Australian Capital Territory Numbered Acts Australian Capital Territory Numbered Actsafter section 20, insert
Division 4.2 Passing on reasonable costs of FiT support payments
20A ACT electricity distributor may pass on reasonable costs
(1) The ACT electricity distributor may pass on to electricity retailers the distributor's costs in meeting its obligations under this Act—
(a) to make FiT support payments; and
(b) to administer the FiT support payments scheme, including the cost of complying with sections 21 and 21A.
(2) In a financial year, the costs the ACT electricity distributor may pass on to electricity retailers under subsection (1) must not exceed the reasonable costs determined under section 20C for that financial year.
Note Over or under recovery of costs by the ACT electricity distributor must be considered by the Minister in subsequent financial year determinations of reasonable costs—see s 20C (2) (a) (ii).
(3) In this section:
"electricity retailer" means a NERL retailer or a NERL exempt seller to whom the ACT electricity distributor supplies electricity.
"NERL exempt seller"—see the Utilities Act 2000
, section 75A.
"NERL retailer"—see the Utilities Act 2000
, section 75.
20B Reasonable costs—application for determination
(1) The ACT electricity distributor must, in each financial year (the current financial year ) apply to the Minister for a determination of the reasonable costs (a reasonable costs determination ) for the next financial year (the upcoming financial year ) of the distributor meeting its obligations under this Act—
(a) to make FiT support payments; and
(b) to administer the FiT support payments scheme, including the cost of complying with sections 21 and 21A.
(2) The application must be made no later than 6 months after the beginning of the current financial year.
(3) The application must include—
(a) in relation to the financial year immediately preceding the current financial year—
(i) the total amount of FiT support payments paid by the ACT electricity distributor; and
(ii) the costs incurred by the ACT electricity distributor in administering the FiT support payments, including the cost of complying with sections 21 and 21A; and
(iii) the total amount of costs mentioned in section 20A (1) that the ACT electricity distributor recovered from electricity retailers; and
(b) in relation to the upcoming financial year and the following 4 financial years—
(i) the total amount of FiT support payments that the ACT electricity distributor estimates it will pay; and
(ii) the estimated cost to the ACT electricity distributor in administering the FiT support payments, including the cost of complying with sections 21 and 21A; and
(c) if the Minister has determined a methodology under section 20D (the "determined methodology")—the manner in which the ACT electricity distributor has applied the determined methodology in estimating the costs under paragraph (b) (i); and
(d) if the Minister has not determined a methodology under section 20D—the methodology applied by the ACT electricity distributor in estimating the costs under paragraph (b) (i).
(4) If the application does not contain sufficient information for the Minister to make a decision the Minister may, within 1 month of receiving the application, require the ACT electricity distributor to provide further information (the required information ).
(5) The ACT electricity distributor must provide the required information to the Minister within 10 working days after the day the Minister requests the information.
20C Reasonable costs—determination
(1) The Minister must make a reasonable costs determination for an upcoming financial year no later than 2 months after the day the ACT electricity distributor applies to the Minister under section 20B (1).
(2) In making a reasonable costs determination, the Minister must consider—
(a) the information provided by the ACT electricity distributor under section 20B, including—
(i) the application of the methodology mentioned in section 20B (3) (c); and
(ii) the difference between the amounts mentioned in section 20B (3) (a) (i) and (ii) and the amount mentioned in section 20B (3) (a) (iii); and
(b) the need to ensure that neither ACT electricity consumers nor the ACT electricity distributor are unreasonably financially disadvantaged by the determination.
(3) The Minister may determine the reasonable costs to be—
(a) the amounts mentioned in section 20B (3) (b) set out in the ACT electricity distributor's application; or
(b) another amount.
(4) If the Minister does not make a reasonable costs determination within the required time under subsection (1), the reasonable costs are taken to be the amounts mentioned in section 20B (3) (b) set out in the ACT electricity distributor's application.
(5) A determination under subsection (1) is a notifiable instrument.
Note A notifiable instrument must be notified under the Legislation Act
.
20D Reasonable costs—methodology
(1) The Minister may determine the methodology to be applied by the ACT electricity distributor in estimating the cost of the FiT support payment.
(2) The Minister must consult the ACT electricity distributor before making a determination under subsection (1).
(3) A determination under subsection (1) is a notifiable instrument.
Note A notifiable instrument must be notified under the Legislation Act
.