Energy Legislation Further Amendment Act 2007 (Vic)
Energy Legislation Further Amendment Act 2007
No. 55 of 2007
TABLE OF PROVISIONS
Section Page
PART 1—PRELIMINARY
1Purpose
2Commencement
PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000
Division 1—Supplier of last resort amendments
3New Division 8 of Part 2 inserted
Division 8—Supplier of last resort
49ADefinitions
49BMeaning of related relevant customer information
49CRelevant customers for the purposes of this Division
49DLicence condition—supplier of last resort
49ETariffs, terms and conditions for electricity supply following trigger event
49FVariation of tariffs, terms and conditions for electricity supply by supplier of last resort
49GSupply of specified relevant customer information
after trigger event49HCompliance with a relevant customer information
notice49ICommission to give specified relevant customer information it is given to supplier of last resort
49JProceedings for contravention of requirement to
comply with relevant customer information notice49KCorporations Act displacement
4Repeal of provision superseded by new Division 8 of Part 2
Division 2—Customer safety net amendments
5Regulation of tariffs for prescribed customers
6Condition restricting sale to certain customers
7Offer to domestic or small business customers
8Terms and conditions of contracts for sale of electricity to
certain customers9Publication of terms and conditions of sale of electricity
10Deemed contracts with former franchise customers
11Deemed contracts for supply and sale for relevant customers
Division 3—Other amendments
12Offer to domestic or small business customers
13Powers of VENCorp to manage electricity demand
PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001
Division 1—Supplier of last resort amendments
14New Division 6 of Part 3 inserted
Division 6—Supplier of last resort
51ADefinitions
51BMeaning of related relevant customer information
51CRelevant customers for the purposes of this Division
51DLicence condition—supplier of last resort
51ETariffs, terms and conditions for gas supply following trigger event
51FVariation of tariffs, terms and conditions for gas
supply by supplier of last resort51GSupply of specified relevant customer information
after trigger event51HCompliance with a relevant customer information
notice51ICommission to give specified relevant customer information it is given to supplier of last resort
51JProceedings for contravention of requirement to
comply with relevant customer information notice51KCorporations Act displacement
15Repeal of provision superseded by new Division 6 of Part 3
Division 2—Customer safety net amendments
16Regulation of tariffs for prescribed customers
17Offer to domestic or small business customers
18Terms and conditions of contracts for sale of gas to certain customers
19Publication of terms and conditions of sale of gas
20Deemed contracts with former franchise customers
21Deemed contracts for supply and sale for relevant customers
22Cost recovery
Division 3—MSO Rules related amendments
23Insertion of new definition of AER into section 3
24New definition inserted into Division 1 of Part 4
52AADefinitions
25MSO Rules
26New sections 52B and 52C inserted
52BApproval or determination by ACCC of market
service fees payable by market participants52CWhat if ACCC does not make a decision to approve
(or not approve) the market service fees within time?
27New section 53 substituted
53VENCorp's access arrangement fees continue to apply until market service fees take effect
28New section 67A inserted
67ACommission directions to VENCorp in relation to supplier of last resort trigger events
Division 4—Operation of underground storage facility
29Repeal of definition
30Repeal of obligation to be licensed to operate underground storage facility
31Repeal of references to Port Campbell facility
Division 5—Other amendments
32Offer to domestic or small business customers
33AER approval or determination of fees payable by market participants
PART 4—AMENDMENT OF GAS PIPELINES ACCESS (VICTORIA) ACT 1998
34New section 20A inserted
20AVENCorp not a service provider under Gas Pipelines Access (Victoria) Law and Gas Pipelines Access (Victoria) Regulations
PART 5—AMENDMENT OF GAS AND FUEL CORPORATION (HEATANE GAS) ACT 1993
35New section 20A inserted
20AEffect of Order under section 11
PART 6—REPEAL OF AMENDING ACT
36Repeal
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ENDNOTES
Energy Legislation Further Amendment Act 2007
No. 55 of 2007
[Assented to 7 November 2007]
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1Purpose
The main purpose of this Act is to—
(a)amend the Electricity Industry Act 2000 and the Gas Industry Act 2001 to—
(i)further provide for supplier of last resort arrangements; and
(ii)extend the operation of the customer safety net provisions; and
(b)amend the Electricity Industry Act 2000 to repeal a provision relating to VENCorp's powers to manage electricity demand; and
(c)amend the Gas Industry Act 2001 to—
(i)make miscellaneous amendments relating to the Market and System Operation Rules, including amendments providing for the approval of VENCorp's charges for the services it provides to participants in the market regulated under those Rules; and
(ii)repeal provisions and references relating to the Port Campbell underground storage facility; and
(d)amend the Gas Pipelines Access (Victoria) Act 1998 to provide that VENCorp is not to be taken to be a service provider under the Gas Pipelines Access (Victoria) Law and the Gas Pipelines Access (Victoria) Regulations if it only operates or controls the operation of (without at the same time owning) a pipeline; and
(e)amend the Gas and Fuel Corporation (Heatane Gas) Act 1993 to clarify the effect of an Order made under section 11 of that Act relating to the transfer of the ownership of the heatane gas pipeline.
