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ENERGY LEGISLATION (REGULATORY REFORM) BILL 2004

                                                                 PARLIAMENT OF VICTORIA

                                                 Energy Legislation (Regulatory Reform) Act 2004
                                                                                   Act No.
Victorian Legislation Parliamentary Documents




                                                                       TABLE OF PROVISIONS
                                                Clause                                                                    Page

                                                PART 1--PRELIMINARY                                                          1
                                                  1.     Purpose                                                             1
                                                  2.     Commencement                                                        2

                                                PART 2--AMENDMENTS TO ELECTRICITY INDUSTRY ACT
                                                2000                                                                         3
                                                  3.     New definition of Tariff Order                                      3
                                                  4.     Amendment and repeal of provisions relating to old Tariff Order     3
                                                  5.     New section 15A inserted                                            4
                                                         15A. New Tariff Order                                               4
                                                  6.     Supplier of last resort                                             4
                                                  7.     Repeal of sections 41, 42, 43, 44 and 46(1) (electricity market)    5
                                                  8.     Sunset for electricity market provisions                            5
                                                  9.     Rateability of certain property                                     5

                                                PART 3--AMENDMENTS TO GAS INDUSTRY ACT 2001                                  6
                                                  10.    Definition of "Tariff Order"                                        6
                                                  11.    References to Tariff Order                                          6
                                                  12.    New section 20A inserted                                            7
                                                         20A. New Tariff Order                                               7
                                                  13.    Repeal of section 33 (reliability of retail supply)                 8
                                                  14.    Supplier of last resort                                             8
                                                  15.    Repeal of section 37 (restriction on retail sale of gas by
                                                         significant producers)                                              8
                                                  16.    Cost recovery                                                       8
                                                  17.    Repeal of Part 5 (significant producers)                            8
                                                  18.    References to significant producers                                 9
                                                  19.    Functions of VENCorp                                                9

                                                PART 4--AMENDMENTS TO ELECTRICITY INDUSTRY
                                                (RESIDUAL PROVISIONS) ACT 1993                                              10
                                                  20.    Power to specify certain amounts for purposes of National
                                                         Electricity Code                                                   10
                                                  21.    Repeal of clause 6 of Schedule 4                                   10



                                                                                        i
                                                551165B.I1-22/4/2004                              BILL LA CIRCULATION 22/4/2004

 


 

Clause Page PART 5--AMENDMENT TO ELECTRICITY SAFETY ACT 1998 11 22. Acceptance of scheme 11 23. Electric Line Clearance Consultative Committee 12 Victorian Legislation Parliamentary Documents PART 6--AMENDMENTS TO OTHER ACTS 13 24. Gas Industry (Residual Provisions) Act 1994 13 25. Federal Courts (Consequential Amendments) Act 2000 13 ENDNOTES 14 ii 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

