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National Electricity Bill 2012

2010-2011-2012

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

National Electricity Bill 2012

 

No.      , 2012

 

(Mr Oakeshott)

 

 

 

A Bill for an Act to continue the National Electricity Law as a Commonwealth law, and for other purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                            16

Division 1—General                                                                                                     16

1............ Short title........................................................................................... 16

1A......... Commencement................................................................................. 17

Division 2—Application of this Act                                                                      18

1B......... Act binds the Crown......................................................................... 18

1D......... Extra-territorial application................................................................ 18

1E.......... Concurrent operation......................................................................... 18

1F.......... Act not to apply so as to exceed Commonwealth power................... 18

1G......... Acquisition of property..................................................................... 19

1H......... Commonwealth not to discriminate or give preference...................... 20

Division 3—Definitions                                                                                               21

2............ Definitions........................................................................................ 21

2A......... Meaning of access dispute ................................................................ 39

2AA...... Meaning of civil penalty provision and conduct provision ................ 39

2B......... Meaning of direct control network service ........................................ 40

2C......... Meaning of negotiated network service............................................. 40

2D......... Meaning of regulatory obligation or requirement ............................ 41

2E .......... Meaning of regulatory payment ........................................................ 42

2F.......... Form of regulation factors................................................................. 42

3............ Interpretation generally...................................................................... 43

6............ State or Territory Energy Ministers................................................... 43

6A......... Nominated distributors...................................................................... 43

7............ National electricity objective.............................................................. 45

7A......... Revenue and pricing principles......................................................... 45

8............ MCE statements of policy principles................................................. 46

9............ National Electricity Rules.................................................................. 47

10A....... Modification of corporations legislation by National Electricity Rules 47

Part 2—Participation in the National Electricity Market                             48

Division 1—Registration                                                                                            48

11.......... Electricity market activities................................................................ 48

12.......... Registration or exemption of persons participating in national electricity market      49

13.......... Exemptions for transmission system or distribution system owners, controllers and operators               50

14.......... Evidence of registration or exemption............................................... 50

Division 2—Regulated network service providers                                      51

14A....... Regulated transmission system operator must comply with transmission determination          51

14B....... Regulated distribution system operator must comply with distribution determination              51

Part 3—Functions and powers of the Australian Energy Regulator    52

Division 1—General                                                                                                     52

15.......... Functions and powers of AER.......................................................... 52

16.......... Manner in which AER performs AER economic regulatory functions or powers   53

Division 2—Search warrants                                                                                  55

19.......... Definitions........................................................................................ 55

20.......... Authorised person............................................................................. 55

20A....... Identity cards..................................................................................... 55

20B....... Return of identity cards..................................................................... 55

21.......... Search warrant.................................................................................. 56

22.......... Announcement of entry and details of warrant to be given to occupier or other person at premises         57

23.......... Announcement before entry.............................................................. 57

24.......... Copies of seized documents.............................................................. 58

25.......... Retention and return of seized documents or things.......................... 58

26.......... Extension of period of retention of documents or things seized........ 58

27.......... Obstruction of person authorised to enter......................................... 59

27A....... Powers conferred on magistrate........................................................ 60

Division 3—General information gathering powers                                  61

28.......... Power to obtain information and documents in relation to performance and exercise of functions and powers       61

Division 4—Regulatory information notices and general regulatory information orders          64

Subdivision 1—Interpretation                                                                               64

28A....... Definitions........................................................................................ 64

28B....... Meaning of contributing service........................................................ 64

28C....... Meaning of general regulatory information order.............................. 65

28D....... Meaning of regulatory information notice......................................... 65

28E........ Division does not limit operation of information gathering powers under Division 3              65

Subdivision 2—Serving and making of regulatory information instruments                 65

28F........ Service and making of regulatory information instrument................. 65

28G....... Additional matters to be considered for related provider regulatory information instruments   66

28H....... AER must consult before publishing a general regulatory information order           68

28I......... Publication requirements for general regulatory information orders.. 68

28J........ Opportunity to be heard before regulatory information notice is served 68

Subdivision 3—Form and content of regulatory information instruments 70

28K....... Form and content of regulatory information instrument.................... 70

28L........ Further provision about the information that may be specified in a regulatory information instrument    70

28M...... Further provision about manner in which information must be provided to AER or kept        71

Subdivision 4—Compliance with regulatory information instruments      72

28N....... Compliance with regulatory information notice that is served........... 72

28O....... Compliance with general regulatory information order..................... 72

28P........ Exemptions from compliance with general regulatory information order 73

28Q....... Assumptions where there is non-compliance with regulatory information instrument             73

Subdivision 5—General                                                                                           74

28R....... Providing to AER false and misleading information......................... 74

28S........ Person cannot rely on duty of confidence to avoid compliance with regulatory information instrument  74

28T........ Legal professional privilege not affected........................................... 74

28U....... Protection against self-incrimination................................................. 75

Division 5—Network service provider performance reports               76

28V....... Preparation of network service provider performance reports........... 76

