Untitled document
Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008
No. 59 of 2008
table of provisions
Section Page
Part 1—Preliminary
1Purpose
2Commencement
Part 2—Amendment of Electricity Industry Act 2000
3Definitions
4Declaration of classes of customers and retailers and specified circumstances
5Regulation of tariffs for prescribed customers
6Condition restricting sale to certain customers
7Section 23A repealed
8Offer to domestic or small business customers
9New sections 35A to 35E inserted
35ALicensee standing offer tariffs to be given to Commission
35BCommission must publish on Internet licensee
standing offer tariffs35CInternet publication and bill notification of licensee standing offers
35DRequired tariff information and licensee contact information to be published in newspaper
35EOrder specifying method and variables to be used
to determine weighted tariff variation
10Terms and conditions of contracts for sale of electricity to
certain customers11Publication of terms and conditions of sale of electricity
(relevant published offers)12Deemed contracts with former franchise customers
13Deemed contracts for supply and sale for relevant customers
14New section 39A inserted
39ACommission must report to Minister on electricity supply offers
15New Division 5B of Part 2 inserted
Division 5B—Condition relating to greenhouse gas
emissions and energy efficiency benchmarking information40ODefinitions
40PMeaning of bill benchmarking information
40QDeclaration of residential customers
40RCondition relating to greenhouse gas emissions and energy efficiency benchmarking information
40SCommission guidelines relating to greenhouse gas emissions information condition
16New definition inserted into section 46B
17Orders in relation to advanced metering infrastructure
18General powers in relation to Orders relating to advanced metering infrastructure
Part 3—Amendment of Gas Industry Act 2001
Division 1—Consumer safety net provisions
19Definitions
20Declaration of classes of customers and retailers and specified circumstances
21Regulation of tariffs for prescribed customers
22Offer to domestic or small business customers
23New sections 42A to 42E inserted
42ALicensee standing offer tariffs to be given to Commission
42BCommission must publish on Internet licensee
standing offer tariffs42CInternet publication and bill notification of licensee standing offers
42DRequired tariff information and licensee contact information to be published in newspaper
42EOrder specifying method and variables to be used to determine weighted tariff variation
24Terms and conditions of contracts for sale of gas to certain customers
25Publication of terms and conditions of sale of gas (relevant published offers)
26Deemed contracts with former franchise customers
27Deemed contracts for supply and sale for relevant customers
28New section 47 inserted
47Commission must report to Minister on gas supply
offers
Division 2—Other amendments
29Repeal of Tariff Order provision
30Retail gas market rules
31Principles for retail gas market rules
32New section 62 substituted
62Retail gas market rules—gas transmission system
and gas distribution system
33Consequential amendment to reference to VENCorp
developed retail gas market rules34Consequential section cross-reference amendment
35Approval of rules by Commission
36Commission directions to VENCorp in relation to supplier
of last resort trigger events37Costs of VENCorp
38New section 237 inserted
237Transitional provision—Retail gas market rules developed by VENCorp
Part 4—Amendment of Other Energy Legislation
Division 1—Amendment of Gas Safety Act 1997
39Definitions
40Regulations
Division 2—Amendment of Electricity Safety Act 1998
41Certificates of approval, acceptance or compliance
42Incorporation by reference by regulations
Division 3—Amendment of National Electricity (Victoria) Amendment Act 2007
43ESC AMI determination processes not completed before regulatory handover to AER
27AAER determinations under the AMI Order
44Appeals against certain decisions or actions of the AER
Division 4—Amendment of National Gas (Victoria) Act 2008
45Transitioned Victorian distribution RIOs
46Matters to be taken into account when AER makes or prepares regulatory information instruments
Part 5—Repeal of Amending Act
47Repeal of Act
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Endnotes
Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008
No. 59 of 2008
[Assented to 22 October 2008]
The Parliament of Victoria enacts:
Part 1—Preliminary
1Purpose
The main purpose of this Act is to—
(a)amend the Electricity Industry Act 2000 to—
(i)make further provision in relation to tariffs at, and terms and conditions on, which electricity is sold to customers; and
(ii)empower the Essential Services Commission to report on the tariffs at, and the terms and conditions on, which electricity is sold to customers; and
(iii)make further provision in relation to the making of Orders in Council relating to advanced metering infrastructure; and
(b)amend the Gas Industry Act 2001 to—
(i)make further provision in relation to tariffs at, and terms and conditions on, which gas is sold to customers; and
(ii)empower the Essential Services Commission to report on the tariffs at, and the terms and conditions on, which gas is sold to customers; and
(iii)to empower the Governor in Council to make retail gas market rules for the gas transmission system and gas distribution system; and
(iv)empower the Australian Energy Regulator to approve the amounts VENCorp determines are payable by a gas retailer to VENCorp in respect of the costs incurred by VENCorp in relation to the implementation of, and the provision of services in connection with, arrangements for competition in the retail gas market in Victoria; and
(v)repeal a redundant tariff order provision; and
(c)amend the Gas Safety Act 1997 to—
(i)clarify the scope of the definition of standard gas installation; and
(ii)enable regulations to be made that require the keeping of records in relation to the service, maintenance, repair or modification of complex gas installations and Type B appliances; and
(d)amend the Electricity Safety Act 1998 to make further provision in relation to the making of regulations under that Act; and
(e)amend the National Electricity (Victoria) Amendment Act 2007 to make further provision in relation to determinations relating to advanced metering infrastructure; and
(f)amend the National Gas (Victoria) Act 2008 to clarify the operation and effect of the transitioned Victorian distribution regulatory information order.
