23—Licences authorising operation of transmission or distribution
network
(1) The Commission
must make a licence authorising the operation of a
transmission or distribution network subject to conditions determined by the
Commission—
(a)
requiring compliance with directions of the system controller; and
(b)
requiring the electricity entity not to do anything affecting the
compatibility of the entity's transmission or distribution network with any
electricity generating plant or transmission or distribution network so as to
prejudice public safety or the security of the power system of which the
transmission or distribution network forms a part; and
(c)
requiring the electricity entity—
(i)
to prepare, maintain and periodically revise a safety,
reliability, maintenance and technical management plan dealing with matters
prescribed by regulation; and
(ii)
to obtain the approval of the Technical Regulator—
(A) to the plan (prior to the commencement
of the operation of the transmission or distribution system to which the plan
relates); and
(B) to any revision of the plan; and
(iii)
to comply with the plan as approved from time to time;
and
(iv)
to audit from time to time the entity's compliance with
the plan and report the results of those audits to the Technical Regulator;
and
(d)
requiring the electricity entity to provide to AEMO such information as it may
reasonably require for the performance of its functions; and
(e)
requiring the electricity entity to maintain specified accounting records and
to prepare accounts according to specified principles; and
(f)
requiring the electricity entity to inform persons seeking or in receipt of
network services of the terms on which the services are provided (including
the charges for the services) and of any changes in those terms; and
(g)
requiring the electricity entity to carry out work to locate powerlines
underground in accordance with a program established under Part 5A; and
(h)
requiring the electricity entity to comply with—
(i)
specified provisions for or relating to the granting to
other electricity entities of rights to use or have access to the entity's
transmission or distribution network (on non-discriminatory terms) for the
transmission or distribution of electricity by the other entities; and
(ii)
any scheme that the Commission may establish by a code
made under the Essential Services Commission Act 2002 for the resolution
of disputes in relation to such rights; and
(i)
requiring the electricity entity to comply with—
(i)
specified provisions for or relating to the granting to
all electricity entities and customers of a class specified in the condition
of rights to use or have access to the entity's transmission or distribution
network (on non-discriminatory terms) to obtain electricity from the network;
and
(ii)
any scheme that the Commission may establish by a code
made under the Essential Services Commission Act 2002 for the resolution
of disputes in relation to such rights; and
(j)
requiring the electricity entity to comply with code provisions as in force
from time to time (which the Commission must make under the Essential
Services Commission Act 2002 ) establishing a scheme—
(i)
for other bodies to use or have access to the entity's
transmission or distribution network for telecommunications purposes (subject
to requirements as to technical feasibility and preservation of visual
amenity); and
(ii)
for the resolution of disputes in relation to such use or
access by a person other than the Commission who is appointed by the
Commission; and
(k)
requiring the electricity entity to participate in an ombudsman scheme—
(i)
that applies to the electricity supply industry and to
other regulated industries (within the meaning of the
Essential Services Commission Act 2002 ) prescribed by regulation; and
(ii)
the terms and conditions of which are approved by the
Commission; and
(l)
requiring the electricity entity to maintain insurance against any liability
for causing a bushfire and to provide the Commission with a certificate of the
insurer or the insurance broker by whom the insurance was arranged certifying
(in a manner approved by the Commission) that the insurance is adequate and
appropriate given the nature of the operations carried out under the entity's
licence and the risks entailed in those operations; and
(m) in
the case of a licence authorising the operation of a transmission
network—
(i)
requiring the business of the operation of the
transmission network authorised by the licence to be kept separate from any
other business of the electricity entity or any other person in the manner and
to the extent specified in the conditions; and
(ii)
requiring the electricity entity—
(A) to grant to each electricity entity
holding a licence authorising the generation of electricity or the operation
of a distribution network rights to use or have access to the entity's
transmission network that are necessary for the purpose of ensuring the proper
integrated operation of the State's power system and the proper carrying on of
the operations authorised by the entity's licence; and
(B) in the absence of agreement as to the
