Electricity Supply Amendment (Transmission Operator's Levy) Act 1998 (NSW)

New South Wales

Electricity Supply Amendment

(Transmission Operator’s Levy) Act

1998 No 78

Contents

Page

1 Name of Act 2

2	Commencement	2
3	Amendment of Electricity Supply Act 1995 No 94	2

Schedule 1 Amendments 3

New South Wales

Electricity Supply Amendment
(Transmission Operator’s Levy) Act

1998 No 78

Act No 78, 1998

An Act to amend the Electricity Supply Act 1995 to impose a transmission operator’s levy; and for other purposes. [Assented to 14 July 1998]

Section 1 Electricity Supply Amendment (Transmission Operator's Levy) Act 1998 No 78

The Legislature of New South Wales enacts:

1 Name of Act

This Act is the Electricity Supply Amendment (Transmission

Operator’s Levy) Act 1998.

2 Commencement

This Act commences or is taken to have commenced on 28 June

1998.

3 Amendment of Electricity Supply Act 1995 No 94

The Electricity Supply Act 1995 is amended as set out in
Schedule 1.

Electricity Supply Amendment (Transmission Operator’s Levy) Act 1998 No 78

Amendments	Schedule 1
Schedule 1	Amendments

(Section 3 )

[1]        Sections 32B (2) (d), 43B (1), 43D (1) (a) and 43E (2), (3) and (6)

Omit “eligible customers” wherever occurring.
Insert instead “non-franchise customers”.

[2]        Section 43B Pricing of electricity for non-franchise customers

Omit “equal to” from section 43B (1). recommendation of the Treasurer and published in the Gazette that does not exceed”.

[3]        Section 43C Pricing of electricity for other customers

Omit “(other than an eligible customer)”.

[4]        Section 43E Operation of Division

Omit “an eligible customer” from section 43E (4).
Insert instead “a non-franchise customer”.

[5]        Part 4A

Insert after Part 4:

Part 4A Electricity supply by transmission operators

to direct customers

Division 1	Levy
43F Definitions

In this Division:

direct customer of a transmission operator means a

person (other than the holder of an electricity distributor’s licence or a generator but only in so far as the person acts in the capacity of the holder of an electricity distributor’s licence or a generator):

(a)	who is connected to the network otherwise than by means of the distribution system of the holder of an electricity distributor’s licence. and
(b)	who is in New South Wales.

Electricity Supply Amendment (Transmission Operator’s Levy) Act 1998 No 78

Schedule 1 Amendments

generator means a person who owns, controls or

operates a generator of electricity that supplies electricity

to a network.

network income of a transmission operator means the
income derived by the transmission operator from the use of the electricity network in the provision of electricity network services by the transmission operator

with respect to the supply of electricity to its direct

customers.

43G Transmission operator’s levy

(1)

A transmission operator must pay to the Treasurer, in respect of each financial year, the levy determined in respect of that year by order of the Governor, on the recommendation of the Treasurer, applying to the transmission operator and published in the Gazette.

(2)

The Treasurer, in recommending the amount of a levy for a financial year payable by a transmission operator, must be satisfied that the amount reasonably represents the amount by which the network income (as estimated by the Treasurer) of the transmission operator in that year is likely to exceed the sum of the amounts (as estimated by the Treasurer) to be:

(a)	the costs of deriving the income, and
(b)	the taxes payable in deriving that income, and
(c)	a reasonable return on the capital of the transmission operator used in deriving that income.

having regard to:

(d)	the likely consumption of electricity in that financial year by its direct customers. and
(e)	such other matters as the Treasurer determines after consultation with the transmission operator.

(3)

The levy is payable for the financial year commencing
on 1 July 1998 and later financial years.

Electricity Supply Amendment (Transmission Operator’s Levy) Act 1998 No 78

Amendments Schedule 1

43H Variation of levy

The amount of a levy payable by a transmission operator in respect of a financial year may be varied by order of the Governor applying to the transmission operator and published in the Gazette.

Such an order may be made before or during the financial year concerned or during the following financial year, but not later.

be satisfied of the matters referred to in section 43G (2).

The Treasurer, in recommending a variation of a levy for a financial year payable by a transmission operator, must

43I Becoming a transmission operator during a year

( 1)	If a person becomes a transmission operator during a financial year, a levy may be determined under this Division for the transmission operator in respect of the remaining part of that financial year.
(2)	The other sections of this Division apply to the transmission operator in respect of that financial year as if references in those sections to a financial year were references to the remaining part of that financial year.

43J Ceasing to be a transmission operator during a year

If a person ceases to be a transmission operator during a

financial year, the amount of levy payable by the transmission operator may be adjusted by order of the Governor, applying to the transmission operator and published in the Gazette, having regard to the length of the portion of that financial year during which the person was a transmission operator.