2Commencement
(1)This Act (except sections 23, 25(1), 26 and 33) comes into operation on the day after the day this Act receives the Royal Assent.
(2)Subject to subsection (3), sections 23, 25(1), 26 and 33 come into operation on a day or days to be proclaimed.
(3)If a provision referred to in subsection (2) does not come into operation before 1 January 2010, it comes into operation on that day.
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PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000
Division 1—Supplier of last resort amendments
3New Division 8 of Part 2 inserted
After section 49 of the Electricity Industry Act 2000 insert—
"Division 8—Supplier of last resort
49ADefinitions
In this Division—
connection point has the same meaning as in Chapter 10 of the National Electricity Rules;
defaulting licensee has the meaning given by section 49D(5);
distribution services means services provided by means of a distribution system;
insolvency official means an administrator, liquidator, provisional liquidator, receiver or receiver and manager;
metering installation has the same meaning as in Chapter 10 of the National Electricity Rules;
network tariff code means the descriptor assigned by a distribution company to its charges for distribution services or charges for classes of distribution services that it supplies;
related relevant customer information has the meaning given by section 49B;
relevant customer means a person, or a member of a class of persons, to whom an Order under section 49C(1) applies;
relevant customer information means the following information—
(a)the name and contact details of a relevant customer; and
(b)the address of a relevant customer for electricity billing purposes; and
(c)the address of a relevant customer at which the relevant customer is supplied electricity if that address is different from the address for electricity billing purposes; and
(d)the national metering identifier (as defined in clause 7.3.1 of the National Electricity Rules) and issued under that clause for the metering installation relating to the connection point at which a relevant customer is supplied electricity; and
(e)the network tariff code or network tariff codes relating to the distribution services supplied by a distribution company to enable a relevant customer to be supplied electricity; and
(f)details of a relevant customer's average monthly electricity consumption at premises where the relevant customer is supplied electricity, calculated on the basis of that customer's monthly electricity consumption at the premises in the 12 months immediately prior to the occurrence of the trigger event; and
(g)information evidencing whether a relevant customer is an eligible beneficiary (within the meaning of the State Concessions Act 2004); and
(h)details of any continuous supply arrangements for a relevant customer who requires that kind of supply because of a medical condition;
relevant customer information notice means a notice given under section 49G(2) or (3);
specified relevant customer information means relevant customer information or related relevant customer information specified in a notice under section 49G(2) or (3);
supplier of last resort means a licensee who—
(a)holds a licence the conditions of which are subject to a requirement of the kind specified in section 49D(1); and
(b)by operation of section 49D(5), is obliged to supply or sell electricity to a relevant customer in accordance with that requirement;
trigger event means an event specified in section 49D(5)(a) or (b).
49BMeaning of related relevant customer information
Related relevant customer information is information relating to a relevant customer of a defaulting licensee (that is not relevant customer information) that the Commission considers a supplier of last resort must have in order for that supplier to perform its obligation under section 49D(5) in relation to that relevant customer.
49CRelevant customers for the purposes of this Division
(1)The Governor in Council may, by Order published in the Government Gazette, declare that a person or a class of persons specified in the Order is, for the purposes of this Division, a relevant customer or class of relevant customers.
(2)An Order under subsection (1) may specify a class of persons by reference to all or any of the following—
(a)the person authorised to sell the electricity;
(b)the purpose for which the electricity is used;
(c)the quantity of electricity used;
(d)the period of use;
(e)the place of supply;
(f)any other specified factor relevant to the sale of electricity.
(3)An Order under subsection (1) may confer powers and functions on, and leave any matter to be decided by, the Commission.
49DLicence condition—supplier of last resort
(1)Without limiting the generality of section 20, the conditions to which a licence to distribute or supply, or to sell, electricity is subject may include a requirement that, in certain circumstances, the licensee, at tariffs and on terms and conditions approved by the Commission, having regard to the matters referred to in subsection (2), supply or sell electricity to relevant customers to whom electricity is supplied or sold under another such licence (whether held by that licensee or another licensee).
(2)In approving the tariffs and terms and conditions of a requirement referred to in subsection (1), the Commission must have regard to—
(a)the risks and costs associated with the requirement; and
(b)the extent to which the licensee or another licensee has developed systems to comply with such a requirement; and
(c)any tariffs and terms and conditions proposed by the licensee whether or not at the request of the Commission.
