National Electricity (Victoria) Amendment (VicGrid) Act 2024 (Vic)

National Electricity (Victoria) Amendment (VicGrid) Act 2024

No. 15 of 2024

TABLE OF PROVISIONS

Section  Page

Part 1—Preliminary

1Purpose

2Commencement

3Principal Act

Part 2—VicGrid amendments

4Definitions

5Regulations

6Order modifying regulatory arrangements relating to declared transmission system augmentations and related services

7Review of operation of Division 7 of Part 3

8New Part 6 inserted

Part 3—Landholder payments

9Regulations

10New Part 7 inserted

Part 4—Repeal of this Act

11Repeal of this Act

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Endnotes

1      General information

National Electricity (Victoria) Amendment (VicGrid) Act 2024

No. 15 of 2024

[Assented to 14 May 2024]

The Parliament of Victoria enacts:

PART 1—PRELIMINARY

1Purpose

The main purpose of this Act is to amend the National Electricity (Victoria) Act 2005 in relation to VicGrid.

2Commencement

(1)This Act (except Part 3) comes into operation on the day after the day on which this Act receives the Royal Assent.

(2)Subject to subsection (3), Part 3 comes into operation on a day or days to be proclaimed.

(3)If a provision of Part 3 does not come into operation before 5 March 2025, it comes into operation on that day.

3Principal Act

In this Act, the National Electricity (Victoria) Act 2005 is called the Principal Act.

PART 2—VICGRID AMENDMENTS

4Definitions

In section 3(1) of the Principal Act insert the following definition—

"CEO VicGrid means the person employed as the CEO VicGrid under section 52;".

5Regulations

After section 12A(2)(g) of the Principal Act insert—

"(ga)prescribing requirements for the purposes of section 57(4)(d);".

6Order modifying regulatory arrangements relating to declared transmission system augmentations and related services

(1)After section 16Y(2)(j) of the Principal Act insert—

"(ja)require the CEO VicGrid to assist AEMO in the performance of any of AEMO's functions specified in the Order;".

(2)After section 16Y(5) of the Principal Act insert—

"(6)For the purposes of an Order under subsection (1)—

(a)costs incurred by AEMO—

(i)in respect of a specified augmentation; or

(ii)in the provision of, or in acquiring or utilising, specified augmentation services or specified non-network services; or

(iii)as a result of the making of the Order or AEMO complying with a requirement of the Order—

include costs for the provision of assistance by the CEO VicGrid in respect of those matters; and

(b)the amount of those costs is the amount of the costs incurred by the CEO VicGrid in providing the assistance.".

7Review of operation of Division 7 of Part 3

In section 16ZI(3) of the Principal Act, for "2025" substitute "2026".

8New Part 6 inserted

After Part 5 of the Principal Act insert—

'PART 6—ELECTRICITY TRANSMISSION INFRASTRUCTURE PLANNING

Division 1—Preliminary

51Definitions

In this Part—

excluded area means an area declared to be an excluded area under section 54;

major electricity transmission infrastructure means infrastructure forming or intended to form part of the declared transmission system—

(a)operating or intended to operate at nominal voltages of 220kV or above; or

(b)operating or intended to operate at nominal voltages between 66kV and 220kV that is declared to be major electricity transmission infrastructure under section 54;

multi-criteria analysis means a methodology for evaluating qualitative economic, social, cultural and environmental factors as part of a process for determining where, when and how Victoria's electricity transmission network should develop;

renewable energy zone means an area declared in a renewable energy zone Order;

renewable energy zone Order means an Order made under section 63;

REZ planning function means a function specified in section 53(1)(a);

robustness analysis means an application of a range of plausible, high-impact scenarios and development pathways and the selection of the pathway that performs best across multiple system scenarios;

strategic land use assessment means an assessment that identifies suitable areas for siting infrastructure based on a range of technical, environmental, cultural, social and economic factors;

VicGrid fees and charges means fees and charges determined under section 66(1);

Victorian transmission plan—see section 59(1);

Victorian transmission plan guidelines means guidelines made under section 57;

Victorian transmission planning objective—see section 56(1).

Division 2—CEO VicGrid

52CEO VicGrid

There is to be a CEO VicGrid employed as an executive under Part 3 of the Public Administration Act 2004.

