Energy Legislation Amendment (Feed-In Tariffs and Improving Safety and Markets) Act 2017

Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Act2017

No. 1 of 2017

table of provisions

SectionPage

Part 1—Preliminary

1Purpose

2Commencement

Part 2—Amendment of the Electricity Industry Act2000

Division 1—Feed-in tariffs

3Meaning of general renewable energy feed-in terms and conditions

4Section 40FBA substituted

5Commission to determine one or more rates for purchases of small renewable energy generation electricity

6New section 121 inserted

Division 2—Exemptions and other matters

7Definitions

8Exemptions

9New Division 3A inserted

10Rateability of certain property

Part 3—Amendment of the Electricity SafetyAct1998

11Recall of electrical equipment

12Offence to fail to comply with requirement

13Director may give directions

Part 4—Amendment of the Gas Safety Act1997

14Recall of gas installations, appliances or components

15Offence to fail to comply with requirement

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

16Application of certain provisions of the National Electricity (South Australia) Act 1996—distribution network connections etc.

17New Division 6 inserted in Part3

18New Schedule 4 inserted

Part 6—Amendment of the National Gas (Victoria) Act 2008

19New Part 7 inserted

20New Schedule 1 inserted

Part 7—Amendment of the Victorian Energy Efficiency Target Act 2007

21Information may be disclosed to specified persons or bodies

22Fees

Part 8—Repeal of amending Act

23Repeal of amending Act

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Endnotes

1General information

SectionPage

Victoria

SectionPage

Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Act2017[†]

No. 1 of 2017

[Assented to 14 February 2017]

Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Act2017
No. 1 of 2017

The Parliament of Victoriaenacts:

Part 8—Repeal of amending Act

Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Act2017
No. 1 of 2017

Part 1—Preliminary

1Purpose

The main purposes of this Act are—

(a)to amend the Electricity Industry Act2000 in relation to—

(i)the minimum annual tariff for general renewable energy feed-in terms and conditions; and

(ii)the registration of persons who are exempt from the obligation to hold a licence to generate, distribute, transmit, sell or supply electricity; and

(iii) thefees generators are required to pay local councils; and

(b)to amend the Electricity Safety Act 1998 in relation to safety directions and the recall of electrical equipment; and

(c)to amend the Gas Safety Act 1997 in relation to the recall of gas installations, appliances and components; and

(d)to amend the National Electricity (Victoria) Act 2005 to apply certain provisions of the National Electricity Law in relation to the operation of wholesale electricity markets and electricity networks; and

(e)to amend the National Gas (Victoria) Act2008 to apply certain provisions of the National Gas Law in relation to the operation of wholesale gas markets and gas pipelines; and

(f)to amend the Victorian Energy Efficiency Target Act 2007—

(i)in relation to Commonwealth agencies the Essential Services Commission may share information with; and

(ii)to allow the Minister to fix fees for the purposes of regulations made under that Act.

2Commencement

(1)This Act, except Division 2 of Part 2 and Parts 3, 4, 5, 6 and 7, comes into operation on the day after the day this Act receives the Royal Assent.

(2)Subject to subsection(3), the remaining provisions of this Act come into operation on a day or days to be proclaimed.

(3)If a provision referred to in subsection(2) does not come into operation before 1January2018, it comes into operation on that day.

Part 2—Amendment of the Electricity Industry Act2000

Division 1—Feed-in tariffs

3Meaning of general renewable energy feed-in terms and conditions

In section 40FB(2)(a) of the Electricity Industry Act2000, after "specified" insert "for a financial year".

4Section 40FBA substituted

For section 40FBA of the Electricity Industry Act2000 substitute—

"40FBA Rates for purchases of small renewable energy generation electricity

For the purposes of section 40FB(2)(a), in each financial year the amount to be credited against the charges payable to a relevant licensee by a customer who is a relevant generator is determined at—

(a)the rate or rates determined by the Commission under section40FBB for thatfinancial year; or

(b)if the Commission has not determined one or morerates under section40FBB for that financial year—the rate or rates that applied immediately before the commencement of thatfinancial year.".

5Commission to determine one or more rates for purchases of small renewable energy generation electricity

(1)In the heading to section 40FBB of the Electricity Industry Act2000, for "rate" substitute "one or more rates".

