ENERGY LEGISLATION AMENDMENT (RETAIL COMPETITION AND OTHER MATTERS) BILL 2008

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ENERGY LEGISLATION AMENDMENT (RETAIL COMPETITION AND OTHER MATTERS) BILL 2008

PARLIAMENT OF VICTORIA Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 TABLE OF PROVISIONS Clause Page PART 1--PRELIMINARY 1 1 Purpose 1 2 Commencement 3 PART 2--AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 5 3 Definitions 5 4 Declaration of classes of customers and retailers and specified circumstances 6 5 Regulation of tariffs for prescribed customers 8 6 Condition restricting sale to certain customers 9 7 Section 23A repealed 9 8 Offer to domestic or small business customers 9 9 New sections 35A to 35E inserted 10 35A Licensee standing offer tariffs to be given to Commission 10 35B Commission must publish on Internet licensee standing offer tariffs 10 35C Internet publication and bill notification of licensee standing offers 11 35D Required tariff information and licensee contact information to be published in newspaper 12 35E Order specifying method and variables to be used to determine weighted tariff variation 13 10 Terms and conditions of contracts for sale of electricity to certain customers 14 11 Publication of terms and conditions of sale of electricity (relevant published offers) 14 12 Deemed contracts with former franchise customers 15 13 Deemed contracts for supply and sale for relevant customers 15 14 New section 39A inserted 15 39A Commission must report to Minister on electricity supply offers 15 561206B.I-9/9/2008 i BILL LA INTRODUCTION 9/9/2008

Clause Page 15 New Division 5B of Part 2 inserted 17 Division 5B--Condition relating to greenhouse gas emissions and energy efficiency benchmarking information 17 40O Definitions 17 40P Meaning of bill benchmarking information 17 40Q Declaration of residential customers 18 40R Condition relating to greenhouse gas emissions and energy efficiency benchmarking information 18 40S Commission guidelines relating to greenhouse gas emissions information condition 19 16 New definition inserted into section 46B 19 17 Orders in relation to advanced metering infrastructure 20 18 General powers in relation to Orders relating to advanced metering infrastructure 21 PART 3--AMENDMENT OF GAS INDUSTRY ACT 2001 22 Division 1--Consumer safety net provisions 22 19 Definitions 22 20 Declaration of classes of customers and retailers and specified circumstances 23 21 Regulation of tariffs for prescribed customers 25 22 Offer to domestic or small business customers 26 23 New sections 42A to 42E inserted 27 42A Licensee standing offer tariffs to be given to Commission 27 42B Commission must publish on Internet licensee standing offer tariffs 27 42C Internet publication and bill notification of licensee standing offers 27 42D Required tariff information and licensee contact information to be published in newspaper 28 42E Order specifying method and variables to be used to determine weighted tariff variation 30 24 Terms and conditions of contracts for sale of gas to certain customers 30 25 Publication of terms and conditions of sale of gas (relevant published offers) 30 26 Deemed contracts with former franchise customers 31 27 Deemed contracts for supply and sale for relevant customers 32 28 New section 47 inserted 32 47 Commission must report to Minister on gas supply offers 32 561206B.I-9/9/2008 ii BILL LA INTRODUCTION 9/9/2008

Clause Page Division 2--Other amendments 33 29 Repeal of Tariff Order provision 33 30 Retail gas market rules 33 31 Principles for retail gas market rules 34 32 New section 62 substituted 34 62 Retail gas market rules--gas transmission system and gas distribution system 34 33 Consequential amendment to reference to VENCorp developed retail gas market rules 35 34 Consequential section cross-reference amendment 35 35 Approval of rules by Commission 35 36 Commission directions to VENCorp in relation to supplier of last resort trigger events 35 37 Costs of VENCorp 36 38 New section 237 inserted 36 237 Transitional provision--Retail gas market rules developed by VENCorp 36 PART 4--AMENDMENT OF OTHER ENERGY LEGISLATION 38 Division 1--Amendment of Gas Safety Act 1997 38 39 Definitions 38 40 Regulations 38 Division 2--Amendment of Electricity Safety Act 1998 39 41 Certificates of approval, acceptance or compliance 39 42 Incorporation by reference by regulations 39 Division 3--Amendment of National Electricity (Victoria) Amendment Act 2007 40 43 ESC AMI determination processes not completed before regulatory handover to AER 40 27A AER determinations under the AMI Order 40 44 Appeals against certain decisions or actions of the AER 42 Division 4--Amendment of National Gas (Victoria) Act 2008 42 45 Transitioned Victorian distribution RIOs 42 46 Matters to be taken into account when AER makes or prepares regulatory information instruments 43 PART 5--REPEAL OF AMENDING ACT 44 47 Repeal of Act 44 ENDNOTES 45 561206B.I-9/9/2008 iii BILL LA INTRODUCTION 9/9/2008

PARLIAMENT OF VICTORIA Introduced in the Assembly Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 A Bill for an Act to amend the Electricity Industry Act 2000, the Gas Industry Act 2001, the Gas Safety Act 1997, the Electricity Safety Act 1998, the National Electricity (Victoria) Amendment Act 2007, the National Gas (Victoria) Act 2008 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-- 561206B.I-9/9/2008 1 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 1--Preliminary s. 1 (i) make further provision in relation to tariffs at, and terms and conditions on, which electricity is sold to customers; and 5 (ii) empower the Essential Services Commission to report on the tariffs at, and the terms and conditions on, which electricity is sold to customers; and (iii) make further provision in relation to the 10 making of Orders in Council relating to advanced metering infrastructure; and (b) amend the Gas Industry Act 2001 to-- (i) make further provision in relation to tariffs at, and terms and conditions on, 15 which gas is sold to customers; and (ii) empower the Essential Services Commission to report on the tariffs at, and the terms and conditions on, which gas is sold to customers; and 20 (iii) to empower the Governor in Council to make retail gas market rules for the gas transmission system and gas distribution system; and (iv) empower the Australian Energy 25 Regulator to approve the amounts VENCorp determines are payable by a gas retailer to VENCorp in respect of the costs incurred by VENCorp in relation to the implementation of, and 30 the provision of services in connection with, arrangements for competition in the retail gas market in Victoria; and (v) repeal a redundant tariff order provision; and 561206B.I-9/9/2008 2 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 1--Preliminary s. 2 (c) amend the Gas Safety Act 1997 to-- (i) clarify the scope of the definition of standard gas installation; and (ii) enable regulations to be made that 5 require the keeping of records in relation to the service, maintenance, repair or modification of complex gas installations and Type B appliances; and 10 (d) amend the Electricity Safety Act 1998 to make further provision in relation to the making of regulations under that Act; and (e) amend the National Electricity (Victoria) Amendment Act 2007 to make further 15 provision in relation to determinations relating to advanced metering infrastructure; and (f) amend the National Gas (Victoria) Act 2008 to clarify the operation and effect of the 20 transitioned Victorian distribution regulatory information order. 