53Functions of CEO VicGrid

(1)The functions of the CEO VicGrid are—

(a)REZ planning functions, being—

(i)recommending to the Minister areas to be considered for declaration as renewable energy zones;

(ii)planning the development of major electricity transmission infrastructure within current or potential renewable energy zones to augment the declared shared network;

(iii)planning for the connection of major electricity transmission infrastructure to the declared shared network;

(iv)planning for the connection of generation and storage plant to major electricity transmission infrastructure within current or potential renewable energy zones—

through the preparation and publishing of a Victorian transmission plan and Victorian transmission plan guidelines; and

(b)any functions conferred on the CEO VicGrid by an Order under section 16Y; and

(c)to provide advice and information to the Minister; and

(d)any other functions conferred on the CEO VicGrid by or under this Act.

(2)In performing REZ planning functions, the CEO VicGrid—

(a)must have regard to the most recent—

(i)Integrated System Plan published by AEMO under clause 5.22.1 of the Rules; and

(ii)Victorian Annual Planning Report published by AEMO under clause 5.12.2 of the Rules; and

(iii)statement of opportunities published by AEMO under clause 3.13.3A of the Rules; and

(iv)gas statement of opportunities published by AEMO under section 91DA of the National Gas (Victoria) Law; and

(v)Victorian Gas Planning Report published by AEMO under rule 323 of the National Gas Rules; and

(b)may have regard to any other information that the CEO VicGrid considers relevant.

54Ministerial declarations

The Minister may, by notice published in the Government Gazette, declare—

(a)infrastructure operating or intended to operate at nominal voltages between 66kV and 220kV to be major electricity transmission infrastructure; and

(b)whether proposed major electricity transmission infrastructure is within a renewable energy zone; and

(c)whether proposed major electricity transmission infrastructure is necessary to facilitate connection of a renewable energy zone to the declared shared network; and

(d)an area of Victoria to be an excluded area.

55Delegation

The CEO VicGrid, by instrument, may delegate to a person employed under Part 3 of the Public Administration Act 2004 in the administration of this Part any function or power of the CEO VicGrid under this or any other Act or a subordinate instrument made under this or any other Act, other than this power of delegation.

Division 3—Victorian transmission planning objective

56What is the Victorian transmission planning objective?

(1)The Victorian transmission planning objective is, in relation to Victoria—

(a)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—

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

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

(b)the delivery of transmission services consistent with a least-regrets development pathway; and

(c)the achievement of targets set by Victorian legislation—

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

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

(2)In subsection (1)(b), a least-regrets development pathway means a process of selecting development pathways having regard to the risks associated with underinvestment or overinvestment in light of the uncertainties reflected across a range of scenarios.

Division 4—Victorian transmission plan guidelines

57Victorian transmission plan guidelines

(1)The CEO VicGrid must prepare and publish guidelines called Victorian transmission plan guidelines that—

(a)define a set of plausible, high-impact scenarios that establish the electricity system's 25-year investment needs consistent with Victorian energy policy objectives and market outlook; and

(b)include key inputs, sensitivities, methodologies and assumptions that will be considered as part of the making of the Victorian transmission plan, including the geographical area that will be analysed in the plan; and

(c)describe how the CEO VicGrid will consult stakeholders in the preparation of the Victorian transmission plan; and

(d)specify a transmission planning standard that will provide for certain detailed aspects of the Victorian transmission plan.

(2)The CEO VicGrid must—

(a)publish the Victorian transmission plan guidelines no later than 30 September 2024; and

(b)review the Victorian transmission plan guidelines, amend them if necessary, and publish the guidelines as amended no later than 31 August in the calendar year preceding the calendar year in which the CEO VicGrid is required to publish a Victorian transmission plan.

(3)In preparing or reviewing the Victorian transmission plan guidelines, the CEO VicGrid—

(a)must have regard to the Victorian transmission planning objective; and

(b)may undertake a strategic land use assessment; and

(c)may have regard to any other information that the CEO VicGrid considers relevant.

(4)Before publishing or amending the Victorian transmission plan guidelines, the CEO VicGrid must—

(a)issue a public notice, in accordance with subsection (5), inviting submissions to be made within a period of not less than 30 days specified in the notice; and

(b)cause a draft of the guidelines or amendment to be published on a website for the period specified in the notice under paragraph (a); and

(c)consider any submissions received within that period; and

(d)comply with any prescribed requirements.

(5)A notice under subsection (4)(a)—

(a)must be issued by publishing it—

(i)in the Government Gazette; and

(ii)on a website managed by the CEO VicGrid; and

(iii)on an approved alternative publication Internet site declared under section 38N of the Interpretation of Legislation Act 1984; and

(b)must give the address of the website on which the draft is published under subsection (4)(b).

