Energy Legislation Amendment Act 2012

Energy Legislation Amendment Act 2012

No. 51 of 2012

table of provisions

SectionPage

Part 1—Preliminary

1Purpose

2Commencement

Part 2—Amendment of Electricity Industry Act 2000

3New section 34A inserted

34ACorporations Act displacement

4Corporations Act displacement—suppliers of last resort

5New section 99A inserted

99ACorporations Act displacement

Part 3—Amendment of Gas Industry Act 2001

6New section 41A inserted

41ACorporations Act displacement

7Corporations Act displacement—suppliers of last resort

8New section 213A inserted

213ACorporations Act displacement

Part 4—Amendment of Fuel Emergency Act 1977

9New section 11 inserted

11Corporations Act displacement

Part 5—Amendment of National Electricity (Victoria) Act 2005

10New Division 4 of Part 3 inserted

16HDefinitions

16IApplication

16JEfficiency carryover mechanism is an efficiency benefitsharing scheme

16KModification of definition of regulatory control periodfor purposes of this Division

16LService adjustment is a service target performance incentive scheme

16MDistribution pricing proposals

16NApproval of distribution pricing proposals

16OAER compliance with Tribunal decisions inconsistent with this Division

16PVictorian DNSPs are not required to comply with AERdecisions or determinations that are inconsistent with this Division

11New Schedule 1 inserted

SCHEDULE 1—Specified Building Block Amounts
Applying to Applicable Victorian DistributionDeterminations

PART A—Citipower Distribution Determination 2011-15

PART B—Jemena Distribution Determination 2011-15

PART C—Powercor Distribution Determination 2011-15

PART D—SPI Electricity Distribution Determination
201115

PART E—United Energy Distribution Determination
2011-15

Part 6—Amendment of Energy Safe Victoria Act 2005

12New section 9A inserted

9AFunctions, duties and powers of employees of EnergySafe Victoria under Commonwealth laws

Part 7—Repeal of Amending Act

13Repeal of amending Act

═══════════════

Endnotes

SectionPage

Victoria

SectionPage

Energy Legislation Amendment Act 2012[†]

No. 51 of 2012

[Assented to 18 September 2012]

Energy Legislation Amendment Act 2012
No. 51 of 2012

The Parliament of Victoriaenacts:

Part 7—Repeal of Amending Act

Energy Legislation Amendment Act 2012
No. 51 of 2012

Part 1—Preliminary

1Purpose

The purpose of this Act is—

(a)to amend the Electricity Industry Act 2000, the Gas Industry Act 2001 and the Fuel Emergency Act 1977to provide for Corporations Act displacement provisions relating to directions in emergency supply situations; and

(b)to amend the Electricity Industry Act 2000 and the Gas Industry Act 2001to align the existing Corporations Act displacement provisions relating to suppliers of last resort with the proposed new displacement provisions relating to directions in emergency supply situations; and

(c) to amend the National Electricity (Victoria) Act 2005 to specify certain building block amounts to be applied by the Australian Energy Regulator when approving the pricing proposals of Victorian distribution network service providers under the distribution determinations that apply to those providers; and

(d)to amend the Energy Safe Victoria Act 2005 to enable Energy Safe Victoria's staff to, with the approval of the Minister, perform functions and duties and exercise powers under certain Commonwealth lawsrelating to the promotion of the development and adoption of products that use less energy or produce fewer greenhouse gases.

2Commencement

(1)Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

s. 2

(2) If a provision of this Act does not come into operation before 1 August 2013, it comes into operation on that day.

______

Part 2—Amendment of Electricity Industry Act 2000

3New section 34A inserted

See:
Act No.
68/2000.
Reprint No. 6
as at
17 March 2011
and amending
Act Nos
74/2010, 50/2011, 59/2011, 64/2011 and 21/2012.
LawToday:
www.
legislation.
vic.gov.au

s. 3

After section 34 of the Electricity Industry Act 2000 insert—

"34A Corporations Act displacement

This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 2D and Chapter 5 of that Act.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

4Corporations Act displacement—suppliers of last resort

In section 49K of the Electricity Industry Act 2000, after "provisions of" insert "Chapter 2D and".

