Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 (NSW)

Case

New South Wales

Energy Services Corporations

Amendment (TransGrid

Corporatisation) Act 1998 No 68

Contents

Page

1 Name of Act 2
2 Commencement 2

3 Amendment of Energy Services Corporations Act

1995 No 95 2
4 Amendment of other Acts and regulations 2

5 Repeal of Electricity Transmission Authority Act 1994

No 64 and regulations under that Act 2

Schedules

1 Amendment of Energy Services Corporations Act

1995 3
2
Amendment of other Acts and regulations 12
New South Wales

Energy Services Corporations
Amendment (TransGrid

Corporatisation) Act 1998 No 68

Act No 68, 1998

An Act to amend the Energy Services Corporations Act 1995 to corporatise the Electricity Transmission Authority; to make consequential amendments to other Acts and regulations; to repeal the Electricity Transmission Authority Act 1994; and for other purposes. [Assented to 2 July 1998]

Section 1 Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

The Legislature of New South Wales enacts:

1 Name of Act

This Act is the Energy Services Corporations Amendment

(TransGrid Corporatisation) Act 1998.

2 Commencement

This Act commences on day or days to be appointed by proclamation.

  1. Amendment of Energy Services Corporations Act 1995 No 95

    The Energy Services Corporations Act 1995 is amended as set out in Schedule 1.

4 Amendment of other Acts and regulations

The Acts and regulations specified in Schedule 2 are amended as set out in that Schedule.

5 Repeal of Electricity Transmission Authority Act 1994 No' 64 and regulations under that Act

( l ) The Electricity Transmission Authority Act 1994 is repealed.

(2)

The regulations made under that Act are repealed, including the Electricity Transmission Authority (Savings and Transitional) Regulation 1995.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Amendment of Energy Services Corporations Act 1995 Schedule 1
Schedule 1 Amendment of Energy Services
Corporations Act 1995

(Section 3)

[1]        Long title

Insert “, transmission” after “generation”.

[2]        Section 3 Definitions

Insert “, an energy transmission operator” after “electricity generator” in the definition of energy services corporation in section 3 (1).

[3]        Section 3 (1)

Insert in alphabetical order:

energy transmission operator means a corporation constituted by this Act, being a corporation whose corporate name is listed in Part 1A of Schedule 1.

[4]        Part 2A

Insert after Part 2:

Part 2A Energy transmission operators

6A Establishment of statutory State owned corporations

On the day on which this section commences:

(a)

a corporation is constituted by this Act under the corporate name listed in Part 1A of Schedule 1, and

(b)

the State Owned Corporations Act 1989 is amended by inserting in Schedule 5, in alphabetical order, the corporate name listed in Part 1A of Schedule 1.

6B Principal objectives of energy transmission operators

(1) The principal objectives of an energy transmission
operator are as follows:

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 1 Amendment of Energy Services Corporations Act 1995

to be a successful business and, to this end:

(i)       to operate at least as efficiently as any comparable businesses,

(ii)      to maximise the net worth of the State’s investment in it,

(iii)     to exhibit a sense of social responsibility by having regard to the interests of the community in which it operates,

to protect the environment by conducting its operations in compliance with the principles of ecologically sustainable development contained in section 6 (2) of the Protection of the Environment Administration Act 1991,

to exhibit a sense of responsibility towards regional development and decentralisation in the way in which it operates,

to operate efficient, safe and reliable facilities for the transmission of electricity and other forms of energy,

to promote effective access to those transmission
facilities.

of the principal objectives of an energy Without limiting subsection (1) (b), in implementing the principal objectives set out in subsection (l), an energy transmission operator has the special objective of minimising the environmental impact on land of activities authorised by easements for transmission facilities created in favour of the energy transmission authority. In implementing this special objective, the transmission operator is bound by all relevant laws (such as those concerning native vegetation, soil conservation and easement management) applying at the time.

transmission operator is of equal importance.
The provisions of section 20E of the State Owned Corporations Act 1989 do not apply to an energy transmission operator.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Amendment of Energy Services Corporations Act 1995 Schedule 1

6C Functions of energy transmission operators

(1)

An energy transmission operator has the functions conferred or imposed on it by or under this or any other Act or law.

(2) The principal functions of an energy transmission
operator are:

(a)

to establish, maintain and operate facilities for the transmission of electricity and other forms of energy, and

(b)

to provide services for the transmission of electricity and other forms of energy in accordance with the relevant regulatory regime.

(3) An energy transmission operator:

(a)

may also provide facilities and services that are ancillary or incidental to its principal functions, and

(b)

may also conduct any business (whether or not related to its principal functions) that it considers

will further its objectives.

In particular, an energy transmission operator may utilise and develop its facilities in connection with the provision of telecommunications services.