(6)The CEO VicGrid must publish the Victorian transmission plan guidelines, as amended from time to time, on a website managed by the CEO VicGrid.

58Effect of Victorian transmission plan guidelines

(1)The CEO VicGrid must perform the CEO VicGrid's REZ planning functions in accordance with Victorian transmission plan guidelines unless the CEO VicGrid determines that the guidelines should not apply in any particular case.

(2)If the CEO VicGrid determines that the guidelines should not apply in any particular case, the CEO VicGrid must publish a statement of the reasons for so determining on a website managed by the CEO VicGrid.

Division 5—Victorian transmission plan

59What is a Victorian transmission plan?

(1)A Victorian transmission plan is a document setting out an optimal set of projects that address the planning and development needs over the following periods related to new major electricity transmission infrastructure to facilitate connection of renewable energy zones to the declared shared network—

(a)15 years for the first Victorian transmission plan;

(b)25 years for each subsequent Victorian transmission plan.

(2)A Victorian transmission plan must—

(a)identify areas for renewable energy zone development; and

(b)apply the scenarios defined in the Victorian transmission plan guidelines together with the relevant sensitivities to determine the need for generation and transmission development in the areas identified under paragraph (a); and

(c)include a viable 25-year plan for each scenario that integrates economic, social and environmental factors including least-cost system design, technical system requirements, strategic land use assessment and wider factors considered through a multi-criteria analysis to meet the need determined under paragraph (b); and

(d)identify a renewable energy pathway that will perform best under the relevant system scenario or multiple system scenarios; and

(e)include the specified projects, including non-network solutions, for the pathway identified under paragraph (d); and

(f)identify preferred corridors for renewable energy zone transmission projects to be developed in the first 10 years of the Victorian transmission plan.

(3)Subsection (2) does not apply to the first Victorian transmission plan.

60Preparing and publishing Victorian transmission plan

(1)The CEO VicGrid must prepare and publish a Victorian transmission plan as follows—

(a)the first plan must be published no later than 31 July 2025;

(b)the second plan must be published no later than 31 July 2027;

(c)a subsequent plan must be published no later than 31 July in the fourth calendar year following the publication of the previous plan.

(2)In preparing a Victorian transmission plan, the CEO VicGrid—

(a)must have regard to the Victorian transmission planning objective; and

(b)must undertake the following—

(i)a strategic land use assessment;

(ii)a multi-criteria analysis;

(iii)a robustness analysis;

(iv)a cost-benefit analysis; and

(c)must have regard to the results of the assessment and analyses undertaken under paragraph (b); and

(d)must undertake any consultation required by the Victorian transmission plan guidelines and consider the results of that consultation; and

(e)may have regard to any other information that the CEO VicGrid considers relevant.

(3)The CEO VicGrid must publish a Victorian transmission plan on a website managed by the CEO VicGrid.

61Updating Victorian transmission plan

(1)The CEO VicGrid may review and update the current Victorian transmission plan if the CEO VicGrid considers there has been a material change to the key assumptions and forecasts underlying the plan.

(2)An update must include any new information or revised assumptions and the impact of those on the plan.

(3)The CEO VicGrid must publish an update on a website managed by the CEO VicGrid.

62AEMO and service providers to have regard to Victorian transmission plan

(1)In preparing each of the following, AEMO must have regard to the current Victorian transmission plan—

(a)an Integrated System Plan under clause 5.22.1 of the Rules;

(b)a Victorian Annual Planning Report under AEMO's declared network functions in Victoria;

(c)a statement of opportunities under clause 3.13.3A of the Rules;

(d)a gas statement of opportunities under section 91DA of the National Gas (Victoria) Law.

(2)A Transmission Network Service Provider (within the meaning of the Rules) must have regard to the current Victorian transmission plan in performing functions under clause 5.12 of the Rules.

(3)A Distribution Network Service Provider (within the meaning of the Rules) must have regard to the current Victorian transmission plan in performing functions under clause 5.13 of the Rules.

Division 6—Renewable energy zones

63Declaration of renewable energy zones

(1)The Minister, by Order published in the Government Gazette, may declare an area of Victoria as a renewable energy zone.

(2)A renewable energy zone Order must set out—

(a)the boundaries of the renewable energy zone, including a map of the zone; and

(b)the preferred transmission corridor—

(i)within the renewable energy zone; and

(ii)between the renewable energy zone and the declared transmission system; and

(c)intended transmission hosting capacity within the renewable energy zone; and

(d)engagement requirements and expectations of project proponents during project development.

