Version No. 045

Gas Industry Act 1994

Act No. 112/1994

Version incorporating amendments as at 15 July 2001

table of provisions

SectionPage

1

SectionPage

Part 1—Preliminary

1.Purpose

2.Commencement

3.Definitions

4.Declaration of gaseous fuel

5.Declaration of pipeline to be, or not to be, a transmission
pipeline

5A.Declaration of gas companies

5B.Nomination of market participants

5C.Substantial degree of power

5D.Sale of gas under MSO Rules

6.Subsidiary

6A.Application of Act to certain distribution, retail and
transmission companies

6B.Non-franchise customer

6C.Supply point

6D.Conferral of functions on ACCC

7.Crown to be bound

8.Extra-territorial operation

8A.Application of Office of the Regulator-General Act 1994

8B.Objectives of ORG

Part 2—Statutory Gas Companies

Division 1—Repealed

9–12. Repealed

Division 2—GASCOR

13.Establishment of GASCOR

14.GASCOR not to represent the Crown

15.Functions and powers

16.GASCOR may trade as Gas and Fuel

Division 2A—Victorian Energy Networks Corporation

16A.Establishment

16B.VENCorp not to represent the Crown

16C.Functions and powers relating to gas industry

16CA.Functions and powers relating to electricity

16D.General powers

16E.Board of Directors

16F.Directors

16G.Appointment of directors

16H.VENCorp may give directions

16HA.Power of Minister

16I.Protection from liability

16J.Protection of persons executing directions

16K.Continuing offences

16L.Review of this Part

Division 3—Provisions applying to statutory gas companies

17.Schedule 1

17A.Appointment of Administrators

17B.Vacancy etc. in office of Administrator

17C.Deputy Administrator

17D.Resignation and removal

17E.Functions and powers of Deputy

17F.Staff of Administrator

17G.Functions and powers of Administrator

17H.Delegation

17I.Directions

18.Borrowing and investment by gas companies

19.Payments in respect of financial obligations

20.As to other government authorities

Division 4—General

21.Duties of directors

22.Gas company or Minister may bring proceedings

23.Directions

24.Gas company not to make loans to directors

25.Indemnity

26.Corporate plan

27.Statement of corporate intent: contents

28.Non-commercial functions

29.Dividends

30.Reports to Treasurer

31.Annual report

Part 2A—Inspection

Division 1—Appointment of inspectors

31A.Inspectors

Division 2—Powers of entry—enforcement

31B.Powers of entry—enforcement

31C.Occupier to be given copy of consent

31D.Search warrant

31E.Announcement before entry

31F.Copy of warrant to be given to occupier

Division 3—General

31G.Offence to obstruct inspector

31H.Police to assist inspectors

31I.Impersonation of inspector

Part 3—Transmission and Distribution of Gas

32.Gas retailer not liable for failure to supply gas

33.Exemption from liability to transmit or convey gas

Part 3A—Significant Producers

Division 1—Preliminary

34.Conduct

35.References to purpose

36.Subsidiary, holding and related bodies corporate

37.Joint ventures

38.Provisions of this Part are in addition to other anti-competitive laws

39.Persons involved in contravention of competition rule

Division 2—Anti-competitive conduct

40.Anti-competitive conduct

41.Prohibition of anti-competitive conduct

Division 3—Authorisation

42.ORG may grant authorisation

43.Variation or revocation of authorisation

44.Appeal

Division 4—Competition notices

45.Competition notices

45A.Legal proceedings excluded

45B.Competition notice to be given to significant producer

45C.Evidentiary effect of competition notice

45D.Notice of orders

45E.Making of orders

45F.Extension of time limits

45G.Mandatory orders

45H.Penalty orders

45I.Reasons for orders

45J.Enforcement of orders of ORG

Division 5—Appeal Tribunal

45K.Application for review of order

45L.Appeal tribunal

45M.Procedure

45MA.Questions of law or procedure

45N.Material which appeal tribunal may consider

45O.Decision of appeal tribunal

45OA.Decision if members not unanimous

45OB.Disclosure of interests

45OC.Member of appeal tribunal becomes unavailable

45P.ORG may make consequential orders

45Q.Appeal to Supreme Court

45R.Operation of order that is subject to review

Division 6—Injunctions etc.

