Untitled document

Electricity Industry (Further Miscellaneous

Amendment) Act 1997

Act No. 55/1997

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2

PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT

1993   3

3.	Principal Act	3
4.	Definitions	3
5.	Amendment of section 44A	3
6.	Amendment relating to National Electricity Law	3
7.	New section 84AAA inserted	4
84AAA. Certain assets not to be fixtures	4
8.	National electricity market operator	4
9.	VPX may be transferor under Part 11AC	4
10.	New section 153TUA inserted	5
153TUA. Value to TCO of transferred property	5
11.	New section 155A inserted	5

155A.	Conferral of power on ACCC in relation to transmission
pricing 5

12.	Regulation of transmission charges	6
13.	Amendment of section 163AAA	7
14.	Amendment of section 171	8
15.	New section 173A inserted	8

173A. Temporary exemption from prohibition 9

PART 3—VICTORIAN ENERGY NETWORKS CORPORATION 10

16.	Definition of VENCORP	10
17.	Part 2A substituted	10
PART 2A—VICTORIAN ENERGY NETWORKS
CORPORATION	10

41A. Functions 10

i

Section Page

18.	Definition of VPX	10
19.	New section inserted in Part 1A of Gas Industry Act 1994	11
8CA. Functions and powers relating to electricity	11

PART 4—AMENDMENT OF OTHER ACTS 12

20.	National Electricity (Victoria) Act 1997	12
8A. Proceedings in respect of Code	12
8B. Supreme Court-limitation of jurisdiction	12
21.	Electricity Industry (Miscellaneous Amendment) Act 1997	12
22.	Loy Yang B Act 1992	12
23.	Further amendment of State Owned Enterprises Act 1992	13
24.	New section 88AA inserted in State Owned Enterprises Act
1992	13
88AA. Application of section 88 to certain bodies	13
25.	New section 18A substituted in Crown Land (Reserves) Act
1978	14
18A. Agreement with electricity company—reserved land	14
26.	New section 57D substituted in Forests Act 1958	15
57D. Agreement with electricity company—reserved forest	16
27.	Further amendment of Forests Act 1958	17
28.	New section 229 substituted in Land Act 1958	17
229. Agreement with electricity company	17
29.	New section 27A inserted in National Parks Act 1975	18
27A. Agreement with electricity company	18
30.	Further amendment of National Parks Act 1975	20

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NOTES 21

ii

Victoria

No. 55 of 1997

Electricity Industry (Further

Miscellaneous Amendment) Act 1997†

[Assented to 21 October 1997]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to provide for further
miscellaneous amendments of the Electricity

Industry Act 1993 and certain other Acts.

2. Commencement

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997

(1) Subject to this section, this Act comes into

operation on the day on which it receives the

Royal Assent.

(2) Sections 4(2), 6 and 8 and Part 3 come into

operation on a day or days to be proclaimed.

_______________
Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 3

s. 6 Act No. 55/1997

PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT

1993

No. 130/1993.

Reprint No. 3	3. Principal Act
as at 14 July

1997.   In this Part, the Electricity Industry Act 1993 is called the Principal Act.

4. Definitions

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

' "licence" means a licence under section 162;

"licensee", except in Part 13, means the holder of

a licence under section 162;'.

(2) In section 3(1) of the Principal Act insert—
' "National Electricity Code" has the same

meaning as "Code" has in the National

Electricity (Victoria) Law;

"NEMMCO" has the same meaning as in the

National Electricity (Victoria) Law;

"wholesale electricity market" means the

market for wholesale trading in electricity
operated by NEMMCO;'.

(3) In section 154 of the Principal Act, the definition of "licence" is repealed.

5. Amendment of section 44A

In section 44A of the Principal Act—

(a)	for "telecommunications service" (where twice occurring) substitute "carriage service";
(b)	in sub-section (1) for "1991" substitute "1997".

6. Amendment relating to National Electricity Law
Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997

In section 9(1) of the Principal Act, after "Part 12"
insert "and the National Electricity (Victoria)

Law and the National Electricity Code".

