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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
National Electricity (Victoria) Amendment Bill
2007
TABLE OF PROVISIONS
Clause Page
1 Purpose 1
2 Commencement 2
3 New definitions inserted 2
4 New Part 3 inserted 4
PART 3--MODIFICATION OF APPLICATION OF THE
NATIONAL ELECTRICITY LAW 4
13 Definitions 4
14 NEL provisions providing for access to distribution
services do not apply during specified period 4
15 Modification of application of National Electricity
Law and National Electricity Rules by Order 5
16 Certain provisions of NEL and Rules do not apply to
Victorian distribution pricing determinations 7
5 New Part 4 inserted 8
PART 4--ECONOMIC REGULATORY DISTRIBUTION
FUNCTIONS TRANSITIONAL ARRANGEMENTS 8
17 Definitions 8
18 Meaning of distribution services 10
19 Meaning of relevant regulatory duty 11
20 Meaning of relevant regulatory function or power 12
21 Specified distribution licence conditions 12
22 Specified ESC code or guideline provisions 13
23 Certain ESC regulatory functions, powers and duties
conferred and imposed on the AER 13
24 ESC ceases to have certain distribution system related
regulatory functions, powers and duties 14
25 Enforcement of Victorian distribution pricing
determination and distribution licences by AER 15
26 ESC cannot enforce Victorian pricing determination
or certain distribution licence conditions 16
27 AER may request amendment of distribution licences
and distribution service related code or guideline 17
561046B.I-30/10/2007 i BILL LA INTRODUCTION 30/10/2007
Clause Page
28 Provision of information and assistance by ESC to
the AER 17
29 Appeals against AER determinations 18
6 Statute law revision 19
7 Repeal of Act 19
ENDNOTES 20
561046B.I-30/10/2007 ii BILL LA INTRODUCTION 30/10/2007
PARLIAMENT OF VICTORIA
Introduced in the Assembly
National Electricity (Victoria)
Amendment Bill 2007
A Bill for an Act to amend the National Electricity (Victoria) Act
2005 and for other purposes.
The Parliament of Victoria enacts:
1 Purpose
The main purpose of this Act is to amend the
National Electricity (Victoria) Act 2005 to--
(a) provide for the modification of the
5 application of the National Electricity Law
and the National Electricity Rules (as laws of
Victoria) for a limited period; and
(b) provide for transitional arrangements relating
to the administration and enforcement by the
10 Australian Energy Regulator of the current
distribution pricing determination made by
the Essential Services Commission and
certain conditions of distribution licences.
561046B.I-30/10/2007 1 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 2
2 Commencement
(1) Subject to this section, this Act (except section 6)
comes into operation on a day or days to be
proclaimed.
5 (2) Section 6 comes into operation on the day after
the day on which this Act receives the Royal
Assent.
(3) If a provision of this Act does not come into
operation before 1 January 2009, it comes into
10 operation on that day.
3 New definitions inserted
See: In section 3(1) of the National Electricity
Act No.
8/2005 (Victoria) Act 2005--
and
amending (a) before the definition of National Electricity
Act No.
15 28/2007.
(Victoria) Law insert--
LawToday:
www. "20062010 distribution pricing
legislation. determination means--
vic.gov.au
(a) the determination of the ESC
under Part 3 of the Essential
20 Services Commission Act 2001
made on 18 October 2005
applying to charges for connection
to, and the use of, distribution
systems in Victoria (as amended
25 in accordance with the decision of
the appeal panel (within the
meaning of the Essential Services
Commission Act 2001) on
17 February 2006); and
30 (b) includes amendments made to that
determination before the
commencement of section 5 of the
National Electricity (Victoria)
Amendment Act 2007;
561046B.I-30/10/2007 2 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 3
Essential Services Commission or ESC
means the Essential Services
Commission established under
section 7 of the Essential Services
5 Commission Act 2001;";
(b) in the definition of National Electricity
(Victoria) Regulations, for "Act." substitute
"Act;";
(c) after the definition of National Electricity
10 (Victoria) Regulations insert--
"Tariff Order has the same meaning as in the
Electricity Industry Act 2000;
Victorian distribution pricing determination
means--
15 (a) the 20062010 distribution pricing
determination as amended from
time to time; or
(b) a determination under Part 3 of the
Essential Services Commission
20 Act 2001 or the Tariff Order
applying to charges for connection
to, and the use of, distribution
systems in Victoria that revokes
and substitutes--
25 (i) the 20062010 distribution
pricing determination; or
(ii) a determination applying to
charges for connection to,
and the use of, distribution
30 systems in Victoria--
as amended from time to time.".