(3)A renewable energy zone Order may contain any other matters the Minister considers appropriate.

(4)The Minister must publish in the Government Gazette the Minister's reasons for making a renewable energy zone Order at the same time as the Order is published in the Government Gazette.

64Procedure for making renewable energy zone Order

(1)Before making a renewable energy zone Order, the Minister must—

(a)cause to be published on a website managed by the Department—

(i)a draft of the Order; and

(ii)a notice inviting submissions to be made within a period of not less than 6 weeks specified in the notice; and

(b)consider any submissions received within the period specified under paragraph (a)(ii); and

(c)consult the Premier and the Treasurer.

(2)In making a renewable energy zone Order, the Minister—

(a)must have regard to—

(i)the Victorian transmission planning objective; and

(ii)the current Victorian Transmission Plan; and

(b)may have regard to any other information that the Minister considers relevant.

65Publication of renewable energy zone Order and statement of reasons

As soon as practicable after a renewable energy zone Order is published in the Government Gazette, the Minister must cause to be published on a website managed by the Department—

(a)the Order; and

(b)the Minister's reasons for making the Order; and

(c)a summary of submissions received within the period specified under section 64(1)(a)(ii).

Division 7—Cost recovery

66Fees and charges for REZ planning functions

(1)The CEO VicGrid may determine fees and charges for performing REZ planning functions.

(2)Before determining fees and charges under subsection (1), the CEO VicGrid must consult the Premier, the Treasurer and the Minister.

(3)The CEO VicGrid must publish VicGrid fees and charges on a website managed by the CEO VicGrid.

67Recovery of fees and charges

(1)VicGrid fees and charges may be recovered by the CEO VicGrid, subject to, and in accordance with, Chapter 6A of the Rules as modified by this section.

(2)For the purposes of subsection (1)—

(a)the performance by the CEO VicGrid of REZ planning functions is taken to be the provision of prescribed common transmission services and VicGrid fees and charges are to be recovered through prices for those services; and

(b)costs incurred by AEMO are taken to include VicGrid fees and charges; and

(c)AEMO must pay amounts it collects in respect of VicGrid fees and charges to the CEO VicGrid; and

(d)clause S6A.4.2(c)(4)(ii) of the Rules applies as if—

(i)the words "in the same regulatory year" were omitted; and

(ii)after the words "prescribed shared transmission services" the words "and the carrying out of its declared network functions" were inserted; and

(e)VicGrid fees and charges form part of AEMO's maximum allowed revenue for the purposes of clause S6A.4.2(c)(4) of the Rules; and

(f)clause S6A.4.2(f)1.(b)(1) of the Rules applies as if after the words "prescribed shared transmission services" the words "and the carrying out of its declared network functions" were inserted; and

(g)despite anything to the contrary in the Rules—

(i)AEMO may publish amended prices for prescribed shared transmission services for the regulatory year that commenced on 1 January 2024 to take effect from 1 July 2024 to include VicGrid fees and charges; and

(ii)AEMO may amend its revenue methodology for the regulatory year that commenced on 1 January 2024 and each subsequent regulatory year to include VicGrid fees and charges; and

(iii)AEMO is not required to consult the public in respect of any amendment that is required to its revenue methodology to provide for VicGrid fees and charges.

(3)The regulations may make any further modifications to the Rules that are necessary to enable the CEO VicGrid to recover VicGrid fees and charges.

Division 8—General

68Co-operation between AEMO and CEO VicGrid

(1)AEMO and the CEO VicGrid must co‑operate in the performance of—

(a)AEMO's declared network functions under section 50C of the National Electricity (Victoria) Law; and

(b)the CEO VicGrid's functions under this Act.

(2)Without limiting subsection (1)—

(a)AEMO must give the CEO VicGrid any information in AEMO's possession or control that the CEO VicGrid reasonably requests for the purpose of performing the CEO VicGrid's functions; and

(b)the CEO VicGrid must give AEMO any information in the CEO VicGrid's possession or control that AEMO reasonably requests for the purpose of performing AEMO's functions; and

(c)AEMO and the CEO VicGrid must not perform their respective functions in a way that may adversely affect transmission hosting capacity within a renewable energy zone.

(3)Nothing in subsection (2)(c) affects or takes away from AEMO's function under section 49(1)(e) of the National Electricity (Victoria) Law to maintain and improve power system security.

(4)For the purposes of section 54C(1) of the National Electricity (Victoria) Law, subsection (2) requires or permits the disclosure by AEMO of protected information within the meaning of section 54(1) of that Law.'.

