Electricity Industry (Amendment) Act 1996 (Vic)

Electricity Industry (Amendment) Act 1996

Act No. 8/1996

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2
3.	Principal Act	2

PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT

1993   3

4.	Definitions	3
5.	Directions affecting electricity supply systems	4
6.	Repeal of section 17	4
7.	Repeal of section 34	4
8.	New section 36A inserted	4
36A. Electricity corporations to act in accordance with corporate

plan 4

9.	Amendment of sections 42B and 46	5
10.	Section 53 substituted	6
53. Directions	6
11.	New Division 2 of Part 4 substituted	7
Division 2—Office of the Chief Electrical Inspector	7
55. Establishment	7
56. Functions	7
57. Powers	8
58. Delegation	8
59. Office consists of chief electrical inspector	8
60. Appointment of chief electrical inspector	8
61. Terms and conditions of appointment	9
61A. Vacancies, resignations and removal from office	9
61B. Acting appointments	9
61C. Validity of decisions	10
61D. Disclosure of interests	10
61E. Corporate plan	11
61F. Statement of corporate intent : contents	12
61G. Office to act in accordance with corporate plan	13

i

Section Page

61H. Nothing void merely because of non-compliance	14
61I. Protection from liability	14
61J. Staff	14
61K. Improper use of information	14
61L. Costs of Office	15
61M. Annual report	15

12.	Amendment of section 91	15
13.	New section 91AA inserted	15
91AA. Trade Practices Act and Competition Code	15
14.	Repeal of section 91AA	17
15.	Amendment of section 158C	17
16.	Amendment of section 173	18

PART 3—TRANSITIONAL AND CONSEQUENTIAL 19

17.	Financial accommodation levy	19
18.	Amendment of Electric Light and Power Act 1958	19
19.	Amendment of State Electricity Commission Act 1958	20
20.	Amendment of Electricity Industry (Amendment) Act 1994	20

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NOTES 21

ii

Victoria

No. 8 of 1996

Electricity Industry (Amendment) Act

1996†

[Assented to 25 June 1996]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to make certain
amendments to the Electricity Industry Act
1993.

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 2

2. Commencement

(1) Subject to this section, this Act comes into

operation on the day on which it receives the

Royal Assent.

(2) Section 4(1) is deemed to have come into

operation on 20 June 1995.

(3) Section 6 comes into operation on a day to be

proclaimed.

(4) If section 6 does not come into operation before

31 December 1997, it comes into operation on that

day.

(5) Section 14 comes into operation on 1 January

2001.

(6) Section 20 is deemed to have come into operation on 20 December 1994.

No. 130/1993.

3. Principal Act Reprinted to No. 110/1994

In this Act, the Electricity Industry Act 1993 is	and
called the Principal Act.	subsequently amended by Nos. 42/1995, 56/1995 and 79/1995.

_______________
Electricity Industry (Amendment) Act 1996

s. 4 Act No. 8/1996

PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT

1993

4. Definitions

(1) In section 3(1) of the Principal Act—

(a) after the definition of "PoolCo" insert— '"Power Net Victoria" means the body

established under Division 2 of Part 2;'; in the definition of "public distribution company" for "State or by" substitute "State or";

(b)
(c)	in the definition of "public generation company" for "State or by" substitute "State or".

(2) In section 3(1) of the Principal Act, the definition
of "chief electrical inspector" is repealed.

(3) In section 3(1) of the Principal Act, for the

definition of "Office" substitute—

'"Office"—

(a)	except in Part 4, means the Office of the Regulator-General under the Office of the Regulator-General Act 1994; and
(b)	in Part 4, means the Office of the Chief Electoral Inspector established under that Part;'.

(4) After section 3(2) of the Principal Act insert—

"(3) In any Act, other than this Act, and in all

subordinate instruments (within the meaning
of the Interpretation of Legislation Act
1984) made under any Act and in all other
instruments, unless the contrary intention
appears, a reference to the chief electrical

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 5

inspector must be construed as a reference to
the Office of the Chief Electrical Inspector
established under Part 4.".

(5) In section 4(1) of the Principal Act for "or VPX or SEC" (where twice occurring) substitute ", VPX, SEC or any other body".

5. Directions affecting electricity supply systems

In section 17 of the Principal Act, sub-section (7) is repealed.

6. Repeal of section 17

Section 17 of the Principal Act is repealed.

