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This is a Bill, not an Act. For current law, see the Acts databases.


ENERGY LEGISLATION AMENDMENT (RETAIL ELECTRICITY AND GAS PRICING) BILL 2015





                                     New South Wales




Energy Legislation Amendment (Retail
Electricity and Gas Pricing) Bill 2015

Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill
The objects of this Bill are as follows:
(a) to amend the Electricity Supply Act 1995 and the Electricity Supply (General)
      Regulation 2014 to update references and remove provisions as a consequence of the
      deregulation of retail electricity prices,
(b) to provide for retail gas pricing order provisions to be retained and revived in the Gas
      Supply Act 1996,
(c) on a future date to be proclaimed, to amend the Gas Supply Act 1996 to remove provisions
      authorising regulation of retail gas prices,
(d) to make other consequential amendments.

Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of all of the amendments made by the proposed Act,
other than the amendments relating to retail gas price deregulation, on the date of assent to the
proposed Act. The proposed amendments relating to retail gas price deregulation contained in
proposed Schedule 6 will commence on a day or days to be appointed by proclamation.




b2015-075.d11
Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Explanatory note



Schedule 1              Amendment of National Energy Retail Law
                        (Adoption) Act 2012 No 37
Schedule 1 updates a reference to voluntary pricing agreements for retail gas prices for regulated
customers.

Schedule 2              Amendment of National Energy Retail Law
                        (Adoption) Regulation 2013
Schedule 2 [1] updates a reference to former regulated offer customers.
Schedule 2 [2] and [3] update references to voluntary pricing agreements for retail gas prices for
regulated offer customers.
Schedule 2 [4] makes it clear that transitional provisions relating to regulated offer customers only
apply to former regulated offer customers for the supply of electricity.

Schedule 3              Amendment of Electricity Supply Act 1995 No 94
Schedule 3 [1]-[4], [21], [23] and [25] change references to certain customers who participate in
the solar bonus scheme so as to reflect the removal of the category of regulated offer customers
from the National Law. Schedule 3 [22] makes a consequential amendment.
Schedule 3 [5] and [6] omit provisions which enable the Independent Pricing and Regulatory
Tribunal (the Tribunal) to investigate and report on and determine regulated retail tariffs or
regulated retail charges for electricity. The proposed amendments are consequential on the
removal of regulated offer prices for electricity from the National Law in 2014.
Schedule 3 [7]-[10] and [26] make consequential amendments.
Schedule 3 [11] removes from the Tribunal its functions relating to monitoring regulated offer
prices for electricity and also makes a statute law revision amendment to insert a reference to
network operators consistent with other amendments made by the Electricity Network Assets
(Authorised Transactions) Act 2015. Schedule 3 [13] and [14] make consequential amendments.
Schedule 3 [12] omits a provision that requires the Minister to provide information to the Tribunal
in relation to compliance with Tribunal determinations about regulated offer prices.
Schedule 3 [15] omits a requirement for the Tribunal to report on compliance with Tribunal
determinations about regulated offer prices.
Schedule 3 [16]-[20] make amendments to provisions relating to the energy ombudsman scheme
consequential on the removal of electricity customers as regulated offer customers from the
National Law.
Schedule 3 [24] inserts savings and transitional provisions.

Schedule 4              Amendment of Electricity Supply (General)
                        Regulation 2014
Schedule 4 [1] updates a reference to pricing agreements for retail gas prices for regulated offer
customers.
Schedule 4 [2] and [3] remove references to regulated offer customers.
Schedule 4 [4] is consequential on the amendment made by Schedule 3 [9].

Schedule 5              Amendment of Gas Supply Act 1996 No 38
Schedule 5 [1] omits a provision which provided for gas pricing order provisions to cease to have
effect on 30 June 2013.


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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Explanatory note



Schedule 5 [2] changes a reference to arrangements relating to gas pricing so that the
arrangements will be known as voluntary pricing agreements.
Schedule 5 [3] revives the gas pricing order provisions as if they had not ceased to have effect.
No gas pricing orders have been made under the provisions.