(3)A requirement referred to in subsection (1) does not apply so as to require the licensee to supply or sell electricity—
(a)if the licensee's licence provides for a distribution area, outside that area; or
(b)to a customer to whom electricity is supplied or sold under another licence if the customer elects, in writing given to the holder of that other licence, not to be a customer of that other licensee for the purposes of subsection (1).
(4)If the conditions to which a licence of a licensee is subject include a requirement referred to in subsection (1), the licensee is deemed to be the holder of a licence to sell electricity to the extent necessary to comply with the requirement.
(5)The obligation of a licensee to supply or sell electricity to a relevant customer to whom electricity is supplied or sold by another licensee (the defaulting licensee) in accordance with the requirement referred to in subsection (1) commences when—
(a)the defaulting licensee's licence is revoked; or
(b)the right of the defaulting licensee to acquire electricity from the wholesale electricity market is suspended or terminated—
whichever first occurs.
(6)The obligation of the supplier of last resort ends—
(a)3 months after its commencement; or
(b)when the customer advises the supplier of last resort that the supply or sale is no longer required; or
(c)when the customer transfers to become the customer of another licensee; or
(d)when the customer enters into a new contract with the supplier of last resort for the supply or sale of electricity—
whichever first occurs.
(7)The Commission must notify the supplier of last resort, as soon as practicable, of the commencement of the supplier of last resort's obligation under subsection (5).
49ETariffs, terms and conditions for electricity supply following trigger event
(1)This section applies if a trigger event occurs.
(2)The tariffs and terms and conditions upon which a supplier of last resort will supply or sell electricity to relevant customers of a defaulting licensee are—
(a)the tariffs and terms and conditions approved by the Commission after proposed tariffs, terms and conditions have been submitted by that supplier for approval; or
(b)if—
(i)the supplier has submitted tariffs, terms and conditions for approval and any changes proposed by the Commission are not adopted by the supplier within one month after being proposed; or
(ii)if the supplier, after being given at least one month's notice to submit proposed tariffs, terms and conditions to the Commission, fails to comply with the request—
the tariffs, terms and conditions specified by the Commission as the approved tariffs, terms and conditions.
(3)The supplier of last resort or, if the Commission specifies the tariffs and terms and conditions, the Commission, must cause notice of the approved tariffs, terms and conditions to be published in the Government Gazette.
(4)The tariffs and terms and conditions of which notice has been published in accordance with subsection (3) are binding on the supplier of last resort and the relevant customers to which they apply and, when the supplier of last resort is acting in accordance with those tariffs, terms and conditions, they have effect despite any agreement or instrument to the contrary relating to the distribution or supply, or sale, of electricity to relevant customers.
(5)A supplier of last resort and a relevant customer to whom the supplier of last resort has an obligation under section 49D(5) to supply or sell electricity are deemed to have entered into a contract on the relevant tariffs, terms and conditions published under subsection (3).
(6)The terms and conditions of a requirement referred to in section 49D(1) may include a condition setting out circumstances in which a licensee must continue to supply or sell electricity to a relevant customer to whom the supplier of last resort supplies or sells electricity under an obligation under section 49D(5) after that obligation comes to an end in accordance with section 49D(6)(a).
(7)A condition referred to in subsection (6) must provide for the tariff or tariffs and the terms and conditions for the continued supply or sale of electricity to be determined by the supplier of last resort.
49FVariation of tariffs, terms and conditions for electricity supply by supplier of last resort
(1)Tariffs, terms and conditions approved or specified by the Commission under section 49E may be varied from time to time.
(2)Section 49E applies to a variation under this section in the same manner as it applies to the approval or specification of a tariff, term or condition.
(3)If a variation is approved or specified under this section, section 49E(4) and (5) apply to the tariffs, terms and conditions as so varied.
49GSupply of specified relevant customer information after trigger event
(1)This section applies if a trigger event occurs.
(2)The Commission, by written notice, may request a defaulting licensee, or if an insolvency official has been appointed for the defaulting licensee, the insolvency official, for—
(a)relevant customer information; and
(b)related relevant customer information—
specified in the notice.
(3)A supplier of last resort, by written notice, may request—
(a)a defaulting licensee; or
(b)if an insolvency official has been appointed for the defaulting licensee, the insolvency official—
for relevant customer information specified in the notice.
(4)The Commission or the supplier of last resort is not entitled to request information under subsection (2) or (3) in respect of a relevant customer after the obligation of the supplier of last resort specified in section 49D(5) ends in accordance with section 49D(6) in respect of that customer.