2 Commencement (1) This Act (except Part 2, Division 1 of Part 3, section 30(1) and sections 31 to 39) comes into 25 operation on the day after the day on which this Act receives the Royal Assent. (2) Part 2 and Division 1 of Part 3 come into operation on 1 January 2009. (3) Subject to subsection (6), section 30(1) and 30 sections 31 to 38 come into operation on a day to be proclaimed. (4) Subject to subsection (5), section 39 comes into operation on a day to be proclaimed. 561206B.I-9/9/2008 3 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 1--Preliminary s. 2 (5) If section 39 does not come into operation before 1 January 2010, that section comes into operation on that day. (6) If section 30(1) and sections 31 to 38 do not come 5 into operation before 1 July 2010, those provisions come into operation on that day. __________________ 561206B.I-9/9/2008 4 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 3 PART 2--AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 3 Definitions (1) In section 3 of the Electricity Industry Act 2000 See: Act No. 5 insert the following definitions-- 68/2000. Reprint No. 4 "AEMC means the Australian Energy Market as at 9 November Commission established by section 5 of the 2006 Australian Energy Market Commission and amending Establishment Act 2004 of South Australia; Act Nos 35/2007, 10 domestic or small business customer means a 55/2007 and person, or a member of a class of persons, to 25/2008. LawToday: whom an Order under section 35(5) applies; www. legislation. licensee standing offer means-- vic.gov.au (a) the tariffs determined by a licensee 15 under section 35(1) and published in the Government Gazette in accordance with that subsection, as varied from time to time by the licensee as provided for under section 35(3); and 20 (b) the terms and conditions determined by a licensee and approved by the Commission under section 35(1) and published in the Government Gazette in accordance with that subsection, as 25 varied from time to time by the licensee and approved by the Commission as provided for under section 35(4); MCE means the Ministerial Council on Energy established on 8 June 2001, being the 30 Council of Ministers with primary carriage of energy matters at a national level comprising the Ministers representing the Commonwealth, the States, the Australian Capital Territory and the Northern Territory, 561206B.I-9/9/2008 5 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 4 acting in accordance with its own procedures; regulated tariff standing offer means a licensee standing offer that is subject to an Order 5 under section 13 that is in force; relevant published offer means the tariffs and terms and conditions on which a specified retailer sells electricity to small retail customers that are published in accordance 10 with section 36A; specified circumstances, in section 36A, means circumstances declared to be specified circumstances by Order under section 7AA(1)(c); 15 specified retailer means a retailer declared to be a specified retailer by Order under section 7AA(1)(b); standing offer means-- (a) a licensee standing offer; or 20 (b) a regulated tariff standing offer;". (2) In section 3 of the Electricity Industry Act 2000, in the definition of small retail customer, for "7AA" substitute "7AA(1)(a)". 4 Declaration of classes of customers and retailers and 25 specified circumstances (1) In section 7AA(1)(b) of the Electricity Industry Act 2000, for "section 36A." substitute "section 36A;". (2) After section 7AA(1)(b) of the Electricity 30 Industry Act 2000 insert-- "(c) declare circumstances to be specified circumstances for the purposes of section 36A.". 561206B.I-9/9/2008 6 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 4 (3) In section 7AA(3) of the Electricity Industry Act 2000, for "this section" substitute "subsection (1)(a)". (4) After section 7AA(3) of the Electricity Industry 5 Act 2000 insert-- "(3A) An Order under subsection (1)(b) may declare a licensee to be a specified retailer by reference to all or any of the following-- (a) the number of small retail customers of 10 the licensee; (b) the tariffs at, and terms and conditions on, which the licensee sells electricity to its small retail customers; (c) the distribution area of a distribution 15 company provided for in the company's licence; (d) any other specified factor relevant to the sale of electricity. (3B) An Order under subsection (1)(c) may 20 declare circumstances to be specified circumstances by reference to all or any of the following-- (a) the number of small retail customers of a specified retailer; 25 (b) the tariffs at, and terms and conditions on, which a specified retailer sells electricity to its small retail customers; (c) the distribution area of a distribution company provided for in the company's 30 licence; (d) any other specified factor relevant to the sale of electricity.". 561206B.I-9/9/2008 7 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 5 5 Regulation of tariffs for prescribed customers (1) After section 13(1) of the Electricity Industry Act 2000 insert-- "(1A) The Governor in Council may only make an 5 Order under subsection (1) if under an MCE directed retail competition review the AEMC-- (a) concludes that competition in a market for electricity is not effective; and 10 (b) recommends, in accordance with the MCE's written direction for that review, that price controls on prices for retail electricity services be (as the case requires) retained or reintroduced.". 15 (2) After section 13(2) of the Electricity Industry Act 2000 insert-- "(2A) Without limiting the generality of subsection (1), in determining the manner tariffs for the sale of electricity to prescribed 20 customers or a class of prescribed customers are to be regulated, the Governor in Council may have regard to the tariffs payable by the prescribed customers or a class of prescribed customers during the review period.". 25 (3) In section 13(6) of the Electricity Industry Act 2000 insert the following definitions-- "MCE directed retail competition review means an MCE directed review (within the meaning of the National Electricity (Victoria) Law) 30 under section 41(1)(d) of that Law; 561206B.I-9/9/2008 8 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 6 review period means the period-- (a) commencing on the day that the direction of the MCE requiring an MCE directed retail competition review is 5 published in the South Australian Government Gazette under section 41(3) of the National Electricity (Victoria) Law; and (b) ending on the day before the day the 10 Order under subsection (1) is made.". (4) Section 13(7) of the Electricity Industry Act 2000 is repealed. 