Such a person is entitled to a refund of any money paid in excess of the amount of the levy as so adjusted.

transmission operator, cease to be liable to a levy, or to a However, a person does not, by ceasing to be a

variation of a levy under section 43H, in respect of any

period during which the person was a transmission
operator.

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Schedule 1 Amendments

Accordingly, a reference in this Division to a transmission operator includes a reference to a former transmission operator, but without making the former transmission operator liable to a levy in respect to any period after the person ceased to be a transmission operator.

The other sections of this Division apply for the purpose of calculating an adjustment referred to in subsection (1)

or a variation referred to in subsection (3) as if

references in those sections to a financial year were references to the portion of the financial year during which the person was a transmission operator.

43K Payment and recovery of levy

(1)	The levy in respect of a financial year is payable at such times (whether during or after that year) and in such manner as are:
(a) determined in the order imposing, varying or adjusting it (subject to any agreement referred to

in paragraph (b)), or

(b) agreed on between the Treasurer and the transmission operator.

(2) A levy under this Division is recoverable as a debt due to
the Crown in any court of competent jurisdiction.

43L Operation of Division

Nothing in this Division affects the operation of section

59B of the Public Finance and Audit Act 1983.

Division 2	Pricing of electricity
43M Definitions

In this Division:

direct customer of a transmission operator has the same

meaning as in Division 1.

IPART electricity network pricing determination means

a determination of the Independent Pricing and Regulatory Tribunal under the Independent Pricing and Regulatory Tribunal Act 1992 to the extent that it relates to:

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Amendments Schedule 1

(a)	the determination of the maximum price for the provision of electricity network services by a transmission operator, or
(b)	the determination of the methodology for fixing the maximum price for the provision of electricity network services by a transmission operator.

43N Pricing of electricity for direct customers

The maximum price for electricity network services that are the subject of an IPART electricity network pricing determination and that are provided by a transmission operator with respect to the supply of electricity to its direct customers is increased by an amount determined by an order made by the Governor on the recommendation of the Treasurer and published in the Gazette that does not exceed 0.550 cents per kilowatt hour of the electricity supplied.

effect under the Independent Pricing and Regulatory An IPART electricity network pricing determination has

Tribunal Act 1992 (without limitation including section

18, but excluding sections 16 and 17 and any prescribed provisions of that Act) as if it contained provisions for the increase effected by subsection (1).

43O Returns

(1)

A transmission operator is, within such periods as are specified or described from time to time by the Treasurer by notice to the transmission operator or by notice published in the Gazette, required to furnish to the Treasurer a return setting out:

(a)	such information relating to forecast and actual consumption of electricity by its direct customers as is specified or described in such a notice, and
(b)	such other information as is specified or described in such a notice. being information that is relevant to the transmission operator's obligations under this Division.

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Schedule 1 Amendments

(2) The information in such a return is to be furnished in such manner and form as is specified or described in such a notice.

(3) The Treasurer may, by notice to the transmission operator by notice published in the Gazette, require supplementary or further information from the transmission operator at any time.

43P Operation of Division

(1)	The regulations may make provision for or with respect to phasing in the increase effected by section 43N (1) in relation to any class or classes of persons in cases where it is not practicable to ascertain the exact amount of electricity supplied for any period commencing with the commencement of this section.
(2)	This Division does not apply to electricity network services:

provided to a person under a contract:

(i)       that was entered into between a transmission operator and a direct customer before the commencement of this section, and

(ii)      that contains a provision in force before that commencement that expressly precludes payment of additional charges for electricity network services provided under it, or

provided to a person under a connection agreement that is entered into between a

transmission operator and a person pursuant to an

arrangement, being an arrangement:

(i) that was entered into between the transmission operator and the person before the commencement of this section, and

(ii) that contains a provision that expressly precludes payment of additional charges for electricity services provided under the connection agreement.

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Amendments Schedule 1

This Division does not apply in relation to electricity network services provided during any period specified or described in an order made by the Governor on the recommendation of the Treasurer and published in the Gazette.

This Division does not apply in relation to electricity network services provided to persons of a class specified or described in an order made by the Governor on the recommendation of the Treasurer and published in the Gazette.

justiciable by a person to whom electricity network Nothing in this Division gives rise to any rights that are

services are provided by a transmission operator or to

any grounds that constitute a defence to proceedings for
the recovery of any amount from such a person.

[6]        Section 99A IPART determinations

Omit "and Division 4 of Part 4".
Insert instead “, Division 4 of Part 4 and Part 4A".

[7]        Dictionary

Omit the definition of eligible customer.

[Minister's second reading speech made in—

Legislative Assembly on 2 June 1998
Legislative Council on 1 July 1998]