5New section 99A inserted

After section 99 of the Electricity Industry Act 2000 insert—

"99A Corporations Act displacement

Note

s. 5

______

Part 3—Amendment of Gas Industry Act 2001

6New section 41A inserted

See:
Act No.
31/2001.
Reprint No. 4
as at
1 July 2009
and amending
Act Nos
57/2009, 68/2009, 10/2010, 55/2010, 72/2010, 74/2010, 50/2011 and 59/2011.
LawToday:
www.
legislation.
vic.gov.au

s. 6

After section 41 of theGas Industry Act 2001 insert—

"41A Corporations Act displacement

Note

7Corporations Act displacement—suppliers of last resort

In section 51K of the Gas Industry Act 2001, after "provisions of" insert "Chapter 2D and".

8New section 213A inserted

After section 213 of theGas Industry Act 2001 insert—

"213A Corporations Act displacement

Note

s. 8

______

Part 4—Amendment of Fuel Emergency Act 1977

9New section 11 inserted

See:
Act No.
8976.
Reprint No. 1
as at
31 December 1996
and amending
Act Nos
33/2005 and 50/2011.
LawToday:
www.
legislation.
vic.gov.au

s. 9

After section 10 of the Fuel Emergency Act 1977 insert—

"11 Corporations Act displacement

This Act is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter2D and Chapter 5 of that Act.

Note

______

Part 5—Amendment of National Electricity (Victoria) Act 2005

10New Division 4 of Part 3 inserted

See:
Act No.
8/2005.
Reprint No. 1
as at
20 May 2010
and amending
Act Nos
55/2010, 74/2010, 64/2011 and 21/2012.
LawToday:
www.
legislation.
vic.gov.au

s. 10

After Division 3 of Part 3 of the National Electricity (Victoria) Act 2005 insert—

'Division 4—Application of pre-2011service adjustment scheme and efficiency carryover mechanism

16HDefinitions

(1)In this Division—

applicable regulatory control period means the period commencing 1 January 2011 and ending on 31 December 2015;

applicableVictorian distribution determination means—

(a)in the case of the Victorian DNSP that is Citipower Pty Ltd (ABN76064651056)—Citipower distribution determination 2011-15;

(b)in the case of the Victorian DNSP that is Jemena Electricity Networks (Vic) Ltd (ABN82064651083)—Jemenadistribution determination 2011-15;

(c)in the case of the Victorian DNSP that is Powercor Australia Limited (ABN89064 651 109)—Powercor distribution determination 2011-15;

(d)in the case of theVictorian DNSP that is SPI ElectricityPty Limited (ABN 91 164 651 118)—SPIElectricity distribution determination 2011-15;

(e)in the case of the Victorian DNSP that is United Energy DistributionPty Ltd (ABN 70 064 651 029)—United Energy distribution determination 2011-15;

Citipower distribution determination 201115 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services providedby Citipower Pty Ltd (ABN76 064 651 056), as varied or remade from time to time;

s. 10

efficiency carryover mechanism, in relation to a Victorian DNSP, means the scheme of that name given effect under the Victorian distribution pricing determination that is applicable to the Victorian DNSP;

Jemena distribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083), as varied or remade from time to time;

modifiedRules means the National Electricity Rules as they have the force of law in this jurisdiction subject to this Division;

Powercor distribution determination 201115 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by Powercor Australia Limited (ABN89 064 651 109), as varied or remade from time to time;

s. 10

service adjustment, in relation to a Victorian DNSP, means the adjustment to the distribution price control applicable to that Victorian DNSP determined in accordance with section 2.3.9 of Volume II of the Victorian distribution pricing determination;

SPI Electricity distribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services providedby SPI ElectricityPty Limited (ABN 91 164 651 118), as varied or remade from time to time;

United Energydistribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by United Energy DistributionPty Ltd (ABN 70 064 651 029), as varied or remade from time to time;

Victorian DNSP means—

(a)Citipower Pty Ltd
(ABN 76 064 651 056);

(b)Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083);

(c)Powercor Australia Limited (ABN89 064 651 109);

(d)SPI ElectricityPty Limited (ABN91 164 651 118);

(e)United Energy DistributionPty Ltd (ABN 70 064 651 029).

s. 10

(2)Words and expressions used in this Division that are defined in Chapter 10 of the National Electricity Rules—

(a)have, subject to paragraph (b), the same meaning in this Division as they have under the Rules; and

(b)are to be read subject to any modifications made to those words or expressions by this Division.

(3)Subsection (2) does not apply to the extent that the context or subject matter otherwise indicates or requires.

16IApplication

(1)The National Electricity (Victoria) Law applies as a law of this jurisdiction subject to this Division.

(2)The National Electricity Rules have the force of law in this jurisdiction subject to this Division.