6 Condition restricting sale to certain customers Section 23(4) of the Electricity Industry Act 15 2000 is repealed. 7 Section 23A repealed Section 23A of the Electricity Industry Act 2000 is repealed. 8 Offer to domestic or small business customers 20 (1) Insert the following heading to section 35 of the Electricity Industry Act 2000-- "Offer to domestic or small business customers (licensee standing offers)". (2) In section 35(3) of the Electricity Industry Act 25 2000, for "The tariffs" substitute "Subject to subsection (3A), the tariffs". (3) After section 35(3) of the Electricity Industry Act 2000 insert-- "(3A) A licensee must not vary tariffs under 30 subsection (3) that have been in effect for less than 6 months.". (4) In section 35(4) of the Electricity Industry Act 2000, for "2 months" substitute "one month". 561206B.I-9/9/2008 9 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 9 (5) In section 35(8) of the Electricity Industry Act 2000-- (a) in the definition of cooling-off period, for "the contract;" substitute "the contract."; 5 (b) the definition of domestic or small business customer is repealed. (6) Section 35(9) of the Electricity Industry Act 2000 is repealed. 9 New sections 35A to 35E inserted 10 After section 35 of the Electricity Industry Act 2000 insert-- "35A Licensee standing offer tariffs to be given to Commission Without limiting the generality of section 15 20(2) or (3) or section 21, the conditions to which a licence 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 20 licensee to, on the same day the licensee publishes tariffs in accordance with section 35-- (a) give a copy of those tariffs to the Commission; and 25 (b) inform the Commission, in writing, of the day those tariffs take effect. 35B Commission must publish on Internet licensee standing offer tariffs The Commission must publish on its Internet 30 site tariffs it receives under section 35A on the day those tariffs take effect. 561206B.I-9/9/2008 10 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 9 35C Internet publication and bill notification of licensee standing offers (1) Without limiting the generality of section 20(2) or (3) or section 21, the conditions to 5 which a licence 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-- 10 (a) publish, in accordance with guidelines issued under subsection (2), on the licensee's Internet site details of licensee standing offers that are in effect; and 15 (b) notify, in writing, a domestic or small business customer of the licensee standing offer that is in effect and that applies to electricity sold to that customer in or with the customer's first 20 electricity bill after that licensee standing offer has taken effect. (2) The Commission must prepare and issue guidelines for the purposes of this section specifying-- 25 (a) the manner of publication of details of licensee standing offers that are in effect, including the accessibility of those licensee standing offers on a licensee's Internet site; and 30 (b) the nature of the details to be published; and (c) any other matters that the Commission considers relevant. 561206B.I-9/9/2008 11 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 9 35D Required tariff information and licensee contact information to be published in newspaper (1) Without limiting the generality of section 5 20(2) or (3) or section 21, the conditions to which a licence 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 10 licensee to, on the required day, publish in a newspaper circulating generally throughout Victoria-- (a) required tariff information; and (b) the licensee's contact information. 15 (2) In this section-- licensee's contact information means all of the following information-- (a) the licensee's telephone number; (b) the licensee's fax number; 20 (c) the licensee's postal address; (d) the Internet address of the licensee's Internet site; required day means the day the licensee varies a tariff or tariffs for the supply 25 and sale of electricity by notice published in the Government Gazette in accordance with section 35(3); required tariff information means-- (a) tariff variation information; and 30 (b) the date a tariff or tariffs varied in accordance with section 35(3) takes or take effect; and 561206B.I-9/9/2008 12 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 9 (c) a description of the tariff or tariffs referred to in paragraph (b); and (d) the main reasons for the variation of a tariff or tariffs referred to in 5 paragraph (b); tariff variation information means-- (a) in the case of a single tariff for the supply and sale of electricity that is varied in accordance with 10 section 35(3), the weighted tariff variation relating to that tariff determined in accordance with an Order under section 35E; (b) in the case where more than one 15 tariff for the supply and sale of electricity is varied in accordance with section 35(3) at the same time in accordance with that section, the weighted tariff 20 variation relating to those tariffs determined in accordance with an Order under section 35E. 35E Order specifying method and variables to be used to determine weighted tariff 25 variation The Governor in Council, by Order published in the Government Gazette, may specify the method and variables to be used to determine the weighted tariff variation for 30 the purposes of paragraphs (a) and (b) of the definition of tariff variation information in section 35D(2).". 561206B.I-9/9/2008 13 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 10 10 Terms and conditions of contracts for sale of electricity to certain customers Section 36(7) of the Electricity Industry Act 2000 is repealed. 5 11 Publication of terms and conditions of sale of electricity (relevant published offers) (1) In the heading to section 36A of the Electricity Industry Act 2000-- (a) after "of" (where first occurring) insert 10 "tariffs,"; (b) after "electricity" insert "(relevant published offers)". (2) For section 36A(1) of the Electricity Industry Act 2000 substitute-- 15 "(1) Without limiting the generality of section 20(2) or (3) or section 21, the conditions to which a licence to sell electricity issued to a specified retailer is subject include a condition requiring the specified retailer in 20 specified circumstances-- (a) to publish on its Internet site, in accordance with this section, details of the tariffs and terms and conditions on which that retailer sells electricity to 25 small retail customers; and (b) to, on the same day the retailer publishes the details of the tariffs, terms and conditions in accordance with paragraph (a), give a copy of those 30 details to the Commission. (1A) The Commission must publish on its Internet site the details of the tariffs, terms and conditions it receives under subsection (1)(b) as soon as practicable after receiving those 35 details.". 561206B.I-9/9/2008 14 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 12 (3) In section 36A(2)(a) of the Electricity Industry Act 2000, after "conditions" insert ", including the accessibility of the details of those tariffs and terms and conditions on a specified retailer's 5 Internet site". (4) Section 36A(5) and section 36A(6) of the Electricity Industry Act 2000 are repealed. 