7. Repeal of section 34

Section 34 of the Principal Act is repealed.

8. New section 36A inserted

After section 36 of the Principal Act insert—

'36A. Electricity corporations to act in
accordance with corporate plan

(1) Each electricity corporation must act only in

accordance with its corporate plan, as
existing from time to time, unless it has first
obtained the written approval of the
Treasurer and the Minister to do otherwise.

(2) Nothing done by an electricity corporation is

void or unenforceable merely because the
electricity corporation has failed to comply
with section 35, 36 or this section.

(3) In this section, "electricity corporation"

includes VPX, a public distribution company
and a public generation company.'.

Electricity Industry (Amendment) Act 1996

s. 9 Act No. 8/1996

9. Amendment of sections 42B and 46

(1) In section 42B(1) of the Principal Act—

(a)	after "A generation company" insert "or an associated entity of a generation company";
(b)	after "the generation company" insert "or associated entity".

(2) After section 42B(3) of the Principal Act insert— '(4) In this section, "associated entity", in

relation to a generation company, means a
person to whom an exemption under section
160 applies in respect of an activity relating
to the generation of electricity for supply or
sale, being an activity for which the
generation company holds a licence under

Part 12.'.

(3) In section 46 of the Principal Act—

(a)

in sub-section (2), after "generation an associated entity of a generation company";

(b)	in sub-section (2)(b), after "that company" insert "or associated entity";
(c)

in sub-section (3), after "generation associated entity";

(d) in sub-section (6), after "generation company" insert "or an associated entity of a generation company".

(4) In section 46(7) of the Principal Act, before the
definition of "generation company" insert—

'"associated entity", in relation to a generation

company, means a person to whom an
exemption under section 160 applies in

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 10

respect of an activity relating to the
generation of electricity for supply or sale,
being an activity for which the generation

company holds a licence under Part 12.'.

10. Section 53 substituted

For section 53 of the Principal Act substitute—

"53. Directions

(1) The Treasurer and the Minister, acting

jointly, may from time to time, by written
notice to the Administrator, give such
directions to the Administrator as the

Treasurer or Minister think fit.

(2) The Administrator must comply with a

direction given under this section but an act
or decision of the Administrator is not
invalid merely because of a failure to comply

with such a direction.

(3) The Administrator must keep a copy of each

for inspection at the office of the

direction given under this section available than any direction, or part of a direction, that the Treasurer and the Minister have declared to be confidential.

(4) The Administrator must include in the

annual report of SEC under Part 7 of the summary, in a form approved by the Treasurer, of each direction given to the Administrator under this section, together with a statement of the Administrator's response to the direction.

(5) A notice containing a direction given under this section is an exempt document for the

Electricity Industry (Amendment) Act 1996

s. 11 Act No. 8/1996

purposes of the Freedom of Information

Act 1982.".

11. New Division 2 of Part 4 substituted

For Division 2 of Part 4 of the Principal Act substitute—

'Division 2—Office of the Chief Electrical

Inspector

55. Establishment

(1) There is established a body by the name

"Office of the Chief Electrical Inspector".

(2) The Office—

(a) is a body corporate with perpetual succession;

(b) has an official seal;

(c) may sue and be sued;

(d)	may acquire, hold and dispose of real and personal property;
(e)	may do and suffer all acts and things that a body corporate may by law do and suffer.

(3) All courts must take judicial notice of the

seal of the Office affixed to a document and,
until the contrary is proved, must presume
that it was duly affixed.

(4) The official seal of the Office must be kept

in such custody as the Office directs and
must not be used except as authorised by the
Office.

56.

Functions conferred on the Office or on the chief

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 11

electrical inspector under this Act, the State other Act.

Electricity Commission Act 1958, the

57.

Powers the Office—

(a)	has such powers as are conferred on it by this or any other Act; and
(b)	may do all other things necessary or convenient to be done for or in connection with, or as incidental to, the achievement of its objectives or the performance of its functions.
58.

Delegation official seal, delegate to a person approved by the Minister any function or power of the Office, other than this power of delegation.

59.  Office consists of chief electrical inspector The Office consists of the chief electrical inspector.

60. Appointment of chief electrical inspector

(1) The Governor in Council, on the

recommendation of the Minister, may
appoint a person to be the chief electrical
inspector.

