Energy Legislation Amendment Bill 2007

Energy Legislation Amendment Bill 2007

table of provisions

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Part 1—Preliminary

1Purpose

2Commencement

Part 2—Amendment of Electricity Industry Act2000

3New Division 5A of Part 2 inserted

Division 5A—Terms and conditions for the purchase of
small renewable energy generation electricity

40FDefinitions

40GRetailer licence condition relating to purchase of small renewable energy generation electricity

40HWhen do published prices, terms and conditions take effect?

40IReference of small renewable energy generation electricity prices, terms and conditions to Commission

40JCommission assessment of small renewable energy generation prices, terms or conditions

40KCertain Commission assessment reports to be made publicly available

40LCommission determination of small renewable energy generation prices, terms and conditions

40MMinisterial declaration of small renewable energy generation electricity prices, terms or conditions

40NRetailer Internet site must be up to date for small renewable energy generation electricity purchase
offers

4Repeal of spent provision relating to Snowy Hydro's licence

5Repeal of provision superseded by new Division 5A of Part2

6Statute law revision

Part 3—Amendment of Gas Industry Act 2001

7MSO Rules

8New section 52A inserted

52AOperation and effect of MSO Rules

Part 4—Repeal of Amending Act

9Repeal of Amending Act

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Endnotes

561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

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Introduced in the Assembly

Energy Legislation Amendment Bill 2007

561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

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A Bill for an Act to amend the Electricity Industry Act 2000, the Gas Industry Act 2001and for other purposes.

561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

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561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

Energy Legislation Amendment Bill 2007

561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

Energy Legislation Amendment Bill 2007

The Parliament of Victoriaenacts:

561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

Part 4—Repeal of Amending Act

Energy Legislation Amendment Bill 2007

Part 1—Preliminary

1Purpose

The main purpose of this Act isto—

(a)amend the Electricity Industry Act 2000 to—

(i)provide for fair and reasonable prices, terms and conditions for electricity generated by small renewable energy generation facilities and purchased by certain electricity retailers; and

(ii)repeal redundant provisions; and

(b)amend the Gas Industry Act 2001 toclarifythe subject-matters the Market and System Operation Rules may deal with.

2Commencement

s. 2

(1)This Act (except sections 3 and 5) comes into operation on the day after the day on which it receives the Royal Assent.

(2)Subject to subsection (3), sections 3 and 5 come into operation on a day to be proclaimed.

(3)If sections 3 and 5 do not come into operation before 1 January 2008, they come into operation on that day.

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Part 2—Amendment of Electricity Industry Act2000

3New Division 5A of Part 2 inserted

s. 3

See:
Act No.
68/2000.
Reprint No. 4
as at
9 November 2006.
LawToday:
www.
legislation.
vic.gov.au

After section 40E of the Electricity Industry Act 2000 insert—

"Division 5A—Terms and conditions for the purchase of small renewable energy generation electricity

40FDefinitions

(1)In this Division—

biomass energy generation facility meansa generation facility that generates electricity by utilising energy from the combustion of—

(a)biomass; or

(b)biogas;

ESC determined prices, termsand conditions means prices, termsand conditions determined, and containedina report, under section 40L;

ESC recommended prices, termsand conditions means prices, termsandconditionsrecommended, and containedina report, under section40J;

hydro generation facility means a generation facility that generates electricity by utilising the energy from moving water;

non-complying licensee means a relevant licensee that has not complied with the condition set out in section 40G(1);

non-pool electricity means electricity that is supplied other than through the wholesale electricity market;

referred prices, terms and conditions means prices, termsand conditions referred to the Commission for assessment by theMinister under section 40I(1)(a);

relevant generator means—

(a)a generation company; or

(b)a person engaging in the generation of electricity for supply or sale that has been exempted under section 17 from the requirement to hold a licence in respect of that activity;

relevant licensee means aperson that—

(a)holds a licence to sell electricity; and

s. 3

(b)sells electricity to more than 5000customers;

small renewable energy generation electricitymeans non-pool electricity supplied by a relevant generator from a small renewable energy generation facility operated by that generator;

small renewableenergy generation facilitymeansa facility of the following kindthat generates electricity and has an installed or name-plate generating capacity of less than 100kilowatts—

(a)a wind energy generation facility;

(b) a solar energy generation facility;

(c)a hydro generation facility;

(d)a biomass energy generation facility;

(e) a facility or class of facility specified for the purposes of this definition under subsection (2);

solar energy generation facility means a generation facility that generates electricity by converting solar energy into electricity;

wind energy generation facility means a generation facility that generates electricity by converting wind energy into electricity.

(2)The Governor in Council, by Order published in the Government Gazette, may, for the purposes of paragraph (e) of the definition of small renewable energy generation facility,specify a facility or class of facility that generates electricity in any way (other than through the utilisation of energy created from the combustion of fossil fuel or materials or waste products derived from fossil fuels) as a small renewable energy generation facility.

