Electricity Networks Access Code 2004 (WA)

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WESTERN	5517
AUSTRALIAN GOVERNMENT

ISSN 1448-949X

30 November 2004 GOVERNMENT GAZETTE, WA 5519

Approval by Minister

I, ERIC RIPPER, Minister for Energy for the State of Western Australia, under section 104(1) of the Electricity Industry Act 2004 hereby establish the Electricity Networks Access Code contained in this document.

In accordance with section 41 of the Interpretation Act 1984, this Code comes into operation on the day of its publication in the Gazette.

ERIC RIPPER
Dated at Perth this 29th day of November 2004.

30 November 2004 GOVERNMENT GAZETTE, WA 5521

ELECTRICITY INDUSTRY ACT 2004

ELECTRICITY NETWORKS ACCESS CODE 2004

Contents

Introduction

Chapter 1 – Introductory

Citation
Commencement
Definitions

Interpretation

Chapter 2 – General Principles

Code objective
Code objective with other objectives, requirements and factors etc
Freedom to contract
Service provider to use reasonable endeavours to provide access to covered services

Requirement to undertake augmentations and funding of augmentations

Chapter 3 – Coverage

Subchapter 3.1 – Covered networks

SWIS is covered

Other networks may be covered

Subchapter 3.2 – Criteria for coverage

Minister’s decision on coverage
Coverage criteria

Factors the Minister must have regard to

Subchapter 3.3 – Coverage process

Applications for coverage
Invitation for submissions and issues paper
First round public submissions
Draft coverage decision by the Minister
Second round public submissions
Final coverage decision by Minister
Final coverage decision has effect
Late submissions
Reasons
Service provider agrees to network coverage

Extensions of time under this Chapter

Subchapter 3.4 – Revocation of coverage

Revocation of coverage

Subchapter 3.5 – Miscellaneous

Advertising Publishing Automatic coverage of augmentations
Notification of network modification

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Chapter 4 – Access Arrangements: Approval and Review

Subchapter 4.1 – Approval process

Submission of first access arrangement
Access arrangement information
Invitation for submissions and issues paper
First round public submissions
Draft decision by Authority
Second round public submissions
Revised proposed access arrangement
Final decision by Authority
Amended proposed access arrangement
Further final decision by Authority
Authority drafting and approving own access arrangement if further final decision is to not approve

Access arrangement start date

Subchapter 4.2 – Criteria for approval

Reasons
Criteria for approval of a proposed access arrangement
Factors the Authority must have regard to
Information to be provided by Authority if it requires change to price control or pricing methods
Access arrangement must not override prior contractual rights

Conditional approval – price lists

Subchapter 4.3 – Revision and review

Trigger events
Revision of price control or pricing methods during the term of an access arrangement
Revision of access arrangement if Appendix 2, Appendix 3 or Appendix 4 are amended

Review of access arrangement

Subchapter 4.4 – Miscellaneous

Late submissions
No confidentiality for certain documents
Authority drafting and approving own access arrangement if no access arrangement submitted
Interim access arrangement in the event of delay
Extensions of time under this Chapter 4
Suspension of deadlines when Authority obtains information

Suspension of deadlines for judicial proceedings

Chapter 5 – Access Arrangement: Content

Required contents of an access arrangement
Reference services
Standard access contract for each reference service
Service standards for each reference service
Applications and queuing policy
Capital contributions policy
Transfer and relocation policy
Efficiency and innovation benchmarks
Supplementary matters
Revisions submission

Trigger events

Chapter 6 – Price Control

Subchapter 6.1 – Target revenue

Form of price control
Form of price control for first access arrangement
Price control objectives
Target revenue may be adjusted for unforeseen events
Target revenue may be adjusted for technical rule changes
‘Investment adjustment mechanism’ defined
Requirement for an investment adjustment mechanism
‘Gain sharing mechanism’ defined
Requirement for a gain sharing mechanism
Objectives for gain sharing mechanism
‘Surplus’ defined

30 November 2004 GOVERNMENT GAZETTE, WA 5523

Prior surpluses may be retained
Determining the above-benchmark surplus
Determining the increase to the target revenue
‘Service standards adjustment mechanism’ defined
Requirement for service standards adjustment mechanism

Authority may make a determination of excluded services for a covered network

Subchapter 6.2 – Calculation of Service Provider’s Costs

When this Subchapter 6.2 applies
Non-capital costs
Capital-related costs
Determining the capital base
Capital base for the start of the first access arrangement period
Capital base for the start of subsequent access arrangement periods
Capital base must not include forecast new facilities investment
New facilities investment test
Capital base not to include investment in respect of which a capital contribution is provided
Recoverable portion
Speculative investment
Redundant capital
Calculating weighted average cost of capital
Authority may make a determination of a methodology for calculation of weighted average cost of
capital

Depreciation

Subchapter 6.3 – Service provider may seek approval for costs

Approval for new facilities investment

Approval for non-capital costs

Chapter 7 – Pricing methods

‘Pricing methods’ defined Form of pricing methods Objectives of pricing methods – Primary objectives
Objectives of pricing methods – Other objectives
Objectives of pricing methods – Reconciling primary and other objectives
Tariff components
Postage stamp charges in certain cases
‘Equivalent tariff’ defined
Prudent discounts
Discounts for distributed generating plant

Access arrangement must detail policies regarding discounts

Chapter 8 – Price lists

Approval of price lists if required

Publication of price lists if approval not required

Chapter 9 – Regulatory Test

Subchapter 9.1 – Introductory

Objectives of this Chapter 9
No major augmentation without regulatory test determination
‘Regulatory test’ defined
‘Committed’ defined
Authority may make a determination that an augmentation is or is not a major augmentation

Service provider must make information available

Subchapter 9.2 – Regulatory test process

Regulatory test as part of access arrangement approval process
Regulatory test not as part of access arrangement approval process
Regulatory test may be expedited, otherwise modified or waived

Vexatious etc alternative options

Subchapter 9.3 – Anti-avoidance provisions

Anti-avoidance provisions

5524 GOVERNMENT GAZETTE, WA 30 November 2004

Chapter 10 – Dispute Resolution

Subchapter 10.1 – Introduction

Commercial Arbitration Act 1985 does not apply

Procedural rules

Subchapter 10.2 – Access Disputes

Notification of a dispute
Other parties joining
Conciliation and reference to arbitration
Authority not required to conciliate
Expedited hearing of disputes under applications and queuing policy
Factors which the arbitrator must have regard to
The arbitration
Arbitrated tariff to be guided by access arrangement and price list
Arbitrated tariffs for reference services
Arbitrated terms for reference services
Arbitrated tariffs for non-reference services
Award by the arbitrator
Restrictions on access awards
Arbitrated award requiring augmentation of network
Effect of awards

Costs of arbitration

Subchapter 10.3 – Application of the regulatory test in an arbitration

Arbitrator must make proposed award if award would require major augmentation
Service provider must consult and submit major augmentation report
Service provider’s costs of compliance, if applicant withdraws
Authority must publish determination regarding major augmentation report

Arbitrator must have regard to Authority’s determination

Subchapter 10.4 – Contractual Disputes

Jurisdiction of arbitrator

Procedural rules

Chapter 11 – Service standards

Service provider must comply with service standards
Authority to monitor service standards

Penalties for breach of service standards

Chapter 12 – Technical Rules

Objectives of the technical rules
Persons bound by technical rules
Technical rules prevail over contract
Networks which must have technical rules
Approval process for technical rules – Non-covered network
Approval process for technical rules – Covered network
Have regard to current regulation in case of deadlock
Commencement of technical rules
Technical rules committee
Recommendations from the technical rules committee
Authority may observe the technical rules committee
Scope and content of technical rules
Person applies to service provider for exemption from technical rules
Service provider applies to Authority for authorisation to grant exemption from technical rules
Amendments to technical rules
Notification of changes to technical laws
Review of technical rules

Coordination with other service providers in an interconnected system

Chapter 13 – Ringfencing

Service provider must comply with ringfencing objectives and rules
Application of ringfencing objectives and rules to integrated providers
‘Ringfenced business’ defined
Other business must have deemed access contract

30 November 2004 GOVERNMENT GAZETTE, WA 5525

Associate contracts
Amendments to associate contracts and deemed access contracts
Ringfencing objectives
Factors the Authority must have regard to
Authority may approve ringfencing rules
Ringfencing rules and compliance procedures are not confidential
Additional ringfencing rules for an integrated provider
Service provider to procure compliance by its associates
Commencement time for ringfencing rules
Exemptions from ringfencing requirements
Compliance monitoring and compliance reporting
Breach of ringfencing requirements

Service provider to provide information to Authority and arbitrator

Chapter 14 – Administration and Miscellaneous

Service provider to provide information on access arrangements
Data collection regarding target revenue
Public register
Register of interested persons
Protection for the Authority
Treatment of confidential information
How this Code applies to multiple service providers
How this Code applies to successor service providers
Authority may seek advice
CPI adjustment

General process for public consultation

Chapter 15 – Transitional

Minister may make determinations
Access arrangements for SWIS to be compatible with market

Access arrangements to be compatible with changes to contestability

Appendix 1 – Flowchart of access arrangement approval process

Appendix 2 – Model Applications and Queuing Policy

Sub-appendix 2.1 – Interpretation

Definitions and Interpretation
Transition of prior applications
Negotiations in good faith

Classes of applications

Sub-appendix 2.2 – The application

Informal communications
Confidentiality
Costs of processing application
Lead times for applications
Access application
Errors or omissions in an application

Additional information

Sub-appendix 2.3 – Capacity increase notices and customer transfer requests

Capacity increase notice
Lodgement fees for capacity increase notices
Lead times for capacity increase notices
Form of capacity increase notices
Additional information

Customer transfer requests

Sub-appendix 2.4 – The Queue

Queuing rules apply only when there are competing applications
Queuing rules determine priority of applications
More than one queue
First come first served principle
Bypass

5526 GOVERNMENT GAZETTE, WA 30 November 2004

Applications in relation to tender projects etc
Reserve capacity auctions for SWIS
Processing of applications not affected
Exercising an option not affected
Priority of withdrawn applications

Provision of information about position in queue

Sub-appendix 2.5 – Amendment and withdrawal of application

Amendment to application
Amending application to address necessary augmentation
Priority of amended applications
Withdrawal of application

Applications do not expire

Sub-appendix 2.6 – Processing the application and making the access offer

Service provider must be expeditious and diligent Conditions precedent permitted in access contract Conditions precedent and determination of spare capacity
Security
Initial response
Preliminary assessment
Progress reporting
Service provider must make access offer
Extension of time to perform obligations
Terms of access offer – If application requests reference service
Terms of access offer – If application requests non-reference service
Arbitrator’s powers preserved
Access offer is not a contract
Applicant’s options on receipt of an access offer

If applicant accepts access offer

Appendix 3 – Model Standard Access Contract

Parties

Background

Part A – Interpretation and introduction

Definitions and interpretation
Interpretation
Duration
There must be both a capacity contract and a technical compliance contract

When the parts of this contract apply

Part B – Capacity Provisions

Provision and use
Contracted capacity
Contracted maximum demand and declared sent-out capacity
Variation to contracted capacity
Relocation
Customer transfer
Provisions of access arrangement on supplementary matters apply
Curtailment
Title to electricity
Designated controllers
Tariff and charges
Invoicing and payment

