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ELECTRICITY INDUSTRY AMENDMENT (PREMIUM SOLAR FEED-IN TARIFF)

                 PARLIAMENT OF VICTORIA

  Electricity Industry Amendment (Premium Solar
               Feed-in Tariff) Bill 2009



                      TABLE OF PROVISIONS
Clause                                                                       Page
  1      Purpose                                                                1
  2      Commencement                                                           1
  3      Principal Act                                                          2
  4      Definitions inserted for purpose of Division                           2
  5      New sections 40FA to 40FJ inserted                                     6
         40FA Meaning of premium solar feed-in tariff terms and
                  conditions                                                    6
         40FB Meaning of general renewable energy feed-in terms
                  and conditions                                                8
         40FC Meaning of premium solar feed-in tariff period                    8
         40FD Application of premium solar feed-in tariff terms and
                  conditions obligations                                        9
         40FE Minister may declare the declared scheme capacity day             9
         40FF Relevant licensee condition relating to premium solar
                  feed-in tariff                                               10
         40FG Small retail licensees may offer to purchase solar
                  energy at premium solar feed-in tariff                       10
         40FH Distribution company licences to require credits for
                  qualifying solar energy generation electricity               11
         40FI     Pass through of costs associated with credits for
                  qualifying solar energy generation electricity               12
         40FJ Distribution companies to report annually on connected
                  qualifying solar energy generating facilities                13
  6      New section 40G substituted                                           14
         40G      Retailer licence condition relating to purchase of small
                  renewable energy generation electricity                      14
  7      When do published feed-in offers take effect?                         14
  8      Reference of small renewable energy generation electricity
         feed-in offers to Commission                                          15
  9      Commission assessment                                                 17
  10     Certain Commission assessment reports to be made publicly
         available                                                             19
  11     Commission determination of small renewable energy
         generation prices, terms and conditions                               19




561286B.I-11/3/2009                    i       BILL LA INTRODUCTION 11/3/2009

 


 

Clause Page 12 New section 40M substituted and new sections 40MA to 40ME inserted 20 40M Declaration of small renewable energy generation electricity general feed-in terms and conditions 20 40MA Declaration of qualifying solar energy generation electricity premium solar feed-in terms and conditions 21 40MB When do declared ESC recommended feed-in terms or conditions take effect? 21 40MC When do declared ESC determined feed-in terms or conditions take effect? 22 40MD Licence condition applying to relevant licensee named in Ministerial declaration 23 40ME Licence condition applying to small retail licensee named in Ministerial declaration 24 13 Consequential amendments to provision requiring Internet publication of general feed-in offers 24 14 New sections 40NA and 40NB inserted 25 40NA Retailer Internet site must be up to date for premium solar feed-in tariff offers 25 40NB Review of premium solar feed-in tariff scheme 26 15 Amendment of National Electricity (Victoria) Act 2005-- regulatory obligation or payments 28 16A Solar feed-in credit obligation is a regulatory obligation or requirement 28 16 Repeal of amending Act 29 ENDNOTES 30 561286B.I-11/3/2009 ii BILL LA INTRODUCTION 11/3/2009

 


 