Division 6—Disclosure of confidential information held by AER       78

28W...... Authorised disclosure of information given to the AER in confidence 78

28X....... Disclosure with prior written consent is authorised.......................... 78

28Y....... Disclosure for purposes of court and tribunal proceedings and to accord natural justice          78

28Z........ Disclosure of information given to the AER with confidential information omitted 78

28ZA..... Disclosure of information given in confidence does not identify anyone 79

28ZAB.. Disclosure of information that has entered the public domain........... 79

28ZB..... Disclosure of confidential information authorised if detriment does not outweigh public benefit             80

Division 7—Miscellaneous matters                                                                      83

28ZC..... Consideration by the AER of submissions made to it under this Act 83

28ZD..... Use of information provided under a notice under section 28 or a regulatory information instrument     83

28ZE..... AER to inform certain persons of decisions not to investigate breaches, institute proceedings or serve infringement notices............................................................................................... 83

28ZF..... AER enforcement guidelines............................................................. 84

28ZG..... AER must report to MCE if it does not make network revenue or pricing determination within time      84

28ZH..... Single documentation........................................................................ 85

28ZI...... Use of information............................................................................ 85

Part 3A—Establishment of the Australian Energy Market Commission                 86

28ZJA... Establishment of the Australian Energy Market Commission........... 86

28ZJB... Functions.......................................................................................... 86

28ZJC... Powers.............................................................................................. 87

28ZJD... Objectives......................................................................................... 87

28ZJE.... Independence.................................................................................... 87

28ZJF.... AEMC may publish statements, reports and guidelines.................... 87

28ZJG... Memorandum of Understanding....................................................... 87

28ZJH... Membership of AEMC..................................................................... 87

28ZJI..... Terms and conditions of appointment............................................... 88

28ZJJ.... Acting Chairperson or Commissioner............................................... 88

28ZJK... Vacancies or defects in appointment................................................. 90

28ZJL.... Chief executive.................................................................................. 90

28ZJM.. Other staff......................................................................................... 90

28ZJN... Immunity........................................................................................... 90

28ZJO... Consultants....................................................................................... 90

28ZJP.... Delegation......................................................................................... 91

28ZJQ... Meetings of AEMC.......................................................................... 91

28ZJR... Disclosure of interest........................................................................ 92

28ZJS.... Common seal and execution of documents....................................... 92

28ZJT.... Confidentiality................................................................................... 93

28ZJU... Annual performance plan and budget................................................ 94

28ZJV... Accounts and audit............................................................................ 94

Part 4—Functions and powers of the Australian Energy Market Commission under this Act                 95

Division 1—General                                                                                                     95

29.......... Functions and powers of the AEMC................................................ 95

29AI...... Commonwealth consent to conferral of functions etc. on AEMC..... 95

29AJ..... How duty is imposed........................................................................ 96

29AK.... When a State/Territory energy law etc. imposes a duty..................... 97

29AL..... Powers of the AEMC....................................................................... 98

32.......... AEMC must have regard to national electricity objective.................. 98

33.......... AEMC must have regard to MCE statements of policy principles in relation to Rule making and reviews              98

Division 2—Rule making functions and powers of the AEMC             99

34.......... Rule making powers......................................................................... 99

35.......... Rules relating to MCE or State or Territory Ministers require MCE consent           102

36.......... AEMC must not make Rules that create criminal offences or impose civil penalties for breaches            102

37.......... Documents etc applied, adopted and incorporated by Rules to be publicly available                102

Division 3—Committees, panels and working groups of the AEMC 104

38.......... The Reliability Panel....................................................................... 104

39.......... Establishment of committees and panels (other than the Reliability Panel) and working groups              104

Division 4—MCE directed reviews                                                                    105

41.......... MCE directions............................................................................... 105

42.......... Terms of reference.......................................................................... 105

43.......... Notice of MCE directed review....................................................... 106

44.......... Conduct of MCE directed review.................................................... 107

Division 5—Other reviews                                                                                      108

45.......... Reviews by AEMC......................................................................... 108

Division 6—Miscellaneous                                                                                      109

46.......... AEMC must publish and make available up to date versions of Rules 109

47.......... Fees................................................................................................. 109

48.......... Confidentiality of information......................................................... 109

Part 5—Role of AEMO under National Electricity Law                           111

Division 1—General                                                                                                   111

49.......... AEMO’s statutory functions........................................................... 111

49AA.... Constitutional limits on AEMO’s statutory functions..................... 112

49A....... AEMO’s power to carry out statutory functions............................. 112

49B....... Delegation....................................................................................... 112

Division 2—AEMO’s adoptive jurisdiction functions                              114

Subdivision 1—Preliminary                                                                                 114

50.......... Application of this Division............................................................ 114

50A....... AEMO to account to relevant Minister for performance of adoptive functions        114

Subdivision 2—AEMO’s additional advisory functions                               114

50B....... Additional advisory functions......................................................... 114