(2) In section 40FBB(1) of the Electricity Industry Act2000—

(a)for "a rate" substitute "one or more rates";

(b)for "section 40FBA(b)(i)" substitute "section 40FBA(a)".

(3) For section 40FBB(2) of the Electricity Industry Act2000substitute—

"(2) A rate determined under subsection(1) must be—

(a)determined not later than 28February in the financial year preceding thefinancial year in which it is to apply; and

(b)published in the Government Gazette not later than that date.".

(4) In section 40FBB(3) of the Electricity Industry Act2000—

(a)for "making a determination for the purposes of section 40FBA(b)(i)" substitute "determining a rate for the purposes of section40FBA(a)";

(b) in paragraph (b), for "electricity." substitute "electricity; and";

"(c)thefollowing avoided costs—

(i)theavoided social cost of carbon;

(ii)theavoided human health costs attributable to a reductionin air pollution.".

(5) After section 40FBB(3) of the Electricity Industry Act2000 insert—

"(3A)If an Order under subsection(3B) is in effect, the avoided costs that the Commission must have regard to under subsection(3) are the avoided costs determined in accordance with the methodology or factor specified in the Order for the relevant avoided costs.

(3B)The Governor in Council, by Order published in the Government Gazette, may specify a methodology or factor for the determination of—

(a)the avoided social cost of carbon; or

(b)the avoided human health costs attributable to a reduction in air pollution.".

6New section 121 inserted

After section 120 of the Electricity Industry Act2000 insert—

"121 Savings provision—Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Act 2017

(1)Despite the amendments made to this Act by Division1 of Part2 of the amending Act, the rate applying for the 2017 year under section40FBA (as in force immediately before the commencement of section4 of the amending Act) for the purposes of section40FB(2)(a) (as in force immediately before that commencement) is taken to continue to apply until the day the first rate or rates determined under section40FBB apply under section 40FBA for the purposes of section40FB(2)(a).

(2)In this section—

amending Act means the Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Act2017.".

Division 2—Exemptions and other matters

7Definitions

In section 3 of the Electricity Industry Act 2000insert the following definition—

"Register of Exempt Persons means the register established and maintained under section33C;".

8Exemptions

After section 17(2)(e) of the Electricity Industry Act2000 insert—

"(ea) provide that an exemption is effective in respect of a person if the person is registered under Division3A; and".

9New Division 3A inserted

After Division 3 of Part2 of the Electricity Industry Act2000 insert—

"Division 3A—Register of Exempt Persons

33BDefinitions

In this Division—

exemptionmeans an exemption under an Order made under section 17;

relevantexempt person means a person who, because of an Order made under section17, will be exempt from a requirement to obtain a licence to undertake any of the following activities whenthe person is registered in the Register of Exempt Persons—

(a)the generation of electricity for supply or sale;

(b)the transmission of electricity;

(c)the distribution or supply of electricity;

(d)the sale of electricity;

required details means the details required under section 33C(2).

Note

An Order made under section17 may also exempt a person from a requirement to obtain a licence to undertake the generation of electricity for supply or sale, the transmission of electricity,the distribution or supply of electricity, or thesale of electricity without requiring the person to be registered in the Register of Exempt Persons.

33CRegister of Exempt Persons

(1)The Commission must establish and maintain a register of relevant exempt persons (the Register of Exempt Persons).

(2)The Commission must enter the following details in the Register of Exempt Persons in respect of every relevant exempt person registered under section 33E (a registered person)—

(a)the name of the registered person;

(b) the activity the registered person undertakes under an exemption;

(d) whether the exemption applying to the registered person is in force;

(e)the prescribed particulars (if any).

(3)The Register of Exempt Persons may contain any other information the Commission considers appropriate.

(4)The Register of Exempt Persons is to be kept in the form and manner determined by the Commission.

33DApplication for registration in Register of Exempt Persons

(1)A relevant exempt person may apply to the Commission to be registered in the Register of Exempt Persons.

(2) An application must—

(a)be in writing in the form approved by the Commission; and

(b)contain the information required by the Commission.

33ERegistration

(1)On receiving an application under section33D, the Commission must—

(a)register the relevant exempt person in the Register of Exempt Persons; and

(b)enter the required details in the Register of Exempt Persons.

(2) Registration of a relevant exempt person under this section takes effect when the Commission enters the required details in the Register of Exempt Persons.

