Energy Legislation (Hardship, Metering and Other Matters) Act 2006

Energy Legislation (Hardship, Metering and Other Matters) Act 2006

Act No. 60/2006

table of provisions

SectionPage

Part 1—Preliminary

1.Purpose

2.Commencement

Part 2—Amendment of Electricity Industry Act2000

3.Division 6 of Part 2 substituted

Division 6—Hardship Policies

41.Definitions

42.Objects

43.Financial hardship policies

44.Commission may develop guidelines

45.Commission may approve financial hardshippolicy

46.Minister may approve financial hardship policy

46A.Licensee not to disconnect if there is compliance with financial hardship policy

4.New Division 6A of Part 2 inserted

Division 6A—Advanced Metering Infrastructure

46B.Definitions

46C.Licence condition requiring compliance with Order

46D.Orders in relation to advanced metering infrastructure

46E.General powers in relation to Orders

Part 3—Amendment of Gas Industry Act 2001

5.New Division 4A of Part 3 inserted

Division 4A—Hardship Policies

48E.Definitions

48F.Objects

48G.Financial hardship policies

48H.Commission may develop guidelines

48I.Commission may approve financial hardshippolicy

48J.Minister may approve financial hardship policy

48K.Licensee not to disconnect if there is compliance with financial hardship policy

Part 4—Amendment of Other Acts

6.New section 132A inserted into Pipelines Act 2005

132A.Funding

7.Energy Safe Victoria Act 2005—General Account

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Endnotes

SectionPage

Victoria

No. 60 of 2006

SectionPage

Energy Legislation (Hardship, Metering and Other Matters) Act 2006[†]

[Assented to 29 August 2006]

Act No. 60/2006

Energy Legislation (Hardship, Metering and Other Matters) Act 2006

Act No. 60/2006

Energy Legislation (Hardship, Metering and Other Matters) Act 2006

The Parliament of Victoria enacts as follows:

Part 4—Amendment of Other Acts

Energy Legislation (Hardship, Metering and Other Matters) Act 2006

Act No. 60/2006

Part 1—Preliminary

1.Purpose

The purpose of this Act is—

(a)to amend the Electricity Industry Act 2000to provide for the introduction and implementation of financial hardship policies and to provide for the regulation of advanced metering infrastructure; and

(b) to amend the Gas Industry Act 2001to provide for the introduction and implementation of financial hardship policies; and

(c) to amend the Pipelines Act 2005to require licensees under that Act to pay an annual amount to Energy Safe Victoria, and to make a consequential amendment to the Energy Safe Victoria Act2005.

2.Commencement

s. 2

(1)This Act, other than Part 4, comes into operation on the day after the day on which it receives the Royal Assent.

(2)Subject to sub-section (3), Part 4 comes into operation on a day to be proclaimed.

(3)If Part 4 does not come into operation before 1July 2007, it comes into operation on that day.

______

See:
Act No.
68/2000.
Reprint No. 3
as at
14 July 2005
and amending
Act Nos
39/2005, 65/2005, 9/2006, 31/2006 and 32/2006.
LawToday:

dpc.vic.
gov.au

Part 2—Amendment of Electricity Industry Act2000

3.Division 6 of Part 2 substituted

s. 3

For Division 6 of Part 2 of the Electricity Industry Act 2000 substitute—

'Division 6—Hardship Policies

41.Definitions

In this Division—

"approved financial hardship policy" means a policy approved by the Commission under section 45 or the Minister under section 46;

"domestic customer" means a person supplied with electricity for use for domestic purposes.

42.Objects

The objects of this Division are—

(a)to recognise that financial hardship may be suffered by domestic customers; and

(b)to promote best practice in electricity service delivery to facilitate continuity of electricitysupply to domestic customers experiencing financial hardship.

