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This is a Bill, not an Act. For current law, see the Acts databases.
South Australia
National Electricity (South Australia) (Retailer
Reliability Obligation) Amendment Bill 2019
A BILL FOR
An Act to amend the
National
Electricity (South Australia) Act 1996
.
Contents
Part 2—Amendment
of National Electricity (South Australia) Act 1996
Part 7A—Retailer Reliability
Obligation—South Australian modifications
19AModifications of
Law in this jurisdiction—Retailer Reliability Obligation
19BState Minister
may make T-3 reliability instrument
Part 3—Amendment
of National Electricity Law
5Amendment of
section 2—Definitions
6Amendment of section 2AA—Meaning of
civil penalty provision and conduct provision
Part 2A—Retailer Reliability
Obligation
14DMeaning of
liable entity for a region
14EProcess for non-liable persons
to opt in to reliability obligations
Division 2—Reliability forecasts
and instruments
14FAnnual forecast for reliability
gaps
14HRules must
provide timetable for reliability forecasts, requests and
instruments
14IAEMO must request reliability
instrument
14JAEMO may correct request for
reliability instrument
14KAER may make reliability
instrument for a region
14LReliability
instrument has force of law
14MFailure to
comply with consultation obligation does not affect validity
Division 3—Reliability
obligations
14OMeaning of qualifying contract
and net contract position
14PObligation to report net
contract position
14QAdjustment of
net contract position after contract position day
14RObligation to have contracted
sufficiently for one-in-two year peak demand forecast
14SObligation to maintain net
contract position
Division 4—AEMO as procurer of last
resort
14TAEMO may recover
costs for procurer of last resort function
8Amendment of section 15—Functions
and powers of AER
9Insertion of Part 3 Division 1C
Division 1C—Retailer Reliability
Obligation—AER compliance regime
18ZAObligation of AER to monitor
compliance
18ZBObligation of regulated
entities to establish arrangements to monitor compliance
18ZCObligation of
regulated entities to keep records
18ZDObligation of regulated
entities to provide information and data about compliance
18ZFCompliance audits by regulated
entities
18ZGCarrying out
compliance audit
18ZIReliability Compliance
Procedures and Guidelines
10Amendment of section 34—Rule making
powers
67AConduct in
breach of reliability obligation civil penalty provision
12Amendment of section 72—Obligations
under Rules to make payments
90EASouth
Australian Minister to make initial Rules relating to Retailer Reliability
Obligation
14Amendment of Schedule 1—Subject matter
for the National Electricity Rules
15Amendment of Schedule 2—Miscellaneous
provisions relating to interpretation
The Parliament of South Australia enacts as
follows:
This Act may be cited as the National Electricity (South Australia)
(Retailer Reliability Obligation) Amendment Act 2019.
This Act will come into operation on a day to be fixed by
proclamation.
In this Act—
(a) a provision in
Part 2
amends the
National
Electricity (South Australia) Act 1996
; and
(b) a provision in
Part 3
amends the National Electricity Law set out in the Schedule to the
National
Electricity (South Australia) Act 1996
.
Part 2—Amendment
of National Electricity (South Australia)
Act 1996
After Part 7 insert:
Part 7A—Retailer Reliability Obligation—South
Australian modifications
19A—Modifications of Law in this
jurisdiction—Retailer Reliability Obligation
(1) Part 2A of the National Electricity (South Australia) Law
applies—
(a) as if, in section 14C (Definitions), the following
definition were inserted after the definition of reporting
day:
South Australian Minister means the Minister in right of the
Crown of South Australia administering Part 2 of the
National
Electricity (South Australia) Act 1996
of South Australia;
(b) as if, in section 14C (Definitions), the definition of
T-3 reliability instrument were deleted and the following
definition substituted:
T-3 reliability instrument means—
(a) a reliability instrument for a forecast reliability gap made by the
AER under section 14K that relates to the T-3 cut-off day for the forecast
reliability gap; or
(b) a reliability instrument made by the South Australian Minister under
section 19B of the
National
Electricity (South Australia) Act 1996
;
(c) as if, in section 14H (Rules must provide timetable for reliability
forecasts, requests and instruments), the following subsection were inserted
after subsection (3):
(4) In addition, for subsection (2), in the case of a
T-3 reliability instrument made by the South Australian Minister, the way
prescribed may include the extent to which the reliability gap period and
trading intervals stated in a request for the AER to make a T-1 reliability
instrument must be the same as, or may be different to, any period or trading
intervals stated in the T-3 reliability instrument.