PARLIAMENT OF VICTORIA Introduced in the Assembly Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 A Bill for an Act to amend the Electricity Industry Act 2000 and the National Electricity (Victoria) Act 2005 and for other purposes. The Parliament of Victoria enacts: 1 Purpose The purpose of this Act is to amend the Electricity Industry Act 2000 and the National Electricity (Victoria) Act 2005 to make further 5 provision to promote the installation and use by Victorian households of small solar energy generation facilities. 2 Commencement (1) Subject to subsection (2), this Act comes into 10 operation on a day or days to be proclaimed. 561286B.I-11/3/2009 1 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 3 (2) If a provision of this Act does not come into operation before 1 July 2011, it comes into operation on that day. 3 Principal Act 5 See: In this Act, the Electricity Industry Act 2000 is Act No. 68/2000. called the Principal Act. Reprint No. 4 as at 9 November 2006 and amending Act Nos 35/2007, 55/2007, 25/2008 and 59/2008. LawToday: www. legislation. vic.gov.au 4 Definitions inserted for purpose of Division (1) In section 40F(1) of the Principal Act insert the following definitions-- 10 "2006-2010 distribution pricing determination has the same meaning as in the National Electricity (Victoria) Act 2005; declared scheme capacity day means the day declared by notice under section 40FE; 15 distributor obligation period means the period-- (a) commencing on the scheme start day; and (b) ending on the day that is the last day a distribution company conveys any 20 qualifying solar energy generation electricity along a distribution system operated by that distribution company; 561286B.I-11/3/2009 2 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 4 ESC determined general feed-in terms and conditions means prices, terms and conditions determined under section 40L(1)(a); 5 ESC determined premium solar feed-in terms and conditions means terms and conditions determined under section 40L(1)(b); ESC recommended general feed-in terms and conditions means prices, terms and 10 conditions recommended, and contained in, a report under section 40J(2A)(a); ESC recommended premium solar feed-in terms and conditions means terms and conditions recommended, and contained in, a report 15 under section 40J(2A)(b); general renewable energy feed-in terms and conditions has the meaning given by section 40FB; premium solar feed-in credit has the meaning 20 given by section 40FA(2)(a); premium solar feed-in tariff period, for a qualifying customer, has the meaning given by section 40FC; premium solar feed-in tariff terms and 25 conditions has the meaning given by section 40FA; publish, for sections 40FF, 40FG and 40G, means publish-- (a) in the Government Gazette; and 30 (b) on the licensee's Internet site; 561286B.I-11/3/2009 3 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 4 qualifying customer, of a relevant licensee or small retail licensee, means a person who-- (a) purchases electricity from that relevant licensee or small retail licensee; and 5 (b) engages in the generation of electricity at a property that the person occupies as their principal place of residence by means of a qualifying solar energy generating facility; and 10 (c) has been exempted by Order under section 17 from the requirement to hold a licence in respect of the generation of electricity for supply and sale; qualifying solar energy generating facility means 15 a photovoltaic generating facility that-- (a) has an installed or name-plate generating capacity of 32 kilowatts or less; and (b) is connected to a distribution system; 20 qualifying solar energy generation electricity means electricity that a qualifying customer generates and does not use; referred terms and conditions means general renewable energy feed-in terms and 25 conditions or premium solar feed-in tariff terms referred to the Commission under section 40I(1)(a) for assessment; scheme start day means the day on which section 5 of the Electricity Industry 30 Amendment (Premium Solar Feed-in Tariff) Act 2009 comes into operation; 561286B.I-11/3/2009 4 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 4 small retail licensee means a person that-- (a) holds a licence to sell electricity; and (b) sells electricity to 5000 or less customers; 5 statutory minimum conditions means the conditions specified under section 40FA(2);". (2) In section 40F(1) of the Principal Act, for the definition of non-complying licensee 10 substitute-- "non-complying licensee means-- (a) a relevant licensee that has not complied with a condition set out in section 40FF(1) or 40G(1); or 15 (b) a small retail licensee that has not complied with the condition set out in section 40FG(3);". (3) In section 40F(1) of the Principal Act, in paragraph (b) of the definition of relevant 20 generator, after "exempted" insert "by Order". (4) In section 40F(1) of the Principal Act, in the definition of small renewable energy generation facility-- (a) after "kind" insert ", connected to a 25 distribution system,"; (b) for paragraph (e) substitute-- "(e) a facility or class of facility specified for the purposes of this definition under subsection (2)-- 30 but does not include a qualifying solar energy generating facility;". 