Electricity Companies (Transitional Price Control) Order 1998 (TAS)

Electricity Companies (Transitional Price Control) Order 1998

I make the following order under Schedule 2 to the Electricity Companies Act 1997 .26 June 1998

T. JOHN CLEARY

Minister for Energy

PART 1PreliminaryDivision 1General1Short titleThis order may be cited as the Electricity Companies (Transitional Price Control) Order 1998 . 2CommencementThis order takes effect on the day on which its making is notified in the Gazette. 3InterpretationIn this order – Aurora means Aurora Energy Pty Ltd (ACN 082 464 622); business demand sector means non-residential customers in supply area 1 in respect of whom charges for electricity include a component based on demand for electricity; business energy sector means non-residential customers in supply area 1 in respect of whom charges for electricity are neither measured or used by reference to demand for electricity; Consumer Price Index means the Consumer Price Index: All Groups, Hobart published by the Australian Statistician under the Census and Statistics Act 1905 of the Commonwealth; Corporation means the Hydro-Electric Corporation or, where appropriate, its predecessor, the Hydro-Electric Commission; former order means the Government Prices Oversight (Electricity Prices) Order 1996 ; kwh means kilowatt hour; prescribed inflationary factor has the meaning given by clause 5 ; residential sector means customers in supply area 1 living in private residences; supply area 1 means Tasmania, excluding King Island and Flinders Island; supply area 2 means King Island and Flinders Island. 4Application to King Island and Flinders Island (1)  Subject to subclause (2) , this order does not apply to customers in supply area 2. (2)  Clauses 5 , 16 , 20 and Part 2 apply to customers in supply area 2. 5Prescribed inflationary factorFor the purposes of this order, an inflationary factor is prescribed which is – (a) in respect of the year 1998, the amount ascertained by dividing the Consumer Price Index for the quarter ending on 30 September 1997 by the same Index for the quarter ending on 30 September 1996; and (b) in respect of the year 1999, the amount ascertained by dividing the Consumer Price Index for the quarter ending on 30 September 1998 by the same Index for the quarter ending on 30 September 1996. Division 2Maximum charges allowed for 1997 under the former order61997 limit on fixed charges – residential sectorUnder the former order, the maximum fixed charges for customers of the Corporation in the residential sector in respect of the year 1997 were – (a) for light and power, 52.1 cents a day; and (b) if no other charge is applicable, 10.1 cents a day for a meter. 71997 limit on energy charges – residential sectorThe former order specified the following maximum charges for customers of the Corporation in the residential sector applied in respect of the year 1997: (a) the maximum charge for consumption for the first 500 kwh a quarter for light and power is to be 12.01 cents a kwh; (b) the maximum charge for consumption of more than 500 kwh and less than 1 500 kwh a quarter for light and power is to be 9.34 cents a kwh; (c) the maximum charge for consumption of more than 1 500 kwh a quarter for light and power is to be 7.64 cents a kwh; (d) the maximum amount for the first 500 kwh a quarter under the hot water and hydro heat charge is to be 7.37 cents a kwh; (e) the maximum amount for consumption of more than 500 kwh a quarter under the hot water and hydro heat charge is to be 6.28 cents a kwh; (f) the maximum charge for consumption of off-peak energy for overnight plus daily usage is not to exceed 5.77 cents a kwh; (g) the maximum charge for consumption of off-peak energy for overnight usage only is not to exceed 5.43 cents a kwh. 81997 limit on energy charges – business energy sectorUnder the former order, in the case of charges in the business energy sector – (a) the maximum charge for consumption of the first 500 kwh a quarter was 15.6 cents a kwh in the year 1997; and (b) the maximum charge for consumption of more than 500 kwh a quarter was 12.12 cents a kwh in the year 1997. 91997 special servicesUnder the former order, until 31 December 1997 the charges by the Corporation for a service specified in column 1 of Schedule 1 were as is specified opposite that service in column 2 of that Schedule. 101997 limit on charges for nursing homesThe former order specified the following maximum charges for customers of the Corporation who operated nursing homes: (a) the maximum charge for consumption for the first 500 kwh a quarter is to be 12.01 cents a kwh; (b) the maximum charge for consumption of more than 500 kwh and less than 1 000 kwh a quarter is to be 9.34 cents a kwh; (c) the maximum charge for consumption of more than 1 000 kwh and less than 1 500 kwh a quarter is to be 7.23 cents a kwh; (d) the maximum charge for consumption of more than 1 500 kwh a quarter is to be 7.12 cents a kwh. PART 2Maximum chargesDivision 1General principles11Residential sector (1)  In this clause – 1995/1996 residential billings means the aggregate amount of charges imposed by the Corporation on customers in the residential sector during the financial year ended on 30 June 1996; 1995/1996 residential revenue base means the number of customers in the residential sector during the financial year ended on 30 June 1996 as recorded by the Corporation and their consumption of electricity in that year. (2)  The charges applicable to customers in the residential sector that are imposed – (a) in respect of the year 1998 by both the Corporation and Aurora; and (b) in respect of the year 1999, by Aurora – are to be determined in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 residential revenue base, the result so obtained must not exceed the product of the 1995/1996 residential billings and the prescribed inflationary factor. 