7. New section 84AAA inserted

After section 84A of the Principal Act insert—

"84AAA. Certain assets not to be fixtures

(1) The Minister may, by written notice, declare

that specified assets that are affixed to land
and that are disposed of by VPX, a public
transmission company or a public generation
company are taken, for all purposes, to be
separate assets being chattels personal and
not fixtures.

(2) The declaration has effect accordingly.".

8. National electricity market operator

In the Principal Act—

(a) wholesale trading in electricity operated and

in section 158B(2), for "market for electricity market";

(b) in section 159, sub-section (2) is repealed;

(c)	in section 159(3), omit "or (2)" (where twice occurring);
(d)	in section 171(9)(b) omit "operated and administered by VPX".

9. VPX may be transferor under Part 11AC

(1) In section 153TQ(1) of the Principal Act, in the

definition of "transferor company", after "means"
insert "VPX or".

(2) At the end of section 153TR of the Principal Act

insert—

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 10 Act No. 55/1997

"(2) The Treasurer may nominate VPX as a

transferor company for the purposes of this
Part.".

10. New section 153TUA inserted

After section 153TU of the Principal Act insert—

"153TUA. Value to TCO of transferred property

If, in an agreement for the sale by the TCO of the business or assets of the TCO, a value is ascribed to property, rights or liabilities that are allocated to a TCO transferee under an allocation statement, that value is deemed to be consideration paid to, or received by, the TCO.".

11. New section 155A inserted

After section 155 of the Principal Act insert—

'155A. Conferral of power on ACCC in relation to

transmission pricing

(1) The Minister, on behalf of the State, may

enter into an agreement with the Competition and Consumer Commission established by section 6A of the Trade Practices Act 1974 of the Commonwealth ("ACCC") for the performance of such functions and the exercise of such powers as the Office has in relation to the regulation of charges for connection to, and the use of, the transmission system, whether under an Order made under section 158A or otherwise.

(2) The ACCC, and the members of the ACCC,

have power to perform such functions and
exercise such powers as are conferred on the
ACCC by an agreement under sub-section
(1).

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997 s. 12

(3) An agreement referred to in sub-section (1)

shall be published in the Government
Gazette.

(4) An agreement under sub-section (1) comes

into effect on publication of a copy in
accordance with sub-section (3) or on such
later date as is specified in the agreement.

(5) Despite anything to the contrary in section

39A of the Office of the Regulator-General such information as may be necessary or convenient for the ACCC to have in connection with carrying out the functions and powers of the Office that are conferred on the ACCC by an agreement under this section.'.

12. Regulation of transmission charges

(1) In the Principal Act—

(a)	in section 158(1)(b), after "(iii)" insert "unless an Order is in force under sub- section (2),";
(b)	in section 158A(1), after "(c)" insert "unless an Order is in force under section 158(2),".

(2) After section 158(1) of the Principal Act insert— "(2) The Governor in Council may, by Order

published in the Government Gazette,
declare that charges for connection to, and
the use of, the transmission system are
subject to the regulation of the ACCC under
an agreement entered into under section
155A and are not subject to the regulation of
the Office.".

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 13 Act No. 55/1997

13. Amendment of section 163AAA

(1) In section 163AAA of the Principal Act—

(a)	in sub-section (1), for all words after "requirement" substitute "that, in certain circumstances, the licensee, on terms and conditions approved by the Office, supply and sell electricity to non-franchise customers to whom electricity is supplied under another licence (whether held by that licensee or another licensee)";
(b)	in sub-section (2) for "determining" substitute "approving";
(c)

in sub-section (3) for paragraph (b) "(b) to a non-franchise customer to whom

electricity is supplied under another
licence if the non-franchise customer
elects, in writing given to the holder of
that other licence, not to be a non-
franchise customer for the purposes of
sub-section (1).".