561286B.I-11/3/2009 5 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 (5) In section 40F(1) of the Principal Act, the definitions of ESC determined prices, terms and conditions, ESC recommended prices, terms and conditions and referred prices, terms and 5 conditions are repealed. 5 New sections 40FA to 40FJ inserted After section 40F of the Principal Act insert-- "40FA Meaning of premium solar feed-in tariff terms and conditions 10 (1) Premium solar feed-in tariff terms and conditions are terms and conditions comprising an offer under which a relevant licensee or small retail licensee will purchase from a qualifying customer of that licensee 15 qualifying solar energy generation electricity during the premium solar feed-in tariff period for that customer. (2) Premium solar feed-in tariff terms and conditions must, as a minimum, include 20 terms and conditions under which-- (a) an amount not less than $0.60 per kilowatt-hour is credited against the charges payable to the relevant licensee or small retail licensee by the 25 qualifying customer for electricity the licensee supplies to that customer during the premium solar feed-in tariff period for that customer (a premium solar feed-in credit); and 30 (b) a premium solar feed-in credit that arises during a period of supply of electricity to the qualifying customer during the premium solar feed-in tariff period for that customer is included in 35 the electricity bill of that customer that relates to that period of supply; and 561286B.I-11/3/2009 6 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 (c) if, in a period of supply of electricity to the qualifying customer during the premium solar feed-in tariff period for that customer, a premium solar feed-in 5 credit exceeds the amount owed by that customer for electricity supplied to that customer in that period of supply, the excess premium solar feed-in credit amount is-- 10 (i) credited against the charges payable to the relevant licensee or small retail licensee by that customer for electricity the licensee supplies to that customer 15 in the next period of supply of electricity to that customer; and (ii) included in that customer's electricity bill that relates to that period of supply of electricity; and 20 (d) any excess premium solar feed-in credit amount referred to in paragraph (c) is extinguished on the first of the following to occur-- (i) the day that is 12 months after the 25 day-- (A) a premium solar feed-in credit first arises in respect of the qualifying customer; or 30 (B) a premium solar feed-in credit first arises in respect of the qualifying customer after an excess premium solar feed-in credit amount 35 referred to in paragraph (c) is 561286B.I-11/3/2009 7 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 extinguished under this paragraph-- as the case requires; (ii) the day the contract for the supply 5 of electricity by the relevant licensee or small retail licensee to the qualifying customer ends; (iii) the day that is the last day of the premium solar feed-in tariff period 10 for the qualifying customer; and (e) any contract between the relevant licensee or small retail licensee and the qualifying customer for the purchase of qualifying solar energy generation 15 electricity by the licensee during the premium solar feed-in tariff period for that customer is conditional on that customer giving the licensee details of that customer's principal place of 20 residence. 40FB Meaning of general renewable energy feed-in terms and conditions General renewable energy feed-in terms and conditions are the prices, terms and 25 conditions comprising an offer under which a relevant licensee will purchase, from a relevant generator, small renewable energy generation electricity. 40FC Meaning of premium solar feed-in tariff 30 period (1) The premium solar feed-in tariff period for a qualifying customer is the period-- (a) commencing on the scheme start day and 561286B.I-11/3/2009 8 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 (b) ending on the earlier of-- (i) the fifteenth anniversary of the scheme start day; or (ii) the declared scheme capacity day. 5 (2) However, if there is a declared scheme capacity day, the premium solar feed-in tariff period for a qualifying customer who has a contract in operation for the supply of qualifying solar energy generation electricity 10 to a relevant licensee or small retail licensee immediately before that day, and has been credited with a premium solar feed-in credit at any time before that day, is the period-- (a) commencing on the scheme start day; 15 and (b) ending on the fifteenth anniversary of that commencement. 40FD Application of premium solar feed-in tariff terms and conditions obligations 20 Sections 40FF(1) and 40FG(3) are not to be taken to require a relevant licensee or small retail licensee to pay to a qualifying customer of that licensee any money (as cash, by cheque or otherwise) instead of the 25 whole or any part of a premium solar feed-in credit. 