlier
direction is deemed to have been made as so
amended; and
(b) is made not later than 3 months after the
15 earlier direction was made--
the earlier direction is deemed to have been made
as so amended.
(6) The amendment, revocation or expiry of a
direction does not affect--
20 (a) the previous operation of the direction; or
(b) the validity of any action taken under the
direction before the amendment, revocation
or expiry; or
(c) any penalty or punishment incurred in
25 respect of any failure to comply with the
direction before the amendment, revocation
or expiry or any proceeding or remedy in
respect of the penalty or punishment.
(7) VENCorp must notify the Minister before taking
30 any action under sub-section (1).
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82. Offences
(1) A person or body who is aware of a direction
under section 81 must comply with the direction.
(2) A person--
5 (a) to whom electricity is supplied; and
(b) who is aware of a direction restricting or
prohibiting the use of electricity--
must do everything reasonably possible to ensure
that electricity is not used on the land or premises
10 to which the electricity is supplied in
contravention of the direction.
(3) A person must not obstruct another person--
(a) exercising a power given to; or
(b) complying with an obligation imposed on--
15 the other person under section 81 if the person has
been shown a copy of the notice giving the power
or imposing the obligation.
(4) A person is deemed to be aware of a direction if
VENCorp has caused--
20 (a) the direction to be published in a newspaper
circulating throughout the area in which the
direction applies; or
(b) details of the direction to be broadcast by
means of radio or television transmission
25 throughout the area in which the direction
applies.
(5) In any proceedings for an offence against this
section, a certificate purporting to be signed by
VENCorp to the effect that details of a direction
30 were broadcast by means of radio or television
transmission throughout a particular area on a
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specified day is evidence of the facts set out in the
certificate.
(6) In any proceedings for an offence against this
section, if a direction was made in respect of part
5 of a day and first broadcast on that day, it is
sufficient defence for the defendant to prove that
at the time of the commission of the offence, the
defendant--
(a) did not know; and
10 (b) could not reasonably have known--
of the direction.
(7) A person must not contravene sub-section (1), (2)
or (3).
Penalty: in the case of a natural person,
15 10 penalty units.
in the case of a body corporate,
240 penalty units.
83. Provision of information
Subject to the regulations, VENCorp may give
20 any information it receives from a licensee about
any past or likely future insufficiency in the
supply of electricity by the licensee to the
Minister and to any other prescribed person.
84. Immunity from suit
25 A person acting in good faith in the execution of
section 81 or any direction under that section is
not liable to any action, claim or demand on
account of any damage, loss or injury sustained or
alleged to be sustained because of the operation of
30 that section or of anything done or purporting to
be done under that section or any direction under
that section.
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PART 5--POWERS OF ELECTRICITY CORPORATIONS
85. Definition
In this Part "electricity corporation" means
VENCorp, a distribution company, a transmission
5 company or a generation company.
86. Power to acquire easements with approval of
Governor in Council
(1) A corporation to which this section applies may,
with the approval of the Governor in Council,
10 acquire compulsorily an easement for the purpose
of erecting and maintaining power lines.
(2) The Land Acquisition and Compensation Act
1986 applies to this section and for that purpose--
(a) the Electricity Industry Act 2000 is the
15 special Act; and
(b) the corporation to which this section applies
is the Authority.
(3) In this section--
"corporation to which this section applies"
20 means a distribution company, a
transmission company or a generation
company;
"easement" includes right, charge, power or
privilege in, under, over, affecting or in
25 connection with, land.
87. Acquisition of land within Latrobe area
(1) A generation company or an associated entity of a
generation company may recommend to the
Minister administering the Mineral Resources
30 Development Act 1990 the compulsory
acquisition of any land within the Latrobe area
which is or may be required by the generation
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company or associated entity for or in connection
with, or as incidental to, carrying out operations
under a licence issued to the company under
Part 2.
5 (2) The Land Acquisition and Compensation Act
1986 applies to this section and for that purpose--
(a) the Electricity Industry Act 2000 is the
special Act; and
(b) the Minister administering the Mineral
10 Resources Development Act 1990 is the
Authority.