50BA.... Constitutional limits on AEMO’s additional advisory functions..... 115

Subdivision 3—AEMO’s declared network functions                                    115

50C....... AEMO’s declared network functions............................................. 115

50CA.... Constitutional limits on AEMO’s declared network functions........ 116

50D....... Network agreement......................................................................... 116

50E........ Connection agreements................................................................... 117

50F........ Augmentation.................................................................................. 118

50G....... AEMO to have qualified exemption for performing statutory functions  119

50H....... Resolution of dispute arising from attempt to negotiate a network agreement or augmentation connection agreement........................................................................................................ 120

50J........ General principles governing determinations.................................. 121

Division 3—Information etc to be provided to Ministers                      123

51.......... Ministerial request........................................................................... 123

51A....... Compliance with request................................................................. 123

51B....... Quarterly report............................................................................... 123

Division 4—Fees and charges                                                                               124

52.......... AEMO fees and charges................................................................. 124

Division 5—Information gathering                                                                    126

53.......... Information gathering powers......................................................... 126

53A....... Making and publication of general market information order.......... 127

53B....... Service of market information notice............................................... 127

53C....... Compliance with market information instrument............................. 128

53D....... Use of information.......................................................................... 129

53E........ Providing false or misleading information...................................... 129

Division 6—Protected information                                                                    130

Subdivision 1—AEMO’s obligation to protect information                        130

54.......... Protected information...................................................................... 130

Subdivision 2—Disclosure of protected information held by AEMO        130

54A....... Authorised disclosure of protected information.............................. 130

54B....... Disclosure with prior written consent............................................. 131

54C....... Disclosure required or permitted by law etc.................................... 131

54D....... Disclosure for purposes of court and tribunal proceedings............. 132

54E........ Disclosure of document with omission of protected information.... 132

54F........ Disclosure of non-identifying information...................................... 132

54G....... Disclosure of protected information for safety, proper operation of the market etc  132

54H....... Disclosure of protected information authorised if detriment does not outweigh public benefit 133

Division 7—AEMO’s statutory funds                                                               136

55.......... Definitions...................................................................................... 136

55A....... AEMO’s Rule funds....................................................................... 136

55B....... Payments into and out of Rule funds.............................................. 136

55C....... Investment....................................................................................... 136

Part 5A—Functions and powers of Minister                                                     138

57A....... Functions and powers of Minister.................................................. 138

Part 5B—Functions and powers of Tribunal                                                    139

57B....... Functions and powers of Tribunal under this Act........................... 139

Part 5C—Consumer Advocacy Panel                                                                    140

Division 1—Establishment and functions of the Panel                             140

57CA.... Establishment of Panel.................................................................... 140

57CB..... Functions of the Panel..................................................................... 140

57CBAI Commonwealth consent to conferral of functions etc. on Panel...... 141

57CBAJ How duty is imposed...................................................................... 142

57CBAK......................... When a State/Territory energy law etc. imposes a duty  143

57CC..... Objectives....................................................................................... 143

57CD.... Independence.................................................................................. 144

Division 2—Membership of Panel                                                                      145

57CE..... Membership of Panel...................................................................... 145

57CF..... Terms and conditions of appointment............................................. 145

57CG.... Removal from office....................................................................... 146

57CH.... Vacation of office............................................................................ 146

57CI...... Acting appointments as Chairperson or Panel member................... 147

Division 3—The Panel’s Executive Director and other staff               148

57CJ...... Executive Director and other staff................................................... 148

Division 4—The Panel’s proceedings                                                                149

57CK.... Meetings of the Panel...................................................................... 149

57CL..... Disclosure of interest...................................................................... 149

Division 5—Immunity                                                                                               151

57CM.... Immunity......................................................................................... 151

Division 6—Panel funding, grants and annual report                              152

57CN.... Budgets........................................................................................... 152

57CO.... Funding for administrative costs associated with Panel.................. 153

57CP..... Grant funding.................................................................................. 154

57CQ.... Provision of funding....................................................................... 154

57CR..... Criteria and guidelines for grant allocation...................................... 155

57CS..... Implementation of determinations of Panel..................................... 155

57CT..... Annual report.................................................................................. 156

Part 6—Proceedings under this Act                                                                        158

Division 1—General                                                                                                   158

59.......... Instituting civil proceedings under this Act..................................... 158

Division 1A—Enforceable undertakings                                                         159

59A....... Enforceable undertakings................................................................ 159

Division 2—Proceedings by the AER in respect of this Act, the regulations and the Rules        160

60.......... Time limit within which AER may institute proceedings................ 160

61.......... Proceedings for breaches of a provision of this Act, the regulations or the Rules that are not offences   160

61A....... Proceedings for declaration that a person is in breach of a conduct provision          161

61B....... Actions for damages by persons for breach of conduct provisions. 162

62.......... Additional Court orders.................................................................. 163

63.......... Orders for disconnection in certain circumstances where there is no breach            163

64.......... Matters for which there must be regard in determining amount of civil penalty       163