40FE Minister may declare the declared scheme capacity day (1) The Minister, by notice published in the 30 Government Gazette, may declare a day to be the declared scheme capacity day. (2) The Minister may declare a day under subsection (1) only if the Minister is satisfied that on that day the aggregate of the installed 35 or name-plate generating capacity of 561286B.I-11/3/2009 9 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 qualifying solar energy generating facilities is equal to or greater than 100 megawatts. Note See also the definition of premium solar feed-in tariff 5 period in section 40F(1). 40FF Relevant licensee condition relating to premium solar feed-in tariff (1) Without limiting the generality of section 20(2) or 20(3) or section 21, but subject to 10 this Division, the conditions to which a licence to sell electricity held by a relevant licensee is subject include a condition requiring the relevant licensee to publish premium solar feed-in tariff terms and 15 conditions. (2) A relevant licensee that publishes premium solar feed-in tariff terms and conditions as required by the condition set out in subsection (1) must give a copy of those 20 terms and conditions to the Minister within 7 days after publishing them. 40FG Small retail licensees may offer to purchase solar energy at premium solar feed-in tariff 25 (1) A small retail licensee may offer to purchase qualifying solar energy generation electricity from a qualifying customer during the premium solar feed-in tariff period for the qualifying customer. 30 (2) If a small retail licensee decides to do so, the small retail licensee must publish a notice to that effect. (3) Without limiting the generality of section 20(2) or 20(3) or section 21, but subject to 35 this Division, on and after the day a notice is published in the Government Gazette under 561286B.I-11/3/2009 10 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 subsection (2), the conditions to which a licence to sell electricity held by a small retail licensee is subject include a condition requiring the small retail licensee to publish 5 premium solar feed-in tariff terms and conditions. (4) A small retail licensee that publishes premium solar feed-in tariff terms and conditions under subsection (2) must give a 10 copy of those terms and conditions to the Minister within 7 days after publishing them. (5) If a small retail licensee decides to stop purchasing qualifying solar energy generation electricity from a qualifying 15 customer during the premium solar feed-in tariff period for the qualifying customer, it may publish a notice to that effect. (6) On and after the day a small retail licensee publishes a notice under subsection (5), 20 subsection (3) ceases to apply to that small retail licensee. (7) To avoid doubt, the publication by a small retail licensee of a notice under subsection (5) does not prevent the small retail licensee 25 from publishing another notice under subsection (2) to which this section will apply. 40FH Distribution company licences to require credits for qualifying solar energy 30 generation electricity (1) This section applies to a distribution company-- (a) whose licence to distribute electricity includes a condition of the kind 35 provided for under section 21(d) (a use of system agreement condition); and 561286B.I-11/3/2009 11 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 (b) that, in accordance with the use of system agreement condition, has entered into an agreement of the kind contemplated by section 21(d) with a 5 relevant licensee or small retail licensee (a use of system agreement). (2) Without limiting the generality of section 20(2) or 20(3) or section 21, the licence to distribute electricity held by that distribution 10 company is deemed to include a condition requiring that distribution company to include in a use of system agreement with a relevant licensee or small retail licensee, a condition that credits to the relevant licensee 15 or small retail licensee the amount of $0.60 per kilowatt-hour for qualifying solar energy generation electricity that is conveyed along a distribution system operated by that distribution company during the distributor 20 obligation period. 40FI Pass through of costs associated with credits for qualifying solar energy generation electricity (1) Despite anything to the contrary in this Act, 25 the Essential Services Commission Act 2001 or the 2006-2010 distribution pricing determination, the giving of a credit under a solar feed-in credit obligation is to be taken to also be a relevant pass through event that 30 has a material financial impact on the distribution company for the purposes of the 2006-2010 distribution pricing determination during the distributor obligation period. 561286B.I-11/3/2009 12 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 5 (2) In this section-- solar feed-in credit obligation means an obligation on a distribution company arising because of section 40FH(2). 