2Commencement
(1)This Act (except Part 2, Division 1 of Part 3, section 30(1) and sections 31 to 39) comes into operation on the day after the day on which this Act receives the Royal Assent.
(2)Part 2 and Division 1 of Part 3 come into operation on 1 January 2009.
(3)Subject to subsection (6), section 30(1) and sections 31 to 38 come into operation on a day to be proclaimed.
(4)Subject to subsection (5), section 39 comes into operation on a day to be proclaimed.
(5)If section 39 does not come into operation before 1 January 2010, that section comes into operation on that day.
(6)If section 30(1) and sections 31 to 38 do not come into operation before 1 July 2010, those provisions come into operation on that day.
__________________
Part 2—Amendment of Electricity Industry Act 2000
3Definitions
(1)In section 3 of the Electricity Industry Act 2000 insert the following definitions—
"AEMC means the Australian Energy Market Commission established by section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia;
domestic or small business customer means a person, or a member of a class of persons, to whom an Order under section 35(5) applies;
licensee standing offer means—
(a)the tariffs determined by a licensee under section 35(1) and published in the Government Gazette in accordance with that subsection, as varied from time to time by the licensee as provided for under section 35(3); and
(b)the terms and conditions determined by a licensee and approved by the Commission under section 35(1) and published in the Government Gazette in accordance with that subsection, as varied from time to time by the licensee and approved by the Commission as provided for under section 35(4);
MCE means the Ministerial Council on Energy established on 8 June 2001, being the Council of Ministers with primary carriage of energy matters at a national level comprising the Ministers representing the Commonwealth, the States, the Australian Capital Territory and the Northern Territory, acting in accordance with its own procedures;
regulated tariff standing offer means a licensee standing offer that is subject to an Order under section 13 that is in force;
relevant published offer means the tariffs and terms and conditions on which a specified retailer sells electricity to small retail customers that are published in accordance with section 36A;
specified circumstances, in section 36A, means circumstances declared to be specified circumstances by Order under section 7AA(1)(c);
specified retailer means a retailer declared to be a specified retailer by Order under section 7AA(1)(b);
standing offer means—
(a)a licensee standing offer; or
(b)a regulated tariff standing offer;".
(2)In section 3 of the Electricity Industry Act 2000, in the definition of small retail customer, for "7AA" substitute "7AA(1)(a)".
4Declaration of classes of customers and retailers and specified circumstances
(1)In section 7AA(1)(b) of the Electricity Industry Act 2000, for "section 36A." substitute "section 36A;".
(2)After section 7AA(1)(b) of the Electricity Industry Act 2000 insert—
"(c)declare circumstances to be specified circumstances for the purposes of section 36A.".
(3)In section 7AA(3) of the Electricity Industry Act 2000, for "this section" substitute "subsection (1)(a)".
(4)After section 7AA(3) of the Electricity Industry Act 2000 insert—
"(3A)An Order under subsection (1)(b) may declare a licensee to be a specified retailer by reference to all or any of the following—
(a)the number of small retail customers of the licensee;
(b)the tariffs at, and terms and conditions on, which the licensee sells electricity to its small retail customers;
(c)the distribution area of a distribution company provided for in the company's licence;
(d)any other specified factor relevant to the sale of electricity.
(3B)An Order under subsection (1)(c) may declare circumstances to be specified circumstances by reference to all or any of the following—
(a)the number of small retail customers of a specified retailer;
(b)the tariffs at, and terms and conditions on, which a specified retailer sells electricity to its small retail customers;
(c)the distribution area of a distribution company provided for in the company's licence;
(d)any other specified factor relevant to the sale of electricity.".
5Regulation of tariffs for prescribed customers
(1)After section 13(1) of the Electricity Industry Act 2000 insert—
"(1A)The Governor in Council may only make an Order under subsection (1) if under an MCE directed retail competition review the AEMC—
(a)concludes that competition in a market for electricity is not effective; and
(b)recommends, in accordance with the MCE's written direction for that review, that price controls on prices for retail electricity services be (as the case requires) retained or reintroduced.".
(2)After section 13(2) of the Electricity Industry Act 2000 insert—
"(2A)Without limiting the generality of subsection (1), in determining the manner tariffs for the sale of electricity to prescribed customers or a class of prescribed customers are to be regulated, the Governor in Council may have regard to the tariffs payable by the prescribed customers or a class of prescribed customers during the review period.".
(3)In section 13(6) of the Electricity Industry Act 2000 insert the following definitions—
"MCE directed retail competition review means an MCE directed review (within the meaning of the National Electricity (Victoria) Law) under section 41(1)(d) of that Law;
review period means the period—
(a)commencing on the day that the direction of the MCE requiring an MCE directed retail competition review is published in the South Australian Government Gazette under section 41(3) of the National Electricity (Victoria) Law; and
(b)ending on the day before the day the Order under subsection (1) is made.".