43. Financial hardship policies

(1)A licence to sell electricity is deemed to include a condition requiring the licensee to prepare a policy complying with this section to deal with domestic customers experiencing financial hardship and to submit it for approval to—

(a) the Minister, if required to do so under section 46, within the period specified in the notice under that section; and

(b)the Commission by 31 March 2007.

(2)A financial hardship policy submitted under sub-section (1) must include—

(a)flexible payment options for payment of electricity bills; and

(b)provision for the auditing of a domestic customer's electricity usage (whether wholly or partly at the expense of the licensee); and

s. 3

(c)flexible options for the purchase or supply of replacement electrical equipment designed for domestic use from the licensee or a third party nominated by the licensee; and

(d)processes for the early response by both licensees and domestic customers to electricity bill payment difficulties.

(3)A licence to sell electricity is deemed to include a condition requiring the licensee to implement an approved financial hardship policy by the date specified in the approved financial hardship policy.

(4)A term or condition in a contract for the supply or sale of electricity by a licensee to a domestic customer is void to the extent that it is inconsistent with the approved financial hardship policy of the licensee.

44. Commission may develop guidelines

(1)The Commission may prepare and issue guidelines in relation to the development and implementation by licensees of financial hardship policies.

(2)The Commission may amend any guidelines issued under this section.

(3)The Commission must publish each guideline issued under this section and each amendment of a guideline.

45. Commission may approve financial hardshippolicy

s. 3

(1)The Commission must consider a financial hardship policy submitted by a licensee in accordance with section 43 and may approve the policy if it considers it appropriate.

(2)In deciding whether to approve a financial hardship policy the Commission must have regard to—

(a)the essential nature of the electricity supply; and

(b)community expectations that licensees will work with domestic customers to manage customers' present and future electricity usage and associated financial obligations; and

(c)community expectations that the electricity supply will not be disconnected solely because of a customer's inability to pay for the electricity supply; and

(d) the principle that the electricity supply to premises should only be disconnected as a last resort; and

(e) the principle that there should be equitable access to financial hardship policies and that those policies should be transparent and applied consistently.

(3) The Commission must not approve a financial hardship policy that does not include the provisions set out in section43(2).

(4)The Commission may, at the request of the licensee, approve a variation or replacement of an approved financial hardship policy.

46. Minister may approve financial hardship policy

s. 3

(1)The Minister may, by notice in writing,require a licensee to submit a financial hardship policy to the Ministerfor approval within the period specified in the notice.

(2)The Minister may approve a financial hardship policy of a licensee if the Minister considers it appropriate.

(3)In considering a financial hardship policy, the Minister may have regard to the matters set out in section45(2).

(4) A licensee's financial hardship policy approved by the Minister remains in force until a policy is approved by the Commission under section45 in relation to that licensee.

46A. Licensee not to disconnect if there is compliance with financial hardship policy

(1)Alicence to sell electricity is deemed to include a condition that the licensee must not disconnect the supply of electricity to a domestic customer if that customer—

(a)has entered into an agreement with the licensee under the terms of an approved financial hardship policy of the licensee; and

(b)is complying with the terms and conditions of the agreement.

(2) A term or condition in a contract for the supply or sale of electricity by a licensee to a domestic customer is void to the extent that it is inconsistent with a condition set out in sub-section (1).'.

4.New Division 6A of Part 2 inserted

s. 4

After Division 6 of Part 2 of the Electricity Industry Act2000 insert—

'Division 6A—Advanced Metering Infrastructure

46B. Definitions

In this Division—

"advanced metering infrastructure"means infrastructure associated with the installation and operation of electricity metering and communications, including interval meters designed to transmit data to, and receive data from, a remote locality;

"relevantlicensee" meansa licensee determined in accordance with an Order under section46D to bearelevant licensee.

46C. Licence condition requiring compliance with Order

Arelevant licensee's licence is deemed to include a condition requiring thelicensee to comply with an Order under section 46D.

