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ENERGY SAFE VICTORIA BILL 2005

                  Energy Safe Victoria Bill

                        Introduction Print

              EXPLANATORY MEMORANDUM


                                  General
The Bill makes amendments to the Electricity Safety Act 1998, the Gas
Safety Act 1997 and consequential amendments to other Acts, to provide for
the establishment of Energy Safe Victoria and the abolition of the Office of
Gas Safety ("OGS") and the Office of the Chief Electrical Inspector
("OCEI") upon its establishment.

                               Clause Notes

                      PART 1--PRELIMINARY
Clause 1   sets out the purposes of the Bill, which are to establish Energy
           Safe Victoria, to abolish OGS and OCEI and to make
           consequential amendments to the Electricity Safety Act 1998,
           the Gas Safety Act 1997 and to other Acts.

Clause 2   provides for the commencement of the Bill.
           The Bill, except clause 59, is to commence operation on a day to
           be proclaimed. If the Bill is not proclaimed before 30 December
           2005, it will commence operation on that day.
           Clause 59, which corrects a cross-reference error in section 6 of
           the Electricity Industry (Wind Energy Development) Act
           2004, has a retrospective commencement date of 23 November
           2004, the date on which that Act received the Royal Assent to
           ensure that section 6 operates correctly from its commencement.

Clause 3   sets out the definition of "Director" for the purposes of the Bill,
           which means the Director of Energy Safety appointed under
           Part 2 of the Bill.




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PART 2--ENERGY SAFE VICTORIA Division 1--Establishment, Powers and Functions Clause 4 establishes Energy Safe Victoria as a body corporate. Clause 5 provides for the objectives of Energy Safe Victoria. The clause provides that the objectives of Energy Safe Victoria are to perform its functions and exercise its powers in such a manner as it considers best achieves its objectives as specified in the Electricity Safety Act 1998, the Gas Safety Act 1997 and any other Act. Clause 6 provides for the functions of Energy Safe Victoria. The purpose of this clause is to confer upon Energy Safe Victoria those functions contained in the Bill, the Electricity Safety Act 1998, the Gas Safety Act 1997 and any other Act, or regulations made under those Acts. Clause 7 provides for the general powers of Energy Safe Victoria. This clause provides Energy Safe Victoria with such powers as are conferred on it by the Bill or any other Act, or the regulations made under the Bill or any other Act. In performing its functions, Energy Safe Victoria may do all other things necessary or convenient to be done for or in connection with, or as incidental to the achievement of its objectives or performance of its functions. Clause 8 authorises Energy Safe Victoria to establish such committees as it determines. Clause 9 authorises the appointment or engagement of employees or persons to assist Energy Safe Victoria, on terms and conditions that Energy Safe Victoria determines. Clause 10 provides Energy Safe Victoria with powers of delegation to employees of Energy Safe Victoria or committee members or, with the consent of the Minister, to other persons. Division 2--Director of Energy Safety Clause 11 provides that Energy Safe Victoria consists of the Director of Energy Safety (the "Director"). Clause 12 establishes the process for appointment of the Director by the Governor in Council, on the recommendation of the Minister. 2

 


 

Clause 13 provides for the term of appointment of the Director to be a period not exceeding five years, unless re-appointed, and for the appointment to be on such terms and conditions as determined by the Minister. Clause 14 provides for cessation of office, resignation and removal from office of the Director. Clause 15 provides that acting appointments may be made by the Governor in Council, on the recommendation of the Minister and on the terms and conditions as determined by the Minister. This clause further provides that an acting appointment must not continue for more than 6 months unless that person is re-appointed and that the Governor in Council may terminate an acting appointment at any time. Clause 16 provides that an act or decision of Energy Safe Victoria is not made invalid merely because of a defect or irregularity in connection with the appointment of the Director or a person acting as Director. Clause 17 requires the Director to disclose to the Minister direct or indirect pecuniary interests as soon as practicable after the relevant facts come to the Director's knowledge. Clause 18 provides that the Director is not liable for any act or omission done in good faith, in the exercise of a power or performance of a function, or in the reasonable belief that the act or omission was in the exercise of a power or performance of a function of Energy Safe Victoria. Division 3--Corporate Plan Clause 19 sets out corporate planning requirements in relation to Energy Safe Victoria, which must be in the form approved by the Minister and must include a statement of corporate intent, a business plan and financial statements, containing such information as the Minister requires. The clause further provides that Energy Safe Victoria must consult in good faith with the Minister and make such changes as are agreed between it and the Minister and provide the completed plan to the Minister and the Treasurer within 2 months after the commencement of the financial year. Clause 20 sets out the content requirements of the statement of corporate intent. 3