(3) Despite anything to the contrary in the Land
Acquisition and Compensation Act 1986,
section 109(2) of that Act does not apply to land
15 acquired in accordance with this section by the
Minister administering the Mineral Resources
Development Act 1990.
(4) In this section--
"associated entity", in relation to a generation
20 company, means a person to whom an
exemption under section 17 applies in
respect of an activity relating to the
generation of electricity for supply or sale,
being an activity for which the generation
25 company holds a licence under Part 2;
"Latrobe area" means the municipal district of
the Shire of LaTrobe.
88. Making of easements in subdivisions
(1) If a proposal for subdivision or consolidation of
30 land is referred to an electricity corporation under
the Planning and Environment Act 1987, the
corporation may require easements for the use of
the corporation for any one or more of the
purposes set out in the Schedule.
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(2) The creation of an easement for a purpose
specified in Column 1 of the Schedule gives to the
corporation the rights specified in relation to an
easement created for that purpose in Column 2 of
5 the Schedule.
89. Certain easements may be used for carriage service
(1) Despite anything to the contrary in any Act or
instrument, an easement to which a transmission
company is entitled may be used by a
10 transmission company for the provision by it or
another person of a carriage service within the
meaning of the Telecommunications Act 1997 of
the Commonwealth.
(2) Nothing in this Act authorises a transmission
15 company to acquire compulsorily land or an
interest in land for the purposes only of a carriage
service within the meaning of sub-section (1).
90. Easements over lands held by Crown licensees or
lessees
20 (1) If an easement acquired by an electricity
corporation for any of the purposes of this Act is
an easement over land held or occupied by any
licensee or lessee of the Crown, a description of
the easement and a notification it has been so
25 acquired must be forwarded without delay by the
corporation to the Secretary to the Department of
Natural Resources and Environment.
(2) If an easement referred to in sub-section (1) is
over land held or occupied under licence, the
30 description and notification must be endorsed on
the licence by the Secretary to the Department of
Natural Resources and Environment and be
registered in that Department.
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(3) If a Crown grant is issued to a person of the land
over which any such easement has been taken, the
grant is subject to the easement.
91. Arrangements for joint use of easements
5 Despite anything to the contrary in this Act--
(a) any two or more of the electricity
corporations, distribution companies,
transmission companies and generation
companies may enter into an agreement for
10 the exercise of rights and privileges, and
undertaking of obligations, by a party to the
agreement in respect of any easement, right
or privilege to which another party to the
agreement is entitled; and
15 (b) any such agreement takes effect according to
its terms.
92. Cancellation of easements
(1) If--
(a) a generation company enters into an
20 agreement to grant an easement over its land
to any person; and
(b) that easement is registered under the
Transfer of Land Act 1958; and
(c) that agreement provides for the termination
25 of the easement or part of the easement on
the giving of notice by the generation
company to the person to whom the
easement is granted or any successor in title
of that person; and
30 (d) the generation company gives that notice in
accordance with the agreement--
the generation company may give written notice
to the Registrar of Titles of the termination of the
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easement, together with a copy of the agreement
and of the notice under paragraph (d).
(2) On being notified under sub-section (1), the
Registrar of Titles must record in the Register the
5 extinguishment of the easement or part.
93. Powers as to works etc.
(1) For the purposes of this Act, an electricity
corporation, subject to this Act--
(a) may enter upon any lands and sink bores and
10 make surveys and do any other acts or things
necessary for sinking bores or making
surveys; and
(b) may, with any equipment or devices, receive,
store, transmit, or supply electricity, water,
15 brown coal or products of brown coal over,
or under, any land and may enter on any land
upon either side of such equipment and fell
or remove any tree or part of a tree or any
obstruction which in the opinion of the
20 electricity corporation it is necessary to fell
or remove; and
(c) subject to the Water Act 1989, may divert
water from any waterway, lake, lagoon,
swamp or marsh, or alter the bed, course or
25 channel of any waterway; and
(d) may enter upon any public or private land or
roads and construct any works or place on
under or over any such land or road any
structure or equipment and may repair, alter
30 or remove any such structure or equipment
or any works under its control; and
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(e) may do all other things necessary or
convenient for constructing, maintaining,
altering, or using any works or undertakings
of, or under the control of, the electricity
5 corporation.