5 40FJ Distribution companies to report annually on connected qualifying solar energy generating facilities (1) Without limiting the generality of section 20(2) or 20(3) or section 21, a licence to 10 distribute electricity is deemed to include a condition requiring the distribution company holding the licence to, within one month after every anniversary date of the scheme start day, give to the Minister a report that 15 specifies-- (a) the number of qualifying solar energy generating facilities connected to a distribution system operated by that licensee on the anniversary date of the 20 scheme start day that has just passed; and (b) the aggregate installed or name-plate generating capacity of qualifying solar energy generating facilities connected 25 to a distribution system operated by that licensee on the anniversary date of the scheme start day that has just passed. (2) Subsection (1) ceases to apply on the declared scheme capacity day.". 561286B.I-11/3/2009 13 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 6 6 New section 40G substituted For section 40G of the Principal Act substitute-- "40G Retailer licence condition relating to purchase of small renewable energy 5 generation electricity (1) Without limiting the generality of section 20(2) or 20(3) or section 21, but subject to this Division, the conditions to which a licence to sell electricity held by a relevant 10 licensee is subject include a condition requiring that licensee to publish general renewable energy feed-in terms and conditions. (2) A relevant licensee that publishes general 15 renewable energy feed-in terms and conditions as required by the condition set out in subsection (1) must give a copy of those prices, terms and conditions to the Minister within 7 days after publishing 20 them.". 7 When do published feed-in offers take effect? (1) In the heading to section 40H of the Principal Act, for "prices, terms and conditions" substitute "feed-in offers". 25 (2) For section 40H(1) of the Principal Act substitute-- "(1) Subject to this Division, general renewable energy feed-in terms and conditions and premium solar feed-in tariff terms and 30 conditions take effect 2 months after they are published under section 40FF, 40FG or 40G unless they are referred terms and conditions.". (3) In section 40H(2) of the Principal Act omit 35 "prices," (wherever occurring). 561286B.I-11/3/2009 14 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 8 (4) For section 40H(3) of the Principal Act substitute-- "(3) To avoid doubt, referred terms and conditions-- 5 (a) that are superseded by declared general feed-in terms and conditions are not to be taken to have taken effect; (b) that are superseded by declared premium solar feed-in terms and 10 conditions are not to be taken to have taken effect. (4) In subsection (3)-- declared general feed-in terms and conditions means the terms and 15 conditions declared under section 40M(2)(a) to apply to the purchases of small renewable energy generation electricity by the relevant licensee named in the declaration under that 20 section; declared premium solar feed-in terms and conditions means the terms and conditions declared under section 40MA(2)(a) to apply to the purchases 25 of qualifying solar energy generation electricity by the relevant licensee or small retail licensee named in the declaration under that section.". 8 Reference of small renewable energy generation 30 electricity feed-in offers to Commission (1) In the heading to section 40I of the Principal Act, for "prices, terms and conditions" substitute "feed-in offers". 561286B.I-11/3/2009 15 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 8 (2) For section 40I(1) of the Principal Act substitute-- "(1) The Minister, by written notice, may-- (a) refer general renewable energy feed-in 5 terms and conditions or premium solar feed-in tariff terms and conditions to the Commission for assessment as to whether they are fair and reasonable if the Minister considers that, in either 10 case, at least one term or condition may not be fair and reasonable; or (b) if a licensee is a non-complying licensee, request the Commission to determine-- 15 (i) in the case of a relevant licensee that has not complied with section 40G(1), fair and reasonable general renewable energy feed-in terms and conditions to apply to 20 small renewable energy generation electricity purchased from a relevant generator by that licensee; (ii) in the case of a relevant licensee 25 that has not complied with section 40FF(1) or a small retail licensee that has not complied with section 40FG(3), premium solar feed-in tariff terms and conditions to 30 apply to qualifying solar energy generation electricity purchased from a qualifying customer by that relevant licensee or small retail licensee.". 561286B.I-11/3/2009 16 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 9 (2) In section 40I(2) of the Principal Act-- (a) for "prices, terms and conditions" (where first occurring) substitute "general renewable energy feed-in terms and 5 conditions or premium solar feed-in tariff terms and conditions"; (b) omit "prices," (where secondly occurring). 