16JEfficiency carryover mechanism is an efficiency benefit sharing scheme

Despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules, the definition of efficiency benefit sharing scheme in Chapter 10 of the Rules is to be read as if after "clause 6.5.8" there were inserted
", and in the case of a Distribution Network Service Provider that is a Victorian DNSP,the efficiency carryover mechanism that applied to that Victorian DNSP".

16K Modification of definition of regulatory control period for purposes of this Division

Despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules—

s. 10

(a)the reference to a control mechanism in paragraph (b) of the definition of regulatory control period in Chapter 10 of the Rules, as it applies to a Victorian DNSP, is taken to include the efficiency carryover mechanism and service adjustment applicable to that Victorian DNSP;

(b)paragraph (b) of the definition of regulatory control period in Chapter 10 of the Rules is to be read as if after "determination" there were inserted ",and in the case of a Distribution Network Service Provider that is a Victorian DNSP, the Victorian distribution pricing determination".

16LService adjustment is a service target performance incentive scheme

Despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules, the definition ofservice target performance incentive scheme in Chapter 10 of the Rules is to be read as if after "clause 6.6.2" there were inserted ", and in the case of a Distribution Network Service Provider that is a Victorian DNSP, the service adjustmentthat applied to that Victorian DNSP".

16M Distribution pricing proposals

(1)This section applies to a Victorian DNSPthat submits a pricing proposal under rule 6.18.2(a)(2) of the National Electricity Rules for the third and each subsequent regulatory year of the applicable regulatory control period.

s. 10

(2)Despite anything to the contrary in the National Electricity Rules, rule 6.18.2 of the Rules applies to the Victorian DNSP as if a reference to any applicable distribution determination in that rule were a reference to the applicable Victorian distribution determination as modified by operation of subsection(3).

(3)For the purposes of subsection (2), an applicable Victorian distribution determination is taken to include—

(a)in the case of the applicable Victorian distribution determination that is the Citipowerdistribution determination 2011-15—Tables 19 and 20 set out in Part A of Schedule 1 instead of Tables19 and 20 of that determination;

(b)in the case of the applicable Victorian distribution determination that is the Jemena distribution determination 2011-15—Tables 19 and 20 set out in Part B of Schedule 1 instead of Tables19 and 20 of that determination;

(c)in the case of the applicable Victorian distribution determination that is the Powercor distribution determination 2011-15—Tables 19 and 20 set out in Part C of Schedule 1 instead of Tables19 and 20 of that determination;

(d)in the case of the applicable Victorian distribution determination that is the SPI Electricity distribution determination 2011-15—Tables 19 and20 set out in Part D of Schedule 1 instead of Tables 19 and 20 of that determination;

s. 10

(e)in the case of the applicable Victorian distribution determination that is the United Energy distribution determination 2011-15—Tables 18 and19 set out in Part E of Schedule 1 instead of Tables 18 and 19 of that determination.

(4) To avoid doubt—

(a)the reference to the applicable Victorian distribution determination in subsections (2) and (3) is not to be read as—

(i) including any variations made to that determination that are inconsistent with the modified Rules or this Division; or

(ii) if that determination is remade, including any part of that remade determination that is inconsistent with the modified Rules or this Division; and

(b)the matters that the Victorian DNSP must set out in the pricing proposal in accordance with rule 6.18.2(b)(1) to (6) and rule 6.18.2(b)(6A) and (6B) must be consistent with subsections (2) and(3).

16N Approval of distribution pricing proposals

(1)This section applies if a Victorian DNSP submits a pricing proposal to the AER for approval under rule 6.18.8 of the National Electricity Rules that is a pricing proposal to which section16Mapplies.

s. 10

(2)Despite anything to the contrary in the National Electricity Rules, rule 6.18.8of the Rules is taken to apply tothe AER as if a reference to any applicable distribution determination in that rule were a reference to the applicable Victorian distribution determination modified to include the building block amounts set out in the Tables in the Part of Schedule 1 applicable to that determination (the modified distribution determination).

(3)In addition, despite anything to the contrary in the National Electricity Rules, the AER must refuse to approve the pricing proposal or a part of the pricing proposal if the proposal or part does not comply with the modified distribution determination.

(4) To avoid doubt—

(a)the reference to the applicable Victorian distribution determination in subsection (2),or the modified distribution determination in subsection (3), is not to be read as—

(i) including any variations made to that determination that are inconsistent with the modified Rules or this Division; or

(ii)if that determination is remade, including any part of that remade determination that is inconsistent with the modified Rules or this Division; and

s. 10

(b)subsection (3) is not to be read as preventing the AER from approving any other part of the pricing proposal that is consistent with the modified distribution determination.