(2) In the exercise of the powers under sub-section
(1), an electricity corporation must do as little
damage as may be and, must, if required within
2 years from the exercise of the powers, make full
10 compensation to the owner of and all parties
interested in any land for any damage sustained by
them in consequence of the exercise of the
powers.
(3) Compensation under sub-section (2) shall be
15 either a gross sum or a yearly rent as may be
agreed and, in default of agreement, shall be
determined in the manner provided in the Land
Acquisition and Compensation Act 1986.
(4) An electricity corporation may exercise its powers
20 under this section by its officers or employees or
by any other person authorised in writing by it or
by the officers or employees of any such person.
(5) This section applies--
(a) to a distribution company, transmission
25 company and a generation company holding
a licence under Part 2; and
(b) to the holder of any other licence under
Part 2 as if a reference in this section to an
electricity corporation included a reference
30 to the holder--
and so applies--
(c) subject to the conditions of the licence in
relation to the exercise of powers under this
section; and
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(d) subject to any access code applying in
relation to the exercise of powers under this
section issued by the Office of the
Regulator-General under the Office of the
5 Regulator-General Act 1994.
94. Rateability of certain property
(1) Land of the Crown used by, or land vested in and
unoccupied or used for the purposes of this Act
by, VENCorp is not rateable land within the
10 meaning of the Local Government Act 1989.
(2) Despite anything to the contrary in the Local
Government Act 1989, land is not occupied land
for the purposes of that Act merely because any
pole, wire or cable of a distribution company,
15 transmission company or generation company is
on, under or over that land.
(3) The Loy Yang B land is rateable land and an
agreement under section 27 of the Loy Yang B
Act 1992 in force immediately before 8 May 1997
20 has effect as if it had been entered into under sub-
section (4)(a) of this section.
(4) Despite anything in the Local Government Act
1989--
(a) a generation company or an associated entity
25 of a generation company that is liable to pay
rates in respect of land used for generation
functions may, instead of paying rates in
respect of that land, elect by notice in writing
given to the relevant council to pay amounts
30 agreed or determined under sub-section (5);
or
(b) the relevant council may, by notice in
writing given to a generation company or an
associated entity of a generation company
35 that is liable to pay rates in respect of land
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used for generation functions, require that
company or associated entity to pay, instead
of rates in respect of that land, amounts
agreed or determined under sub-section (5).
5 (5) A generation company or associated entity that
elects to, or is required to, pay amounts under this
sub-section must pay to the relevant council--
(a) such amount or amounts as are agreed
between the generation company or
10 associated entity and the relevant council, at
such times as are so agreed; or
(b) if, at any time, the amount required to be
paid is not the subject of an agreement under
paragraph (a) or the prior determination of
15 an arbitrator, such amount and at such times
as are determined by an arbitrator jointly
appointed by the generation company or
associated entity and the relevant council or,
if within a reasonable time they fail to agree
20 on such an appointment, by the chairperson
of the Victoria Grants Commission as
arbitrator or by another arbitrator nominated
by that chairperson.
(6) In determining an amount under sub-section (5),
25 an arbitrator must have regard to the methodology
by which amounts payable under an agreement in
force under section 27(2)(a) of the Loy Yang B
Act 1992 immediately before 8 May 1997 were
determined.
30 (7) The Commercial Arbitration Act 1984 applies
to arbitrations under this section.
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(8) Section 221 of the Local Government Act 1989
does not apply in relation to land owned or
occupied by a generation company or an
associated entity of a generation company which
5 is land used for generation functions.
(9) In this section--
"associated entity", in relation to a generation
company, means a person to whom an
exemption under section 17 applies in
10 respect of an activity relating to the
generation of electricity for supply or sale,
being an activity for which the generation
company holds a licence under Part 2;
"land used for generation functions" means
15 land on which a power station is situated;
"Loy Yang B land" means the land shown
hatched on the plan in Schedule 2 to the Loy
Yang B Act 1992;
"relevant council" means the council in whose
20 municipal district the land used for
generation functions is situated.