(2) The Public Sector Management Act 1992

(except Part 9) does not apply to the chief
electrical inspector in respect of the office of
chief electrical inspector.

Electricity Industry (Amendment) Act 1996

s. 11 Act No. 8/1996

61. Terms and conditions of appointment
(1) The chief electrical inspector shall be

appointed for such term, not exceeding 5 years, as is specified in the instrument of appointment, but is eligible for

re-appointment.

(2) The chief electrical inspector holds office,

subject to this Act, on such terms and
conditions as are determined by the Minister.

61A. Vacancies, resignations and removal from

office

(1) The chief electrical inspector ceases to hold office if he or she becomes bankrupt.

(2) The chief electrical inspector may resign by writing delivered to the Governor.

(3) The Governor in Council may remove the chief electrical inspector from office.

61B. Acting appointments

(1) The Governor in Council may appoint a

person to act as chief electrical inspector—

(a)	during a vacancy in the office of the chief electrical inspector;
(b)

during any period, or during all periods, absent or, for any other reason, is unable to perform the functions of chief electrical inspector—

but a person appointed to act during a
vacancy must not continue so to act for more
than 6 months, unless re-appointed.

(2) An acting appointment shall be for the term

and on the conditions determined by the
Governor in Council.

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 11

(3) The Governor in Council may at any time terminate an acting appointment.

(4) A person appointed under this section has all

the powers, and may perform all the
functions, of the person for whom he or she
is acting.

61C. Validity of decisions

(1) An act or decision of the Office is not invalid merely because of a defect or irregularity in, or in connection with, the appointment of the chief electrical inspector.

(2) Anything done by or in relation to a person

purporting to act as chief electrical inspector
is not invalid merely because—

(a)	the occasion for the appointment has not arisen; or
(b)	there was a defect or irregularity in relation to the appointment; or
(c)	the appointment has ceased to have effect; or
(d)	the occasion for the person to act had not arisen or had ceased.

61D. Disclosure of interests

(1) If the chief electrical inspector has a direct or

considered, or about to be considered, by the

indirect pecuniary interest in a matter being after the relevant facts come to his or her knowledge, disclose the nature of the interest to the Minister.

(2) Sub-section (1) does not apply if the interest

is as a result of the supply of goods or
services that are available to members of the
public on the same terms and conditions.

Electricity Industry (Amendment) Act 1996

s. 11 Act No. 8/1996

(3) A failure to comply with this section does

not affect the validity of any act or decision
of the Office or chief electrical inspector.

61E. Corporate plan

(1) The Office must prepare a corporate plan

each year.

(2) The Office must give a copy of the proposed

plan to the Minister and the Treasurer on or
before 31 May in each year.

(3) The proposed corporate plan must be in or to the effect of a form approved by the Minister and the Treasurer and must include—

(a)	a statement of corporate intent in accordance with section 61F;
(b)

a business plan containing such Minister requires;

(c) financial statements containing such
information as the Treasurer requires.

(4) The Office must consider any comments on the proposed plan that are made to it by the Treasurer or the Minister within 2 months

after the plan was submitted to the Treasurer

and the Minister.

(5) The Office must consult in good faith with

communication to it of the comments, must
make such changes to the plan as are agreed
between the Treasurer, the Minister and the

the Treasurer and the Minister following to the Treasurer and the Minister within 2 months after the commencement of the financial year.

Electricity Industry (Amendment) Act 1996

s. 11
s. 11

Act No. 8/1996

(6) The plan, or any part of the plan, must not be published or made available except for the purposes of this Division without the prior approval of the Office, the Treasurer and the

Minister.

(7) The plan may be modified at any time by the

Office with the agreement of the Treasurer and the Minister.

(8) If the Office, by written notice to the

Treasurer and the Minister, proposes a
modification of the plan, the Office may,
within 14 days, make the modification unless
the Treasurer or Minister, by written notice
to the Office, directs the Office not to make

it.

(9) The Treasurer or the Minister may, from

time to time, by written notice to the Office, direct the Office to include in, or omit from, a statement of corporate intent, a business
plan or a financial statement of a specified
kind, any specified matters.

(10) Before giving a direction under this section, the Treasurer and the Minister must consult with the Office as to the matters to be

referred to in the notice.

(11) The Office must comply with a direction under this section.