Security

Part C – Technical Compliance Provisions

Good electricity industry practice
Cooperation
Directions from system operator
User must provide information
Technical rules
Actions of third parties causing user to breach technical rules
Tariff and charges
Invoicing and payment
Security

30 November 2004	GOVERNMENT GAZETTE, WA	5527
Part D – Common Provisions

Service provider must comply with service standards
Representations and warranties
Liability and indemnity
Insurances
Force majeure
Default
Termination
Access to premises
Disputes
Set off
Assignment by user
Corporate restructuring of service provider
Confidentiality
Ring fencing
Notices

Miscellaneous

Appendix 4 – Model Capital Contributions Policy

Sub-appendix 4.1 - Introductory

Definitions and interpretation

Application of this capital contributions policy

Sub-appendix 4.2 - Capital contributions

Capital contribution
Reasonable rate of return
Manner of contribution
Provision of capital contribution in kind
Provision of capital contribution by financial payment

Rebates and recoupment

Sub-appendix 4.3 – Non- capital contributions

Non-capital contribution

Manner of contribution

Appendix 5 – Procedural Rules for Arbitration

Application Definitions Informality and expedition
Arbitrator may request information
Hearing to be in private
Right to representation
Procedure
Particular powers of arbitrator
Determinations
Contempt
Disclosure of information
Power to take evidence on oath or affirmation
Failing to attend as a witness
Failing to answer questions etc.
Intimidation etc.
Party may request arbitrator to treat material as confidential
Costs
Appeal to Court
Copies of decisions to be given to the Authority
Effect of appointment of new arbitrator on evidence previously given and awards and
determinations previously made

Decision of the Arbitrator

Appendix 6 – Matters to be Addressed by Technical Rules

Appendix 7 – General process for public consultation

Application of this Appendix 7
Where the decision maker is not the Authority

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Issues paper
Submissions from the service provider
First round public submissions
Draft decision by the Decision Maker
Second round public submissions (if applicable)
Final decision by decision maker
Publication of submissions
Late submissions

30 November 2004 GOVERNMENT GAZETTE, WA 5529

Introduction

{This Code is made by the Minister under Part 8 of the Electricity Industry Act
2004 (“Act”).

The Code may be amended from time to time in accordance with the procedure set out in sections 108 to 110 of the Act and must be reviewed every 5 years under section 111 of the Act.

The Code aims to be, where appropriate given conditions prevailing in

Western Australia:

• consistent with the National Electricity Code and National Gas Code; and

• capable of certification as an effective access regime under Part IIIA of the Trade Practices Act 1974.

This Code establishes a framework for third party access to electricity transmission and distribution networks with the objective of promoting the economically efficient investment in, and operation and use of, networks and services of networks in Western Australia in order to promote competition in markets upstream and downstream of the networks.

Regulations made under section 118 of the Act may prescribe penalties for failure to comply with certain provisions of this Code.}

30 November 2004 GOVERNMENT GAZETTE, WA 5531

ELECTRICITY INDUSTRY ACT 2004

ELECTRICITY NETWORKS ACCESS CODE 2004

Chapter 1 – Introductory

Citation

1.1 This Code may be cited as the Electricity Networks Access Code 2004.

Commencement

1.2 This Code comes into operation on the date on which this Code is published in the
Gazette.

Definitions

1.3 In this Code, unless the contrary intention appears:
“above-benchmark surplus” has the meaning given to it in section 6.25 as limited
by section 6.26.
“access”, in relation to services, has a meaning corresponding with the meaning that
it has when used in that context in the Trade Practices Act 1974 of the
Commonwealth.
“access application” means an application lodged with a service provider under an
access arrangement to establish or modify an access contract and includes any
additional information provided by the applicant in relation to the application.
“access arrangement” means an arrangement for access to a covered network that
has been approved by the Authority under this Code.
“access arrangement information”, in relation to an access arrangement, means
the information submitted by the service provider under section 4.1 as described in
sections 4.2 and 4.3, as amended from time to time, and is not part of the access
arrangement.
“access arrangement period”, in relation to an access arrangement, means a
period:

(a)	between the access arrangement start date and the first revisions commencement date; or
(b)	between a revisions commencement date and the next revisions commencement date.

“access arrangement start date” means the day on which an access arrangement (other than an interim access arrangement) takes effect, and is determined in accordance with 4.26.

{Note: See definition of “review” for access arrangement review.}

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“access contract” has the same meaning as ‘access agreement’ does in Part 8 of

the Act, and under section 13.4(d) includes a deemed access contract.

{Note: At the time this Code was made, the definition in section 103 of the Act
was:

‘ “access agreement” means an agreement under the Code between a network service provider and another person (a “network user”) for that person to have access to services. ’}

“access dispute” means a dispute, in connection with an access application,

between the applicant and the service provider, including a dispute in relation to:

(a)	whether the applicant or the service provider has complied with, or the manner in which the applicant or the service provider has purported to comply with, the applications and queuing policy; and
(b)	the terms and conditions, including service standards, on which the applicant should be permitted to acquire covered services from the service provider; and
(c)	whether an augmentation is required to provide covered services sought by the applicant and the terms and conditions applying to any such augmentation; and
(d)	whether the service provider should grant the applicant an exemption to the technical rules under section 12.34; and
(e)	the arrangements which will apply in respect of a supplementary matter connected with the access application.

“access rights” means all or part of a user’s rights under a contract for services to
obtain a covered service.
“additional revenue”, when used in 6.41, has the meaning given to it in section 6.42.

“advertise” means:

(a)	where the Minister is required to advertise a thing — that the Minister must place an advertisement in a newspaper which has circulation throughout the State which states that the thing has been placed on an internet website which is under the Coordinator’s control; and
(b)	where the Authority is required to advertise a thing — that it must place an advertisement in a newspaper which has circulation throughout the State which states that the thing has been placed on the public register.

“alternate pricing provisions” has the meaning given to it in section 4.33.

“alternative option costs” has the meaning given to it in section 6.41.

“alternative options”, in relation to a major augmentation, means alternatives to part or all of the major augmentation, including demand-side management and generation solutions (such as distributed generation), either instead of or in combination with network augmentation.

“amended proposed access arrangement” means an amended proposed access
arrangement submitted by a service provider to the Authority under section 4.19.
“amended proposed revisions” are amended proposed revisions submitted by a
service provider to the Authority under section 4.19 (as modified under section 4.52).

“anticipated incremental revenue” for a new facility means:

(a) the present value (calculated at the rate of return over a reasonable period) of the increased tariff income reasonably anticipated to arise from the increased sale of covered services on the network to one or

30 November 2004 GOVERNMENT GAZETTE, WA 5533

more users (where “increased sale of covered services” means sale of covered services which would not have occurred had the new facility not been commissioned),

minus

(b) the present value (calculated at the rate of return over the same period) of the best reasonable forecast of the increase in non-capital costs directly attributable to the increased sale of the covered services (being the covered services referred to in the expression “increased sale of covered services” in paragraph (a) of this definition),

where the “rate of return” is a rate of return determined by the Authority in accordance with the Code objective and in a manner consistent with Chapter 6, which may (but does not have to) be the rate of return most recently approved by the Authority for use in the price control for the covered network under Chapter 6.

“applicant” means a person (who may be a user) who has lodged an access application under the access arrangement for a covered network to establish or modify an access contract, and includes a prospective applicant.

“applications and queuing policy” means a policy in an access arrangement
setting out the access application process under section 5.1(g).
“approval” of a proposed access arrangement or proposed revisions means
approval by the Authority under Chapter 4.
“approved total costs”, in relation to covered services provided by a service

provider by means of a covered network for a period of time, means:

(a)	those capital-related costs which satisfy the new facilities investment test; and
(b)	those non-capital costs which satisfy the test in (as applicable) section 6.40 or 6.41.

Gas Pipelines
“arbitrator” has the meaning given to that term in section 61 of the a person will not be considered to be an associate of a service provider solely because that person proposes to enter, or has entered, into a contract, arrangement or understanding with the service provider for the provision of a covered service.
Access (Western Australia) Act 1998.
“associate”, in relation to a person and subject to section 13.2, has the meaning it
would have under Division 2 of Part 1.2 of the Corporations Act 2001 of the

{Note: Reference must be made to the Corporations Act 2001 (Cth) to determine whether one person is an associate of another person. At the Code commencement date, the following are examples of persons who are associates of a body corporate under the Corporations Act 2001 (Cth):

- a director or secretary of the body corporate; and

- a related body corporate of the body corporate; and

- another body corporate that can control or influence the composition of the
board or the conduct of the affairs of a body corporate.}

“associate contract” means any contract, arrangement or understanding by which a service provider provides covered services to an associate or a related body corporate.

“average cost of service provision”, in relation to a user or group of users, a covered service and a specified period of time, means that part of approved total costs that is associated with providing the covered service to the user or group of users, during the period of time.

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“augmentation”, in relation to a covered network, means an increase in the capability of the covered network to provide covered services, including by the development, construction, acquisition or commissioning of new network assets.

“Authority” means the Economic Regulation Authority established by the Economic
Regulation Authority Act 2003.

“bare transfer”, when used in sections 5.18 to 5.24, refers to a transfer of a user’s access rights, under a transfer and relocation policy, in which the user's obligations under the contract for services, and all other terms of the contract for services, remain in full force and effect after the transfer.

“business day” means a day that is not a Saturday, Sunday or public holiday
throughout Western Australia.
“capital base” for a covered network means the value of the network assets that are
used to provide covered services on the covered network determined under sections
6.44 to 6.63.
“capital contribution” means a contribution made, or to be made, by a user in
respect of an augmentation.
“capital contributions policy” means a policy in an access arrangement under
section 5.1(h) dealing with capital contributions by users in respect of augmentations.
“capital-related costs”, in relation to covered services provided by a service

provider by means of a covered network for a period of time, means:

(a)	a return on the capital base of the covered network; and
(b)	depreciation of the capital base of the covered network.

“Chapter 9 objectives” has the meaning given to it in section 9.1.
“charge”, for a user for a covered service, means the amount that is payable by the
user to the service provider for the covered service, calculated by applying the tariff
for the covered service.
“Code change” means an amendment to Appendix 2, Appendix 3 or Appendix 4 of
this Code after the start of an access arrangement period.
“Code commencement date” means the date on which this Code is published in the
Gazette.
“Code objective” has the meaning given to it in section 2.1.
“commercially sensitive information” means all confidential or commercially
sensitive information in relation to an applicant, user or consumer which is developed
by or comes into the possession of a service provider including a ringfenced
business’s past, present and future dealings with the applicant, user or consumer.
“committed”, in relation to a proposed major augmentation, has the meaning given
to it in section 9.5 as limited by section 9.6.
“common service” means a covered service that is ancillary to the provision of one
or more of entry services, exit services and network use of system services that
ensures the reliability of a network or otherwise provides benefits to users of the
network, the costs of which cannot reasonably be allocated to one or more particular
users and so needs to be allocated across all users.
“competing applications” exist where the provision of the covered service sought in
one access application may impede the service provider’s ability to provide a covered
service sought in one or more other access applications.
“confidential material” means relevant material which the disclosing person advises
the recipient is of a confidential or commercially sensitive nature.
“connect” means to form a physical link to or through a network.