(2) In section 163AAA of the Principal Act, for sub-

section (5) substitute—
'(5) The obligation of the holder of a licence

("the second licence") to supply and sell electricity to a non-franchise customer to whom electricity is supplied under another
licence ("the first licence") in accordance
with the requirement referred to in sub-

section (1) commences when—

(a)	the first licence is suspended or revoked; or
(b)	the right of the holder of the first licence to acquire electricity from the

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 14
s. 15

Act No. 55/1997

market for wholesale trading in

electricity is suspended or terminated—

whichever first occurs, and ends after 3
months or when the non-franchise customer
advises the holder of the second licence in
writing that the supply and sale is no longer

required, whichever first occurs.'.

(3) In section 163AAA of the Principal Act—

(a)	in sub-section (6), for "may declare" substitute "must declare, if the condition so requires or, in any other case, may declare";
(b)	customers" substitute "non-franchise

in sub-section (6), for "emergency under another licence in circumstances to which sub-section (5) applies";

(c)	in sub-section (7), for "emergency" substitute "non-franchise";
(d)	in sub-section (8) for "an emergency" substitute "a non-franchise";

(e) sub-section (9) is repealed.

14. Amendment of section 171

In section 171 of the Principal Act, in the definition of "licensee", for paragraph (a) substitute—

"(a) a distribution company, generation company or transmission company other than a public distribution company, public generation

company or public transmission company;

or".

15. New section 173A inserted

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997

After section 173 of the Principal Act insert—

"173A. Temporary exemption from prohibition

(1) The Treasurer may, in writing given to the Office, declare that a specified person does not, by reason only of having a specified

controlling interest or specified substantial interest, have a prohibited interest during a specified period ending not more than 6
months after the day on which the
declaration is made.

(2) A declaration under sub-section (1) may be

made subject to such conditions as are
specified in it.

(3) A declaration under this section has effect

according to its terms and ceases to have
effect—

(a) at the end of the specified period; or

(b) upon a breach of a condition to which it is expressed to be subject.".

_______________
Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997 s. 16

PART 3—VICTORIAN ENERGY NETWORKS

CORPORATION

16. Definition of VENCORP

In section 3(1) of the Electricity Industry Act
1993 insert—

' "VENCORP" means Victorian Energy

Networks Corporation established under Part

1A of the Gas Industry Act 1994;'.

17. Part 2A substituted

For Part 2A of the Electricity Industry Act 1993 substitute—

"PART 2A—VICTORIAN ENERGY

NETWORKS CORPORATION

41A. Functions

Subject to the National Electricity (Victoria) functions of VENCORP are—

(a)	to plan, and direct the augmentation of, the electricity transmission system;
(b)	to provide information and other services to facilitate decisions for investment and the use of resources in

the electricity industry.".

18. Definition of VPX

In section 3(1) of the Electricity Industry Act

1993—

(a) the definition of "PoolCo" is repealed;

(b) for the definitions of "VPX" and "Victorian Power Exchange" substitute—

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 19 Act No. 55/1997

' "VPX" or "Victorian Power Exchange"

means Victorian Energy Networks
Corporation established under Part 1A
of the Gas Industry Act 1994;'.

19. New section inserted in Part 1A of Gas Industry Act 1994

After section 8C of the Gas Industry Act 1994 insert—

"8CA. Functions and powers relating to electricity

VENCORP has the functions and powers
conferred on it under the Electricity

Industry Act 1993.".

_______________
Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997 s. 20

PART 4—AMENDMENT OF OTHER ACTS

20. National Electricity (Victoria) Act 1997

After section 8 of the National Electricity
(Victoria) Act 1997 insert—
"8A. Proceedings in respect of Code

Except as otherwise provided in section 10 of the National Electricity (Victoria) Law, a person—

(a)	may not bring proceedings against NECA; or
(b)	being a person other than NECA, may not bring proceedings against a Code participant—

in respect of an alleged contravention of the
Code.

8B. Supreme Court-limitation of jurisdiction It is the intention of section 8A to alter or vary section 85 of the Constitution Act

1975.".

No. 35/1992.

