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


NATIONAL ELECTRICITY (VICTORIA) AMENDMENT BILL 2007

                 PARLIAMENT OF VICTORIA

      National Electricity (Victoria) Amendment Bill
                            2007



                       TABLE OF PROVISIONS
Clause                                                                     Page
  1      Purpose                                                              1
  2      Commencement                                                         2
  3      New definitions inserted                                             2
  4      New Part 3 inserted                                                  4
         PART 3--MODIFICATION OF APPLICATION OF THE
         NATIONAL ELECTRICITY LAW                                             4
         13     Definitions                                                   4
         14     NEL provisions providing for access to distribution
                services do not apply during specified period                 4
         15     Modification of application of National Electricity
                Law and National Electricity Rules by Order                   5
         16     Certain provisions of NEL and Rules do not apply to
                Victorian distribution pricing determinations                 7
  5      New Part 4 inserted                                                  8
         PART 4--ECONOMIC REGULATORY DISTRIBUTION
         FUNCTIONS TRANSITIONAL ARRANGEMENTS                                  8
         17       Definitions                                                 8
         18       Meaning of distribution services                           10
         19       Meaning of relevant regulatory duty                        11
         20       Meaning of relevant regulatory function or power           12
         21       Specified distribution licence conditions                  12
         22       Specified ESC code or guideline provisions                 13
         23       Certain ESC regulatory functions, powers and duties
                  conferred and imposed on the AER                           13
         24       ESC ceases to have certain distribution system related
                  regulatory functions, powers and duties                    14
         25       Enforcement of Victorian distribution pricing
                  determination and distribution licences by AER             15
         26       ESC cannot enforce Victorian pricing determination
                  or certain distribution licence conditions                 16
         27       AER may request amendment of distribution licences
                  and distribution service related code or guideline         17




561046B.I-30/10/2007                   i      BILL LA INTRODUCTION 30/10/2007

 


 

Clause Page 28 Provision of information and assistance by ESC to the AER 17 29 Appeals against AER determinations 18 6 Statute law revision 19 7 Repeal of Act 19 ENDNOTES 20 561046B.I-30/10/2007 ii BILL LA INTRODUCTION 30/10/2007

 


 