PART 3—LANDHOLDER PAYMENTS

9Regulations

Before section 12A(2)(h) of the Principal Act insert—

"(gb)applications for eligibility under Part 7;

(gc)processes and requirements for making any payments or giving notice under Part 7;

(gd)processes and requirements for payments between the transferor and transferee of interests in land that are subject to relevant transmission interests for the purposes of Part 7;".

10New Part 7 inserted

Before the Schedules to the Principal Act insert—

"PART 7—LANDHOLDER PAYMENTS

Division 1—Preliminary

69Definitions

In this Part—

eligible person means a person that—

(a)the CEO VicGrid determines under section 70(3)(a) is eligible to receive payments under Division 2; or

(b)the Minister determines under section 75(3)(a) is eligible to receive payments under Division 3;

initial payment means a payment under section 71 or 76;

public land means the following—

(a)land under the Crown Land (Reserves) Act 1978, other than land under the Alpine Resorts Act 1983;

(b)land in any park within the meaning of the National Parks Act 1975;

(c)reserved forest within the meaning of the Forests Act 1958;

(d)unreserved Crown land under the Land Act 1958;

(e)land in any Nature Reserve or State Wildlife Reserve, within the meaning of the Wildlife Act 1975, other than land in a State Game Reserve (within the meaning of that Act);

Register of land has the same meaning as Register in the Transfer of Land Act 1958;

registration in relation to a relevant transmission interest subsisting in land other than public land, means the making of a recording on a folio of the Register of land to the effect that land described in that folio is subject to the relevant transmission interest;

relevant transmission interest means a prescribed interest in land, or a prescribed right with respect to land, that is held by a transmission company for the purposes of accessing or operating infrastructure or equipment that forms part of, or is necessary for the operation of, a transmission system;

subsequent payment means a payment under section 73 or 77;

transmission company means—

(a)a transmission company within the meaning of the Electricity Industry Act 2000; or

(b)a person that—

(i)owns, controls or operates a transmission system within the meaning of the Rules; and

(ii)is exempted by Order under section 17 of the Electricity Industry Act 2000 from the requirement to obtain a licence under Part 2 of that Act in respect of that ownership, control or operation.

Division 2—Land other than public land

70Determination of eligibility

(1)A person may apply to the CEO VicGrid for a determination that the person is eligible to receive payments under this Division in relation to a relevant transmission interest if—

(a)the person holds a prescribed interest in land other than public land; and

(b)that land is subject to the relevant transmission interest.

(2)An application under subsection (1) must—

(a)be in the prescribed form; and

(b)contain any prescribed information.

(3)On receiving an application under subsection (1), the CEO VicGrid must either—

(a)determine that the person is eligible to receive payments under this Division in relation to the relevant transmission interest; or

(b)determine that the person is not eligible to receive payments under this Division in relation to the relevant transmission interest.

(4)In making a determination under subsection (3), the CEO VicGrid—

(a)must consider any prescribed matters; and

(b)may take into account any other matter that the CEO VicGrid considers appropriate.

(5)A determination under subsection (3) must—

(a)be made—

(i)within the prescribed period; or

(ii)if no period is prescribed, within 3 months after the CEO VicGrid receives the application; and

(b)set out any prescribed information.

(6)Unless circumstances prescribed for the purposes of this subsection apply, a person ceases to be an eligible person in relation to a relevant transmission interest if—

(a)the land in which the person's interest subsists ceases to be subject to the relevant transmission interest; or

(b)the person ceases to hold the interest in land.

(7)Without limiting subsection (6)(a), land does not cease to be subject to a relevant transmission interest solely because the relevant transmission interest to which the land is subject is assigned or transferred to another transmission company.

(8)If a person ceases to be an eligible person in relation to a relevant transmission interest under subsection (6), the person must notify the CEO VicGrid, or any person nominated by the CEO VicGrid—

(a)in writing within 15 business days after the person ceases to be an eligible person; and

(b)in accordance with any guidelines under section 79(2).

(9)Nothing in this section prevents a person applying under subsection (1) in relation to a prescribed interest in land created by a subdivision of that land.

71Initial payment

(1)Subject to sections 81 and 82, the CEO VicGrid must ensure that an initial payment is made, in accordance with the regulations, to an eligible person in relation to the relevant transmission interest of either—

(a)an amount calculated in accordance with section 72; or

(b)if the CEO VicGrid considers that exceptional circumstances exist, an amount greater than the amount described in paragraph (a) calculated in accordance with any guidelines made under section 79(1)(b).