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“connection assets”, for a connection point, means all of the network assets that
are used only in order to provide covered services at the connection point.
“connection point” means a point on a covered network identified in an access
contract as an entry point or exit point.
“connection service” means the right to connect facilities and equipment at a
connection point.

{Note: A connection service is the right to physically connect to the network, and will regulate technical compliance etc. It is not the same thing as an entry service or exit service, which are the right to transfer electricity.}

“consume” means to consume electricity.

“consumer” means a person who consumes electricity.

{Note: A consumer may also be a user, if it acquires a covered service from a
service provider.}

“contestable”, in relation to a consumer, means a consumer whose load exceeds the threshold for contestability prescribed under section 93 of the Electricity Corporation Act 1994 or another enactment.

“contractual dispute” means a dispute between a service provider and a user that is
not an access dispute and is referred to the arbitrator under a contract for services.
“contributing user” means a user that is or may be required to make a capital
contribution in respect of a required augmentation.
“Coordinator” means the Coordinator of Energy referred to in section 4 of the
Energy Coordination Act 1994.
“coverage applicant” means a person who lodges a coverage application.
“coverage application” means an application under section 3.8 requesting that the
whole or part of a network be covered.
“coverage decision”, for a coverage application for a network, means either or both
of the draft coverage decision under section 3.17 by the Minister and the final
coverage decision under section 3.21 by the Minister.
“covered”, with regard to a network, means that the service provider of the network
is subject to section 4.1.
“covered network” means a network that is covered.
“covered service” means a service in relation to the transportation of electricity

provided by means of a covered network, including:

(a)	a connection service; or
(b)	an entry service or exit service; or
(c)	a network use of system service; or
(d)	a common service; or
(e)	a service ancillary to a service listed in paragraphs (a) to (d) above,

but does not include an excluded service.

{Note: This Code uses the expression covered service to describe what is sometimes called a ‘regulated service’. It can be distinguished from an excluded service.

Covered services subdivide into reference services and non-reference services.}

“CPI” means the Consumer Price Index (all groups) for the Weighted Average of Eight Capital Cities most recently published by the Australian Bureau of Statistics or, if the Consumer Price Index (all groups) for the Weighted Average of Eight Capital Cities ceases to be published, such alternative index as the Authority may reasonably

5536 GOVERNMENT GAZETTE, WA 30 November 2004

determine, and in all cases the CPI figure is to be adjusted to correct for any effects of a change in the rate of GST as defined in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.

“CPI adjusted” has the meaning given to it in section 14.26.
“customer transfer code” means a code made under section 39(1) or section
39(2a) of the Act in respect of the matter referred to in section 39(2)(b) of the Act.
“deadlock”, in Chapter 12, means circumstances in which the members of a
technical rules committee cannot reach consensus on an aspect of model technical
rules or on a matter on which the technical rules committee has been requested to, or
one or more of its members wishes to, provide advice to the Authority.
“decision maker”, in Appendix 7, means a person who, under this Code, is obliged
or chooses to consult the public under Appendix 7 on a matter for consultation.
“deemed access contract” means the full terms and conditions of the arrangement
by which a network business is to provide covered services to an other business.
“designated date” means the date by which a service provider must submit

proposed revisions to the Authority after a trigger event has occurred and is either:

(a)	specified in the access arrangement; or
(b)	able to be determined, after the trigger event has occurred, using a method specified in the access arrangement.

“Director of Energy Safety” means the Director of Energy Safety appointed under
section 5 of the Energy Coordination Act 1994.
“disclosing person” means a person who provides relevant material to a recipient
under the Code.
“discount” means a discount referred to in section 7.9 or 7.10, as the case may be.
“distributed generating plant” means a generating plant with an entry point to a
network at a nominal voltage of less than 66 kV and no entry point to a network at a
nominal voltage of 66 kV or higher.
“distribution system” means any apparatus, equipment, plant or buildings used, or
to be used, for, or in connection with, the transportation of electricity at nominal
voltages of less than 66 kV.
“DORC” has the meaning given to it in section 6.46.
“draft coverage decision”, for a coverage application for a network, means a draft
decision under section 3.17 by the Minister on the coverage application that the
network be covered or not be covered.
“draft decision” means a draft decision by the Authority under section 4.12 either to
approve a service provider’s proposed access arrangement or to not approve the
proposed access arrangement.
“draft revocation decision”, for a revocation application for a network, means a
draft decision under section 3.17 (as modified under section 3.31) by the Minister on a
revocation application that a network be covered or not be covered.
“efficiency and innovation benchmarks” means efficiency and innovation
benchmarks in an access arrangement under section 5.1(j).
“efficiently minimising costs”, in relation to a service provider, means the service
provider incurring no more costs than would be incurred by a prudent service
provider, acting efficiently, in accordance with good electricity industry practice,
seeking to achieve the lowest sustainable cost of delivering covered services and
without reducing service standards below the service standard benchmarks set for
each covered service in the access arrangement or access contract.

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“electronic form”, in relation to the public register, means that the public register is kept on an internet website which is accessible to the public and from which information may be downloaded.

“entry point” means a point on a covered network identified as such in an access contract at which, subject to the access contract, electricity is more likely to be transferred into the network than transferred out of the network.
“entry service” means a covered service provided by a service provider at an entry
point under which the user may transfer electricity into the network at the entry point.
“excluded service” means a service in relation to the transportation of electricity

provided by means of a covered network, including:

(a)	a connection service; or
(b)	an entry service or exit service; or
(c)	a network use of system service; or
(d)	a common service, or
(e)	a service ancillary to the services listed in paragraphs (a) to (d) above,

which meets the following criteria:

(f)	the supply of the service is subject to effective competition; and
(g)	the cost of the service is able to be excluded from consideration for price control purposes without departing from the Code objective.

“exclusive license” means an exclusive license granted under regulations made
under section 26(1) of the Act.

“exclusivity right” means a contractual right which by its terms either:

(a)	expressly prevents a service provider supplying covered services to persons who are not parties to the contract; or
(b)	expressly places a limitation on the service provider’s ability to supply covered services to persons who are not parties to the contract,

but does not include a user’s contractual right to obtain a certain volume of covered
services.
“exit point” means a point on a covered network identified as such in an access
contract at which, subject to the access contract, electricity is more likely to be
transferred out of the network than transferred into the network.
“exit service” means a covered service provided by a service provider at an exit
point under which the user may transfer electricity out of the network at the exit point.
“facilities and equipment”, in relation to a connection point, means the apparatus,
equipment, plant and buildings used for or in connection with generating, consuming
and transporting electricity at the connection point.
“final coverage decision”, for a coverage application for a network, means a final
decision under section 3.21 by the Minister on the coverage application that the
network be covered or not be covered.
“final decision” means a final decision by the Authority under section 4.17 either to
approve the service provider’s proposed access arrangement or to not approve the
service provider’s proposed access arrangement.
“final report” means a final report provided by the Chair of the technical rules
committee to the Authority under section 12.11(b)(ii) setting out the technical rules
committee’s progress in performing its functions under section 12.23, and in the case
of deadlock, advice in accordance with section 12.25.

5538 GOVERNMENT GAZETTE, WA 30 November 2004

“final revocation decision”, for a revocation application for a network, means a final decision by the Minister on a revocation application under section 3.21 (as modified under section 3.31 that a network be covered or not be covered.

“first access arrangement”, for a covered network, means the first access arrangement approved (or if no access arrangement has been approved, to be approved) for the covered network under this Code.

“first access arrangement period”, for a covered network, means the access
arrangement period for the first access arrangement.
“force majeure”, operating on a person, means a fact or circumstance beyond the
person’s control and which a reasonable and prudent person would not be able to
prevent or overcome.
“forecast new facilities investment”, for a covered network, means the capital
costs forecast to be incurred in developing, constructing and acquiring new network
assets for the covered network.
“further final decision” means, where the Authority’s final decision is to not approve
the service provider’s proposed access arrangement, the further final decision of the
Authority under section 4.21 either to approve the service provider’s amended
proposed access arrangement or to not to approve the service provider’s amended
proposed access arrangement.
“gain sharing mechanism” is defined in section 6.19.
“generate” means to produce electricity.
“generating plant”, in relation to a connection point, means all equipment involved in
generating electricity.
“generator” means a person who generates electricity.
“good electricity industry practice” means the exercise of that degree of skill,
diligence, prudence and foresight that a skilled and experienced person would
reasonably and ordinarily exercise under comparable conditions and circumstances

consistent with applicable written laws and statutory instruments and applicable
recognised codes, standards and guidelines.
“incoming user” has the meaning given to it in section 5.7(f).
“incremental cost of service provision”, in relation to a user or group of users, a
covered service and a specified period of time, means that part of approved total
costs that would be avoided by the service provider during the specified period of time
if it were not to provide the covered service to the user or group of users.
“information package” means an information package established and maintained
by a service provider in relation to covered network which complies with section 14.1.

“integrated provider” means:

(a)	Western Power Corporation; and
(b)	a service provider which, under section 13.31, has been given an exemption from section 13.11(a).

“interconnected network”, in relation to a network, means another network which is
part of the same interconnected system as the first network.
“interconnected system” means an electricity system comprising two or more
networks interconnected with each other, and in relation to a particular network
means an interconnected system of which the network is a part.
“interested person”, for a network, means a person who is registered under section
14.8 in respect of that network.

30 November 2004 GOVERNMENT GAZETTE, WA 5539

“interim access arrangement”, for a covered network, means an access
arrangement drafted and approved by the Authority under section 4.59.
“interim access arrangement period”, for an interim access arrangement, means
the period from the date of approval of the interim access arrangement until the
access arrangement start date for the covered network.
“investment adjustment mechanism” has the meaning given to it in section 6.13.
“investment difference” has the meaning given to it in section 6.13.
“judicial proceedings” has the meaning given to it in section 4.69.
“load” means the amount of electrical power transferred out of a network at a
connection point at a specified time.
“maintain” includes (as necessary and as applicable) renew, replace or update.
“major augmentation” means an augmentation for which the new facilities

investment for the shared assets:

(a)

exceeds $5 million (CPI adjusted), where the network assets comprising the augmentation are, or are to be, part of a distribution system; and

(b)

exceeds $15 million (CPI adjusted), where the network assets comprising the augmentation are, or are to be, part of:

(i)	a transmission system; or
(ii)	both a distribution system and a transmission system.

“major augmentation proposal” means a proposal in respect of one or more proposed major augmentations submitted by a service provider under sections 9.10 and 9.11, or under sections 9.15 and 9.16, as applicable.

“major augmentation report” has the meaning given to it in section 10.41(b).
“marketing staff” means servants, consultants, independent contractors or agents
directly involved in sales, sale provision or advertising (whether or not they are also
involved in other functions) but does not include servants, consultants, independent

contractors or agents:

(a)	who are senior staff; or
(b)	involved only in technical, administrative, accounting or service functions.

“matter for consultation” means a document, determination or decision that under this Code is required to be or may be the subject of public consultation under Appendix 7.

“model applications and queuing policy” means the model applications and
queuing policy in Appendix 2.
“model capital contributions policy” means the model capital contributions policy
in Appendix 4.
“model standard access contract” means the model standard access contract in
Appendix 3.
“modified test” means one or more modified tests set out in an access arrangement
for the purposes of section 6.52(b)(i)B in respect of new facilities investment below
one or more test application thresholds.
“net benefit” means a net benefit (measured in present value terms to the extent that
it is possible to do so) to those who generate, transport and consume electricity in (as

the case may be):

(a) the covered network; or

5540 GOVERNMENT GAZETTE, WA 30 November 2004

(b) the covered network and any interconnected system.