Schedule 6              Amendments relating to retail gas price
                        deregulation
6.1 Gas Supply Act 1996 No 38
Schedule 6.1 [1] omits a reference to regulated offer customers in connection with conditions
relating to the energy ombudsman scheme that are imposed on gas reticulators' authorisations.
Schedule 6.1 [2] omits provisions that enable the Tribunal to establish a pricing mechanism (gas
pricing orders) to regulate retail gas prices for regulated offer customers.
Schedule 6.1 [3] omits provisions which enable the Tribunal to monitor and report on compliance
by retailers with gas pricing orders or voluntary transitional pricing arrangements for gas.
Schedule 6.1 [4] and [6] make consequential amendments.
Schedule 6.1 [5] inserts savings and transitional provisions.

6.2 Electricity Supply Act 1995 No 94
Schedule 6.2 [1], [2], [4]-[7] and [10] omit references to disputes or complaints concerning
regulated offer customers to whom gas is supplied from provisions relating to matters that an
energy ombudsman scheme may deal with. Schedule 6.2 [3], [8] and [9] make consequential
amendments.




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                                                                                First print




                                 New South Wales




Energy Legislation Amendment (Retail
Electricity and Gas Pricing) Bill 2015
Contents
                                                                                       Page


              1   Name of Act                                                            2
              2   Commencement                                                           2
     Schedule 1   Amendment of National Energy Retail Law (Adoption) Act 2012 No 37      3
     Schedule 2   Amendment of National Energy Retail Law (Adoption) Regulation 2013     4
     Schedule 3   Amendment of Electricity Supply Act 1995 No 94                         5
     Schedule 4   Amendment of Electricity Supply (General) Regulation 2014              8
     Schedule 5   Amendment of Gas Supply Act 1996 No 38                                 9
     Schedule 6   Amendments relating to retail gas price deregulation                  10




b2015-075.d11
                                    New South Wales




Energy Legislation Amendment (Retail
Electricity and Gas Pricing) Bill 2015

No     , 2015


A Bill for
An Act to amend energy legislation with respect to retail energy pricing; and for other purposes.
Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]




The Legislature of New South Wales enacts:                                                         1

  1   Name of Act                                                                                  2
               This Act is the Energy Legislation Amendment (Retail Electricity and Gas Pricing)   3
               Act 2015.                                                                           4

  2   Commencement                                                                                 5
         (1)   This Act commences on the date of assent to this Act, except as provided by         6
               subsection (2).                                                                     7
         (2)   Schedule 6 commences on a day or days to be appointed by proclamation.              8




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 1 Amendment of National Energy Retail Law (Adoption) Act 2012 No 37



Schedule 1              Amendment of National Energy Retail Law                                1
                        (Adoption) Act 2012 No 37                                              2

      Schedule 1 New South Wales changes and additions to National Energy Retail Law           3
      Omit "voluntary transitional pricing arrangement" from section 37C (2), as inserted by   4
      item [17].                                                                               5

      Insert instead "voluntary pricing agreement".                                            6




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 2 Amendment of National Energy Retail Law (Adoption) Regulation 2013



Schedule 2              Amendment of National Energy Retail Law                                        1
                        (Adoption) Regulation 2013                                                     2

[1]   Clause 27 Credits under solar bonus scheme                                                       3
      Insert "former" before "regulated".                                                              4

[2]   Clause 44 Voluntary pricing agreements for gas                                                   5
      Omit "voluntary transitional pricing arrangement" from clause 44 (1).                            6

      Insert instead "voluntary pricing agreement".                                                    7

[3]   Clause 44 (2) and (3)                                                                            8
      Omit "arrangement" wherever occurring. Insert instead "agreement".                               9

[4]   Clause 52 References to regulated offer customers                                                10
      Insert "in relation to the supply of electricity" after "other instrument" wherever occurring.   11




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 3 Amendment of Electricity Supply Act 1995 No 94



Schedule 3              Amendment of Electricity Supply Act 1995 No 94                                1

 [1]   Section 15A Distribution network service providers to allow small renewable energy             2
       generators to feed-in to network                                                               3
       Omit "regulated offer customer" wherever occurring in section 15A (3).                         4

       Insert instead "former regulated offer customer or small customer".                            5

 [2]   Section 15A (5), (6) (a) and (8G)                                                              6
       Omit "regulated offer customer" wherever occurring.                                            7

       Insert instead "former regulated offer customer".                                              8

