National Electricity (Queensland) Law (Qld)

National Electricity (Queensland) Law

Editor’s note—

The National Electricity Law is applied (with modifications) as a law of Queensland by the Electricity—National Scheme (Queensland) Act 1997. This version is the Law as it applies in Queensland—see the Electricity—National Scheme (Queensland) Act 1997, section 6. It is intended a new reprint of the National Law will be prepared by the Office of the Queensland Parliamentary Counsel when any change in the National Law takes effect.

Part 1    Preliminary

1   Citation

This Law may be referred to as the National Electricity (Queensland) Law.

2   Definitions

(1)In this Law—

access determination means a determination of the AER under Part 10;

Australian Energy Regulator ...

Australian Energy Market Commission ...

access dispute has the meaning given by section 2A;

additional advisory functions—AEMO’s additional advisory functions are as set out in section 50B(1);

additional Minister initiated Rules means Rules made under Part 7 Division 2 (other than section 90) by the Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia;

adoptive jurisdiction means (according to context)—

(a)a participating jurisdiction for which AEMO is authorised to exercise its additional advisory functions; or

(b)a participating jurisdiction for which AEMO is authorised to exercise its declared network functions;

AEMC means the Australian Energy Market Commission established by section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia;

AEMC initiated Rule means a Rule of the kind referred to in section 91(2);

AEMO amendments means—

(a)the amendments to this Law made by the National Electricity (South Australia) (National Electricity Law—Australian Energy Market Operator) Amendment Act 2009; and

(b)the amendments to the Rules made by the National Electricity (South Australia) (National Electricity Rules—Australian Energy Market Operator) Amendment Rules 2009;

AER means the Australian Energy Regulator established by section 44AE of the Competition and Consumer Act 2010 of the Commonwealth;

AER economic regulatory decision means a decision (however described) of the AER under this Law or the Rules performing or exercising an AER economic regulatory function or power;

AER economic regulatory function or power means a function or power performed or exercised by the AER under this Law or the Rules (other than making a rate of return instrument) that relates to—

(a)the economic regulation of services provided by—

(i)a regulated distribution system operator by means of, or in connection with, a distribution system; or

(ii)a regulated transmission system operator or AEMO by means of, or in connection with, a transmission system; or

(b)the preparation of a network service provider performance report; or

(c)the making of a transmission determination or distribution determination; or

(d)an access determination;

Note—

The application of a rate of return instrument under this Law is an AER economic regulatory function or power. See section 18V(2).

AER market liquidity obligation functions means the functions conferred on the AER under section 15(1)(eba);

AER trial waiver functions means the functions conferred on the AER under Part 3 Division 1D;

AER wholesale market monitoring functions—the AER wholesale market monitoring functions are as set out in section 18C(1);

AER wholesale market reporting functions—the AER wholesale market reporting functions are as set out in section 18C(2);

annual turnover has the same meaning as in section 2(1) of Schedule 2 to the Competition and Consumer Act 2010 of the Commonwealth;

application Act means an Act of a participating jurisdiction that applies, as a law of that jurisdiction, this Law or any part of this Law;

associate in relation to a person has the same meaning it would have under Division 2 of Part 1.2 of the Corporations Act 2001 of the Commonwealth if sections 13, 16(2) and 17 did not form part of that Act;

augmentation of a transmission or distribution system means work to enlarge the system or to increase its capacity to transmit or distribute electricity;

augmentation connection agreement means an agreement for connecting an augmentation to a declared shared network;

Australian Energy Market Operator or AEMO means Australian Energy Market Operator Limited (ACN 072 010 327);

Note—

Before its change of name, AEMO was known as NEMMCO.

CDR data has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth;

CDR provisions has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth;

changeover date means 1 July 2009 or some other date fixed as the changeover date by Ministerial Gazette notice;

civil monetary liability means a liability for damages, compensation or any other monetary amount that can be recovered by way of civil proceedings but does not include a liability for a civil penalty or an infringement penalty under this Law or a liability for the costs of a proceeding;

civil penalty—see section 2AB;

civil penalty provision—see section 2AA(1);

conduct provision—see section 2AA(2);

connection service means a connection service within the meaning of the Rules;

constituent components, in relation to a relevant regulatory decision, means the matters that constitute the elements or components of the relevant regulatory decision and on which that relevant regulatory decision is based and includes—

(a)matters that go to the making of the relevant regulatory decision; and

(b)decisions made by the AER for the purposes of the relevant regulatory decision;

Court means—

(a)where this Law applies as a law of the Commonwealth, the Federal Court;

(b)where this Law applies as a law of a participating jurisdiction that is a State or a Territory, the Supreme Court of that jurisdiction;

data holder has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth;

derogation means a jurisdictional derogation or participant derogation;

declared network functions—AEMO’s declared network functions are as set out in section 50C(1);

declared power system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction;

declared shared network of an adoptive jurisdiction means the adoptive jurisdiction’s declared transmission system excluding any part of it that is a connection asset within the meaning of the Rules;

declared transmission system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction and includes any augmentation of the defined declared transmission system;

declared transmission system operator of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction;

designated energy sector means an energy sector designated under section 56AC of the Competition and Consumer Act 2010 of the Commonwealth;

direct control network service has the meaning given by section 2B;

Dispute resolution panel means a person or panel of persons appointed under the Rules to hear and determine a rule dispute;

distribution determination means a determination of the AER under the Rules that regulates any 1 or more of the following:

(a)the terms and conditions for the provision of electricity network services that are the subject of economic regulation under the Rules including the prices an owner, controller or operator of a distribution system charges or may charge for those services;

(b)the revenue an owner, controller or operator of a distribution system earns or may earn from the provision by that owner, controller or operator of electricity network services that are the subject of economic regulation under the Rules;

distribution reliability standard means a standard imposed by or under the Rules or jurisdictional electricity legislation relating to the reliability or performance of a distribution system;

distribution service standard means a standard relating to the standard of services provided by a regulated distribution system operator by means of, or in connection with, a distribution system imposed—

(a)by or under jurisdictional electricity legislation; or

(b)by the AER in accordance with the Rules;

distribution system means the apparatus, electric lines, equipment, plant and buildings used to convey or control the conveyance of electricity that the Rules specify as, or as forming part of, a distribution system and includes a regulated stand-alone power system to the extent provided by the Rules;

distribution system safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to—

(a)the safe distribution of electricity in that jurisdiction; or

(b)the safe operation of a distribution system in that jurisdiction;

draft Rule determination means a determination of the AEMC under section 99;

ECA amendments means the amendments to this Law made by the Statutes Amendment (Energy Consumers Australia) Act 2014 of South Australia;

effective competition, for Part 3 Division 1A—see section 18B;

electricity contract, for Part 3 Division 1A—see section 18A;

electricity network service means a service provided by means of, or in connection with, a transmission system or distribution system;

electricity services means services that are necessary or incidental to the supply of electricity to consumers of electricity, including—

(a)the generation of electricity;

(b)electricity network services;

(c)the sale of electricity;

end user means a person who acquires electricity for consumption purposes, and includes a retail customer;

Energy Consumers Australia or ECA means the company incorporated, or to be incorporated, by the name Energy Consumers Australia Limited;

energy ombudsman has the same meaning as in the National Energy Retail Law;

Energy Security Board means the Board established by the MCE on 14 July 2017 to provide the MCE with advice for the purposes of—

(a)whole-of-system oversight for energy security and reliability of the national electricity market; and

(b)improving long-term planning for the national electricity market;

Federal Court means the Federal Court of Australia;

final Rule determination means a determination of the AEMC under section 102;

financial risk management product, for Part 3 Division 1A—see section 18A;

form of regulation factors has the meaning given by section 2F;

general market information order means an order under section 53(1)(a) requiring information from persons of a class specified in the order;

general regulatory information order has the meaning given by section 28C;

initial National Electricity Rules means the National Electricity Rules made under section 90;

innovative trial principles—see section 7B;

interconnected national electricity system means the interconnected transmission and distribution system in this jurisdiction and in the other participating jurisdictions used to convey and control the conveyance of electricity to which are connected—

(a)generating systems and other facilities; and

(b)loads settled through the wholesale exchange operated and administered by AEMO under this Law and the Rules;

jurisdictional derogation means a Rule made at the request of a Minister of a participating jurisdiction that—

(a)exempts, in a specified case or class of cases, a person or a body performing or exercising a function or power, or conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or a class of such a person or body, or AEMO, from complying with a provision, or a part of a provision, of the Rules in the participating jurisdiction to which the derogation relates; or

(b)modifies or varies the application of a provision of the Rules (with or without substitution of a provision of the Rules or a part of a provision of the Rules) to a person or a body performing or exercising a function or power, or conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or a class of such a person or body, or AEMO, in the participating jurisdiction to which the derogation relates;

jurisdictional electricity legislation means an Act of a participating jurisdiction (other than national electricity legislation), or any instrument made or issued under or for the purposes of that Act, that regulates the generation, transmission, distribution, supply or sale of electricity in that jurisdiction;

jurisdictional regulator means—

(a)if this Law is applied as a law of the State of New South Wales—

(i)the Independent Pricing and Regulatory Tribunal of New South Wales established by section 5(1) of the Independent Pricing and Regulatory Tribunal Act 1992 of New South Wales; or

(ii)if the functions or powers of the Independent Pricing and Regulatory Tribunal of New South Wales under this Law are transferred to the AER by or under a law of New South Wales, the AER;

(b)if this Law is applied as a law of the State of Victoria—

(i)the Essential Services Commission established by section 7(1) of the Essential Services Commission Act 2001 of Victoria; or

(ii)if the functions or powers of that Essential Services Commission under this Law are transferred to the AER by or under a law of Victoria, the AER;

(c)if this Law is applied as a law of the State of Queensland—

(i)the Queensland Competition Authority established by section 7 of the Queensland Competition Authority Act 1997 of Queensland; or

(ii)if the functions or powers of the Queensland Competition Authority under this Law are transferred to the AER by or under a law of Queensland, the AER;

(d)if this Law is applied as a law of the State of South Australia—

(i)the Essential Services Commission established by section 4(1) of the Essential Services Commission Act 2002 of South Australia; or

(ii)if the functions or powers of that Essential Services Commission under this Law are transferred to the AER by or under a law of South Australia, the AER;

(e)if this Law is applied as a law of the Australian Capital Territory—

(i)the Independent Competition and Regulatory Commission for the Australian Capital Territory established by section 5(1) of the Independent Competition and Regulatory Commission Act 1997 of the Australian Capital Territory; or

(ii)if the functions or powers of the Independent Competition and Regulatory Commission for the Australian Capital Territory under this Law are transferred to the AER by or under a law of the Australian Capital Territory, the AER;

(f)if a person or body referred to in paragraphs (a) to (e) is abolished under an Act of a participating jurisdiction and another person or body is established under an Act of that participating jurisdiction with functions and powers that correspond to the functions and powers of the person or body referred to in paragraphs (a) to (e), that other person or body;