16OAER compliance with Tribunal decisions inconsistent with this Division

(1) TheAERis not required to comply with those parts of—

(a)the decision of the Australian Competition Tribunal in the proceedings known as Application by United Energy Distribution Pty Limited [2012] ACompT 1 (file numbers ACT 6 of 2010, ACT 7 of 2010, ACT 8 of 2010, ACT9 of 2010, ACT 10 of 2010); or

(b)any other decision of the Australian Competition Tribunal that relates to an applicable Victorian distribution determination—

that are inconsistent with the modified Rules or this Division.

(2) Subsection (1) applies despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules.

16PVictorian DNSPs are not required to comply with AERdecisions or determinations that are inconsistent with this Division

(1) A Victorian DNSP is not required to comply with a decision or determination, or any part of a decision or determination, of the AER that is inconsistent with the modified Rules or this Division.

(2) Subsection (1) applies despite anything to the contrary in—

s. 10

(a)theNational Electricity (Victoria) Law; or

(b)the National Electricity Rules; or

(c)theElectricity Industry Act 2000; or

(d)a licence under the Electricity Industry Act 2000 held by a Victorian DNSP.'.

11New Schedule 1 inserted

s. 11

After Part 5 of the National Electricity Victoria Act 2005 insert—

"______

SCHEDULE 1

Sections16M and 16N

Specified Building Block Amounts Applying to Applicable Victorian Distribution Determinations

PART A

Citipower Distribution Determination 2011-15

Table 19

Building block amounts resulting from ESCVECM carryover for CitiPower ($ million, 2010)

2011 / 2012 / 2013 / 2014 / Total
4.38 / –8.01 / –5.74 / –4.93 / –14.30

Table 20

Building blocks resulting from the ESCV S factor close out
($ million, 2010)

2011 / 2012 / 2013 / 2014 / 2015
–2.19 / –4.50 / –3.33 / –0.33 / –3.53

PART B

Jemena Distribution Determination 2011-15

Table 19

Building block amounts resulting from ESCVECM carryover for Jemena ($ million, 2010)

2011 / 2012 / 2013 / 2014 / Total
17.75 / 11.73 / 13.99 / –1.90 / 41.57

Table 20

Building blocks resulting from the ESCV S factor close out
($ million, 2010)

2011 / 2012 / 2013 / 2014 / 2015
5.46 / 0.92 / –0.20 / –0.19 / –9.63

s. 11

PART C

Powercor Distribution Determination 2011-15

Table 19

Building block amounts resulting from ESCVECM carryover for Powercor ($ million, 2010)

2011 / 2012 / 2013 / 2014 / Total
0.0 / 11.18 / –4.66 / –9.72 / –3.20

Table 20

Building blocks resulting from the ESCV S factor close out
($ million, 2010)

2011 / 2012 / 2013 / 2014 / 2015
–5.95 / –20.94 / –5.22 / –0.31 / 0.67

PART D

SPI Electricity Distribution Determination 201115

Table 19

Building block amounts resulting from ESCVECM carryover for SPIElectricity ($ million, 2010)

2011 / 2012 / 2013 / 2014 / Total
11.11 / –23.64 / –8.64 / 1.78 / –19.39

Table 20

Building blocks resulting from the ESCV S factor close out
($ million, 2010)

2011 / 2012 / 2013 / 2014 / 2015
40.22 / 20.21 / –7.04 / –1.59 / –78.38

s. 11

PART E

United Energy Distribution Determination
2011-15

Table 18

Building block amounts resulting from ESCVECM carryover for United Energy ($ million, 2010)

2011 / 2012 / 2013 / 2014 / Total
– / – / – / – / –

Table 19

Building blocks resulting from the ESCV S factor close out
($ million, 2010)

2011 / 2012 / 2013 / 2014 / 2015
–4.80 / –4.80 / –6.21 / –6.15 / –10.76

s. 11

______

Part 6—Amendment of Energy Safe Victoria Act2005

12New section 9A inserted

See:
Act No.
39/2005
and amending
Act Nos
60/2006, 80/2006, 28/2007, 55/2010 and 29/2011.
LawToday:
www.
legislation.
vic.gov.au

After section 9 of the Energy Safe Victoria Act 2005 insert—

s. 12

"9A Functions, duties and powers of employees of Energy Safe Victoria under Commonwealth laws

Subject to the approval of the Minister and any conditions on that approval, an employee of Energy Safe Victoria may perform a function or duty, or exercise a power, under a law of the Commonwealth—