45S.Injunctions

45T.Actions for damages for contravention of competition rule

45U.Declaratory relief

Division 7—Access to information

45V.Power to obtain information and documents

45W.Restriction on disclosure of confidential information

45X.Application against disclosure notice

Division 8—Review of Part

45Y.Review of operation of this Part

Division 9—Legal proceedings excluded

45Z.No proceedings

Part 4—Technical Regulation

46–48.Repealed87

Part 4A—Regulation of Gas Industry

Division 1—Regulation of tariffs and charges

48A.Tariffs and charges Orders

48AA.Regulation of tariffs for prescribed customers

Division 2—Licensing of gas distribution companies, gas retailers and providers of underground storage facilities

48B.Offence to distribute or retail gas without licence

48BA.Offence to operate underground storage facility without licence

48C.Exemptions

48D.Application for licence

48E.Determination of application

48F.Provisions relating to licences

48FA.Customer dispute resolution

48G.Conditions in licence

48GA.Reliability of retail supply

48GB.Repealed

48GC.Condition restricting sale to certain customers

48H.Variation or revocation of licence

48I.Gazettal requirement

48J.Appointment of administrator

48K.Transfer of licence

48L.Transitional provisions

48M.Obligations of gas retailer

Division 2A—Terms and Conditions of Sale and Supply of Gas

48MA.Offer to domestic or small business customers

48MB.Terms and conditions of contracts for sale of gas to certain customers

48MC.Deemed contracts with former franchise customers

48MD.Variation of contracts with former franchise customers

48ME.Deemed contracts for supply and sale for certain domestic
or small business customers

48MF.Deemed contracts for supply and sale for certain relevant customers

Division 2B—Facilitation of retail competition

48MG.What are retail gas market rules?

48MH.Principles for retail gas market rules

48MI.Retail gas market rules—VENcorp

48MJ.Retail gas market rules—gas distribution company

48MK.Conditions of licence relating to retail gas market

48ML.Approval of rules by ORG

48MM.Operation of approved rules

48MN.Amendments to approved rules

48MO.Cost recovery

Division 3—Market and System Operation Rules

48N.MSO Rules

48O.Proceedings

48P.Criminal proceedings do not lie

48Q.Civil penalty

48R.Injunctions

48S.Actions for damages for contravention of conduct provision

48T.Declaratory relief

Division 3A—Community Services Agreements

48TAA.Community services

48TAB.Transitional provision relating to community services

48TAC.ORG may determine certain matters

Division 4—General

48TA.Information to be provided to VENCorp

48TB.Restriction on disclosure of confidential information

Part 4B—Repealed131

48U–48ZV. Repealed131

Part 5—Property and Works

49.Certain pipelines are not part of land

50.Agreement for operation of pipelines

51.Power of gas transmission company or gas distribution
company to acquire land

51A.Power to acquire easements

51B.Application of other laws in relation to land vested in a gas company

52.Rateability of property of public gas companies or VENCorp

53.Powers as to works etc.

54.Power to open and break up roads etc.