(g)if the functions and powers of a person or body referred to in paragraphs (a) to (e) are transferred to another person or body established under an Act of the relevant participating jurisdiction, that other person or body;

(h)any other person or body established under an Act of a participating jurisdiction that is prescribed by the Regulations as a jurisdictional regulator of that jurisdiction;

jurisdictional system security coordinator means a person appointed under section 110;

liable entity—see section 14D;

listed corporation has the meaning given by section 9 of the Corporations Act 2001 of the Commonwealth;

market information instrument means a general market information order or a market information notice;

market information notice means a notice under section 53(1)(b) requiring information from the person to whom the notice is addressed;

market liquidity obligation means the obligation imposed by Rules made under Schedule 1 item 6G and includes matters related to the obligation;

market monitoring information notice, for Part 3 Division 1A—see section 18EC;

market monitoring information order, for Part 3 Division 1A—see section 18EC;

MCE means the group of Ministers (constituting or forming part of a Ministerial Council, Standing Council of Ministers or similar body (however described)) responsible for energy matters at a national level comprising 9 Ministers as follows:

(a)1 Minister from the Commonwealth;

(b)1 Minister from each State (totalling 6 Ministers);

(c)1 Minister from each Territory (totalling 2 Ministers),

acting in accordance with its own procedures;

MCE directed review means a review conducted by the AEMC under Division 4 of Part 4;

MCE statement of policy principles means a statement of policy principles issued by the MCE under section 8;

Ministerial Gazette notice means a notice in the South Australian Government Gazette published by the South Australian Minister on the recommendation of the MCE;

Ministerial pilot metering determination means a determination made under section 118B;

Ministerial smart metering determination means—

(a)(Repealed)

(b)a Ministerial pilot metering determination;

Ministerial smart meter rollout determination ...

Minister of a participating jurisdiction means a Minister who is a Minister of a participating jurisdiction within the meaning of section 6;

monitored market, for Part 3 Division 1A—see section 18A;

National Electricity Code means the code of conduct called the National Electricity Code approved, in accordance with section 6(1) of the old National Electricity Law, as the initial Code for the purposes of that Law, and as amended from time to time in accordance with its terms and the old National Electricity Law;

national electricity legislation means—

(a)the National Electricity (South Australia) Act 1996 of South Australia and Regulations in force under that Act; and

(b)the National Electricity (South Australia) Law; and

(c)an Act of a participating jurisdiction (other than South Australia) that applies, as a law of that jurisdiction, any part of—

(i)the Regulations referred to in paragraph (a); or

(ii)the National Electricity Law set out in the Schedule to the Act referred to in paragraph (a); and

(d)the National Electricity Law set out in the Schedule to the Act referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia); and

(e)the Regulations referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia);

national electricity market means—

(a)the wholesale exchange operated and administered by AEMO under this Law and the Rules; and

(b)the national electricity system;

national electricity market objective ...

national electricity objective means the objective set out in section 7;

National Electricity Rules or Rules means—

(a)the initial National Electricity Rules; and

(ab)additional Minister initiated Rules; and

(b)Rules made by the AEMC under this Law, including Rules that amend or revoke—

(i)the initial National Electricity Rules or additional Minister initiated Rules; or

(ii)Rules made by it;

national electricity system means—

(a)the generating systems and other facilities owned, controlled or operated in the participating jurisdictions connected to the interconnected national electricity system; and

(b)the interconnected national electricity system; and

(c)regulated stand-alone power systems;

National Energy Retail Law means the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 of South Australia;

National Energy Retail Rules has the same meaning as in the National Energy Retail Law;

National Gas Law means the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008 of South Australia;

National Gas Rules has the same meaning as in the National Gas Law;

national transmission grid means the transmission systems that form part of the interconnected national electricity system;

National Transmission Planner means AEMO acting in the performance of NTP functions;

negotiated network service has the meaning given by section 2C;

NEMMCO means National Electricity Market Management Company Limited (ACN 072 010 327);

Note—

NEMMCO becomes AEMO (without change of corporate identity). A reference to NEMMCO is a reference to AEMO before its change of name.

network agreement means the agreement required by section 50D(1);

network revenue or pricing determination means a distribution determination or a transmission determination;

network service provider means a Registered participant registered for the purposes of section 11(2) that owns, controls or operates a transmission system or distribution system that forms part of the interconnected national electricity system or that owns, controls or operates a regulated stand-alone power system;

network service provider performance report means a report prepared by the AER under section 28V;

network service user means a user who is provided with an electricity network service;

NTP functions means the functions described in section 49(2);

offence provision means a provision of this Law the breach or contravention of which by a person exposes that person to a finding of guilt by a court;

officer has the same meaning as officer has in relation to a corporation under section 9 of the Corporations Act 2001 of the Commonwealth;

old National Electricity Law means the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia as in force from time to time before the commencement of section 12 of the National Electricity (South Australia) (New National Electricity Law) Amendment Act 2005 of South Australia;

participant derogation means a Rule made at the request of a person who is conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or AEMO, that—

(a)exempts, in a specified case or class of cases, that person or a class of person of which that person is a member, or AEMO, from complying with a provision, or a part of a provision, of the Rules, including a jurisdictional derogation; or

(b)modifies or varies the application of a provision of the Rules, including a jurisdictional derogation, (with or without substitution of a provision of the Rules or a part of a provision of the Rules) to that person or class of person of which that person is a member, or AEMO;

participating jurisdiction means a jurisdiction that is a participating jurisdiction within the meaning of section 5;

power system security means the safe scheduling and dispatch, and operation and control, of the national electricity system (other than regulated stand-alone power systems);

prospective network service user means a person who seeks or wishes to be provided with an electricity network service;

protected information has the meaning given by section 54(1);

rate of return instrument—see section 18I(2);

rebidding civil penalty provision ...

recognised energy industry ombudsman ...

Registered participant means a person who is registered as such by AEMO under this Law and the Rules or is registered as such by AEMO otherwise in accordance with the Rules;

regulated distribution system operator means an owner, controller or operator of a distribution system—

(a)who is a Registered participant; and

(b)whose revenue from, or prices that are charged for, the provision of electricity network services are regulated under a distribution determination;

regulated network service provider means—

(a)a regulated distribution system operator; or

(b)a regulated transmission system operator;

regulated stand-alone power system—see section 6B;

regulated transmission system operator means an owner, controller or operator of a transmission system—

(a)who is a Registered participant; and

(b)whose revenue from, or prices that are charged for, the provision of electricity network services are regulated under a transmission determination;

Regulations means the regulations made under Part 4 of the National Electricity (South Australia) Act 1996 of South Australia that apply as a law of this jurisdiction;

regulatory information instrument means a general regulatory information order or a regulatory information notice;

regulatory information notice has the meaning given by section 28D;

regulatory obligation or requirement has the meaning given by section 2D;

regulatory obligation ...

regulatory payment has the meaning given by section 2E;

relevant agreement, for Part 3 Division 1A—see section 18A;

relevant court means any court of this jurisdiction;

relevant regulatory decision means—

(a)a network revenue or pricing determination that specifies a period to be a regulatory period for the purposes of the determination; or

(b)any other determination (including a distribution determination or transmission determination) or decision of the AER that is prescribed by the Regulations to be a relevant regulatory decision,

but does not include a decision of the AER made under Part 3 Division 6;

reliability obligation civil penalty provision—see section 2AA(1a);

reliability obligations means the obligations that apply to a liable entity under sections 14P(1) and (3) and 14R(2);

relevant participant ...

Reliability Panel means the panel of persons established by the AEMC under section 38;

retail customer means a person to whom electricity is sold by a retailer, and supplied in respect of connection points, for the premises of the person, and includes a person (or a person who is of a class of persons) prescribed by the Rules for the purposes of this definition;

retailer means a person who is the holder of a retailer authorisation issued under the National Energy Retail Law in respect of the sale of electricity;

Retailer Reliability Obligation means—

(a)Part 2A of this Law; and

(b)the provisions of the Rules that relate to Part 2A of this Law;

revenue and pricing principles means the principles set out in section 7A;

reviewable regulatory decision ...

Rule dispute means a dispute between persons in relation to a matter or thing arising under the Rules in respect of which the Rules provide that the dispute must be resolved in accordance with the Rules;

shared network capability service means a service described in section 50D(1) as a shared network capability service;

shared transmission service means a service classified under the Rules as a shared transmission service;

smart meter amendments means the amendments to this Law made by section 5 of the National Electricity (South Australia) (Smart Meters) Amendment Act 2009 of South Australia;

statutory functions, in relation to AEMO, means functions or powers conferred under—

(a)this Law or the Rules; or

(b)the National Gas Law, the National Gas Rules, or related subordinate legislation;

superseded jurisdictional rules means—

(a)legislation (including subordinate legislation) of a participating jurisdiction regulating the electricity industry in that jurisdiction that—

(i)was in force immediately before the changeover date; and

(ii)is superseded by the AEMO amendments; and

(b)a licence condition governing the activities of the licensee in, or in relation to, an electricity market in a participating jurisdiction—

(i)in force immediately before the changeover date; and

(ii)superseded by the AEMO amendments; and

(c)a guideline, code, standard or other instrument governing the operation or regulation of an electricity market in a participating jurisdiction—

(i)made or issued by the jurisdictional regulator; and

(ii)in force immediately before the changeover date; and

(iii)superseded by the AEMO amendments;

Territory means the Australian Capital Territory or the Northern Territory;

transmission determination means a determination of the AER under the Rules that regulates any 1 or more of the following:

(a)the terms and conditions for the provision of electricity network services that are the subject of economic regulation under the Rules including the prices an owner, controller or operator of a transmission system charges or may charge for those services;

(b)the revenue an owner, controller or operator of a transmission system earns or may earn from the provision by that owner, controller or operator of electricity network services that are the subject of economic regulation under the Rules;

transmission reliability standard means a standard imposed by or under the Rules or jurisdictional electricity legislation relating to the reliability or performance of a transmission system;

transmission service standard means a standard relating to the standard of services provided by a regulated transmission system operator by means of, or in connection with, a transmission system imposed—

(a)by or under jurisdictional electricity legislation; or

(b)by the AER in accordance with the Rules;

transmission system means the apparatus, electric lines, equipment, plant and buildings used to convey or control the conveyance of electricity that the Rules specify as, or forming part of, a transmission system;

transmission system safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to—

(a)the safe transmission of electricity in that jurisdiction; or

(b)the safe operation of a transmission system in that jurisdiction;

trial project means a project—

(a)that—

(i)the AER is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial waiver for a trial project); or

(ii)the AEMC is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial Rule for the purposes of a trial project); and

(b)that tests an approach in relation to the supply of, or demand for, electricity;

trial Rule—see section 87;

trial waiver—see section 18ZL;

Tribunal means the Australian Competition Tribunal referred to in the Competition and Consumer Act 2010 of the Commonwealth and includes a member of the Tribunal or a Division of the Tribunal performing functions of the Tribunal;

user or consumer association ...

user or consumer interest group ...

