New South Wales Consolidated Acts

ELECTRICITY NETWORK ASSETS (AUTHORISED TRANSACTIONS) ACT 2015 - SECT 8

8 Electricity price guarantee

(1) The Treasurer must ensure that an authorised network operator of a transacted distribution system or transacted transmission system provides a guarantee (its
"electricity price guarantee" ) to the effect that--

(a) the authorised network operator's total network charges for the financial year ending 30 June 2019 will be lower than the network operator's total network charges for the financial year ending 30 June 2014, and

(b) the authorised network operator will promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to price, quality, safety, reliability and security of supply of electricity, and

(c) the authorised network operator will comply with any Efficiency Benefit Sharing Scheme developed by the AER for the sharing of efficiency gains and losses between network operators and their customers that is applicable to the network operator.

(2) The Treasurer is to request the Price Commissioner to provide the following reports--

(a) a report, for each proposed authorised transaction, as to whether the amount of the private sector investment for the purpose of acquiring an interest in electricity network assets pursuant to the authorised transaction (including costs incurred for that purpose) is likely to result in an increase in network charges,

(b) an annual report, for each completed authorised transaction, on compliance by the authorised network operator with its obligations under its electricity price guarantee.

(3) A public sector agency must comply with any reasonable request by the Price Commissioner that the agency provide information to the Price Commissioner for the purposes of reports under this section (with any dispute as to the reasonableness of a request to be decided by the Secretary of the Cabinet Office).

(4) The Price Commissioner is not subject to control or direction by or on behalf of the Government in connection with any report of the Price Commissioner.

(5) An authorised network operator must within 2 months after the end of each financial year provide to the Price Commissioner such information as the Price Commissioner may reasonably require to enable the Price Commissioner to report on compliance by the authorised network operator with its obligations under its electricity price guarantee.

(6) In this section--

"network charges" means revenue collected by a network operator in respect of regulated services provided by the network operator.

"Price Commissioner" means the person engaged by the Secretary of the Cabinet Office as a consultant to provide services as the NSW Electricity Price Commissioner.

"regulated services" means the following direct control network services (within the meaning of the National Electricity (NSW) Law )--

(a) a standard control service or prescribed transmission service,

(b) any other service prescribed by the regulations.

"total network charges" for a period means the total revenue collected by a network operator at any time (whether or not during the period concerned) in respect of regulated services provided by the network operator during that period.