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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Energy Legislation Amendment Bill 2007
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1 Purpose 1
2 Commencement 2
PART 2--AMENDMENT OF ELECTRICITY INDUSTRY
ACT 2000 3
3 New Division 5A of Part 2 inserted 3
Division 5A--Terms and conditions for the purchase of
small renewable energy generation electricity 3
40F Definitions 3
40G Retailer licence condition relating to purchase of small
renewable energy generation electricity 5
40H When do published prices, terms and conditions take
effect? 6
40I Reference of small renewable energy generation
electricity prices, terms and conditions to Commission 7
40J Commission assessment of small renewable energy
generation prices, terms or conditions 8
40K Certain Commission assessment reports to be made
publicly available 9
40L Commission determination of small renewable energy
generation prices, terms and conditions 9
40M Ministerial declaration of small renewable energy
generation electricity prices, terms or conditions 10
40N Retailer Internet site must be up to date for small
renewable energy generation electricity purchase
offers 11
4 Repeal of spent provision relating to Snowy Hydro's licence 12
5 Repeal of provision superseded by new Division 5A of Part 2 12
6 Statute law revision 13
561059B.I-20/6/2007 i BILL LA INTRODUCTION 20/6/2007
Clause Page
PART 3--AMENDMENT OF GAS INDUSTRY ACT 2001 14
7 MSO Rules 14
8 New section 52A inserted 15
52A Operation and effect of MSO Rules 15
PART 4--REPEAL OF AMENDING ACT 16
9 Repeal of Amending Act 16
ENDNOTES 17
561059B.I-20/6/2007 ii BILL LA INTRODUCTION 20/6/2007
PARLIAMENT OF VICTORIA
Introduced in the Assembly
Energy Legislation Amendment Bill
2007
A Bill for an Act to amend the Electricity Industry Act 2000, the
Gas Industry Act 2001 and for other purposes.
The Parliament of Victoria enacts:
PART 1--PRELIMINARY
1 Purpose
The main purpose of this Act is to--
(a) amend the Electricity Industry Act 2000
5 to--
(i) provide for fair and reasonable prices,
terms and conditions for electricity
generated by small renewable energy
generation facilities and purchased by
10 certain electricity retailers; and
(ii) repeal redundant provisions; and
561059B.I-20/6/2007 1 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 1--Preliminary
s. 2
(b) amend the Gas Industry Act 2001 to clarify
the subject-matters the Market and System
Operation Rules may deal with.
2 Commencement
5 (1) This Act (except sections 3 and 5) comes into
operation on the day after the day on which it
receives the Royal Assent.
(2) Subject to subsection (3), sections 3 and 5 come
into operation on a day to be proclaimed.
10 (3) If sections 3 and 5 do not come into operation
before 1 January 2008, they come into operation
on that day.
__________________
561059B.I-20/6/2007 2 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
PART 2--AMENDMENT OF ELECTRICITY INDUSTRY
ACT 2000
3 New Division 5A of Part 2 inserted
After section 40E of the Electricity Industry Act See:
Act No.
5 2000 insert-- 68/2000.
Reprint No. 4
as at
"Division 5A--Terms and conditions for the 9 November
purchase of small renewable energy generation 2006.
LawToday:
electricity www.
legislation.