VENCorp means the Victorian Energy Networks Corporation continued under Part 8 of the Gas Industry Act 2001 of Victoria until the AEMO amendments came into force.

wholesale electricity market means any wholesale market for electricity regulated under this Law and the Rules.

(2)A reference in this Law to an end user includes a reference to a prospective end user.

2A   Meaning of access dispute

An access dispute is—

(a)a dispute between a network service user (or prospective network service user) and a network service provider about an aspect of access to an electricity network service specified by the Rules to be an aspect to which Part 10 applies; or

(b)without limiting paragraph (a)—a dispute between a retail customer (or other person specified by the Rules) and a regulated distribution system operator about an aspect of access to a connection service specified by the Rules to be an aspect to which Part 10 applies.

2AA   Meaning of civil penalty provision and conduct provision

(1)A civil penalty provision is—

(a)a provision of this Law specified in the Table at the foot of this subsection; or

(ba)a reliability obligation civil penalty provision; or

(c)a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a civil penalty provision.

Table

Provision	Section heading
Section 11(1), (2), (3) and (4)	Electricity market activities in this jurisdiction
Section 14A	Regulated transmission system operator must comply with transmission determination
Section 14B	Regulated distribution system operator must comply with distribution determination
Section 14P(1) and (3)	Obligation to report net contract position
Section 18ZC(1) and (2)	Obligation of regulated entities to keep records
Section 18ZD	Obligation of regulated entities to provide information and data about compliance
Section 18ZF(1) and (3)	Compliance audits by regulated entities
Section 28N	Compliance with regulatory information notice that is served
Section 28O	Compliance with general regulatory information order
Section 50D(1)	Network agreement
Section 50F(1), (4) and (5)	Augmentation
Section 53C(3) and (4	Compliance with market information instrument
Section 136	Compliance with access determination
Section 157(1)	Preventing or hindering access

(1a)A reliability obligation civil penalty provision is section 14R(2).

(2)A conduct provision is a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a conduct provision.

2AB   Civil penalty amounts for breaches of civil penalty provisions

(1)Subject to this section, the civil penalty for a breach of a civil penalty provision is—

(a)in the case of a breach of a civil penalty provision, other than a provision prescribed under paragraph (b), (c) or (d)—

(i)if the breach is by a natural person—

(A)an amount not exceeding $33 900; plus

(B)an amount not exceeding $3 390 for every day during which the breach continues;

(ii)if the breach is by a body corporate—

(A)an amount not exceeding $170 000; plus

(B)an amount not exceeding $17 000 for every day during which the breach continues; or

(b)in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph—

(i)if the breach is by a natural person—

(A)an amount not exceeding $287 000; plus

(B)an amount not exceeding $14 400 for every day during which the breach continues;

(ii)if the breach is by a body corporate—

(A)an amount not exceeding $1 435 000; plus

(B)an amount not exceeding $71 800 for every day during which the breach continues; or

(c)in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph—

(i)if the breach is by a natural person—an amount not exceeding $500 000;

(ii)if the breach is by a body corporate—an amount not exceeding the greater of the following:

(A)$10 000 000;

(B)if the Court can determine the value of any benefit reasonably attributable to the breach of the civil penalty provision that the body corporate, and any body corporate related to the body corporate, has obtained, directly or indirectly—3 times the value of that benefit;

(C)if the Court cannot determine the value of the benefit—10% of the annual turnover of the body corporate during the 12-month period ending at the end of the month in which the body corporate breached, or began breaching, the civil penalty provision; or

(d)in the case of a breach of a reliability obligation civil penalty provision—

(i)if the breach is by a natural person—an amount not exceeding $1 435 000;

(ii)if the breach is by a body corporate—

(A)an amount not exceeding $1 435 000 for a breach that relates to a reliability gap period; or

(B)an amount that applies under paragraph (c)(ii), as if the reliability obligation civil penalty provision were prescribed by the Regulations for the purposes of paragraph (c), for a breach that relates to a second or subsequent reliability gap period.

Note—

See section 67A, which deals with conduct that constitutes a breach of a reliability obligation civil penalty provision on 2 or more occasions in relation to the same reliability gap period.

Note—

See Schedule 2 clause 37A, which provides for the amounts specified in this subsection to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER’s website.

(2)Subsection (1)(c)(ii)(B) or (C) will only apply in a particular case (including by operation of subsection (1)(d)(ii)(B)) if the AER, in applying for an order under section 61(2)(a), requests that those provisions be applied in that particular case.

2B   Meaning of direct control network service

A direct control network service is an electricity network service—

(a)the Rules specify as a service the price for which, or the revenue to be earned from which, must be regulated under a distribution determination or transmission determination; or

(b)if the Rules do not do so, the AER specifies, in a distribution determination or transmission determination, as a service the price for which, or the revenue to be earned from which, must be regulated under the distribution determination or transmission determination.

2C   Meaning of negotiated network service

A negotiated network service is an electricity network service—

(a)that is not a direct control network service; and

(b)that—

(i)the Rules specify as a negotiated network service; or

(ii)if the Rules do not do so, the AER specifies as a negotiated network service in a distribution determination or transmission determination.

2D   Meaning of regulatory obligation or requirement

(1)A regulatory obligation or requirement is—

(a)in relation to the provision of an electricity network service by a regulated network service provider—

(i)a distribution system safety duty or transmission system safety duty; or

(ii)a distribution reliability standard or transmission reliability standard; or

(iii)a distribution service standard or transmission service standard; or

(b)an obligation or requirement under—

(i)this Law or Rules; or

(ia)the National Energy Retail Law or the National Energy Retail Rules; or

(ii)an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that levies or imposes a tax or other levy that is payable by a regulated network service provider; or

(iii)an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that regulates the use of land in a participating jurisdiction by a regulated network service provider; or

(iv)an Act of a participating jurisdiction or any instrument made or issued under or for the purposes of that Act that relates to the protection of the environment; or

(v)an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act (other than national electricity legislation or an Act of a participating jurisdiction or an Act or instrument referred to in subparagraphs (ii) to (iv)), that materially affects the provision, by a regulated network service provider, of electricity network services that are the subject of a distribution determination or transmission determination.

(2)A regulatory obligation or requirement does not include an obligation or requirement to pay a fine, penalty or compensation—

(a)for a breach of—

(i)a distribution system safety duty or transmission system safety duty; or

(ii)a distribution reliability standard or transmission reliability standard; or

(iii)a distribution service standard or transmission service standard; or

(b)under this Law or the Rules, the National Energy Retail Law or the National Energy Retail Rules or an Act or an instrument referred to in subsection (1)(b)(ii) to (v).

Note—

1See also section 7A(2)(b).

2The RoLR cost recovery scheme is dealt with under Part 6 of the National Energy Retail Law.

2E   Meaning of regulatory payment

A regulatory payment is a sum that a regulated network service provider has been required or allowed to pay to a network service user or an end user for a breach of, as the case requires—

(a)a distribution reliability standard or transmission reliability standard; or

(b)a distribution service standard or transmission service standard,

because it was efficient for the regulated network service provider (in terms of the provider’s overall business) to pay that sum.

Note—

See also section 7A(2)(b).

2F   Form of regulation factors

The form of regulation factors are—

(a)the presence and extent of any barriers to entry in a market for electricity network services;

(b)the presence and extent of any network externalities (that is, interdependencies) between an electricity network service provided by a network service provider and any other electricity network service provided by the network service provider;

(c)the presence and extent of any network externalities (that is, interdependencies) between an electricity network service provided by a network service provider and any other service provided by the network service provider in any other market;

(d)the extent to which any market power possessed by a network service provider is, or is likely to be, mitigated by any countervailing market power possessed by a network service user or prospective network service user;

(e)the presence and extent of any substitute, and the elasticity of demand, in a market for an electricity network service in which a network service provider provides that service;

(f)the presence and extent of any substitute for, and the elasticity of demand in a market for, electricity or gas (as the case may be);

(g)the extent to which there is information available to a prospective network service user or network service user, and whether that information is adequate, to enable the prospective network service user or network service user to negotiate on an informed basis with a network service provider for the provision of an electricity network service to them by the network service provider.

2G   Related bodies corporate

For the purposes of this Law, 2 or more bodies corporate are related to each other if they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth.

3   Interpretation generally

Schedule 2 to this Law applies to this Law, the Regulations and the Rules and any other statutory instrument made under this Law.

4   Savings and transitionals

Schedule 3 to this Law has effect.

5   Participating jurisdictions

(1)The following jurisdictions are participating jurisdictions for the purposes of this Law—

(a)the State of South Australia; and

(b)the Commonwealth, a Territory or a State (other than South Australia) if there is in force, as part of the law of that jurisdiction, a law that applies this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Electricity (South Australia) Act 1996 of South Australia or by some other law).

(2)If a law of a participating jurisdiction referred to in subsection (1)(b) ceases to be in force, the jurisdiction ceases to be a participating jurisdiction.

(3)If, at any time, all participating jurisdictions agree that a specified jurisdiction will cease to be a participating jurisdiction on a specified date, the jurisdiction ceases to be a participating jurisdiction on that date.

(4)A notice must be published in the South Australian Government Gazette of the date on which a jurisdiction ceases to be a participating jurisdiction under subsection (2) or (3).

(5)If the legislature of a participating jurisdiction enacts a law that, in the unanimous opinion of the Ministers of the other participating jurisdictions, is inconsistent with this Law, those other participating jurisdictions may give notice to the Minister of the first-mentioned participating jurisdiction to the effect that, if the inconsistent law remains in force as an inconsistent law for more than 6 months after the notice is given, the other participating jurisdictions may declare that the jurisdiction has ceased to be a participating jurisdiction.

(6)A jurisdiction ceases to be a participating jurisdiction on publication in the South Australian Government Gazette of a declaration made by the Ministers of the other participating jurisdictions in accordance with subsection (5).

6   Ministers of participating jurisdictions

(1)The Ministers of the participating jurisdictions are—

(a)the Minister of the Crown in right of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia; and

(b)the Ministers of the Crown in right of the other participating jurisdictions administering the laws of those jurisdictions that apply this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Electricity (South Australia) Act 1996 of South Australia or by some other law).

6A   Nominated distributors

(1)The regulations under the application Act of a participating jurisdiction (a local regulation) may—

(a)nominate an entity, being an entity that is licensed or otherwise authorised under the jurisdictional electricity legislation of that jurisdiction to operate a distribution system but that is not a regulated distribution system operator (within the meaning of this Law) in respect of that distribution system, as an entity to which this section applies (the nominated distributor); and

(b)apply to the nominated distributor specified provisions of the Rules that relate to the following matters:

(i)the provision of connection services to retail customers;

(ii)retail support obligations between regulated distribution system operators and retailers;

(iii)credit support arrangements between regulated distribution system operators and retailers.

(2)The application of any such specified provisions of the Rules to the nominated distributor is subject to such modifications as may be specified in the local regulation.

(3)The nominated distributor—

(a)must comply with the Rules to the extent that the Rules are applied by the local regulation to the nominated distributor; and

(b)may, to the extent that the Rules apply to the nominated distributor, be proceeded against under this Law for any breach of those Rules.