(4)Section 13(7) of the Electricity Industry Act 2000 is repealed.
6Condition restricting sale to certain customers
Section 23(4) of the Electricity Industry Act 2000 is repealed.
7Section 23A repealed
Section 23A of the Electricity Industry Act 2000 is repealed.
8Offer to domestic or small business customers
(1)Insert the following heading to section 35 of the Electricity Industry Act 2000—
"Offer to domestic or small business customers (licensee standing offers)".
(2)In section 35(3) of the Electricity Industry Act 2000, for "The tariffs" substitute "Subject to subsection (3A), the tariffs".
(3)After section 35(3) of the Electricity Industry Act 2000 insert—
"(3A)A licensee must not vary tariffs under subsection (3) that have been in effect for less than 6 months.".
(4)In section 35(4) of the Electricity Industry Act 2000, for "2 months" substitute "one month".
(5)In section 35(8) of the Electricity Industry Act 2000—
(a)in the definition of cooling-off period, for "the contract;" substitute "the contract.";
(b)the definition of domestic or small business customer is repealed.
(6)Section 35(9) of the Electricity Industry Act 2000 is repealed.
9New sections 35A to 35E inserted
After section 35 of the Electricity Industry Act 2000 insert—
"35A Licensee standing offer tariffs to be given to Commission
Without limiting the generality of section 20(2) or (3) or section 21, the conditions to which a licence to sell electricity, being a licence under which electricity may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to, on the same day the licensee publishes tariffs in accordance with section 35—
(a)give a copy of those tariffs to the Commission; and
(b)inform the Commission, in writing, of the day those tariffs take effect.
35BCommission must publish on Internet licensee standing offer tariffs
The Commission must publish on its Internet site tariffs it receives under section 35A on the day those tariffs take effect.
35CInternet publication and bill notification of licensee standing offers
(1)Without limiting the generality of section 20(2) or (3) or section 21, the conditions to which a licence to sell electricity, being a licence under which electricity may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to—
(a)publish, in accordance with guidelines issued under subsection (2), on the licensee's Internet site details of licensee standing offers that are in effect; and
(b)notify, in writing, a domestic or small business customer of the licensee standing offer that is in effect and that applies to electricity sold to that customer in or with the customer's first electricity bill after that licensee standing offer has taken effect.
(2)The Commission must prepare and issue guidelines for the purposes of this section specifying—
(a)the manner of publication of details of licensee standing offers that are in effect, including the accessibility of those licensee standing offers on a licensee's Internet site; and
(b)the nature of the details to be published; and
(c)any other matters that the Commission considers relevant.
35DRequired tariff information and licensee contact information to be published in newspaper
(1)Without limiting the generality of section 20(2) or (3) or section 21, the conditions to which a licence to sell electricity, being a licence under which electricity may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to, on the required day, publish in a newspaper circulating generally throughout Victoria—
(a)required tariff information; and
(b)the licensee's contact information.
(2)In this section—
licensee's contact information means all of the following information—
(a)the licensee's telephone number;
(b)the licensee's fax number;
(c)the licensee's postal address;
(d)the Internet address of the licensee's Internet site;
required day means the day the licensee varies a tariff or tariffs for the supply and sale of electricity by notice published in the Government Gazette in accordance with section 35(3);
required tariff information means—
(a)tariff variation information; and
(b)the date a tariff or tariffs varied in accordance with section 35(3) takes or take effect; and
(c)a description of the tariff or tariffs referred to in paragraph (b); and
(d)the main reasons for the variation of a tariff or tariffs referred to in paragraph (b);
tariff variation information means—
(a)in the case of a single tariff for the supply and sale of electricity that is varied in accordance with section 35(3), the weighted tariff variation relating to that tariff determined in accordance with an Order under section 35E;
(b)in the case where more than one tariff for the supply and sale of electricity is varied in accordance with section 35(3) at the same time in accordance with that section, the weighted tariff variation relating to those tariffs determined in accordance with an Order under section 35E.
35EOrder specifying method and variables to be used to determine weighted tariff variation
The Governor in Council, by Order published in the Government Gazette, may specify the method and variables to be used to determine the weighted tariff variation for the purposes of paragraphs (a) and (b) of the definition of tariff variation information in section 35D(2).".
10Terms and conditions of contracts for sale of electricity to certain customers
Section 36(7) of the Electricity Industry Act 2000 is repealed.
11Publication of terms and conditions of sale of electricity (relevant published offers)
(1)In the heading to section 36A of the Electricity Industry Act 2000—
(a)after "of" (where first occurring) insert "tariffs,";
(b)after "electricity" insert "(relevant published offers)".
(2)For section 36A(1) of the Electricity Industry Act 2000 substitute—
"(1)Without limiting the generality of section 20(2) or (3) or section 21, the conditions to which a licence to sell electricity issued to a specified retailer is subject include a condition requiring the specified retailer in specified circumstances—
(a)to publish on its Internet site, in accordance with this section, details of the tariffs and terms and conditions on which that retailer sells electricity to small retail customers; and
(b)to, on the same day the retailer publishes the details of the tariffs, terms and conditions in accordance with paragraph (a), give a copy of those details to the Commission.