(d) as if, in section 14I(3) (AEMO must request reliability
instrument), the following text were inserted after "T-3 reliability
instrument":
or the South Australian Minister has made a related T-3 reliability
instrument under section 19B of the
National
Electricity (South Australia) Act 1996
(e) as if, in section 14K(1)(b) (AER may make reliability
instrument for a region), the following text were inserted after "T-3
reliability instrument":
or the South Australian Minister has made a related T-3 reliability
instrument under section 19B of the
National
Electricity (South Australia) Act 1996
19B—State Minister may make T-3 reliability
instrument
(1) Subject to this
section, the Minister may, by notice in the Gazette, make a T-3 reliability
instrument for the purposes of Part 2A of the National Electricity
(South Australia) Law.
(2) The Minister
may only make a T-3 reliability instrument under
subsection (1)
if it appears to the Minister, on reasonable grounds, that there is a real
risk that the supply of electricity to all or part of South Australia may be
disrupted to a significant degree on 1 or more occasions during a period
specified in the instrument.
(3) Before making a T-3 reliability instrument under
subsection (1)
, the Minister must consult with AEMO and the AER in relation to the
instrument the Minister proposes to make.
(4) A T-3 reliability instrument under
subsection (1)
must state—
(a) the region of the national electricity market (as determined under the
Rules) to which it applies (all or a part of which must be located in South
Australia); and
(b) the first and last days of the period referred to in
subsection (2)
; and
(c) the trading intervals, during the period referred to in
subsection (2)
, for which liable entities may be required to hold net contract positions
that are sufficient to meet their share of the one-in-two year peak demand
forecast for that period; and
(d) AEMO's one-in-two year peak demand forecast for the period referred to
in
subsection (2)
.
(5) A T-3
reliability instrument under
subsection (1)
takes effect from the date of publication in the Gazette.
(6) The Minister may, by subsequent notice in the Gazette, vary or revoke
a T-3 reliability instrument under
subsection (1)
.
(7) A T-3 reliability instrument under
subsection (1)
that specifies a period under
subsection (2)
that starts after the relevant day must be made by the Minister at least
3 years before the start of the specified period.
(8) A T-3 reliability instrument under
subsection (1)
that specifies a period under
subsection (2)
that starts before the relevant day must be made by the Minister at least
15 months before the start of the specified period.
(9) In this section—
commencement day means the day on which section 7 of the
National Electricity (South Australia) (Retailer Reliability Obligation)
Amendment Act 2019 comes into operation;
relevant day means the day that occurs 3 years after the
commencement day.
19C—Regulations
The Governor may, by regulation, modify the application of Rules made in
connection with Part 2A of the National Electricity (South Australia)
Law, or a provision of those Rules, insofar as they apply as part of the law
of South Australia.
Part 3—Amendment
of National Electricity
Law
5—Amendment
of section 2—Definitions
(1) Section 2(1)—after the definition of AER economic
regulatory function or power insert:
AER market liquidity obligation functions means the functions
conferred on the AER under section 15(1)(eba);
(2) Section 2(1), definition of civil penalty,
(a)—delete "rebidding civil penalty provision" and substitute:
civil penalty provision mentioned in paragraph (b) or (c)
(3) Section 2(1), definition of civil
penalty—after paragraph (b) insert:
or
(c) in the case of a breach of a reliability obligation civil penalty
provision—
(i) by a natural person for a breach that relates to a reliability gap
period—an amount not exceeding $1 000 000; and
(ii) by a body corporate—
(A) an amount not exceeding $1 000 000 for a breach that relates
to a reliability gap period; or
(B) an amount not exceeding $10 000 000 for a breach that
relates to a second or subsequent reliability gap period;
Note—
See section 67A for the purpose of determining the civil penalty for
particular reliability obligation civil penalty provisions.
(4) Section 2(1)—after the definition of jurisdictional
system security coordinator insert:
liable entity—see section 14D;
(5) Section 2(1)—after the definition of market
information notice insert:
market liquidity obligation means the obligation imposed by
Rules made under Schedule 1 item 6G and includes matters related to
the obligation;
(6) Section 2(1)—after the definition of relevant
court insert:
reliability obligation civil penalty provision—see
section 2AA(1a);
reliability obligations means the obligations that apply to a
liable entity under sections 14P(1) and (3) and 14R(2);
(7) Section 2(1)—after the definition of retailer
insert:
Retailer Reliability Obligation means—
(a) Part 2A of this Law; and
(b) the provisions of the Rules that relate to Part 2A of this
Law;
6—Amendment
of section 2AA—Meaning of civil penalty provision and conduct
provision
(1) Section 2AA(1)—after paragraph (b) insert
(ba) a reliability obligation civil penalty provision; or
(2) Section 2AA(1), table—after item relating to
"section 14B" insert:
Section 14P(1) and (3) |
Obligation to report net contract position |
Section 18ZC(1) and (2) |
Obligation of regulated entities to keep records |
Section 18ZD |
Obligation of regulated entities to provide information and data about
compliance |
Section 18ZF(1) and (3) |
Compliance audits by regulated entities |
(3) Section 2AA—after subsection (1) insert:
(1a) A reliability obligation civil penalty provision is
section 14R(2).