55.Obstructing construction or operation of pipelines

56.Tampering with pipelines

57.Obstruction of gas company

58.Offences relating to transmission pipelines

59.Offences relating to gas supply

60.Offence to retain or use a gas company's property without permission

Part 6—Statutory Easements

60A.Making of easements in sub-divisions

61.Certain rights deemed to be easements

62.Easements over lands held by Crown licensees or lessees

62A.Agreement for easement

62B.Statutory easement

62C.Effect of order

62D.Certain rules about easements not to apply

62E.Amendment of Register

Part 6A—Gas Supply Emergency Provisions

62F.Proclamation that Part applies

62G.Powers of Minister

62H.Compliance with directions etc. of Minister

62HA.Offence to obstruct a person carrying out a direction

62I.Delegation of powers and functions by Minister

62J.Offences

62JA.Offences by bodies corporate

62JB.Offences by partnerships or unincorporated associations

62K.Judicial notice

62L.Immunity from suit

62LA.Powers of entry—enforcement

62LB.Occupier to be given copy of consent

62LC.Search warrant

62LD.Announcement before entry

62LE.Copy of warrant to be given to occupier

Part 6AA—Infringement Notices

62LF.Definition

62LG.Power to serve a notice

62LH.Form of notice

62LI.Infringement penalties

62LJ.Late payment of penalty

62LK.Withdrawal of notice

62LL.Payment expiates offence

62LM.Payment not to have certain consequences

62LN.Prosecution after service of infringement notice

62LO.Enforcement of infringement penalty

Part 6B—Competition Policy Authorisation

62M.Definitions

62N.Assignment

62O.Approval

62P.Application

62PA.Authorisation

Part 6C—Master Agreements

62Q.Definitions

62R.Assignment

62S.Approval

62T.Application

Part 7—Transfer of Property

Division 1—Preliminary

63.Definitions

Division 2—Transfer by operation of Act

64.Transfer of property of GFCV in GFE Resources Ltd

65.Transfer of certain GFCV property to GTC

66.Transfer of GFCV property to GASCOR

67.GASCOR to be successor in law of GFCV

Division 3—Direction to allocate property

68.Minister may direct transfer of property

Division 4—Transfer by allocation

69.Property transferred in accordance with direction

70.Allocation of property etc. subject to encumbrances

Division 5—General

71.Certificate of chief executive officer

72.Pipelines

73.Value of former gas corporation property

74.Substitution of party to agreement

75.Former gas corporation instruments

76.Schedule 4 documents

77.Proceedings

78.Interests in land

79.Amendment of Register

80.Taxes

81.Evidence

Division 6—Rights as between transferees

82.Interim arrangements

83.Easements

83A.Further interim arrangements

83B.Agreement about certain easements

Part 8—Staff

84.Definitions

85.Transfer of GFCV staff to GASCOR

86.Future terms and conditions of transferred employees

87.Superannuation

87A.Rights of former GASCOR staff

87B.Closure of Gas and Fuel Superannuation Fund

87C.Provisions relating to transfer of members and beneficiaries

87D.Transfer of assets

87E.General provisions

87F.Payment of benefits

Part 8A—Transfer of Staff of GASCOR or GTC

87G.Definitions

87H.Relevant date

87I.List of staff

87J.Transfer of staff

87K.Future terms and conditions of transferred employees

87L.Superannuation

Part 9—General

88.Delegation by Minister and Treasurer

88A.Directions to public gas companies

88B.Payments in respect of financial obligations

88C.Government departments and local authorities

89.Validity of things done under this Act

90.GTC may act under certain agreements and instruments

90A.Saving of contracts

91.Identification cards

92.Power of entry

93.Emergency powers

94.Offences by bodies corporate

95.Service of documents on statutory gas company

96.Evidence of documents

96A.Proceedings for offences

97.Evidence of ownership

98, 99.Repealed

100.Treasurer may give guarantee

101.Trade Practices Act 1974 of the Commonwealth and the Competition Code

101A.Exemption from Freedom of Information Act 1982

101B.Supreme Court—limitation of jurisdiction

102.Regulations

Part 10—Transitional

103.Annual reports of gas companies for 1994, 1995

104.Annual report of GFCV for 1994, 1995

104A.Annual reports of GASCOR transferees and GASCOR

104B.Annual reports of GTC transferees and GTC

104C.Repeal of Public Authorities (Contributions) Act 1966

105.Repealed

PartS 11, 12—Repealed234

106–114. Repealed

Part 13—Treasury Corporation of Victoria

115.Certain liabilities under financial obligations of GFCV

Part 13A—Transfer of Certain Property and
Staff of Nominated Public Gas Companies