(4)A nomination of an entity by a local regulation may be made for—

(a)the whole or a specified part of the geographical area of a jurisdiction; or

(b)the whole or a specified part of a distribution system that is owned, controlled or operated by the entity,

or for both.

(5)The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette.

6B   Regulated stand-alone power systems

(1)The regulations under the application Act of a participating jurisdiction (a local regulation) may provide that the following form part of the national electricity system (a regulated stand-alone power system):

(a)a particular stand-alone power system, which consists of a distribution system owned, controlled or operated, or proposed to be owned, controlled or operated, by a regulated distribution system operator;

(b)a stand-alone power system, which consists of a distribution system owned, controlled or operated, or proposed to be owned, controlled or operated, by a regulated distribution system operator, that belongs to a particular class of stand-alone power systems.

(2)Without limiting subsection (1), the local regulation may provide that a particular stand-alone power system, or a class of stand-alone power systems, forms part of the national electricity system by reference to—

(a)the particular geographic area in which the stand-alone power system, or class of stand-alone power systems, is or will be located; or

(b)the regulated distribution system operator that owns, controls or operates, or proposes to own, control or operate, the stand-alone power system or class of stand-alone power systems; or

(c)whether the stand-alone power system, or class of stand-alone power systems, complies with any requirements specified by the Rules.

(3)The local regulation may modify the application of a specified provision of this Law or the Rules for and with respect to a regulated stand-alone power system or a class of regulated stand-alone power systems.

(4)A regulated distribution system operator that owns, controls or operates a regulated stand-alone power system—

(a)must comply with the Rules to the extent that the Rules are applied by the local regulation to the regulated stand-alone power system; and

(b)may, to the extent that the Rules apply to the regulated stand-alone power system, be proceeded against under this Law for any breach of those Rules.

(5)The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette.

(6)In this section—

stand-alone power system means a system that—

(a)generates and distributes electricity; and

(b)does not form part of the interconnected national electricity system.

7   National electricity objective

The objective of this Law is to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to—

(a)price, quality, safety, reliability and security of supply of electricity; and

(b)the reliability, safety and security of the national electricity system; and

(c)the achievement of targets set by a participating jurisdiction—

(i)for reducing Australia's greenhouse gas emissions; or

(ii)that are likely to contribute to reducing Australia's greenhouse gas emissions.

Note—

The AEMC must publish targets in a targets statement: see section 32A.

7AA   Regulations may prescribe matters for national electricity objective

Without limiting Part 4 of the National Electricity (South Australia) Act 1996 of South Australia, the Regulations may make provision about a matter relating to the achievement of targets mentioned in section 7(c) of this Law.

7A   Revenue and pricing principles

(1)The revenue and pricing principles are the principles set out in subsections (2) to (7).

(2)A regulated network service provider should be provided with a reasonable opportunity to recover at least the efficient costs the operator incurs in—

(a)providing direct control network services; and

(b)complying with a regulatory obligation or requirement or making a regulatory payment.

(3)A regulated network service provider should be provided with effective incentives in order to promote economic efficiency with respect to direct control network services the operator provides. The economic efficiency that should be promoted includes—

(a)efficient investment in a distribution system or transmission system with which the operator provides direct control network services; and

(b)the efficient provision of electricity network services; and

(c)the efficient use of the distribution system or transmission system with which the operator provides direct control network services.

(4)Regard should be had to the regulatory asset base with respect to a distribution system or transmission system adopted—

(a)in any previous—

(i)as the case requires, distribution determination or transmission determination; or

(ii)determination or decision under the National Electricity Code or jurisdictional electricity legislation regulating the revenue earned, or prices charged, by a person providing services by means of that distribution system or transmission system; or

(b)in the Rules.

(5)A price or charge for the provision of a direct control network service should allow for a return commensurate with the regulatory and commercial risks involved in providing the direct control network service to which that price or charge relates.

(6)Regard should be had to the economic costs and risks of the potential for under and over investment by a regulated network service provider in, as the case requires, a distribution system or transmission system with which the operator provides direct control network services.

(7)Regard should be had to the economic costs and risks of the potential for under and over utilisation of a distribution system or transmission system with which a regulated network service provider provides direct control network services.

7B   Innovative trial principles

The following principles (the innovative trial principles) must be taken into account in determining whether a trial project is genuinely innovative in connection with granting a trial waiver or making a trial Rule relating to a trial project:

(a)whether the trial project is focused on developing new or materially improved approaches to the use or supply of, or demand for, electricity;

(b)whether the trial project is likely to contribute to the achievement of the national electricity objective;

(c)whether the trial project is able to demonstrate a reasonable prospect of giving rise to materially improved services and outcomes for consumers of electricity;

(d)whether the trial project maintains adequate consumer protections, including whether the trial project may involve risks to consumers and (if so), how those risks might be mitigated;

(e)whether the trial project is unable to proceed under the existing regulatory framework;

(f)whether the trial project has moved beyond research and development stages but is not yet established, or of sufficient maturity, size or otherwise commercially ready, to attract investment;

(g)whether the trial project may negatively impact AEMO’s operation of the national electricity system and national electricity market and, if there are impacts, how those impacts can be mitigated;

(h)whether the trial project may impact on competition in a competitive sector of the national electricity market;

(i)any other principle prescribed by the Regulations.

8   MCE statements of policy principles

(1)Subject to this section, the MCE may issue a statement of policy principles in relation to any matters that are relevant to the exercise and performance by the AEMC of its functions and powers in—

(a)making a Rule; or

(b)conducting a review under section 45.

(2)Before issuing a statement of policy principles, the MCE must be satisfied that the statement is consistent with the national electricity objective.

(3)As soon as practicable after issuing a statement of policy principles, the MCE must give a copy of the statement to the AEMC.

(4)The AEMC must publish the statement in the South Australian Government Gazette and on its website as soon as practicable after it is given a copy of the statement.

9   National Electricity Rules to have force of law

The National Electricity Rules have the force of law in this jurisdiction.

10   Application of this Law and Regulations to coastal waters of this jurisdiction

(1)This Law and the Regulations apply in the coastal waters of this jurisdiction.

Note—

The Rules apply in this jurisdiction by operation of this Law.

(2)In this section—

adjacent area has the same meaning as in the Petroleum (Submerged Lands) Act 1967 of the Commonwealth;

coastal waters of this jurisdiction means any sea that is on the landward side of the adjacent area of this jurisdiction but is not within the limits of this jurisdiction.

10A   Corporations Act displacement

(1)The Regulations may declare a relevant provision to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth in relation to the provisions of Chapter 5 of that Act.

(2)In this section—

relevant provision means a provision of the Rules that relates to any of the following:

(a)the application by AEMO of money in any security deposit fund;

(b)the functions of AEMO under procedures relating to defaults by retailers;

(c)the application (or drawing on) of credit support held by a regulated distribution system operator in respect of a retailer who is the subject of a RoLR event within the meaning of Part 6 of the National Energy Retail Law.

Part 2    Participation in the National Electricity Market

Division 1 Registration

11   Electricity market activities in this jurisdiction

(1)A person must not engage in the activity of owning, controlling or operating, in this jurisdiction, a generating system connected to the interconnected national electricity system or directly or indirectly connected to a regulated stand-alone power system unless—

(a)the person is a Registered participant in relation to that activity; or

(b)the person is the subject of a derogation that exempts the person, or is otherwise exempted by AEMO, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules.

Note—

Subsection (1) is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

(2)A person must not engage in the activity of owning, controlling or operating, in this jurisdiction, a transmission system or distribution system that forms part of the interconnected national electricity system or that forms part of, or is directly or indirectly connected to, a regulated stand-alone power system unless—

(a)the person is a Registered participant in relation to that activity; or

(b)the person is the subject of a derogation that exempts the person, or is otherwise exempted by the AER, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules.

Note—

Subsection (2) is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

(3)A person, other than AEMO, must not engage in the activity of operating or administering, in this jurisdiction, a wholesale exchange for electricity.

Note—

Subsection (3) is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

(4)A person must not engage in, in this jurisdiction, the activity of purchasing electricity directly through a wholesale exchange unless—

(a)the person is a Registered participant in relation to that activity; or

(b)the person is the subject of a derogation that exempts the person, or is otherwise exempted by AEMO, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules.

Note—

Subsection (4) is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

12   Registration or exemption of persons participating in national electricity market

(1)A person engaged or proposing to engage in an activity referred to in section 11(1), (2) or (4) may request AEMO to register that person as a Registered participant in relation to that activity for the purposes of this Law and the Rules.

(2)A person engaged or proposing to engage in an activity referred to in section 11(1) or (4) may request AEMO to exempt that person from registering as a Registered participant in relation to that activity for the purposes of this Law and the Rules.

(3)A request under subsection (1) or (2) must be in accordance with the Rules.

(4)On receipt of a request under subsection (1) to be registered as a Registered participant, AEMO may, subject to the Rules, register the person in such categories of registration as are specified in the Rules.

(5)On receipt of a request under subsection (2) to be exempted from being registered as a Registered participant, AEMO may, subject to the Rules, grant the person the exemption.

(6)Registration as a Registered participant under subsection (4) or an exemption granted under subsection (5) may be subject to such terms and conditions as AEMO considers appropriate in accordance with the Rules.

13   Exemptions for transmission system or distribution system owners, controllers and operators

(1)A person engaged or proposing to engage in the activity referred to in section 11(2) may request the AER to exempt that person from registering as a Registered participant in relation to that activity for the purposes of this Law and the Rules.

(2)A request under subsection (1) must be in accordance with the Rules.

(3)On receipt of a request under subsection (1), the AER may, subject to the Rules, grant the person the exemption.

(4)An exemption granted under subsection (3) may be subject to such terms and conditions as the AER considers appropriate in accordance with the Rules.

14   Evidence of registration or exemption

(1)A certificate signed by an authorised officer certifying that a person named in the certificate is a Registered participant, or has been granted an exemption from registration under section 12 or 13 is evidence of the registration or exemption.

Note—

A certificate may be in respect of a Registered participant registered in accordance with section 12 and the Rules, or in accordance with the Rules alone.

(2)In this section—

authorised officer means—

(a)for issuing a certificate that a person is a Registered participant or exempted from registration under section 12—AEMO’s CEO or a person authorised by AEMO’s CEO to issue certificates under this section; or

(b)for issuing a certificate that a person is exempted from registration under section 13—a member of the AER.

Division 2 Regulated network service providers

14A   Regulated transmission system operator must comply with transmission determination

A regulated transmission system operator must comply with a transmission determination that applies to the electricity network services provided by that operator.

Note—

Section 14A is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

14B   Regulated distribution system operator must comply with distribution determination

A regulated distribution system operator must comply with a distribution determination that applies to the electricity network services provided by that operator.