9 Commission assessment (1) In the heading to section 40J of the Principal Act, 10 for "prices," substitute "feed-in". (2) In section 40J(1)(a) of the Principal Act, for "the referred prices," substitute "referred". (3) For section 40J(2) of the Principal Act substitute-- 15 "(2) In the case of referred terms and conditions that are premium solar feed-in tariff terms and conditions, the Commission must not-- (a) assess the statutory minimum conditions as to whether they are fair 20 and reasonable; or (b) recommend any amount or price for qualifying solar energy generation electricity supplied by a qualifying customer to a relevant licensee or a 25 small retail licensee that differs from the premium solar feed-in credit. (2A) If the Commission assesses any of the referred terms and conditions as not being fair and reasonable, the Commission must, in 30 its report to the Minister-- (a) in the case of referred terms and conditions that are general renewable energy feed-in terms and conditions, recommend to the Minister prices, 561286B.I-11/3/2009 17 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 9 terms and conditions it considers are fair and reasonable; (b) in the case of referred terms and conditions that are premium solar feed- 5 in tariff terms and conditions, recommend to the Minister terms and conditions it considers are fair and reasonable.". (4) In section 40J(3) of the Principal Act, for "ESC 10 recommended prices, terms and conditions" substitute "ESC recommended general feed-in terms and conditions". (5) After section 40J(3) of the Principal Act insert-- "(3A) ESC recommended premium solar feed-in 15 terms and conditions must include-- (a) terms and conditions that are consistent with the statutory minimum conditions; and (b) either or both of the following-- 20 (i) a variation to any other term or condition that the Commission has (as part of the assessment) assessed as not being fair and reasonable to make that term or 25 condition fair and reasonable; (ii) a new term or condition to apply in substitution of a term or condition that the Commission has (as part of the assessment) 30 assessed as not being fair and reasonable.". 561286B.I-11/3/2009 18 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 10 (6) In section 40J(4) of the Principal Act, for "ESC recommended prices, terms and conditions" substitute "ESC recommended general feed-in terms and conditions and ESC recommended 5 premium solar feed-in terms and conditions". 10 Certain Commission assessment reports to be made publicly available In section 40K of the Principal Act omit "prices,". 11 Commission determination of small renewable 10 energy generation prices, terms and conditions For section 40L(1) and (2) of the Principal Act substitute-- "(1) The Commission must determine-- (a) the prices, terms and conditions on the 15 Minister's request under section 40I(1)(b)(i); (b) the terms and conditions on the Minister's request under section 40I(1)(b)(ii). 20 (2) The Commission must report to the Minister on a determination under subsection (1). (2A) Prices, terms and conditions that are determined under subsection (1)(a) must be fair and reasonable. 25 (2B) Terms and conditions determined under subsection (1)(b)-- (a) must include terms and conditions that are consistent with the statutory minimum conditions; and 30 (b) in the case of terms and conditions that are not the statutory minimum conditions, must be fair and reasonable.". 561286B.I-11/3/2009 19 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 12 12 New section 40M substituted and new sections 40MA to 40ME inserted For section 40M of the Principal Act substitute-- "40M Declaration of small renewable energy 5 generation electricity general feed-in terms and conditions (1) This section applies if the Minister receives a report from the Commission under-- (a) section 40J containing ESC 10 recommended general feed-in terms and conditions; or (b) section 40L containing ESC determined general feed-in terms and conditions. (2) The Minister, by notice published in the 15 Government Gazette, may declare that-- (a) ESC recommended general feed-in terms and conditions apply to the purchase of small renewable energy generation electricity by the relevant 20 licensee named in the declaration whose prices, terms and conditions were assessed by the Commission as not being fair and reasonable; (b) ESC determined general feed-in terms 25 and conditions apply to the purchase of small renewable energy generation electricity by the non-complying licensee named in the declaration. 561286B.I-11/3/2009 20 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 12 40MA Declaration of qualifying solar energy generation electricity premium solar feed-in terms and conditions (1) This section applies if the Minister receives a 5 report from the Commission under-- (a) section 40J containing ESC recommended premium solar feed-in terms and conditions; or (b) section 40L containing ESC determined 10 premium solar feed-in terms and conditions. (2) The Minister, by notice published in the Government Gazette, may declare that-- (a) ESC recommended premium solar 15 feed-in terms and conditions apply to the purchase of qualifying solar energy generation electricity by the relevant licensee or small retail licensee named in the declaration whose terms and 20 conditions were assessed by the Commission as not being fair and reasonable; (b) ESC determined premium solar feed-in terms and conditions apply to the 25 purchase of qualifying solar energy generation electricity by the non- complying licensee named in the declaration. 