12 Deemed contracts with former franchise customers Section 37(3) of the Electricity Industry Act 10 2000 is repealed. 13 Deemed contracts for supply and sale for relevant customers Section 39(11) of the Electricity Industry Act 2000 is repealed. 15 14 New section 39A inserted After section 39 of the Electricity Industry Act 2000 insert-- "39A Commission must report to Minister on electricity supply offers 20 (1) The Commission must by the end of every calendar year, and at other times the Minister directs in writing, prepare and give to the Minister a report that, for the reporting period, compares and assesses-- 25 (a) licensee standing offers, deemed standing offers in effect during the reporting period, and relevant published offers and other offers of retailers to supply and sell electricity that were 30 available during the reporting period; 561206B.I-9/9/2008 15 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 14 (b) variations to licensee standing offers, deemed standing offers, relevant published offers and other offers to supply and sell electricity during the 5 reporting period. (2) A report under subsection (1)-- (a) may include information about any trends in relation to variations to licensee standing offers, deemed 10 standing offers, relevant published offers and other offers of retailers to supply and sell electricity over a period; and (b) must also include any other information 15 that the Minister, in writing, requires to be included. (3) A period referred to in subsection (2)(a) may be greater than the reporting period. (4) The Commission must publish a report under 20 subsection (1) on its Internet site as soon as practicable after giving it to the Minister. (5) In this section-- deemed standing offer means the tariffs and terms and conditions constituting a 25 deemed contract for the supply and sale of electricity under section 37 or section 39; reporting period means the financial year ending in the calendar year in which the 30 Commission must give its report to the Minister.". 561206B.I-9/9/2008 16 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 15 15 New Division 5B of Part 2 inserted After Division 5A of Part 2 of the Electricity Industry Act 2000 insert-- "Division 5B--Condition relating to 5 greenhouse gas emissions and energy efficiency benchmarking information 40O Definitions In this Division-- bill benchmarking information has the 10 meaning given by section 40P; provide, in relation to bill benchmarking information, means-- (a) include in, or accompany, a bill issued for the supply or sale of 15 electricity to a residential customer; or (b) give in another manner approved by the Commission; residential customer means a person, or a 20 member of a class of persons, to whom an Order under section 40Q(1) applies. 40P Meaning of bill benchmarking information Bill benchmarking information is 25 information that enables a residential customer to-- (a) make a comparison between-- (i) the use of electricity at the residential customer's place of 30 supply; and (ii) the average use of electricity at similar places of supply; and 561206B.I-9/9/2008 17 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 15 (b) assess whether the use of electricity at the residential customer's place of supply is above, equal or below the average use of electricity at similar 5 places of supply. 40Q Declaration of residential customers (1) The Governor in Council, by Order published in the Government Gazette, may declare that a person or a class of persons 10 specified in the Order is, for the purposes of section 40R(b), a residential customer or class of residential customers. (2) An Order under subsection (1) may specify a class of persons by reference to all or any of 15 the following-- (a) the person authorised to sell the electricity; (b) the purpose for which the electricity is used; 20 (c) the quantity of electricity used; (d) the period of use; (e) the place of supply; (f) any other specified factor relevant to the sale of electricity. 25 40R Condition relating to greenhouse gas emissions and energy efficiency benchmarking information A licence to sell electricity is deemed to include a condition requiring the licensee 30 to-- (a) include in each bill issued to a customer for the supply or sale of electricity the information concerning greenhouse gas emissions connected with the 561206B.I-9/9/2008 18 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 16 generation of the electricity so supplied or electricity generation in general that the Commission specifies for this purpose in its guidelines; or 5 (b) provide bill benchmarking information to a residential customer. 40S Commission guidelines relating to greenhouse gas emissions information condition 10 (1) The Commission must prepare and issue guidelines for the purposes of section 40R(a). (2) The Commission may amend any guidelines issued under subsection (1). 15 (3) The Commission must consult with Sustainability Victoria before issuing a guideline under subsection (1) or amending a guideline issued under that subsection. (4) The Commission must publish each 20 guideline issued under subsection (1) and each amendment of a guideline.". 16 New definition inserted into section 46B In section 46B of the Electricity Industry Act 2000 insert the following definition-- 25 "exempted retailer means a person who-- (a) engages in the supply and sale of electricity; and (b) is exempted under an Order under section 17 from the requirement to 30 obtain a licence under that Act in respect of that activity;". 561206B.I-9/9/2008 19 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 17 17 Orders in relation to advanced metering infrastructure (1) In section 46D(a), (b), (c), (d) and (e) of the Electricity Industry Act 2000, after "relevant 5 licensee" insert "or an exempted retailer". (2) After section 46D(g) of the Electricity Industry Act 2000 insert-- "(ga) specify the responsibilities of an exempted retailer on being notified of a customer's 10 election to transfer to a retailer or another exempted retailer, to ensure there is no cost impediment or other impediment to that transfer arising from the exempted retailer's provision of advanced metering 15 infrastructure;". (3) For section 46D(h) of the Electricity Industry Act 2000 substitute-- "(h) provide for the setting and regulation of the prices, fees and charges that a relevant 20 licensee who is a distribution company may charge for or in connection with the costs of, or in relation to, the provision, installation, maintenance and operation of advanced metering infrastructure and associated 25 services and systems; (i) empower the recovery of the prices, fees and charges referred to in paragraph (h) from-- (i) a retailer who is a relevant licensee or a class or classes of retailers who are 30 relevant licensees supplied electricity by the distribution company, or all customers of a retailer who is a relevant licensee or a class or classes of customers of a retailer who is a relevant 35 licensee and is so supplied; 561206B.I-9/9/2008 20 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 2--Amendment of Electricity Industry Act 2000 s. 18 (ii) an exempted retailer or a class or classes of exempted retailers supplied electricity by the distribution company, or all customers of an exempted retailer 5 or a class or classes of customers of an exempted retailer who is so supplied.". 