vic.gov.au
40F Definitions
10 (1) In this Division--
biomass energy generation facility means a
generation facility that generates
electricity by utilising energy from the
combustion of--
15 (a) biomass; or
(b) biogas;
ESC determined prices, terms and
conditions means prices, terms and
conditions determined, and contained in
20 a report, under section 40L;
ESC recommended prices, terms and
conditions means prices, terms and
conditions recommended, and
contained in a report, under section 40J;
25 hydro generation facility means a generation
facility that generates electricity by
utilising the energy from moving water;
non-complying licensee means a relevant
licensee that has not complied with the
30 condition set out in section 40G(1);
561059B.I-20/6/2007 3 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
non-pool electricity means electricity that is
supplied other than through the
wholesale electricity market;
referred prices, terms and conditions means
5 prices, terms and conditions referred to
the Commission for assessment by the
Minister under section 40I(1)(a);
relevant generator means--
(a) a generation company; or
10 (b) a person engaging in the
generation of electricity for supply
or sale that has been exempted
under section 17 from the
requirement to hold a licence in
15 respect of that activity;
relevant licensee means a person that--
(a) holds a licence to sell electricity;
and
(b) sells electricity to more than
20 5000 customers;
small renewable energy generation
electricity means non-pool electricity
supplied by a relevant generator from a
small renewable energy generation
25 facility operated by that generator;
small renewable energy generation facility
means a facility of the following kind
that generates electricity and has an
installed or name-plate generating
30 capacity of less than 100 kilowatts--
(a) a wind energy generation facility;
(b) a solar energy generation facility;
(c) a hydro generation facility;
561059B.I-20/6/2007 4 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
(d) a biomass energy generation
facility;
(e) a facility or class of facility
specified for the purposes of this
5 definition under subsection (2);
solar energy generation facility means a
generation facility that generates
electricity by converting solar energy
into electricity;
10 wind energy generation facility means a
generation facility that generates
electricity by converting wind energy
into electricity.
(2) The Governor in Council, by Order
15 published in the Government Gazette, may,
for the purposes of paragraph (e) of the
definition of small renewable energy
generation facility, specify a facility or class
of facility that generates electricity in any
20 way (other than through the utilisation of
energy created from the combustion of fossil
fuel or materials or waste products derived
from fossil fuels) as a small renewable
energy generation facility.
25 40G Retailer licence condition relating to
purchase of small renewable energy
generation electricity
(1) Without limiting the generality of section
20(2) or (3) or section 21, but subject to this
30 Division, the conditions to which a licence to
sell electricity held by a relevant licensee is
subject include a condition requiring that
licensee to publish an offer comprising the
prices at, and terms and conditions on, which
35 that licensee will purchase, from a relevant
561059B.I-20/6/2007 5 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
generator, small renewable energy
generation electricity.
(2) A relevant licensee that publishes prices,
terms and conditions as required by the
5 condition set out in subsection (1) must give
a copy of those prices, terms and conditions
to the Minister within 7 days after publishing
them.
(3) In this section--
10 publish means publish--
(a) in the Government Gazette; and
(b) on the licensee's Internet site.
40H When do published prices, terms and
conditions take effect?
15 (1) Subject to this Division, prices, terms and
conditions that are published in accordance
with the condition set out in section 40G(1)
take effect 2 months after they are published
in accordance with that condition unless
20 those prices, terms and conditions are
referred prices, terms and conditions.
(2) If referred prices, terms and conditions are,
in a report under section 40J, assessed as fair
and reasonable, those prices, terms and
25 conditions take effect--
(a) if notice of that report is published in
accordance with section 40K on or
before the day those prices, terms and
conditions would have taken effect but
30 for their referral under section
40I(1)(a)--on that day;
(b) in any other case--on the day notice of
the making of that report is published in
accordance with section 40K.
561059B.I-20/6/2007 6 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
(3) To avoid doubt, referred prices, terms and
conditions that are superseded by ESC
recommended prices, terms and conditions
declared under section 40M(2) to apply to
5 the purchases of small renewable energy
generation electricity by a relevant licensee
are not to be taken to have taken effect.
40I Reference of small renewable energy
generation electricity prices, terms and
10 conditions to Commission
(1) The Minister, by written notice, may--
(a) refer prices, terms and conditions
published in accordance with the
condition set out in section 40G(1) to
15 the Commission for assessment as to
whether they are fair and reasonable if
the Minister considers that at least one
of those prices, terms or conditions may
not be fair and reasonable; or
20 (b) if a relevant licensee that holds a
licence to which the condition set out in
section 40G(1) applies does not comply
with that condition, request the
Commission to determine fair and
25 reasonable prices at, and terms and
conditions on, which that licensee must
offer to purchase, from a relevant
generator, small renewable energy
generation electricity.
30 (2) The Minister may only refer prices, terms
and conditions under subsection (1)(a) to the
Commission for assessment before those
prices, terms and conditions take effect.