PARLIAMENT OF VICTORIA Introduced in the Assembly National Electricity (Victoria) Amendment Bill 2007 A Bill for an Act to amend the National Electricity (Victoria) Act 2005 and for other purposes. The Parliament of Victoria enacts: 1 Purpose The main purpose of this Act is to amend the National Electricity (Victoria) Act 2005 to-- (a) provide for the modification of the 5 application of the National Electricity Law and the National Electricity Rules (as laws of Victoria) for a limited period; and (b) provide for transitional arrangements relating to the administration and enforcement by the 10 Australian Energy Regulator of the current distribution pricing determination made by the Essential Services Commission and certain conditions of distribution licences. 561046B.I-30/10/2007 1 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 2 2 Commencement (1) Subject to this section, this Act (except section 6) comes into operation on a day or days to be proclaimed. 5 (2) Section 6 comes into operation on the day after the day on which this Act receives the Royal Assent. (3) If a provision of this Act does not come into operation before 1 January 2009, it comes into 10 operation on that day. 3 New definitions inserted See: In section 3(1) of the National Electricity Act No. 8/2005 (Victoria) Act 2005-- and amending (a) before the definition of National Electricity Act No. 15 28/2007. (Victoria) Law insert-- LawToday: www. "2006-2010 distribution pricing legislation. determination means-- vic.gov.au (a) the determination of the ESC under Part 3 of the Essential 20 Services Commission Act 2001 made on 18 October 2005 applying to charges for connection to, and the use of, distribution systems in Victoria (as amended 25 in accordance with the decision of the appeal panel (within the meaning of the Essential Services Commission Act 2001) on 17 February 2006); and 30 (b) includes amendments made to that determination before the commencement of section 5 of the National Electricity (Victoria) Amendment Act 2007; 561046B.I-30/10/2007 2 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 3 Essential Services Commission or ESC means the Essential Services Commission established under section 7 of the Essential Services 5 Commission Act 2001;"; (b) in the definition of National Electricity (Victoria) Regulations, for "Act." substitute "Act;"; (c) after the definition of National Electricity 10 (Victoria) Regulations insert-- "Tariff Order has the same meaning as in the Electricity Industry Act 2000; Victorian distribution pricing determination means-- 15 (a) the 2006-2010 distribution pricing determination as amended from time to time; or (b) a determination under Part 3 of the Essential Services Commission 20 Act 2001 or the Tariff Order applying to charges for connection to, and the use of, distribution systems in Victoria that revokes and substitutes-- 25 (i) the 2006-2010 distribution pricing determination; or (ii) a determination applying to charges for connection to, and the use of, distribution 30 systems in Victoria-- as amended from time to time.". 561046B.I-30/10/2007 3 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 4 4 New Part 3 inserted After section 12 of the National Electricity (Victoria) Act 2005 insert-- "__________________ 5 PART 3--MODIFICATION OF APPLICATION OF THE NATIONAL ELECTRICITY LAW 13 Definitions In this Part-- NEL means the National Electricity Law set 10 out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia as in force for the time being; Victorian distribution pricing determination 15 end date means-- (a) 31 December 2010; or (b) if a Victorian distribution pricing determination provides that it will cease to have effect on a later 20 date--that date. 14 NEL provisions providing for access to distribution services do not apply during specified period (1) Despite section 6, during the specified 25 period-- (a) section 2A, Division 3B of Part 6, Part 10 and section 157 of the NEL (as each of those provisions apply to access to services provided by means of 30 a distribution system, or connection to a distribution system) do not apply as a law of Victoria; and 561046B.I-30/10/2007 4 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 4 (b) a Rule made for the purposes of any provision referred to in paragraph (a) does not have the force of law in Victoria. 5 (2) In this section-- specified period means the period-- (a) commencing on the day section 46 of the National Electricity (South Australia) (National Electricity 10 Law--Miscellaneous Amendments) Amendment Act 2007 of South Australia commences operation; and (b) ending on the Victorian 15 distribution pricing determination end date. 15 Modification of application of National Electricity Law and National Electricity Rules by Order 20 (1) The Minister, by Order published in the Government Gazette, may declare that, despite section 6-- (a) a provision of the NEL that relates to the economic regulation of the 25 provision of distribution services-- (i) does not apply as a law of Victoria until a date specified in the Order (being a date that is not after the Victorian distribution pricing 30 determination end date); (ii) ceases to apply as a law of Victoria for the period specified in the Order (not being a period that ends after the Victorian 561046B.I-30/10/2007 5 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 