(12) At any particular time, the statement of

corporate intent, the business plan or the financial statements for the Office are the statements and plan last completed, with any
modifications or deletions made in

accordance with this Division.

61F. Statement of corporate intent : contents

Electricity Industry (Amendment) Act 1996
Act No. 8/1996

Each statement of corporate intent must specify for the Office, in respect of the financial year to which it relates and each of the 2 following financial years, the following information—

(a) the objectives of the Office;

(b)	the nature and scope of the activities to be undertaken by the Office;
(c)	the accounting policies to be applied in the accounts;
(d)	the performance targets and other measures by which the performance of the Office may be judged in relation to its stated objectives;
(e)	the kind of information to be provided to the Treasurer and the Minister by the Office during the course of those financial years;
(f)	such other matters as may be agreed on by the Treasurer, the Minister and the Office from time to time.

61G. Office to act in accordance with corporate

plan

The Office must act only in accordance with its corporate plan, as existing from time to time, unless it has first obtained the written approval of the Minister and the Treasurer to do otherwise.

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 11

61H. Nothing void merely because of

non-compliance

Nothing done by the Office is void or unenforceable merely because the Office has failed to comply with this Division.

61I. Protection from liability

(1) The chief electrical inspector is not

personally liable for anything done or

omitted to be done in good faith—

(a)	in the exercise of a power or the performance of a function of the Office; or
(b)	in the reasonable belief that the act or omission was in the exercise of a power or the performance of a function of the Office.

(2) Any liability resulting from an act or

omission that, but for sub-section (1), would
attach to the chief electrical inspector

attaches instead to the Office.

61J. Staff

(1) The Office may appoint or engage such

officers and employees as are necessary for
the performance of its functions.

(2) The terms and conditions of appointment or employment are as determined by the Office.

61K. Improper use of information

A person who is, or has been, chief electrical inspector or an officer or employee of the Office, must not make improper use of any information acquired only in the course of his or her duties to obtain directly or

Electricity Industry (Amendment) Act 1996

s. 12 Act No. 8/1996

indirectly any pecuniary or other advantage
for himself or herself or for any other person.

Penalty: 50 penalty units.

61L. Costs of Office

Each electricity corporation, VPX and each distribution company and generation company must pay to the Office at such time or times as the Treasurer determines such annual amount as the Treasurer and the Minister determine in respect of the remuneration and reasonable costs and expenses of the Office and the chief electrical inspector.

61M. Annual report

The Office must include a copy of the
statement of corporate intent last completed
in its annual report for a financial year under
Part 7 of the Financial Management Act

1994.'.

12. Amendment of section 91

In section 91 of the Principal Act, for "Trade Practices Act 1974 of the Commonwealth as amended and in force for the time being"

substitute "Trade Practices Act 1974 of the Commonwealth and the Competition Code".

13. New section 91AA inserted

After section 91 of the Principal Act insert—

'91AA. Trade Practices Act and Competition Code

(1) For the purposes of Part IV of the Trade

Practices Act 1974 of the Commonwealth and the Competition Code, this Act authorises a person or body referred to in sub-section (2)—

Electricity Industry (Amendment) Act 1996

Act No. 8/1996	s. 13
(a)	to supply and purchase goods and services;

(b) to enter into and perform agreements;
(c) to comply with obligations;

(d) to exercise rights and powers—

as required or authorised under, and subject
to such terms and conditions as are

applicable under—

(e) a licence issued under Part 12;

(f) the pool rules within the meaning of Part 12;

(g) an Order under section 158A;

(h) an agreement referred to in sub-section (3).

(2) The persons and bodies referred to in this sub-section are—

(a) Power Net Victoria; (b) Generation Victoria; (c) Victorian Power Exchange;

(d)	a subsidiary of a body referred to in paragraph (a), (b) or (c);
(e)	a person holding a licence issued under Part 12.

(3) The agreements referred to in this sub-

section are each agreement (entitled "vesting
contract") entered into by a distribution
company in October 1994 or March 1995 for
the purposes of hedging the price payable by
the distribution company under the pool
rules within the meaning of Part 12 in
relation to electricity acquired by the
distribution company for sale to franchise

Electricity Industry (Amendment) Act 1996

s. 14 Act No. 8/1996

customers, being an agreement entered into

with—

(a) a generation company; or

(b) SEC; or

(c) Energy Brix Corporation Australia (a State Body within the meaning of the State Owned Enterprises Act 1992).'.