561046B.I-30/10/2007 3 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 4
4 New Part 3 inserted
After section 12 of the National Electricity
(Victoria) Act 2005 insert--
"__________________
5 PART 3--MODIFICATION OF APPLICATION
OF THE NATIONAL ELECTRICITY LAW
13 Definitions
In this Part--
NEL means the National Electricity Law set
10 out in the Schedule to the National
Electricity (South Australia) Act 1996
of South Australia as in force for the
time being;
Victorian distribution pricing determination
15 end date means--
(a) 31 December 2010; or
(b) if a Victorian distribution pricing
determination provides that it will
cease to have effect on a later
20 date--that date.
14 NEL provisions providing for access to
distribution services do not apply during
specified period
(1) Despite section 6, during the specified
25 period--
(a) section 2A, Division 3B of Part 6,
Part 10 and section 157 of the NEL
(as each of those provisions apply to
access to services provided by means of
30 a distribution system, or connection to a
distribution system) do not apply as a
law of Victoria; and
561046B.I-30/10/2007 4 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 4
(b) a Rule made for the purposes of any
provision referred to in paragraph (a)
does not have the force of law in
Victoria.
5 (2) In this section--
specified period means the period--
(a) commencing on the day section 46
of the National Electricity (South
Australia) (National Electricity
10 Law--Miscellaneous
Amendments) Amendment Act
2007 of South Australia
commences operation; and
(b) ending on the Victorian
15 distribution pricing determination
end date.
15 Modification of application of National
Electricity Law and National Electricity
Rules by Order
20 (1) The Minister, by Order published in the
Government Gazette, may declare that,
despite section 6--
(a) a provision of the NEL that relates to
the economic regulation of the
25 provision of distribution services--
(i) does not apply as a law of Victoria
until a date specified in the Order
(being a date that is not after the
Victorian distribution pricing
30 determination end date);
(ii) ceases to apply as a law of
Victoria for the period specified in
the Order (not being a period that
ends after the Victorian
561046B.I-30/10/2007 5 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 4
distribution pricing determination
end date);
(iii) applies as a law of Victoria with
any modifications that are
5 specified in the Order for the
period specified in the Order
(not being a period that ends after
the Victorian distribution pricing
determination end date);
10 (b) a provision of the National Electricity
Rules that relates to the economic
regulation of the provision of
distribution services--
(i) does not have the force of law in
15 Victoria until a date specified in
the Order (being a date that is not
after the Victorian distribution
pricing determination end date);
(ii) ceases to have the force of law in
20 Victoria for the period specified in
the Order (not being a period that
ends after the Victorian
distribution pricing determination
end date);
25 (iii) has the force of law in Victoria
with any modifications that are
specified in the Order for the
period specified in the Order
(not being a period that ends after
30 the Victorian distribution pricing
determination end date).
(2) Despite section 6--
(a) the NEL applies as a law of Victoria
subject to any Order under
35 subsection (1) that is in force;
561046B.I-30/10/2007 6 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 4
(b) the National Electricity Rules have the
force of law in Victoria subject to any
Order under subsection (1) that is in
force.
5 16 Certain provisions of NEL and Rules do
not apply to Victorian distribution pricing
determinations
(1) Despite anything to the contrary in the
National Electricity (Victoria) Law or the
10 National Electricity Rules, the provisions of
that Law and those Rules that relate to the
economic regulation of the provision of
distribution services do not apply to a
Victorian distribution pricing determination.