“net benefit after considering alternative options” is defined in section 9.4.

“network” has the meaning given to “network infrastructure facilities” in the Act.

{Note: At the time this Code was made, the definition in section 103 of the Act

was:

‘ “network infrastructure facilities” means:

(a)	the electrical equipment that is used only in order to transfer electricity to or from an electricity network at the relevant point of connection including any transformers or switchgear at the relevant point of connection or which is installed to support or to provide backup to that electrical equipment as is necessary for that transfer; and
(b)	the wires, apparatus, equipment, plant and buildings used to convey, and control the conveyance of, electricity,

which together are operated by a person (a “network service provider”) for the purpose of transporting electricity from generators to other electricity networks or to consumers. ’}

“network assets”, in relation to a network, means the apparatus, equipment, plant and buildings used to provide or in connection with providing covered services on the network, which assets are either connection assets or shared assets.

“network business” means the part of an integrated provider’s business and functions which are responsible for the operation and maintenance of a covered network and the provision of covered services by means of the covered network.
“network modification”, when used in sections 3.36 to 3.37, means, in respect of a

covered network, either:

(a)	the commissioning of an augmentation to the covered network; or
(b)	a disposal or decommissioning of network assets of the covered network.

“network persons”, means the service provider, applicants, users and controllers of a covered network where the service provider of the covered network has applied to the Authority for an exemption from one or more requirements of the technical rules applying to the covered network.

“new facilities investment”, for a new facility, means the capital costs incurred in
developing, constructing and acquiring the new facility.
“new facilities investment test”, in respect of a covered network, means the test set
out in section 6.52.
“new facility” means any capital asset developed, constructed or acquired to enable
the service provider to provide covered services including assets required for the
purpose of facilitating competition in retail markets for electricity.
“non-capital costs”, in relation to covered services provided by a service provider by
means of a covered network for a period of time, means all costs incurred in providing
the covered services for the period of time which are not capital-related costs,
including those operating, maintenance and administrative costs which are not
capital-related costs.
“non-covered network” means a network that is not a covered network.
“non-reference service” means a covered service that is not a reference service.
“notification threshold” has the meaning given to it in section 3.37.
“ODV” has the meaning given to it in section 6.46.
“other business” means the part or parts of an integrated provider’s business which
are not the network business, and includes any part or parts of the integrated

30 November 2004 GOVERNMENT GAZETTE, WA 5541

provider’s business and functions which acquire covered services from the network
business.
“other service provider”, in relation to a service provider that operates a network in
an interconnected system, has the meaning given to it in section 12.59.
“outgoing user” has the meaning given to it in section 5.7(f).
“participant”, when used in sections 14.16 to 14.21, has the meaning given in
section 14.17.
“preliminary report” means a preliminary report provided by the Chair of the
technical rules committee to the Authority under section 12.11(b)(i) setting out the
technical rules committee’s progress in performing its functions under section 12.23,
and in the case of deadlock, advice in accordance with section 12.25.
“price control” means the provisions in an access arrangement under section 5.1(d)
and Chapter 6 which determine target revenue.

{Note: Price control can consist of direct or indirect limits, and consists of a limit on the level of tariffs through the control of overall revenue. The structure of tariffs is dealt with by the pricing methods in Chapter 7.}

“price control methodology” means a methodology included in an access
arrangement as part of price control.

{Examples of the things that might comprise price control methodologies are: the means for determining a suitable return on investment; the means of forecasting load; and calculation of the X factor if CPI-X is used.}

“price list” means the schedule of reference tariffs in effect in an access
arrangement under section 5.1(f) and Chapter 8 for a covered network.
“price list information” means a document which sets out information which would

reasonably be required to enable the Authority, users and applicants to:

(a)	understand how the service provider derived the elements of the proposed price list; and
(b)	assess the compliance of the proposed price list with the access arrangement.

as defined in section 7.1.
“pricing years” for an access arrangement are periods of no longer than one year,
the start and end dates of which are set out in the access arrangement, which
together account for the entire access arrangement period and in respect of which a
price list must be submitted to the Authority under either section 8.1 or 8.7.
“proceedings”, when used in Chapter 10 and Appendix 5, means any proceedings
before the arbitrator under this Code whether final or interlocutory, and includes any
application in connection with and at any stage of proceedings, and includes the
making of an award.
“processing” an access application means the performance of all requirements
under an applications and queuing policy necessary for the making of an access offer
including engaging in discussions, preparing an initial response and carrying out a
preliminary assessment and making an access offer.
“proposed access arrangement” means a proposed access arrangement that has
been submitted by a service provider with the Authority for approval under this Code,
but which has not been approved.
“proposed award”, in respect of an arbitration under Chapter 10 which is subject to “pricing methods” means the structure of reference tariffs in an access arrangement section 10.40(a) which describes in reasonable detail the nature of the major

5542 GOVERNMENT GAZETTE, WA 30 November 2004

augmentation that the arbitrator anticipates it will require the service provider to
undertake in its award.
“proposed major augmentation” means a major augmentation detailed in a major
augmentation proposal under section 9.11(a) or 9.16(a), as applicable.
“proposed revisions” means proposed revisions to an access arrangement that,
under section 4.37 or 4.48, have been submitted by a service provider to the Authority
for approval under Chapter 4.
“public register” means the register established and maintained by the Authority
under section 14.5.

“publish” means:

(a) where the Minister is required to publish a thing — that the Minister

must:

(i)	provide the thing to the Coordinator; and
(ii)	procure the Coordinator to place the thing on an internet website which is under the Coordinator’s control;

and

(b) where the Authority is required to publish a thing — that the Authority

must:

(i)	place the thing on the public register; and
(ii)	send a notice to each person listed on the register of interested persons maintained under section 14.8 in respect of the network to which the thing relates advising the person that the thing has been placed on the public register.

“queuing dispute” has the meaning given to it in section 10.13.
“reasonable and prudent person” means a person acting in good faith and in
accordance with good electricity industry practice.
“reasons”, in relation to a decision or other determination, means a statement of the

decision-maker’s reasons for deciding including, as applicable:

(a)	findings on material questions of fact relied on by the decision-maker in reaching the decision;
(b)	reference to the evidence on which findings of fact are based; and
(c)	identification of the steps in the decision-making process, explanation of the link between the findings of fact and the final decision and a description of the role of policy or guidelines in the decision-making process.

“recipient” means, the Minister, Authority or a service provider, as applicable, when
provided with relevant material.
“recoverable portion”, for new facilities investment for a covered network, has the
meaning given to it in section 6.57.
“redundant capital”, for a covered network, means an amount determined under
section 6.61 to be removed from the capital base of the covered network.
“reference service” means a covered service designated as a reference service in
an access arrangement under section 5.1(a) for which there is a reference tariff, a
standard access contract and service standard benchmarks.
“reference tariff” means the tariff specified in a price list for a reference service.

30 November 2004 GOVERNMENT GAZETTE, WA 5543

{Note: Under section 10.20 an arbitrator’s award cannot require an applicant to pay more than the reference tariff for a reference service, or the service provider to accept less than the reference tariff for a reference service.}

“register of interested persons” means the register or registers maintained by the
Authority under section 14.8.
“regulatory test” is defined in section 9.3.
“related body corporate” and “related company”, in relation to a body corporate,
mean a body corporate that is related to the first-mentioned body corporate under the
Corporations Act 2001 of the Commonwealth.
“related business” means the business of generating, purchasing or selling
electricity, but does not include generating, purchasing or selling electricity to the

extent necessary:

(a)	for the safe and reliable operation of a covered network; or
(b)	to enable a service provider to provide balancing and ancillary services in connection with a covered network; or
(c)	to comply with an obligation under Part 9 of the Act.

{Note: Part 9 of the Act deals with the wholesale market.}

“relevant material” means information or a document provided to a recipient under
the Code.
“relocation” means a relocation of capacity from one connection point in a user’s
access contract to another connection point the user’s access contract under a
transfer and relocation policy.
“required augmentation” means an augmentation to a covered network that needs
to be undertaken in order for the service provider to provide the covered services
sought by an applicant.
“review” of an access arrangement means the process set out in sections 4.46 to
4.52
“revisions commencement date” means a date on which revisions to an access
arrangement which have been approved by the Authority commence under section
4.26 (as modified under section 4.52).
“revisions submission date” is the date specified in an access arrangement under
section 5.29(a) as the date by which the service provider must submit its proposed
revisions to the access arrangement to the Authority under section 4.48.
“revocation applicant” means a person who applies to the Minister for the Minister
to revoke coverage of a covered network as described in section 3.30.
“revocation application” means an application for revocation of coverage made
under section 3.7 (as modified under section 3.31).
“revocation decision”, for a revocation application for a network, means either or
both of the draft revocation decision under section 3.17 (as modified under
section 3.31) by the Minister and the final revocation decision under section 3.21 by
the Minister.
“ringfenced business” is defined in section 13.3.
“ringfencing compliance procedures” means procedures established and
maintained by a service provider as required by section 13.37(a) to ensure and
monitor a service providers compliance with section 13.1.
“ringfencing objectives” means the objectives in section 13.11 (as added to under
section 13.23 if applicable).

5544 GOVERNMENT GAZETTE, WA 30 November 2004

“ringfencing rules” means rules drafted and approved by the Authority under
section 13.14 as varied from time to time under section 13.18.
“senior staff” means servants, consultants, independent contractors or agents
involved strategic decision making, including directors and the executive officer or
officers to whom marketing staff report either directly or indirectly.
“service” means a covered service or an excluded service.
“service provider”, in relation to a network, means a person who owns or operates
the network.
“service standard benchmarks” means the benchmarks for service standards for a
reference service in an access arrangement under section 5.1(c).
“service standard performance report” means a report provided by a service
provider to the Authority under section 11.3.
“service standards” means either or both of the technical standard, and reliability, of
delivered electricity.
“service standards adjustment mechanism” has the meaning given to it in section
6.29.
“shared assets” mean those network assets which are not connection assets.
“specific criterion” means an objective, requirement or factor specified in this Code
in relation to a thing (including the making of any decision or the doing, or not doing,
of any act), and “specific criteria” means any two or more such objectives,
requirements or factors specified under this Code in relation to such a thing, whether
or not all specified in one provision.
“speculative investment amount”, for a new facility (if any), is determined under
section 6.58.
“stand-alone cost of service provision”, in relation to a user or group of users, a
covered service and a specified period of time, means that part of approved total
costs that the service provider would incur in providing the covered service to the user
or group of users, for the period of time if the covered service was the sole covered
service provided by the service provider and the user or group of users was the sole
user or group of users supplied by the service provider during the specified period of
time.
“standard access contract” means the terms and conditions for a reference service
in an access arrangement under section 5.1(b).
“standard tariff exit point”, in section 7.7, means an exit point in respect of which
the contracted maximum demand under a contract for services is less than 1 MVA.
“standard tariff user”, in section 7.7, means a user who transfers electricity out of a
network at a standard tariff exit point.
“statutory instruments” means all relevant instruments made under a written law
including all directions, notices, orders and other instruments given or made under a

written law and includes, as existing from time to time:

(a)	orders made under section 8 of the Act; and
(b)	licences granted, renewed or transferred under section 19 of the Act; and
(c)	standard form contracts approved under section 51 of the Act; and
(d)	orders made under section 55(7) of the Act; and
(e)	approved policies as defined in section 62 of the Act; and
(f)	last resort supply plans approved under section 73 of the Act as amended under sections 74 and 75 of the Act; and

30 November 2004 GOVERNMENT GAZETTE, WA 5545

(g) market rules as defined in section 121(1) of the Act.