40GRetailer licence condition relating to purchase of small renewable energy generation electricity

s. 3

(1)Without limiting the generality of section 20(2) or(3) or section 21, but subject to this Division, the conditions to which a licence to sell electricity held by a relevant licensee is subject include a condition requiring that licensee topublish an offer comprising the prices at, and terms and conditions on, which that licensee will purchase, from a relevant generator,small renewable energy generation electricity.

(2) A relevant licensee that publishes prices, terms and conditions as required by the condition set out in subsection (1) must give a copy of those prices, terms and conditions to the Minister within 7 days after publishing them.

(3) In this section—

publish means publish—

(a)in the Government Gazette; and

(b)on the licensee's Internet site.

40H When do published prices, terms and conditions take effect?

s. 3

(1) Subject to this Division, prices, terms and conditions that are published in accordance with the condition set out in section 40G(1) take effect 2 months afterthey are publishedin accordance with that condition unless those prices, terms and conditions are referred prices, termsand conditions.

(2) If referred prices, termsand conditionsare,in a report under section 40J,assessed as fair and reasonable, those prices, termsand conditions take effect—

(a)if notice of that report is published in accordance with section 40K on or before the day those prices, terms and conditions would have taken effect but for their referral under section 40I(1)(a)—on that day;

(b)in any other case—on the daynotice of the making of that report is published in accordance with section 40K.

(3) To avoid doubt, referred prices, termsand conditionsthat aresuperseded by ESC recommended prices, terms and conditionsdeclared under section 40M(2) to apply to the purchases of small renewable energy generation electricity by arelevant licensee are not to be taken to have taken effect.

40IReference of small renewable energy generation electricity prices, terms and conditions to Commission

s. 3

(1)The Minister, by written notice, may—

(a)refer prices, termsandconditionspublished in accordance with the condition set out in section 40G(1) to the Commissionfor assessment as to whether they are fair and reasonable if the Minister considers that at least one of those prices, terms or conditions may not be fair and reasonable; or

(b)if a relevant licensee that holds a licence to which the condition set out in section 40G(1) applies does not comply with that condition, request the Commission to determine fair and reasonable prices at, and terms and conditions on, which that licensee must offer to purchase, from a relevant generator,small renewable energy generation electricity.

(2)The Minister may only referprices, terms and conditions under subsection (1)(a) to the Commission for assessment before thoseprices, terms and conditions take effect.

(3) As soon as practicable after a notice under subsection (1) is given to the Commission, the Commission must publish the notice—

(a)in the Government Gazette; and

(b)in a daily newspaper generally circulating in Victoria; and

(c)on the Commission's Internet site.

40JCommission assessment of small renewable energy generation prices, terms or conditions

s. 3

(1)The Commission must—

(a)assess thereferred prices, terms and conditions as to whether they are fair and reasonable; and

(b)report to the Minister on that assessment.

(2)If the Commission assesses any of the referred prices, termsand conditions as not being fair and reasonable, the Commission must, in its report to the Minister,recommend to the Minister prices, terms and conditions it considers are fair and reasonable.

(3)ESC recommended prices, terms and conditions must includeeither or both of the following—

(a)a variation to any price, term or condition that the Commission has (as part of the assessment) assessed as not being fair and reasonable to make that price, term or condition fair and reasonable;

(b)a new price, term or condition to apply in substitution of aprice, term or condition that the Commission has (as part of the assessment) assessed as not being fair and reasonable.

(4) A decision of the Commission relating to an assessment, or a recommendation in a report (includingESC recommended prices, terms and conditions), under this section is not a determination for the purposes of the Essential Services Commission Act 2001.

40K Certain Commission assessment reports to be made publicly available

s. 3

If, in a report under section 40J, the Commission assesses referred prices, terms and conditions as fair and reasonable, the Commission must—

(a)publish notice of the making of that report in the Government Gazette; and

(b)publish that report on its Internet site.

40LCommission determination of small renewable energy generation prices, terms and conditions

(1)The Commission must—

(a)determine the prices, terms and conditions on the Minister's request under section 40I(1)(b); and

(b)report to the Minister on that determination.

(2)Prices, terms and conditions that are determined under this section must be fair and reasonable.

(3)A determination of the Commission under this section is not a determination for the purposes of the Essential Services Commission Act 2001.

40M Ministerial declaration of small renewable energy generation electricityprices, terms or conditions

(1) This section applies if the Ministerreceives a report from the Commissionunder—

(a)section 40Jcontaining ESC recommended prices, terms and conditions; or

(b) section 40Lcontaining ESC determined prices, terms and conditions.