33FPublic availability of Register of Exempt Persons

The Commission must make the required details kept in the Register of Exempt Persons publicly available on its Internet site, free of charge.".

10Rateability of certain property

(1)In section 94(4) of the Electricity Industry Act2000—

(a)in paragraph (a), for "or an associated
entity of a generation company" substitute ",an associated entity of a generation company or an exempt generator";

(b)in paragraph (b)—

(i)for "or an associated entity of a generation company" substitute ",anassociated entity of a generation company or an exempt generator";

(ii)for "or associated entity to pay" substitute ", associated entity or exempt generator to pay".

(2)In section 94(5) of the Electricity Industry Act2000, for "or associated entity" (wherever occurring) substitute ", associated entity or exempt generator".

(3)In section 94(8) of the Electricity Industry Act2000, for "or an associated entity of a generation company" substitute ", an associated entity of a generation company or an exempt generator".

(4) In section 94(8A) of the Electricity Industry Act2000—

(a)for "or an associated entity of a generation company" substitute ", an associated entity of a generation company or an exempt generator";

(b)for "or the associated entity" substitute ",the associated entity or the exempt generator".

(5)In section 94(9) of the Electricity Industry Act2000—

(a)insert the following definition—

"exempt generator means a person to whom an exemption under an Order made under section17 applies in respect of the generation of electricity for supply or sale;";

(b)in the definition of land used for generation functions, for "land on which a power station is situated" substitute "land used primarily for the generation of electricity on which a generation facility is situated".

Part 3—Amendment of the Electricity SafetyAct1998

11Recall of electrical equipment

(1)For section 65(1)(b) of the Electricity Safety Act1998 substitute—

"(b)specific action is necessary—

(i)to make particular electrical equipment, or a particular class of electrical equipment, safe to use; or

(ii)to render safe the use of particular electrical equipment or a particular class of electrical equipment; or

(c)particular electrical equipment, or a particular class of electrical equipment,
does not comply with the minimum standards prescribed for that equipment or for equipment of that class.".

(2) For section 65(2) of the Electricity Safety Act1998 substitute—

"(2)Energy Safe Victoria, by written notice served on a person to whom this section applies, may require the person to take, within the period specified in the notice, theaction specified in the notice in relation to the particular electrical equipment or electrical equipment of a particular class specified in the notice.

(2A) This section applies to a person—

(a)who supplies or has supplied electrical equipment in the course of the person's business; and

(b)who has supplied—

(i)theparticular electrical equipment specified in the notice; or

(ii)electrical equipment of a particular class specified in thenotice.

Example

Company A was in the business of supplying electrical equipment. Company A then ceased supplying electrical equipment. Energy Safe Victoria may issue a notice to Company A under this section in respect of electrical equipment it supplied in the course of its business.".

(3)In section 65(3) of the Electricity Safety Act1998—

(a)after "include" insert "any of the following actions in relation to theparticular electrical equipment specified in the notice, or electrical equipment of a particular class specified in the notice";

(b) in paragraph (c), for "notice." substitute "notice;";

"(d) carrying out inspections and tests on that electrical equipment or equipment of that class;

(e) rectifyingthat electrical equipment, or equipment of that class, so it complies with a specified standard;

(f) repairing or replacing that electrical equipment or equipment of that class;

(g) arranging for the disconnection fromthe supply of electricity of that electrical equipment or equipment ofthat class;

(h) modifying premises on which that electrical equipment, or equipment of that class, is used or installed so the equipment is safe to use;

(i) affixing warning labels to—

(i)that electrical equipment or equipment of that class; or

(ii)the premises on which that electrical equipment, or equipment of that class, is used or installed;

(j) givingspecified information to owners of premises on which that electrical equipment, or equipment of that class, is used or installed;

(k) givingspecified information to occupiers of premises on which that electrical equipment, or equipment of that class, is used or installed;

(l)placing an advertisement containing specified information in a specified publication that is not a newspaper;

(m)publishingspecified information on the person's Internet site.".

(4) After section 65(5) of the Electricity Safety Act1998 insert—

"(6)A person who is required to take action specified in a notice under this section must pay the cost of taking that action.

