EXPLANATORY STATEMENT

Select Legislative Instrument 2005 No. 145

Issued by authority of the Parliamentary Secretary to the Treasurer

Trade Practices Act 1974

 

Trade Practices Amendment Regulations 2005 (No. 2)

This explanatory statement relates to the Trade Practices Amendment Regulations 2005 (No. 2) and is made for the purposes of the Legislative Instruments Act 2003.

Section 172 of the Trade Practices Act 1974 (the Act) provides that the Governor‑General may make regulations, not inconsistent with the Act, prescribing all matters that are required or permitted by the Act to be prescribed or are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 44ZZAA of the Act provides that an industry body may submit an industry access code to the Australian Competition and Consumer Commission (ACCC). Under subsection 44ZZAA(8), industry body is defined to mean a body or association prescribed by the regulations for the purposes of that section.  By an amendment made by the Trade Practices Amendment (Australian Energy Market) Act 2004, which commenced operation on 23 May 2005, ‘association’ includes a body or association established by a law of a state or territory.

Subregulation 6J(2) of the Trade Practices Regulations 1974 (the Principal Regulations) refers to the National Electricity Code Administrator Limited (NECA) as a prescribed industry body. 

The purpose of the Regulations is to add a reference in subregulation 6J(3) to the Australian Energy Market Commission (AEMC) as being a prescribed industry body for the purposes of subsection 44ZZAA(8) of the Act.

The AEMC is a new statutory commission established under section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia, as defined in subsection 4(1) of the Act.  The AEMC will make rules in relation to the electricity and gas markets, including rules relating to access arrangements. The AEMC is taking over the rule making functions previously exercised by NECA.

Details of the Regulations are set out in the Attachment.

The Trade Practices Amendment Regulations 2005 (No. 2) commenced on the day after they were registered.

The Trade Practices Amendment Regulations 2005 (No. 2) reflects reforms being made to the National Electricity Law (which is the Schedule to the National Electricity (South Australia) Act 1996 of South Australia).  Industry has been consulted extensively on these reforms.  Given this, no separate consultation on the Trade Practices Amendment Regulations 2005 (No. 2) was necessary.

ATTACHMENT

 

Details of the Trade Practices Amendment Regulations 2005 (No. 2)

 

 

Regulation 1 – Name of Regulations

 

This regulation provides that the title of the Regulations is the Trade Practices Amendment Regulations 2005 (No. 2)

 

Regulation 2 – Commencement

 

This regulation provides for the Regulations to commence on the day after they are registered.

 

Regulation 3 – Amendment of Trade Practices Regulations 1974

 

This regulation provides that the Trade Practices Regulations 1974 (the Principal Regulations) are amended as set out in Schedule 1.

 

Schedule 1 – Amendments

 

Item [1] Subregulation 6J(3)

Subregulation 6J(2) of the Principal Regulations provides that the National Electricity Code Administrator Limited is a prescribed industry body for the purposes of subsection 44AAZZ(8) of the Act.  This item adds the Australian Energy Market Commission as a prescribed industry body also for that purpose.