(3) As soon as practicable after a notice under
35 subsection (1) is given to the Commission,
the Commission must publish the notice--
561059B.I-20/6/2007 7 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
(a) in the Government Gazette; and
(b) in a daily newspaper generally
circulating in Victoria; and
(c) on the Commission's Internet site.
5 40J Commission assessment of small
renewable energy generation prices, terms
or conditions
(1) The Commission must--
(a) assess the referred prices, terms and
10 conditions as to whether they are fair
and reasonable; and
(b) report to the Minister on that
assessment.
(2) If the Commission assesses any of the
15 referred prices, terms and conditions as not
being fair and reasonable, the Commission
must, in its report to the Minister,
recommend to the Minister prices, terms and
conditions it considers are fair and
20 reasonable.
(3) ESC recommended prices, terms and
conditions must include either or both of the
following--
(a) a variation to any price, term or
25 condition that the Commission has (as
part of the assessment) assessed as not
being fair and reasonable to make that
price, term or condition fair and
reasonable;
30 (b) a new price, term or condition to apply
in substitution of a price, term or
condition that the Commission has (as
part of the assessment) assessed as not
being fair and reasonable.
561059B.I-20/6/2007 8 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
(4) A decision of the Commission relating to an
assessment, or a recommendation in a report
(including ESC recommended prices, terms
and conditions), under this section is not a
5 determination for the purposes of the
Essential Services Commission Act 2001.
40K Certain Commission assessment reports to
be made publicly available
If, in a report under section 40J, the
10 Commission assesses referred prices, terms
and conditions as fair and reasonable, the
Commission must--
(a) publish notice of the making of that
report in the Government Gazette; and
15 (b) publish that report on its Internet site.
40L Commission determination of small
renewable energy generation prices, terms
and conditions
(1) The Commission must--
20 (a) determine the prices, terms and
conditions on the Minister's request
under section 40I(1)(b); and
(b) report to the Minister on that
determination.
25 (2) Prices, terms and conditions that are
determined under this section must be fair
and reasonable.
(3) A determination of the Commission under
this section is not a determination for the
30 purposes of the Essential Services
Commission Act 2001.
561059B.I-20/6/2007 9 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
40M Ministerial declaration of small renewable
energy generation electricity prices, terms
or conditions
(1) This section applies if the Minister receives a
5 report from the Commission under--
(a) section 40J containing ESC
recommended prices, terms and
conditions; or
(b) section 40L containing ESC determined
10 prices, terms and conditions.
(2) The Minister, by notice published in the
Government Gazette, may declare that--
(a) ESC recommended prices, terms and
conditions apply to the purchase of
15 small renewable energy generation
electricity by the relevant licensee
named in the declaration whose prices,
terms and conditions were assessed by
the Commission as not being fair and
20 reasonable;
(b) ESC determined prices, terms and
conditions apply to the purchase of
small renewable energy generation
electricity by a non-complying licensee
25 named in the declaration.
(3) ESC recommended prices, terms and
conditions that have been declared to apply
to the purchase of small renewable energy
generation electricity--
30 (a) supersede the referred prices, terms and
conditions the Commission has
assessed in a report under section 40J
as not being fair and reasonable; and
561059B.I-20/6/2007 10 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 3
(b) take effect on--
(i) the day the notice is published in
the Government Gazette; or
(ii) if the notice specifies a later day,
5 that day.
(4) ESC determined prices, terms and conditions
that have been declared to apply to the
purchase of small renewable energy
generation electricity take effect on--
10 (a) the day the notice is published in the
Government Gazette; or
(b) if the notice specifies a later day, that
day.
. (5) A licence to sell electricity held by a relevant
15 licensee named in a declaration under this
section is deemed to include a condition
requiring that licensee to offer to purchase all
small renewable energy generation
electricity from a relevant generator at the
20 prices, and on the terms and conditions,
declared under that declaration to apply to
those purchases.