PARLIAMENT OF VICTORIA Initiated in Assembly 21 April 2004 Victorian Legislation Parliamentary Documents A BILL to further amend the Electricity Industry Act 2000, the Gas Industry Act 2001, the Electricity Industry (Residual Provisions) Act 1993, the Electricity Safety Act 1998 and other Acts and for other purposes. Energy Legislation (Regulatory Reform) Act 2004 The Parliament of Victoria enacts as follows: PART 1--PRELIMINARY 1. Purpose The main purposes of this Act are-- (a) to amend the Electricity Industry Act 2000-- 5 1 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 1--Preliminary s. 2 (i) to replace the existing Tariff Order with a more limited Order; and (ii) to clarify when a generation company is liable to be rated in respect of land used Victorian Legislation Parliamentary Documents for generation functions; and 5 (iii) to improve generally the operation of that Act; (b) to amend the Gas Industry Act 2001-- (i) to replace the Victorian Gas Industry Tariff Order with a more limited Order; 10 and (ii) to repeal certain provisions regulating significant producers of gas; and (iii) to improve generally the operation of that Act; 15 (c) to amend the Electricity Industry (Residual Provisions) Act 1993 in relation to the regulation of charges for electricity purchased under the National Electricity Code; 20 (d) to amend the Electricity Safety Act 1998 in relation to electricity safety management schemes. 2. Commencement (1) This Act (except sections 3, 4, 5, 10, 11, 12, 21 25 and 24) comes into operation on the day after the day on which it receives the Royal Assent. (2) Sections 3, 4, 5, 10, 11, 12, 21 and 24 come into operation on a day or days to be proclaimed. (3) If a provision referred to in sub-section (2) does 30 not come into operation before 30 June 2005, it comes into operation on that day. __________________ 2 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 2--Amendments to Electricity Industry Act 2000 s. 3 See: PART 2--AMENDMENTS TO ELECTRICITY INDUSTRY Act No. ACT 2000 68/2000. Reprint No. 1 as at Victorian Legislation Parliamentary Documents 3. New definition of Tariff Order 13 June 2002 and In section 3 of the Electricity Industry Act 2000 amending for the definition of "Tariff Order" substitute-- 5 Act Nos 10/2002, ' "Tariff Order" means an Order made under 30/2003, 40/2003 and section 15A as that Order is amended and in 106/2003. force from time to time;". LawToday: www.dms. dpc.vic. gov.au 4. Amendment and repeal of provisions relating to old Tariff Order 10 (1) In section 11(1) of the Electricity Industry Act 2000 omit ", whether under the Tariff Order or otherwise". (2) Section 14 of the Electricity Industry Act 2000 is repealed. 15 (3) Section 15(2) of the Electricity Industry Act 2000 is repealed. (4) In section 15(4) of the Electricity Industry Act 2000 for "Sub-sections (2) and (3) are" substitute "Sub-section (3) is". 20 (5) In section 15(5) of the Electricity Industry Act 2000 for "sub-section (2) or (3)" substitute "sub-section (3)". 3 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 2--Amendments to Electricity Industry Act 2000 s. 5 5. New section 15A inserted After section 15 of the Electricity Industry Act 2000 insert-- Victorian Legislation Parliamentary Documents "15A. New Tariff Order (1) The Governor in Council may, by Order 5 published in the Government Gazette-- (a) specify pricing principles to apply to the making of any determination under the Essential Services Commission Act 2001 regulating charges (other than 10 charges for excluded services) for connection to, and the use of, any distribution system; (b) determine or authorise the Commission to determine the distribution services 15 that are to be excluded services for the purposes of a determination regulating charges for connection to, and the use of, a distribution system; (c) specify the criteria to be complied with 20 by the Commission in determining the distribution services that are to be excluded services for the purposes of a determination regulating charges for connection to, and the use of, a 25 distribution system; (d) make provision for any matter ancillary to any matter referred to in paragraphs (a) to (c). (2) The Governor in Council may, by Order 30 published in the Government Gazette, amend or revoke an Order under this section.". 6. Supplier of last resort In section 27(5)(a) of the Electricity Industry Act 2000 omit "suspended or". 