Division 1—Definitions and applications

115A.Definitions

115B.Nomination of transferor company

Division 2—Allocation of property

115C.PGC to prepare allocation statement

115D.Certificate of chief executive officer

Division 3—Transfer of property

115E.Property transferred

115F.Allocation of property etc. subject to encumbrances

115G.Substitution of party to agreement

115H.PGC instruments

115I.Proceedings

115J.Interests in land

115K.Amendment of Register

115L.Evidence

115M.Validity of things done under this Part

Division 4—Staff

115N.List of PGC staff

115O.Transfer of PGC staff

115P.Future terms and conditions of transferred employees

Division 5—Permits and licences under Pipelines Act 1967

115Q.Pipelines

Part 13B—Provisions Relating to Privatisation

115R.Treasurer may be party to agreement for sale

115S.Freedom of Information Act 1982

Part 14—Repealed251

116–149.Repealed251

Part 15—Prohibited Interests

Division 1—Preliminary

150.Definitions

151.Relevant interest in, and entitlement to, shares

152.Corporations Law

153.Unit trusts

154.Stock

155.Controlling interest

156.Substantial interest

157.Application of Part to partnerships

158.Certain shareholders agreements to be disregarded

159.Certain "see-through" interests to be disregarded

160.Effect of certificate under section 158 or 159

161.Application and construction of Part

Division 2—Prohibited interests

162.Prohibited interests

163.Other provisions relating to prohibited interests

164.Temporary exemption from prohibition

165.Power to require information relating to interests

166.Disposal of interest

167.Voting rights in respect of certain shares

168.Revocation of licence

169.Annulment of certain resolutions

170.Making, review and revocation of determination by ORG

171.Appeal against determination of ORG

172.Sale of forfeited shares

173.Service

______

SCHEDULES

SCHEDULE 1—Provisions applying to gas companies

SCHEDULE 1A—Easements for use of gas company

SCHEDULE 2—Repealed

SCHEDULE 3—Retained property, rights and liabilities ofGFCV

SCHEDULE 4—Certain property, rights and liabilities transferred to GASCOR

SCHEDULE 5—Repealed294

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ENDNOTES

1. General Information

2. Table of Amendments

3. Explanatory Details

1

Version No. 045

Gas Industry Act 1994

Act No. 112/1994

Version incorporating amendments as at 15 July 2001

1

Gas Industry Act 1994

Act No. 112/1994

The Parliament of Victoria enacts as follows:

Part 1—Preliminary

1.Purpose

The purpose of this Act is—

(a)to restructure the gas industry; and

(b)to establish Gas Transmission Corporation and GASCOR; and

(c)to provide for the technical regulation of the gas industry; and

(d)to provide for the transfer of property, rights and liabilities from the Gas and Fuel Corporation of Victoria and for the transfer of staff.

2.Commencement

(1)Part 1 and section 111 come into operation on the day on which this Act receives the Royal Assent.

(2)Subject to sub-section (3), the remaining provisions of this Act, except Part 13, come into operation on a day or days to be proclaimed.

(3)If a provision referred to in sub-section (2) does not come into operation within the period of 12months beginning on, and including, the day on which this Act receives the Royal Assent, it comes into operation on the first day after the end of that period.

(4)Part 13 comes into operation on a day to be proclaimed.

3.Definitions

s. 3

In this Act—

S. 3 def. of "ACCC" inserted by No. 91/1997
s. 4(1).

"ACCC" means the Australian Competition and Consumer Commission established by section6A of the Trade Practices Act 1974 of the Commonwealth and includes a member of the Commission or a Division of the Commission performing functions of the Commission;

S. 3 def. of "Access Code" inserted by No. 91/1997
s. 4(1), repealed by No. 31/1998 s.25(a)(i).

*****

S. 3 def. of "Admin-istrator" inserted by No. 36/1997 s.4(3).

"Administrator", in relation to a gas company, means the Administrator of the gas company appointed under section 17A;

S. 3 def. of "ancillary supply point" inserted by No. 91/1997 s.4(1).

"ancillary supply point" means ancillary supply point as defined in section 6C(3);

"apparatus and works" means, in relation to being associated with a pipeline—

(a)apparatus for inducing or facilitating the flow or movement of anything through the pipeline;

(b)apparatus or structure for giving protection or support to the pipeline;

(c)apparatus for transmitting information or instruction with regard to the operation of the pipeline;

(d)valves, valve chambers, manholes, inspection pits and other similar works annexed to or incorporated in the course of the pipeline;

(e)storage, loading and all ancillary facilities and installations required for the pipeline or used in connection with, or incidental to, the pipeline;

(f)prime movers for the operation of any apparatus or works mentioned in paragraph (a), (d) or (e);

S. 3 def. of "appeal tribunal" inserted by No. 39/1999 s.3.

"appeal tribunal" means the appeal tribunal referred to in section 45L;

S. 3 def. of "board" substituted by No. 36/1997 s.4(1).

"board", in relation to a gas company, means the board of directors of the gas company or, if an Administrator of the gas company has been appointed under section 17A, the Administrator;

s. 3

S. 3 def. of "chief executive officer" inserted by No. 36/1997 s.4(3).

"chief executive officer", in relation to a gas company of which an Administrator has been appointed, means the Administrator of the gas company;

S. 3 def. of "civil penalty provision" inserted by No. 91/1997
s. 4(1), amended by No. 31/1998 s.25(a)(ii).

"civil penalty provision" means—

(a)in Part 4A, a provision of the MSO Rules that is prescribed as a civil penalty provision for the purposes of Division 3 of Part 4A;

*****

S. 3 def. of "conduct provision" inserted by No. 91/1997
s. 4(1), amended by No. 31/1998 s.25(a)(iii).

"conduct provision" means—

(a)in Part 4A, a provision of the MSO Rules that, under the MSO Rules, is a conduct provision for the purposes of Division 3 of Part 4A;

*****

"construction" includes, in relation to a pipeline, the placing or testing of the pipeline;