Note—

Section 14B is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

Part 2A    Retailer Reliability Obligation

Division 1 General

14C   Definitions

In this Part—

contract position day—see section 14K(4)(b)(i);

forecast reliability gap—see section 14G(1);

forecast reliability gap period—see section 14G(2);

Ministerial reliability gap and Ministerial reliability gap period—see section 14JA(1)(b);

net contract position—see section 14O(3);

one-in-two year peak demand forecast, for a region during a specified period, means the peak demand forecast in accordance with the Rules—

(a)to occur for the region during the period; and

(b)where the likelihood is that the forecast amount will be exceeded once in any two-year period;

peak demand, for a period in a region, means the maximum electricity demanded, in megawatts, in the region during the period, determined in accordance with the Rules;

region means a region of the national electricity market determined under the Rules;

reliability gap period, in relation to a T-1 reliability instrument, means the forecast reliability gap period stated in the instrument;

reliability instrument means a T-3 reliability instrument or a T-1 reliability instrument;

reporting day—see section 14K(4)(b)(ii);

T-1 cut-off day—see section 14G(4);

T-1 reliability instrument means a reliability instrument for a forecast reliability gap made by the AER under section 14K that relates to the T-1 cut-off day for the forecast reliability gap;

T-3 cut-off day—see section 14G(3);

T-3 reliability instrument means—

(a)a reliability instrument for a forecast reliability gap made by the AER under section 14K that relates to the T-3 cut-off day for the forecast reliability gap; or

(b)a reliability instrument for a Ministerial reliability gap period made by a Minister of a participating jurisdiction under section 14JA;

trading interval means a period prescribed by the Rules to be a trading interval for the wholesale exchange;

wholesale exchange means the wholesale exchange for electricity operated and administered by AEMO under this Law and the Rules.

14D   Meaning of liable entity for a region

(1)Each of the following is a liable entity for a region:

(a)a person who is a Registered participant mentioned in section 11(4)(a);

(b)a person mentioned in section 11(4)(b) prescribed by the Rules to be a liable entity for the reliability obligations;

(c)another person who has elected, under section 14E, to assume responsibility for the reliability obligations of a person mentioned in paragraph (a).

(2)However, a person mentioned in subsection (1)(a) is not a liable entity for a region—

(a)if the person is a Registered participant mentioned in subsection (1)(a) who is prescribed by the Rules not to be a liable entity for the reliability obligations; or

(b)to the extent a person mentioned in subsection (1)(c) has elected to assume the person’s responsibility for the reliability obligations for the region.

14E   Process for non-liable persons to opt in to reliability obligations

(1)This section applies to a person—

(a)if—

(i)the person purchases electricity supplied in a region from a liable entity; and

(ii)the person’s annual consumption of electricity is more than the threshold prescribed by the Rules for this section; or

(b)prescribed by the Rules to be eligible to make an election under this section.

(2)The person may elect to assume all or some of the liable entity’s responsibility for the reliability obligations in relation to the electricity purchased for the period stated in the election.

(3)An election under subsection (2) must—

(a)state the extent to which the person has elected to assume the liable entity’s responsibility; and

(b)be made in the manner, form and timeframes required by the Rules.

Division 2 Reliability forecasts and instruments

14F   Annual forecast for reliability gaps

Each year, AEMO must—

(a)perform the functions stated in the Rules for the purposes of forecasting for the occurrence of reliability gaps in future years; and

(b)prepare and publish, in the manner, form and timeframes required by the Rules, information about the forecasting.

14G   Meaning of forecast reliability gap, forecast reliability gap period, T-3 cut-off day and T-1 cut-off day

(1)A forecast reliability gap occurs when the amount of electricity forecast for a region, in accordance with the Rules, does not meet the reliability standard to an extent that, in accordance with the Rules, is material and a reference in this Part to a forecast reliability gap includes, where the context requires, a reference to a Ministerial reliability gap.

(2)A forecast reliability gap period is the period during which a forecast reliability gap is forecast to occur and a reference in this Part to a forecast reliability gap period includes, where the context requires, a reference to a Ministerial reliability gap period.

(3)The T-3 cut-off day for a forecast reliability gap is the day that is 3 years before the day the forecast reliability gap period for the forecast reliability gap starts.

(4)The T-1 cut-off day for a forecast reliability gap is the day that is 1 year before the day the forecast reliability gap period for the forecast reliability gap starts.

(5)In this section—

reliability standard means the standard prescribed by the Rules for the reliability of electricity for the national electricity market.

14H   Rules must provide timetable for reliability forecasts, requests and instruments

(1)The Rules must provide for timeframes for the following matters in relation to a forecast reliability gap:

(a)the period, that ends at least the stated number of days before the T-3 cut-off day and T-1 cut-off day, during which—

(i)AEMO must make a request under section 14I; and

(ii)the AER must decide whether to make a reliability instrument under section 14K;

(b)the period—

(i)ending on or before the T-1 cut-off day, during which the contract position day must be set; and

(ii)ending on or after the T-1 cut-off day, during which the reporting day must be set;

(c)the periods that apply for the matters mentioned in paragraph (a) or (b) if AEMO corrects a request under section 14J.

(2)Also, the Rules must provide for 1 or more ways to determine whether a request for the AER to make a T-1 reliability instrument under section 14I is related to a T-3 reliability instrument.

(3)For subsection (2), a prescribed way may include the extent to which the reliability gap period and trading intervals stated in a request for the AER to make a T-1 reliability instrument must be the same as, or may be different to, the forecast reliability gap period and trading intervals stated in the T-3 reliability instrument.

(4)In addition, for subsection (2), in the case of a T-3 reliability instrument made by a Minister of a participating jurisdiction, a prescribed way may include the extent to which the reliability gap period and trading intervals stated in a request for the AER to make a T-1 reliability instrument must be the same as, or may be different to, any Ministerial reliability gap period or trading intervals stated in the T-3 reliability instrument.

14I   AEMO must request reliability instrument

(1)This section applies if—

(a)AEMO is satisfied a forecast reliability gap is forecast to occur in a region; and

(b)AEMO has published the information about the forecast that AEMO is required to publish under section 14F(b).

(2)Subject to subsection (3), AEMO must request the AER to consider making a reliability instrument for the region in relation to the forecast reliability gap.

(3)AEMO must make a request under subsection (2) for a T-1 reliability instrument for a region only if the AER has made a related T-3 reliability instrument or the Minister of the participating jurisdiction in which the region is located has made a related T-3 reliability instrument.

(4)A request under subsection (2)—

(a)is made by giving a written notice about the request to the AER; and

(b)must be made within the period required by the Rules; and

(c)must state the following information about the forecast reliability gap:

(i)the region in which the forecast reliability gap is forecast to occur;

(ii)the first and last days of the forecast reliability gap period;

(iii)for a request for a T-3 reliability instrument—the trading intervals, during the forecast reliability gap period, for which liable entities may be required to hold net contract positions that are sufficient to meet their share of the one-in-two year peak demand forecast for the forecast reliability gap period;

Example—

The trading intervals between 4pm and 8pm each weekday during the forecast reliability gap.

(iv)for a request for a T-1 reliability instrument—the trading intervals, during the forecast reliability gap period, for which liable entities will be required to hold net contract positions that are sufficient to meet their share of the one-in-two year peak demand forecast for the forecast reliability gap period if the T-1 reliability instrument is made;

Example—

The trading intervals between 4pm and 8pm each weekday during the forecast reliability gap.

(v)AEMO’s one-in-two year peak demand forecast for the forecast reliability gap period.

(5)A request under subsection (2)—

(a)may only apply to 1 forecast reliability gap period; and

(b)may be made on more than 1 occasion in a year for different forecast reliability gap periods in the same region or in different regions.

14J   AEMO may correct request for reliability instrument

(1)This section applies if a request under section 14I contains—

(a)a material miscalculation of figures; or

(b)a material mistake in the description of a person, period, thing or matter referred to in the request; or

(c)a defect in form.

(2)AEMO may correct the request by giving a written notice about the correction, and a correct request, to the AER.

14JA   Minister may make T-3 reliability instrument

(1)Subject to this section, a Minister of a participating jurisdiction may make a T-3 reliability instrument for a region if—

(a)the geographical area of the participating jurisdiction constitutes the whole or a part of the region; and

(b)it appears to the Minister, on reasonable grounds, that there is a real risk during a period specified in the instrument (a Ministerial reliability gap period) that the supply of electricity to all or part of the region may be disrupted to a significant degree (a Ministerial reliability gap) on 1 or more occasions during the Ministerial reliability gap period.

(2)Before making a T-3 reliability instrument under subsection (1), the Minister must consult with AEMO and the AER in relation to the instrument the Minister proposes to make.

(3)The regulations under the application Act of a participating jurisdiction (a local regulation) may provide for requirements (including procedures and any methodology) that must be complied with by the Minister in determining whether there is a real risk that the supply of electricity to all or part of a region may be disrupted to a significant degree.

(4)A T-3 reliability instrument under subsection (1) must state—

(a)the date on which it takes effect; and

(b)the region to which it applies; and

(c)the first and last days of the Ministerial reliability gap period; and

(d)the trading intervals during the Ministerial reliability gap period for which liable entities may be required to hold net contract positions that are sufficient to meet their share of the one-in-two year peak demand forecast for the Ministerial reliability gap period; and

(e)AEMO’s one-in-two year peak demand forecast for the Ministerial reliability gap period.

(5)A Minister of a participating jurisdiction may vary or revoke a T-3 reliability instrument made by the Minister under subsection (1).

(6)As soon as practicable after making or varying a T-3 reliability instrument under this section, the relevant Minister must—

(a)publish a copy of the instrument or variation in accordance with any requirements of the local regulations; and

(b)publish notice of the making or variation of the instrument in the South Australian Government Gazette.

(7)The following provisions apply to a T-3 reliability instrument under subsection (1):

(a)the first day of a Ministerial reliability gap period specified in the instrument under subsection (4)(c) may not be earlier than 3 years after the day on which the instrument is made;

(b)despite any other provision of this Part, a T-3 reliability instrument under subsection (1) that relates to 1 or more days occurring in the period commencing on 1 December 2025 and ending on 31 December 2026 may be made at any time before 1 December 2023.

(8)The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette.

14K   AER may make reliability instrument for a region

(1)This section applies if—

(a)AEMO makes a request under section 14I in relation to a forecast reliability gap for a region; and

(b)where AEMO’s request is for a T-1 reliability instrument for the region, the AER has made a related T-3 reliability instrument or the Minister of the participating jurisdiction in which the region is located has made a related T-3 reliability instrument for the region.

(2)The AER must, within the period required by the Rules—

(a)consider the request; and

(b)decide whether or not to make a reliability instrument for the region in relation to the forecast reliability gap.

(3)The AER may decide to make a reliability instrument only—

(a)if the AER is satisfied—

(i)a forecast reliability gap is forecast, in accordance with the Rules, to occur in the region; and

(ii)it is appropriate in the circumstances, having regard to the criteria stated in the Rules, to make the reliability instrument; and

(b)for the region, forecast reliability gap period and trading intervals as stated in AEMO’s request, without modification.