“submission deadline”, in relation to a service provider’s submission of a proposed access arrangement for a covered network, means the date which is six months after the network becomes covered.

“supplementary matter” has the meaning given to it in section 5.27 and supplementary matters must be dealt with in an access arrangement under section 5.1(k).
“surplus”, for a covered network for an access arrangement period, arises when the
conditions described in section 6.23 are satisfied.

“SWIS” means the “South West interconnected system” as defined in the Act.

{Note: Some parts of the SWIS are owned by the Western Power Corporation

and some are privately owned.

As at the date of this Code the definition in the Act was:

‘ the interconnected transmission and distribution systems, generating works

and associated works –

(a)

located in the South West of the State and extending generally between Kalbarri, Albany and Kalgoorlie; and

(b)

into which electricity is supplied by –

(i)	one or more of the electricity generation plants at Kwinana, Muja, Collie and Pinjar; or
(ii)	any prescribed electricity generation plant. ’}

“target revenue”, for a covered network for an access arrangement period, is
determined in accordance with section 6.4(a).
“target revisions commencement date” is the date specified in an access
arrangement under section 5.29(b) as the target date for the revisions
commencement date.
“tariff”, for a covered service, means the criteria that determine the charge that is
payable by a user to the service provider.
“technical rules”, for a network, means the technical rules (if any) in effect for the
network under Chapter 12.
“technical rules committee”, in relation to a network or interconnected system,
means the current committee, if any, established under section 12.16 for the network
or interconnected system.
“technical rules start date” for the technical rules for a network is the date on which
the technical rules take effect and is specified by the Authority under section 12.15.
“test application threshold”, for a modified test in an access arrangement, means
the threshold for new facilities investment below which the modified test applies.
“transfer” refers to a transfer of a user’s access rights to another person and
includes an assignment or novation of access rights under a transfer and relocation
policy.
“transfer and relocation policy” means a policy in an access arrangement under
section 5.1(i) which specifies a user’s rights to transfer its access rights to another
person and relocate capacity from one connection point in its access contract to
another connection point in its access contract.
“transmission system” means any apparatus, equipment, plant or buildings used,
or to be used, for, or in connection with, the transportation of electricity at nominal
voltages of 66 kV or higher.
“transport” includes transmit and distribute.

5546 GOVERNMENT GAZETTE, WA 30 November 2004

“trigger event” is a set of one or more circumstances specified in an access arrangement under section 5.1(l)(ii), the occurrence of which requires a service provider to submit proposed revisions to the Authority under section 4.37.

“user” means a person, including a generator or a consumer, who is party to an contract for services with a service provider, and under section 13.4(e) includes an other business as a party to a deemed access contract.
“weighted average cost of capital”, in relation to a covered network, is expressed as a percentage and means a weighted average of the cost of debt and the cost of equity as calculated under section 6.64.
“workers” of a person means the directors, officers, servants, employees, agents,
sub-contractors and consultants of the person.

“written law” means:

(a)	all Western Australian Acts and all Western Australian subsidiary legislation for the time being in force; and
(b)	all Commonwealth Acts and all Commonwealth subsidiary legislation for the time being in force, where the term “subsidiary legislation” has the meaning given to it under the Interpretation Act 1984, if “Commonwealth Act” were substituted for “written law”.

Interpretation

1.4

This Code is a written law under the Electricity Industry Act 2004, and unless the
contrary intention is apparent the Interpretation Act 1984 applies to it.

1.5

In this Code, unless the contrary intention is apparent:

(a)	“including” and similar expressions are not words of limitation; and
(b)	where a word or expression is given a particular meaning, other parts of speech and grammatical forms of that word or expression have a corresponding meaning; and
(c)	a reference to a law includes any amendment or re-enactment of it that is for the time being in force, and includes all laws made under it from time to time; and
(d)	where italic typeface has been applied to some words and expressions, it is solely to indicate that those words or expressions may be defined in section 1.3 or elsewhere, and in interpreting this Code the fact that italic typeface has or has not been applied to a word or expression is to be disregarded, to avoid doubt, nothing in this section 1.5(d) limits the application of section 1.3; and
(e)	where information in this Code is set out in braces (namely “{” and “}”), whether or not preceded by the expression “Note”, “Outline” or “Example”, the information:

(i)         is provided for information only and does not form part of this Code; and

(ii)         is to be disregarded in interpreting this Code; and

(iii)        might not reflect amendments to this Code or other documents or written laws,

and

(f)

a reference to:

(i)	this Code includes any Appendix to this Code; and
(ii)	a section, Chapter or Appendix is a reference to a section of, Chapter of or Appendix to this Code, and

30 November 2004 GOVERNMENT GAZETTE, WA 5547

(iii)        a clause is a reference to a clause in an Appendix to this Code;

and

(g)

without limiting section 1.4:

(i)	where In this Code the word “may” is used in conferring a power, such word shall be interpreted to imply that the power may be exercised or not, at discretion;
(ii)	where in this Code the word “must” is used in conferring a function, such word shall be interpreted to mean that the function so conferred must be performed.

5548 GOVERNMENT GAZETTE, WA 30 November 2004

Chapter 2 – General Principles

Code objective

2.1

The objective of this Code (“Code objective”) is to promote the economically
efficient:

(a)	investment in; and
(b)	operation of and use of,

networks and services of networks in Western Australia in order to promote
competition in markets upstream and downstream of the networks.

{Note: This Code sets out more specific objectives that also apply in relation to the performance of certain functions under the Code, for example, section 6.4 sets out objectives for the price control in an access arrangement.}

2.2 The Minister, the Authority and the arbitrator must have regard to the Code objective when performing a function under this Code whether or not the provision refers expressly to the Code objective.

Code objective with other objectives, requirements and factors etc

2.3

Where this Code specifies one or more specific criteria in relation to a thing (including
the making of any decision or the doing, or not doing, of any act), then:

(a)	subject to section 2.3(b), the specific criteria and the Code objective all apply in relation to the thing; and
(b)	subject to section 2.4, to the extent that a specific criterion and the Code objective conflict in relation to the thing, then:

(i)         the specific criterion prevails over the Code objective in relation to the thing; and

(ii)         to the extent that the specific criterion conflicts with one or more other specific criteria in relation to the thing, the Code objective applies in determining how the specific criteria can best be reconciled and which of them should prevail.

2.4 If the Code objective is specified in a provision of this Code as a specific criterion, then the Code objective is to be treated as being also a specific criterion for the purposes of section 2.3, but to the extent that the Code objective conflicts with one or more other specific criteria the Code objective prevails.

Freedom to contract

2.5

Nothing in this Code except:

(a)	an applications and queuing policy in an access arrangement; and
(b)	the ringfencing objectives and any ringfencing rules approved for a network by the Authority under Chapter 13; and
(c)	any applicable technical rules,

limits:

(d) the services a service provider may agree to provide to a user or applicant; or

30 November 2004 GOVERNMENT GAZETTE, WA 5549

(e)	the terms for, or connected with, the provision of services which may be agreed between a service provider and a user or applicant; or
(f)	the covered services which may be the subject of an access dispute or award under Chapter 10; or
(g)	the terms for, or connected with, the provision of covered services which may be the subject of an access dispute or award under Chapter 10.

2.6

Nothing in this Code or an access arrangement prevails over or modifies the
provisions of any contract for services provided by means of a network, except for:

(a)	if an access arrangement is in effect for the network — the applications and queuing policy; and
(b)	the ringfencing objectives, to the extent that they apply to the network, and any ringfencing rules in effect for the network; and
(c)	any provisions of the technical rules which by this Code are expressed to prevail over such a contract; and

{Note: See section 12.5.}

(d) subject to section 10.32(a), an award by the arbitrator.

Service provider to use reasonable endeavours to provide access to covered services

2.7

A service provider for a covered network must use all reasonable endeavours to
accommodate an applicant’s:

(a)	requirement to obtain covered services; and
(b)	requirements in connection with the negotiation of an access contract.

2.8

Without limiting section 2.7, a service provider must:

(a)	comply with the access arrangement for its covered network and must expeditiously and diligently process access applications; and
(b)	negotiate in good faith with an applicant regarding the terms for an access contract; and
(c)	to the extent reasonably practicable in accordance with good electricity industry practice, permit an applicant to acquire a covered service containing only those elements of the covered service which the applicant wishes to acquire; and
(d)	to the extent reasonably practicable, specify a separate tariff for an element of a covered service if requested by an applicant, which tariff must be determined in accordance with sections 10.23 and 10.24; and
(e)	when forming a view as to whether all or part of any proposed new facilities investment meets the new facilities investment test, form that view as a reasonable and prudent person.

Requirement to undertake augmentations and funding of augmentations

2.9

If a service provider will need to undertake an augmentation (“required augmentation”) in order to provide a covered service sought in an access application then:

(a)	if all of the forecast new facilities investment for the required augmentation meets the new facilities investment test, the service provider must undertake and fund the augmentation; and
(b)	if only part or none of the forecast new facilities investment for the required augmentation meets the new facilities investment test and the applicant

5550 GOVERNMENT GAZETTE, WA 30 November 2004

provides the capital contribution for the required augmentation determined under the capital contributions policy, the service provider must undertake the required augmentation and fund the part which meets the new facilities investment test; and

(c) if only part or none of the forecast new facilities investment for the required augmentation meets the new facilities investment test and the applicant does not provide the capital contribution for the required augmentation determined under the capital contributions policy, then this Code does not compel the service provider to undertake or fund the required augmentation.

30 November 2004 GOVERNMENT GAZETTE, WA 5551

Chapter 3 – Coverage

Subchapter 3.1 – Covered networks

SWIS is covered

3.1 The portions of the SWIS which are owned by Western Power Corporation are a covered network from the Code commencement date, unless coverage has subsequently been revoked under section 3.30.

Other networks may be covered

3.2 A network other than the covered network that is covered under section 3.1 may become covered after the Code commencement date where a person make a coverage application in respect of the network and the Minister decides under section 3.3(a) that the network should be covered.

Subchapter 3.2 – Criteria for coverage

Minister’s decision on coverage

3.3

Subject to section 3.12Minister must make a final coverage decision or draft coverage
decision which must be either:

(a)	that the network be covered; or
(b)	that the network not be covered.

3.4

If a coverage decision is that a network be covered, the coverage decision may cover the network to a greater or lesser extent than requested in the coverage application if, having regard to the part of the network that is necessary to provide covered services that applicants may seek, the Minister considers that doing so is consistent with the Code objective.

Coverage criteria

3.5

A coverage decision must be that a network be covered if the Minister determines an
affirmative answer to each of the following questions:

(a)	Would access (or increased access) to covered services provided by means of the network promote a material increase in competition in at least one market (whether or not in Western Australia) other than the market for the covered services provided by means of the network?
(b)	Would it be uneconomic for anyone to develop another network to provide the covered services provided by means of the network?
(c)	Would access (or increased access) to the covered services provided by means of the network not be contrary to the public interest?