65.......... Breach of a civil penalty provision is not an offence....................... 164

66.......... Breaches of civil penalty provisions involving continuing failure... 164

67.......... Conduct in breach of more than one civil penalty provision............ 164

68.......... Persons involved in breach of civil penalty provision or conduct provision             164

68A....... Attempt to breach civil penalty provision........................................ 165

69.......... Civil penalties payable to the Commonwealth................................. 165

Division 2A—Proceedings before, and awards etc of, Dispute resolution panels             166

69A....... Commercial Arbitration Acts apply to proceedings before Dispute resolution panels              166

Division 3—Judicial review of AEMO decisions and determinations under this Act, the regulations and the Rules                                                                                                 168

70.......... Applications for judicial review...................................................... 168

71.......... Appeals on questions of law from decisions or determinations of Dispute resolution panels  168

Division 3A—Merits review and other non-judicial review                 170

Subdivision 1—Interpretation                                                                             170

71A....... Definitions...................................................................................... 170

Subdivision 2—Merits review for reviewable regulatory decisions          172

71B....... Applications for review................................................................... 172

71C....... Grounds for review......................................................................... 173

71D....... By when an application must be made............................................ 173

71E........ Tribunal must not grant leave unless serious issue to be heard and determined        173

71F........ Leave must be refused if application is about an error relating to revenue amounts below specified threshold        173

71G....... Tribunal must refuse to grant leave if submission not made or is made late             174

71H....... Tribunal may refuse to grant leave to service provider in certain cases 174

71I......... Effect of application on operation of reviewable regulatory decisions 175

71J........ Intervention by others in a review without leave............................. 175

7IK........ Leave for reviewable regulatory decision process participants........ 176

71L........ Leave for user or consumer intervener............................................ 176

71M...... Interveners may raise new grounds for review............................... 177

71N....... Parties to a review under this Subdivision...................................... 177

71O....... Matters that parties to a review may and may not raise in a review. 177

71P........ Tribunal must make determination.................................................. 178

71Q....... Target time limit for Tribunal for making a determination under this Subdivision    179

71R....... Matters to be considered by Tribunal in making determination....... 179

Subdivision 3—Tribunal review of information disclosure decisions      181

71S........ Application for review.................................................................... 181

71T........ Exclusion of public in certain cases................................................. 181

71U....... Determination in the review............................................................ 181

71V....... Tribunal must be taken to have affirmed decision if decision not made within time 182

71W...... Assistance from AER or AEMO.................................................... 182

Subdivision 4—General                                                                                         183

71X....... Costs in a review............................................................................. 183

71Y....... Amount of costs.............................................................................. 184

71Z........ Review of Division......................................................................... 184

Division 3B—Enforcement of access determinations                              185

71ZA..... Enforcement of access determinations............................................. 185

71ZB..... Consent injunctions......................................................................... 186

71ZC..... Interim injunctions.......................................................................... 186

71ZD..... Factors relevant to granting a restraining injunction........................ 186

71ZE..... Factors relevant to granting a mandatory injunction........................ 186

71ZF..... Discharge or variation of injunction or other order......................... 186

Division 4—Other civil proceedings                                                                  188

72.......... Obligations under Rules to make payments.................................... 188

Division 5—Infringement notices                                                                        190

73.......... Definition........................................................................................ 190

74.......... Power to serve a notice................................................................... 190

75.......... Form of notice................................................................................. 190

76.......... Infringement penalty....................................................................... 191

77.......... AER cannot institute proceedings while infringement notice on foot 191

78.......... Late payment of penalty.................................................................. 192

79.......... Withdrawal of notice....................................................................... 192

81.......... Payment expiates breach of civil penalty provision......................... 193

82.......... Payment not to have certain consequences...................................... 193

83.......... Conduct in breach of more than one civil penalty provision............ 193

Division 6—Miscellaneous                                                                                      194

85.......... Offences and breaches by corporations........................................... 194

86.......... Corporations also in breach if officers and employees are in breach 194

Part 7—The making of the National Electricity Rules                                 195

Division 1—General                                                                                                   195

Subdivision 1—Interpretation                                                                             195

87.......... Definitions...................................................................................... 195

Subdivision 2—Rule making tests                                                                       196

88.......... Application of national electricity objective..................................... 196

88A....... AEMC must take into account form of regulation factors in certain cases                197

88B....... AEMC must take into account revenue and pricing principles in certain cases         197

89.......... AEMC must have regard to certain matters in relation to the making of jurisdictional derogations          198

Division 2—Minister initiated National Electricity Rules                      199

90.......... Minister to make initial National Electricity Rules........................... 199

90A....... Minister to make further Rules relating to distribution determinations consumer advocacy and other matters         199

90B....... Minister to make initial Rules related to AEMO’s functions under this Act             200

90C....... Minister to make initial Rules related to smart meters..................... 201

90D....... Minister may make initial Rules relating to implementation of NERL and NERR    202