After Part 2 insert:
Part 2A—Retailer Reliability
Obligation
Division 1—General
14C—Definitions
In this Part—
contract position day—see
section 14K(4)(b)(i)
;
forecast reliability gap—see
section 14G(1)
;
forecast reliability gap period—see
section 14G(2)
;
net contract position—see
section 14O(3)
;
one-in-two year peak demand forecast, for a region during a
specified period, means the peak demand forecast in accordance with the
Rules—
(a) to occur for the region during the period; and
(b) where the likelihood is that the forecast amount will be exceeded once
in any two-year period;
peak demand, for a period in a region, means the maximum
electricity demanded, in megawatts, in the region during the period, determined
in accordance with the Rules;
region means a region of the national electricity market
determined under the Rules;
reliability gap period, in relation to a T-1 reliability
instrument, means the forecast reliability gap period stated in the
instrument;
reliability instrument means a T-3 reliability instrument or
a T-1 reliability instrument;
reporting day—see
section 14K(4)(b)(ii)
;
T-1 cut-off day—see
section 14G(4)
;
T-1 reliability instrument means a reliability instrument for
a forecast reliability gap made by the AER under
section 14K
that relates to the T-1 cut-off day for the forecast reliability
gap;
T-3 cut-off day—see
section 14G(3)
;
T-3 reliability instrument means a reliability instrument for
a forecast reliability gap made by the AER under
section 14K
that relates to the T-3 cut-off day for the forecast reliability
gap;
trading interval means a period prescribed by the Rules to be
a trading interval for the wholesale exchange;
wholesale exchange means the wholesale exchange for
electricity operated and administered by AEMO under this Law and the
Rules.
14D—Meaning of liable entity for a
region
(1) Each of the
following is a liable entity for a region:
(a) a person who is a
Registered participant mentioned in section 11(4)(a);
(b) a person mentioned in section 11(4)(b) prescribed by the Rules to
be a liable entity for the reliability obligations;
(c) another person who
has elected, under
section 14E
, to assume responsibility for the reliability obligations of a person
mentioned in
paragraph (a)
.
(2) However, a person mentioned in
subsection (1)(a)
is not a liable entity for a region—
(a) if the person is a Registered participant mentioned in
subsection (1)(a)
who is prescribed by the Rules not to be a liable entity for the
reliability obligations; or
(b) to the extent a person mentioned in
subsection (1)(c)
has elected to assume the person's responsibility for the reliability
obligations for the region.
14E—Process for non-liable persons to opt in to
reliability obligations
(1) This section applies to a person—
(a) if—
(i) the person purchases electricity supplied in a region from a liable
entity; and
(ii) the person's annual consumption of electricity is more than the
threshold prescribed by the Rules for this section; or
(b) prescribed by the Rules to be eligible to make an election under this
section.
(2) The person may
elect to assume all or some of the liable entity's responsibility for the
reliability obligations in relation to the electricity purchased for the period
stated in the election.
(3) An election under
subsection (2)
must—
(a) state the extent to which the person has elected to assume the liable
entity's responsibility; and
(b) be made in the manner, form and timeframes required by the
Rules.
Division 2—Reliability forecasts and
instruments
14F—Annual forecast for reliability
gaps
Each year, AEMO must—
(a) perform the functions stated in the Rules for the purposes of
forecasting for the occurrence of reliability gaps in future years;
and
(b) prepare and
publish, in the manner, form and timeframes required by the Rules, information
about the forecasting.
14G—Meaning of forecast reliability gap, forecast
reliability gap period, T-3 cut-off day and T-1 cut-off day
(1) A forecast
reliability gap occurs when the amount of electricity forecast for a
region, in accordance with the Rules, does not meet the reliability standard to
an extent that, in accordance with the Rules, is material.
(2) A forecast
reliability gap period is the period during which a forecast reliability
gap is forecast to occur.