15 (2) To avoid doubt--
(a) the AER cannot perform any function
or duty, or exercise any power, under a
provision of the National Electricity
(Victoria) Law or the National
20 Electricity Rules that relates to the
economic regulation of the provision of
distribution services under a Victorian
distribution pricing determination; and
(b) a Victorian distribution pricing
25 determination is not a distribution
determination for the purposes of the
National Electricity (Victoria) Law or
the National Electricity Rules.
(3) In this section--
30 distribution services has the same meaning
as in Chapter 10 of the National
Electricity Rules.".
561046B.I-30/10/2007 7 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
5 New Part 4 inserted
At the end of the National Electricity (Victoria)
Act 2005 insert--
"__________________
5 PART 4--ECONOMIC REGULATORY
DISTRIBUTION FUNCTIONS TRANSITIONAL
ARRANGEMENTS
17 Definitions
In this Part--
10 AMI Order means--
(a) the initial AMI Order; or
(b) any other Order made by the
Governor in Council under
section 46D of the Electricity
15 Industry Act 2000 that is in force
immediately before the
transitional period commencement
date;
distribution licence has the same meaning as
20 in the Electricity Industry Act 2000;
distribution services has the meaning given
by section 18;
initial AMI Order means the Order--
(a) made by the Governor in Council
25 under sections 15A and 46D of the
Electricity Industry Act 2000;
and
(b) published in the Government
Gazette on 28 August 2007;
561046B.I-30/10/2007 8 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
relevant distributor means--
(a) a distribution company within the
meaning of the Electricity
Industry Act 2000; or
5 (b) a person who--
(i) engages in the distribution or
supply of electricity; and
(ii) is exempted under an Order
under section 17 of the
10 Electricity Industry Act
2000 from the requirement to
obtain a licence under that
Act in respect of that
activity;
15 relevant regulatory duty has the meaning
given by section 19;
relevant regulatory function or power has
the meaning given by section 20;
relevant regulatory law or instrument
20 means--
(a) the Essential Services
Commission Act 2001; or
(b) the Electricity Industry Act
2000; or
25 (c) any regulation made under the
Essential Services Commission
Act 2001 or the Electricity
Industry Act 2000; or
(d) the Tariff Order; or
30 (e) an AMI Order; or
561046B.I-30/10/2007 9 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(f) an Order made by the Governor in
Council (other than the Tariff
Order or an AMI Order) under the
Electricity Industry Act 2000; or
5 (g) the 20062010 distribution pricing
determination; or
(h) a distribution licence; or
(i) a code or guideline made by the
ESC;
10 specified distribution licence condition
means a condition of a distribution
licence specified by Order under
section 21;
specified ESC code or guideline provision
15 means a provision of a code or
guideline published by the ESC
specified by Order under section 22;
transitional period commencement date
means the date on which section 5 of
20 the National Electricity (Victoria)
Amendment Act 2007 comes into
operation.
18 Meaning of distribution services
(1) Distribution services are services provided
25 by means of, or in connection with, a
distribution system.
(2) Without limiting subsection (1), distribution
services include--
(a) services provided relating to the
30 connection to, and use of, a distribution
system; and
(b) services provided relating to
augmentations to a distribution system;
and
561046B.I-30/10/2007 10 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(c) metering services; and
(d) services to facilitate access to services
provided by means of, or in connection
with, a distribution system; and
5 (e) the supply of electricity from a
distribution system; and
(f) services to facilitate the distribution of
electricity; and
(g) public lighting services.
10 19 Meaning of relevant regulatory duty
A relevant regulatory duty is--
(a) a duty the ESC had, immediately before
the transitional period commencement
date, under a relevant regulatory law or
15 instrument that relates to the economic
regulation of the provision of
distribution services by a relevant
distributor other than a duty--
(i) to (or refuse to) grant, vary,
20 revoke, or approve the transfer of,
a distribution licence; or
(ii) to make or amend a code or
guideline that relates to the
provision of distribution services;
25 or
(b) a duty the ESC has under--
(i) a specified distribution licence
condition; or
(ii) a specified ESC code or guideline
30 provision.
