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Bill
- Registration
- Participant fees
- Wholesale exchange
- Operation of generation, transmission and distribution systems
- Transmission system revenue and pricing
- Distribution system revenue and pricing
- Regulatory economic methodologies
- Electricity network services
- Sale and supply of electricity to retail customers
- Metering
- Disputes in relation to the Rules
- Access disputes
- AEMO
- National transmission planning
- Miscellaneous
- Part 1—Preliminary
- Part 2—Participation in the National Electricity Market
- Part 3—Functions and powers of the Australian Energy Regulator
- Part 3A—Establishment of the Australian Energy Market Commission
- Part 4—Functions and powers of the Australian Energy Market Commission under this Act
- Part 5—Role of AEMO under National Electricity Law
- Part 5A—Functions and powers of Minister
- Part 5B—Functions and powers of Tribunal
- Part 5C—Consumer Advocacy Panel
- Part 6—Proceedings under this Act
- Part 7—The making of the National Electricity Rules
- Part 8—Safety and security of the National Electricity System
- Part 8A—Smart metering services
- Part 9—Immunities
- Part 10—Access Disputes
- Part 11—General
- Part 1—Preliminary
- Part 3—Terms and references
- Part 6A—Evidentiary matters
- Part 7—Effect of repeal, amendment or expiration
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
(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.