12Business energy sector (1)  In this clause – 1995/1996 business energy billings means the aggregate amount of charges imposed by the Corporation on customers in the business energy sector during the financial year ended on 30 June 1996; 1995/1996 business energy revenue base means the number of customers in the business energy sector during the financial year ended on 30 June 1996 as recorded by the Corporation and their consumption of electricity in that year. (2)  The charges imposed by both the Corporation and Aurora applicable to customers in the business energy sector are to be determined, in respect of the year 1998, in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 business energy revenue base, the result so obtained must not exceed the product of 90% of the 1995/1996 business energy billings and the prescribed inflationary factor. (3)  The charges imposed by Aurora applicable to customers in the business energy sector are to be determined, in respect of the year 1999, in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 business energy revenue base, the result so obtained must not exceed the product of 85% of the 1995/1996 business energy billings and the prescribed inflationary factor. 13Business demand sector (1)  In this clause – 1995/1996 business demand billings means the aggregate amount of charges imposed by the Corporation on customers in the business demand sector during the financial year ended on 30 June 1996; 1995/1996 business demand revenue base means the number of customers in the business demand sector during the financial year ended on 30 June 1996 as recorded by the Corporation and their consumption of electricity in that year. (2)  The charges imposed by both the Corporation and Aurora applicable to customers in the business demand sector are to be determined, in respect of the year 1998, in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 business demand revenue base, the result so obtained must not exceed the product of 90% of the 1995/1996 business demand billings and the prescribed inflationary factor. (3)  The charges imposed by Aurora applicable to customers in the business demand sector are to be determined, in respect of the year 1999, in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 business demand revenue base, the result so obtained must not exceed the product of 85% of the 1995/1996 business demand billings and the prescribed inflationary factor. Division 2Specific constraints14Meter charges (1)  The cost attributable to the provision of meters is to be taken into account in fixing all charges imposed by the Corporation or Aurora. (2)  The maximum meter charges which are to be taken into account are – (a) for the residential and business energy sectors, 10.1 cents a day; and (b) for the business demand sector, 45.76 cents a day. 15Residential safety net constraints (1)  Neither the Corporation nor Aurora may increase the amount payable by a customer in the residential sector in respect of the same level and pattern of consumption so as to exceed an amount ascertained in accordance with the prescribed inflationary factor. (2)  For the purposes of subclause (1) , the amount of the prescribed inflationary factor is taken to be increased in 1998 and 1999 by 1.5%. 16Limit on fixed charges – business energy sectorThe maximum fixed charge payable for consumption in the business energy sector is to be as follows: (a) during the year 1998, $0.85 a day; (b) during the year 1999, $0.54 a day. 17Business energy and business demand sectors safety net constraintsAny increase in charges by the Corporation or Aurora for customers in the business energy or business demand sectors on the correct charge for the same level and pattern of consumption is to be limited to the prescribed inflationary factor. 18Special services (1)  In respect of the year 1998, the charges by the Corporation or Aurora for a service specified in column 1 of Schedule 1 are to be as specified opposite that service in column 2 of that Schedule as varied in accordance with the prescribed inflationary factor. (2)  In respect of the year 1999, the charges by the Corporation or Aurora for a service specified in column 1 of Schedule 1 are to be as specified opposite that service in column 2 of that Schedule as varied in accordance with the prescribed inflationary factor. 19Irrigation charges (1)  Any increase in charges specifically for irrigation purposes is to be limited to the prescribed inflationary factor. (2)  Both the Corporation and Aurora must charge separate peak energy rates and off-peak energy rates for the purposes of this clause. 