(7)A requirement specified in a notice served on a person under this section does not have effect to the extent that it is inconsistent with a requirement for the person to take action specified in a recall notice issued under Division3 of Part 3-3 of the Australian Consumer Law (Victoria).".

12Offence to fail to comply with requirement

At the end of section 66 of the Electricity Safety Act1998 insert—

"(2)A person required to give specified information to an owner or occupier under section 65(3)(j) or (k) does not commit an offence against subsection (1) if the person—

(a)did not know the identity or location of the owner or occupier; and

(b) made reasonable inquiries to identify or locate the owner or occupier for the purpose of giving the owner or occupier the specified information; and

13Director may give directions

(1)In section 141(2) of the Electricity Safety Act1998—

(a)in paragraph (e), for "arising." substitute "arising; or";

(b)after paragraph (e) insert—

"(f)to do any other thing necessary for the prevention and mitigation of bushfires that may arise out of incidents involving electric lines or electrical installations.".

(2)For section 141(3) of the Electricity Safety Act1998 substitute—

"(3)In this section—

relevant person means—

(a)an electricity supplier; or

(b)the holder of a licence under the Electricity Industry Act 2000 to supply or sell electricity; or

(c)any other person supplying electricity;

safety reasons includes the prevention and mitigation of bushfires that may arise out of incidents involving electric lines or electrical installations.".

Part 4—Amendment of the Gas Safety Act1997

14Recall of gas installations, appliances or components

(1)In section 78(1) of the Gas Safety Act1997—

(a)in paragraph (b)(i)—

(i)for "the gas" substitute "a gas";

(ii)for "that class" substitute "a particular class,";

(b)in paragraph (b)(ii)—

(i)for "the gas" substitute "a gas";

(ii)for "that class." substitute "a particular class; or";

(c)after paragraph (b) insert—

"(c)a gas appliance does not comply with the standard that the gas appliance was certified as complying with under an acceptance scheme authorised under this Division.".

(2) For section 78(2) of the Gas Safety Act1997 substitute—

"(2)Energy Safe Victoria, by written notice served on a person to whom this section applies, may require the person to take, within the period specified in the notice, theaction specified in the notice in relation to the particular gas installation, appliance orcomponent specified in the notice or aparticular class of gas installations, appliances or components specified in thenotice.

(2A) This section applies to a person—

(a)who supplies or has supplied gas installations, appliances or components in the course of the person's business; and

(b)who has supplied or sold—

(i)theparticular gas installation, appliance or component specified in the notice; or

(ii)gas installations, appliances or components of aparticular classspecified in the notice.

Example

Company A was in the business of supplying gas installations, appliances and components. Company A then ceased supplying gas installations, appliances and components. Energy Safe Victoria may issue a notice to Company A under this section in respect of gasinstallations, appliances and components itsupplied in the course of its business.".

(3) In section 78(3) of the Gas Safety Act1997—

(a)after "include" insert "any of the following actions in relation to theparticular gas installation, appliance or component specified in the notice, or gas installations, appliances or components of aparticular class specified in the notice";

(b) in paragraph (c), for "notice." substitute "notice;";

"(d)carrying out inspections and tests on—

(i)that gas installation, appliance or component; or

(ii)gas installations, appliances or components of that class;

(e)rectifying—

(i)that gas installation, appliance or component so it complies with a specified standard; or

(ii)gas installations, appliances or components of that class so they comply with a specified standard;

(f)repairing or replacing—

(i)that gas installation, appliance or component; or

(ii)gas installations, appliances or components of that class;

(g) arranging for the disconnection from the supply of gas of—

(i)that gas installation, appliance or component; or

(ii)gas installations, appliances or components of that class;

(h) modifying premises on which—

(i)that gas installation, appliance or component is used or installed so it is safe to use; or

(ii)gas installations, appliances or components of that class are used or installed so they are safe to use;

(i) affixing warning labels to—

(i)that gas installation, appliance or component; or

(ii)gas installations, appliances or components of that class; or

(iii)the premises on which—

(A)that gas installation, appliance or component is used or installed; or

(B)gas installations, appliances or components of that class are used or installed;

(j) giving specified information to owners of premises on which—

(i)that gas installation, appliance or component is used or installed; or

(ii)gas installations, appliances or components of that class are used or installed;

(k) giving specified information to occupiers of premises on which—

(i)that gas installation, appliance or component is used or installed; or