561046B.I-30/10/2007 11 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
20 Meaning of relevant regulatory function
or power
A relevant regulatory function or power is--
(a) a function or power the ESC had,
5 immediately before the transitional
period commencement date, under a
relevant regulatory law or instrument
that relates to the economic regulation
of the provision of distribution services
10 by a relevant distributor other than a
function or power--
(i) to (or refuse to) grant, vary,
revoke, or approve the transfer of,
a distribution licence; or
15 (ii) to make or amend a code or
guideline that relates to the
provision of distribution services;
or
(b) a function or power the ESC has
20 under--
(i) a specified distribution licence
condition; or
(ii) a specified ESC code or guideline
provision.
25 21 Specified distribution licence conditions
The Minister, by Order published in the
Government Gazette, may specify a
condition of a distribution licence that--
(a) relates to the provision of distribution
30 services and does not relate to the
economic regulation of the provision of
those services; and
561046B.I-30/10/2007 12 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(b) confers a function or power, or imposes
a duty, on the ESC--
as a specified distribution licence condition
if the Minister considers that the AER must
5 be conferred that function or power, or be
subject to that duty, for the purposes of this
Part.
22 Specified ESC code or guideline
provisions
10 The Minister, by Order published in the
Government Gazette, may specify a
provision of a code or guideline published by
the ESC that--
(a) relates to the provision of distribution
15 services and does not relate to the
economic regulation of the provision of
those services; and
(b) confers a function or power, or imposes
a duty, on the ESC--
20 as a specified ESC code or guideline
provision if the Minister considers that the
AER must be conferred that function or
power, or be subject to that duty, for the
purposes of this Part.
25 23 Certain ESC regulatory functions, powers
and duties conferred and imposed on the
AER
(1) On and from the transitional period
commencement date the AER is, by force of
30 this subsection--
(a) conferred a relevant regulatory function
or power; and
(b) subject to a relevant regulatory duty.
561046B.I-30/10/2007 13 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(2) In addition, the AER has the functions and
powers conferred, and is subject to the duties
imposed, on it under this Part.
(3) For the purposes of this Part, on and from the
5 transitional period commencement date,
every reference to the Essential Services
Commission (by whatever name described)
in--
(a) a relevant regulatory law or instrument
10 (as that law or instrument relates to the
economic regulation of the provision of
distribution services by a relevant
distributor); or
(b) a specified distribution licence
15 condition; or
(c) a specified ESC code or guideline
provision--
is to be taken to be a reference to the AER
unless the context otherwise requires.
20 24 ESC ceases to have certain distribution
system related regulatory functions,
powers and duties
Despite anything to the contrary in any Act
or instrument, on the transitional period
25 commencement date the ESC, by force of
this section, ceases to have any function or
power, or to be subject to any duty, under--
(a) a relevant regulatory law or instrument
(as that law or instrument relates to the
30 economic regulation of the provision of
distribution services by a relevant
distributor); or
561046B.I-30/10/2007 14 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(b) a specified distribution licence
condition; or
(c) a specified ESC code or guideline
provision.
5 25 Enforcement of Victorian distribution
pricing determination and distribution
licences by AER
(1) This section applies if a relevant distributor
has contravened or is contravening or, in the
10 opinion of the AER, is likely to contravene,
as the case requires--
(a) a Victorian distribution pricing
determination; or
(b) a condition of a distribution licence that
15 requires compliance with--
(i) a relevant regulatory law or
instrument (as that law or
instrument relates to the economic
regulation of the provision of
20 distribution services by the
relevant distributor); or
(ii) a code or a guideline published by
the ESC that relates to the
economic regulation of the
25 provision of distribution services
by the distributor--
and the AER considers that the contravention
or likely contravention is not of a trivial
nature.
30 (2) The AER may serve a provisional order or a
final order on the relevant distributor
requiring the distributor--
561046B.I-30/10/2007 15 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(a) to comply with--
(i) a Victorian distribution pricing
determination; or
(ii) the relevant distribution licence
5 condition; and
(b) if a contravention has already occurred,
to take such actions as are specified in
the order to rectify the contravention.