40MB When do declared ESC recommended 30 feed-in terms or conditions take effect? (1) Declared ESC recommended feed-in terms and conditions-- (a) supersede the referred terms and conditions related to those 35 recommended feed-in terms and 561286B.I-11/3/2009 21 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 12 conditions and that the Commission has assessed in a report under section 40J as not being fair and reasonable; and (b) take effect on-- 5 (i) the day the relevant notice is published in the Government Gazette under section 40M(2)(a) or 40MA(2)(a) (as the case requires); or 10 (ii) if the notice specifies a later day, that day. (2) In subsection (1)-- declared ESC recommended feed-in terms and conditions means-- 15 (a) the prices, terms and conditions that have been declared under section 40M(2)(a) to apply to the purchase of small renewable energy generation electricity; or 20 (b) the terms and conditions that have been declared under section 40MA(2)(a) to apply to the purchase of qualifying solar energy generation electricity. 25 40MC When do declared ESC determined feed-in terms or conditions take effect? (1) Declared ESC determined feed-in terms and conditions take effect on-- (a) the day the relevant notice is published 30 in the Government Gazette under section 40M(2)(b) or 40MA(2)(b) (as the case requires); or (b) if the notice specifies a later day, that day. 561286B.I-11/3/2009 22 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 12 (2) In subsection (1)-- declared ESC determined feed-in terms and conditions means-- (a) the prices, terms and conditions 5 that have been declared under section 40M(2)(b) to apply to the purchase of small renewable energy generation electricity; or (b) the terms and conditions that have 10 been declared under section 40MA(2)(b) to apply to the purchase of qualifying solar energy generation electricity. 40MD Licence condition applying to relevant 15 licensee named in Ministerial declaration A licence to sell electricity held by a relevant licensee named in-- (a) a declaration under section 40M(2) is deemed to include a condition requiring 20 that licensee to offer to purchase small renewable energy generation electricity from a relevant generator at the prices, and on the terms and conditions, declared under that declaration to apply 25 to those purchases; (b) a declaration under section 40MA(2) is deemed to include a condition requiring that licensee to offer to purchase qualifying solar energy generation 30 electricity from a qualifying customer on the terms and conditions declared under that declaration to apply to those purchases. 561286B.I-11/3/2009 23 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 13 40ME Licence condition applying to small retail licensee named in Ministerial declaration A licence to sell electricity held by a small retail licensee named in a declaration under 5 section 40MA(2) is deemed to include a condition requiring that licensee to offer to purchase qualifying solar energy generation electricity from a qualifying customer on the terms and conditions declared under that 10 declaration to apply to those purchases.". 13 Consequential amendments to provision requiring Internet publication of general feed-in offers (1) In section 40N(1) of the Principal Act-- (a) for "prices, terms and conditions" substitute 15 "general renewable energy feed-in terms and conditions"; (b) omit "prices," (where secondly and fourthly occurring); (c) for "referred prices, terms and conditions" 20 substitute "referred terms and conditions"; (d) for "ESC recommended prices, terms and conditions" (wherever occurring) substitute "ESC recommended general feed-in terms and conditions". 25 (2) In section 40N(2) of the Principal Act, for "ESC determined prices, terms and conditions" (where twice occurring) substitute "ESC determined general feed-in terms and conditions". 561286B.I-11/3/2009 24 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 14 14 New sections 40NA and 40NB inserted After section 40N of the Principal Act insert-- "40NA Retailer Internet site must be up to date for premium solar feed-in tariff offers 5 (1) A relevant licensee that publishes premium solar feed-in tariff terms and conditions in accordance with the condition set out in section 40FF(1) or a small retail licensee that publishes premium solar feed-in tariff terms 10 and conditions in accordance with the condition set out in section 40FG(3) must-- (a) if those terms and conditions become referred terms and conditions, publish on its Internet site a note informing the 15 public of that referral and that explains the effect of that referral; and (b) if those terms and conditions are superseded by