(5)A notice under subsection (2) or (3) must—
(a)state the name of the supplier of last resort and the contact details of a representative of the supplier; and
(b)specify the day by when the specified relevant customer information must be given to the Commission or supplier of last resort (as the case requires), being a day that is not less than 3 days after the date of the notice; and
(c)set out the details of the trigger event; and
(d)specify the manner in which the specified relevant customer information must be given; and
(e)state that this notice is given under this section; and
(f)include a statement to the effect that if section 49H(1) is contravened, proceedings may be brought under section 49J or the Essential Services Commission Act 2001 in respect of that contravention.
Note
A proceeding may be brought under the Essential Services Commission Act 2001 in respect of a defaulting licensee who is in breach of the licence condition specified in section 49H.
49HCompliance with a relevant customer information notice
(1)A defaulting licensee, or an insolvency official appointed for a defaulting licensee, must comply with a relevant customer information notice that is given to them if the defaulting licensee or insolvency official has the specified relevant customer information in their possession, custody or control.
(2)Without limiting section 20, subsection (1) is deemed to be a licence condition of a defaulting licensee whose licence has not been revoked.
49ICommission to give specified relevant customer information it is given to supplier of last resort
On being given specified relevant customer information, the Commission must give that information to the supplier of last resort that is obliged under section 49D(5) to supply or sell electricity to the relevant customer to which that information relates.
49JProceedings for contravention of requirement to comply with relevant customer information notice
(1)This section applies if—
(a)the Commission or a supplier of last resort gives a relevant customer information notice to a defaulting licensee or an insolvency official appointed for a defaulting licensee; and
(b)the defaulting licensee or insolvency official does not comply with any aspect of the notice.
(2)The Supreme Court, on an application by the Commission or the supplier of last resort that gave the relevant customer information notice may, by order, declare whether or not the defaulting licensee or insolvency official to which the application relates has contravened section 49H(1).
(3)If the order declares the person to have contravened section 49H(1), the order may include a requirement that the defaulting licensee or insolvency official take such action, or adopt such practice, as the Supreme Court requires for remedying the contravention or preventing a recurrence of the contravention.
49KCorporations Act displacement
This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 5 of that Act.
Note
Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".
4Repeal of provision superseded by new Division 8 of Part 2
Section 27 of the Electricity Industry Act 2000 is repealed.
Division 2—Customer safety net amendments
5Regulation of tariffs for prescribed customers
In section 13(7) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
6Condition restricting sale to certain customers
In section 23(4) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
7Offer to domestic or small business customers
In section 35(9) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
8Terms and conditions of contracts for sale of electricity to certain customers
In section 36(7) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
9Publication of terms and conditions of sale of electricity
In section 36A(6) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
10Deemed contracts with former franchise customers
In section 37(3) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
11Deemed contracts for supply and sale for relevant customers
In section 39(11) of the Electricity Industry Act 2000 for "31 December 2007" substitute "31 December 2008".
Division 3—Other amendments
12Offer to domestic or small business customers
In section 35(1)(a) and (b) and (3) of the Electricity Industry Act 2000 for "2 months" substitute "one month".
13Powers of VENCorp to manage electricity demand
(1)Section 79A of the Electricity Industry Act 2000 is repealed.
(2)In section 79B(1)(a) of the Electricity Industry Act 2000—
(a)omit "79A or";
(b)for "either of those sections" substitute
"that section".
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PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001
Division 1—Supplier of last resort amendments
14New Division 6 of Part 3 inserted
After section 51 of the Gas Industry Act 2001 insert—
"Division 6—Supplier of last resort
51ADefinitions
In this Division—
defaulting licensee has the meaning given by section 51D(5);
gas distribution services means services provided by means of a distribution pipeline;
insolvency official means an administrator, liquidator, provisional liquidator, receiver or receiver and manager;
MIRN means the unique identifier for a gas metering installation allocated and registered under retail gas market rules developed by VENCorp under section 62, or a gas distribution company under section 63, and approved by the Commission under section 65 that are in effect;
network tariff code means the descriptor assigned by a gas distribution company to its charges for gas distribution services or charges for classes of gas distribution services that it supplies;
related relevant customer information has the meaning given by section 51B;
relevant customer means a person, or a member of a class of persons, to whom an Order under section 51C(1) applies;
relevant customer information means the following information—
(a)the name and contact details of a relevant customer; and
(b)the address of a relevant customer for gas billing purposes; and
(c)the address of a relevant customer at which the relevant customer is supplied gas if that address is different from the address for gas billing purposes; and
(d)the MIRN for the gas metering installation at the supply point at which a relevant customer is supplied gas; and
(e)the network tariff code or network tariff codes relating to the gas distribution services supplied by a gas distribution company to enable a relevant customer to be supplied gas; and
(f)details of a relevant customer's average monthly gas consumption at premises where the relevant customer is supplied gas, calculated on the basis of that customer's monthly gas consumption at the premises in the 12 months immediately prior to the occurrence of the trigger event; and
(g)information evidencing whether a relevant customer is an eligible beneficiary (within the meaning of the State Concessions Act 2004); and
(h)details of any continuous supply arrangements for a relevant customer who requires that kind of supply because of a medical condition;
relevant customer information notice means a notice given under section 51G(2) or (3);
specified relevant customer information means relevant customer information specified in a notice under section 51G(2) or (3);
supplier of last resort means a licensee who—
(a)holds a licence the conditions of which are subject to a requirement of the kind specified in section 51D(1); and
(b)by operation of section 51D(5), is obliged to supply or sell gas to a relevant customer in accordance with that requirement;
trigger event means an event specified in section 51D(5)(a) or (b).