_______________
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PART 6--ELECTRICITY SUPPLY EMERGENCY
PROVISIONS
Division 1--Emergency Provisions
95. Proclamation that this Part applies
5 (1) If it appears to the Governor in Council that--
(a) an event has occurred, or is about to occur,
which may endanger an undertaking of a
distribution company, a transmission
company or a generation company or a
10 person who supplies electricity to another
person or materially affect the safe,
economical or effective supply of electricity;
or
(b) the available supply of electricity is, or is
15 likely to become, less than is sufficient for
the reasonable requirements of the
community--
the Governor in Council may by proclamation
declare that this Part is to apply.
20 (2) The proclamation must be published in the
Government Gazette.
(3) The proclamation takes effect on the date of its
publication.
96. Powers of Minister
25 (1) While a proclamation is in force, the Minister may
give any directions that the Minister thinks
necessary to--
(a) protect any undertaking of a distribution
company, a transmission company or a
30 generation company or a person who
supplies electricity to another person; or
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(b) ensure the safe, economical or effective
supply of electricity; or
(c) ensure that the available electricity is fairly
distributed to the community; or
5 (d) increase the available supply of electricity;
or
(e) regulate the use of the available supply of
electricity, having regard to the needs of the
community.
10 (2) Without limiting sub-section (1), the Minister
may, by notice in writing, do all or any of the
following--
(a) give any directions that are necessary to
control, direct, authorise conduct in relation
15 to, restrict or prohibit the supply,
distribution, sale, use or consumption of
electricity;
(b) direct a person or body to carry out any work
required to ensure the generation, supply or
20 distribution of electricity;
(c) direct a person or body to maintain or
operate any services required to ensure the
generation, supply or distribution of
electricity;
25 (d) requisition the use of property of any kind
which is used, or may be used, for or in
connection with the generation, supply or
distribution of electricity;
(e) operate, use, dispose of, distribute, store,
30 repair and maintain any such property;
(f) authorise a person specified in the notice to
enter any land, building or structure used for
or in connection with the provision of
electricity;
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(g) authorise a person specified in the notice to
withdraw the supply of electricity from any
consumer the person reasonably believes is
in breach of any direction given under
5 paragraph (a);
(h) provide, by direction, for any matter or thing
incidental to the carrying into effect of the
powers referred to in this section.
(3) A direction--
10 (a) may operate generally, or may be limited in
its operation according to specified times,
places, circumstances, conditions or
restrictions; and
(b) may, if so specified in the direction, allow
15 the Minister to exempt a person or body
from having to comply with the direction;
and
(c) may be addressed or directed to people and
bodies generally or particularly; and
20 (d) subject to sub-section (7), takes effect when
made or, if a later time is specified in the
direction, at that later time; and
(e) has effect as if enacted in this Act.
(4) A direction including a direction under sub-
25 section (6) must be published in the Government
Gazette as soon as possible after it is made.
(5) Notice of a requisition relating to a class of
property must be published in the Government
Gazette as soon as possible after it is made.
30 (6) The Minister may at any time by direction under
this section amend or revoke a direction made, or
purportedly made, under this section or may
return requisitioned property.
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(7) If a direction of the Minister under sub-section (6)
amending an earlier direction for the purpose of
correcting a defect, mistake or omission--
(a) includes the statement that the earlier
5 direction is deemed to have been made as so
amended; and
(b) is made not later than 3 months after the
earlier direction was made--
the earlier direction is deemed to have been made
10 as so amended.
(8) If the Minister requisitions the use of property
under sub-section (2)(d), the reasonable costs of
compensating the owner of that property for the
requisition and making good any damage resulting
15 from the requisition must be determined by the
Minister.