(4) This section does not limit the functions of an energy transmission operator apart from this section, but is subject to the provisions of this Act, the State Owned Corporations Act 1989 and any other Act or law.

[5]        Section 12 Variation of names of energy services corporations

Insert “ , 1A” after “Part 1 ” .

[6]        Section 13 Creation of additional energy services corporations

Insert “, 1A” after “Part l ” in section 13 (1).

[7]        Section 14 Dissolution of existing energy services corporations

Insert “ , 1A” after “Part 1” in section 14 (1).

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 1 Amendment of Energy Services Corporations Act 1995

Schedule 1 Energy services corporations

Insert after Part 1:

Part 1A Energy transmission operators

TransGrid

Schedule 3 Transfer of staff, assets, rights and liabilities

Omit “or 12” from clause 1 (1).

Insert instead “ , 12, 13A, 13D, 13F or 16”.

Schedule 4 Amendment of other Acts and instruments

Omit “First State Power” and “Macquarie Generation” from

Schedule 4.14 [ l ] .

Schedule 5 Savings, transitional and other provisions

Insert at the end of clause l (1):

Energy Services Corporations Amendment (TransGrid

Corporatisation) Act I998

Schedule 5, Part 2, Division 2A
Insert after Division 2 of Part 2:
Division 2A Provisions consequent on enactment of the
Energy Services Corporations Amendment
(TransGrid Corporatisation) Act 1998

13 Definitions

In this Division:

former Act means the Electricity Transmission Authority

Act 1994.

former Authority means the Electricity Transmission
Authority constituted by the former Act.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Amendment of Energy Services Corporations Act 1995 Schedule 1

former staff means the persons who were members of the staff of the former Authority immediately before the dissolution of the former Authority (other than the Chief Executive of the former Authority), and includes any such person who was seconded to a subsidiary company pursuant to section 26 of the former Act.

13A Transfer of assets, rights and liabilities of former
Authority

The Minister may direct, by order in writing:

(a)

that all assets, rights and liabilities of the former Authority, or

(b)

that any specified assets, rights and liabilities of the former Authority, or

(c)

that a l l assets, rights and liabilities of the former Authority other than those specified,

The Minister may also direct, by order in writing, that
any specified assets, rights and liabilities of the former
Authority be transferred to any other person or body
acting on behalf of the Crown as is specified in the order.
An order under this clause may be made on such terms
and conditions as are specified in the order.

be transferred to TransGrid. liabilities under this clause.

does not apply to the assets, rights or liabilities of the
Section 20C of the State Owned Corporations Act 1989
former Authority.

138   Part-time directors and Chairperson of Board of former Authority

(1)

The part-time directors of the Board of the former Authority become, on the dissolution of the former Authority, directors of the Board of TransGrid.

(2)

Those directors are taken to have been appointed to the Board of TransGrid for a term of one year from that dissolution.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 1 Amendment of Energy Services Corporations Act 1995

(3)

The part-time director referred to in section 16 (2) (c) of the former Act is taken to have been appointed as the director referred to in clause 1 (2) (b) of Schedule 2 to this Act.

(4)

The part-time director who was, on the dissolution of the former Authority, the Chairperson of the Board of the former Authority is taken to have been appointed as the chairperson of the Board of TransGrid.

13C Chief Executive of former Authority

(1)

The Chief Executive of the former Authority (if any) becomes, on the dissolution of the former Authority, the chief executive officer of TransGrid for the residue of his or her term of office as, and subject to the same conditions (including conditions as to remuneration) as those of his or her appointment as, Chief Executive of the former Authority.

(2)

The other provisions of clause 2 of Schedule 2 apply to a chief executive officer taken to be appointed in accordance with this clause.

13D Transfer of staff

(1) All former staff are transferred to TransGrid on the
dissolution of the former Authority.
(2) Schedule 3 applies to a transfer of staff under this clause.

13E Special provision relating to former public sector

executive officers

( 1)

This clause applies to a person to whom clause 13C or 13D applies who held an executive position under Part 2A of the Public Sector Management Act 1988 immediately before the dissolution of the former Authority.

(2) Any such person is not entitled to exercise a right of

return to the public sector under section 42R, or to seek compensation under section 42S, of the Public Sector Management Act 1988:

Page 8

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Amendment of Energy Services Corporations Act 1995 Schedule 1

(a)

on ceasing to hold the executive position on the dissolution of the former Authority, or

(b) on ceasing to be employed by TransGrid.
(3) This clause applies despite anything to the contrary in
this Act.
13F Dissolution of Electricity Transmission Authority
(1) The former Authority is dissolved.

(2)

The assets, rights and liabilities (if any) of the former Authority immediately before its dissolution are by this clause transferred to the Ministerial Holding Corporation established under section 37B of the State Owned Corporations Act 1989, if any such assets, rights or liabilities remain after the operation of any order under clause 13A that takes effect on or before its dissolution.