20Contract lighting charges (1)  In this clause – 1995/1996 contract lighting billings means the aggregate amount of charges imposed by the Corporation on customers in the contract lighting sector during the financial year ended on 30 June 1996; 1995/1996 contract lighting revenue base means the number of customers in the contract lighting sector during the financial year ended on 30 June 1996 as recorded by the Corporation and their consumption of electricity in that year; contract lighting sector means the customers in supply area 1 to whom electricity is supplied for contract lighting. (2)  The charges imposed by both the Corporation and Aurora applicable to customers in the contract lighting sector are to be determined, in respect of the year 1998, in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 contract lighting revenue base, the result so obtained must not exceed the product of 90% of the 1995/1996 contract lighting billings and the prescribed inflationary factor. (3)  The charges imposed by Aurora applicable to customers in the contract lighting sector are to be determined, in respect of the year 1999, in accordance with the principle that, if each of those charges were to be applied to each component of the 1995/1996 contract lighting revenue base, the result so obtained must not exceed the product of 85% of the 1995/1996 contract lighting billings and the prescribed inflationary factor. 21Charges for customers on King Island and Flinders Island (1)  This clause applies only to customers in supply area 2. (2)  The charges which the Corporation may impose are limited to – (a) a connection fee for new extensions; and (b) a fixed daily charge (including meter charges); and (c) a charge for energy; and (d) special charges in accordance with Schedule 1. (3)  In respect of connection fees, the charges must reflect – (a) the average cost of providing transformer capacity; and (b) the actual cost of providing an extension having regard to the installation of new poles and wires. (4)  The Corporation must from time to time increase or reduce fixed daily charges so as to ensure that, as far as possible, the level of those charges in respect of supply area 2 in force on the expiration of this order corresponds with comparable charges in force in respect of supply area 1. (5)  The maximum charge for energy consumption is to be 41 cents a kwh. (6)  In fixing any charge for energy consumption, the Corporation must take into account any subsidy or assistance that may be granted by the Crown. 22Charges for approved community groups (1)  In this clause, community group means a group of persons who have a tax exempt status under a law of the Commonwealth relating to income tax and who are approved by the Corporation or Aurora for the purposes of this clause. (2)  The maximum charges for a community group are – (a) a fixed daily charge not exceeding 37 cents a day; and (b) a meter charge not exceeding 6 cents a day; and (c) an energy charge – (i) not exceeding 40 cents a kwh for the first 500 kwh; and (ii) not exceeding 12.01 cents a kwh in excess of 500 kwh. PART 3Miscellaneous provisions23Government charges and leviesAny levy or charge imposed on the Corporation or Aurora under any enactment is to be taken into account by the Corporation or Aurora in fixing its maximum charges and is not to be separately identified. 24Effect of this order on existing contractsWhere a price or charge is payable under a contract relating to the consumption of electricity that is in force on the day on which this order takes effect, nothing in this order is to be taken as having the effect of increasing that price or charge. 25Multiple connections (1)  Where a customer has more than one connection at a site, the fixed charge for each connection after the first is not to exceed 50% of the fixed daily charge for the first connection. (2)  The first connection is taken to be the connection with the highest fixed daily charge. 26Adjustments to maximum prices and chargesIn the years 1998 and 1999, the maximum prices and charges that are referred to in this order without reference to any year or with reference to the year 1997 only are taken to be adjusted in accordance with the prescribed inflationary factor in respect of the relevant year. 27Expiry of orderIn accordance with clause 5 of Schedule 2 to the Electricity Companies Act 1997 , this order expires on 31 December 1999. 28Former order revokedThe former order is revoked. Schedule 1Special services

Clauses 18(2) and 21(2)(d)

Column 1	Column 2
Service	Charge in 1997
$
Charge variation	35
Additional charge	35
Special meter reading	35
Overdue payment	15
Overdue non-payment	35
Meter testing	35
Connection	35
Reconnection	35

Displayed and numbered in accordance with the Rules Publication Act 1953.

Notified in the Gazette on 1 July 1998

This order is administered in the Department of Treasury and Finance.

EXPLANATORY NOTE

(This note is not part of the order) This order –

(a) provides for maximum charges imposed by the Hydro-Electric Corporation and Aurora Energy Pty Ltd until 31 December 1999 in connection with the sale and supply of electricity; and (b) for those charges to be determined by reference to an inflationary factor. This order is of a transitional nature and repeats the maximum charges that were specified in the