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ELECTRICITY ACT 1996 - SECT 23

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.



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