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ENERGY LEGISLATION (FURTHER MISCELLANEOUS AMENDMENTS) BILL 2002

    Energy Legislation (Further Miscellaneous
               Amendments) Bill

                          Circulation Print

               EXPLANATORY MEMORANDUM

The Bill amends the Electricity Safety Act 1998, the Gas Safety Act 1997,
the Electricity Industry Act 2000 and the Gas Industry Act 2001.
The principal purpose of the Bill is to provide complementary amendments to
the Electricity Safety Act 1998 and the Gas Safety Act 1997 to abolish the
Electrical Appeals Board and the Gas Appeals Board established under those
Acts and to transfer the appellate jurisdiction of each of those Boards to the
review jurisdiction of the Victorian Civil and Administrative Tribunal.
The Bill also amends the Electricity Safety Act 1998 to vary the ratings
which a fire control authority may assign to areas within Victoria for the
purposes of that Act and the regulations, from "high" and "very high" to
"low" and "high". The Bill also amends the Electricity Industry Act 2000
to allow amendment of the Victorian Electricity Supply Industry Tariff Order
to clarify its application or otherwise to tariffs charged by VENCorp.
The Bill also provides complementary amendments to the Electricity
Industry Act 2000 and the Gas Industry Act 2001 to clarify that the cross
ownership exemption for acquisitions that have been cleared by the
Australian Competition and Consumer Commission may be granted
irrespective of whether or not the person has made an application for
authorisation in respect of the acquisition under the Trade Practices Act 1974
of the Commonwealth.

                      PART 1--PRELIMINARY
Clause 1    sets out the main purposes of the Act, which are to make
            amendments to the Electricity Safety Act 1998, the Gas Safety
            Act 1997, the Electricity Industry Act 2000 and the Gas
            Industry Act 2001.
            Paragraphs (a)(i) and (b) provide that the purpose of amending
            the Electricity Safety Act 1998 and the Gas Safety Act 1997 is
            to abolish the Electrical Appeals Board and the Gas Appeals
            Board (respectively) and to transfer the jurisdiction of each Board
            to the Victorian Civil and Administrative Tribunal.



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541264                                         BILL LA CIRCULATION 24/4/2002

 


 

Paragraph (a)(ii) sets out the additional purpose of amending the Electricity Safety Act 1998, that is, to make amendments with respect to the fire hazard ratings that may be assigned by a fire control authority for the purposes of that Act and the regulations. Paragraphs (c)(ii) and (d) provide that the purpose of amending the Electricity Industry Act 2000 and the Gas Industry Act 2001 is to clarify a cross ownership exemption in those Acts. Paragraph (c)(i) sets out the additional purpose of amending the Electricity Industry Act 2000, that is, to allow for further amendment of the Tariff Order in relation to tariffs charged by VENCorp. Clause 2 provides for the commencement of the Act. Sub-clause (1) allows for commencement on the day after Royal Assent of the provisions of the Act which provide for its purpose and commencement and which amend section 80 of the Electricity Safety Act 1998 with respect to the assignment of fire hazard ratings for the purposes of that Act and the regulations. Sub-clause (1) also allows for the commencement on the day after Royal Assent of the provisions of the Act which amend the Electricity Industry Act 2000 to provide for variation of the Tariff Order and which amend the Electricity Industry Act 2000 and the Gas Industry Act 2001 to clarify a cross ownership exemption under those Acts. Sub-clause (2) allows for commencement by proclamation of the remaining provisions of the Act. Sub-clause (3) provides that if any provision of this Act does not come into operation before 31 December 2002, it will come into operation on that date. PART 2--AMENDMENT OF ELECTRICITY SAFETY ACT 1998 Clause 3 amends the Electricity Safety Act 1998 by inserting into section 3 of that Act definitions of "decision" and "Tribunal". It defines "decision" for the purposes of Part 6 of the Electrical Safety Act 1998 as including a prohibition, requirement or direction. "Tribunal" means the Victorian Civil and Administrative Tribunal established by the Victorian Civil and Administrative Tribunal Act 1998. 2

 


 