(3)

On and from the dissolution of the former Authority, TransGrid is taken for a l l purposes, including the rules of private international law, to be a continuation of, and the same legal entity as, the former Authority.

13G Variation of timetable for first statement of corporate
intent

( l )

A period within which any matter is required to be done under section 21 of the State Owned Corporations Act 1989 in connection with the first statement of corporate intent of TransGrid may be extended by the voting shareholders of TransGrid.

(2) The voting shareholders of TransGrid may also dispense

with the need for the first statement of corporate intent to

cover a specified period after the commencement of this clause or may direct that any such period be added to the period covered by the first statement of corporate intent.

13H Special provisions applying if this Act commences
before commencement of national market in electricity

(1)

This clause applies if the former Act is repealed before the commencement of the National Electricity (NSW) Law and applies until such time as that Law commences.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 1 Amendment of Energy Services Corporations Act 1995
(2) In this clause, a reference to the alternative Market and System Operator is a reference to the eligible person appointed (instead of TransGrid) as the Market and System Operator for the purposes of the Electricity Supply Act 1995 under section 77 (2) of that Act.
(3) The Minister may, by order, transfer to the alternative Market and System Operator specified employees of TransGrid. The transferred employees remain employees of TransGrid and are merely seconded to the alternative Market and System Operator.
(4) The Minister may, after consultation with the Treasurer, give the Board of TransGrid a written direction with respect to the provision of facilities, services or information by TransGrid to the alternative Market and System Operator to enable the exercise of that Operator’s functions under the Electricity Supply Act 1995. The Board must ensure that any such direction is carried out.
(5) Sections 9 (1A), 11 and 38 ( l ) of the former Act continue to have effect, as if references to the former Authority were references to:
(a) TransGrid, and
(b) the alternative Market and System Operator.
(6) Section 98U (1) (o) of the Stamp Duties Act 1920 and paragraph (a) (viic) of the definition of excluded debit in section 3 (1) of the Debits Tax Act 1990 have effect as if a reference in those provisions to the former Authority were a reference to:
(a) TransGrid. and
(b) the alternative Market and System Operator.
  1. Schedule 5

    Insert after clause 15:

    16 Finalisation of arrangements relating to certain property

    transfers

(1) This clause applies to assets, rights and liabilities of a
relevant body:

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Amendment of Energy Services Corporations Act 1995 Schedule 1
(a) that comprise or relate to electricity transmission lines of 132kV (or lower voltage), substations, switching stations or other facilities, and
(b) that are:
(i) to be transferred with the agreement of the relevant body, or
(ii) the subject, of any directions, recommendations or arrangements for transfer given or made under this Act or any other Act before the commencement of this clause, or
(iii) the subject of discussions and negotiations under clause 5 of Schedule 2 to the Electricity Transmission Authority Act 1994 before its repeal.

The Minister may direct, by order in writing, that any such specified assets, rights and liabilities of a relevant body be transferred to another relevant body specified in the order.

A relevant body is Pacific Power, an energy services corporation, the Ministerial Holding Corporation established under section 37B of the State Owned Corporations Act 1989 or any other person or body acting on behalf of the Crown.

An order under this clause may be made on such terms and conditions as are specified in the order.

Schedule 3 applies to a transfer of assets, rights and liabilities under this clause.

This clause does not affect the power under this Act to
make any other order to which Schedule 3 applies.
The clause expires on the fifth anniversary of the day on which it commences.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 2 Amendment of other Acts and regulations
Schedule 2 Amendment of other Acts and
regulations

(Section 4)

2.1 Electricity (Pacific Power) Act 1950 No 22
Section 7A Commission not to exercise transmission functions

Omit “the Electricity Transmission Authority” wherever occurring. Insert instead “TransGrid (or any other energy transmission operator under the Energy Services Corporations Act 1995)”.

2.2 Electricity Safety Act 1945 (1946 No 13)
Sections 4 ( 1 ) , 14A and 15 (2)

Omit “the Electricity Transmission Authority” wherever occurring. Insert instead “TransGrid (or any other energy transmission operator under the Energy Services Corporations Act 1995)”.

2.3 Electricity Supply Act 1995 No 94
Dictionary, definition of “TransGrid”
Omit the definition.
2.4 First State Superannuation Act 1992 No 100
Schedule 1 Employers
Omit “Electricity Transmission Authority” from Part 1.
Insert instead “TransGrid”.
Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68
Amendment of other Acts and regulations Schedule 2
2.5 Government and Related Employees Appeal Tribunal
Act 1980 No 39

Schedule 4 Employing authorities

Omit “Electricity Transmission Authority.”.

2.6 Independent Pricing and Regulatory Tribunal Act 1992
No 39
Schedule 1 Government agencies for which Tribunal has
[1 ]

standing reference

Omit “Electricity Transmission Authority”.
Insert instead “TransGrid” .