Factors the Minister must have regard to

3.6	The Minister must when exercising the Minister’s functions under this Chapter 3 have regard to the geographical location of the network and the extent (if any) to which the network is interconnected with other networks.
3.7	Section 3.6 does not limit the factors to which the Minister may have regard.

5552 GOVERNMENT GAZETTE, WA 30 November 2004

Subchapter 3.3 – Coverage process

Applications for coverage

3.8	A coverage applicant may make a coverage application to the Minister requesting that the whole or any part of a network be covered.
3.9	A coverage applicant may withdraw its coverage application by notice to the Minister at any time before the Minister makes a final coverage decision.
3.10	A coverage application must be made in accordance with any guidelines which may be developed and published by the Minister concerning the form and content of coverage applications and specifying the amount of any fee to be paid on the making of a coverage application.
3.11	Within 10 business days after receipt of the coverage application inform the service provider and each other person known to the Minister whom the Minister believes has a sufficient interest in the matter that the Minister has received the coverage application.
3.12	Minister may dismiss a coverage application if the Minister receives a coverage application which the Minister considers to have been made on trivial or vexatious grounds, then, without further consideration, the Minister must dismiss the coverage application.

Invitation for submissions and issues paper

3.13 The Minister must publish and advertise:

(a)	a coverage application, stating how copies of the coverage application may be obtained; and
(b)	an invitation for submissions on the coverage application,

as soon as practicable and in any event within 10 business days after the coverage

application is received by the Minister.

3.14	The Minister may produce and publish an issues paper examining the issues raised in connection with a coverage application within 20 business days after the invitation for submissions on the coverage application is advertised under section 3.13(b).
3.15	The Minister must arrange to provide a copy of a coverage application to any person who requests a copy within 5 business days after the person makes the request and pays any reasonable fee required by the Minister.

First round public submissions

3.16

A person may make a submission to the Minister on a coverage application within the
later of:

(a)	15 business days after an invitation for submissions on the coverage application is advertised under section 3.13(b); and
(b)	10 business days after an issues paper is published in respect of the coverage application under section 3.14

Draft coverage decision by the Minister

3.17

Subject to section 3.24, the Minister must consider any submissions made under section 3.16 on a coverage application and must make a draft coverage decision either:

(a)	that the network be covered; or
(b)	that the network not be covered.

30 November 2004 GOVERNMENT GAZETTE, WA 5553

3.18	The Minister must, within 15 business days (but not earlier than 10 business days) after the due date for submissions under section 3.16, publish and advertise the draft coverage decision and provide a copy of the draft coverage decision and reasons to the coverage applicant and the service provider.
3.19	The Minister must publish and advertise an invitation for submissions on a draft coverage decision at the same time as the Minister publishes the draft coverage decision.

Second round public submissions

3.20 A person may make a submission to the Minister on a draft coverage decision within 15 business days after the invitation for submissions on the draft coverage decision is advertised under section 3.19.

Final coverage decision by Minister

3.21

Subject to section 3.24, the Minister must consider any submissions made under section 3.20 on a draft coverage decision and must make a final coverage decision either:

(a)	that the network be covered; or
(b)	that the network not be covered.

3.22

The Minister must, within 15 business days (but not earlier than 10 business days) after the due date for submissions under section 3.20, publish and advertise the final coverage decision and provide a copy of the final coverage decision and reasons to the coverage applicant and the service provider.

Final coverage decision has effect

3.23 The Minister must specify a date in the final coverage decision on which the final coverage decision will have effect, which date must not be earlier than 10 business days after the day the final coverage decision is made.

Late submissions

3.24 The Minister may consider any submission received pursuant to an invitation for
submissions after the time for making the submission has expired.

Reasons

3.25 At the time of advertising and publishing a coverage decision the Minister must also
advertise and publish the reasons for the coverage decision.

Rebates and recoupment

A4.15 The capital contributions policy may specify materiality thresholds below which any recoupment and rebate mechanism under clause A4.13(d) or A4.14(c)(ii) will not apply, for example in terms of one or more of the following in respect of a required augmentation:

(a) a minimum capital cost of $[x][72]; or

[72] To be inserted in the access arrangement and approved by the Authority under Chapter 5. To the

5690 GOVERNMENT GAZETTE, WA 30 November 2004

(b)	a minimum amount of $[x][73] to be recouped from or rebated to a user; or
(c)	a maximum period of [x][74] months over which the mechanism may operate.

[73] To be inserted in the access arrangement and approved by the Authority under Chapter 5. To the

[74] To be inserted in the access arrangement and approved by the Authority under Chapter 5. To the

Sub-appendix 4.3 – Non- capital contributions

Non-capital contribution

A4.16	In this capital contributions policy and subject to clause A4.17, the “non-capital contribution” in respect of an alternative option is the alternative option costs less the amount of the alternative option costs which, if the test in section 6.41 was applied to the alternative option costs, would satisfy the test.
A4.17	A non-capital contribution must not exceed the amount that would be required by a prudent service provider acting efficiently, in accordance with good electricity industry practice, seeking to achieve the lowest sustainable cost of providing the new services.
A4.18	If the application of this capital contributions policy in relation to an alternative option produces a non-capital contribution amount that is greater than zero, the service provider is not required to undertake the alternative option unless the relevant applicant agrees to provide the non- capital contribution to the service provider in accordance with this capital contributions policy.
A4.19	If it is necessary for the service provider to undertake an alternative option to provide new services to more than one relevant applicant, the service provider must calculate the non- capital contribution for the alternative option as set out in clause A4.16 and must, acting as a reasonable and prudent person, apportion the amount calculated under clause A4.16 between the relevant applicants in accordance with the Code objective to determine each relevant applicant’s non-capital contribution.

Manner of contribution

A4.20 A non-capital contribution may be made by the relevant applicant by way of a financial payment comprising, as agreed between the service provider and relevant applicant, either:

(a)	periodic financial payments; or
(b)	an up-front financial payment.

A4.21 Where it is agreed that a relevant applicant will make a periodic financial payment or an up- front payment (“financial provision”), then the terms of the access contract or another contract (either in this context a payment contract) must deal with the parties’ rights and obligations in relation to the financial provision including regarding security for the relevant applicant and must be negotiated between the service provider and the relevant applicant, and failing agreement may be the subject of an access dispute.

30 November 2004 GOVERNMENT GAZETTE, WA 5691

Appendix 5 – Procedural Rules for Arbitration

{Outline: See section 10.2.}

Application

A5.1

This Appendix 5 applies if:

(a)	in accordance with the Code, a service provider or another person notifies the Authority that an access dispute exists; and
(b)	notification of the dispute is not withdrawn in accordance with the Code.

Definitions

A5.2 In this Appendix 5 “Court” means the Supreme Court.

Informality and expedition

A5.3	Subject to the Code, proceedings must be conducted with as little formality and technicality, and with as much expedition, as the requirements of this Appendix 5 and Chapter 10, and a proper hearing and determination of a dispute, permit.
A5.4	The arbitrator may from time to time make orders regulating the conduct of, and regulating parties’ conduct in relation to, proceedings which are directed towards achieving the objective in clause A5.3.
A5.5	The parties to an access dispute must at all times conduct themselves in a manner which is directed towards achieving the objective in clause A5.3.
A5.6	An order under clause A5.4 is not an award.

Arbitrator may request information

A5.7	The arbitrator may request the Authority to give to the arbitrator any information in the Authority’s possession that is relevant to the access dispute.
A5.8	The Authority is to give the arbitrator the information requested, whether or not it is confidential and whether or not it came into the Authority’s possession for the purposes of the arbitration.
A5.9	If the Authority gives the arbitrator information that is confidential, the Authority is to identify the nature and extent of the confidentiality and subject to clause A5.10, the arbitrator is to treat the information accordingly.
A5.10	To the extent necessary to comply with the rules of natural justice, the arbitrator may disclose to the parties any information provided by the Authority whether or not it is confidential, but the arbitrator may make an order under clause A5.25 or a determination under clause A5.39 in respect of such information.

Hearing to be in private

A5.11	Subject to Subchapter 10.3 and clause A5.12, proceedings are to be heard in private.
A5.12	If the parties agree, proceedings or part of the proceedings may be conducted in public.

A5.13 The arbitrator may give written directions as to the persons who may be present at

proceedings that are conducted in private.

A5.14 In giving directions under clause A5.13, the arbitrator must have regard to the wishes of the
parties and the need for commercial confidentiality.

Right to representation

A5.15 Subject to section 10.14, in proceedings, a party may appear in person or be represented by
someone else.

5692	GOVERNMENT GAZETTE, WA	30 November 2004
Procedure

A5.16

In proceedings, the arbitrator:

(a)	is not bound by technicalities, legal forms or rules of evidence; and
(b)	must act as speedily as a proper consideration of the access dispute allows, having regard to the need to carefully and quickly inquire into and investigate the dispute and all matters affecting the merits, and fair settlement, of the access dispute; and
(c)	may gather information about any matter relevant to the access dispute in any way the arbitrator thinks appropriate.

A5.17

To the extent necessary to comply with the rules of natural justice, the arbitrator may disclose to the parties any information gathered by the arbitrator under clause A5.16(c) whether or not it is confidential, but the arbitrator may make an order under clause A5.25 or a determination under clause A5.39 in respect of such information.

A5.18 The arbitrator may determine the periods that are reasonably necessary for the fair and adequate presentation of the respective cases of the parties in the arbitration hearing, and may require that the cases be presented within those periods.

A5.19

The arbitrator may require evidence or argument to be presented in writing, and may decide
the matters on which the arbitrator will hear oral evidence or argument.

A5.20

The arbitrator may determine that all or part of proceedings are to be conducted by:

(a)	telephone; or
(b)	closed circuit television; or
(c)	any other means of communication.

Particular powers of arbitrator

A5.21

The arbitrator may do any of the following things for the purpose of determining an access
dispute:

(a)	give a direction in the course of, or for the purpose of, proceedings; and
(b)	make an interim determination; and
(c)	hear and determine the proceedings in the absence of a party who has been given notice of the hearing; and
(d)	sit at any place; and
(e)	adjourn to any time and place; and
(f)	refer any matter to an independent expert and accept the expert’s report as evidence.

Determinations

A5.22

If the arbitrator makes a determination or interim determination it must:

(a)	make it in writing, signed by the arbitrator; and
(b)	include reasons in the determination.

A5.23

If a determination of an arbitrator under this Appendix 5 contains:

(a)	a clerical mistake; or
(b)	an error arising from an accidental slip or omission; or
(c)	a material mathematical miscalculation or a material mistake in the description of any person, thing or matter referred to in the determination; or
(d)	a defect in form,

the arbitrator may correct the determination or the Court, on the application of a party, may
make an order correcting the determination.

30 November 2004	GOVERNMENT GAZETTE, WA	5693
Contempt

A5.24 A person must not do any act or thing in relation to the arbitration of an access dispute that
would be a contempt of court if the arbitrator were a court of record.

Disclosure of information

A5.25	The arbitrator may (subject to the rules of natural justice) give an oral or written order to a person not to divulge or communicate to anyone else specified information that was given to the person in the course of proceedings unless the person has the arbitrator’s permission.
A5.26	A person must not contravene an order under clause A5.25.