 [3]   Section 15A (7)                                                                                9
       Omit "regulated offer customers" wherever occurring.                                           10

       Insert instead "former regulated offer customers or small customers".                          11

 [4]   Section 15A (8H)                                                                               12
       Insert after section 15A (8G):                                                                 13

            (8H)    In this section:                                                                  14
                    former regulated offer customer means a person who was, immediately               15
                    before 1 July 2014, a regulated offer customer within the meaning of this Act.    16

 [5]   Section 43EA Referrals for determinations                                                      17
       Omit the section.                                                                              18

 [6]   Section 43EB Tribunal to determine regulated retail tariffs and regulated retail               19
       charges                                                                                        20
       Omit the section.                                                                              21

 [7]   Section 43EE Powers of Tribunal and conduct of special reviews                                 22
       Omit "regulated offer" from section 43EE (3).                                                  23

 [8]   Section 43EF Provision of information, documents and evidence                                  24
       Omit "regulated offer" from section 43EF (1).                                                  25

 [9]   Section 43EJ Provisions to cease to have effect                                                26
       Omit section 43EJ (1).                                                                         27

[10]   Section 43EJ (2)                                                                               28
       Omit "(other than sections 43EA-43EC)".                                                        29

[11]   Section 87 Licence auditing functions of Tribunal                                              30
       Omit section 87 (1). Insert instead:                                                           31

              (1)   The functions of the Tribunal under this Division are to monitor, and report to   32
                    the Minister on, the extent to which network operators comply, or fail to         33
                    comply, with the conditions imposed on licences held by them.                     34

[12]   Section 87 (2A)                                                                                35
       Omit the subsection.                                                                           36




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 3 Amendment of Electricity Supply Act 1995 No 94


[13]   Section 87A Cost of audit                                                                       1
       Omit "or retailer" wherever occurring in section 87A (1).                                       2

[14]   Section 87B Provision and maintenance of information, documents and evidence                    3
       Omit "or retailer" wherever occurring in section 87B (2).                                       4

[15]   Section 88 Annual reports                                                                       5
       Omit section 88 (1). Insert instead:                                                            6
              (1)   As soon as practicable after 30 June (but on or before 31 October) in each year,   7
                    the Tribunal must prepare and forward to the Minister a report on the extent to    8
                    which network operators have complied, or failed to comply, with the               9
                    conditions imposed on the licences held by them during the 12 months ending        10
                    on 30 June in that year.                                                           11

[16]   Section 96A Review of certain decisions under energy ombudsman scheme                           12
       Omit section 96A (7). Insert instead:                                                           13

              (7)   In this section:                                                                   14
                    regulated offer customer has the same meaning as in the Gas Supply Act 1996.       15
                    small customer includes a small customer within the meaning of the Gas             16
                    Supply Act 1996.                                                                   17

[17]   Section 96B Energy ombudsman scheme                                                             18
       Omit "or regulated offer customers" from section 96B (1A) (c).                                  19

[18]   Section 96B (1A) (e)                                                                            20
       Omit the paragraph. Insert instead:                                                             21
                    (e) without limiting paragraph (d), disputes and complaints between                22
                         regulated offer customers and retailers or reticulators relating to           23
                         regulated offer prices or pricing agreements under the Gas Supply Act         24
                         1996 or the National Energy Retail Law (NSW),                                 25

[19]   Section 96B (8)                                                                                 26
       Omit the subsection. Insert instead:                                                            27

              (8)   In subsections (2) and (5):                                                        28

                    regulated offer customer has the same meaning as in the Gas Supply Act 1996.       29

                    retailer includes a regulated offer retailer or a reticulator within the meaning   30
                    of the Gas Supply Act 1996.                                                        31

                    small customer includes a small customer within the meaning of the Gas             32
                    Supply Act 1996.                                                                   33

[20]   Section 96C Licence conditions relating to approved energy ombudsman scheme                     34
       Omit "or regulated offer customer" from section 96C (b).                                        35

[21]   Section 179A Compensation not payable                                                           36
       Insert "former" before "regulated offer" in section 179A (1A) (d).                              37

[22]   Section 179A (1A) (d)                                                                           38
       Insert "within the meaning of section 15A" after "complying generators".                        39




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 3 Amendment of Electricity Supply Act 1995 No 94