18 General powers in relation to Orders relating to advanced metering infrastructure After section 46E(2) of the Electricity Industry 10 Act 2000 insert-- "(2A) The provisions of an Order under section 46D may be of general or limited application and may differ according to differences in time, place and circumstances. 15 (2B) An Order under section 46D may-- (a) include saving and transitional provisions; and (b) provide that the Commission is not required to take specified actions or 20 make specified determinations under the Order before the commencement of section 5 of the National Electricity (Victoria) Amendment Act 2007.". __________________ 561206B.I-9/9/2008 21 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 19 PART 3--AMENDMENT OF GAS INDUSTRY ACT 2001 Division 1--Consumer safety net provisions 19 Definitions See: In section 3 of the Gas Industry Act 2001 insert Act No. 5 31/2001. the following definitions-- Reprint No. 3 as at "AEMC means the Australian Energy Market 11 October 2006 Commission established by section 5 of the and Australian Energy Market Commission amending Act Nos Establishment Act 2004 of South Australia; 61/2005, 10 35/2007, domestic or small business customer means a 55/2007 and person, or a member of a class of persons, to 30/2008. LawToday: whom an Order under section 42(5) applies; www. legislation. licensee standing offer means-- vic.gov.au (a) the tariffs determined by a licensee 15 under section 42(1) and published in the Government Gazette in accordance with that subsection, as varied from time to time by the licensee as provided for under section 42(3); and 20 (b) the terms and conditions determined by a licensee and approved by the Commission under section 42(1) and published in the Government Gazette in accordance with that subsection, as 25 varied from time to time by the licensee and approved by the Commission as provided for under section 42(4); MCE means the Ministerial Council on Energy established on 8 June 2001, being the 30 Council of Ministers with primary carriage of energy matters at a national level comprising the Ministers representing the Commonwealth, the States, the Australian 561206B.I-9/9/2008 22 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 20 Capital Territory and the Northern Territory, acting in accordance with its own procedures; regulated tariff standing offer means a licensee 5 standing offer that is subject to an Order under section 21 that is in force; relevant published offer means the tariffs and terms and conditions on which a specified retailer sells gas to small retail customers 10 that are published in accordance with section 43A; specified circumstances, in section 43A, means circumstances declared to be specified circumstances by Order under 15 section 7A(1)(c); specified retailer means a licensee declared to be a specified gas retailer by Order under section 7A(1)(b); standing offer means-- 20 (a) a licensee standing offer; or (b) a regulated tariff standing offer;". 20 Declaration of classes of customers and retailers and specified circumstances (1) In section 7A(1)(b) of the Gas Industry Act 25 2001, for "section 43A." substitute "section 43A;". (2) After section 7A(1)(b) of the Gas Industry Act 2001 insert-- "(c) declare circumstances to be specified 30 circumstances for the purposes of section 43A.". (3) In section 7A(3) of the Gas Industry Act 2001, for "this section" substitute "subsection (1)(a)". 561206B.I-9/9/2008 23 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 20 (4) After section 7A(3) of the Gas Industry Act 2001 insert-- "(3A) An Order under subsection (1)(b) may specify a licensee by reference to all or any 5 of the following-- (a) the number of small retail customers of the licensee; (b) the tariffs at, and terms and conditions on, which the licensee sells gas to its 10 small retail customers; (c) the distribution area of a gas distribution company provided for in the company's licence; (d) any other specified factor relevant to 15 the sale of gas. (3B) An Order under subsection (1)(c) may declare circumstances to be specified circumstances by reference to all or any of the following-- 20 (a) the number of small retail customers of a specified retailer; (b) the tariffs at, and terms and conditions on, which a specified retailer sells gas to its small retail customers; 25 (c) the distribution area of a gas distribution company provided for in the company's licence; (d) any other specified factor relevant to the sale of gas.". 561206B.I-9/9/2008 24 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 21 21 Regulation of tariffs for prescribed customers (1) After section 21(1) of the Gas Industry Act 2001 insert-- "(1A) The Governor in Council may only make an 5 Order under subsection (1) if under an MCE directed retail competition review the AEMC-- (a) concludes that competition in a market for gas is not effective; and 10 (b) recommends, in accordance with the MCE's written direction for that review, that price controls on prices for retail gas services be (as the case requires) retained or reintroduced.". 15 (2) After section 21(2) of the Gas Industry Act 2001 insert-- "(2A) Without limiting the generality of subsection (1), in determining the manner tariffs for the sale of gas to prescribed 20 customers or a class of prescribed customers are to be regulated, the Governor in Council may have regard to the tariffs payable by the prescribed customers or a class of prescribed customers during the review period.". 25 (3) In section 21(6) of the Gas Industry Act 2001-- (a) in the definition of prescribed customer, for "applies." substitute "applies;"; (b) insert the following definitions-- "MCE directed retail competition review 30 means an MCE directed review (within the meaning of the National Gas (Victoria) Law) under section 79(1)(e) of that Law; 561206B.I-9/9/2008 25 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 22 review period means the period-- (a) commencing on the day that the direction of the MCE requiring an MCE directed retail competition 5 review is published in the South Australian Government Gazette under section 79(3) of the National Gas (Victoria) Law; and (b) ending on the day before the day 10 the Order under subsection (1) is made.". (4) Section 21(7) of the Gas Industry Act 2001 is repealed. 22 Offer to domestic or small business customers 15 (1) In the heading to section 42 of the Gas Industry Act 2001, after "customers" insert "(licensee standing offers)". (2) In section 42(3) of the Gas Industry Act 2001, for "The tariffs" substitute "Subject to 20 subsection (3A), the tariffs". (3) After section 42(3) of the Gas Industry Act 2001 insert-- "(3A) A licensee must not vary tariffs under subsection (3) that have been in effect for 25 less than 6 months.". (4) In section 42(4) of the Gas Industry Act 2001, for "2 months" substitute "one month". (5) In section 42(8) of the Gas Industry Act 2001-- (a) in the definition of cooling-off period, for 30 "the contract;" substitute "the contract."; (b) the definition of domestic or small business customer is repealed. 