(1A)The Commission must publish on its Internet site the details of the tariffs, terms and conditions it receives under subsection (1)(b) as soon as practicable after receiving those details.".
(3)In section 36A(2)(a) of the Electricity Industry Act 2000, after "conditions" insert ", including the accessibility of the details of those tariffs and terms and conditions on a specified retailer's Internet site".
(4)Section 36A(5) and section 36A(6) of the Electricity Industry Act 2000 are repealed.
12Deemed contracts with former franchise customers
Section 37(3) of the Electricity Industry Act 2000 is repealed.
13Deemed contracts for supply and sale for relevant customers
Section 39(11) of the Electricity Industry Act 2000 is repealed.
14New section 39A inserted
After section 39 of the Electricity Industry Act 2000 insert—
"39A Commission must report to Minister on electricity supply offers
(1)The Commission must by the end of every calendar year, and at other times the Minister directs in writing, prepare and give to the Minister a report that, for the reporting period, compares and assesses—
(a)licensee standing offers, deemed standing offers in effect during the reporting period, and relevant published offers and other offers of retailers to supply and sell electricity that were available during the reporting period;
(b)variations to licensee standing offers, deemed standing offers, relevant published offers and other offers to supply and sell electricity during the reporting period.
(2)A report under subsection (1)—
(a)may include information about any trends in relation to variations to licensee standing offers, deemed standing offers, relevant published offers and other offers of retailers to supply and sell electricity over a period; and
(b)must also include any other information that the Minister, in writing, requires to be included.
(3)A period referred to in subsection (2)(a) may be greater than the reporting period.
(4)The Commission must publish a report under subsection (1) on its Internet site as soon as practicable after giving it to the Minister.
(5)In this section—
deemed standing offer means the tariffs and terms and conditions constituting a deemed contract for the supply and sale of electricity under section 37 or section 39;
reporting period means the financial year ending in the calendar year in which the Commission must give its report to the Minister.".
15New Division 5B of Part 2 inserted
After Division 5A of Part 2 of the Electricity Industry Act 2000 insert—
"Division 5B—Condition relating to greenhouse gas emissions and energy efficiency benchmarking information
40ODefinitions
In this Division—
bill benchmarking information has the meaning given by section 40P;
provide, in relation to bill benchmarking information, means—
(a)include in, or accompany, a bill issued for the supply or sale of electricity to a residential customer; or
(b)give in another manner approved by the Commission;
residential customer means a person, or a member of a class of persons, to whom an Order under section 40Q(1) applies.
40PMeaning of bill benchmarking information
Bill benchmarking information is information that enables a residential customer to—
(a)make a comparison between—
(i)the use of electricity at the residential customer's place of supply; and
(ii)the average use of electricity at similar places of supply; and
(b)assess whether the use of electricity at the residential customer's place of supply is above, equal or below the average use of electricity at similar places of supply.
40QDeclaration of residential customers
(1)The Governor in Council, by Order published in the Government Gazette, may declare that a person or a class of persons specified in the Order is, for the purposes of section 40R(b), a residential customer or class of residential customers.
(2)An Order under subsection (1) may specify a class of persons by reference to all or any of the following—
(a)the person authorised to sell the electricity;
(b)the purpose for which the electricity is used;
(c)the quantity of electricity used;
(d)the period of use;
(e)the place of supply;
(f)any other specified factor relevant to the sale of electricity.
40RCondition relating to greenhouse gas emissions and energy efficiency benchmarking information
A licence to sell electricity is deemed to include a condition requiring the licensee to—
(a)include in each bill issued to a customer for the supply or sale of electricity the information concerning greenhouse gas emissions connected with the generation of the electricity so supplied or electricity generation in general that the Commission specifies for this purpose in its guidelines; or
(b)provide bill benchmarking information to a residential customer.
40SCommission guidelines relating to greenhouse gas emissions information condition
(1)The Commission must prepare and issue guidelines for the purposes of section 40R(a).
(2)The Commission may amend any guidelines issued under subsection (1).
(3)The Commission must consult with Sustainability Victoria before issuing a guideline under subsection (1) or amending a guideline issued under that subsection.
(4)The Commission must publish each guideline issued under subsection (1) and each amendment of a guideline.".
16New definition inserted into section 46B
In section 46B of the Electricity Industry Act 2000 insert the following definition—
"exempted retailer means a person who—
(a)engages in the supply and sale of electricity; and
(b)is exempted under an Order under section 17 from the requirement to obtain a licence under that Act in respect of that activity;".
17Orders in relation to advanced metering infrastructure
(1)In section 46D(a), (b), (c), (d) and (e) of the Electricity Industry Act 2000, after "relevant licensee" insert "or an exempted retailer".
(2)After section 46D(g) of the Electricity Industry Act 2000 insert—
"(ga)specify the responsibilities of an exempted retailer on being notified of a customer's election to transfer to a retailer or another exempted retailer, to ensure there is no cost impediment or other impediment to that transfer arising from the exempted retailer's provision of advanced metering infrastructure;".