4 distribution pricing determination end date); (iii) applies as a law of Victoria with any modifications that are 5 specified in the Order for the period specified in the Order (not being a period that ends after the Victorian distribution pricing determination end date); 10 (b) a provision of the National Electricity Rules that relates to the economic regulation of the provision of distribution services-- (i) does not have the force of law in 15 Victoria until a date specified in the Order (being a date that is not after the Victorian distribution pricing determination end date); (ii) ceases to have the force of law in 20 Victoria for the period specified in the Order (not being a period that ends after the Victorian distribution pricing determination end date); 25 (iii) has the force of law in Victoria with any modifications that are specified in the Order for the period specified in the Order (not being a period that ends after 30 the Victorian distribution pricing determination end date). (2) Despite section 6-- (a) the NEL applies as a law of Victoria subject to any Order under 35 subsection (1) that is in force; 561046B.I-30/10/2007 6 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 4 (b) the National Electricity Rules have the force of law in Victoria subject to any Order under subsection (1) that is in force. 5 16 Certain provisions of NEL and Rules do not apply to Victorian distribution pricing determinations (1) Despite anything to the contrary in the National Electricity (Victoria) Law or the 10 National Electricity Rules, the provisions of that Law and those Rules that relate to the economic regulation of the provision of distribution services do not apply to a Victorian distribution pricing determination. 15 (2) To avoid doubt-- (a) the AER cannot perform any function or duty, or exercise any power, under a provision of the National Electricity (Victoria) Law or the National 20 Electricity Rules that relates to the economic regulation of the provision of distribution services under a Victorian distribution pricing determination; and (b) a Victorian distribution pricing 25 determination is not a distribution determination for the purposes of the National Electricity (Victoria) Law or the National Electricity Rules. (3) In this section-- 30 distribution services has the same meaning as in Chapter 10 of the National Electricity Rules.". 561046B.I-30/10/2007 7 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 5 New Part 4 inserted At the end of the National Electricity (Victoria) Act 2005 insert-- "__________________ 5 PART 4--ECONOMIC REGULATORY DISTRIBUTION FUNCTIONS TRANSITIONAL ARRANGEMENTS 17 Definitions In this Part-- 10 AMI Order means-- (a) the initial AMI Order; or (b) any other Order made by the Governor in Council under section 46D of the Electricity 15 Industry Act 2000 that is in force immediately before the transitional period commencement date; distribution licence has the same meaning as 20 in the Electricity Industry Act 2000; distribution services has the meaning given by section 18; initial AMI Order means the Order-- (a) made by the Governor in Council 25 under sections 15A and 46D of the Electricity Industry Act 2000; and (b) published in the Government Gazette on 28 August 2007; 561046B.I-30/10/2007 8 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 relevant distributor means-- (a) a distribution company within the meaning of the Electricity Industry Act 2000; or 5 (b) a person who-- (i) engages in the distribution or supply of electricity; and (ii) is exempted under an Order under section 17 of the 10 Electricity Industry Act 2000 from the requirement to obtain a licence under that Act in respect of that activity; 15 relevant regulatory duty has the meaning given by section 19; relevant regulatory function or power has the meaning given by section 20; relevant regulatory law or instrument 20 means-- (a) the Essential Services Commission Act 2001; or (b) the Electricity Industry Act 2000; or 25 (c) any regulation made under the Essential Services Commission Act 2001 or the Electricity Industry Act 2000; or (d) the Tariff Order; or 30 (e) an AMI Order; or 561046B.I-30/10/2007 9 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (f) an Order made by the Governor in Council (other than the Tariff Order or an AMI Order) under the Electricity Industry Act 2000; or 5 (g) the 2006-2010 distribution pricing determination; or (h) a distribution licence; or (i) a code or guideline made by the ESC; 10 specified distribution licence condition means a condition of a distribution licence specified by Order under section 21; specified ESC code or guideline provision 15 means a provision of a code or guideline published by the ESC specified by Order under section 22; transitional period commencement date means the date on which section 5 of 20 the National Electricity (Victoria) Amendment Act 2007 comes into operation. 18 Meaning of distribution services (1) Distribution services are services provided 25 by means of, or in connection with, a distribution system. (2) Without limiting subsection (1), distribution services include-- (a) services provided relating to the 30 connection to, and use of, a distribution system; and (b) services provided relating to augmentations to a distribution system; and 561046B.I-30/10/2007 10 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (c) metering services; and (d) services to facilitate access to services provided by means of, or in connection with, a distribution system; and 5 (e) the supply of electricity from a distribution system; and (f) services to facilitate the distribution of electricity; and (g) public lighting services. 