561206B.I-9/9/2008 26 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 23 (6) Section 42(9) of the Gas Industry Act 2001 is repealed. 23 New sections 42A to 42E inserted After section 42 of the Gas Industry Act 2001 5 insert-- "42A Licensee standing offer tariffs to be given to Commission Without limiting the generality of section 28, the conditions to which a licence to sell gas 10 by retail, being a licence under which gas may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to, on the same day the licensee publishes tariffs in accordance with 15 section 42-- (a) give a copy of those tariffs to the Commission; and (b) inform the Commission, in writing, of the day those tariffs, terms and 20 conditions take effect. 42B Commission must publish on Internet licensee standing offer tariffs The Commission must publish on its Internet site tariffs it receives under section 42A on 25 the day those tariffs take effect. 42C Internet publication and bill notification of licensee standing offers (1) Without limiting the generality of section 28, the conditions to which a licence to sell gas 30 by retail, being a licence under which gas may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to-- 561206B.I-9/9/2008 27 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 23 (a) publish, in accordance with guidelines issued under subsection (2), on the licensee's Internet site details of licensee standing offers that are in 5 effect; and (b) notify, in writing, a domestic or small business customer of the licensee standing offer that is in effect and that applies to gas sold to that customer in 10 or with the customer's first gas bill after that licensee standing offer has taken effect. (2) The Commission must prepare and issue guidelines for the purposes of this section 15 specifying-- (a) the manner of publication of details of licensee standing offers that are in effect, including the accessibility of those licensee standing offers on a 20 licensee's Internet site; and (b) the nature of the details to be published; and (c) any other matters that the Commission considers relevant. 25 42D Required tariff information and licensee contact information to be published in newspaper (1) Without limiting the generality of section 28, the conditions to which a licence to sell gas 30 by retail, being a licence under which gas may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to, on the required day, publish in a newspaper circulating generally 35 throughout Victoria-- 561206B.I-9/9/2008 28 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 23 (a) required tariff information; and (b) the licensee's contact information. (2) In this section-- licensee's contact information means all of 5 the following information-- (a) the licensee's telephone number; (b) the licensee's fax number; (c) the licensee's postal address; (d) the Internet address of the 10 licensee's Internet site; required day means the day the licensee varies a tariff or tariffs for the supply and sale of gas by notice published in the Government Gazette in accordance 15 with section 42(3); required tariff variation information means-- (a) tariff variation information; and (b) the date a tariff or tariffs varied in 20 accordance with section 42(3) takes or take effect; and (c) a description of the tariff or tariffs referred to in paragraph (b); and (d) the main reasons for the variation 25 of a tariff or tariffs referred to in paragraph (b); tariff variation information means-- (a) in the case of a single tariff for the supply and sale of gas that is 30 varied in accordance with section 42(3), the weighted tariff variation relating to that tariff 561206B.I-9/9/2008 29 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 24 determined in accordance with an Order under section 42E; (b) in the case where more than one tariff for the supply and sale of 5 gas is varied in accordance with section 42(3) at the same time in accordance with that section, the weighted tariff variation relating to those tariffs determined in 10 accordance with an Order under section 42E. 42E Order specifying method and variables to be used to determine weighted tariff variation 15 The Governor in Council, by Order published in the Government Gazette, may specify the method and variables to be used to determine the weighted tariff variation for the purposes of paragraphs (a) and (b) of the 20 definition of tariff variation information in section 42D(2).". 24 Terms and conditions of contracts for sale of gas to certain customers Section 43(7) of the Gas Industry Act 2001 is 25 repealed. 25 Publication of terms and conditions of sale of gas (relevant published offers) (1) In the heading to section 43A of the Gas Industry Act 2001-- 30 (a) after "of" (where first occurring) insert "tariffs,"; and (b) after "gas" insert "(relevant published offers)". 561206B.I-9/9/2008 30 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 26 (2) For section 43A(1) of the Gas Industry Act 2001 substitute-- "(1) Without limiting the generality of section 28, the conditions to which a licence to sell gas 5 by retail issued to a specified gas retailer is subject include a condition requiring the specified gas retailer in specified circumstances-- (a) to publish on its Internet site, in 10 accordance with this section, details of the tariffs and terms and conditions on which that retailer sells gas to small retail customers; and (b) to, on the same day the specified gas 15 retailer publishes the details of the tariffs, terms and conditions in accordance with paragraph (a), give a copy of those details to the Commission. 20 (1A) The Commission must publish on its Internet site the details of the tariffs, terms and conditions it receives under subsection (1)(b) as soon as practicable after receiving those details.". 25 (3) In section 43A(2)(a) of the Gas Industry Act 2001, after "conditions" insert ", including the accessibility of the details of those tariffs and terms and conditions on a specified gas retailer's Internet site". 30 (4) Section 43A(5) and section 43A(6) of the Gas Industry Act 2001 are repealed. 26 Deemed contracts with former franchise customers Section 44(3) of the Gas Industry Act 2001 is repealed. 561206B.I-9/9/2008 31 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 27 27 Deemed contracts for supply and sale for relevant customers Section 46(11) of the Gas Industry Act 2001 is repealed. 