 


 

Clause 21 requires Energy Safe Victoria to act in accordance with its corporate plan, unless it has received the written approval of the Minister to do otherwise. Clause 22 provides that no act of Energy Safe Victoria is void merely because it has failed to comply with its corporate planning obligations. Division 4--Financial Provisions Clause 23 provides Energy Safe Victoria with the powers conferred on it by the Borrowing and Investment Powers Act 1987. Clause 24 requires Energy Safe Victoria to establish a general account and ensure that all money paid to it and fees and charges received or recovered by it under the Electricity Safety Act 1998 or the Gas Safety Act 1997 and all other money received by it or on its behalf is paid into that account. The clause also allows Energy Safe Victoria to pay costs and expenses incurred in carrying out its functions or powers and to pay remuneration, allowances or expenses of the Director and employees out of this account. Clause 25 establishes that a person who is or has been a Director or an employee, agent or contractor of Energy Safe Victoria must not make improper use of any information acquired only in the course of his or her duties. PART 3--INQUIRIES AND REPORTS Clause 26 authorises Energy Safe Victoria to conduct an inquiry on its own initiative following consultation with the Minister. Clause 27 requires Energy Safe Victoria to conduct an inquiry into any matter at the written notice of the Minister and this notice must also specify the terms of reference of the inquiry. The clause allows the Minister to specify the timeframe for the inquiry, require Energy Safe Victoria to consider specified matters, give Energy Safe Victoria direction as to the conduct of the inquiry and require Energy Safe Victoria to publish a draft report. Clause 28 sets out notification requirements with respect to an inquiry. 4

 


 

Clause 29 confers discretion on Energy Safe Victoria as to the manner in which an inquiry is conducted and provides that Energy Safe Victoria is not bound by the rules of evidence. The clause further provides that Energy Safe Victoria must hold at least one public hearing in relation to an inquiry, however, it may determine that a hearing or part of a hearing be held in private if it satisfied that it would be in the public interest or if the evidence is of a confidential or commercially-sensitive nature. Clause 30 provides Energy Safe Victoria with powers relating to inquiries. This clause allows Energy Safe Victoria to summons any person to provide information, documents or to appear before it to give evidence. Failure to obey such a summons, without lawful excuse is an offence, the penalty being 60 penalty units. It is a lawful excuse to disobey a summons of Energy Safe Victoria if compliance may incriminate a person or make that person liable to a penalty. The clause further imposes a penalty where a person gives false or misleading information to Energy Safe Victoria and imposes a penalty where a person threatens, intimidates, or coerces another person, or causes another person to suffer loss, injury or disadvantage because that person assists or intends to assist an inquiry undertaken by Energy Safe Victoria. This clause also provides protection from certain liabilities for persons who in good faith make a statement or give a document or information to Energy Safe Victoria in connection with an inquiry. Clause 31 requires Energy Safe Victoria to submit a copy of its final report on an inquiry to the Minister who must table it in Parliament and make it publicly available. If the final report contains confidential or commercially-sensitive information, it must be divided into 2 separate documents. The requirement relating to tabling in Parliament and making the report publicly available will relate only to the non-confidential part of the report. Clause 32 enables Energy Safe Victoria to deal with any other matter that it considers should be the subject of a report to the Minister, either in its final report or a special report. 5