(2)In determining whether exceptional circumstances exist for the purposes of subsection (1)(b), the CEO VicGrid—

(a)must have regard to any guidelines made under section 79(1)(a); and

(b)may take into account any other matter that the CEO VicGrid considers appropriate.

(3)The CEO VicGrid must ensure that a payment to an eligible person under subsection (1) is made—

(a)if a day is prescribed for the purposes of this subsection, on or before that day; or

(b)if no day is prescribed for the purposes of this subsection, on or before the day that is 3 months after the day on which the determination of the person's eligibility is made under section 70(3)(a).

72Calculation of initial payment

(1)An initial payment under section 71 must be calculated in accordance with the formula—

where—

Iis the amount in dollars to be paid to the eligible person;

Wis—

(a)in the case of a relevant transmission interest that has a width of 100 metres or less—8000; or

(b)in the case of a relevant transmission interest that has a width of more than 100 metres—16 000;

Lis the length in kilometres of the relevant transmission interest.

(2)For the purposes of subsection (1)—

(a)the width of the relevant transmission interest must be measured at the widest part of that interest; and

(b)if the length of the relevant transmission interest is less than 0∙1 kilometres, L is taken to be 0∙1 kilometres.

73Subsequent payments

(1)Subject to sections 81 and 82, the CEO VicGrid, for each relevant year, must ensure that a payment is made, in accordance with the regulations, to an eligible person in relation to the relevant transmission interest of either—

(a)an amount calculated in accordance with section 74; or

(b)if the CEO VicGrid considers that exceptional circumstances exist, an amount greater than the amount described in paragraph (a) calculated in accordance with any guidelines made under section 79(1)(b).

(2)In determining whether exceptional circumstances exist for the purposes of subsection (1)(b), the CEO VicGrid—

(a)must have regard to any guidelines made under section 79(1)(a); and

(b)may take into account any other matter that the CEO VicGrid considers appropriate.

(3)The CEO VicGrid must ensure that a payment to an eligible person under subsection (1) is made—

(a)if a day is prescribed for the purposes of this subsection, on or before that day; or

(b)if no day is prescribed for the purposes of this subsection, on or before the day of the relevant year that is the anniversary of the registration of the relevant transmission interest.

(4)In this section—

relevant year means—

(a)the year beginning on the first anniversary of the registration of the relevant transmission interest; and

(b)each subsequent year for a period of 23 years.

74Calculation of subsequent payments

A payment under section 73 for a relevant year must be calculated in accordance with the formula—

where—

Sis the amount in dollars to be paid to the eligible person;

CPIiis the all groups consumer price index for Melbourne in original terms for the last reference period in the preceding relevant year most recently published by the Australian Bureau of Statistics;

CPIiiis the all groups consumer price index in original terms for Melbourne for the corresponding reference period one year earlier than the reference period referred to in CPIi most recently published by the Australian Bureau of Statistics;

Pis the amount paid to the eligible person under section 71 or 73 (as appropriate) for the previous relevant year.

Division 3—Public land

75Determination of eligibility—public land

(1)A person may apply to the Minister for a determination that the person is eligible to receive payments under this Division in relation to a relevant transmission interest if—

(a)the person holds a prescribed interest in public land; and

(b)either—

(i)that land is subject to the relevant transmission interest; or

(ii)prescribed circumstances exist.

(2)An application under subsection (1) must—

(a)be in the prescribed form; and

(b)contain any prescribed information.

(3)On receiving an application under subsection (1), the Minister must either—

(a)determine that the person is eligible to receive payments under this Division in relation to the relevant transmission interest; or

(b)determine that the person is not eligible to receive payments under this Division in relation to the relevant transmission interest.

(4)In making a determination under subsection (3), the Minister—

(a)must consider any prescribed matters; and

(b)may take into account any other matter that the Minister considers appropriate.

(5)A determination under subsection (3) must—

(a)be made—

(i)within the prescribed period; or

(ii)if no period is prescribed, within 4 months after the Minister receives the application; and

(b)set out any prescribed information.

(6)Unless circumstances prescribed for the purposes of this subsection apply, a person ceases to be an eligible person in relation to a relevant transmission interest if—

(a)the land in which the person's interest subsists ceases to be subject to the relevant transmission interest; or

(b)the person ceases to hold the interest in land; or

(c)the prescribed circumstances referred to in subsection (1)(b)(ii) cease to exist.

(7)Without limiting subsection (6)(a), land does not cease to be subject to a relevant transmission interest solely because the relevant transmission interest to which the land is subject is assigned or transferred to another transmission company.