(3) The T-3
cut-off day for a forecast reliability gap is the day that is
3 years before the day the forecast reliability gap period for the forecast
reliability gap starts.
(4) The T-1
cut-off day for a forecast reliability gap is the day that is
1 year before the day the forecast reliability gap period for the forecast
reliability gap starts.
(5) In this section—
reliability standard means the standard prescribed by the
Rules for the reliability of electricity for the national electricity
market.
14H—Rules must provide timetable for reliability
forecasts, requests and instruments
(1) The Rules must provide for timeframes for the following matters in
relation to a forecast reliability gap:
(a) the period, that
ends at least the stated number of days before the T-3 cut-off day and T-1
cut-off day, during which—
(i) AEMO must make a request under
section 14I
; and
(ii) the AER must decide whether to make a reliability instrument under
section 14K
;
(i) ending on or before the T-1 cut-off day, during which the contract
position day must be set; and
(ii) ending on or after the T-1 cut-off day, during which the reporting
day must be set;
(c) the periods that apply for the matters mentioned in
paragraph (a)
or
(b)
if AEMO corrects a request under
section 14J
.
(2) Also, the Rules
must provide for the way to determine whether a request for the AER to make a
T-1 reliability instrument under
section 14I
is related to a T-3 reliability instrument.
(3) For
subsection (2)
, the way prescribed may include the extent to which the reliability gap
period and trading intervals stated in a request for the AER to make a T-1
reliability instrument must be the same as, or may be different to, the forecast
reliability gap period and trading intervals stated in the T-3 reliability
instrument.
14I—AEMO must request reliability
instrument
(1) This section applies if—
(a) AEMO is satisfied a forecast reliability gap is forecast to occur in a
region; and
(b) AEMO has published the information about the forecast that AEMO is
required to publish under
section 14F(b)
.
(2) Subject to
subsection (3)
, AEMO must request the AER to consider making a reliability instrument for
the region in relation to the forecast reliability gap.
(3) AEMO must make a
request under
subsection (2)
for a T-1 reliability instrument for a region only if the AER has
made a related T-3 reliability instrument.
(4) A request under
subsection (2)
—
(a) is made by giving a written notice about the request to the AER;
and
(b) must be made within the period required by the Rules; and
(c) must state the
following information about the forecast reliability gap:
(i) the region in which the forecast reliability gap is forecast to
occur;
(ii) the first and last days of the forecast reliability gap
period;
(iii) for a request for a T-3 reliability instrument—the trading
intervals, during the forecast reliability gap period, for which liable entities
may be required to hold net contract positions that are sufficient to meet their
share of the one-in-two year peak demand forecast for the forecast reliability
gap period;
Example—
The trading intervals between 4pm and 8pm each weekday during the
forecast reliability gap.
(iv) for a request for a T-1 reliability instrument—the trading
intervals, during the forecast reliability gap period, for which liable entities
will be required to hold net contract positions that are sufficient to meet
their share of the one-in-two year peak demand forecast for the forecast
reliability gap period if the T-1 reliability instrument is made;
Example—
The trading intervals between 4pm and 8pm each weekday during the
forecast reliability gap.
(v) AEMO's one-in-two year peak demand forecast for the forecast
reliability gap period.
(5) A request under
subsection (2)
—
(a) may only apply to 1 forecast reliability gap period;
and
(b) may be made on more than 1 occasion in a year for different
forecast reliability gap periods in the same region or in different
regions.
14J—AEMO may correct request for reliability
instrument
(1) This section applies if a request under
section 14I
contains—
(a) a material miscalculation of figures; or
(b) a material mistake in the description of a person, period, thing or
matter referred to in the request; or
(c) a defect in form.
(2) AEMO may correct the request by giving a written notice about the
correction, and a correct request, to the AER.
14K—AER may make reliability instrument for a
region
(1) This section applies if—
(a) AEMO makes a request under
section 14I
in relation to a forecast reliability gap for a region; and
(b) where AEMO's request is for a T-1 reliability instrument for the
region, the AER has made a related T-3 reliability instrument for the
region.
(2) The AER must, within the period required by the Rules—
(a) consider the request; and
(b) decide whether or not to make a reliability instrument for the region
in relation to the forecast reliability gap.
(3) The AER may decide to make a reliability instrument
only—
(a) if the AER is satisfied—
(i) a forecast reliability gap is forecast, in accordance with the Rules,
to occur in the region; and
(ii) it is appropriate in the circumstances, having regard to the criteria
stated in the Rules, to make the reliability instrument; and
(b) for the region, forecast reliability gap period and trading intervals
as stated in AEMO's request, without modification.