51BMeaning of related relevant customer information
Related relevant customer information is information relating to a relevant customer of a defaulting licensee (that is not relevant customer information) that the Commission considers a supplier of last resort must have in order for that supplier to perform its obligation under section 51D(5) in relation to that relevant customer.
51CRelevant customers for the purposes of this Division
(1)The Governor in Council may, by Order published in the Government Gazette, declare that a person or a class of persons specified in the Order is, for the purposes of this Division, a relevant customer or class of relevant customers.
(2)An Order under subsection (1) may specify a class of persons by reference to all or any of the following—
(a)the person authorised to sell the gas;
(b)the purpose for which the gas is used;
(c)the quantity of gas used;
(d)the period of use;
(e)the place of supply;
(f)any other specified factor relevant to the sale of gas.
(3)An Order under subsection (1) may confer powers and functions on, and leave any matter to be decided by, the Commission.
51DLicence condition—supplier of last resort
(1)Without limiting the generality of section 28, the conditions to which a licence to provide services by means of a distribution pipeline or to sell gas by retail is subject may include a requirement that, in certain circumstances, the licensee, on tariffs, terms and conditions approved by the Commission, having regard to the matters referred to in subsection (2), supply or sell gas to relevant customers to whom gas is supplied or sold under another licence (whether held by that licensee or another licensee).
(2)In approving the tariffs and terms and conditions of a requirement referred to in subsection (1), the Commission must have regard to—
(a)the risks and costs associated with the requirement; and
(b)the extent to which the licensee or another licensee has developed systems to comply with such a requirement; and
(c)any tariffs and terms and conditions proposed by the licensee whether or not at the request of the Commission.
(3)A requirement referred to in subsection (1) does not apply so as to require the licensee to supply or sell gas—
(a)if the licensee's licence provides for a distribution area, outside that area; or
(b)to a customer to whom gas is supplied or sold under another licence if the customer elects, in writing given to the holder of that other licence, not to be a customer of that other licensee for the purposes of subsection (1); or
(c)if to do so would be inconsistent with the licensee's obligations under the Access Code.
(4)If the conditions to which a licence of a licensee is subject include a requirement referred to in subsection (1), the licensee is deemed to be authorised to supply or sell gas to the extent necessary to comply with the requirement.
(5)The obligation of a licensee to supply or sell gas to a relevant customer to whom gas is supplied or sold under another licence (the defaulting licensee) in accordance with the requirement referred to in subsection (1) commences when—
(a)the defaulting licensee's licence is revoked; or
(b)the defaulting licensee has been deregistered as a market participant in the category of retailer under the MSO Rules after a notice of suspension was issued to the licensee by VENCorp under those Rules—
whichever first occurs.
(6)The obligation of the supplier of last resort ends—
(a)3 months after its commencement; or
(b)when the customer advises the supplier of last resort that the supply or sale is no longer required; or
(c)when the customer transfers to become the customer of another licensee; or
(d)when the customer enters into a new contract with the supplier of last resort for the supply or sale of gas—
whichever first occurs.
(7)The Commission must notify the supplier of last resort, as soon as practicable, of the commencement of the supplier of last resort's obligation under subsection (5).
51ETariffs, terms and conditions for gas supply following trigger event
(1)This section applies if a trigger event occurs.
(2)The tariffs and terms and conditions upon which a supplier of last resort will supply or sell gas to relevant customers of a defaulting licensee are—
(a)the tariffs and terms and conditions approved by the Commission after proposed tariffs, terms and conditions have been submitted by that supplier for approval; or
(b)if—
(i)the supplier has submitted tariffs, terms and conditions for approval and any changes proposed by the Commission are not adopted by the supplier within one month after being proposed; or
(ii)if the supplier, after being given at least one month's notice to submit proposed tariffs, terms and conditions to the Commission, fails to comply with the request—
the tariffs, terms and conditions specified by the Commission as the approved tariffs, terms and conditions.