14. Repeal of section 91AA

Section 91AA of the Principal Act is repealed.

15. Amendment of section 158C

(1) In section 158C(a) and (b) of the Principal Act

omit "or 158B".

(2) After section 158C(b) of the Principal Act

insert—
"(ba) an Order in force under section 158B—

(i)  may be amended, with effect from the date of its commencement, by one Order only of the Governor in Council published in the Government Gazette;

(ii) may be wholly revoked;

(bb) an Order under paragraph (ba)(i) cannot be amended or varied;

(bc) an Order cannot be made under section

158B, other than an Order—

(i) wholly revoking another Order; or

(ii)  revoking another Order and making a new Order with effect from the commencement of the first Order;

(bd) if an Order is made under section 158B

revoking another Order and making a new Order, a later Order cannot be made under

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 16

that section, other than an Order wholly

revoking another Order;".

16. Amendment of section 173

(1) In section 173 of the Principal Act, for sub-section

(5) substitute—

"(5) A person, not being a licensee, does not hold

a prohibited interest within the meaning of
sub-section (3) because the person has a
controlling interest in 2 or more licensees or
a substantial interest in 3 or more licensees

if—

(a)	the Office is satisfied that each such interest is held only as a passive institutional investment; and
(b)	the Office determines in writing that the person does not hold a prohibited interest.

(5A) The Office may make a determination under

sub-section (5) with effect from 1 March
1996, or such later date as is specified in the
determination, in relation to the holding of
an interest before the commencement of
section 16 of the Electricity Industry
(Amendment) Act 1996.".

(2) In section 173(6) of the Principal Act, for

"sub-section (7)(a)" substitute "sub-section

(5)(a)".

_______________
Electricity Industry (Amendment) Act 1996

s. 17 Act No. 8/1996

PART 3—TRANSITIONAL AND CONSEQUENTIAL

17. Financial accommodation levy

(1) Part 6C of the Financial Management Act 1994 applies to a distribution company in respect of the financial year commencing on 1 July 1995 as if

the distribution company had been declared to be
a leviable authority under that Part before it
ceased to be a public authority.

(2) A distribution company is not liable to pay a levy under Part 6C of the Financial Management Act 1994 in respect of a period after it ceases to be a

public authority.

(3) In this section—

"distribution company"—

(a) Citipower Pty ACN 064 651 056;

(b) Eastern Energy

Ltd ACN 064 651 118;

(c)	Powercor
Australia Ltd ACN 064 651 109;
(d)	Solaris Power
Ltd ACN 064 651 083;
(e)	United Energy
Ltd ACN 064 651 029;

"public authority" has the same meaning as in

the Treasury Corporation of Victoria Act
1992.

18. Amendment of Electric Light and Power Act 1958

No. 6241.

Reprinted to	In section 3(1) of the Electric Light and Power
No. 110/1994.	Act 1958, for the definition of "chief electrical inspector" substitute— '"chief electrical inspector" means the Office of

the Chief Electrical Inspector established
under the Electricity Industry Act 1993;'.

Electricity Industry (Amendment) Act 1996

Act No. 8/1996 s. 19

19. Amendment of State Electricity Commission Act 1958 No. 6377
Reprinted to

In section 110(c) of the State Electricity	No. 48/1991 and
Commission Act 1958—	subsequently amended by
(a) for "electric tramways" substitute "any	Nos. 3/1992,
railway or tramway system within the	35/1992, 50/1992,
meaning of section 93(1) of the Transport	130/1993,
Act 1983";	31/1994, 49/1994,
(b) after "prevent danger" insert "or damage";	53/1994,
110/1994,
16/1995,
(c) in sub-paragraph (ii), for "tramways"	31/1995,
substitute "railway and tramway systems".	56/1995 and
79/1995.
No. 53/1994

20. Amendment of Electricity Industry (Amendment) Act as amended

1994 by Nos
110/1994 and

Section 9 of the Electricity Industry	29/1995.
(Amendment) Act 1994 is repealed.

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Electricity Industry (Amendment) Act 1996

Act No. 8/1996

NOTES

†

Minister's second reading speech—

Legislative Assembly: 16 May 1996

Legislative Council: 18 June 1996

The long title for the Bill for this Act was "to amend the Electricity Industry Act 1993 and certain other Acts and for other purposes."