(9) If there is a dispute as to the Minister's
determination, the Minister must refer the matter
for arbitration by a single arbitrator under the
20 Commercial Arbitration Act 1984.
(10) Requisitioned property that has not been disposed
of must be returned as soon as it is safe to do so
after the Governor in Council revokes a
proclamation.
25 (11) The amendment, revocation or expiry of a
direction does not affect--
(a) the previous operation of the direction; or
(b) the validity of any action taken under the
direction before the amendment, revocation
30 or expiry; or
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(c) any penalty or punishment incurred in
respect of any failure to comply with the
direction before the amendment, revocation
or expiry or any proceeding or remedy in
5 respect of the penalty or punishment.
97. Offences
(1) A person or body who is aware of a direction
under section 96 must comply with the direction.
(2) A person--
10 (a) to whom electricity is supplied; and
(b) who is aware of a direction restricting or
prohibiting the use of electricity--
must do everything reasonably possible to ensure
that electricity is not used on the land or premises
15 to which the electricity is supplied in
contravention of the direction.
(3) A person must not obstruct another person--
(a) exercising a power given to; or
(b) complying with an obligation imposed on--
20 the other person under section 96 if the person has
been shown a copy of the notice giving the power
or imposing the obligation.
(4) A person is deemed to be aware of a direction if
the Minister has caused--
25 (a) the direction to be published in a newspaper
circulating throughout the area in which the
direction applies; or
(b) details of the direction to be broadcast by
means of radio or television transmission
30 throughout the area in which the direction
applies.
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(5) In any proceedings for an offence against this
section, a certificate purporting to be signed by
the Minister to the effect that details of a direction
were broadcast by means of radio or television
5 transmission throughout a particular area on a
specified day is evidence of the facts set out in the
certificate.
(6) In any proceedings for an offence against this
section, if a direction was made in respect of part
10 of a day and first broadcast on that day, it is
sufficient defence for the defendant to prove that
at the time of the commission of the offence, the
defendant--
(a) did not know; and
15 (b) could not reasonably have known--
of the direction.
(7) A person must not contravene sub-section (1), (2)
or (3).
Penalty: in the case of a natural person,
20 100 penalty units.
in the case of a body corporate,
10 000 penalty units.
(8) An offence by a body corporate under sub-section
(7) is an indictable offence.
25 (9) If an offence is committed by a person by reason
of a failure to comply, within the period specified
in a direction under sub-section (1), with the
requirements specified in the direction, the
offence, for the purposes of sub-section (10) is
30 deemed to continue so long as any requirement
specified in the direction remains undone, whether
or not the period has elapsed.
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(10) If, under sub-section (9), an offence is deemed to
continue, the person who committed the offence
commits an additional offence on each day during
which the offence is deemed to continue and is
5 liable, upon conviction for such an additional
offence, to a penalty not exceeding one tenth of
the penalty for the first-mentioned offence.
(11) If a body corporate commits an offence against
this section, any officer of the body corporate who
10 was in any way, by act or omission, directly or
indirectly knowingly concerned in or party to the
commission of the offence is also guilty of that
offence and liable to the penalty for it.
(12) An offence under sub-section (11) is an indictable
15 offence.
(13) A person may be proceeded against and convicted
under a provision in accordance with sub-section
(11) whether or not the body corporate has been
proceeded against or convicted under that
20 provision.
(14) If in a proceeding for an offence against this
section it is necessary to establish the intention of
a body corporate, it is sufficient to show that a
servant or agent of the body corporate had that
25 intention.
(15) In sub-section (11), "officer", in relation to a
body corporate, means--
(a) a director, secretary or executive officer of
the body corporate; or
30 (b) any person in accordance with whose
directions or instructions the directors of the
body corporate are accustomed to act; or
(c) a person concerned in the management of the
body corporate.
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(16) If this section provides that a person is guilty of an
offence, that reference to a person must--
(a) in the case of a partnership, be read as a
reference to each member of the partnership;
5 and
(b) in the case of an unincorporated body or
association, be read as a reference to each
member of the committee of management of
the body or association.
10 98. Judicial notice
All courts and any person acting judicially must
take judicial notice of any proclamation, direction
or general requisition made, given or imposed
under this Part.