Clause 4 substitutes a new Part 6 of the Electricity Safety Act 1998, which includes a new section 69. Sub-section (1) of the new section 69 provides that a person who is aggrieved by a decision of the Office of the Chief Electrical Inspector listed in sub-section (2) may apply to the Victorian Civil and Administrative Tribunal for review of the decision. Sub-sections (2) to (4) and sub-section (7) of the new section 69 define the decisions of the Office on which an application for review may be made. The decisions on which an application for review may be made are the same as those for which an appeal could be made to the Electrical Appeals Board with one exception. Section 69 does not allow for further decisions of the Office to be prescribed by regulation as being subject to review by the Tribunal. Sub-section (5) and sub-section (6) of the new section 69 specify the period in which an application for review must be made. Clause 5 substitutes a new section 80(a) of the Electricity Safety Act 1998, which enables a fire control authority to assign a fire hazard rating of "low" or "high" to any area of land in Victoria for the purposes of the Electricity Safety Act 1998 or the regulations. Clause 6 substitutes a new section 128 of the Electricity Safety Act 1998. Sub-section (1) of the new section 128 requires that if an enforcement officer exercises a power of entry under Division 2 of Part 11 of the Electricity Safety Act 1998, the officer must report the exercise of power to the Office of the Chief Electrical Inspector within 3 business days after the entry. Previously, it was necessary to report the exercise of a power of entry to the Electrical Appeals Board. Sub-section (2) sets out the details that the written report must contain. Sub-section (3) requires that the Office keep a register containing the particulars of all matters reported to it under the new section 128. Sub-section (4) requires that the Office keep as part of that register, the register kept by the Electrical Appeals Board under the former section 128. Clause 7 substitutes "Tribunal" for "Electrical Appeals Board" in section 144(2) of the Electricity Safety Act 1998. 3

 


 

Clause 8 repeals paragraphs (c) and (e) of section 157(1) of the Electricity Safety Act 1998. These regulation-making powers are no longer required as they relate to the Electrical Appeals Board. The existing regulations will be revoked. Clause 9 substitutes a new section 163 of the Electricity Safety Act 1998, which gives effect to the transitional provisions in the new Schedule 1 to that Act. Clause 10 repeals sections 164 to 170 of the Electricity Safety Act 1998. These are amending provisions. Their operation is now spent. Clause 11 substitutes a new Schedule 1 into the Electricity Safety Act 1998. Clause 1 of the new Schedule 1 defines certain terms used in the Schedule. "Board" is defined as the Electrical Appeals Board established under the Electricity Safety Act 1998, as in force prior to the "commencement day". "Commencement day" is defined as the day on which clause 9 of the Bill comes into operation. "VCAT Act" is defined as the Victorian Civil and Administrative Tribunal Act 1998. Clause 2 of the new Schedule 1 abolishes the Electrical Appeals Board. Sub-clause (1) provides that the Electrical Appeals Board is abolished on the commencement day and its members go out of office on that day. Sub-clause (2) provides that, on and from the commencement day, a reference to the Electrical Appeals Board must be construed as a reference to the Victorian Civil and Administrative Tribunal, unless the context otherwise requires. Sub-clause (3) provides that sub-clause (1) does not affect any other provisions of the new Schedule which deal with proceedings before the Electrical Appeals Board or its continued operation. Sub-clause (4) provides that, if the Board continues for certain purposes, provisions of the Electricity Safety Act 1998 relating to its membership and procedure continue to apply for those purposes. Clause 3(1) of the new Schedule 1 requires that a matter pending before the Board be heard and determined by the Tribunal if, immediately before the commencement day, the Electrical Appeals Board had not begun to hear the matter or had not been presented with any evidence on any material question of fact. Those proceedings will be taken to have been commenced in, and will be heard and determined by the Tribunal. Sub-clause (1), 4

 


 

among other things, sets out the procedures that will apply, and the powers, functions and duties of the Tribunal in relation to such proceedings. Sub-clause (2) of Clause 3 requires that a matter be heard and determined by the Electrical Appeals Board if, immediately before the commencement day, the Board had begun to hear the matter and had been presented with evidence on a material question of fact. Sub-clause (2) provides that those matters will be heard and determined in accordance with the provisions of the Electricity Safety Act 1998 that were in force before the commencement day. Clause 4 of the new Schedule 1 provides for enforcement of determinations or orders which are made by the Electrical Appeals Board before the commencement day. Clause 5 of the new Schedule 1 confers power on the Tribunal to resolve any transitional difficulties arising in proceedings before the Board or the Tribunal. Clause 6 of the new Schedule 1 provides for the transfer of the registers and documents kept by the Board prior to its abolition. PART 3--AMENDMENT OF GAS SAFETY ACT 1997 Clause 12 amends the Gas Safety Act 1997 by inserting into section 3 of that Act definitions of "business day", "decision" and "Tribunal". It defines "business day" as a day other than a Saturday or a Sunday or a public holiday appointed under the Public Holidays Act 1993. A "decision" for the purposes of Part 4 of the Gas Safety Act 1997 is defined to include a refusal, declaration, condition, prohibition or requirement. "Tribunal" means the Victorian Civil and Administrative Tribunal established by the Victorian Civil and Administrative Tribunal Act 1998. Clause 13 substitutes a new Part 4 of the Gas Safety Act 1997, which includes a new section 80. Sub-section (1) of the new section 80 provides that a person who is aggrieved by a decision of the Office of Gas Safety listed in sub-section (2) of section 80 may apply to the Victorian Civil and Administrative Tribunal for review of the decision. Sub-sections (2) and (3) of the new section 80 define the decisions of the Office on which an application for review may be made. The decisions on which an application for review may 5

 