(4) A reliability
instrument must state—
(a) the information mentioned in
section 14I(4)(c)
, as stated in AEMO's request; and
(b) for a T-1
reliability instrument—
(i) the day (the
contract position day) on which liable entities are required under
section 14R
to hold a sufficient net contract position for the reliability gap period;
and
(ii) the day (the
reporting day) on which liable entities must report their net
contract position as at the contract position day under
section 14P
.
(5) The reliability instrument takes effect when it is published on the
AER's website.
(6) The AER must publish its decision to make or refuse to make a
reliability instrument, and the reasons for the decision, on the AER's website
before—
(a) in the case of a T-3 reliability instrument— the T-3 cut-off day
or an earlier day prescribed by the Rules; or
(b) in the case of a T-1 reliability instrument— the T-1 cut-off day
or an earlier day prescribed by the Rules.
(7) If a request made under
section 14I
was corrected under
section 14J
, a reference in this section to the request is a reference to the request
as corrected.
14L—Reliability instrument has force of
law
(1) A reliability instrument has the force of law in this
jurisdiction.
(2) An Act of this jurisdiction regulating the making of subordinate
legislation does not apply to a reliability instrument.
14M—Failure to comply with consultation obligation
does not affect validity
(1) This section applies if the Rules require the AER to undertake stated
consultation before making a reliability instrument under
section 14K
.
(2) Failure to comply with the obligation does not invalidate or otherwise
affect a reliability instrument.
Division 3—Reliability
obligations
14N—Application of Division
(1) This Division applies to a person if—
(a) the AER made a T-1 reliability instrument for a forecast reliability
gap in a region; and
(b) the person is a liable entity for the region to which the instrument
applies; and
(c) the person is a liable entity on—
(i) the contract position day; or
(ii) in circumstances for which a later day is prescribed by the
Rules—the later day.
(2) In this Division—
(a) a reference to a matter is a reference to the matter for the region to
which the T-1 reliability instrument applies; and
(b) a reference to the reliability gap period is a reference to the
forecast reliability gap period stated in the T-1 reliability instrument;
and
(c) a reference to the stated trading intervals is a reference to the
trading intervals stated in the T-1 reliability instrument; and
(d) a reference to the contract position day or the reporting day is a
reference to the contract position day or reporting day stated in the T-1
reliability instrument.
14O—Meaning of qualifying contract and net contract
position
(1) A qualifying
contract of a liable entity is a contract or other arrangement to which
the liable entity is a party—
(i) is directly related to the purchase or sale, or price for the purchase
or sale, of electricity from the wholesale exchange during a stated period;
and
(ii) the liable entity entered into to manage its exposure in relation to
the volatility of the spot price; or
(b) of another type prescribed by the Rules to be a qualifying
contract.
(2) However, a qualifying contract does not include a contract or
arrangement mentioned in
subsection (1)(a)
that is prescribed by the Rules to be an excluded contract for the
reliability obligations.
(3) A liable entity's
net contract position during a particular period
is—
(a) the number of megawatts of electricity to which the liable entity's
qualifying contracts under
subsection (1)
relate for the period; and
(b) adjusted in accordance with the Rules to account for the likelihood
that, despite the qualifying contracts, the liable entity retains exposure in
relation to the volatility of the spot price during the period.
(4) In this section—
spot price means the price for electricity purchased from the
wholesale exchange in a region determined in accordance with the
Rules.
14P—Obligation to report net contract
position
(1) The liable entity
must give the AER a report about the liable entity's net contract position for
the stated trading intervals during the reliability gap period as at the
contract position day—
(a) that complies with
subsection (2)
; and
(b) on or before the reporting day stated in the T-1 reliability
instrument.
Note—
is a civil penalty provision: See the definition of "civil penalty
provision" in section 2AA(1).
(a) include the information required under the Rules; and
(b) be prepared and given in the manner and form required by the
Rules.
(3) The liable entity
must not provide information in a report the liable entity knows is false or
misleading in a material particular.
Note—
is a civil penalty provision: See the definition of "civil penalty
provision" in section 2AA(1).
14Q—Adjustment of net contract position after
contract position day
A liable entity may adjust the liable entity's net contract position for a
stated trading interval during a reliability gap period after the contract
position day for the purposes of
sections 14R
and
14S
in accordance with the Rules.