(2) The Minister, by notice published in the Government Gazette,may declare that—

s. 3

(a)ESC recommended prices, termsand conditions apply to the purchase of small renewable energy generation electricity by therelevant licensee named in the declaration whose prices, termsand conditionswere assessed by the Commission as not being fair and reasonable;

(b) ESC determined prices, terms and conditions apply to the purchase of small renewable energy generation electricity by a non-complying licensee named in the declaration.

(3) ESC recommended prices, termsand conditions that have been declared to apply to the purchase of small renewable energy generation electricity—

(a) supersedethereferred prices, termsand conditions the Commission has assessed in a report under section 40J as not being fair and reasonable; and

(b) take effect on—

(i) the day the notice is published in the Government Gazette;or

(ii)if the notice specifies a later day, that day.

(4) ESC determined prices, termsand conditions that have been declared to apply to the purchase of small renewable energy generation electricity take effect on—

(a) the day the notice is published in the Government Gazette;or

(b)if the notice specifies a later day, that day.

.(5) A licence to sell electricity held by a relevant licensee named in a declaration under this section is deemed to include a condition requiring thatlicensee to offer to purchase all small renewable energy generation electricity from a relevant generator at the prices, and on the terms and conditions,declared under that declaration to apply to those purchases.

40NRetailer Internet site must be up to date for small renewable energy generation electricitypurchase offers

s. 3

(1)A relevant licensee that publishes prices, terms and conditions in accordance with the condition set out in section 40G(1) must—

(a)if those prices, terms and conditions become referred prices, terms and conditions, publish on its Internet site a note informing the public of that referral and that explains the effect of that referral; and

(b)if those prices, terms and conditions are superseded by ESC recommended prices,terms and conditions declared under section 40M(2) as applying to purchases of small renewable energy generation electricity by that licensee, publish on its Internet site—

(i)a note to that effect; and

(ii)the ESC recommended prices, terms and conditions that apply; and

(iii)the day on which those ESC recommended prices, terms and conditions take effect.

(2) A non-complying licensee must publish on its Internet site—

(a)ESC determined prices, terms and conditions that have been declared under section 40M(2) as applying to purchases of small renewable energy generation electricity by that licensee; and

(b)the day on which those ESC determined prices, terms and conditions take effect.".

4Repeal of spent provision relating to Snowy Hydro's licence

s. 4

Section 19(5) of the Electricity Industry Act 2000is repealed.

5Repealof provision superseded by new Division 5A of Part2

Section 23B of the Electricity Industry Act 2000is repealed.

6Statute law revision

s. 6

In sections 19(3) and 31(7) of the Electricity Industry Act 2000, for "includes" (where secondly occurring) substitute "include".

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Part 3—Amendment of Gas Industry Act 2001

7MSO Rules

s. 7

See:
Act No.
31/2001.
Reprint No. 3
as at
11 October 2006 and amending
Act No. 61/2005.
LawToday:
www.
legislation.
vic.gov.au

(1) In section 52(4) of the Gas Industry Act 2001, after "ACCC"insert "or VENCorp".

(2) After section 52(4) of the Gas Industry Act 2001 insert—

"(4A) Without limiting the purpose set out in subsection (2), the MSO Rules may—

(a) be of general or limited application;

(b)vary according to the persons, times, places or circumstances to which they are expressed to apply;

(c) include provisions for the resolution of disputes under or in relation to the MSO Rules between persons, including provisions—

(i) requiring the persons in dispute to resolve the dispute in accordance with the Rules before seeking any other remedy in relation to the dispute from a court or otherwise;

(ii) providing for the appointment of a person, in accordance with the MSO Rules, to manage and facilitate the resolution of such disputes;

(iii) providing for the appointment, by a person referred to in subparagraph (ii), of persons (including mediators and arbitrators) to resolve such disputes;

(iv) providing for the procedure for the conduct and resolution of such disputes;

(v) relating to the application and effect of decisions of personsappointed to resolve such disputes;

(vi) providing for the reference,to a court, of questions of law arising in respect of the resolution of such disputes;

(vii)conferring an immunity on, or limiting the liability of, personsappointed to resolve such disputes.".

8New section 52A inserted

s. 8

After section 52 of the Gas Industry Act 2001 insert—

"52A Operation and effect of MSO Rules

The MSO Rules are deemed to have the same force and effect as they would have had if, at the time the Rules were continued in operation by clause 17 of Schedule 5 to the Gas Industry (Residual Provisions) Act 1994, section 52 (as amended by section7 of the Energy Legislation Amendment Act 2007)were in force.".

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Part 4—Repeal of Amending Act

9Repeal of Amending Act

s. 9

This Act is repealed on 1 January 2009.

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561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007

Energy Legislation Amendment Bill 2007

Endnotes

By Authority. Government Printer for the State of Victoria.

561059B.I-20/6/2007BILL LA INTRODUCTION 20/6/2007