46D. Orders in relation to advanced metering infrastructure

The Governor in Council may by Order published in the Government Gazette—

(a)specify a process for determining who is to be arelevant licensee;

(b) specify the minimum functionalityrequired ofadvanced metering infrastructuresuppliedor installed by or on behalf of arelevant licensee and the associated servicesand systems required for its support;

(c) specify minimum standards of performance and service that must be met by arelevant licensee in respect of the provision, installation, maintenance and operation of advanced metering infrastructure and associated services and systems;

s. 4

(d) require trials of technologies to be conducted by or on behalf of a relevant licensee to identify the most cost-effective methods for the delivery of advanced metering infrastructureand associated services and systems and specify the nature and timing of those trials;

(e) determine the minimum number of customers or supply points (or both) in respect of which a relevant licensee is required to supply or install advanced metering infrastructure and associated services and systems;

(f)determine the date or dates by which, and the location at which, the advanced metering infrastructure and associated services and systems must be supplied or installed and the date or dates by which the infrastructure, services and systems must become operational;

(g) if a retailer is a relevantlicensee,specify the responsibilities of the licensee on being notified of a customer's election to transferto another retailer, to ensure there is no cost impediment or other impediment to that transferarising from the licensee's provision of advanced metering infrastructure;

(h) provide for the setting and regulation of the prices, fees and charges that a relevant licensee who is a distributor may charge for or in connection with the provision, installation, maintenance and operation of advanced metering infrastructure and associated services and systems.

46E. General powers in relation to Orders

s. 4

(1) An Order of the Governor in Council under section 46D may be made so as to apply, adopt or incorporate wholly or partially or as amended by the Order, the provisions of any document, standard, rule, specification or method formulated, issued, prescribed or published by any authority or body whether—

(a)as formulated, issued, prescribed or published at the time the Order is made or at any time before the Order is made; or

(b)as amended from time to time.

(2) An Order of the Governor in Council under section 46D may—

(a)confer powers and functions on, and leave any matter to be decided by, the Commission; and

(b)without limiting paragraph (a), direct the Commission to make amendments to any instrument made by the Commission to give effect to any matter specified in an Order made under section 46D.

(3) An Order of the Governor in Council under section 46Dhas effect as from the day specified in the Order for the period specified in the Order.

s. 4

(4) An Order of the Governor in Council under section 46D has effect according to its tenor despite anything to the contrary in any agreement or contract.'.

______

See:
Act No.
31/2001.
Reprint No. 2
as at
1 March 2005
and amending
Act Nos
25/2004, 108/2004, 33/2005, 39/2005, 61/2005, 9/2006, 29/2006, 31/2006 and 32/2006.
LawToday:

dpc.vic.
gov.au

Part 3—Amendment of Gas Industry Act 2001

5.New Division 4A of Part 3 inserted

s. 5

After Division 4 of Part 3 of the Gas Industry Act 2001 insert—

'Division 4A—Hardship Policies

48E.Definitions

In this Division—

"approved financial hardship policy" means a policy approved by the Commission under section 48I or the Minister under section 48J;

"domestic customer" means a person supplied with gas for use for domestic purposes.

48F.Objects

The objects of this Division are—

(a)to recognise that financial hardship may be suffered by domestic customers; and

(b)to promote best practice in gas service delivery to facilitate continuity of gassupply to domestic customers experiencing financial hardship.

48G. Financial hardship policies

(1)A licence to sell gas is deemed to include a condition requiring the licensee to prepare a policy complying with this section to deal with domestic customers experiencing financial hardship and to submit it for approval to—

(a) the Minister, if required to do so under section 48J, within the period specified in the notice under that section; and

(b)the Commission by 31 March 2007.

(2)A financial hardship policy submitted under sub-section (1) must include—

(a)flexible payment options for payment of gas bills; and

(b)provision for the auditing of a domestic customer's gas usage (whether wholly or partly at the expense of the licensee); and

(c)flexible options for the purchase or supply of replacement gas appliances designed for domestic use from the licensee or a third party nominated by the licensee; and

s. 5

(d)processes for the early response by both licensees and domestic customers to gas bill payment difficulties.