5 28 New section 47 inserted After section 46 of the Gas Industry Act 2001 insert-- "47 Commission must report to Minister on gas supply offers 10 (1) The Commission must by the end of every calendar year, and at other times the Minister directs in writing, prepare and give to the Minister a report that, for the reporting period, compares and assesses-- 15 (a) licensee standing offers, deemed standing offers in effect during the reporting period, and relevant published offers and other offers to supply and sell gas by retail that were available 20 during the reporting period; (b) variations to licensee standing offers, deemed standing offers, relevant published offers and other offers to supply and sell gas by retail during the 25 reporting period. (2) A report under subsection (1)-- (a) may include information about any trends in relation to variations to licensee standing offers, deemed 30 standing offers, relevant published offers and other offers to supply and sell gas by retail over a period; and (b) must also include any other information that the Minister, in writing, requires to 35 be included. 561206B.I-9/9/2008 32 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 29 (3) A period referred to in subsection (2)(a) may be greater than the reporting period. (4) The Commission must publish a report under subsection (1) on its Internet site as soon as 5 practicable after giving it to the Minister. (5) In this section-- deemed standing offer means the tariffs and terms and conditions constituting a deemed contract for the supply and sale 10 of gas under section 44 or section 46; reporting period means the financial year ending in the calendar year in which the Commission must give its report to the Minister.". 15 Division 2--Other amendments 29 Repeal of Tariff Order provision Section 20A of the Gas Industry Act 2001 is repealed. 30 Retail gas market rules 20 (1) In section 60(1) of the Gas Industry Act 2001, after "market" (where secondly occurring) insert "to facilitate the operation of a fully contestable market for gas". (2) After section 60(2) of the Gas Industry Act 2001 25 insert-- "(2A) Retail gas market rules may also include rules relating to the resolution of disputes under or in relation to those rules between persons, including provisions-- 30 (a) requiring the persons in dispute to resolve the dispute in accordance with the rules before seeking any other 561206B.I-9/9/2008 33 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 31 remedy in relation to the dispute from a court or otherwise; (b) providing for the appointment of a person, in accordance with the rules, to 5 manage and facilitate the resolution of such disputes; (c) providing for the appointment, by a person referred to in paragraph (a), of persons (including mediators and 10 arbitrators) to resolve such disputes; (d) providing for the procedure for the conduct and resolution of such disputes; (e) relating to the application and effect of 15 decisions of persons appointed to resolve such disputes; (f) providing for the reference, to a court, of questions of law arising in respect of the resolution of such disputes; 20 (g) conferring an immunity on, or limiting the liability of, persons appointed to resolve such disputes.". 31 Principles for retail gas market rules In section 61(1) of the Gas Industry Act 2001, 25 for "this Division" substitute "section 65". 32 New section 62 substituted For section 62 of the Gas Industry Act 2001 substitute-- "62 Retail gas market rules--gas transmission 30 system and gas distribution system (1) The Governor in Council, by Order published in the Government Gazette, may make retail gas market rules in accordance 561206B.I-9/9/2008 34 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 33 with this Division for the gas transmission system and gas distribution system. (2) Rules made under an Order under subsection (1) come into operation on the 5 day the Order is published in the Government Gazette or a later day that is specified in the Order. Note See also section 237.". 10 33 Consequential amendment to reference to VENCorp developed retail gas market rules In section 63(1) of the Gas Industry Act 2001, for "developed by VENCorp" substitute "made by the Governor in Council by Order". 15 34 Consequential section cross-reference amendment In section 64(b) of the Gas Industry Act 2001, for "sections 62 and 63" substitute "section 63". 35 Approval of rules by Commission In section 65(1) of the Gas Industry Act 2001, 20 for "this Division" substitute "section 63". 36 Commission directions to VENCorp in relation to supplier of last resort trigger events (1) In section 67A(1) of the Gas Industry Act 2001 omit "VENCorp" (where secondly occurring). 25 (2) In section 67A(2) of the Gas Industry Act 2001 omit "VENCorp" (where first occurring). (3) In section 67A(3) of the Gas Industry Act 2001, the definition of VENCorp retail market rules is repealed. 561206B.I-9/9/2008 35 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 37 (4) In section 67A(3) of the Gas Industry Act 2001-- (a) insert the following definition-- "retail gas market rules means retail gas 5 market rules made by Order under section 62;"; (b) in the definition of trigger event, for "51A;" substitute "51A.". 37 Costs of VENCorp 10 (1) In section 69(3) of the Gas Industry Act 2001, for "Commission" substitute "AER". (2) Section 69(4) of the Gas Industry Act 2001 is repealed. 38 New section 237 inserted 15 After section 236 of the Gas Industry Act 2001 insert-- "237 Transitional provision--Retail gas market rules developed by VENCorp (1) On the commencement of section 32 of the 20 Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008, VENCorp retail gas market rules that are in effect immediately before that commencement are to be taken to be retail 25 gas market rules made by the Governor in Council by Order under section 62. (2) In this section-- VENCorp retail gas market rules means rules-- 30 (a) developed by VENCorp under section 62 (as in force immediately before the commencement of section 32 of 561206B.I-9/9/2008 36 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 3--Amendment of Gas Industry Act 2001 s. 38 the Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008); and 5 (b) approved by the Commission under section 65 (as in force immediately before the commencement of section 35 of the Energy Legislation 10 Amendment (Retail Competition and Other Matters) Act 2008).". __________________ 561206B.I-9/9/2008 37 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 4--Amendment of Other Energy Legislation s. 39 PART 4--AMENDMENT OF OTHER ENERGY LEGISLATION Division 1--Amendment of Gas Safety Act 1997 39 Definitions 5 See: In section 3(1) of the Gas Safety Act 1997, in the Act No. 99/1997. definition of standard gas installation, for Reprint No. 3 paragraph (b)(iv) substitute-- as at 1 May 2008. LawToday: "(iv) which has a maximum metering pressure that www. is less than the prescribed maximum legislation. 10 vic.gov.au metering pressure or a maximum operating pressure that is less than the prescribed maximum operating pressure; and (v) which has a number of gas supply points that is less than the prescribed number of gas 15 supply points;". 40 Regulations (1) After section 118(1)(r) of the Gas Safety Act 1997 insert-- "(ra) requiring the keeping of records in relation to 20 the service, maintenance, repair or modification of a complex gas installation or a Type B appliance;". (2) In section 118(2)(c)(ii) of the Gas Safety Act 1997, after "as" insert "published or". 