15 99. Immunity from suit
A person acting in good faith in the execution of
this Part or any proclamation or direction under
this Part is not liable to any action, claim or
demand on account of any damage, loss or injury
20 sustained or alleged to be sustained because of the
operation of this Part or of any thing done or
purporting to be done under this Part or any
proclamation or direction under this Part.
Division 2--Enforcement
25 100. Powers of entry--enforcement
(1) If an enforcement officer has reasonable grounds
for suspecting that there is on any land or
premises a particular thing that may be evidence
of the commission of an offence against this Part,
30 the enforcement officer may--
(a) enter the land or premises; and
(b) search for the thing.
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(2) An enforcement officer must not enter land or
premises under this section except--
(a) with the written consent of the occupier of
the land or premises; or
5 (b) under the authority of a search warrant.
101. Occupier to be given copy of consent
(1) An occupier who consents in writing to entry of
his or her land or premises under section 100 must
be given a copy of the signed consent
10 immediately.
(2) If, in any proceeding, a written consent is not
produced to the court, it must be presumed, until
the contrary is proved, that the occupier did not
consent to the entry and search.
15 102. Search warrant
(1) An enforcement officer may apply to a magistrate
for the issue of a search warrant in relation to
particular land or premises if the enforcement
officer believes on reasonable grounds that there
20 is, or may be within the next 72 hours, on the land
or premises a particular thing that may be
evidence of the commission of an offence against
this Part.
(2) A magistrate may issue a search warrant under
25 this section if the magistrate is satisfied by
evidence on oath, whether oral or by affidavit, that
there are reasonable grounds for suspecting that
there is, or may be within the next 72 hours, on
land or premises a particular thing that may be
30 evidence of the commission of an offence against
this Part.
(3) The search warrant may authorise an enforcement
officer named in the warrant and any assistants the
enforcement officer considers necessary--
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(a) to enter the land or premises, or part of the
land or premises, named or described in the
warrant; and
(b) to search for the thing named or described in
5 the warrant.
(4) In addition to any other requirement, a search
warrant issued under this section must state--
(a) the offence suspected; and
(b) the land or premises to be searched; and
10 (c) a description of the thing for which the
search is to be made; and
(d) any conditions to which the warrant is
subject; and
(e) whether entry is authorised to be made at any
15 time or during stated hours; and
(f) a day, not later than 7 days after the issue of
the warrant, on which the warrant ceases to
have effect.
(5) A search warrant must be issued in accordance
20 with the Magistrates' Court Act 1989 and in the
form prescribed under that Act.
(6) The rules to be observed with respect to search
warrants mentioned in the Magistrates' Court
Act 1989 extend and apply to warrants under this
25 section.
103. Announcement before entry
(1) Before executing a search warrant, the
enforcement officer named in the warrant or a
person assisting the enforcement officer named in
30 the warrant must--
(a) announce that he or she is authorised by the
warrant to enter the land or premises; and
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(b) give any person at the land or premises an
opportunity to allow entry to the land or
premises.
(2) The enforcement officer or a person assisting the
5 enforcement officer need not comply with sub-
section (1) if he or she believes on reasonable
grounds that immediate entry to the land or
premises is required to ensure--
(a) the safety of any person; or
10 (b) that the effective execution of the warrant is
not frustrated.
104. Copy of warrant to be given to occupier
If the occupier or another person who apparently
represents the occupier is present at the land or
15 premises when a search warrant is being executed,
the enforcement officer must--
(a) identify himself or herself to that person by
producing his or her identity card for
inspection by that person; and
20 (b) give to that person a copy of the execution
copy of the warrant.
105. Person authorised by Office of Chief Electrical
Inspector can bring proceedings
(1) A person authorised by the Office of the Chief
25 Electrical Inspector either generally or in a
particular case to bring proceedings for an offence
against this Part, may bring those proceedings.
(2) If proceedings referred to in sub-section (1) are
brought by a person authorised to do so, the
30 proceedings may be conducted by any other
person authorised by the Office of the Chief
Electrical Inspector to bring proceedings of that
kind.