Division 3—Procedure for the making of a Rule by the AEMC        204

91.......... Initiation of making of a Rule.......................................................... 204

91A....... AEMC may make more preferred Rule in certain cases.................. 205

91B....... AEMC may make Rules that are consequential to a Rule request... 205

92.......... Contents of requests for Rules........................................................ 206

92A....... Waiver of fee for Rule requests....................................................... 206

93.......... Consolidation of 2 or more Rule requests....................................... 206

94.......... Initial consideration of request for Rule.......................................... 207

94A....... AEMC may request further information from Rule proponent in certain cases        208

95.......... Notice of proposed Rule................................................................. 209

96.......... Publication of non-controversial or urgent final Rule determination 209

96A....... “Fast track” Rules where previous public consultation by electricity market regulatory body or an AEMC review 210

97.......... Right to make written submissions and comments.......................... 212

98.......... AEMC may hold public hearings before draft Rule determination.. 212

99.......... Draft Rule determinations............................................................... 212

100........ Right to make written submissions and comments in relation to draft Rule determination       213

101........ Pre-final Rule determination hearings............................................. 214

102........ Final Rule determinations................................................................ 214

102A..... Proposal to make more preferable Rule........................................... 215

103........ Making of Rule............................................................................... 216

104........ Operation and commencement of Rule............................................ 216

105........ Rule that is made to be published on website and made available to the public        217

106........ Evidence of the National Electricity Rules....................................... 217

Division 4—Miscellaneous provisions relating to Rule making by the AEMC 218

107........ Extensions of periods of time in Rule making procedure................ 218

107A..... AEMC may extend period of time for making of final Rule determination for further consultation         218

108........ AEMC may publish written submissions and comments unless confidential           219

108A..... AEMC must publicly report on Rules not made within 12 months of public notification of requests      220

Part 8—Safety and security of the National Electricity System             221

109........ Definitions...................................................................................... 221

110........ Appointment of jurisdictional system security coordinator............. 221

111........ Jurisdictional system security coordinator to prepare jurisdictional load shedding guidelines  222

112........ AEMO to develop load shedding procedures for each participating jurisdiction      223

113........ Exchange of information................................................................. 223

114........ AEMO to ensure maintenance of supply of sensitive loads............ 225

115........ Shedding and restoring of loads...................................................... 225

115A..... Determination of customer load shedding arrangement................... 225

116........ Actions that may be taken to ensure safety and security of national electricity system             226

117........ AEMO to liaise during an emergency............................................. 228

118........ Obstruction and non-compliance..................................................... 228

Part 8A—Smart metering services                                                                           229

Division 1—Interpretation                                                                                      229

118A..... Definitions...................................................................................... 229

Division 2—Ministerial pilot metering determinations                           230

118B..... Ministerial pilot metering determinations........................................ 230

118C..... Consultation with interested persons required before making Ministerial pilot metering determination   231

Division 3—Ministerial smart meter rollout determinations              232

118D..... Ministerial smart meter rollout determinations................................ 232

118E...... Public consultation required before making Ministerial smart meter rollout metering determination        233

Division 4—Provisions applicable to Ministerial smart metering determinations           234

118F...... Compliance with Ministerial smart metering determinations........... 234

118G..... Minister must consult with State or Territory Energy Ministers..... 234

118H..... Content of Ministerial smart metering determinations..................... 234

118I....... Publication and giving of Ministerial smart metering determinations 234

118J...... When Ministerial smart metering determinations take effect........... 235

118K..... AEMC must publish Ministerial smart metering determination it receives on its website        235

Part 9—Immunities                                                                                                            236

119........ Immunity of AEMO and network service providers....................... 236

120........ Immunity in relation to failure to supply electricity......................... 237

120A..... Immunity in relation to use of computer software........................... 238

120B..... Immunity from liability—dispute resolution................................... 238

121........ Immunity from personal liability of AEMC officials...................... 238

122........ Immunity from personal liability of Reliability Panel...................... 239

Part 10—Access Disputes                                                                                               240

Division 1—Interpretation and application                                                   240

123........ Definitions...................................................................................... 240

124........ Part does not limit how disputes about access may be raised or dealt with               240

124A..... Constitutional limits........................................................................ 240

Division 2—Notification of access dispute                                                      241

125........ Notification of access dispute.......................................................... 241

126........ Withdrawal of notification............................................................... 241

127........ Parties to an access dispute............................................................. 242

Division 3—Access determinations                                                                    243

128........ Determination of access dispute...................................................... 243

129........ AER may require parties to mediate, conciliate or engage in an alternative dispute resolution process     243

130........ Access determination must give effect to network revenue or pricing determination                243

131........ AER may terminate access dispute in certain cases......................... 244

132........ AER must terminate access dispute if there is genuine competition 244

133........ Restrictions on access determinations............................................. 245

134........ Access determination need not require the provision of an electricity network service             246

Division 4—Variation of access determinations                                         247

135........ Variation of access determinations.................................................. 247

Division 5—Compliance with access determinations                               248