Power to take evidence on oath or affirmation

A5.27	The arbitrator may take evidence on oath or affirmation and for that purpose the arbitrator may administer an oath or affirmation.
A5.28	The arbitrator may summon a person to appear before the arbitrator to give evidence and to produce such documents (if any) as are referred to in the summons.
A5.29	The powers contained in clauses A5.27 and A5.28 may only be exercised for the purposes of arbitrating an access dispute.

Failing to attend as a witness

A5.30

A person who is served with a summons to appear as a witness before the arbitrator must not,
without reasonable excuse:

(a)	fail to attend as required by the summons; or
(b)	fail to appear and report himself or herself from day to day unless excused, or released from further attendance, by the arbitrator.

Failing to answer questions etc.

A5.31

A person appearing as a witness before the arbitrator must not, without reasonable excuse:

(a)	refuse or fail to be sworn or to make an affirmation; or
(b)	refuse or fail to answer a question that the person is required to answer by the arbitrator; or
(c)	refuse or fail to produce a document that he or she is required to produce by a summons served on it.

A5.32

The determination as to what is a reasonable excuse for the purposes A5.31 is solely in the
discretion of the arbitrator.

A5.33

It is a reasonable excuse for the purposes of clause A5.31 for an individual to refuse or fail to answer a question or produce a document on the ground that the answer or the production of the document might tend to incriminate the individual or to expose the individual to a penalty.

A5.34

Clause A5.33 does not limit what is a reasonable excuse for the purposes of clause A5.31.

Intimidation etc.

A5.35

A person must not:

(a)	threaten, intimidate or coerce another person; or
(b)	cause or procure damage, loss or disadvantage to another person,

because that other person:

(c)	proposes to produce, or has produced, documents to the arbitrator; or
(d)	proposes to appear, or has appeared, as a witness before the arbitrator.

5694 GOVERNMENT GAZETTE, WA 30 November 2004

Party may request arbitrator to treat material as confidential

A5.36

A party to proceedings may:

(a)	inform the arbitrator that, in the party’s opinion, a specified part of a document contains confidential commercial information; and
(b)	request the arbitrator not to give a copy of that part to another party.

A5.37

On receiving the request, the arbitrator must:

(a)	inform the other party or parties that the request has been made and of the general nature of the matters to which the relevant part of the document relates; and
(b)	ask the other party or parties whether there is any objection to the arbitrator complying with the request.

A5.38 If there is an objection to the arbitrator complying with a request, the party objecting may inform the arbitrator of its objection and of the reasons for it.

A5.39

After considering:

(a) a request;

(b) any objection; and

(c) any further submissions that a party has made in relation to the request,

the arbitrator may (subject to the rules of natural justice) make a determination:

(d)	to not give to the other party or parties a copy of so much of the document as contains confidential commercial information that the arbitrator thinks should not be given; or
(e)	to give the other party or another specified party a copy of the whole, or part, of the part of the document that contains confidential information subject to a condition that the party give an undertaking not to disclose the information to another person except to the extent specified by the arbitrator and subject to such other conditions as the arbitrator determines.

A5.40 If any person (other than the arbitrator), in breach of a determination under clause A5.39,discloses information (other than information which has lawfully entered the public domain or which must be disclosed under a written law) that the arbitrator has determined under clause A5.39 is confidential commercial information, then a person affected by the breach may sue for damages..

Costs

A5.41 The costs of proceedings are to be dealt with in accordance with section 10.38.

Appeal to Court

A5.42

A party may appeal to the Supreme Court, on a question of law, from a determination of an
arbitrator under this Appendix 5.

A5.43

An appeal must be instituted:

(a)	not later than the 28th day after the day on which the decision is made or within such further period as the Supreme Court (whether before or after the end of that day) allows; and
(b)	in accordance with the rules of the Supreme Court.

A5.44 The Supreme Court may make an order staying or otherwise affecting the operation or implementation of the determination of the arbitrator that the Supreme Court thinks appropriate to secure the effectiveness of the hearing and determination of the appeal.

Copies of decisions to be given to the Authority

A5.45 Where the arbitrator is required to give a copy of a draft decision or final decision to the parties
to an access dispute, the arbitrator is to also give a copy of the decision to the Authority.

30 November 2004 GOVERNMENT GAZETTE, WA 5695

Effect of appointment of new arbitrator on evidence previously given and awards and determinations previously made

A5.46	Where a new person takes over the functions of arbitrator in place of a previous arbitrator who has begun but not completed the hearing and determination of an access dispute:
(a) the new arbitrator may order the proceedings to be re-heard:

(i)    in full, in which case all evidence heard by the previous arbitrator is to be disregarded by the new arbitrator unless resubmitted or retendered; or

(ii)     in part, in which case any evidence heard by the previous arbitrator during the parts of the proceedings which are re-heard is to be disregarded by the new arbitrator unless resubmitted or retendered;

(b)

if no order is made under clause A5.46(a), then the proceedings are to continue as though the new arbitrator had been present from the commencement of the proceedings;

(c)

if an order is made under clause A5.46(a)(ii), then:

(i)	the proceedings are to continue as though the new arbitrator had been present during the earlier proceedings; and
(ii)	the new arbitrator is to treat any evidence given, document produced or thing done in the course of the earlier proceedings in the same manner in all respects as if it had been given, produced or done in the course of the proceedings conducted by the new arbitrator;

(d)

any interim determination made in the course of the earlier proceedings is by force of this Appendix 5 to be taken to have been made by the new arbitrator; and

(e)

the new arbitrator may adopt and act on any determination of a matter made in the course of the earlier proceedings without applying his or her own judgment to the matter.

A5.47 In clause A5.46, “earlier proceedings” means the proceedings or parts of the proceedings

which the new arbitrator does not order to be re-heard under clause A5.46(a)(ii).

Decision of the Arbitrator

A5.48

Unless the arbitrator has terminated the proceedings under section 10.18, the arbitrator must require the parties to make submissions to the arbitrator regarding the access dispute by a specified date.

A5.49

In making a decision under section 10.17 of the Code, the arbitrator:

(a)	must consider submissions received from the parties before the date specified by the arbitrator under clause A5.48 and may consider submissions received after that date;
(b)	may provide a draft decision to the parties and if it does so must request submissions from the parties by a specified date;
(c)	if applicable, must consider submissions received from the parties before the date specified by the arbitrator under clause A5.49(b) and may consider submissions received after that date; and
(d)	must provide a final decision to the parties.

A5.50

The arbitrator may by whatever means it considers appropriate seek written submissions from persons who are not parties to the dispute and subject to the rules of natural justice may have regard to those submissions in making its decision under section 10.17 of the Code.

A5.51 The arbitrator must provide a final decision under section 10.17 of the Code within three months of requiring parties to make submissions under clause A5.48. The arbitrator must also ensure that there is a period of at least 10 business days:

(a)	between requiring parties to make submissions under clause A5.48 and the last day for such submissions specified by the arbitrator; and
(b)	between providing a draft decision to the parties under clause A5.49(b) and the last day for submissions on the draft decision specified by the arbitrator.

in all other respects the timing for the taking of each of the steps set out in clause A5.49 is a
matter for the arbitrator to determine.

5696 GOVERNMENT GAZETTE, WA 30 November 2004

A5.52	The arbitrator may increase the period of three months specified in clause A5.51 by periods of up to one month on one or more occasions provided it provides the parties (and each person who has made a written submission to the arbitrator) with a notice of the decision to increase the period.
A5.53	A service provider must comply with a decision of the arbitrator made under this Appendix 5 from the date specified by the arbitrator.

30 November 2004 GOVERNMENT GAZETTE, WA 5697

Appendix 6 – Matters to be Addressed by Technical

Rules

{Outline: See clause 12.32}

A6.1

Technical rules must address at least the following matters:

(a)	performance standards in respect of service standard parameters; and
(b)	the identity of the system operator for the network; and
(c)	the technical requirements that apply to the design and operation of facilities and equipment connected to the network; and
(d)	the standards which apply to the operation of the network, including in emergency situations; and
(e)	obligations to test facilities and equipment in order to demonstrate compliance with the technical rules; and
(f)	procedures that apply if the service provider believes that any part of facilities and equipment does not comply with the technical rules; and
(g)	procedures that apply to the inspection of facilities and equipment connected to the network; and
(h)	the standards which apply to control and protection settings for facilities and equipment connected to the network; and
(i)	procedures that apply to the commissioning and testing of new facilities and equipment connected to the network; and
(j)	procedures that apply to the disconnection of facilities and equipment from the network; and
(k)	the information that a user must provide to the service provider in relation to the operation of facilities and equipment connected to the network; and
(l)	the generation and load forecast information that users, consumers and generators must provide to the service provider; and
(m)	network planning criteria, which must address at least the following matters:

(i)     contingency criteria; and

(ii)    steady-state criteria including:

A	frequency limits; and
B	voltage limits; and
C	thermal rating criteria; and
D	fault rating criteria; and
E	maximum protection clearing times; and
F	auto reclosing policy; and
G	insulation coordination standard;

and

(iii)   stability criteria including:

A	rotor angle stability criteria; and
B	frequency stability criteria; and
C	voltage stability criteria;

and

5698 GOVERNMENT GAZETTE, WA 30 November 2004

(iv)   quality of supply criteria including:

A	voltage fluctuation criteria; and
B	harmonic voltage criteria; and
C	harmonic current criteria; and
D	voltage unbalance criteria; and
E	electro-magnetic interference criteria;

and

(v)    construction standards criteria; and

(n)

curtailment of services including matters such as:

(i)	planned and unplanned maintenance, testing or repair of the network; and
(ii)	breakdown of or damage to the network; and
(iii)	events of force majeure; and
(iv)	the service provider’s obligations to comply with a written law or a statutory instrument.

30 November 2004 GOVERNMENT GAZETTE, WA 5699

Appendix 7 – General process for public

consultation

{Outline: Appendix 7 is cited in certain places throughout the Code.}

Application of this Appendix 7

A7.1

If this Code states that a matter for consultation

(a)	must be the subject of public consultation under this Appendix 7or
(b)	may be the subject of public consultation under this Appendix 7, and the decision maker chooses to undertake public consultation under this Appendix 7,

then the decision maker must comply with this Appendix 7.

A7.2

If this Code requires:

(a)	public consultation in relation to a matter for consultation to be completed; or
(b)	a decision or determination relating to a matter for consultation to be made,

within a specified period of time, the decision maker must complete the public consultation or make the decision or determination, as applicable, in accordance with this Appendix 7 and within the specified time.

Where the decision maker is not the Authority

A7.3

Where the decision maker is required under this Appendix 7 to publish a thing and:

(a)	the decision maker is the Authority - the Authority must publish the thing; and
(b)	is someone other than the Authority -

(i)     the decision maker must provide a copy of the thing to the Authority; and

(ii)     once a copy of the thing is provided to the Authority, the Authority must forthwith publish the thing; and

(iii)   for the purposes of this Appendix 7, the thing is published from the time that the Authority publishes it

Issues paper

A7.4 The decision maker may produce and publish an issues paper examining the issues relating to
the matter for consultation.

Submissions from the service provider

A7.5 Where the decision maker is someone other than the service provider and is required to invite submissions from the public in relation to a matter for consultation in relation to a covered network it must also invite submissions from the service provider.