terms and conditions declared under section 40MA(2)(a) as 20 applying to purchases of qualifying solar energy generation electricity by the licensee, publish on its Internet site-- (i) a note to that effect; and 25 (ii) the terms and conditions that apply; and (iii) the day on which the terms and conditions that apply take effect. (2) A relevant licensee or small retail licensee 30 that is a non-complying licensee must publish on its Internet site-- (a) the terms and conditions that have been declared under section 40MA(2)(b) as applying to purchases of qualifying 561286B.I-11/3/2009 25 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 14 solar energy generation electricity by the licensee; and (b) the day on which the terms and conditions that apply take effect. 5 40NB Review of premium solar feed-in tariff scheme (1) The Minister must cause an independent review of the operation of the amendments made to this Division by the Electricity 10 Industry Amendment (Premium Solar Feed-in Tariff) Act 2009. (2) The review must be undertaken by 30 June 2012. (3) For the purpose of assisting the undertaking 15 of a review, a licensee, if requested to do so by the Minister, must, by 1 July 2010 and 1 July 2011, give the persons undertaking the review the following information-- (a) if the licensee is a retailer-- 20 (i) the number of qualifying customers supplying qualifying solar energy generation electricity to that retailer at that date; (ii) the amount of qualifying solar 25 energy generation electricity supplied to that retailer at that date; (b) if the licensee is a distribution company-- 30 (i) the number of qualifying solar energy generating facilities connected to a distribution system operated by that company at the end of the years 2009 and 2010 35 respectively; 561286B.I-11/3/2009 26 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 14 (ii) an aggregate of the installed or name-plate generating capacity of qualifying solar energy generating facilities connected to a 5 distribution system operated by that company at the end of the years 2009 and 2010 respectively; (iii) the amount of qualifying solar energy generation electricity that 10 is conveyed along a distribution system operated by that distribution company in the years 2009 and 2010 respectively. (4) A person who undertakes the review must 15 give the Minister a written report of the review. (5) The Minister must cause a copy of the report of the review to be laid before each House of the Parliament. 20 (6) In this section-- independent review means a review by persons who-- (a) in the opinion of the Minister possess appropriate qualifications 25 to undertake the review; and (b) include one or more persons who are not employed by the State or a State authority and have not, since the commencement of section 5 of 30 the Electricity Industry Amendment (Premium Solar Feed-in Tariff) Act 2009, provided services to the State or a State authority under or in 35 connection with a contract.". 561286B.I-11/3/2009 27 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 15 15 Amendment of National Electricity (Victoria) Act 2005--regulatory obligation or payments After section 16 of the National Electricity (Victoria) Act 2005 insert-- 5 "16A Solar feed-in credit obligation is a regulatory obligation or requirement (1) During the relevant solar feed-in tariff period for a regulated distribution system operator that is a distribution company-- 10 (a) Division 5A of Part 2 of the Electricity Industry Act 2000 is deemed to be an Act of this jurisdiction that relates to the protection of the environment referred to in section 2D(1)(b)(iv) of 15 the National Electricity (Victoria) Law; and (b) the solar feed-in credit obligation is deemed to be an obligation under the Electricity Industry Act 2000. 20 (2) In this section-- distribution company has the same meaning as the Electricity Industry Act 2000; distribution obligation period has the same meaning as in section 40F(1) of the 25 Electricity Industry Act 2000; relevant solar feed-in tariff period, for a regulated distribution system operator that is a distribution company, means the period-- 30 (a) commencing on the day after the Victorian distribution pricing determination end date; and 561286B.I-11/3/2009 28 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 s. 16 (b) ending on the day the distributor obligation period that applies to that operator ends; solar feed-in credit obligation means an 5 obligation on a regulated distribution system operator that is a distribution company arising because of section 40FH(2) of the Electricity Industry Act 2000.". 10 16 Repeal of amending Act This Act is repealed on 1 July 2012. Note The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the 15 Interpretation of Legislation Act 1984). 561286B.I-11/3/2009 29 BILL LA INTRODUCTION 11/3/2009

 


 

Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009 Endnotes ENDNOTES By Authority. Government Printer for the State of Victoria. 561286B.I-11/3/2009 30 BILL LA INTRODUCTION 11/3/2009

 


 

 


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