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(3) All courts must take judicial notice of the fact that
a person is authorised by the Office of the Chief
Electrical Inspector to bring proceedings referred
to in sub-section (1) or conduct proceedings under
5 sub-section (2), as the case requires.
(4) In this section "Office of the Chief Electrical
Inspector" means the Office of the Chief
Electrical Inspector established under Part 2 of the
Electricity Safety Act 1998.
10
Division 3--Infringement Notices
106. Definition
In this Division--
"prescribed offence" means an offence against
15 section 97(7) constituted by the use of
electricity by a person in contravention of a
direction under section 96--
(a) of which the person is aware or is
deemed under section 97 to be aware;
20 and
(b) which applies to the person--
but does not include an offence by a body
corporate.
107. Power to serve a notice
25 (1) An enforcement officer may serve an infringement
notice on any person that he or she has reason to
believe has committed a prescribed offence.
(2) An infringement notice may be served on a
person--
30 (a) by delivering it personally to the person; or
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(b) by sending it by post addressed to the
person's last known place of residence or
business.
108. Form of notice
5 An infringement notice must state--
(a) the date of the notice;
(b) that the alleged offence is a prescribed
offence within the meaning of section 106;
(c) the nature, and a brief description, of the
10 alleged offence;
(d) the date, time and place of the alleged
offence;
(e) the infringement penalty for the alleged
offence;
15 (f) the manner in which the infringement
penalty may be paid;
(g) the time (being not less than 28 days after
the date on which the notice is served) within
which the infringement penalty must be paid;
20 (h) that, if the amount of the infringement
penalty is paid before the end of the time
specified in the notice, the matter will not be
brought before the Magistrates' Court unless
the notice is withdrawn within 28 days after
25 the date on which it was served;
(i) that the person is entitled to disregard the
notice and defend any proceedings in respect
of the offences in the Magistrates' Court;
(j) any other prescribed particulars.
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s. 109
Act No.
109. Infringement penalties
The infringement penalty for an offence against a
prescribed offence is $500 in the case of a natural
person and $1000 in the case of a body corporate.
5 110. Late payment of penalty
An enforcement officer may accept payment of
the infringement penalty even after the expiration
of the time for payment stated in the infringement
notice if--
10 (a) neither a charge has been filed nor a courtesy
letter served under Part 2 of Schedule 7 to
the Magistrates' Court Act 1989 in respect
of the offence to which the infringement
penalty relates; and
15 (b) the infringement notice has not been
withdrawn.
111. Withdrawal of notice
(1) An enforcement officer may withdraw an
infringement notice at any time within 28 days
20 after the date on which the notice was served by
serving a withdrawal notice on the person served
with the infringement notice.
(2) A withdrawal notice may be served on a person--
(a) by delivering it personally to the person; or
25 (b) by sending it by post addressed to the
person's last known place of residence or
business.
(3) An infringement notice may be withdrawn even if
the infringement penalty has been paid.
30 (4) If an infringement notice is withdrawn, the
amount of any infringement penalty paid must be
refunded and the Consolidated Fund is, to the
necessary extent, appropriated accordingly.
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s. 112
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112. Payment expiates offence
If an infringement notice is not withdrawn and the
infringement penalty is paid within the time for
payment stated in the notice or is accepted in
5 accordance with section 110 then--
(a) the person on whom the notice was served
has expiated the offence by that payment;
and
(b) no proceedings may be taken against that
10 person in respect of that offence; and
(c) no conviction is to be taken to have been
recorded against that person for that offence.
113. Payment not to have certain consequences
(1) The payment of an infringement penalty under
15 this Division is not and must not be taken to be--
(a) an admission of guilt in relation to the
offence; or
(b) an admission of liability for the purpose of
any civil claim or proceeding arising out of
20 the same occurrence and the payment does
not in any way affect or prejudice any such
claim or proceeding.
(2) The payment of an infringement penalty under
this Division must not be referred to in any report
25 provided to a court for the purpose of determining
sentence for an offence.