First round public submissions

A7.6	The decision maker must publish an invitation for submissions in relation to a matter for consultation.
A7.7	A decision maker must specify in its invitation for submissions under clause A7.6 the length of time it will allow for the making of submissions on a matter for consultation in accordance with clause A7.9.
A7.8	A person may make a submission on a matter for consultation within the period of time specified by the decision maker.

5700 GOVERNMENT GAZETTE, WA 30 November 2004

A7.9

The time specified by the decision maker for the making of submissions must be:

(a)	at least 10 business days; and
(b)	no greater than 20 business days

after the invitation is published, and must be at least 10 business days after any issues paper
was published under clause A7.4.

Draft decision by the Decision Maker

A7.10 Subject to clause A7.21, the decision maker must consider any submissions made on the

matter for consultation.

A7.11	The decision maker may make a draft decision if, in the opinion of the decision maker the circumstances warrant the making of a draft decision.
A7.12	If the decision maker determines that a draft decision is warranted, the decision maker must publish the draft decision within 2 months after the due date for submissions under clause A7.7.

Second round public submissions (if applicable)

A7.13

Clauses A7.15 to A7.17 apply only if the decision maker makes a draft decision under clause
A7.11.

A7.14

The decision maker must publish an invitation for submissions on the draft decision at the time
it publishes the draft decision.

A7.15

A decision maker must specify in its invitation for submissions under clause A7.6 the length of time it will allow for the making of submissions on a matter for consultation in accordance with clause A7.17.

A7.16

A person may make a submission on the draft decision to the decision maker within the time
period specified by the decision maker.

A7.17

The time specified by the decision maker for the making of submissions on the draft decision
must be:

(a)	at least 10 business days; and
(b)	no greater than 20 business days,

after the draft decision is published.

Final decision by decision maker

A7.18

Subject to clause A7.21, the decision maker must consider any submissions and make a final
decision in relation to the matter for consideration.

A7.19

The time for the decision maker to make and publish its final decision is:

(a)	where a draft decision has been made, within 30 business days after the due date for submissions under A7.15; or
(b)	otherwise, within 2 months after the due date for submissions under clause A7.7.

Publication of submissions

A7.20 The decision maker must publish all submissions made under this Appendix 7.

Late submissions

A7.21 The decision maker may, consider any submission made after the time for making that submission has expired.

———————————

!200400205GG!

PERTH, TUESDAY, 30 NOVEMBER 2004 No. 205 SPECIAL

PUBLISHED BY AUTHORITY JOHN A. STRIJK, GOVERNMENT PRINTER AT 4.15 PM

© STATE OF WESTERN AUSTRALIA

ELECTRICITY INDUSTRY ACT 2004

_________

ELECTRICITY NETWORKS

ACCESS CODE 2004

ERA publishes draft ERA publishes draft

decision approving access	decision not approving	If access
arrangement and invites	access arrangement, invites	arrangement is
public comments (2nd	public comments (2nd	lodged, but no
Round) – s.4.12(a)	Round) and states details of	access arrangement

revisions required –	approved under
s.4.12(b)	Chapter 4 12 months

after lodgement

Interested parties make submissions (2nd Round)– s.4.14 deadline

ERA publishes interim access

arrangement –that

ERA publishes final decision and does not approve lasts until access

proposed access arrangement – s.4.17(b) arrangement

approved - s.4.59

SP lodges amended SP fails to lodge an

proposed amended proposed

access arrangement – access arrangement –

s.4.19 s.4.19

ERA publishes amended

proposed access

arrangement s. 4.19

ERA publishes further final	ERA conducts
decision and does not approve	public consultation
amended (if applicable) proposed	process in
access arrangement - s4.21(b)	accordance with

Appendix 7

ERA publishes access

arrangement information

s. 4.17(a) - ERA

publishes (under s.

4.18) final decision ERA publishes further ERA drafts, approves ERA publishes further

and approves	final decision and	and publishes its own	final decision and	ERA drafts,
approves amended	approves access	approves and

proposed access access arrangement –

arrangement proposed access arrangement – s.4.21(a) publishes its

arrangement – s.4.24 own access

s.4.21(a) arrangement

– s.4.56

ERA decision may be appealed to Gas Review Board

applications and queuing policy is incorporated into an access arrangement. See section 5.7(i) of the
Code.

arrangement. The value inserted for variable [x] may be expressed as a single value or by a more
sophisticated structure for example a range of numbers but should not exceed a forecast of
reasonable costs which would be incurred by a service provider acting as a reasonable and prudent
person seeking to achieve the lowest practicable cost of processing an application of the relevant
class in relation to the relevant network.

arrangement. The value inserted for variable [x] may be expressed as a single value or by a more
sophisticated structure for example a range of numbers but should not exceed a forecast of
reasonable costs which would be incurred by a prudent service provider, acting efficiently and in good
faith, in accordance with good electricity industry practice, seeking to achieve the lowest practicable
cost of processing an application of the relevant class in relation to the relevant network.

arrangement. Unless the Authority considers that the Code objective and the objectives in section 5.7 require otherwise, the value inserted for variable [x] should not exceed 10 in respect of services to be added to an existing access contract, and 25 otherwise.

arrangement. Unless the Authority considers that the Code objective and the objectives in section 5.7
require otherwise, the value inserted for variable [x] should not exceed 25.

arrangement. The value inserted for variable [x] may be expressed as a single value or by a more
sophisticated structure for example a range of numbers but should not exceed a forecast of
reasonable costs which would be incurred by a prudent service provider, acting efficiently and in good
faith, in accordance with good electricity industry practice, seeking to achieve the lowest practicable
cost of processing a capacity increase notice in relation to the relevant network.

arrangement. Unless the Authority considers that the Code objective and the objectives in section 5.7
require otherwise, the value inserted for variable [x] should not exceed 10.

arrangement. Unless the Authority considers that the Code objective and the objectives in section 5.7
require otherwise, the value inserted for variable [x] should not be less than 20.

process under a law made under Part 9 of the Act. To be inserted when the model applications and
queuing policy is incorporated into an access arrangement. See section 5.7(h) of the Code.

arrangement. The value inserted for variable [x] should allow for the normal fine-tuning of output or load as a project is developed. It is not intended to accommodate a material reconfiguration of the project (e.g. adding or removing a processing unit), nor to facilitate ‘gaming’ of the queue.

arrangement. The value inserted for variable [x] should allow for the normal fine-tuning of output or load as a project is developed. It is not intended to accommodate a material reconfiguration of the project (e.g. adding or removing a processing unit), nor to facilitate ‘gaming’ of the queue.

arrangement, if applicable. If there are to be other criteria inserted in the access arrangement, to be
taken into account when determining if an amended application is materially different from the original
application, add “(d) ”.

arrangement, if applicable. Unless the Authority considers that the Code objective and the objectives
in section 5.7 require otherwise, the value inserted for variable [x] should not be less than 20.

arrangement, if applicable. Unless the Authority considers that the Code objective and the objectives
in section 5.7 require otherwise, the value inserted for variable [x] should not exceed 5.

arrangement, if applicable. Unless the Authority considers that the Code objective and the objectives
in section 5.7 require otherwise, the value inserted for variable [x] should not exceed 5.

arrangement, if applicable. Unless the Authority considers that the Code objective and the objectives
in section 5.7 require otherwise, the value inserted for variable [x] should not exceed 20.

arrangement, if applicable. Unless the Authority considers that the Code objective and the objectives
in section 5.7 require otherwise, the value inserted for variable [x] should not exceed 5.

arrangement, if applicable. Unless the Authority considers that the Code objective and the objectives
in section 5.7 require otherwise, the value inserted for variable [x] should not exceed 10.

there is to be an indemnifier is to be inserted in the access contract by agreement between the parties
or arbitrated award.

in respect of certain of UserCo’s liabilities.”

arrangement and approved by the Authority under Chapter 4. To the extent that the Authority so
approves, the access arrangement may leave this to be inserted in the access contract by agreement
between the parties or arbitrated award.

bank. To be inserted in the access arrangement and approved by the Authority under Chapter 4. To the extent that the Authority so approves, the access arrangement may leave this to be inserted in the access contract by agreement between the parties or arbitrated award.

approved by the Authority under Chapter 4. To the extent that the Authority so approves, the access
arrangement may leave this to be inserted in the access contract by agreement between the parties or
arbitrated award. Unless the Authority or arbitrator consider that a different value will better achieve
the Code objective, 10 business days should be used.

means service provider.”

the parties or arbitrated award. Consequential amendments may be needed to the duration provisions

and definitions.

between the parties or arbitrated award.

access arrangement Authority

the and approved by the under Chapter 4. To the extent that the agreement between the parties or arbitrated award.

Authority under Chapter 4. To the extent that the Authority so approves, the access arrangement may leave this to be inserted in the access contract by agreement between the parties or arbitrated award. 31 Insert the percentage of the change in CPI from the previous adjustment date. To be inserted in the

access arrangement and approved by the Authority under Chapter 4. To the extent that the Authority
so approves, the access arrangement may leave this to be inserted in the access contract by

UserCo to nominate which of UserCo or Indemnifier is to provide the following security (“nominated person”), and then require the nominated person, at UserCo’s election, to:”.

clause A3.51(a))at UserCo’s election, to:” with “require UserCo (in addition to UserCo’s obligations
under clause A3.51(a)), to nominate which of UserCo or indemnifier is to provide the following security
(“nominated person”), and then require the nominated person, at UserCo’s election, to:”.

clauses A3.40 to A3.43 here.

“either UserCo or indemnifier”.

“both UserCo and indemnifier”.

this contract, and insert what this cap applies to (e.g. whether this is per event, in a time period, over the life of the contract, etc). To be inserted in the access arrangement and approved by the Authority under Chapter 4. To the extent that the Authority so approves, the access arrangement may leave

this to be inserted in the access contract by agreement between the parties or arbitrated award.

this contract, and insert what this cap applies to (e.g. whether this is per event, in a time period, over the life of the contract, etc). To be inserted in the access arrangement and approved by the Authority under Chapter 4. To the extent that the Authority so approves, the access arrangement may leave

this to be inserted in the access contract by agreement between the parties or arbitrated award.

UserCo or indemnifier”.

UserCo or indemnifier”.

“either or both of UserCo or indemnifier”.

UserCo or indemnifier”.

basis. A service provider may propose to the Authority an alternative approach for inclusion in the access arrangement, for example one in which the matters on which the service provider may self insure are prescribed in the access arrangement, and the Authority may approve such an alternative

approach.

owned corporation.

extent that the Authority so approves, the access arrangement may leave this to be inserted in the
access contract by agreement between the parties or arbitrated award.

accordance with the capital contributions policy in the service provider’s access arrangement.

accordance with the service provider’s access arrangement.

accordance with the service provider’s access arrangement.

accordance with the service provider’s access arrangement.

accordance with the service provider’s access arrangement.

extent that the Authority so approves, the access arrangement may leave this to be inserted in the
access contract by agreement between the parties or arbitrated award.

extent that the Authority so approves, the access arrangement may leave this to be inserted in the
access contract by agreement between the parties or arbitrated award.

extent that the Authority so approves, the access arrangement may leave this to be inserted in the
access contract by agreement between the parties or arbitrated award.

extent that the Authority so approves, the access arrangement may leave this to be inserted in the
access contract by agreement between the parties or arbitrated award.

extent that the Authority so approves, the access arrangement may leave this to be inserted in the
access contract by agreement between the parties or arbitrated award.