(3)A licence to sell gas is deemed to include a condition requiring the licensee to implement an approved financial hardship policy by the date specified in the approved financial hardship policy.

(4)A term or condition in a contract for the supply or sale of gas by a licensee to a domestic customer is void to the extent that it is inconsistent with the approved financial hardship policy of the licensee.

48H. Commission may develop guidelines

(1)The Commission may prepare and issue guidelines in relation to the development and implementation by licensees of financial hardship policies.

(2)The Commission may amend any guidelines issued under this section.

(3)The Commission must publish each guideline issued under this section and each amendment of a guideline.

48I. Commission may approve financial hardshippolicy

(1)The Commission must consider a financial hardship policy submitted by a licensee in accordance with section 48G and may approve the policy if it considers it appropriate.

(2)In deciding whether to approve a financial hardship policy the Commission must have regard to—

(a)the essential nature of the gas supply; and

s. 5

(b)community expectations that licensees will work with domestic customers to manage customers' present and future gas usage and associated financial obligations; and

(c)community expectations that the gas supply will not be disconnected solely because of a customer's inability to pay for the gas supply; and

(d) the principle that the gas supply to premises should only be disconnected as a last resort; and

(e) the principle that there should be equitable access to financial hardship policies and that those policies should be transparent and applied consistently.

(3) The Commission must not approve a financial hardship policy that does not include the provisions set out in section48G(2).

(4)The Commission may, at the request of the licensee, approve a variation or replacement of an approved financial hardship policy.

48J. Minister may approve financial hardship policy

s. 5

(1)The Minister may, by notice in writing, require a licensee to submit a financial hardship policy to the Minister for approval within the period specified in the notice.

(2)The Minister may approve a financial hardship policy of a licensee if the Minister considers it appropriate.

(3)In considering a financial hardship policy, the Minister may have regard to the matters set out in section48I(2).

(4) A licensee's financial hardship policy approved by the Minister remains in force until a policy is approved by the Commission under section48I in relation to that licensee.

48K. Licensee not to disconnect if there is compliance with financial hardship policy

(1)Alicence to sell gas is deemed to include a condition that the licensee must not disconnect the supply of gas to a domestic customer if that customer—

(a)has entered into an agreement with the licensee under the terms of an approved financial hardship policy of the licensee; and

(b)is complying with the terms and conditions of the agreement.

(2) A term or condition in a contract for the supply or sale of gas by a licensee to a domestic customer is void to the extent that it is inconsistent with a condition set out in sub-section (1).'.

s. 5

______

Part 4—Amendment of Other Acts

See:
Act No.
61/2005 and amending ActNo. 29/2006. LawToday:

dpc.vic.
gov.au

6.New section 132A inserted into Pipelines Act 2005

s. 6

After section 132 of the Pipelines Act 2005 insert—

"132A.Funding

A licensee must pay to Energy Safe Victoria at such time or times as the Minister determines such annual amount (if any) as the Minister determines to be payable by that licensee in respect of the reasonable costs and expenses of Energy Safe Victoria.".

7.Energy Safe Victoria Act 2005—General Account

See:
Act No.
39/2005. LawToday:

dpc.vic.
gov.au

In section 24(2)(a) of the Energy Safe Victoria Act 2005, after "1997" insert "or section 132A of the Pipelines Act 2005".

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Energy Legislation (Hardship, Metering and Other Matters) Act 2006

Act No. 60/2006

Endnotes

[†] Minister's second reading speech—

Legislative Assembly: 19 July 2006

Legislative Council: 9 August 2006

The long title for the Bill for this Act was "to amend the Electricity Industry Act2000, the Energy Safe Victoria Act2005, the Gas Industry Act2001 and the Pipelines Act2005 and for other purposes."