114. Prosecution after service of infringement notice
A charge may be filed in respect of an offence to
which an infringement notice relates if--
30 (a) the infringement penalty has not been paid
within the time for payment stated in the
notice or in accordance with section 110; or
(b) the notice is withdrawn.
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s. 115
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115. Enforcement of infringement penalty
Payment of the infringement penalty may be
enforced in accordance with Part 2 of Schedule 7
of the Magistrates' Court Act 1989 if--
5 (a) the infringement notice is an infringement
notice within the meaning of Schedule 7 to
that Act; and
(b) the infringement penalty has not been paid
within the time stated in the notice or in
10 accordance with section 110; and
(c) the notice has not been withdrawn; and
(d) a charge has not been filed in accordance
with section 114.
_______________
15
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s. 116
Act No.
PART 7--GENERAL
116. Delegation by Minister
The Minister may, by instrument, delegate to any
person any function or power of the Minister
5 under this Act, other than this power of
delegation.
117. Liability for failure to supply electricity
(1) VENCorp, a distribution company, a transmission
company, a generation company or a retailer, is
10 not liable to any penalty or damages for not
supplying electricity under any contract if the
failure arises through accident, drought or
unavoidable cause.
(2) VENCorp, a distribution company, a transmission
15 company, a generation company or a retailer is not
liable in damages to any person for any partial or
total failure to supply electricity arising through
any cause that is not due to the fault of the
corporation or the company.
20 (3) VENCorp, a distribution company, a transmission
company, a generation company or a retailer may
enter into an agreement with a person varying or
excluding the operation of sub-section (2) or (3)
and, to the extent of that agreement, those sub-
25 sections do not apply.
118. Supreme Court--limitation of jurisdiction
It is the intention of sections 84 and 99 to alter or
vary section 85 of the Constitution Act 1975.
119. Regulations
30 (1) The Governor in Council may make regulations
for or with respect to any matter or thing required
or permitted by this Act to be prescribed or
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s. 119
Act No.
necessary to be prescribed to give effect to this
Act.
(2) The regulations are subject to disallowance by a
House of the Parliament.
5 __________________
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Sch.
Act No.
SCHEDULE
EASEMENTS SET APART FOR ELECTRICITY
CORPORATIONS
Easements set apart or appropriated for the use of an electricity corporation
5 under section 88.
Column 1 Column 2
Power Line Full and free right and liberty to and for an electricity
corporation and its transferees and its and their contractors,
servants agents and workmen at all times hereafter to enter
in and upon the land to which the easement applies and to
take onto or remove from such land any plant machines
vehicles equipment or materials and to clear and to keep
free such land of any buildings whatsoever and of anything
which is or may be an obstruction to the rights hereby
described including trees more than 2·7 metres in height or
any structure more than 2·7 metres in height for every
overhead electric cable or wire and including all trees and
structures for every cable or wire laid underground and to
construct lay or place one or more poles cables wires,
marker posts, service pillars, stays or guy wires and to lay
underground and fix and cover in such cables wires pipes
ducts outlets galvanised iron pipe conduits poly vinyl
chloride conduits and other apparatus appliances and
protective coverings as may be required or desired for the
transmission of electricity (all of which are hereinafter
called "the said appliances") but so always that every
overhead electric cable or wire shall be erected at least 4·6
metres above the then surface of such land and every cable
or wire laid underground shall be laid at least 0·45 metres
below the said then surface except when entering or
leaving the ground of such land and also to carry out
thereon such digging, cutting and excavating as may be
reasonably necessary for the said appliances and keeping
the said excavations free of the injurious accumulation of
water but so that every excavation will be covered in as
soon as possible and also to use such land and the said
appliances for all purposes of and incidental to transmitting
electricity safely and economically across such land at any
time hereinafter and also to inspect maintain in good and
efficient working order repair renew and remove
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Sch.
Act No.
Column 1 Column 2
the said appliances and also from time to time to go pass
and repass for all purposes aforesaid either with or without
plant machines vehicles equipment or material through
over and along such land.
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Electricity Industry Act 2000
Endnotes
Act No.
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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