(4)A reliability instrument must state—

(a)the information mentioned in section 14I(4)(c), as stated in AEMO’s request; and

(b)for a T-1 reliability instrument—

(i)the day (the contract position day) on which liable entities are required under section 14R to hold a sufficient net contract position for the reliability gap period; and

(ii)the day (the reporting day) on which liable entities must report their net contract position as at the contract position day under section 14P.

(5)The reliability instrument takes effect when it is published on the AER’s website.

(6)The AER must publish its decision to make or refuse to make a reliability instrument, and the reasons for the decision, on the AER’s website before—

(a)in the case of a T-3 reliability instrument—the T-3 cut-off day or an earlier day prescribed by the Rules; or

(b)in the case of a T-1 reliability instrument—the T-1 cut-off day or an earlier day prescribed by the Rules.

(7)If a request made under section 14I was corrected under section 14J, a reference in this section to the request is a reference to the request as corrected.

14L   Reliability instrument has force of law

(1)A reliability instrument has the force of law in this jurisdiction.

(2)An Act of this jurisdiction regulating the making of subordinate legislation does not apply to a reliability instrument.

14M   Failure to comply with consultation obligation does not affect validity

(1)This section applies if the Rules require the AER to undertake stated consultation before making a reliability instrument under section 14K.

(2)Failure to comply with the obligation does not invalidate or otherwise affect a reliability instrument.

Division 3 Reliability obligations

14N   Application of Division

(1)This Division applies to a person if—

(a)the AER made a T-1 reliability instrument for a forecast reliability gap in a region; and

(b)the person is a liable entity for the region to which the instrument applies; and

(c)the person is a liable entity on—

(i)the contract position day; or

(ii)in circumstances for which a later day is prescribed by the Rules—the later day.

(2)In this Division—

(a)a reference to a matter is a reference to the matter for the region to which the T-1 reliability instrument applies; and

(b)a reference to the reliability gap period is a reference to the forecast reliability gap period stated in the T-1 reliability instrument; and

(c)a reference to the stated trading intervals is a reference to the trading intervals stated in the T-1 reliability instrument; and

(d)a reference to the contract position day or the reporting day is a reference to the contract position day or reporting day stated in the T-1 reliability instrument.

14O   Meaning of qualifying contract and net contract position

(1)A qualifying contract of a liable entity is a contract or other arrangement to which the liable entity is a party—

(a)that—

(i)is directly related to the purchase or sale, or price for the purchase or sale, of electricity from the wholesale exchange during a stated period; and

(ii)the liable entity entered into to manage its exposure in relation to the volatility of the spot price; or

(b)of another type prescribed by the Rules to be a qualifying contract.

(2)However, a qualifying contract does not include a contract or arrangement mentioned in subsection (1)(a) that is prescribed by the Rules to be an excluded contract for the reliability obligations.

(3)A liable entity’s net contract position during a particular period is—

(a)the number of megawatts of electricity to which the liable entity’s qualifying contracts under subsection (1) relate for the period; and

(b)adjusted in accordance with the Rules to account for the likelihood that, despite the qualifying contracts, the liable entity retains exposure in relation to the volatility of the spot price during the period.

(4)In this section—

spot price means the price for electricity purchased from the wholesale exchange in a region determined in accordance with the Rules.

14P   Obligation to report net contract position

(1)The liable entity must give the AER a report about the liable entity’s net contract position for the stated trading intervals during the reliability gap period as at the contract position day—

(a)that complies with subsection (2); and

(b)on or before the reporting day stated in the T-1 reliability instrument.

Note—

Subsection (1) is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

(2)The report must—

(a)include the information required under the Rules; and

(b)be prepared and given in the manner and form required by the Rules.

(3)The liable entity must not provide information in a report the liable entity knows is false or misleading in a material particular.

Note—

Subsection (3) is a civil penalty provision: See the definition of “civil penalty provision” in section 2AA(1).

14Q   Adjustment of net contract position after contract position day

A liable entity may adjust the liable entity’s net contract position for a stated trading interval during a reliability gap period after the contract position day for the purposes of sections 14R and 14S in accordance with the Rules.

14R   Obligation to have contracted sufficiently for one-in-two year peak demand forecast

(1)This section applies if the peak demand is more than the one-in-two year peak demand forecast for the reliability gap period during a stated trading interval in the reliability gap period.

2   Saving of operation of old National Electricity Law

(1)Subject to this Schedule, the repeal of the old National Electricity Law does not—

(a)revive anything not in force or existing at the time the repeal takes effect; or

(b)affect the previous operation of the old National Electricity Law or anything suffered, done or begun under or in accordance with the old National Electricity Law; or

(c)affect a right, privilege or liability acquired, accrued or incurred under the old National Electricity Law; or

(d)affect a penalty incurred in relation to an offence arising under the old National Electricity Law or penalty incurred in relation to a breach of a provision of the National Electricity Code; or

(e)affect an investigation, proceeding or remedy in relation to such a right, privilege, liability or penalty.

(2)Subject to this Schedule, any such penalty may be imposed and enforced, and any such investigation, proceeding or remedy may be begun, continued or enforced, as if the old National Electricity Law had not been repealed.

Note—

The substitution of a Schedule to an Act repeals the Schedule.

Part 3    National Electricity Code changes

3   Current Code change and derogation proposals to be dealt with under this Law

(1)In this clause—

current Code change proposal means a proposed change to the National Electricity Code—

(a)that is not a derogation; and

(b)that NECA has not adopted and implemented in accordance with the National Electricity Code as at the commencement day;

current Code derogation proposal means an application for a derogation, or request for an extension of the period for which a derogation has been granted, that NECA has not granted in accordance with the National Electricity Code as at the commencement day;

derogation has the same meaning as in Chapter 10 of the National Electricity Code;

interested party means—

(a)a Code participant; or

(b)a person who is an interested party within the meaning of the National Electricity Code;

relevant Code change step means a requirement under the National Electricity Code that must be complied with for the purpose of—

(a)making a change to the National Electricity Code; or

(b)making a derogation or extending the period for which a derogation has been granted;

relevant Rule-making step means a requirement under a provision of Part 7 of this Law that the AEMC must comply with in the making of a Rule under that Part.

(2)Subject to this clause, on the commencement day every current Code change proposal is to be taken to be a request for the making of a Rule under Part 7 of this Law and may be made by the AEMC in accordance with that Part.

(3)Subject to this clause, on the commencement day every current Code derogation proposal is to be taken to be a request for the making of a participant derogation under Part 7 of this Law and may be made by the AEMC in accordance with that Part.

(4)The AEMC may decide to dispense, or not comply, with a relevant Rule-making step in respect of a current Code change proposal or current Code derogation proposal if it is of the opinion that the relevant Rule-making step duplicates or is consistent with a relevant Code change step that has already been taken under the National Electricity Code.

(5)On making a decision under subclause (4), the AEMC must publish a notice of that decision—

(a)in a newspaper circulating generally throughout Australia; and

(b)on its website.

Note—

A person aggrieved by a decision of the AEMC under subclause (4) may apply to the Court under section 70 for judicial review of the decision.

4   Current jurisdictional derogation proposals to be made under this Law

(1)In this clause—

current jurisdictional derogation change proposal means a change to a jurisdictional derogation in respect of which NECA has not published a notice of the change in accordance with clause 9.1.1(h) of the National Electricity Code;

jurisdictional derogation has the same meaning as in clause 9.1.1 of the National Electricity Code;

relevant jurisdictional derogation change step means a requirement under Chapter 9 of the National Electricity Code that must be complied with for the purpose of making a change to a jurisdictional derogation;

relevant Rule-making step means a requirement under a provision of Part 7 of this Law that the AEMC must comply with in the making of a Rule under that Part.

(2)Subject to this clause, on the commencement day, every current jurisdictional derogation change proposal is to be taken to be a request for the making of a jurisdictional derogation under Part 7 of this Law and may be made by the AEMC in accordance with that Part.

(3)The AEMC may decide to dispense, or not comply, with a relevant Rule-making step in respect of a current jurisdictional derogation change proposal if it is of the opinion that the relevant Rule-making step duplicates or is consistent with a relevant jurisdictional derogation change step that has already been undertaken under Chapter 9 of the National Electricity Code.

(4)On making a decision under subclause (3), the AEMC must publish a notice of that decision—

(a)in a newspaper circulating generally throughout Australia; and

(b)on its website.

Note—

A person aggrieved by a decision of the AEMC under subclause (3) may apply to the Court under section 70 for judicial review of the decision.

4A   Transitional arrangements relating to additional Minister initiated Rules

(1)This clause applies if the AEMC receives a request under section 91(1) for the making of a Rule that relates to a Rule that will be amended or revoked by an additional Minister initiated Rule before all of the additional Minister initiated Rules have come into operation.

(2)Despite anything to contrary in this Law, the AEMC may—

(a)if the request relates to a Rule that will be revoked by an additional Minister initiated Rule—refuse to take action under Part 7 of this Law in respect of that request; or

(b)if the request relates to a Rule that will be amended by an additional Minister initiated Rule—treat the request as a request for the making of a Rule that relates to the additional Minister initiated Rule.

(3)If the AEMC decides to act under this clause, the AEMC must, as soon as practicable after making the decision—

(a)inform the person or body that made the request of its decision; and

(b)give that person reasons in writing for that decision.

(4)Despite anything to the contrary in this Law, a request for a Rule in respect of which the AEMC has decided to refuse to take action under Part 7 of this Law must, on the date of that decision, be taken to have never been made.

Part 4    Registration

5   Code participants deemed to be Registered participants

A Code participant (other than NEMMCO) registered under the National Electricity Code immediately before the commencement day is, on that day, deemed to be—

(a)a Registered participant; and

(b)registered under this Law and the National Electricity Rules in the same category of registration as the category of registration that the Code participant was registered under National Electricity Code immediately before that day.

6   Exemptions

On the commencement day—

(a)an exemption given by NEMMCO under clause 2.2.1(c) of the National Electricity Code in force immediately before that day is deemed to be an exemption granted under section 12(5);

(b)an exemption granted by NECA under clause 2.5.1(d) of the National Electricity Code in force immediately before that day is deemed to be an exemption granted under section 13(3).

Part 5    References to the National Electricity Code and specific provisions or terms

7   References to the National Electricity Code

Unless the context otherwise requires, on and from the commencement day, every reference in a document (however described) to the National Electricity Code is deemed to be a reference to the National Electricity Rules.

8   References to provisions of the National Electricity Code

Unless the context otherwise requires, on and from the commencement day, every reference to a provision of the National Electricity Code in a document (however described) is deemed to be a reference to the provision of the National Electricity Rules that corresponds to that provision of the National Electricity Code.

9   References to Code participants

(1)Unless the context otherwise requires, on and from the commencement day, every reference in a document (however described) to a Code participant (other than NEMMCO) within the meaning of the old National Electricity Law is deemed to be a reference to a Registered participant.

(2)Unless the context otherwise requires, on and from the commencement day, every reference in a document (however described) to a Code participant (within the meaning of the old National Electricity Law) that is NEMMCO is deemed to be a reference to NEMMCO.