35 4 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 2--Amendments to Electricity Industry Act 2000 s. 7 7. Repeal of sections 41, 42, 43, 44 and 46(1) (electricity market) Sections 41, 42, 43, 44 and 46(1) of the Electricity Industry Act 2000 are repealed. Victorian Legislation Parliamentary Documents 8. Sunset for electricity market provisions 5 (1) After section 45(2) of the Electricity Industry Act 2000 insert-- "(3) This section ceases to have effect on 31 December 2005.". (2) After section 46(5) of the Electricity Industry 10 Act 2000 insert-- "(6) This section ceases to have effect on 31 December 2005.". 9. Rateability of certain property After section 94(8) of the Electricity Industry 15 Act 2000 insert-- "(8A) A generation company or an associated entity of a generation company is deemed for the purposes of this section to be liable to pay rates in respect of land used for 20 generation functions if the generation company or the associated entity-- (a) is liable to pay rates in respect of the land under the Local Government Act 1989; or 25 (b) is liable to pay rates in respect of the land under an agreement with the person who is liable to pay rates in respect of the land under the Local Government Act 1989.". 30 __________________ 5 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 3--Amendments to Gas Industry Act 2001 s. 10 See: PART 3--AMENDMENTS TO GAS INDUSTRY ACT 2001 Act No. 31/2001. 10. Definition of "Tariff Order" Reprint No. 1 as at Victorian Legislation Parliamentary Documents In section 3 of the Gas Industry Act 2001, in the 2 July 2002 and definition of "Tariff Order", for paragraph (a) amending substitute-- 5 Act Nos 30/2003, "(a) an Order made under section 20A as that 40/2003 and 106/2003. Order is amended and in force from time to LawToday: time;". www.dms. dpc.vic. gov.au 11. References to Tariff Order (1) For the heading to section 20 of the Gas Industry 10 Act 2001 substitute-- "Wimmera and Colac Tariff Order". (2) In sections 20(1), 20(5) and 20(8) of the Gas Industry Act 2001 for "A Tariff Order" substitute "The Wimmera and Colac Tariff 15 Order". (3) In sections 20(2), 20(3), 20(6) and 20(9) of the Gas Industry Act 2001 for "a Tariff Order" substitute "the Wimmera and Colac Tariff Order". 20 (4) After section 20(9) of the Gas Industry Act 2001 insert-- '(10) In this section "Wimmera and Colac Tariff Order" means the Wimmera and Colac Gas Supply Tariff Order 1998 published in the 25 Government Gazette on 17 December 1998 as that Order is amended and in force from time to time.'. 6 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 3--Amendments to Gas Industry Act 2001 s. 12 12. New section 20A inserted After section 20 of the Gas Industry Act 2001 insert-- Victorian Legislation Parliamentary Documents "20A. New Tariff Order (1) The Governor in Council may, by Order 5 published in the Government Gazette-- (a) determine or authorise the ACCC to determine services that are to be excluded services in relation to the transmission of gas; 10 (b) authorise the ACCC to regulate the terms and charges for the provision of excluded services in relation to the transmission of gas; (c) specify pricing principles to apply to 15 any determination of the ACCC relating to charges for connection to and use of a transmission pipeline; (d) determine or authorise the Commission to determine services that are to be 20 excluded services in relation to the distribution of gas; (e) authorise the Commission to regulate the terms and charges for the provision of excluded services in relation to the 25 distribution of gas; (f) specify pricing principles to apply to any determination of the Commission relating to charges for connection to and use of any distribution pipeline; 30 (g) make provision for any matter ancillary to any matter referred to in paragraphs (a) to (f). 7 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 3--Amendments to Gas Industry Act 2001 s. 13 (2) If the provisions of an Order under this section are inconsistent with the Access Code or any access arrangement approved under the Access Code, the provisions do not Victorian Legislation Parliamentary Documents apply to the extent of the inconsistency. 5 (3) The Governor in Council may, by Order published in the Government Gazette, amend or revoke an Order under this section.". 13. Repeal of section 33 (reliability of retail supply) Section 33 of the Gas Industry Act 2001 is 10 repealed. 14. Supplier of last resort In section 34(5) of the Gas Industry Act 2001 for paragraphs (a) and (b) substitute-- "(a) the first licensee's licence is revoked; or 15 (b) the first licensee has been deregistered as a market participant in the category of retailer under the MSO Rules after a notice of suspension was issued to the licensee by VENCorp under those Rules--". 20 15. Repeal of section 37 (restriction on retail sale of gas by significant producers) Section 37 of the Gas Industry Act 2001 is repealed. 