10 19 Meaning of relevant regulatory duty A relevant regulatory duty is-- (a) a duty the ESC had, immediately before the transitional period commencement date, under a relevant regulatory law or 15 instrument that relates to the economic regulation of the provision of distribution services by a relevant distributor other than a duty-- (i) to (or refuse to) grant, vary, 20 revoke, or approve the transfer of, a distribution licence; or (ii) to make or amend a code or guideline that relates to the provision of distribution services; 25 or (b) a duty the ESC has under-- (i) a specified distribution licence condition; or (ii) a specified ESC code or guideline 30 provision. 561046B.I-30/10/2007 11 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 20 Meaning of relevant regulatory function or power A relevant regulatory function or power is-- (a) a function or power the ESC had, 5 immediately before the transitional period commencement date, under a relevant regulatory law or instrument that relates to the economic regulation of the provision of distribution services 10 by a relevant distributor other than a function or power-- (i) to (or refuse to) grant, vary, revoke, or approve the transfer of, a distribution licence; or 15 (ii) to make or amend a code or guideline that relates to the provision of distribution services; or (b) a function or power the ESC has 20 under-- (i) a specified distribution licence condition; or (ii) a specified ESC code or guideline provision. 25 21 Specified distribution licence conditions The Minister, by Order published in the Government Gazette, may specify a condition of a distribution licence that-- (a) relates to the provision of distribution 30 services and does not relate to the economic regulation of the provision of those services; and 561046B.I-30/10/2007 12 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (b) confers a function or power, or imposes a duty, on the ESC-- as a specified distribution licence condition if the Minister considers that the AER must 5 be conferred that function or power, or be subject to that duty, for the purposes of this Part. 22 Specified ESC code or guideline provisions 10 The Minister, by Order published in the Government Gazette, may specify a provision of a code or guideline published by the ESC that-- (a) relates to the provision of distribution 15 services and does not relate to the economic regulation of the provision of those services; and (b) confers a function or power, or imposes a duty, on the ESC-- 20 as a specified ESC code or guideline provision if the Minister considers that the AER must be conferred that function or power, or be subject to that duty, for the purposes of this Part. 25 23 Certain ESC regulatory functions, powers and duties conferred and imposed on the AER (1) On and from the transitional period commencement date the AER is, by force of 30 this subsection-- (a) conferred a relevant regulatory function or power; and (b) subject to a relevant regulatory duty. 561046B.I-30/10/2007 13 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (2) In addition, the AER has the functions and powers conferred, and is subject to the duties imposed, on it under this Part. (3) For the purposes of this Part, on and from the 5 transitional period commencement date, every reference to the Essential Services Commission (by whatever name described) in-- (a) a relevant regulatory law or instrument 10 (as that law or instrument relates to the economic regulation of the provision of distribution services by a relevant distributor); or (b) a specified distribution licence 15 condition; or (c) a specified ESC code or guideline provision-- is to be taken to be a reference to the AER unless the context otherwise requires. 20 24 ESC ceases to have certain distribution system related regulatory functions, powers and duties Despite anything to the contrary in any Act or instrument, on the transitional period 25 commencement date the ESC, by force of this section, ceases to have any function or power, or to be subject to any duty, under-- (a) a relevant regulatory law or instrument (as that law or instrument relates to the 30 economic regulation of the provision of distribution services by a relevant distributor); or 561046B.I-30/10/2007 14 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (b) a specified distribution licence condition; or (c) a specified ESC code or guideline provision. 5 25 Enforcement of Victorian distribution pricing determination and distribution licences by AER (1) This section applies if a relevant distributor has contravened or is contravening or, in the 10 opinion of the AER, is likely to contravene, as the case requires-- (a) a Victorian distribution pricing determination; or (b) a condition of a distribution licence that 15 requires compliance with-- (i) a relevant regulatory law or instrument (as that law or instrument relates to the economic regulation of the provision of 20 distribution services by the relevant distributor); or (ii) a code or a guideline published by the ESC that relates to the economic regulation of the 25 provision of distribution services by the distributor-- and the AER considers that the contravention or likely contravention is not of a trivial nature. 