14R—Obligation to have contracted sufficiently for
one-in-two year peak demand forecast
(1) This section applies if the peak demand is more than the one-in-two
year peak demand forecast for the reliability gap period during a stated trading
interval in the reliability gap period.
(2) The liable entity
must comply with the obligation that the liable entity's net contract position
for the trading interval is not less than the liable entity's share of the
one-in-two year peak demand forecast for the trading interval determined in
accordance with the Rules.
Note—
is a reliability obligation civil penalty provision: See the definition of
"reliability obligation civil penalty provision" in
section 2AA(1a).
(3) For
subsection (2)
, the liable entity's net contract position for a trading interval
is—
(a) if the liable entity has adjusted its net contract position under the
Rules—the liable entity's net contract position for the trading interval
as at the day provided under the Rules; or
(b) otherwise—the liable entity's net contract position for the
trading interval as at the contract position day.
14S—Obligation to maintain net contract
position
The Rules may require a liable entity to maintain its net contract position
for the stated trading intervals in the reliability gap period during the period
that—
(a) starts on the contract position day; and
(b) ends when the reliability gap period ends.
Division 4—AEMO as procurer of last resort
14T—AEMO may recover costs for procurer of last
resort function
(1) The Rules may provide for a cost recovery scheme that allows AEMO to
recover the costs AEMO incurs as the procurer of last resort for a
region.
(2) AEMO is the procurer of last resort for a region if—
(a) a T-1 reliability instrument is made for a forecast reliability gap in
a region; and
(b) AEMO performs its function under the Rules of entering into contracts
to secure the availability of electricity reserves in relation to the
reliability gap period stated in the instrument in the region.
(3) The cost recovery scheme under the Rules may provide for AEMO to
recover the costs from the liable entities for the region who breach
section 14R(2)
or an obligation under the Rules mentioned in
section 14S
during the reliability gap period.
(4) However, a liable entity is not liable to more than
$100 000 000 under the cost recovery scheme in relation to a
reliability gap period in a region.
8—Amendment
of section 15—Functions and powers of AER
Section 15(1)—after paragraph (eb) insert:
(eba) to implement and administer the market liquidity obligation in
accordance with the Rules; and
9—Insertion
of Part 3 Division 1C
Part 3—after Division 1B insert:
Division 1C—Retailer Reliability
Obligation—AER compliance regime
18Z—Definitions
In this Division—
compliance audit—see
section 18ZE
or
18ZF
;
regulated entity—see
section 18ZA(2)
;
Reliability Compliance Procedures and Guidelines—see
section 18ZI
.
18ZA—Obligation of AER to monitor
compliance
(1) The AER must monitor compliance of regulated entities with the
Retailer Reliability Obligation.
(2) Each of the
following persons is a regulated entity for the purposes of this
Division:
(a) a liable entity;
(b) another person prescribed by the Rules.
18ZB—Obligation of regulated entities to establish
arrangements to monitor compliance
(1) A regulated entity must establish policies, systems and procedures to
enable it to efficiently and effectively monitor its compliance with the
Retailer Reliability Obligation.
(2) The policies, systems and procedures must be established and observed
in accordance with the Reliability Compliance Procedures and
Guidelines.
18ZC—Obligation of regulated entities to keep
records
(1) A regulated entity
must keep records of its activities that—
(a) allow the regulated entity to give accurate information and data
relating to its compliance with the Retailer Reliability Obligation;
and
(b) enable the AER to assess whether the regulated entity has complied
with its obligations under the Retailer Reliability Obligation; and
(c) comply with the requirements of
subsection (2)
and Rules made for the purposes of
subsection (3)
.
(2) The regulated
entity must keep the records for 5 years from the end of the year in which
the activities take place.
Note—
and
(2)
are civil penalty provisions: See the definition of civil penalty
provision in section 2AA(1).
(3) The Rules may state
requirements about the type and form of records that must be kept under
subsection (1)
.
18ZD—Obligation of regulated entities to provide
information and data about compliance
A regulated entity must give the AER, in the manner, form and timeframes
required by the Reliability Compliance Procedures and Guidelines, information
and data relating to the regulated entity's compliance with the Retailer
Reliability Obligation.
Note—
This section is a civil penalty provision: See the definition of
civil penalty provision in section 2AA(1).
18ZE—Compliance audits by AER
(1) The AER may carry out an audit (a compliance audit) of a
regulated entity's activities to assess the regulated entity's compliance with
the Retailer Reliability Obligation.
(2) Without limitation, a compliance audit may be carried out to assess a
regulated entity's compliance with the reliability obligations.