(3)For section 46D(h) of the Electricity Industry Act 2000 substitute—
"(h)provide for the setting and regulation of the prices, fees and charges that a relevant licensee who is a distribution company may charge for or in connection with the costs of, or in relation to, the provision, installation, maintenance and operation of advanced metering infrastructure and associated services and systems;
(i)empower the recovery of the prices, fees and charges referred to in paragraph (h) from—
(i)a retailer who is a relevant licensee or a class or classes of retailers who are relevant licensees supplied electricity by the distribution company, or all customers of a retailer who is a relevant licensee or a class or classes of customers of a retailer who is a relevant licensee and is so supplied;
(ii)an exempted retailer or a class or classes of exempted retailers supplied electricity by the distribution company, or all customers of an exempted retailer or a class or classes of customers of an exempted retailer who is so supplied.".
18General powers in relation to Orders relating to advanced metering infrastructure
After section 46E(2) of the Electricity Industry Act 2000 insert—
"(2A)The provisions of an Order under section 46D may be of general or limited application and may differ according to differences in time, place and circumstances.
(2B)An Order under section 46D may—
(a)include saving and transitional provisions; and
(b)provide that the Commission is not required to take specified actions or make specified determinations under the Order before the commencement of section 5 of the National Electricity (Victoria) Amendment Act 2007.".
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Part 3—Amendment of Gas Industry Act 2001
Division 1—Consumer safety net provisions
19Definitions
In section 3 of the Gas Industry Act 2001 insert the following definitions—
"AEMC means the Australian Energy Market Commission established by section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia;
domestic or small business customer means a person, or a member of a class of persons, to whom an Order under section 42(5) applies;
licensee standing offer means—
(a)the tariffs determined by a licensee under section 42(1) and published in the Government Gazette in accordance with that subsection, as varied from time to time by the licensee as provided for under section 42(3); and
(b)the terms and conditions determined by a licensee and approved by the Commission under section 42(1) and published in the Government Gazette in accordance with that subsection, as varied from time to time by the licensee and approved by the Commission as provided for under section 42(4);
MCE means the Ministerial Council on Energy established on 8 June 2001, being the Council of Ministers with primary carriage of energy matters at a national level comprising the Ministers representing the Commonwealth, the States, the Australian Capital Territory and the Northern Territory, acting in accordance with its own procedures;
regulated tariff standing offer means a licensee standing offer that is subject to an Order under section 21 that is in force;
relevant published offer means the tariffs and terms and conditions on which a specified retailer sells gas to small retail customers that are published in accordance with section 43A;
specified circumstances, in section 43A, means circumstances declared to be specified circumstances by Order under section 7A(1)(c);
specified retailer means a licensee declared to be a specified gas retailer by Order under section 7A(1)(b);
standing offer means—
(a)a licensee standing offer; or
(b)a regulated tariff standing offer;".
20Declaration of classes of customers and retailers and specified circumstances
(1)In section 7A(1)(b) of the Gas Industry Act 2001, for "section 43A." substitute "section 43A;".
(2)After section 7A(1)(b) of the Gas Industry Act 2001 insert—
"(c)declare circumstances to be specified circumstances for the purposes of section 43A.".
(3)In section 7A(3) of the Gas Industry Act 2001, for "this section" substitute "subsection (1)(a)".
(4)After section 7A(3) of the Gas Industry Act 2001 insert—
"(3A)An Order under subsection (1)(b) may specify a licensee by reference to all or any of the following—
(a)the number of small retail customers of the licensee;
(b)the tariffs at, and terms and conditions on, which the licensee sells gas to its small retail customers;
(c)the distribution area of a gas distribution company provided for in the company's licence;
(d)any other specified factor relevant to the sale of gas.
(3B)An Order under subsection (1)(c) may declare circumstances to be specified circumstances by reference to all or any of the following—
(a)the number of small retail customers of a specified retailer;
(b)the tariffs at, and terms and conditions on, which a specified retailer sells gas to its small retail customers;
(c)the distribution area of a gas distribution company provided for in the company's licence;
(d)any other specified factor relevant to the sale of gas.".
21Regulation of tariffs for prescribed customers
(1)After section 21(1) of the Gas Industry Act 2001 insert—
"(1A)The Governor in Council may only make an Order under subsection (1) if under an MCE directed retail competition review the AEMC—
(a)concludes that competition in a market for gas is not effective; and
(b)recommends, in accordance with the MCE's written direction for that review, that price controls on prices for retail gas services be (as the case requires) retained or reintroduced.".
(2)After section 21(2) of the Gas Industry Act 2001 insert—
"(2A)Without limiting the generality of subsection (1), in determining the manner tariffs for the sale of gas to prescribed customers or a class of prescribed customers are to be regulated, the Governor in Council may have regard to the tariffs payable by the prescribed customers or a class of prescribed customers during the review period.".
(3)In section 21(6) of the Gas Industry Act 2001—
(a)in the definition of prescribed customer, for "applies." substitute "applies;";
(b)insert the following definitions—
"MCE directed retail competition review means an MCE directed review (within the meaning of the National Gas (Victoria) Law) under section 79(1)(e) of that Law;
review period means the period—
(a)commencing on the day that the direction of the MCE requiring an MCE directed retail competition review is published in the South Australian Government Gazette under section 79(3) of the National Gas (Victoria) Law; and
(b)ending on the day before the day the Order under subsection (1) is made.".