(3)The supplier of last resort, or if the Commission specifies the tariffs, terms and conditions, the Commission, must cause notice of the approved tariffs, terms and conditions to be published in the Government Gazette.
(4)The tariffs, terms and conditions of which notice has been published in accordance with subsection (3) are binding on the supplier of last resort and the relevant customers to which they apply and, when the supplier of last resort is acting in accordance with those tariffs, terms and conditions, they have effect despite any agreement or instrument to the contrary relating to the distribution or supply, or sale of gas to those relevant customers.
(5)A supplier of last resort and a relevant customer to whom the supplier of last resort has an obligation under section 51D(5) to supply or sell gas are deemed to have entered into a contract on the relevant tariffs, terms and conditions published under subsection (3).
(6)The terms and conditions of a requirement referred to in section 51D(1) may include a condition setting out circumstances in which a supplier of last resort must continue to supply or sell gas to a relevant customer to whom the supplier of last resort supplies or sells gas under an obligation under section 51D(5) after that obligation comes to an end in accordance with section 51D(6)(a).
(7)A condition referred to in subsection (6) must provide for the tariff or tariffs and the terms and conditions for the continued supply or sale of gas to be determined by the supplier of last resort.
51FVariation of tariffs, terms and conditions for gas supply by supplier of last resort
(1)Terms and conditions approved or specified by the Commission under section 51E may be varied from time to time.
(2)Section 51E applies to a variation under this section in the same manner as it applies to the approval or specification of a term or condition.
(3)If a variation is approved or specified under this section, section 51E(4) and (5) apply to the terms and conditions as so varied.
51GSupply of specified relevant customer information after trigger event
(1)This section applies if a trigger event occurs.
(2)The Commission, by written notice, may request a defaulting licensee, or if an insolvency official has been appointed for the defaulting licensee, the insolvency official, for—
(a)relevant customer information; and
(b)related relevant customer information—
specified in the notice.
(3)A supplier of last resort, by written notice, may request—
(a)a defaulting licensee; or
(b)if an insolvency official has been appointed for the defaulting licensee, the insolvency official—
for relevant customer information specified in the notice.
(4)The Commission or the supplier of last resort is not entitled to request information under subsection (2) or (3) in respect of a relevant customer after the obligation of the supplier of last resort specified in section 51D(5) ends in accordance with section 51D(6) in respect of that customer.
(5)A notice under subsection (2) or (3) must—
(a)state the name of the supplier of last resort and the contact details of a representative of the supplier; and
(b)specify the day by when the specified relevant customer information must be given to the Commission or supplier of last resort (as the case requires), being a day that is not less than 3 days after the date of the notice; and
(c)set out the details of the trigger event; and
(d)specify the manner in which the specified relevant customer information must be given; and
(e)state that this notice is given under this section; and
(f)include a statement to the effect that if section 51H(1) is contravened, proceedings may be brought under section 51J or the Essential Services Commission Act 2001 in respect of that contravention.
Note
A proceeding may be brought under the Essential Services Commission Act 2001 in respect of a defaulting licensee who is in breach of the licence condition specified in section 51H.
51HCompliance with a relevant customer information notice
(1)A defaulting licensee, or an insolvency official appointed for a defaulting licensee, must comply with a relevant customer information notice that is given to them if the defaulting licensee or insolvency official has the specified relevant customer information in their possession, custody or control.
(2)Without limiting section 28, subsection (1) is deemed to be a licence condition of a defaulting licensee whose licence has not been revoked.
51ICommission to give specified relevant customer information it is given to supplier of last resort
On being given specified relevant customer information, the Commission must give that information to the supplier of last resort that is obliged under section 51D(5) to supply or sell gas to the relevant customer to which that information relates.
51JProceedings for contravention of requirement to comply with relevant customer information notice
(1)This section applies if—
(a)the Commission or a supplier of last resort gives a relevant customer information notice to a defaulting licensee or an insolvency official appointed for a defaulting licensee; and
(b)the defaulting licensee or insolvency official does not comply with any aspect of the notice.
(2)The Supreme Court, on an application by the Commission or the supplier of last resort that gave the relevant customer information notice may, by order, declare whether or not the defaulting licensee or insolvency official to which the application relates has contravened section 51H(1).
(3)If the order declares the person to have contravened section 51H(1), the order may include a requirement that the defaulting licensee or insolvency official take such action, or adopt such practice, as the Supreme Court requires for remedying the contravention or preventing a recurrence of the contravention.
51KCorporations Act displacement
This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 5 of that Act.
Note
Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".
15Repeal of provision superseded by new Division 6 of Part 3
Section 34 of the Gas Industry Act 2001 is repealed.