(3) The AER may carry out a compliance audit by arranging for a contractor
or another person to carry out the compliance audit on the AER's
behalf.
(4) The cost of carrying out a compliance audit of a regulated entity
under this section is—
(a) an amount determined under the Reliability Compliance Procedures and
Guidelines; and
(b) recoverable by the AER from the regulated entity.
18ZF—Compliance audits by regulated
entities
(1) If required by the
AER, a regulated entity must carry out an audit (a compliance
audit) of specified aspects of the entity's activities relating to the
entity's compliance with the Retailer Reliability Obligation.
(2) The regulated entity may carry out a compliance audit by arranging for
a contractor or another person to carry out the compliance audit on the entity's
behalf, but the entity remains responsible for the carrying out of the
compliance audit.
(3) A regulated entity
must give the AER the results of a compliance audit carried out under this
section within a period specified by the AER.
Note—
and
(3)
are civil penalty provisions: See the definition of civil penalty
provision in section 2AA(1).
18ZG—Carrying out compliance
audit
A compliance audit must be carried out in accordance with the Reliability
Compliance Procedures and Guidelines.
18ZH—Use of information
The AER may use any information or data given by a regulated entity under
section 18ZD
or
18ZF
, or obtained under
section 18ZE
, for the purposes of any of the functions and powers of the AER under
section 15 of this Law.
Note—
Otherwise, the AER is subject to Division 6 of this Part and
section 44AAF of the Competition and Consumer Act 2010 of the
Commonwealth in respect of the disclosure of confidential information it
receives.
18ZI—Reliability Compliance Procedures and
Guidelines
(1) The AER must make procedures and guidelines (the Reliability
Compliance Procedures and Guidelines) in accordance with the
consultation procedure provided for under the Rules.
(2) Without limitation, the Reliability Compliance Procedures and
Guidelines may provide guidance for regulated entities about the
following:
(a) compliance with the obligations under the Retailer Reliability
Obligation, including, for example—
(i) the reliability obligations; and
(ii) establishing policies, systems and procedures to monitor its
compliance under
section 18ZB
; and
(iii) the information and data about compliance required to be given to
the AER under
section 18ZD
;
(b) the carrying out of compliance audits, including the costs payable by
regulated entities;
(c) any additional matters that the AER intends to include in its
compliance reports.
10—Amendment
of section 34—Rule making powers
Section 34(1)—after paragraph (aa) insert:
(ab) any matter or thing related to, or necessary or expedient for, the
purposes of the Retailer Reliability Obligation; and
After section 67 insert:
67A—Conduct in breach of reliability obligation
civil penalty provision
(1) This section applies for the purpose of determining the civil penalty
for a breach of the reliability obligation civil penalty provision.
(2) If the conduct of a person constitutes a breach of the reliability
obligation civil penalty provision on 2 or more occasions in relation to
the same reliability gap period, proceedings may be instituted under this Law
against the person in relation to the breach of the provision on any 1 or
more of those occasions.
(3) However, the person is not liable to more than 1 civil penalty
under this Law in respect of a breach of the reliability obligation civil
penalty provision for 1 reliability gap period.
12—Amendment
of section 72—Obligations under Rules to make
payments
(1) Section 72(1)(a)—delete "Registered participant" wherever
occurring and substitute in each case:
relevant person
(2) Section 72(1)—delete "Registered participant to whom" and
substitute:
relevant person to whom
(3) Section 72(2)—delete "a Registered participant is required
to pay an amount to AEMO or another Registered participant" and
substitute:
a relevant person is required to pay an amount to AEMO or another relevant
person
(4) Section 72(2)(a) and (b)—delete "Registered participant"
wherever occurring and substitute in each case:
relevant person
(5) Section 72(3)—delete "Registered participant" and
substitute:
relevant person
(6) Section 72(4), definition of civil claim Rule
dispute—delete "Registered participants, or between AEMO and a
Registered participant" and substitute:
relevant persons, or between AEMO and a relevant person
(7) Section 72(4)—after the definition of relevant
Dispute resolution panel insert:
relevant person means—
(a) a Registered participant; or
(b) a liable entity;
After section 90E insert:
90EA—South Australian Minister to make initial
Rules relating to Retailer Reliability Obligation
(1) The Minister in
right of the Crown of South Australia administering Part 2 of the
National
Electricity (South Australia) Act 1996
of South Australia (the South Australian Minister) may make
Rules—
(a) for or with respect to—
(i) the Retailer Reliability Obligation amendments; and
(ii) any other subject contemplated by, or consequential on, the Retailer
Reliability Obligation amendments; and
(b) that revoke or amend a Rule as a consequence of the enactment of the
Retailer Reliability Obligation amendments.