 


 

PART 4--GENERAL Clause 33 enables the Governor in Council to make regulations for or with respect to prescribing any matter or thing authorised or required to be prescribed or necessary to be prescribed for the carrying of the Bill into effect. PART 5--TRANSITIONAL PROVISIONS Division 1--Introductory Clause 34 defines "chief electrical inspector", "commencement day", "Director of Gas Safety", "OCEI" and "OGS" for the purposes of Part 5. Division 2--Office of the Chief Electrical Inspector Clause 35 abolishes OCEI on the commencement day (the date of commencement of Part 5 of the Bill) and provides for Energy Safe Victoria to be the successor in law of OCEI. The clause also transfers rights, assets, liabilities and obligations of OCEI to Energy Safe Victoria and substitutes Energy Safe Victoria as a party in any proceedings, contract, agreement or arrangement commenced by OCEI and continues any matter or thing commenced by OCEI. Clause 36 makes provision for the transfer of the person who holds the office of chief electrical inspector and employees of OCEI to Energy Safe Victoria. Sub-clause (1) deems the person who holds the office of the chief electrical inspector on the commencement day to be an employee of Energy Safe Victoria on the terms and conditions determined by the Minister and with the same accrued and accruing entitlements as applied to that person immediately prior to that day unless that person is appointed as Director with effect from that day. Sub-clause (2) deems an employee of OCEI on the commencement day to be an employee of Energy Safe Victoria on the same terms and conditions and with the same accrued and accruing entitlements as applied to that person immediately prior to that day. Sub-clause (3) provides that the service of a person deemed to be an employee of Energy Safe Victoria is regarded as being continuous with their prior service with OCEI. 6

 


 

Sub-clause (4) provides that nothing in clause 36 prevents an employee of OCEI from resigning or being dismissed in accordance with the terms and conditions of his or her employment. Clause 37 deems a reference in any Act (other than the Bill) or instrument made under any Act or in any other document to OCEI to be a reference to Energy Safe Victoria from the commencement day unless the context otherwise requires. Clause 38 deems a reference in any Act (other than the Bill) or instrument made under any Act or in any other document to the chief electrical inspector to be a reference to the Director so far as it relates to any period after the commencement day unless the context otherwise requires. Division 3--Office of Gas Safety Clause 39 abolishes OGS on the commencement day, and provides for Energy Safe Victoria to be the successor in law of OGS. The clause also transfers rights, assets, liabilities and obligations of OGS to Energy Safe Victoria, substitutes Energy Safe Victoria as a party in any proceedings, contract, agreement or arrangement commenced by OGS and continues any matter or thing commenced by OGS. Clause 40 provides for the transfer of the person who holds the office of Director of Gas Safety and employees of OGS to Energy Safe Victoria. Sub-clause (1) deems the holder of the office of the Director of Gas Safety on the commencement day to be an employee of Energy Safe Victoria on the terms and conditions determined by the Minister and with the same accrued and accruing entitlements as applied to that person immediately prior to that day unless that person is appointed Director with effect from that day. Sub-clause (2) deems an employee of OGS on the commencement day to be an employee of Energy Safe Victoria on the same terms and conditions and with the same accrued and accruing entitlements as applied to that person immediately prior to that day. Sub-clause (3) provides that the service of a person deemed to be an employee of Energy Safe Victoria is regarded as being continuous with their prior service with OGS. 7

 


 