[23]   Section 195 Review of solar bonus scheme by Minister                                            1
       Insert "former" before "regulated offer" in section 195 (1).                                    2

[24]   Schedule 6 Savings, transitional and other provisions                                           3
       Insert at the end of the Schedule with appropriate Part and clause numbering:                   4


       Part         Provisions consequent on enactment of Energy                                       5
                    Legislation Amendment (Retail Electricity and Gas                                  6
                    Pricing) Act 2015                                                                  7

              Definition                                                                               8
                    In this Part:                                                                      9

                    amending Act means the Energy Legislation Amendment (Retail Electricity            10
                    and Gas Pricing) Act 2015.                                                         11

              Licence auditing                                                                         12
                    The Tribunal is to continue to carry out its functions under sections 87 (1) (b)   13
                    and 88 (1) (b), as in force before the repeal of those paragraphs by the           14
                    amending Act, in respect of any period before those repeals and this Act           15
                    applies to those functions as if the amending Act had not commenced.               16

              Review of decisions                                                                      17
              (1)   A person who was a regulated offer customer for the supply of electricity          18
                    immediately before 1 July 2014 may make an application under section 96A           19
                    in respect of any decision made before that day for which an application could     20
                    have been made under an energy ombudsman scheme before that day.                   21
                    Section 96A continues to apply to any such application.                            22

              (2)   The provisions of an energy ombudsman scheme approved under section 96B            23
                    and applicable to regulated offer customers for the supply of electricity          24
                    immediately before 1 July 2014 continue to apply to a dispute or complaint         25
                    between the regulated offer customer and a retailer about a matter that            26
                    occurred before that day.                                                          27

[25]   Dictionary                                                                                      28
       Omit "regulated offer" from paragraph (a1) of the definition of distribution system.            29

       Insert instead "former regulated offer customers or small".                                     30

[26]   Dictionary, definitions of "regulated retail charge" and "regulated retail tariff"              31
       Omit the definitions.                                                                           32




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 4 Amendment of Electricity Supply (General) Regulation 2014



Schedule 4              Amendment of Electricity Supply (General)                     1
                        Regulation 2014                                               2

[1]   Clause 11 Persons who may apply to energy ombudsman                             3
      Omit "regulated pricing arrangement under the Act," from clause 11 (1) (d).     4
      Insert instead "regulated pricing agreement under".                             5

[2]   Clause 61 Reporting and provision of information                                6
      Omit "regulated offer customer or other" from clause 61 (8) (d).                7

[3]   Clause 65 Saving of rights of solar bonus scheme applicants who applied for     8
      connection to distribution network before 29/4/2011 and were connected on or    9
      before 30/6/2012                                                                10
      Omit "regulated offer customer or other" from clause 65 (2).                    11

[4]   Clause 71 Date on which Division 5 of Part 4 of the Act ceases to have effect   12
      Omit "section 43EJ (1) and (2)". Insert instead "section 43EJ (2)".             13




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 5 Amendment of Gas Supply Act 1996 No 38



Schedule 5              Amendment of Gas Supply Act 1996 No 38                                      1

[1]   Section 28A Division to cease to have effect                                                  2
      Omit the section.                                                                             3

[2]   Section 75A Regulatory functions of Tribunal                                                  4
      Omit "voluntary transitional pricing arrangement" wherever occurring in section 75A (3A),     5
      (3B) and (3C) (b).                                                                            6

      Insert instead "voluntary pricing agreement".                                                 7

[3]   Schedule 2 Savings, transitional and other provisions                                         8
      Insert at the end of the Schedule with appropriate Part and clause numbering:                 9


      Part          Provision consequent on enactment of Energy                                     10
                    Legislation Amendment (Retail Electricity and Gas                               11
                    Pricing) Act 2015                                                               12

             Revival of gas pricing orders provisions                                               13
                    Division 3 of Part 2 of this Act (other than section 28A), as in force          14
                    immediately before 30 June 2013, has effect on and from the date of assent to   15
                    the Energy Legislation Amendment (Retail Electricity and Gas Pricing) Act       16
                    2015 as if section 28A (1) as then in force had not been enacted.               17




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 6 Amendments relating to retail gas price deregulation



Schedule 6              Amendments relating to retail gas price                                          1
                        deregulation                                                                     2