(4)Section 21(7) of the Gas Industry Act 2001 is repealed.
22Offer to domestic or small business customers
(1)In the heading to section 42 of the Gas Industry Act 2001, after "customers" insert "(licensee standing offers)".
(2)In section 42(3) of the Gas Industry Act 2001, for "The tariffs" substitute "Subject to subsection (3A), the tariffs".
(3)After section 42(3) of the Gas Industry Act 2001 insert—
"(3A)A licensee must not vary tariffs under subsection (3) that have been in effect for less than 6 months.".
(4)In section 42(4) of the Gas Industry Act 2001, for "2 months" substitute "one month".
(5)In section 42(8) of the Gas Industry Act 2001—
(a)in the definition of cooling-off period, for "the contract;" substitute "the contract.";
(b)the definition of domestic or small business customer is repealed.
(6)Section 42(9) of the Gas Industry Act 2001 is repealed.
23New sections 42A to 42E inserted
After section 42 of the Gas Industry Act 2001 insert—
"42A Licensee standing offer tariffs to be given to Commission
Without limiting the generality of section 28, the conditions to which a licence to sell gas by retail, being a licence under which gas may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to, on the same day the licensee publishes tariffs in accordance with section 42—
(a)give a copy of those tariffs to the Commission; and
(b)inform the Commission, in writing, of the day those tariffs, terms and conditions take effect.
42BCommission must publish on Internet licensee standing offer tariffs
The Commission must publish on its Internet site tariffs it receives under section 42A on the day those tariffs take effect.
42CInternet publication and bill notification of licensee standing offers
(1)Without limiting the generality of section 28, the conditions to which a licence to sell gas by retail, being a licence under which gas may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to—
(a)publish, in accordance with guidelines issued under subsection (2), on the licensee's Internet site details of licensee standing offers that are in effect; and
(b)notify, in writing, a domestic or small business customer of the licensee standing offer that is in effect and that applies to gas sold to that customer in or with the customer's first gas bill after that licensee standing offer has taken effect.
(2)The Commission must prepare and issue guidelines for the purposes of this section specifying—
(a)the manner of publication of details of licensee standing offers that are in effect, including the accessibility of those licensee standing offers on a licensee's Internet site; and
(b)the nature of the details to be published; and
(c)any other matters that the Commission considers relevant.
42DRequired tariff information and licensee contact information to be published in newspaper
(1)Without limiting the generality of section 28, the conditions to which a licence to sell gas by retail, being a licence under which gas may be sold to domestic or small business customers, is subject, include a condition requiring the licensee to, on the required day, publish in a newspaper circulating generally throughout Victoria—
(a)required tariff information; and
(b)the licensee's contact information.
(2)In this section—
licensee's contact information means all of the following information—
(a)the licensee's telephone number;
(b)the licensee's fax number;
(c)the licensee's postal address;
(d)the Internet address of the licensee's Internet site;
required day means the day the licensee varies a tariff or tariffs for the supply and sale of gas by notice published in the Government Gazette in accordance with section 42(3);
required tariff variation information means—
(a)tariff variation information; and
(b)the date a tariff or tariffs varied in accordance with section 42(3) takes or take effect; and
(c)a description of the tariff or tariffs referred to in paragraph (b); and
(d)the main reasons for the variation of a tariff or tariffs referred to in paragraph (b);
tariff variation information means—
(a)in the case of a single tariff for the supply and sale of gas that is varied in accordance with section 42(3), the weighted tariff variation relating to that tariff determined in accordance with an Order under section 42E;
(b)in the case where more than one tariff for the supply and sale of gas is varied in accordance with section 42(3) at the same time in accordance with that section, the weighted tariff variation relating to those tariffs determined in accordance with an Order under section 42E.
42EOrder specifying method and variables to be used to determine weighted tariff variation
The Governor in Council, by Order published in the Government Gazette, may specify the method and variables to be used to determine the weighted tariff variation for the purposes of paragraphs (a) and (b) of the definition of tariff variation information in section 42D(2).".
24Terms and conditions of contracts for sale of gas to certain customers
Section 43(7) of the Gas Industry Act 2001 is repealed.
25Publication of terms and conditions of sale of gas (relevant published offers)
(1)In the heading to section 43A of the Gas Industry Act 2001—
(a)after "of" (where first occurring) insert "tariffs,"; and
(b)after "gas" insert "(relevant published offers)".
(2)For section 43A(1) of the Gas Industry Act 2001 substitute—
"(1)Without limiting the generality of section 28, the conditions to which a licence to sell gas by retail issued to a specified gas retailer is subject include a condition requiring the specified gas retailer in specified circumstances—
(a)to publish on its Internet site, in accordance with this section, details of the tariffs and terms and conditions on which that retailer sells gas to small retail customers; and
(b)to, on the same day the specified gas retailer publishes the details of the tariffs, terms and conditions in accordance with paragraph (a), give a copy of those details to the Commission.