136........ Compliance with access determination............................................ 248

Division 6—Access dispute hearing procedure                                            249

137........ Hearing to be in private................................................................... 249

138........ Right to representation.................................................................... 249

139........ Procedure of AER........................................................................... 249

140........ Particular powers of AER in a hearing............................................ 250

141........ Disclosure of information............................................................... 250

142........ Power to take evidence on oath or affirmation................................ 251

143........ Failing to attend as a witness........................................................... 251

144........ Failing to answer questions etc....................................................... 251

145........ Intimidation etc................................................................................ 252

146........ Party may request AER to treat material as confidential.................. 252

147........ Costs............................................................................................... 253

148........ Outstanding costs are a debt due to party awarded the costs........... 255

Division 7—Joint access dispute hearings                                                      256

149........ Definition........................................................................................ 256

150........ Joint dispute hearing....................................................................... 256

151........ Consulting the parties...................................................................... 256

152........ Constitution and procedure of AER for joint dispute hearings........ 257

153........ Record of proceedings etc............................................................... 257

Division 8—Miscellaneous matters                                                                    258

154........ Correction of access determinations for clerical mistakes etc.......... 258

155........ Subsequent network service provider bound by access determinations 258

156........ Regulations about the charges to be paid by parties to access dispute for AER’s costs in dispute hearing               258

Part 11—General                                                                                                                 260

157........ Preventing or hindering access........................................................ 260

158........ Failure to make a decision under this Act or the Rules within time does not invalidate the decision        261

159........ Regulations..................................................................................... 262

Schedule 1—Subject matter for the National Electricity Rules          263

Registration.................................................................................................... 263

Participant fees............................................................................................... 263

Wholesale exchange....................................................................................... 263

Operation of generation, transmission and distribution systems.................... 264

Transmission system revenue and pricing...................................................... 264

Distribution system revenue and pricing........................................................ 266

Regulatory economic methodologies.............................................................. 268

Electricity network services............................................................................ 269

Sale and supply of electricity to retail customers............................................ 269

Metering 270

Disputes in relation to the Rules..................................................................... 270

Access disputes.............................................................................................. 270

AEMO.. 270

National transmission planning...................................................................... 271

Miscellaneous................................................................................................ 271

Schedule 2—Miscellaneous provisions relating to interpretation     273

Part 1—Preliminary                                                                                                          273

1............ Displacement of Schedule by contrary intention............................. 273

Part 3—Terms and references                                                                                    274

10.......... Definitions...................................................................................... 274

Part 6A—Evidentiary matters                                                                                    277

Division 1—Publication on websites                                                                  277

31AA.... Definitions...................................................................................... 277

31AB.... Publication of relevant AER decisions on websites........................ 277

Division 2—Evidentiary certificates                                                                  278

31AC.... Definitions...................................................................................... 278

31AD.... Evidentiary certificates—AER........................................................ 278

31AE..... Evidentiary certificates—AEMC..................................................... 279

31AF..... Evidentiary certificates—AEMO.................................................... 279

Part 7—Effect of repeal, amendment or expiration                                      281

31.......... Time of Act, the regulations or Rules ceasing to have effect........... 281

 



A Bill for an Act to continue the National Electricity Law as a Commonwealth law, and for other purposes

The Parliament of Australia enacts:

Schedule 1 Subject matter for the National Electricity Rules

   

Note:       See section 34.

Registration

1           The registration of persons as Registered participants or otherwise for the purposes of this Act and the Rules, including the deregistration of such persons or suspension of such registrations.

2           The exemption of persons from the requirement to be Registered participants.

3           Prudential requirements to be met by a person :

             (a)       before being registered as a Registered participant; and

             (b)      as a Registered participant.

4           The suspension of Registered participants from participation in the wholesale exchange operated and administered by AEMO.

Participant fees

5           The determination of fees in respect of services provided to Registered participants, or statutory functions performed, by AEMO under the Rules, including the methodology to be applied to determine those fees.

6           The imposition on Registered participants of fees referred to in item 5 and the method of payment and collection of those fees.

Wholesale exchange

7           The setting of prices for electricity and services purchased through the wholesale exchange operated and administered by AEMO, including maximum and minimum prices.

8           The methodology and formulae to be applied in setting prices referred to in item 7.

9           The division of the national electricity market into regions for the purpose of the operation of the wholesale exchange operated and administered by AEMO.

Operation of generation, transmission and distribution systems

10         The disconnection of generating systems, transmission systems, distribution systems or other facilities or loads.

11         The operation of generating systems, transmission systems, distribution systems or other facilities.

12         The augmentation of transmission systems and distribution systems.

13         Access to electricity services provided by means of transmission systems and distribution systems.

14         Access to premises on which there are, and access to, generating systems or other facilities by owners, controllers or operators of transmission systems or distribution systems whose systems are connected to the generating systems or other facilities to test and inspect the generating systems or other facilities for the purpose of determining whether those generating systems or other facilities comply with the Rules.