(8)If a person ceases to be an eligible person in relation to a relevant transmission interest under subsection (6), the person must notify the Minister, or any person nominated by the Minister—

(a)in writing within 15 business days after the person ceases to be an eligible person; and

(b)in accordance with any guidelines under section 79(2).

(9)Nothing in this section prevents a person applying under subsection (1) in relation to a prescribed interest in land created by a subdivision of that land.

76Initial payment—public land

(1)Subject to sections 81 and 82, the Minister must ensure that an initial payment is made, in accordance with the regulations, to an eligible person in relation to the relevant transmission interest of—

(a)an amount calculated in accordance with the prescribed method; or

(b)if the Minister considers that exceptional circumstances exist, an amount greater than the amount described in paragraph (a) calculated in accordance with any guidelines made under section 79(1)(b).

(2)In determining whether exceptional circumstances exist for the purposes of subsection (1)(b), the Minister—

(a)must have regard to any guidelines made under section 79(1)(a); and

(b)may take into account any other matter that the Minister considers appropriate.

(3)The Minister must ensure that a payment to an eligible person under subsection (1) is made on or before the prescribed day.

77Subsequent payments—public land

(1)Subject to sections 81 and 82, the Minister, for each relevant year, must make, in accordance with the regulations, a payment to an eligible person in relation to the relevant transmission interest of either—

(a)an amount calculated in accordance with section 78; or

(b)if the Minister considers that exceptional circumstances exist, an amount greater than the amount described in paragraph (a) calculated in accordance with any guidelines made under section 79(1)(b).

(2)In determining whether exceptional circumstances exist for the purposes of subsection (1)(b), the Minister—

(a)must have regard to any guidelines made under section 79(1)(a); and

(b)may take into account any other matter that the Minister considers appropriate.

(3)The Minister must ensure that a payment to an eligible person under subsection (1) is made on or before the prescribed day.

(4)In this section—

relevant year means—

(a)the year beginning on the prescribed day; and

(b)each subsequent year for the prescribed period or, if no period is prescribed, for a period of 23 years.

78Calculation of subsequent payments—public land

A payment under section 77 for a relevant year must be calculated in accordance with the formula—

where—

Sis the amount in dollars to be paid to the eligible person;

CPIiis the all groups consumer price index for Melbourne in original terms for the last reference period in the preceding relevant year most recently published by the Australian Bureau of Statistics;

CPIiiis the all groups consumer price index in original terms for Melbourne for the corresponding reference period one year earlier than the reference period referred to in CPIi most recently published by the Australian Bureau of Statistics;

Pis the amount paid to the eligible person under section 76 or 77 (as appropriate) for the previous relevant year.

Division 4—General

79Guidelines

(1)The CEO VicGrid may issue guidelines in respect of—

(a)determining when exceptional circumstances exist for the purposes of sections 71(1)(b), 73(1)(b), 76(1)(b) and 77(1)(b); and

(b)the method by which an amount under section 71(1)(b), 73(1)(b), 76(1)(b) or 77(1)(b) is to be calculated.

(2)The CEO VicGrid may issue guidelines in respect of—

(a)the manner in which a notice under section 70(8), 75(8) or 80 is to be given; and

(b)the nature of the information that a notice under section 70(8), 75(8) or 80 is to contain.

80Transmission company notification requirements

(1)If a transmission company ceases to hold a relevant transmission interest, the transmission company must notify—

(a)in the case of a relevant transmission interest subsisting in land other than public land, the CEO VicGrid; and

(b)in the case of a relevant transmission interest subsisting in public land, the Minister.

(2)A transmission company must notify the following of any prescribed matter—

(a)if the transmission company holds an interest in land other than public land, the CEO VicGrid;

(b)if the transmission company holds an interest in public land, the Minister.

(3)A notice under subsection (1) or (2) must—

(a)be made in writing within 15 business days after the transmission company ceases to hold the relevant transmission interest; and

(b)be made in accordance with any guidelines under section 79(2).

81Waiver of entitlement to payment

(1)An eligible person, by notice in writing to the CEO VicGrid or the transmission company that holds the relevant transmission interest, may waive the eligible person's entitlement to a specified payment under section 71, 73, 76 or 77.

(2)If an eligible person waives an entitlement under subsection (1)—

(a)section 71, 73, 76 or 77 (as appropriate) does not apply in relation to that payment; and

(b)the transfer of the interest in land that is subject to the relevant transmission interest does not revive any entitlement to the payment.