Part 6    Investigations and proceedings

10   Investigations into breaches and possible breaches of the Code

(1)On and from the commencement day, a NECA investigation may be conducted and completed by the AER in accordance with this Law, the Regulations and the Rules as if that investigation were commenced by the AER under this Law, the Regulations and the Rules.

(2)In this clause—

NECA investigation means an investigation into a breach or possible breach of the National Electricity Code by NECA under the old National Electricity Law and National Electricity Code that—

(a)has been commenced by NECA before the commencement day; and

(b)has not been completed by NECA before the commencement day.

10A   AER may conduct investigations into breaches or possible breaches of NEL not investigated by NECA

(1)Despite anything to the contrary in this Schedule, the AER may, on and from the new commencement day, conduct an investigation into a breach or possible breach of the National Electricity Code.

(2)In conducting an investigation referred to in subclause (1), the AER has all the functions, and may exercise all the powers, NECA had under the old National Electricity Law and National Electricity Code to conduct an investigation into a breach or possible breach of the National Electricity Code.

10B   AER may bring proceedings in relation to breaches of National Electricity Code in the Court

(1)In this clause—

AER breach investigation means an investigation conducted and completed by the AER in accordance with clause 10 or 10A.

(2)On and from the new commencement day, the AER may bring proceedings in the Court in respect of an AER breach investigation.

(3)Despite anything to the contrary in clause 2, for the purposes this clause, sections 17(1)(b) and 44 of the old National Electricity Law apply to a proceeding under this clause as if—

(a)a reference to the Tribunal were a reference to the Court; and

(b)a reference to NECA were a reference to the AER.

Part 7    Funds

11   Civil penalties fund

(1)On the commencement day, all money standing to the credit of the civil penalties fund immediately before that day vests in the AEMC.

(2)In this clause—

civil penalties fund has the same meaning as in section 66 of the old National Electricity Law.

Part 8    Other

12   Continuation of Reliability Panel

(1)On the commencement day—

(a)the persons appointed under clause 8.8 of the National Electricity Code, and comprising the Reliability Panel immediately before that day, are deemed to be the persons appointed to comprise the Reliability Panel established under section 38; and

(b)the Reliability Panel established under section 38 is deemed to be the same body as the Reliability Panel established under clause 8.8 of the National Electricity Code.

(2)However, despite anything to the contrary in the National Electricity Rules, the persons deemed to be appointed to comprise the Reliability Panel under subclause (1) must, unless they earlier resign from the Reliability Panel, cease to comprise the Reliability Panel on the day that is 6 months after the commencement day.

(3)To avoid doubt, each of the persons who cease to be appointed to comprise the Reliability Panel by operation of subclause (2), or earlier resign as contemplated by subclause (2), are eligible to be reappointed to the Reliability Panel in accordance with section 38 and the National Electricity Rules.

13   Jurisdictional system security coordinator

On the commencement day, the Jurisdictional Co-ordinator appointed by the Minister of this jurisdiction under clause 4.3.2(e) of the National Electricity Code is deemed to be appointed as the jurisdictional system security coordinator under section 110.

14   Rights under certain change of law provisions in agreements or deeds not to be triggered

(1)The repeal of the old National Electricity Law and the commencement of this Law and the initial National Electricity Rules is not to be regarded as a change of law (however defined) under any agreement or deed in effect on the commencement day.

Note—

The substitution of a Schedule to an Act repeals the Schedule.

(2)Subclause (1) applies despite any provision in any agreement or deed to the contrary.

15   Certain undertakings to cease effect on commencement day

(1)Any deed entered into by a Code participant for the purposes of clause 2.8.2 of the National Electricity Code and in effect immediately before the commencement day, ceases to have effect on that day.

(2)Subclause (1) does not affect a right, privilege or liability acquired, accrued or incurred under a deed referred to in that subclause, or under the National Electricity Code by force of a deed referred to in that subclause, except as otherwise provided by the Regulations.

Part 9    Tasmanian participation in the national electricity market

16   Jurisdictional derogations relating to Tasmania’s entry into national electricity market

(1)Despite anything to the contrary in this Law, the Regulations, the Rules or the Australian Energy Market Commission Establishment Act 2004 of South Australia, the Minister of the Crown in right of Tasmania nominated under section 6(2) may, in writing, direct the AEMC to make a jurisdictional derogation that is substantially the same as the changes to the National Electricity Code—

(a)authorised by the ACCC under Part VII of the Competition and Consumer Act 2010 of the Commonwealth in the determination of the ACCC entitled “Tasmanian Derogations and Vesting Contract –Tasmania’s NEM entry”, dated 14 November 2001; and

(b)in any determination of the ACCC varying the authorisation referred to in paragraph (a).

(2)The AEMC must, despite anything to the contrary in this Law, the Regulations, the Rules or the Australian Energy Market Commission Establishment Act 2004 of South Australia, make the jurisdictional derogation as soon as practicable after being given a direction under subclause (1).

(3)In making the jurisdictional derogation under subclause (2), the AEMC need not comply with Division 3 of Part 7 of this Law (other than sections 103(2), 104 and 105).

17   Definition of national electricity system to permit Tasmania to participate in national electricity market before commissioning of Basslink

(1)Despite anything to the contrary in this Law, the Regulations or the Rules, on and from the commencement day and until the relevant day, every reference in this Law, the Regulations or the Rules to the interconnected transmission and distribution system is to be read as including a reference to the interconnected transmission and distribution system in the State of Tasmania.

(2)The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia may, on being satisfied that Basslink will connect the electricity grids of the States of Tasmania and Victoria on a particular day, publish notice of that day in the South Australian Government Gazette.

(3)In this clause—

relevant day means the day notified under subclause (2);

Basslink has the same meaning as in the Electricity Supply Industry Act 1995 of Tasmania.

18   Operation and effect of Rule 6A.21.2 of the National Electricity Rules

Rule 6A.21.2 of the National Electricity Rules is deemed to have the same force and effect as it would have had if, at the time the Rule was made, section 34(3)(e) (as amended by section 28(2) of the National Electricity (South Australia) (National Electricity Law—Miscellaneous Amendments) Amendment Act 2007 of South Australia) were in force.

Part 10    Transitional provisions related to AEMO amendments

19   Definitions

In this Part—

AEMO T means Australian Energy Market Operator (Transitional) Ltd (ACN 132 770 104);

costs of transition means expenditure incurred by the Commonwealth, AEMO T, AEMO and the former electricity planning authorities in or in relation to—

(a)restructuring NEMMCO in anticipation of its assumption of a wider role (as AEMO); or

(b)preparing for AEMO’s assumption of its statutory functions;

current rules means the provisions of this Law and the Rules;

ESIPC means the Electricity Supply Industry Planning Council established under the Electricity Act 1996 of South Australia;

former electricity planning authority means—

(a)VENCorp; or

(b)ESIPC;

transitional special project expenditure means—

(a)expenditure incurred by NEMMCO in anticipation of its assumption (as AEMO) of its role as national transmission planner and expenditure incurred by AEMO in its role as national transmission planner during its first 3 years in that role; and

(b)expenditure incurred by NEMMCO in providing services to the national stakeholder steering committee for smart meters and expenditure incurred by AEMO in providing services to the national stakeholder steering committee for smart meters during the first 3 years after the changeover date.

20   Interaction between this Part and jurisdictional transitional arrangements

(1)This Part and any Regulations or Rules of a saving or transitional nature apply in a participating jurisdiction subject to any exclusions or qualifications made by or under an Act of the participating jurisdiction.

(2)In this clause—

Regulations or Rules of a saving or transitional nature means Regulations or Rules relating to the transition from the superseded jurisdictional rules to the current rules.

21   Recovery of costs of transition

(1)AEMO may recover the costs of transition as a component of the participant fees payable by Registered participants who are Market Customers.

(2)The costs of transition are to be recovered—

(a)over a period of 4 financial years from the changeover date; and

(b)in accordance with a schedule prepared by AEMO and published on its website.

(3)AEMO is not required to consult on the schedule.

22   Transitional special project expenditure

(1)AEMO may recover transitional special project expenditure as a component of the participant fees payable by Registered participants who are Market Customers.

(2)The expenditure is to be recovered—

(a)over a period of 4 financial years from the changeover date; and

(b)in accordance with a schedule prepared by AEMO and published on its website.

(3)AEMO is not required to consult on the schedule.

23   Interpretation of obsolete references

As from the day AEMO assumes responsibility for the operation of a market for electricity in a participating jurisdiction, references to the former operator of the market in an instrument (including a legislative instrument) relevant to the market are to be construed as references to AEMO.

Part 11    Application of National Energy Retail Law amendments

24   Application of National Energy Retail Law amendments

The amendments made to this Law by the Statutes Amendment (National Energy Retail Law) Act 2011 of South Australia do not apply in a participating jurisdiction until the National Energy Retail Law is applied in that jurisdiction as a law of that jurisdiction.

Part 12    Transitional provision related to ECA amendments

25   Transitional provision—AEMO’s consumer advocacy funding obligation

(1)AEMO may, until 30 June 2016, recover under this clause the amount of its consumer advocacy funding obligation under Rule 8.10 of the Rules (as in force immediately after the commencement of Rules made under section 90E of this Law) as a component of the participant fees payable by Registered participants who are Market Customers.

(2)AEMO’s consumer advocacy funding obligation is, despite anything to the contrary in the structure of participant fees determination, to be recovered under this clause in accordance with a schedule prepared by AEMO and published on its website.

(3)AEMO is not required to consult on the schedule.

(4)In this clause—

structure of participant fees determination means the Structure of Participant Fees in the National Energy Market Determination and Report, dated 21 March 2011 and applying for the period from 1 July 2011 to 30 June 2016.

Part 13    Information publication

26   Information publication

The release of information given to the AER or AEMO in confidence before the commencement of this clause will be subject to the provisions of this Law in force immediately before that commencement.

Part 14    Transitional provision related to AER wholesale market reporting functions

27   Transitional provision related to AER wholesale market reporting functions

(1)Despite section 18C(3)—

(a)the first report prepared under section 18C(2)(a) must relate to the period of 2 years after the relevant day; and

(b)the second report prepared under section 18C(2)(a) must relate to the period of 4 years after the relevant day.

(2)In this clause—

relevant day means the day on which this clause comes into operation.

Part 15    Transitional provision related to AEMC rule making powers

28   AEMC rule making powers

The amendment to section 96 of this Law by section 9 of the Statutes Amendment (National Energy Laws) (Rules) Act 2018 does not apply to the making of—

(a)a Rule on a request under section 91(1) of this Law received by the AEMC before the commencement of this clause; or

(b)an AEMC initiated Rule (within the meaning of section 87 of this Law) in respect of which the AEMC has, before the commencement of this clause, published notice of its intention to make.

Part 16    Transitional provisions for rate of return instrument

29   Definitions

In this Part—

2013 non-binding guideline means the guideline about determining the rate of return on capital issued by the AER in 2013;

review, of the 2013 non-binding guideline, means the review of the guideline started by the AER in 2017;

stakeholders means—

(a)regulated network service providers and consumer organisations; or

(b)network service users and prospective network service users; or

(c)any of the following persons the AER considers appropriate to give the AER advice or comment about the review of the 2013 non-binding guideline—

(i)persons engaged by a regulated network service provider, a consumer organisation or another entity to give the advice or comment;

(ii)other persons the AER considers have the qualifications or experience appropriate to give the advice or comment;

(d)other persons the AER considers have an interest in the review of the 2013 non-binding guideline.