14A       The treatment of parts of a transmission system as forming part of a distribution system for the purposes of making a network revenue or pricing determination.

14B       The treatment of parts of a distribution system as forming part of a transmission system for the purposes of making a network revenue or pricing determination.

Transmission system revenue and pricing

15         The regulation of revenues earned or that may be earned by owners, controllers or operators of transmission systems from the provision by them of services that are the subject of a transmission determination.

16         (1)      The regulation of prices charged or that may be charged by owners, controllers or operators of transmission systems for the provision by them of services that are the subject of a transmission determination.

             (2)      The regulation of prices that AEMO charges or may charge for the provision of shared transmission services.

17         Principles to be applied, and procedures to be followed, by the AER in exercising or performing an AER economic regulatory function or power relating to the making of a transmission determination.

18         The assessment, or treatment, by the AER, of investment in transmission systems for the purposes of making a transmission determination.

19         The economic framework, mechanisms or methodologies to be applied by the AER for the purposes of item 18.

20         The economic framework, mechanisms or methodologies to be applied or determined by the AER for the purposes of items 15 and 16 including (without limitation) the economic framework, mechanisms or methodologies to be applied or determined by the AER for the derivation of the revenue (whether maximum allowable revenue or otherwise) or prices to be applied by the AER in making a transmission determination.

21         The regulatory asset base, for the purposes of making a transmission determination, of assets forming part of a transmission system owned, controlled or operated by a regulated transmission system operator, and of proposed new assets to form part of a transmission system owned, controlled or operated by a regulated transmission system operator, that are, or are to be, used in the provision of services that are the subject of a transmission determination.

22         The determination by the AER, for the purpose of making a transmission determination with respect to services that are the subject of such a determination, of allowances for :

     (a)     depreciation; and

    (b)     operating costs of a regulated transmission system operator; and

     (c)     if the regulated transmission system operator is a corporation or other body corporate:

     (i)     the income tax payable by corporations; or

    (ii)     amounts payable under a law of a State or Territory or otherwise that are equivalent to income tax that would be payable by the operator if that operator were liable to pay income tax; and

    (d)     a rate of return on assets forming part of a transmission system owned, controlled or operated by a regulated transmission system operator.

23         Incentives for regulated transmission system operators to make efficient operating and investment decisions including, where applicable, service performance incentive schemes.

24         The procedure for the making of a transmission determination by the AER, including :

     (a)     the submission by the relevant service provider of a proposal to the AER relating to the revenue or prices to be regulated by the proposed transmission determination; or

    (b)     the publication of notices by the AER; and

     (c)     the making of submissions by the relevant service provider or any other person; and

    (d)     the holding of pre-determination conferences; and

     (e)     the publication of draft and final determinations and the giving of reasons.

In this clause, a reference to the relevant service provider is a reference to the regulated transmission system operator to which the determination will apply or, if it will apply to AEMO (as provider of shared transmission services), to AEMO.

Distribution system revenue and pricing

25         The regulation of revenues earned or that may be earned by owners, controllers or operators of distribution systems from the provision by them of services that are the subject of a distribution determination.

26         The regulation of prices (including the tariffs and classes of tariffs) charged or that may be charged by owners, controllers or operators of distribution systems for the provision by them of services that are the subject of a distribution determination.

26A       Principles to be applied, and procedures to be followed, by the AER in exercising or performing an AER economic regulatory function or power relating to the making of a distribution determination.

26B       The assessment, or treatment, by the AER, of investment in distribution systems for the purposes of making a distribution determination.

26C       The economic framework, mechanisms or methodologies to be applied by the AER for the purposes of item 26B.

26D       The economic framework, mechanisms or methodologies to be applied or determined by the AER for the purposes of items 25 and 26 including (without limitation) the economic framework, mechanisms or methodologies to be applied or determined by the AER for the derivation of the revenue (whether maximum allowable revenue or otherwise) or prices to be applied by the AER in making a distribution determination.

26E       The regulatory asset base, for the purposes of making a distribution determination, of assets forming part of a distribution system owned, controlled or operated by a regulated distribution system operator, and of proposed new assets to form part of a distribution system owned, controlled or operated by a regulated distribution system operator, that are, or are to be, used in the provision of services that are the subject of a distribution determination.

26F       The determination by the AER, for the purpose of making a distribution determination with respect to services that are the subject of such a determination, of allowances for :

     (a)     depreciation; and

    (b)     operating costs of a regulated distribution system operator; and

     (c)     if the regulated distribution system operator is a corporation or other body corporate:

     (i)     the income tax payable by corporations; or

    (ii)     amounts payable under a law of this jurisdiction or otherwise that are equivalent to income tax that would be payable by the operator if that operator were liable to pay income tax; and

    (d)     a rate of return on assets forming part of a distribution system owned, controlled or operated by a regulated distribution system operator.

26G       Incentives for regulated distribution system operators to make efficient operating and investment decisions including, where applicable, service performance incentive schemes.