21. Electricity Industry (Miscellaneous Amendment) Act 1997

In the Electricity Industry (Miscellaneous

Amendment) Act 1997—

(a) in section 2(2), omit "10,";

(b) section 10 is repealed.

22. Loy Yang B Act 1992

In the Loy Yang B Act 1992—

(a) sections 12 to 21 are repealed;
(b) section 23 to 25 is repealed;

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 23 Act No. 55/1997

(c) section 28 is repealed;
(d) sections 29 to 32 are repealed;
(e) section 37 is repealed;
(f) Part 5 is repealed.

23. Further amendment of State Owned Enterprises Act 1992

In section 63(1) of the State Owned Enterprises Act 1992, after "existing capital of a converting body" insert ", as at a date specified in the declaration,".

24. New section 88AA inserted in State Owned Enterprises Act 1992

After section 88 of the State Owned Enterprises

Act 1992 insert—

'88AA. Application of section 88 to certain bodies
(1) Despite anything to the contrary in section

88, the Treasurer may give a direction under sub-section (1) of that section to a State body in respect of a financial year beginning on

1 July 1994 or any later period.

(2) If a direction is given to a State body in

respect of a period referred to in sub-section (1), the State body must comply with section 88 in respect of that period.

(3) In this section—

"State body" means—

(a) a State owned enterprise; or

(b)

a statutory corporation in respect section 88A is in force—

being a body that, before 1 July 1994—

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997	s. 25
(c)	was liable to pay income tax to the Commonwealth but that ceased to be so liable on that date by reason of being an STB within the

meaning of Division 1AB in Part III of the Income Tax Assessment Act 1936 of the Commonwealth;

or

(d)	was liable to pay sales tax under the law of the Commonwealth in respect of goods supplied to it but
that ceased to be so liable on that date by reason of being an STB within the meaning of item 126A of Schedule 1 of the Sales Tax (Exemptions and Classifications) Act 1992 of the Commonwealth.'.

25. New section 18A substituted in Crown Land (Reserves) Act 1978

For section 18A of the Crown Land (Reserves)

Act 1978 substitute—

'18A. Agreement with electricity company—

reserved land

(1) The Minister may enter into an agreement

with an electricity company—
(a) to manage and control; or

(b) to carry out duties, functions and powers related to the company's purpose on—

any reserved land, other than land that is a reference area under the References Areas Act 1978, that is used for the purposes of or in connection with the company's purpose.

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 26 Act No. 55/1997

(2) An agreement under sub-section (1)—

(a) must be in writing; and

(b)	may be amended from time to time or terminated by further written agreement between the parties; and
(c)	must contain provisions with respect to the protection and conservation of the land subject to the agreement.

(3) In this section—

"electricity company" means a generation

company, transmission company or
distribution company within the
meaning of the Electricity Industry

Act 1993;

"company's purpose" means—

(a) company that is a generation
company, the generation of

in relation to an electricity supply or sale;

(b) company that is a transmission

in relation to an electricity electricity;

(c) company that is a distribution

in relation to an electricity supply of electricity.'.

26. New section 57D substituted in Forests Act 1958

For section 57D of the Forests Act 1958 substitute—

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997 s. 26

'57D. Agreement with electricity company—

reserved forest

(1) The Minister may enter into an agreement

with an electricity company—
(a) to manage and control; or

(b) to carry out duties functions and powers related to the company's purpose in—

any area of reserved forest, other than any the purposes of or in connection with the company's purpose.

area that is a reference area under the

(2) An agreement under sub-section (1)—

(a) must be in writing;

(b)	may be amended from time to time or terminated by further written agreement between the parties; and
(c)	must contain provisions with respect to the protection and conservation of the land subject to the agreement.

(3) In this section—

"electricity company" means a generation

company, transmission company or
distribution company within the
meaning of the Electricity Industry

Act 1993;

"company's purpose" means—

(a) company that is a generation
company, the generation of

in relation to an electricity supply or sale;

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 27 Act No. 55/1997

(b) company that is a transmission

in relation to an electricity electricity;

(c) company that is a distribution

in relation to an electricity supply of electricity.'.