6.1 Gas Supply Act 1996 No 38                                                                            3

[1]   Section 11A Authorisation conditions relating to energy ombudsman scheme                           4
      Omit "or a regulated offer customer" from section 11A (1) (b).                                     5

[2]   Part 2, Division 3 Gas pricing orders                                                              6
      Omit the Division.                                                                                 7

[3]   Section 75A Regulatory functions of Tribunal                                                       8
      Omit section 75A (3A)-(3C). Insert instead:                                                        9

            (3C)    As soon as practicable after 30 June (but on or before 31 October) in each year,     10
                    the Tribunal must prepare and forward to the Minister a report on the extent to      11
                    which holders of authorisations or licences have complied, or failed to comply,      12
                    with the conditions imposed on the authorisations or licences held by them           13
                    during the 12 months ending on 30 June in that year.                                 14

[4]   Section 83 Regulations                                                                             15
      Omit "(other than fees, charges and payments of the kind for which orders may be made              16
      under section 27)" from section 83 (2) (l).                                                        17

[5]   Schedule 2 Savings, transitional and other provisions                                              18
      Insert at the end of the Schedule with appropriate Part and clause numbering:                      19


      Part          Further provisions consequent on enactment of                                        20
                    Energy Legislation Amendment (Retail Electricity                                     21
                    and Gas Pricing) Act 2015                                                            22

             Definition                                                                                  23
                    In this Part:                                                                        24

                    amending Act means the Energy Legislation Amendment (Retail Electricity              25
                    and Gas Pricing) Act 2015.                                                           26

             Licence auditing                                                                            27
                    The Tribunal is to continue to carry out its functions under section 75A (3A),       28
                    as in force before the repeal of that subsection by the amending Act, in respect     29
                    of any period before that repeal and this Act applies to those functions as if the   30
                    amending Act had not commenced.                                                      31

             Review of decisions                                                                         32
              (1)   A person who was a regulated offer customer for the supply of gas                    33
                    immediately before the repeal of Division 3 of Part 2 of this Act by the             34
                    amending Act may make an application under section 96A of the Electricity            35
                    Supply Act 1995 in respect of any decision made before that repeal for which         36
                    an application could have been made under an energy ombudsman scheme                 37
                    before that repeal. Section 96A of that Act continues to apply to any such           38
                    application.                                                                         39




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Energy Legislation Amendment (Retail Electricity and Gas Pricing) Bill 2015 [NSW]
Schedule 6 Amendments relating to retail gas price deregulation



              (2)   The provisions of an energy ombudsman scheme approved under section 96B          1
                    of the Electricity Supply Act 1995 and applicable to regulated offer customers   2
                    for the supply of gas immediately before that repeal continue to apply to a      3
                    dispute or complaint between the regulated offer customer and a retailer about   4
                    a matter that occurred before that repeal.                                       5

 [6]   Dictionary                                                                                    6
       Omit the definition of gas pricing order.                                                     7

6.2 Electricity Supply Act 1995 No 94                                                                8

 [1]   Section 96A Review of certain decisions under energy ombudsman scheme                         9
       Omit "or regulated offer customer" from section 96A (1).                                      10

 [2]   Section 96A (3)                                                                               11
       Omit "or regulated offer customers".                                                          12

 [3]   Section 96A (7)                                                                               13
       Omit the definition of regulated offer customer.                                              14

 [4]   Section 96B Energy ombudsman scheme                                                           15
       Omit "or regulated offer customers" from section 96B (1A) (d).                                16

 [5]   Section 96B (1A) (e)                                                                          17
       Omit the paragraph.                                                                           18

 [6]   Section 96B (2) (d) and (g)                                                                   19
       Omit ", regulated offer customers" wherever occurring.                                        20

 [7]   Section 96B (2) (f)                                                                           21
       Omit "and regulated offer customers".                                                         22

 [8]   Section 96B (8)                                                                               23
       Omit the definition of regulated offer customer.                                              24

 [9]   Section 96B (8)                                                                               25
       Omit "a regulated offer retailer or" from the definition of retailer.                         26

[10]   Section 96D Obligations of retailers under energy ombudsman scheme                            27
       Omit "or regulated offer customer" from section 96D (1) (b).                                  28




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