82Transfer of interest in land subject to relevant transmission interest

(1)This section applies if—

(a)an interest (the transferred interest) in land that is subject to a relevant transmission interest is transferred—

(i)by an eligible person to another person (the transferee); and

(ii)before the day that is 25 years after the registration of the relevant transmission interest; and

(b)on application by the transferee under section 70(1) or 75(1), the Minister or the CEO VicGrid determines under section 70(3)(a) or 75(3)(a) (as appropriate) that the transferee is eligible to receive payments under this Part in relation to the relevant transmission interest.

(2)The transferee is entitled to an initial payment in relation to the relevant transmission interest only if no initial payment under section 71 or 76 for the transferred interest has previously been made to any other person in relation to the relevant transmission interest.

(3)The transferee is entitled to a subsequent payment for a relevant year in relation to the relevant transmission interest only if no payment under section 73 or 77 (as appropriate) has been made for that year to any previous holder of the transferred interest in relation to the relevant transmission interest.

(4)In this section—

relevant year—

(a)in the case of an interest in land other than public land, has the same meaning as in section 73; or

(b)in the case of an interest in public land, has the same meaning as in section 77.

transfer, in relation to an interest in land that is subject to a relevant transmission interest, includes transferring an interest in land created by the subdivision of that land.

83Overpayments

(1)Subject to subsection (2), a payment made or purportedly made under this Part to a person who is not an eligible person, or in relation to any period during which the person is not an eligible person—

(a)is a debt due to the Crown; and

(b)may be recovered by—

(i)in the case of a payment made or purportedly made under Division 2, the CEO VicGrid; or

(ii)in the case of a payment made or purportedly made under Division 3, the Minister.

(2)If a payment described in subsection (1) is made or purportedly made as the result of the failure by a transmission company to notify the Minister or the CEO VicGrid under section 80, the debt—

(a)may be recovered from the transmission company; and

(b)must not be recovered from the person to whom the payment was made or purportedly made.

(3)An overpayment made to an eligible person under this Part as the result of the miscalculation of an initial payment or a subsequent payment—

(a)is a debt due to the Crown; and

(b)may be recovered by—

(i)in the case of a payment made under Division 2, the CEO VicGrid; or

(ii)in the case of a payment made under Division 3, the Minister.

84Effect on compensation under other Acts

A payment made to an eligible person under this Part—

(a)must not be taken into account when calculating any compensation to be paid to that person under another Act; and

(b)does not affect the entitlement of that person to any compensation under another Act.

85Administration agreements

(1)Subject to subsection (2), the Minister or the CEO VicGrid may enter into a written agreement with a person to enable that person to make payments under this Part on behalf of the Minister or the CEO VicGrid (as appropriate).

(2)An agreement under subsection (1) must not enable or require the person—

(a)to determine whether any other person is eligible to receive any payments under this Part; or

(b)to determine the amount of any payment under this Part.

(3)Subject to subsection (2), an agreement under subsection (1) may include any provisions that the Minister or the CEO VicGrid considers necessary for the administration of payments under this Part in accordance with any prescribed requirements.

(4)Without limiting subsection (3), an agreement under subsection (1) may include provisions relating to the sharing of information between the Minister or the CEO VicGrid and the person that are necessary for the administration of payments under this Part.

(5)Except as expressly provided, this section does not limit the ability of the Minister or the CEO VicGrid to enter into an agreement with any person for the purposes of administering this Part.

86Review of decisions

(1)A person whose interests are affected by a decision of the Minister or the CEO VicGrid under section 70, 71, 73, 75, 76 or 77 may apply to VCAT for a review of the decision.

(2)An application for review must be made within 28 days after the later of—

(a)the day on which the decision is made; or

(b)if, under the Victorian Civil and Administrative Tribunal Act 1998, the person requests a statement of reasons for the decision, the day on which the statement of reasons is given to the person or the person is informed under section 46(5) of that Act that a statement of reasons will not be given.

87Delegation

The Minister, by instrument, may delegate to a person employed under Part 3 of the Public Administration Act 2004 in the administration of this Part any function or power of the Minister under this Part, other than this power of delegation.".

PART 4—REPEAL OF THIS ACT

11Repeal of this Act

This Act is repealed on 5 March 2026.

Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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ENDNOTES

1   General information

See for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information.

Minister's second reading speech—

Legislative Assembly: 6 March 2024

Legislative Council: 21 March 2024

The long title for the Bill for this Act was "A Bill for an Act to amend the National Electricity (Victoria) Act 2005 in relation to VicGrid and for other purposes."