"customer" means a person to whom a gas company transmits, distributes or supplies gas or provides goods or services;

s. 3

S. 3 def. of "director" amended by No. 36/1997 s.4(2).

"director", in relation to a gas company, other than a gas company of which an Administrator has been appointed means director of the gas company;

"distribute",in relation to gas, means convey gas through distribution pipelines;

S. 3 def. of "distribution pipeline" amended by No. 96/1998 s.257(3)(a).

"distribution pipeline" means a pipeline for the conveyance of gas but does not include—

(a)a transmission pipeline;

(b)a gathering line within the meaning of the Petroleum Act 1998;

S. 3 def. of "domestic customer" repealed by No. 91/1997
s. 4(2)(a).

*****

S. 3 def. of "domestic tariff" amended by No. 36/1997 s.6(1), repealed by No. 91/1997
s. 4(2)(a).

*****

S. 3 def. of "franchise customer" inserted by No. 91/2000 s.3.

"franchise customer" means a customer other than a non-franchise customer;

S. 3 def. of "gas" amended by No. 91/1997
s. 4(2)(b).

"gas" means any gaseous fuel but does not include any gaseous fuel that is declared under section 4 not to be gas for the purposes of this Act or any provision of this Act;

s. 3

"gaseous fuel" includes petrochemical feed stock;

"GASCOR" means the body established by Division 2 of Part 2;

S. 3 def. of "gas company" substituted by No. 91/1997
s. 4(2)(c), amended by No. 40/1998 s.6(1)(a)(i)(ii).

"gas company"—

(a)except in Parts 2 and 7, means—

(i)GASCOR, VENCorp, a gas distribution company, a gas retailer or a gas transmission company; or

(ii)a company that holds all the shares in a gas distribution company, a gas retailer or a gas transmission company;

(b)in Part 2 means a statutory gas company;

(c)in Part 7 means GASCOR or a company all the shares in which are held by GASCOR;

S. 3 def. of "gas corporation" substituted by No. 91/1997
s. 4(2)(c), amended by No. 40/1998 s.6(1)(b).

"gas corporation" means GASCOR or GFCV;

S. 3 def. of "gas distribution company" inserted by No. 91/1997
s. 4(1).

"gas distribution company" means a person declared under section 5A to be a gas distribution company for the purposes of this Act who—

(a)holds a licence to provide services by means of a distribution pipeline; or

s. 3

(b)is exempt from a requirement to hold such a licence because of an Order under section 48C;

S. 3 def. of "gas distribution system" inserted by No. 91/1997
s. 4(1), amended by No. 39/1999 s.4(1).

"gas distribution system" means—

(a)the system of distribution pipelines operated by GASCOR immediately before the commencement of section 11 of the Gas Industry (Further Amendment) Act 1997, other than any part of that system to which an Order under section 5(4) applies; and

(b)any distribution pipeline or system of distribution pipelines that, under section5(2), is an approved connection; and

(c)any distribution pipeline or system of distribution pipelines that, under section 5(2A), is an approved adjunct;

"gas fitting" includes meter, pipeline, burner, fitting, appliance and apparatus used in connection with the consumption of gas;

S. 3 def. of "gas incident" inserted by No. 36/1997 s.4(3), repealed by No. 99/1997 s.119(1).

*****

S. 3 def. of "gas producer" inserted by No. 91/1997
s. 4(1).

"gas producer" means a person who carries on a business of producing natural gas;

S. 3 def. of "gas retailer" inserted by No. 91/1997
s. 4(1).

"gas retailer" means a person declared under section 5A to be a gas retailer for the purposes of this Act who—

(a)holds a licence to sell gas; or

(b)is exempt from a requirement to hold such a licence because of an Order under section 48C;

s. 3

S. 3 def. of "gas transmission company" inserted by No. 91/1997
s. 4(1).

"gas transmission company" means VENCorp or any other person who owns, operates or provides a service by means of a transmission pipeline, being a person declared under section 5A to be a gas transmission company for the purposes of this Act;

S. 3 def. of "gas transmission system" inserted by No. 91/1997
s. 4(1), amended by No. 39/1999 s.4(2).

"gas transmission system" means—

(a)the system of transmission pipelines operated by GTC immediately before the commencement of section 11 of the Gas Industry (Further Amendment) Act 1997, other than any part of that system to which an Order under section5(4) applies; and

(b)any transmission pipeline or system of transmission pipelines that, under section 5(3), is an approved connection; and

(c)any transmission pipeline or system of transmission pipelines that, under section 5(3A), is an approved adjunct;