terms on which such rights are to be granted, to comply with any determination
of the Commission as to those terms; and
(C) to comply with any code provisions in
force from time to time under the Essential Services Commission Act 2002
establishing a scheme for the resolution of disputes in relation to such
rights; and
(n) in
the case of a licence authorising the operation of a distribution
network—
(i)
requiring the business of the operation of the
distribution network authorised by the licence to be kept separate from any
other business of the electricity entity or any other person in the manner and
to the extent specified in the conditions; and
(ii)
requiring the electricity entity—
(A) to grant to each electricity entity
holding a licence authorising the generation of electricity or the operation
of a transmission network rights to use or have access to the entity's
distribution network that are necessary for the purpose of ensuring the proper
integrated operation of the State's power system and the proper carrying on of
the operations authorised by the entity's licence; and
(B) in the absence of agreement as to the
terms on which such rights are to be granted, to comply with any determination
of the Commission as to those terms; and
(C) to comply with any code provisions in
force from time to time under the Essential Services Commission Act 2002
establishing a scheme for the resolution of disputes in relation to such
rights; and
(iii)
requiring the electricity entity to establish customer
consultation processes of a specified kind; and
(iv)
requiring or relating to standard contractual terms and
conditions to apply to the supply of electricity to small customers or
customers of a prescribed class; and
(v)
requiring the electricity entity to comply with code
provisions as in force from time to time (which the Commission must make under
the Essential Services Commission Act 2002 ) imposing minimum standards
of service for customers that are at least equivalent to the actual levels of
service for such customers prevailing during the year prior to the
commencement of this section and take into account relevant national
benchmarks developed from time to time, and requiring the entity to monitor
and report on levels of compliance with those minimum standards; and
(vi)
requiring the electricity entity to comply with code
provisions as in force from time to time (which the Commission must make under
the Essential Services Commission Act 2002 ) limiting the grounds on
which the supply of electricity to customers may be disconnected and
prescribing the process to be followed before the supply of electricity is
disconnected; and
(vii)
requiring a specified process to be followed to resolve
disputes between the electricity entity and customers as to the supply of
electricity; and
(viii)
requiring the electricity entity to enter into and comply
with an agreement (on terms approved from time to time by the Commission) with
each person holding a licence authorising the retailing of electricity who
provides services to the same customers as the entity as to the co-ordination
of the provision of services to those customers; and
(x)
requiring the electricity entity—
(A) to investigate, before it makes any
significant expansion of the distribution network or the capacity of the
distribution network, whether it would be cost effective to avoid or postpone
such expansion by implementing measures for the reduction of demand for
electricity from the network; and
(B) to prepare and publish reports relating
to such demand management investigations and measures.
(1a) In addition, it
is a condition of a licence authorising the operation of a transmission or
distribution network that the holder of the licence—
(a)
prepare and maintain an internal switching manual in accordance with the
regulations; and
(b)
comply with any other requirements relating to switching prescribed in the
regulations.
(2) A condition of an
electricity entity's licence imposed under subsection (1)(h) is not to be
taken to require the granting to other electricity entities of rights to use
or have access to the entity's transmission or distribution network for the
support or use of electricity infrastructure of the other entities.
(5a) If an
electricity entity fails, within a period of 90 days from a date specified by
the Commission by written notice to the entity, to enter into an agreement
with another electricity entity specified by the Commission as required by a
condition of the entity's licence imposed under subsection (1)(n)(viii),
the entities will, if the Commission so determines and notifies the entities
in writing, be taken to have entered into such an agreement containing terms
specified in the notice.
(5b) The Commission
may, by written notice to the electricity entities bound by—
(a) an
agreement entered into as required by conditions of their licences imposed
under subsection (1)(n)(viii) and section 24(2)(h); or
(b) an
agreement imposed under subsection (5a),
vary or substitute terms of the agreement.
(6) This section does
not limit the matters that may be dealt with by terms or conditions of a
licence authorising the operation of a transmission or distribution network.