27. Further amendment of Forests Act 1958

(1) After section 57B(5) of the Forests Act 1958

insert—

'(6) In this section, "generation company" has

the same meaning as in the Electricity

Industry Act 1993.'.

(2) After section 57C(2) of the Forests Act 1958

insert—

'(3) In this section, "generation company" has

the same meaning as in the Electricity

Industry Act 1993.'.

28. New section 229 substituted in Land Act 1958

For section 229 of the Land Act 1958
substitute—
'229. Agreement with electricity company

(1) The Minister may enter into an agreement

with an electricity company—
(a) to manage and control; or

(b) to carry out duties functions and powers related to the company's purpose on—

any Crown land, other than land that is a in connection with the company's purpose.

reference area under the Reference Areas

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997 s. 29

(2) An agreement under sub-section (1)—

(a) must be in writing; and

(b)	may be amended from time to time or terminated by further written agreement between the parties; and
(c)	must contain provisions with respect to the protection and conservation of the land subject to the agreement.

(3) In this section—

"electricity company" means a generation

company, transmission company or
distribution company within the
meaning of the Electricity Industry

Act 1993;

"company's purpose" means—

(a) company that is a generation
company, the generation of

in relation to an electricity supply or sale;

(b) company that is a transmission

in relation to an electricity electricity;

(c) company that is a distribution

in relation to an electricity supply of electricity.'.

29. New section 27A inserted in National Parks Act 1975 After section 27 of the National Parks Act 1975 substitute—

'27A. Agreement with electricity company

Electricity Industry (Further Miscellaneous Amendment) Act
1997

s. 29 Act No. 55/1997

(1) The Minister may enter into an agreement

with an electricity company—
(a) to manage and control; or

(b) to carry out duties, functions and powers related to the company's purpose in—

any area that is used for the purposes of or in
connection with the company's purpose,
being an area of a national park, State park
or land referred to in Schedule Three, other
than land that is a wilderness zone or a
remote and natural area or a reference area

under the Reference Areas Act 1978.

(2) An agreement under sub-section (1)—

(a) must be in writing; and

(b)	may be amended from time to time or terminated by further written agreement between the parties; and
(c)	must contain provisions with respect to the protection and conservation of the land subject to the agreement.

(3) Despite sub-section (1), an agreement under

that sub-section may apply to the carrying
out of duties, functions and powers related to
the purpose of a transmission company in a
reference area to the extent to which they
were so carried out immediately before the
commencement of section 29 of the
Electricity Industry (Further
Miscellaneous Amendment) Act 1997.

(4) In this section—

Electricity Industry (Further Miscellaneous Amendment) Act
1997

Act No. 55/1997 s. 30

"electricity company" means a

transmission company or distribution
company within the meaning of the

Electricity Industry Act 1993;

"company's purpose" means—

(a) company that is a transmission

in relation to an electricity electricity;

(b) company that is a distribution

in relation to an electricity supply of electricity.'.

30. Further amendment of National Parks Act 1975

(1) After section 30AA(5) of the National Parks Act

1975 insert—
'(6) In this section, "generation company" has

the same meaning as in the Electricity
Industry Act 1993.'.

(2) In section 30AB(3) of the National Parks Act 1975 omit "section 30AA and in".

═══════════════
Electricity Industry (Further Miscellaneous Amendment) Act
1997

Notes Act No. 55/1997

NOTES

†

Minister's second reading speech—

Legislative Assembly: 18 September 1997

Legislative Council: 8 October 1997

The long title for the Bill for this Act was "to make further amendments to the Electricity Industry Act 1993, to amend the National Electricity (Victoria) Act 1997 and certain other Acts and for other purposes."

Constitution Act 1975:

Section 85(5) statement:

Legislative Assembly: 18 September 1997

Legislative Council: 8 October 1997

Absolute majorities:

Legislative Assembly: 7 October 1997

Legislative Council: 15 October 1997