561206B.I-9/9/2008 38 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 4--Amendment of Other Energy Legislation s. 41 Division 2--Amendment of Electricity Safety Act 1998 41 Certificates of approval, acceptance or compliance (1) Section 54(b) of the Electricity Safety Act 1998 See: Act No. is repealed. 25/1998. Reprint No. 5 5 (2) Section 56 of the Electricity Safety Act 1998 is as at 21 August repealed. 2008 and (3) In section 153(c) of the Electricity Safety Act amending 1998 omit "the acceptance of electrical Act Nos 61/2007 and equipment,". 25/2008. LawToday: 10 (4) In section 153(c)(i), (ii), (iii), (iv) and (vii) of the www. Electricity Safety Act 1998, for "approval, legislation. vic.gov.au acceptance" substitute "approval". (5) In section 153(c)(v) of the Electricity Safety Act 1998 omit "or acceptance". 15 (6) For section 153(c)(vi) of the Electricity Safety Act 1998 substitute-- "(vi) the renewal, transfer and duration of certificates of approval or compliance;". (7) In section 153(e)(i) and (ii) of the Electricity 20 Safety Act 1998 omit "or acceptance". (8) For section 153(e)(iii) and (iv) of the Electricity Safety Act 1998 substitute-- "(iii) applications for certificates of approval or compliance, or the renewal, modification or 25 transfer of certificates of approval or compliance.". 42 Incorporation by reference by regulations In section 157(2)(c)(ii) of the Electricity Safety Act 1998, after "as" insert "published or". 561206B.I-9/9/2008 39 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 4--Amendment of Other Energy Legislation s. 43 Division 3--Amendment of National Electricity (Victoria) Amendment Act 2007 43 ESC AMI determination processes not completed before regulatory handover to AER 5 See: In section 5 of the National Electricity (Victoria) Act No. 66/2007. Amendment Act 2007, after proposed section 27 Statute Book: of the National Electricity (Victoria) Act 2005 www. legislation. insert-- vic.gov.au "27A AER determinations under the AMI 10 Order (1) Without limiting this Part, on and from the transitional period commencement date, the AER must take action under the AMI Order as if it were the ESC, including the making 15 of a determination under the AMI Order. (2) For the purposes of this section-- (a) any Pricing Proposal (as defined in the AMI Order) made before the transitional period commencement date, 20 and any information provided to the ESC by a distributor (as defined in the AMI Order) in connection with, or for the purposes of, a Pricing Proposal must be taken to be provided to the 25 AER; and (b) any Application (as defined in the AMI Order) made before the transitional period commencement date, and any information provided to the ESC by a 30 distributor in connection with or for the purposes of an Application must be taken to be made or provided to the AER; and 561206B.I-9/9/2008 40 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 4--Amendment of Other Energy Legislation s. 43 (c) all actions taken, or things done, by the ESC before the transitional period commencement date in respect of a Pricing Proposal or an Application 5 must be taken to be actions taken, or things done, by the AER; and (d) information provided to the ESC by a distributor before the transitional period commencement date in connection 10 with, or for the purposes of, a Pricing Proposal or an Application may be used and relied on by it and the AER in connection with, or for the purposes of, any determination that the AER must 15 make under the AMI Order (whether or not the determination is a determination with respect to the Pricing Proposal or Application). (3) Subsection (2)(c) does not limit the actions 20 that the AER may take or the things that the AER may do for the purpose of making a determination under the AMI Order. (4) Subsection (2)(d) does not limit the information that-- 25 (a) the AER may request from a distributor in accordance with the AMI Order for the purpose of making a determination under the AMI Order; or (b) a distributor may be required to provide 30 to the AER under the AMI Order for the purpose of enabling the AER to make a determination under the AMI Order.". 561206B.I-9/9/2008 41 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 4--Amendment of Other Energy Legislation s. 44 44 Appeals against certain decisions or actions of the AER (1) In section 5 of the National Electricity (Victoria) Amendment Act 2007, in proposed section 5 29(1)(c)(ii)(B) of the National Electricity (Victoria) Act 2005, for "Victoria." substitute "Victoria; or". (2) In section 5 of the National Electricity (Victoria) Amendment Act 2007, after proposed section 10 29(1)(c) of the National Electricity (Victoria) Act 2005 insert-- "(d) a decision or determination under the AMI Order.". Division 4--Amendment of National Gas (Victoria) Act 2008 15 45 Transitioned Victorian distribution RIOs See: (1) For section 37(2)(d) of the National Gas Act No. 30/2008. (Victoria) Act 2008 substitute-- LawToday: www. "(d) subject to section 38, prepare or serve a legislation. vic.gov.au regulatory information notice that is 20 inconsistent with the transitioned Victorian distribution RIO (as the transitioned Victorian distribution RIO applies to a Victorian transitioned access arrangement before the first NGL revisions day).". 25 (2) In section 37(3) of the National Gas (Victoria) Act 2008, for "day revisions to a Victorian transitioned access arrangement that relates to pipelines services provided by that service provider and that are first approved or made in 30 accordance with the National Gas (Victoria) Law and the National Gas Rules after the NGL commencement day take effect" substitute "first NGL revisions day". 561206B.I-9/9/2008 42 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 4--Amendment of Other Energy Legislation s. 46 (3) For section 37(4) of the National Gas (Victoria) Act 2008 substitute-- "(4) In this section-- first NGL revisions day means the day 5 revisions to a Victorian transitioned access arrangement that relate to pipelines services provided by that service provider, first approved or made in accordance with the National Gas 10 (Victoria) Law and the National Gas Rules after the NGL commencement day, take effect; Victorian transitioned access arrangement means a revised gas distribution access 15 arrangement that is deemed to be an AER approved full access arrangement under section 25.". 46 Matters to be taken into account when AER makes or prepares regulatory information instruments 20 After section 38(3) of the National Gas (Victoria) Act 2008 insert-- "(4) This section expires on 1 January 2018.". __________________ 561206B.I-9/9/2008 43 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Part 5--Repeal of Amending Act s. 47 PART 5--REPEAL OF AMENDING ACT 47 Repeal of Act This Act is repealed on 1 July 2011. Note 5 The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). 561206B.I-9/9/2008 44 BILL LA INTRODUCTION 9/9/2008

Energy Legislation Amendment (Retail Competition and Other Matters) Bill 2008 Endnotes ENDNOTES By Authority. Government Printer for the State of Victoria. 561206B.I-9/9/2008 45 BILL LA INTRODUCTION 9/9/2008

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