Division 2—Customer safety net amendments
16Regulation of tariffs for prescribed customers
In section 21(7) of the Gas Industry Act 2001 for "31 December 2007" (where twice occurring) substitute "31 December 2008".
17Offer to domestic or small business customers
In section 42(9) of the Gas Industry Act 2001 for "31 December 2007" substitute "31 December 2008".
18Terms and conditions of contracts for sale of gas to certain customers
In section 43(7) of the Gas Industry Act 2001 for "31 December 2007" substitute "31 December 2008".
19Publication of terms and conditions of sale of gas
In section 43A(6) of the Gas Industry Act 2001 for "31 December 2007" substitute "31 December 2008".
20Deemed contracts with former franchise customers
In section 44(3) of the Gas Industry Act 2001 for "31 December 2007" substitute "31 December 2008".
21Deemed contracts for supply and sale for relevant customers
In section 46(11) of the Gas Industry Act 2001 for "31 December 2007" substitute "31 December 2008".
22Cost recovery
In section 68(6) of the Gas Industry Act 2001 for "31 December 2007" substitute "31 December 2008".
Division 3—MSO Rules related amendments
23Insertion of new definition of AER into section 3
In section 3 of the Gas Industry Act 2001 after the definition of Access Code insert—
"AER means the Australian Energy Regulator established by section 44AE of the Trade Practices Act;".
24New definition inserted into Division 1 of Part 4
Before section 52 of the Gas Industry Act 2001 insert—
"52AA Definitions
In this Division—
market services means services provided by VENCorp to market participants in operating—
(a)the market the operation of which is regulated under the MSO Rules; and
(b)the gas transmission system under the MSO Rules;
market service fees means fees chargeable by VENCorp under the MSO Rules for the market services.".
25MSO Rules
(1)In section 52(4) of the Gas Industry Act 2001, after "ACCC" insert ", the AER".
(2)After section 52(4A)(b) of the Gas Industry Act 2001 insert—
"(ba)include provisions that—
(i)authorise VENCorp to charge market participants market service fees that have taken effect;
(ii)specify by when VENCorp must submit to the ACCC for approval under section 52B VENCorp's proposed market service fees;
(iii)provide for the content of submissions referred to in subparagraph (ii) and information that must or may accompany such submissions;
(iv)specify the procedure to be followed, and the matters to be taken into account by the ACCC, in—
(A)approving (or not approving) VENCorp's proposed market service fees;
(B)determining market service fees (if it does not approve VENCorp's proposed market service fees);
(v)specify by when the ACCC must make a decision that—
(A)approves (or not approves) VENCorp's proposed market service fees; or
(B)determines market service fees (if it does not approve VENCorp's proposed market service fees);
(vi)provide for when market service fees approved or determined by the ACCC take effect and the period for which those fees will apply under the MSO Rules;
(vii)oblige market participants to pay to VENCorp market service fees in accordance with the MSO Rules;".
(3)Section 52(6) of the Gas Industry Act 2001 is repealed.
26New sections 52B and 52C inserted
After section 52A of the Gas Industry Act 2001 insert—
"52B Approval or determination by ACCC of market service fees payable by market participants
(1)VENCorp must, in accordance with the MSO Rules, submit to the ACCC for approval VENCorp's proposed market service fees that are to apply under those Rules.
(2)Subject to this section, on receiving VENCorp's proposed market service fees, the ACCC must, in accordance with the MSO Rules—
(a)approve (or not approve) the proposed fees; and
(b)if the ACCC does not approve VENCorp's proposed market service fees, determine the market service fees that are to apply under those Rules.
(3)The ACCC may only approve VENCorp's proposed market service fees, or determine the market service fees, that are to apply under the MSO Rules on a full cost recovery and no operating surplus basis.
(4)In this section—
full cost recovery and no operating surplus basis means the recovery of costs of providing the market services without consideration of profit or return on investment.
52CWhat if ACCC does not make a decision to approve (or not approve) the market service fees within time?
(1)This section applies if—
(a)VENCorp submits its proposed market service fees in accordance with section 52B; and
(b)the ACCC does not make a decision approving or not approving those proposed market service fees under section 52B by the date specified in the MSO Rules as the date by which it must make such a decision.
(2)The ACCC must be taken to have approved VENCorp's proposed market service fees under section 52B and those fees take effect on the day the ACCC was required, under the MSO Rules, to make its decision to approve (or not approve) them.".
27New section 53 substituted
For section 53 of the Gas Industry Act 2001 substitute—
"53 VENCorp's access arrangement fees continue to apply until market service fees take effect
Despite section 20A of the Gas Pipelines Access (Victoria) Act 1998 or anything to the contrary in the MSO Rules, the market service fees in respect of which reference tariffs have been approved under the Access Code and VENCorp's access arrangement continue to apply for the purposes of the MSO Rules until market service fees approved, or determined, under section 52B take effect.".