(3) Section 53(2) to (9) and section 54 of the
10 Essential Services Commission Act 2001
apply as if--
(a) reference in those sections to a
provisional order or a final order were a
reference to a provisional order or a
15 final order made and served under this
section; and
(b) a reference to the Commission were a
reference to the AER.
26 ESC cannot enforce Victorian pricing
20 determination or certain distribution
licence conditions
On and from the transitional period
commencement date, the ESC cannot make
or serve a provisional order or a final order
25 under section 53 of the Essential Services
Commission Act 2001 in respect of a
contravention or likely contravention by a
relevant distributor of, as the case requires--
(a) a Victorian distribution pricing
30 determination; or
561046B.I-30/10/2007 16 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
(b) a condition of a distribution licence that
requires compliance with--
(i) a relevant regulatory law or
instrument (as that law or
5 instrument relates to the economic
regulation of the provision of
distribution services by a relevant
distributor); or
(ii) a code or a guideline published by
10 the ESC that relates to the
economic regulation of the
provision of distribution services
by a distributor.
27 AER may request amendment of
15 distribution licences and distribution
service related code or guideline
(1) The AER may request the ESC to amend--
(a) a distribution licence; or
(b) a code or guideline published by the
20 ESC that relates to the provision of
distribution services.
(2) On receiving a request under subsection (1),
the ESC may, after consulting with the AER,
amend the distribution licence, code or
25 guideline (as the case may be).
28 Provision of information and assistance by
ESC to the AER
(1) Despite any other Act or law, the ESC is
authorised, on its own initiative or at the
30 request of the AER--
(a) to provide the AER with such
information (including information
given in confidence) in the possession
or control of the ESC that is reasonably
561046B.I-30/10/2007 17 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 5
required by the AER for the purposes
of this Part; and
(b) to provide the AER with such other
assistance as is reasonably required by
5 the AER to perform a function or duty,
or exercise a power, conferred or
imposed under this Part.
(2) Nothing done, or authorised to be done, by
the ESC in acting under subsection (1)--
10 (a) constitutes a breach of, or default
under, an Act or other law; or
(b) constitutes a breach of, or default
under, a contract, agreement,
understanding or undertaking; or
15 (c) constitutes a breach of a duty of
confidence (whether arising by
contract, in equity or by custom) or in
any other way; or
(d) constitutes a civil or criminal wrong; or
20 (e) terminates an agreement or obligation
or fulfils any condition that allows a
person to terminate an agreement or
obligation, or gives rise to any other
right or remedy; or
25 (f) releases a surety or any other obligee
wholly or in part from an obligation.
29 Appeals against AER determinations
(1) This section applies if the AER, in exercise
or performance, or purported exercise or
30 performance, of a relevant regulatory
function or power conferred on it under
section 23, makes a determination (an AER
determination) that--
561046B.I-30/10/2007 18 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
s. 6
(a) revokes and substitutes the 20062010
distribution pricing determination or a
subsequent determination applying to
charges for connection to, and the use
5 of, distribution systems in Victoria; or
(b) amends--
(i) the 20062010 distribution pricing
determination; or
(ii) a subsequent determination
10 applying to charges for connection
to, and the use of, distribution
systems in Victoria.
(2) Sections 55 to 59 and section 62 of the
Essential Services Commission Act 2001
15 apply to an AER determination as if--
(a) a reference in those sections to a
determination of the Commission were
a reference to the AER determination;
and
20 (b) a reference to the Commission were a
reference to the AER.".
6 Statute law revision
In section 11(2) of the National Electricity
(Victoria) Act 2005, in the definition of
25 VENCorp, for "established" substitute
"continued".
7 Repeal of Act
This Act is repealed on 1 January 2010.
561046B.I-30/10/2007 19 BILL LA INTRODUCTION 30/10/2007
National Electricity (Victoria) Amendment Bill 2007
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
561046B.I-30/10/2007 20 BILL LA INTRODUCTION 30/10/2007
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