Sub-clause (4) provides that nothing in this clause prevents an employee of the OGS from resigning or being dismissed in accordance with the terms and conditions of his or her employment. Clause 41 deems a reference in any Act (except the Bill) or instrument made under any Act or in any other document to OGS to be a reference to Energy Safe Victoria from the commencement day unless the context otherwise requires. Clause 42 deems a reference in any Act (except the Bill) or instrument made under any Act or in any other document to the Director of Gas Safety to be a reference to the Director so far as it relates to any period after the commencement day unless the context otherwise requires. Division 4--Confidentiality Clause 43 extends the application of the offence provision in clause 25 to persons who have been the chief electrical inspector or the Director of Gas Safety or an employee, agent or contractor of OCEI or OGS to ensure that the confidentiality of information acquired before the commencement day continues to be protected. PART 6--AMENDMENT OF OTHER ACTS Division 1--Amendment of Electricity Safety Act 1998 Clause 44 provides for the insertion of the definitions of "Director" and "Energy Safe Victoria" into the Electricity Safety Act 1998. Clause 45 substitutes a new Part 2 into the Electricity Safety Act 1998, which provides for the objectives, functions and funding in relation to Energy Safe Victoria. The objectives, functions and funding provisions are essentially in the same terms as the provisions relating to OCEI being replaced by the new Part 2. Clause 46 substitutes section 141B of the Electricity Safety Act s1998. This is an amendment consequential to the establishment of Energy Safe Victoria and enables the Director to delegate certain functions and powers to an employee of Energy Safe Victoria with the consent of the Minister. 8

 


 

Clause 47 repeals section 159 of the Electricity Safety Act 1998, which is a transitional provision that provides for continuation of OCEI and the person holding the office of the chief electrical inspector. This provision is now redundant as the body and office no longer exist. Clause 48 provides for consequential amendments to the Electricity Safety Act 1998 regarding references to "The Office", "the Office" and the "chief electrical inspector". The amendments are set out in Schedule 1 to the Bill. Division 2--Amendment of Gas Safety Act 1997 Clause 49 provides for the insertion of the definitions of "Director" and "Energy Safe Victoria" into the Gas Safety Act 1997. It also repeals the definition of "Office" and amends the definition of "Type A appliance". Clause 50 substitutes a new Part 2 into the Gas Safety Act 1997, which provides for the objectives, functions and funding in relation to Energy Safe Victoria. The objectives, functions and funding provisions are essentially in the same terms as the provisions relating to OGS being replaced by the new Part 2. Clause 51 repeals section 123 of the Gas Safety Act 1997, which is a transitional provision that provides for continuation of OGS and the person holding the office of the Director of Gas Safety. This provision is now redundant as the body and office no longer exist. Clause 52 makes consequential amendments to references to "The Office" and "the Office" in the Gas Safety Act 1997 as set out in Schedule 2 to the Bill. Division 3--Amendment of Other Acts Clause 53 makes a consequential amendment to Schedule 1 of the Borrowing and investment Powers Act 1987 as a result of the establishment of Energy Safe Victoria. Clause 54 makes a consequential amendment to section 241(2A) of the Building Act 1993 as a result of the establishment of Energy Safe Victoria. 9

 


 

Clause 55 makes amendments to the Electricity Industry Act 2000 that are consequential to the establishment of Energy Safe Victoria, except sub-clause (1) which makes an amendment to correct an error in section 35(2) of that Act. Clause 56 makes amendments to the Gas Industry Act 2001 that are consequential to the establishment of Energy Safe Victoria, as well as miscellaneous amendments to that Act. Clause 57 makes an amendment to section 96A of the Gas Industry (Residual Provisions) Act 1994 consequential to the establishment of Energy Safe Victoria. Clause 58 makes an amendment to the State Electricity Commission Act 1958 that is consequential to the chief electrical inspector going out of office. Clause 59 amends section 6 of the Electricity Industry (Wind Energy Development) Act 2004 to correct a cross-reference error in proposed new section 15A(1B) of the Electricity Industry Act 2000, which was inserted by section 6. SCHEDULES SCHEDULE 1 Schedule 1 substitutes references to "The Office" and "the Office" with references to "Energy Safe Victoria" and references to the chief electrical inspector with references to the Director throughout the Electricity Safety Act 1998. SCHEDULE 2 Schedule 2 substitutes references to "The Office" and "the Office" with references to "Energy Safe Victoria" throughout the Gas Safety Act 1997. 10

 


 

 


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