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Energy Legislation (Hardship, Metering and
Other Matters) Bill
Introduction Print
EXPLANATORY MEMORANDUM
General
This Bill amends the Electricity Industry Act 2000, the Energy Safe
Victoria Act 2005, the Gas Industry Act 2001 and the Pipelines Act 2005.
Clause Notes
PART 1--PRELIMINARY
Clause 1 sets out the purpose of the Bill.
Clause 2 is the commencement provision. The Bill, apart from Part 4, will
come into operation on the day after Royal Assent.
Part 4, which amends the Pipelines Act 2005 and makes a
consequential amendment to the Energy Safe Victoria Act 2005,
will come into operation on a day to be proclaimed or, if it does
not come into operation before 1 July 2007, on that day.
This will allow commencement of Part 4 to be co-ordinated with
the commencement of the Pipelines Act 2005 which, subject to
earlier proclamation, must come into operation on 1 July 2007.
PART 2--AMENDMENT OF ELECTRICITY INDUSTRY
ACT 2000
Clause 3 substitutes Division 6 of Part 2 of the Electricity Industry Act
2000.
New section 41 provides for definitions used in the new Division,
and new section 42 sets out the objects of the new Division.
New section 43 provides that a licence to sell electricity will be
subject to a deemed condition requiring the licensee to submit a
financial hardship policy to the Essential Services Commission
for approval, and if required to do so, to the Minister.
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New section 44 empowers the Commission to issue guidelines in
relation to the development and implementation of financial
hardship policies.
New section 45 sets out the factors relevant to the Commission's
consideration of financial hardship policies submitted to it for its
approval. New sub-section (4) also provides that the
Commission may approve variations of approved policies or
replacement policies.
New section 46 empowers the Minister to require certain
licensees to submit financial hardship policies for approval by the
Minister. A policy approved by the Minister will remain in force
until a policy is approved by the Commission for that licensee.
New section 46A provides that a licence to sell electricity will be
subject to a deemed condition prohibiting the licensee from
disconnecting electricity supply to a domestic customer if the
customer has entered into, and is complying with, an agreement
under the licensee's approved financial hardship policy.
Clause 4 inserts a new Division 6A into Part 2 of the Electricity Industry
Act 2000.
New section 46B provides for definitions used in the new
Division and states that a "relevant licensee" is a licensee
determined by an Order to be the relevant licensee.
New section 46C provides that a relevant licensee's licence will
be subject to a deemed condition requiring compliance with an
Order in Council under new section 46D.
New section 46D empowers the Governor in Council to make
Orders with respect to advanced metering infrastructure,
including such matters as how to determine who is the relevant
licensee; minimum functionalities and standards required of
advanced metering infrastructure; the nature and timing of trials
of technologies; the minimum number of customers or supply
points required and the dates and location for the supply of
advanced metering infrastructure; dates by which the
infrastructure must become operational; responsibilities of
licensees when customers change retailers; and the regulation of
fees and charges.
New section 46E makes further provision for the general powers
applicable when making an Order under new section 46D.
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PART 3--AMENDMENT OF GAS INDUSTRY ACT 2001
Clause 5 inserts a new Division 4A into Part 3 of the Gas Industry Act
2001.
New section 48E provides for definitions used in the new
Division, and new section 48F sets out the objects of the new
Division.
New section 48G provides that a licence to sell gas will be
subject to a deemed condition requiring the licensee to submit a
financial hardship policy to the Essential Services Commission
for approval, and if required to do so, to the Minister.
New section 48H empowers the Commission to issue guidelines
in relation to the development and implementation of financial
hardship policies.
New section 48I sets out the factors relevant to the Commission's
consideration of financial hardship policies submitted to it for its
approval. New sub-section (4) also provides that the
Commission may approve variations of approved policies or
replacement policies.
New section 48J empowers the Minister to require certain
licensees to submit financial hardship policies for approval by the
Minister. A policy approved by the Minister will remain in force
until a policy is approved by the Commission for that licensee.
New section 48K provides that a licence to sell gas will be
subject to a deemed condition prohibiting the licensee from
disconnecting gas supply to a domestic customer if the customer
has entered into, and is complying with, an agreement under the
licensee's approved financial hardship policy.
PART 4--AMENDMENT OF OTHER ACTS
Clause 6 inserts a new section 132A into the Pipelines Act 2005.
The new section provides for licensees under that Act to pay
annual amounts to Energy Safe Victoria in respect of costs and
expenses incurred by Energy Safe Victoria in carrying out its
functions under the Act. The annual amounts are to be
determined by the Minister.
Clause 7 makes a consequential amendment to the Energy Safe Victoria
Act 2005 to ensure that money received under section 132A of
the Pipelines Act 2005 is paid into the General Account.
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