 

be made are the same as those for which an appeal could be made to the Gas Appeals Board with one exception. Section 80 does not allow for further decisions of the Office to be prescribed by regulation as being subject to review by the Tribunal. Sub-sections (4) and (5) specify the period in which an application for review must be made. Clause 14 substitutes a new section 93 of the Gas Safety Act 1997. Sub-section (1) of the new section 93 requires that if an inspector exercises a power of entry allowed under Division 2 of Part 5 of the Gas Safety Act 1997, the inspector must report the exercise of that power to the Director of Gas Safety within 3 business days after the exercise of the power of entry. Previously, it was necessary to report the exercise of a power of entry to the Gas Appeals Board. Sub-section (2) sets out the details that the written report must contain. Sub-section (3) requires the Director to keep a register containing all the particulars of all the matters reported to the Director under the new section 93. Sub-section (4) requires that as part of the register, the Director keep the register kept by the Gas Appeals Board under the former section 93. Clause 15 substitutes "Tribunal" for "Gas Appeals Board" in section 111(2) of the Gas Safety Act 1997. Clause 16 substitutes "Tribunal" for "Gas Appeals Board" in section 113(2) of the Gas Safety Act 1997. Clause 17 repeals paragraphs (z) and (bb) of section 118(1) of the Gas Safety Act 1997. These regulation-making powers are no longer required as they relate to the Gas Appeals Board. The existing regulations will be revoked. Clause 18 inserts a new section 127 into the Gas Safety Act 1997 which gives effect to the transitional provisions in the new Schedule 1. Clause 19 substitutes a new Schedule 1 into the Gas Safety Act 1997. Clause 1 of the new Schedule 1 defines certain terms used in the Schedule. "Board" is defined as the Gas Appeals Board established under the Gas Safety Act 1997 as in force immediately before the "commencement day". "Commencement day" is defined as the day on which clause 18 of the Bill comes 6

 


 

into operation. "VCAT Act" is defined as the Victorian Civil and Administrative Tribunal Act 1998. Clause 2 of the new Schedule 1 abolishes the Gas Appeals Board. Sub-clause (1) provides that the Gas Appeals Board is abolished on the commencement day and its members go out of office on that day. Sub-clause (2) provides that on and from the commencement day, a reference to the Gas Appeals Board is to be construed as a reference to the Tribunal, unless the context otherwise requires. Sub-clause (3) provides that sub-clause (1) does not affect any other provisions of the new Schedule which deal with proceedings before the Gas Appeals Board or which provide for its continuation. Sub-clause (4) provides that, if the Gas Appeals Board continues for certain purposes, provisions of the Gas Safety Act 1997 which relate to its membership and procedure will continue to apply for those purposes. Clause 3(1) of the new Schedule 1 provides that if, immediately before the commencement day a matter is pending before the Gas Appeals Board but the Board has not begun to hear the matter, or the Board has not been presented with any evidence on any material question of fact, the matter will be taken to have been commenced in, and will be heard and determined by, the Tribunal. Sub-clause (1), among other things, sets out the procedures that will apply, and the powers, functions and duties of the Tribunal in relation to such proceedings. Sub-clause (2) of Clause 3 requires that a matter be heard and determined by the Gas Appeals Board, if, immediately before the commencement day the Board had begun to hear the matter and had been presented with evidence on a material question of fact. Sub-clause (2) provides that those matters will be heard and determined in accordance with the provisions of the Gas Safety Act 1997 that were in force immediately before the commencement day. Clause 4 of the new Schedule 1 provides for enforcement of determinations or orders which are made by the Gas Appeals Board before the commencement day. Clause 5 of the new Schedule 1 confers power on the Victorian Civil and Administrative Tribunal to resolve transitional difficulties arising in proceedings pending before the Board or the Tribunal. 7

 


 

Clause 6 of the new Schedule 1 provides for the transfer of the registers and documents kept by the Board prior to its abolition. PART 4--AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 Clause 20 inserts a new paragraph (aa) into section 14(3) of the Electricity Industry Act 2000, which enables variations to clause 4.5 of the Tariff Order to be made to clarify the application or non- application of the Tariff Order to the regulation of tariffs charged by VENCorp. Clause 21 inserts a new sub-section (8AA) into section 68 of the Electricity Industry Act 2000, which provides that the cross-ownership exemption in sub-section (8)(b)(ii) applies irrespective of whether the person applying for the exemption has made an application under the Trade Practices Act 1974 for the authorisation by the ACCC of the acquisition. PART 5--AMENDMENT OF GAS INDUSTRY ACT 2001 Clause 22 inserts a new sub-section (3A) into section 129 of the Gas Industry Act 2001, which provides that the cross-ownership exemption in sub-section (3)(b)(ii) applies irrespective of whether the person applying for the exemption has made an application under the Trade Practices Act 1974 for the authorisation by the ACCC of the acquisition. 8

 


 

 


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