(2) Rules may be made under
subsection (1)
only on the recommendation of the MCE.
(3) For the purposes of
subsection (1)
, a reference in section 34(1) to the national electricity system is
taken to be a reference to the national electricity system or a local
electricity system (as the context requires).
(4) Rules in the nature of a derogation may be made under
subsection (1)
even though there may not have been a request for a derogation.
(5) Rules made under
subsection (1)
may be differential Rules.
(6) Section 34(3) applies to Rules made under
subsection (1)
in the same way as it applies to Rules made by the AEMC.
(7) If the Minister makes Rules under
subsection (1)
, the Minister cannot make another Rule under that subsection.
(8) In this section—
differential Rule means a Rule that—
(a) varies in its terms as between—
(i) the national electricity system; and
(ii) 1 or more, or all, of the local electricity systems; or
(b) does not have effect with respect to 1 or more of those
systems;
local electricity system means—
(a) an electricity system in this jurisdiction prescribed or declared in
or under the application Act of this jurisdiction to be a local electricity
system; and
(b) the generating systems and other facilities owned, controlled or
operated in this jurisdiction connected to that local electricity
system;
Retailer Reliability Obligation amendments means the
amendments made to this Law by the
National
Electricity (South Australia) (Retailer Reliability Obligation) Amendment
Act 2019
.
14—Amendment
of Schedule 1—Subject matter for the National Electricity
Rules
(1) Schedule 1, item 5—after "by AEMO under" insert:
this Law or
(2) Schedule 1—after item 6 insert:
Retailer Reliability Obligation |
|
6A |
Forecasting by AEMO for the purpose of the reliability obligation,
including— |
|
(a) the timing, procedures and methodologies to be followed by AEMO for
forecasting; and |
|
(b) the information to be provided to AEMO for forecasting purposes;
and |
|
(c) determining what constitutes a material reliability gap; and |
|
(d) processes for reviewing and updating forecasts; and |
|
(e) consultation requirements; and |
|
(f) reporting and publication requirements; and |
|
(g) the requirement for, and content of, guidelines; and |
|
(h) the role of the AER in the forecasting process. |
6B |
The process for AEMO to request a reliability instrument. |
6C |
The process for the AER to make a reliability instrument. |
6D |
Compliance and reporting obligations of liable entities. |
6E |
The establishment and maintenance of a register of liable entities by the
AER and the obligations of— |
|
(a) persons to report matters to the AER for the purposes of the register;
and |
|
(b) the AER to notify liable entities on the register about the
reliability obligations, including when the reliability obligations
apply. |
6F |
The application of the Retailer Reliability Obligation to liable entities
who are members of a corporate group. |
6G |
The imposition of a market liquidity obligation in relation to qualifying
contracts and related matters, including— |
|
(a) persons to whom the obligation applies; and |
|
(b) thresholds for the application of the obligation; and |
|
(c) the bids and offers the subject of the obligation; and |
|
(d) when and how bids and offers are to be made available. |
6H |
The exercise of the AER market liquidity obligation functions by the
AER. |
6I |
The establishment and administration of a voluntary book build process to
facilitate the buying and selling of qualifying contracts. |
6J |
The administration and exercise of the procurer of last resort function by
AEMO, and related reporting. |
6K |
Reporting, monitoring and enforcing compliance of the reliability
obligation by the AER. |
6L |
Treatment of types of pre-existing contracts as qualifying
contracts. |
15—Amendment
of Schedule 2—Miscellaneous provisions relating to
interpretation
(1) Schedule 2, clause 41(3), definition of statutory
instrument— after "the Regulations" insert:
, a reliability instrument
(2) Schedule 2—after clause 41A insert;
41B—Reliability instrument construed not to exceed
the legislative power of the Legislature of this jurisdiction or the powers
conferred by this Law
(1) A reliability instrument is to be construed as operating to the full
extent of, but so as not to exceed, the legislative power of the Legislature of
this jurisdiction or the power conferred by this Law under which it is
made.
(2) If a provision of a reliability instrument, or the application of a
provision of the instrument to a person, subject matter or circumstance, would,
but for this clause, be construed as being in excess of the legislative power of
the Legislature of this jurisdiction or the power conferred by this Law under
which it is made—
(a) it is a valid provision to the extent to which it is not in excess of
the power; and
(b) the remainder of the instrument, and the application of the provision
to other persons, subject matters or circumstances, is not affected.