[2] Schedule 4, Part 3 National Electricity (New South Wales) Act

1997 (as inserted by Act No 20 of 1997)

Omit “the Electricity Transmission Authority” from clause 6.
Insert instead “TransGrid”.
2.7 National Electricity (New South Wales) Act 1997 No 20

Schedule 1 Amendment of Acts

[1 ]

Omit Schedule 1.4.

[2]        Schedule 1.6 [2] and [4]

Omit “Electricity Transmission Authority” from item [2] and “the lnsert instead “TransGrid” .

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 2 Amendment of other Acts and regulations

Schedule 2 Savings, transitional and other provisions

Insert “or by Schedule 2 to the Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998” after “this Act” in clause l (l).

Schedule 2, clause 1 (2) (a) and (3) (a)

Omit “as if this Act had not been enacted” wherever occurring.

Insert instead “as if it had not been repealed”.

Schedule 2, clause 1

Omit “the Electricity Transmission Authority” wherever occurring
(except in subclause (2) (a)).

Insert instead “TransGrid”.

Schedule 2, clause 2A
Insert after clause 2:
2A Transitional arrangements for termination of Funds

operated by Market System Operator

This clause applies to the System Control Fund, the Market Operations Fund and the Market Settlements
Fund established under Division 1 of Part 7 of the Electricity Supply Act 1995 immediately before the repeal of that Division by this Act.
Despite that repeal. any such Fund continues in existence and may be operated by any person designated by the Minister for the purpose of finalising arrangements for which it was established and for the purpose of its winding up.
The Minister may distribute any amount remaining to the
credit of any such Fund on its winding up in such
manner as the Minister considers appropriate.

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Amendment of other Acts and regulations Schedule 2
2.8 Occupational Health and Safety Amendment Act 1997
No 51
Schedule 3 Consequential amendment of other Acts
Omit Schedule 3.3.
2.9 Public Authorities (Financial Arrangements) Act 1987
No 33
Schedule 1 Authorities
Omit “Electricity Transmission Authority.”.
Insert in alphabetical order “TransGrid (or any other energy
transmission operator under the Energy Services Corporations Act
1995).”.
2.1 0 Public Authorities (Financial Arrangements) Regulation
1995
Schedule 3 Part 3 Investment powers
Omit “Electricity Transmission Authority”.
Insert in alphabetical order “TransGrid” .
2.11 Public Finance and Audit Act 1983 No 152
Schedule 2 Statutory bodies
Omit “Electricity Transmission Authority.”.
Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 NO 68
Schedule 2 Amendment of other Acts and regulations
2.12 Public Sector Executives Superannuation Act 1989
No 106
Schedule 1 Additional employers
Insert in alphabetical order:

TransGrid

2.13 Public Sector Management Act 1988 No 33
[1] Schedule 3 Declared authorities
Omit “Electricity Transmission Authority.”.
[2] Schedule 3A Chief executive positions

Omit “Chief Executive of the Electricity Transmission Authority” from Part 3.

[3] Schedule 3B Senior executive positions

Omit all the matter relating to the Electricity Transmission Authority from Part 1.

2.14 Rural Fires Regulation 1997
Clause 15 Eligibility for membership sf Bush Fire Management
Committee
Omit clause 15 (2).
Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68
Amendment of other Acts and regulations Schedule 2
2.1 5 Snowy Hydro Corporatisation Act 1997 No 99

Section 4 Definitions

Omit the definition of TransGrid from section 4 (1). Insert instead:

TransGrid means the energy transmission operator constituted by the Energy Services Corporations Act 1995 with the corporate name of TransGrid (or, if that name is varied under that Act, the varied name).

2.1 6 State Authorities Non-contributory Superannuation Act
1987 No 212
Schedule 1 Employers
Omit “Electricity Transmission Authority” from Part 1.
Insert instead “TransGrid” .
2.17 State Authorities Superannuation Act 1987 No 211
Schedule 1 Employers
Omit “Electricity Transmission Authority” from Part 1.
Insert instead “TransGrid” .

2.18 Superannuation Act 1916 No 28

Schedule 3 List of employers

Omit “Electricity Transmission Authority” from Part 1.

Insert instead “TransGrid” .

Energy Services Corporations Amendment (TransGrid Corporatisation) Act 1998 No 68

Schedule 2 Amendment of other Acts and regulations
2.1 9 Superannuation Administration (Electricity
Superannuation Scheme Transitional Provisions)
Regulation 1997
Schedule 1 Transferred employers
Omit “New South Wales Electricity Transmission Authority”.
Insert instead “TransGrid” .

[Minister’s second reading speech made in—

Legislative Assembly on 26 May 1998 Legislative Council on 24 June 1998]

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