30   Making first rate of return instrument if review not completed before commencement

(1)This clause applies if—

(a)the review of the 2013 non-binding guideline is not completed before the commencement of this clause; and

(b)the AER has sought advice or comment from stakeholders in relation to the review; and

(c)at least 3 months before making the first rate of return instrument, the AER has published on its website a draft of the proposed first rate of return instrument or proposed new non-binding guideline under the Rules; and

(d)the draft instrument or guideline has been reviewed by an independent panel consisting of at least 3 members with qualifications or experience the AER considers appropriate to conduct the review.

(2)Part 3 Division 1B Subdivision 3 does not apply in relation to making the first rate of return instrument.

(3)The independent panel mentioned in subclause (1)(d) must seek to give the AER a consensus report on the panel’s review.

(4)However, a failure to give the AER a consensus report does not affect the making of the first rate of return instrument.

31   Making first rate of return instrument if review completed before commencement

(1)This clause applies if, before the commencement of this clause—

(a)the review of the 2013 non-binding guideline was completed and a new non-binding guideline is in force under the Rules; and

(b)the AER sought advice or comment from stakeholders in relation to the review; and

(c)at least 3 months before making the new non-binding guideline, the AER published on its website a draft of the proposed new non-binding guideline; and

(d)the draft was reviewed by an independent panel consisting of at least 3 members with qualifications or experience the AER considered appropriate to conduct the review; and

(e)the independent panel gave the AER a report on the panel’s review.

(2)The new non-binding guideline is taken to be the first rate of return instrument on the commencement.

(3)For section 18U, the instrument is taken to have been published on the AER’s website on the commencement.

(4)The report mentioned in subclause (1)(e) need not be a consensus report on the panel’s review.

32   Application of this Law to particular decisions

(1)The amended Law applies in relation to an AER economic regulatory decision made after the commencement even if any action or process for making the decision started before the commencement.

(2)However, subclause (1) does not apply in relation to an AER economic regulatory decision made before the commencement that has been remitted back to the AER to make the decision again.

(3)In this clause—

amended Law means this Law as amended by the Statutes Amendment (National Energy Laws) (Binding Rate of Return Instrument) Act 2018;

commencement means the commencement of Part 3 Division 1B.

Part 17    Savings and transitional provisions related to Ministerial Council on Energy amendments

33   Definitions

In this Part—

Amendment Act means the Statutes Amendment (National Energy Laws) (Omnibus) Act 2021;

commencement day means the day on which section 5 of the Amendment Act comes into operation.

34   References to Ministerial Council on Energy

(1)On and from the commencement day, a reference to the Ministerial Council on Energy or MCE in an Act, a legislative instrument, any other kind of instrument, or a contract, agreement or other document will be taken to be a reference to the MCE as defined in section 2 (as amended by section 5 of the Amendment Act).

(2)In this clause—

agreement includes the Australian Energy Market Agreement or any other intergovernmental agreement to which this jurisdiction is a party.

35   Rights under certain change of law provisions in agreements or deeds not to be triggered

(1)The substitution of the definition of the MCE by section 5 of the Amendment Act is not to be regarded as a change of law (however defined) under any agreement or deed in effect on the commencement day.

(2)Subclause (1) applies despite any provision in any agreement or deed to the contrary.

36   Rights under contracts etc

(1)The substitution of the definition of the MCE by section 5 of the Amendment Act does not affect a right, obligation, liability or immunity of the MCE under an agreement, deed or other instrument entered into by the MCE and in effect on the commencement day.

(2)On and from the commencement day, a reference to the Ministerial Council on Energy or MCE in an agreement, deed or other instrument referred to in subclause (1) will be taken to be a reference to the MCE as defined in section 2 (as amended by section 5 of the Amendment Act).

(3)Subclause (1) applies despite any provision in any agreement, deed or other instrument to the contrary.

37   Saving of decisions etc

The substitution of the definition of the MCE by section 5 of the Amendment Act does not affect the validity of—

(a)any decision or direction made by the MCE before the commencement day; or

(b)any appointment in accordance with a recommendation or nomination of the MCE made before the commencement day.

Part 18    Transitional provisions related to national electricity objective amendments

38   Definitions

In this Part—

amended objective means the national electricity objective as in force on the commencement of this clause;

amending Act means the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Act 2023;

government or regulatory entity means—

(a)the AEMC, the Reliability Panel, the AER, the MCE, the Energy Security Board or another government entity; or

(b)AEMO, other than to the extent it is exercising a power or performing a function under this Law or the Rules as—

(i)a network service provider for a declared transmission system; or

(ii)a declared transmission system operator;

start day—see clause 39(2)(a).

39   When amended objective takes effect for particular matters

(1)This clause applies in relation to a thing required or permitted to be done under this Law by a person or body, other than the AEMC, if, in doing the thing, the person or body is required to consider or apply the national electricity objective including, for example, by—

(a)having regard to the national electricity objective; or

(b)doing the thing in a manner that will or is likely to contribute to the achievement of the national electricity objective.

(2)Despite section 4 of the amending Act—

(a)the national electricity objective as in force before that section came into operation continues to apply for the doing of the thing until the day (the start day) that is 2 months after the commencement of this clause; and

(b)the amended objective applies in relation to the doing of the thing from the start day.

(3)However, if the thing required or permitted to be done relates to a relevant revenue determination—

(a)on the commencement of this clause the amended objective applies to the doing of the thing; and

(b)clause 40(3) does not apply in relation to the doing of the thing.

(4)Subclauses (1) and (2) are subject to clause 40.

(5)In this clause—

relevant revenue determination means a revenue determination made under the Rules in relation to the following matters for the regulatory period 2024 to 2029:

(a)Ausgrid Operator Partnership ABN 78 508 211 731 for the distribution network supplying the Greater Sydney, Central Coast or Hunter Valley region of New South Wales;

(b)Endeavour Energy Network Operator Partnership ABN 11 247 365 823 for the distribution network in the Sydney Greater West, Blue Mountains, Southern Highlands, Illawaarra and South Coast regions of New South Wales;

(c)Essential Energy constituted under the Energy Services Corporations Act 1995 of New South Wales and specified in Part 2 of Schedule 1 of that Act;

(d)Evoenergy, the joint venture between Icon Distribution Investments Limited ACN 073 025 224 and Jemena Networks (ACT) Pty Ltd ACN 008 552 663 registered as a network service provider under section 12(1) of this Law for the distribution network in the Australian Capital Territory;

(e)Power and Water Corporation ABN 15 947 352 360 for the distribution network in the Northern Territory;

(f)Tasmanian Networks Pty Ltd ACN 167 357 299 for the distribution network and transmission network supplying Tasmania;

(g)a successor to the business of an entity mentioned in paragraphs (a) to (f).

40   Application of national electricity objective to particular matters in progress on start day

(1)This clause applies if—

(a)before the start day, a person or body had started, or was required or permitted to start, doing a thing under this Law; and

(b)on the start day—

(i)the person or body has not finished doing the thing; or

(ii)the period within which the thing is required or permitted to be done has not ended; and

(c)in doing the thing the person or body is required to consider or apply the national electricity objective by, for example—

(i)having regard to the national electricity objective; or

(ii)doing the thing in a manner that will or is likely to contribute to the achievement of the national electricity objective.

(2)The national electricity objective as in force before the commencement of this clause, and as continued under clause 39 until the start day, continues to apply in relation to the doing of the thing.

(3)However, a government or regulatory entity may decide to consider or apply the amended objective in relation to the doing of the thing.

(4)For subclause (1), the following matters are taken not to have been started, or required or permitted to have been started, before the start day:

(a)the making of a revenue determination under the Rules for a network service provider if, on the start day—

(i)for a transmission network service provider under the Rules—a revenue proposal has not yet been submitted under clause 6A.10.1(a) of the Rules; or

(ii)for a distribution network service provider under the Rules—a regulatory proposal has not yet been submitted under clause 6.8.2(a) of the Rules;

(b)the application of the regulatory investment test for transmission to an RIT-T project under the Rules, if a project assessment draft report for the RIT-T project has not yet been made available by the RIT-T proponent under clause 5.16.4(j) of the Rules or published under clause 5.16A.4(c) of the Rules before the start day;

(c)the application of the regulatory investment test for distribution to an RIT-D project under the Rules, if a draft project assessment report for the RIT-D project has not yet been published by the proponent under clause 5.17.4(i) of the Rules before the start day.

41   Administrative guidance about decisions under clause 40(3)

(1)If a government or regulatory entity, other than the AER, proposes to exercise a discretion under clause 40(3), the entity must use its best endeavours to ensure that within 45 days after the commencement of this clause, it issues administrative guidance about the matters the entity is likely to have regard to in deciding whether to consider or apply the amended objective in doing a thing.

(2)The AER must, within 45 days after the commencement of this clause, issue administrative guidance about the matters the AER is likely to have regard to in deciding whether to consider or apply the amended objective in doing a thing.

(3)A failure to comply with this section does not prevent a government or regulatory entity from exercising a discretion under clause 40(3).

42   Administrative guidance about value of greenhouse gas emissions

(1)This clause applies if—

(a)administrative guidance is issued by a government or regulatory entity about considering or applying the amended objective; and

(b)the guidance includes the value, or a method of working out the value, of greenhouse gas emissions or greenhouse gas emissions reduction; and

(c)the guidance is consistent with any MCE statement.

(2)The value or method stated in the administrative guidance must be complied with by the government or regulatory entity in considering or applying the amended objective.

(3)Subclause (4) applies in relation to a RIT-T project or RIT-D project under the Rules.

(4)Without limiting subclauses (1) and (2), if the AER issues the administrative guidance mentioned in subclause (1), the AER and RIT-D proponent or RIT-T proponent for the project under the Rules must comply with the administrative guidance in relation to the project.

(5)This clause applies until a Regulation or Rule takes effect for the matter described in subclause (1).

(6)In this clause—

MCE statement means a statement issued by the MCE that states the value, or a method of or guidance for working out the value, of greenhouse gas emissions or greenhouse gas emissions reduction, that is to be used by a government or regulatory entity in considering or applying the amended objective until a Regulation or Rule mentioned in subclause (5) takes effect.

43   Validation of things done in relation to Rules before commencement

(1)This clause applies if, before the commencement of this clause—

(a)the MCE or a Minister of a participating jurisdiction had requested a Rule under section 91(1) in relation to the national electricity objective as if the amended objective were in force; and

(b)the AEMC had done a thing under Part 7, other than sections 103 to 105, in relation to the request.

(2)On the commencement of this clause—

(a)the thing is taken to have been validly done under Part 7; and

(b)the AEMC is taken to have satisfied a requirement under the Law to apply the national electricity objective in relation to the thing.