40N Retailer Internet site must be up to date
for small renewable energy generation
25 electricity purchase offers
(1) A relevant licensee that publishes prices,
terms and conditions in accordance with the
condition set out in section 40G(1) must--
(a) if those prices, terms and conditions
30 become referred prices, terms and
conditions, publish on its Internet site a
note informing the public of that
referral and that explains the effect of
that referral; and
561059B.I-20/6/2007 11 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 4
(b) if those prices, terms and conditions are
superseded by ESC recommended
prices, terms and conditions declared
under section 40M(2) as applying to
5 purchases of small renewable energy
generation electricity by that licensee,
publish on its Internet site--
(i) a note to that effect; and
(ii) the ESC recommended prices,
10 terms and conditions that apply;
and
(iii) the day on which those ESC
recommended prices, terms and
conditions take effect.
15 (2) A non-complying licensee must publish on
its Internet site--
(a) ESC determined prices, terms and
conditions that have been declared
under section 40M(2) as applying to
20 purchases of small renewable energy
generation electricity by that licensee;
and
(b) the day on which those ESC determined
prices, terms and conditions take
25 effect.".
4 Repeal of spent provision relating to Snowy Hydro's
licence
Section 19(5) of the Electricity Industry Act
2000 is repealed.
30 5 Repeal of provision superseded by new Division 5A
of Part 2
Section 23B of the Electricity Industry Act 2000
is repealed.
561059B.I-20/6/2007 12 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 2--Amendment of Electricity Industry Act 2000
s. 6
6 Statute law revision
In sections 19(3) and 31(7) of the Electricity
Industry Act 2000, for "includes" (where
secondly occurring) substitute "include".
__________________
561059B.I-20/6/2007 13 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 3--Amendment of Gas Industry Act 2001
s. 7
PART 3--AMENDMENT OF GAS INDUSTRY ACT 2001
7 MSO Rules
See: (1) In section 52(4) of the Gas Industry Act 2001,
Act No.
31/2001. after "ACCC" insert "or VENCorp".
Reprint No. 3
5 as at (2) After section 52(4) of the Gas Industry Act 2001
11 October
2006 and
insert--
amending
Act No. "(4A) Without limiting the purpose set out in
61/2005. subsection (2), the MSO Rules may--
LawToday:
www. (a) be of general or limited application;
legislation.
vic.gov.au
10 (b) vary according to the persons, times,
places or circumstances to which they
are expressed to apply;
(c) include provisions for the resolution of
disputes under or in relation to the
15 MSO Rules between persons, including
provisions--
(i) requiring the persons in dispute to
resolve the dispute in accordance
with the Rules before seeking any
20 other remedy in relation to the
dispute from a court or otherwise;
(ii) providing for the appointment of a
person, in accordance with the
MSO Rules, to manage and
25 facilitate the resolution of such
disputes;
(iii) providing for the appointment, by
a person referred to in
subparagraph (ii), of persons
30 (including mediators and
arbitrators) to resolve such
disputes;
561059B.I-20/6/2007 14 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 3--Amendment of Gas Industry Act 2001
s. 8
(iv) providing for the procedure for the
conduct and resolution of such
disputes;
(v) relating to the application and
5 effect of decisions of persons
appointed to resolve such
disputes;
(vi) providing for the reference, to a
court, of questions of law arising
10 in respect of the resolution of such
disputes;
(vii) conferring an immunity on, or
limiting the liability of, persons
appointed to resolve such
15 disputes.".
8 New section 52A inserted
After section 52 of the Gas Industry Act 2001
insert--
"52A Operation and effect of MSO Rules
20 The MSO Rules are deemed to have the
same force and effect as they would have
had if, at the time the Rules were continued
in operation by clause 17 of Schedule 5 to
the Gas Industry (Residual Provisions)
25 Act 1994, section 52 (as amended by
section 7 of the Energy Legislation
Amendment Act 2007) were in force.".
__________________
561059B.I-20/6/2007 15 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Part 4--Repeal of Amending Act
s. 9
PART 4--REPEAL OF AMENDING ACT
9 Repeal of Amending Act
This Act is repealed on 1 January 2009.
561059B.I-20/6/2007 16 BILL LA INTRODUCTION 20/6/2007
Energy Legislation Amendment Bill 2007
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
561059B.I-20/6/2007 17 BILL LA INTRODUCTION 20/6/2007
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