26H       The procedure for the making of a distribution determination by the AER, including :

     (a)     the submission to the AER, by a regulated distribution system operator, of a proposal relating to the revenues or prices to be regulated by a distribution determination applying to the operator; and

    (b)     the publication of notices by the AER; and

     (c)     the making of submissions, including by the regulated distribution system operator to whom the distribution determination will apply; and

    (d)     the publication of draft and final determinations and the giving of reasons; and

     (e)     the holding of pre-determination conferences.

Regulatory economic methodologies

26I        The regulatory economic methodologies (including the use of the methodology known as the “building block approach”) to be applied by the AER in :

     (a)     making a distribution determination or transmission determination; or

    (b)     amending a distribution determination or transmission determination; or

     (c)     making an access determination.

26J        The methodology known as “total factor productivity ”:

     (a)     as a regulatory economic methodology to be applied by the AER for the purpose of:

     (i)     making a distribution determination or transmission determination; or

    (ii)     amending a distribution determination or transmission determination; or

    (iii)    making an access determination;

    (b)     as an economic regulatory tool to inform and assist the AER in applying, or analysing the application of the regulatory economic methodology known as the “building block approach” by the AER for the purpose of:

     (i)     making a distribution determination or transmission determination; or

    (ii)     amending a distribution determination or transmission determination; or

    (iii)    making an access determination.

Electricity network services

26K       Terms and conditions for the provision of electricity network services, or any class of electricity network services (including shared transmission services).

Sale and supply of electricity to retail customers

26L       Credit support arrangements between regulated distribution system operators and retailers, including the financial obligations of regulated distribution system operators and retailers to support the sale and supply of electricity to retail customers.

26M      Charges for the provision of connection services.

Metering

27         The metering of electricity to record the production or consumption of electricity.

28         The registration of metering installations used to meter electricity.

29         The regulation of persons providing metering services relating to the metering of electricity.

Disputes in relation to the Rules

30         Disputes under or in relation to the Rules between persons, including :

     (a)     the appointment of persons to arbitrate, mediate or assist in some other way in the resolution of such disputes;

    (b)     the appointment of a person to manage and facilitate the dispute resolution process (without however derogating from that person’s power to act personally as an arbitrator or mediator in a particular dispute);

     (c)     the procedure for the conduct of such disputes;

    (d)     the provision for appeals on questions of law against decisions of persons appointed to resolve such disputes.

Access disputes

30A       Specification of disputes as access disputes for the purposes of Part 10.

30B       Notification of access disputes for the purposes of Part 10.

30C       Matters or things to be considered or applied by the AER in making an access determination.

30D       Procedure for the hearing of an access dispute under Part 10.

AEMO

30E       The declared network functions.

30F       The application (with or without modification) of Rules, applicable to network service providers, to regulated transmission system operators, or to AEMO in its capacity as a provider of transmission services.

National transmission planning

30G       The preparation, revision and publication of the National Transmission Network Development Plan.

30H       The attainment of a national strategic perspective for transmission planning and coordination.

30I        The establishment and maintenance of a database of information relevant to planning the development of the national grid and the provision of public access to the database.

30J        The collection of information required for the preparation or revision of the National Transmission Network Development Plan.

Miscellaneous

31         The calculation or estimation of use of electricity.

32         Procedures and related systems for the electronic exchange or transfer of information that relates to consumers of electricity, the provision of metering services and connection to the national electricity system, and requiring compliance with such procedures and use of such related systems.

33         Reviews by or on behalf of :

     (a)     the AER, the AEMC or AEMO; or

    (b)     the Reliability Panel or any other panel or committee established by the AEMC; or

     (c)     any other body established, or person appointed, in accordance with the Rules.

34         The payment of money (including the payment of interest) :

     (a)     for the settlement of transactions for electricity or services purchased or supplied through the wholesale exchange operated and administered by AEMO;

    (b)     to and from a Rule fund within the meaning of section 55;

     (c)     for any service provided under the Rules in respect of which the Rules require payment.

34A       Specification and classification of electricity network services as direct control network services or negotiated network services.

34B       Reporting and disclosing information to the AER.

34C       Consultation by the AER :

     (a)     on the making of a general regulatory information order;

    (b)     before the preparation of a network service provider performance report.

35         Confidential information held by Registered participants, the AER, the AEMC, AEMO and other persons or bodies conferred a function, or exercising a power or right, or on whom an obligation is imposed, under the Rules, and the manner and circumstances in which that information may be disclosed.

36         Any other matter or thing that is the subject of, or is of a kind dealt with by, a provision of the National Electricity Code as in operation and effect immediately before the commencement of section 12 of the National Electricity (South Australia) (New National Electricity Law) Amendment Act 2005 of South Australia.

36A       Any other matter or thing that is the subject of, or is of a kind dealt with by, a provision of the superseded jurisdictional rules.

37         Any matter or thing relating to electricity prescribed by the regulations.



 

Schedule 2 Miscellaneous provisions relating to interpretation

Note:       See section 3.