(1A)The Commission must publish on its Internet site the details of the tariffs, terms and conditions it receives under subsection (1)(b) as soon as practicable after receiving those details.".
(3)In section 43A(2)(a) of the Gas Industry Act 2001, after "conditions" insert ", including the accessibility of the details of those tariffs and terms and conditions on a specified gas retailer's Internet site".
(4)Section 43A(5) and section 43A(6) of the Gas Industry Act 2001 are repealed.
26Deemed contracts with former franchise customers
Section 44(3) of the Gas Industry Act 2001 is repealed.
27Deemed contracts for supply and sale for relevant customers
Section 46(11) of the Gas Industry Act 2001 is repealed.
28New section 47 inserted
After section 46 of the Gas Industry Act 2001 insert—
"47 Commission must report to Minister on gas supply offers
(1)The Commission must by the end of every calendar year, and at other times the Minister directs in writing, prepare and give to the Minister a report that, for the reporting period, compares and assesses—
(a)licensee standing offers, deemed standing offers in effect during the reporting period, and relevant published offers and other offers to supply and sell gas by retail that were available during the reporting period;
(b)variations to licensee standing offers, deemed standing offers, relevant published offers and other offers to supply and sell gas by retail during the reporting period.
(2)A report under subsection (1)—
(a)may include information about any trends in relation to variations to licensee standing offers, deemed standing offers, relevant published offers and other offers to supply and sell gas by retail over a period; and
(b)must also include any other information that the Minister, in writing, requires to be included.
(3)A period referred to in subsection (2)(a) may be greater than the reporting period.
(4)The Commission must publish a report under subsection (1) on its Internet site as soon as practicable after giving it to the Minister.
(5)In this section—
deemed standing offer means the tariffs and terms and conditions constituting a deemed contract for the supply and sale of gas under section 44 or section 46;
reporting period means the financial year ending in the calendar year in which the Commission must give its report to the Minister.".
Division 2—Other amendments
29Repeal of Tariff Order provision
Section 20A of the Gas Industry Act 2001 is repealed.
30Retail gas market rules
(1)In section 60(1) of the Gas Industry Act 2001, after "market" (where secondly occurring) insert "to facilitate the operation of a fully contestable market for gas".
(2)After section 60(2) of the Gas Industry Act 2001 insert—
"(2A)Retail gas market rules may also include rules relating to the resolution of disputes under or in relation to those rules between persons, including provisions—
(a)requiring the persons in dispute to resolve the dispute in accordance with the rules before seeking any other remedy in relation to the dispute from a court or otherwise;
(b)providing for the appointment of a person, in accordance with the rules, to manage and facilitate the resolution of such disputes;
(c)providing for the appointment, by a person referred to in paragraph (a), of persons (including mediators and arbitrators) to resolve such disputes;
(d)providing for the procedure for the conduct and resolution of such disputes;
(e)relating to the application and effect of decisions of persons appointed to resolve such disputes;
(f)providing for the reference, to a court, of questions of law arising in respect of the resolution of such disputes;
(g)conferring an immunity on, or limiting the liability of, persons appointed to resolve such disputes.".
31Principles for retail gas market rules
In section 61(1) of the Gas Industry Act 2001, for "this Division" substitute "section 65".
32New section 62 substituted
For section 62 of the Gas Industry Act 2001 substitute—
"62 Retail gas market rules—gas transmission system and gas distribution system
(1)The Governor in Council, by Order published in the Government Gazette, may make retail gas market rules in accordance with this Division for the gas transmission system and gas distribution system.
(2)Rules made under an Order under subsection (1) come into operation on the day the Order is published in the Government Gazette or a later day that is specified in the Order.
Note
See also section 237.".
33Consequential amendment to reference to VENCorp developed retail gas market rules
In section 63(1) of the Gas Industry Act 2001, for "developed by VENCorp" substitute "made by the Governor in Council by Order".
34Consequential section cross-reference amendment
In section 64(b) of the Gas Industry Act 2001, for "sections 62 and 63" substitute "section 63".
35Approval of rules by Commission
In section 65(1) of the Gas Industry Act 2001, for "this Division" substitute "section 63".
36Commission directions to VENCorp in relation to supplier of last resort trigger events
(1)In section 67A(1) of the Gas Industry Act 2001 omit "VENCorp" (where secondly occurring).
(2)In section 67A(2) of the Gas Industry Act 2001 omit "VENCorp" (where first occurring).
(3)In section 67A(3) of the Gas Industry Act 2001, the definition of VENCorp retail market rules is repealed.
(4)In section 67A(3) of the Gas Industry Act 2001—
(a)insert the following definition—
"retail gas market rules means retail gas market rules made by Order under section 62;";
(b)in the definition of trigger event, for "51A;" substitute "51A.".
37Costs of VENCorp
(1)In section 69(3) of the Gas Industry Act 2001, for "Commission" substitute "AER".
(2)Section 69(4) of the Gas Industry Act 2001 is repealed.
38New section 237 inserted
After section 236 of the Gas Industry Act 2001 insert—
"237 Transitional provision—Retail gas market rules developed by VENCorp
(1)On the commencement of section 32 of the Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008, VENCorp retail gas market rules that are in effect immediately before that commencement are to be taken to be retail gas market rules made by the Governor in Council by Order under section 62.