16. Cost recovery 25 After section 68(5) of the Gas Industry Act 2001 insert-- "(6) This section ceases to have effect on 31 December 2007.". 17. Repeal of Part 5 (significant producers) 30 Part 5 of the Gas Industry Act 2001 is repealed. 8 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 3--Amendments to Gas Industry Act 2001 s. 18 18. References to significant producers (1) For section 128(2)(a) of the Gas Industry Act 2001 substitute-- Victorian Legislation Parliamentary Documents "(a) if the significant producer has a controlling interest or a substantial interest in a gas 5 retailer;". (2) For section 128(3)(b) of the Gas Industry Act 2001 substitute-- "(b) if the person has a controlling interest or a substantial interest in a gas retailer;". 10 19. Functions of VENCorp Section 160(1)(i) of the Gas Industry Act 2001 is repealed. __________________ 9 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 4--Amendments to Electricity Industry (Residual Provisions) Act 1993 s. 20 See: PART 4--AMENDMENTS TO ELECTRICITY INDUSTRY Act No. (RESIDUAL PROVISIONS) ACT 1993 130/1993. Reprint No. 5 as at Victorian Legislation Parliamentary Documents 20. Power to specify certain amounts for purposes of 1 January National Electricity Code 2001 and After section 158BA(1) of the Electricity 5 amending Act Nos Industry (Residual Provisions) Act 1993 105/1997, insert-- 44/2001, 62/2001, "(1A) The Governor in Council, by Order 68/2001 and 11/2002. published in the Government Gazette, may LawToday: authorise the Minister administering this Act www.dms. 10 dpc.vic. to, by notice published in the Government gov.au Gazette, specify an amount for the purposes of clauses 3.3 and 4.3 of schedule 9A.2 of the National Electricity Code.". 21. Repeal of clause 6 of Schedule 4 15 Clause 6 of Schedule 4 to the Electricity Industry (Residual Provisions) Act 1993 is repealed. __________________ 10 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 5--Amendment to Electricity Safety Act 1998 s. 22 See: PART 5--AMENDMENT TO ELECTRICITY SAFETY ACT Act No. 1998 25/1998. Reprint No. 3 as at Victorian Legislation Parliamentary Documents 22. Acceptance of scheme 29 July 2002 and (1) For section 111(1)(a) of the Electricity Safety amending Act 1998 substitute-- 5 Act No. 40/2003. "(a) the Office is satisfied-- LawToday: www.dms. dpc.vic. (i) that the scheme is appropriate for the gov.au electric work to which it applies and complies with section 107(2) and the regulations relating to electricity safety 10 management schemes; or (ii) that the scheme is appropriate for the upstream network to which it applies and complies with section 107(2) and the regulations relating to electricity 15 safety management schemes; or (iii) that the scheme is appropriate for the electric work carried out at the premises to which it applies and complies with section 107(2) and the regulations 20 relating to electricity safety management schemes; and (ab) the Office is satisfied that the level of safety to be provided by the scheme is not less than the level of safety which is required to be 25 provided by this Act and the regulations; and". (2) Section 113(3) of the Electricity Safety Act 1998 is repealed. 11 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 5--Amendment to Electricity Safety Act 1998 s. 23 23. Electric Line Clearance Consultative Committee In section 87(5)(e) of the Electricity Safety Act 1998 for "Natural Resources" substitute "Sustainability". Victorian Legislation Parliamentary Documents __________________ 12 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Part 6--Amendments to Other Acts s. 24 PART 6--AMENDMENTS TO OTHER ACTS See: 24. Gas Industry (Residual Provisions) Act 1994 Act No. Victorian Legislation Parliamentary Documents 112/1994. Clause 11(1) of Schedule 5 to the Gas Industry Reprint No. 5 (Residual Provisions) Act 1994 is repealed. as at 1 September 2001 and amending Act Nos 91/2000, 62/2001, 11/2002 and 51/2002. See: 25. Federal Courts (Consequential Amendments) Act 5 Act No. 2000 22/2000. After section 2(1) of the Federal Courts (Consequential Amendments) Act 2000 insert-- "(1A) Sections 22 and 23 are deemed to have come 10 into operation on 8 March 2004.". Note: Sections 22 and 23 amend the Gas Pipelines Access (Victoria) Act 1998. 13 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

Energy Legislation (Regulatory Reform) Act 2004 Act No. Endnotes ENDNOTES Victorian Legislation Parliamentary Documents By Authority. Government Printer for the State of Victoria. 14 551165B.I1-22/4/2004 BILL LA CIRCULATION 22/4/2004

 


 

 


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