28New section 67A inserted
After section 67 of the Gas Industry Act 2001 insert—
"67A Commission directions to VENCorp in relation to supplier of last resort trigger events
(1)The Commission, by written notice, may direct VENCorp to do a thing specified in the notice so that a relevant customer in the retail gas market regulated under the VENCorp retail gas market rules can be supplied gas by a supplier of last resort on the occurrence of a trigger event.
(2)Despite anything to the contrary in this Act, the VENCorp retail gas market rules or the MSO Rules, VENCorp must comply with a notice under subsection (1).
(3)In this section—
relevant customer has the same meaning as in section 51A;
supplier of last resort has the same meaning as in section 51A;
trigger event has the same meaning as in section 51A;
VENCorp retail gas market rules means retail gas market rules developed by VENCorp under section 62 and approved by the Commission under section 65 that are in effect.".
Division 4—Operation of underground storage facility
29Repeal of definition
In section 3 of the Gas Industry Act 2001, the definition of Port Campbell facility is repealed.
30Repeal of obligation to be licensed to operate underground storage facility
Section 23 of the Gas Industry Act 2001 is repealed.
31Repeal of references to Port Campbell facility
(1)In section 114 of the Gas Industry Act 2001, in the definition of relevant corporation, omit "owner or operator of the Port Campbell facility,".
(2)In section 127(4) of the Gas Industry Act 2001 omit "owners, or operators of the Port Campbell facility,".
(3)Section 128(2)(e)(i) of the Gas Industry Act 2001 is repealed.
(4)In section 128(2)(e)(iii) of the Gas Industry Act 2001 omit "the Port Campbell facility or".
(5)Section 128(3)(a)(i) of the Gas Industry Act 2001 is repealed.
(6)In section 128(3)(a)(iii) of the Gas Industry Act 2001 omit "the Port Campbell facility or".
(7)Section 128(13) of the Gas Industry Act 2001 is repealed.
(8)In section 131(1)(c) and (3)(f) of the Gas Industry Act 2001 omit "the Port Campbell facility or".
(9)In section 134(1) of the Gas Industry Act 2001 omit "the Port Campbell facility or".
Division 5—Other amendments
32Offer to domestic or small business customers
In section 42(1)(a) and (b) and (3) of the Gas Industry Act 2001 for "2 months" substitute "one month".
33AER approval or determination of fees payable by market participants
(1)In section 52(4A)(ba) of the Gas Industry Act 2001, for "ACCC" (wherever occurring) substitute "AER".
(2)In sections 52B and 52C of the Gas Industry Act 2001, for "ACCC" (wherever occurring) substitute "AER".
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PART 4—AMENDMENT OF GAS PIPELINES ACCESS (VICTORIA) ACT 1998
34New section 20A inserted
After section 20 of the Gas Pipelines Access (Victoria) Act 1998 insert—
"20A VENCorp not a service provider under Gas Pipelines Access (Victoria) Law and Gas Pipelines Access (Victoria) Regulations
Despite anything to the contrary in the Gas Pipelines Access (Victoria) Law and Gas Pipelines Access (Victoria) Regulations, VENCorp is not to be taken to be a service provider if it operates, or controls the operation of (without at the same time owning) a pipeline.".
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PART 5—AMENDMENT OF GAS AND FUEL CORPORATION (HEATANE GAS) ACT 1993
35New section 20A inserted
After section 20 of the Gas and Fuel Corporation (Heatane Gas) Act 1993 insert—
"20A Effect of Order under section 11
(1)The relevant Order has, and is deemed always to have had, the same force and effect as it would have had if for paragraph (c) of the relevant Order there were substituted—
"(c)approves the transfer of the Heatane pipeline to Elgas Reticulation Pty Ltd on the terms and conditions agreed between the Gas and Fuel Corporation of Victoria and Elgas Reticulation Pty Ltd in the deed known as the Sale of Pipeline and Transfer of Easement Agreement dated 14 May 1993.".
(2)In this section—
relevant Order means the Order of the Governor in Council made under section 11 and published in the Government Gazette on 25 August 1994.".
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PART 6—REPEAL OF AMENDING ACT
36Repeal
This Act is repealed on 1 January 2010.
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ENDNOTES
Minister's second reading speech—
Legislative Assembly: 19 September 2007
Legislative Council: 11 October 2007
The long title for the Bill for this Act was "A Bill for an Act to amend the Electricity Industry Act 2000, the Gas Industry Act 2001, the Gas Pipelines Access (Victoria) Act 1998, the Gas and Fuel Corporation (Heatane Gas) Act 1993 and for other purposes."
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