30 (2) The AER may serve a provisional order or a final order on the relevant distributor requiring the distributor-- 561046B.I-30/10/2007 15 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (a) to comply with-- (i) a Victorian distribution pricing determination; or (ii) the relevant distribution licence 5 condition; and (b) if a contravention has already occurred, to take such actions as are specified in the order to rectify the contravention. (3) Section 53(2) to (9) and section 54 of the 10 Essential Services Commission Act 2001 apply as if-- (a) reference in those sections to a provisional order or a final order were a reference to a provisional order or a 15 final order made and served under this section; and (b) a reference to the Commission were a reference to the AER. 26 ESC cannot enforce Victorian pricing 20 determination or certain distribution licence conditions On and from the transitional period commencement date, the ESC cannot make or serve a provisional order or a final order 25 under section 53 of the Essential Services Commission Act 2001 in respect of a contravention or likely contravention by a relevant distributor of, as the case requires-- (a) a Victorian distribution pricing 30 determination; or 561046B.I-30/10/2007 16 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 (b) a condition of a distribution licence that requires compliance with-- (i) a relevant regulatory law or instrument (as that law or 5 instrument relates to the economic regulation of the provision of distribution services by a relevant distributor); or (ii) a code or a guideline published by 10 the ESC that relates to the economic regulation of the provision of distribution services by a distributor. 27 AER may request amendment of 15 distribution licences and distribution service related code or guideline (1) The AER may request the ESC to amend-- (a) a distribution licence; or (b) a code or guideline published by the 20 ESC that relates to the provision of distribution services. (2) On receiving a request under subsection (1), the ESC may, after consulting with the AER, amend the distribution licence, code or 25 guideline (as the case may be). 28 Provision of information and assistance by ESC to the AER (1) Despite any other Act or law, the ESC is authorised, on its own initiative or at the 30 request of the AER-- (a) to provide the AER with such information (including information given in confidence) in the possession or control of the ESC that is reasonably 561046B.I-30/10/2007 17 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 5 required by the AER for the purposes of this Part; and (b) to provide the AER with such other assistance as is reasonably required by 5 the AER to perform a function or duty, or exercise a power, conferred or imposed under this Part. (2) Nothing done, or authorised to be done, by the ESC in acting under subsection (1)-- 10 (a) constitutes a breach of, or default under, an Act or other law; or (b) constitutes a breach of, or default under, a contract, agreement, understanding or undertaking; or 15 (c) constitutes a breach of a duty of confidence (whether arising by contract, in equity or by custom) or in any other way; or (d) constitutes a civil or criminal wrong; or 20 (e) terminates an agreement or obligation or fulfils any condition that allows a person to terminate an agreement or obligation, or gives rise to any other right or remedy; or 25 (f) releases a surety or any other obligee wholly or in part from an obligation. 29 Appeals against AER determinations (1) This section applies if the AER, in exercise or performance, or purported exercise or 30 performance, of a relevant regulatory function or power conferred on it under section 23, makes a determination (an AER determination) that-- 561046B.I-30/10/2007 18 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 s. 6 (a) revokes and substitutes the 2006-2010 distribution pricing determination or a subsequent determination applying to charges for connection to, and the use 5 of, distribution systems in Victoria; or (b) amends-- (i) the 2006-2010 distribution pricing determination; or (ii) a subsequent determination 10 applying to charges for connection to, and the use of, distribution systems in Victoria. (2) Sections 55 to 59 and section 62 of the Essential Services Commission Act 2001 15 apply to an AER determination as if-- (a) a reference in those sections to a determination of the Commission were a reference to the AER determination; and 20 (b) a reference to the Commission were a reference to the AER.". 6 Statute law revision In section 11(2) of the National Electricity (Victoria) Act 2005, in the definition of 25 VENCorp, for "established" substitute "continued". 7 Repeal of Act This Act is repealed on 1 January 2010. 561046B.I-30/10/2007 19 BILL LA INTRODUCTION 30/10/2007

 


 

National Electricity (Victoria) Amendment Bill 2007 Endnotes ENDNOTES By Authority. Government Printer for the State of Victoria. 561046B.I-30/10/2007 20 BILL LA INTRODUCTION 30/10/2007

 


 

 


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