(2)In this section—
VENCorp retail gas market rules means rules—
(a)developed by VENCorp under section 62 (as in force immediately before the commencement of section 32 of the Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008); and
(b)approved by the Commission under section 65 (as in force immediately before the commencement of section 35 of the Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008).".
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Part 4—Amendment of Other Energy Legislation
Division 1—Amendment of Gas Safety Act 1997
39Definitions
In section 3(1) of the Gas Safety Act 1997, in the definition of standard gas installation, for paragraph (b)(iv) substitute—
"(iv)which has a maximum metering pressure that is less than the prescribed maximum metering pressure or a maximum operating pressure that is less than the prescribed maximum operating pressure; and
(v)which has a number of gas supply points that is less than the prescribed number of gas supply points;".
40Regulations
(1)After section 118(1)(r) of the Gas Safety Act 1997 insert—
"(ra)requiring the keeping of records in relation to the service, maintenance, repair or modification of a complex gas installation or a Type B appliance;".
(2)In section 118(2)(c)(ii) of the Gas Safety Act 1997, after "as" insert "published or".
Division 2—Amendment of Electricity Safety Act 1998
41Certificates of approval, acceptance or compliance
(1)Section 54(b) of the Electricity Safety Act 1998 is repealed.
(2)Section 56 of the Electricity Safety Act 1998 is repealed.
(3)In section 153(c) of the Electricity Safety Act 1998 omit "the acceptance of electrical equipment,".
(4)In section 153(c)(i), (ii), (iii), (iv) and (vii) of the Electricity Safety Act 1998, for "approval, acceptance" substitute "approval".
(5)In section 153(c)(v) of the Electricity Safety Act 1998 omit "or acceptance".
(6)For section 153(c)(vi) of the Electricity Safety Act 1998 substitute—
"(vi)the renewal, transfer and duration of certificates of approval or compliance;".
(7)In section 153(e)(i) and (ii) of the Electricity Safety Act 1998 omit "or acceptance".
(8)For section 153(e)(iii) and (iv) of the Electricity Safety Act 1998 substitute—
"(iii)applications for certificates of approval or compliance, or the renewal, modification or transfer of certificates of approval or compliance.".
42Incorporation by reference by regulations
In section 157(2)(c)(ii) of the Electricity Safety Act 1998, after "as" insert "published or".
Division 3—Amendment of National Electricity (Victoria) Amendment Act 2007
43ESC AMI determination processes not completed before regulatory handover to AER
In section 5 of the National Electricity (Victoria) Amendment Act 2007, after proposed section 27 of the National Electricity (Victoria) Act 2005 insert—
"27A AER determinations under the AMI Order
(1)Without limiting this Part, on and from the transitional period commencement date, the AER must take action under the AMI Order as if it were the ESC, including the making of a determination under the AMI Order.
(2)For the purposes of this section—
(a)any Pricing Proposal (as defined in the AMI Order) made before the transitional period commencement date, and any information provided to the ESC by a distributor (as defined in the AMI Order) in connection with, or for the purposes of, a Pricing Proposal must be taken to be provided to the AER; and
(b)any Application (as defined in the AMI Order) made before the transitional period commencement date, and any information provided to the ESC by a distributor in connection with or for the purposes of an Application must be taken to be made or provided to the AER; and
(c)all actions taken, or things done, by the ESC before the transitional period commencement date in respect of a Pricing Proposal or an Application must be taken to be actions taken, or things done, by the AER; and
(d)information provided to the ESC by a distributor before the transitional period commencement date in connection with, or for the purposes of, a Pricing Proposal or an Application may be used and relied on by it and the AER in connection with, or for the purposes of, any determination that the AER must make under the AMI Order (whether or not the determination is a determination with respect to the Pricing Proposal or Application).
(3)Subsection (2)(c) does not limit the actions that the AER may take or the things that the AER may do for the purpose of making a determination under the AMI Order.
(4)Subsection (2)(d) does not limit the information that—
(a)the AER may request from a distributor in accordance with the AMI Order for the purpose of making a determination under the AMI Order; or
(b)a distributor may be required to provide to the AER under the AMI Order for the purpose of enabling the AER to make a determination under the AMI Order.".
44Appeals against certain decisions or actions of the AER
(1)In section 5 of the National Electricity (Victoria) Amendment Act 2007, in proposed section 29(1)(c)(ii)(B) of the National Electricity (Victoria) Act 2005, for "Victoria." substitute "Victoria; or".
(2)In section 5 of the National Electricity (Victoria) Amendment Act 2007, after proposed section 29(1)(c) of the National Electricity (Victoria) Act 2005 insert—
"(d)a decision or determination under the AMI Order.".
Division 4—Amendment of National Gas (Victoria) Act 2008
45Transitioned Victorian distribution RIOs
(1)For section 37(2)(d) of the National Gas (Victoria) Act 2008 substitute—
"(d)subject to section 38, prepare or serve a regulatory information notice that is inconsistent with the transitioned Victorian distribution RIO (as the transitioned Victorian distribution RIO applies to a Victorian transitioned access arrangement before the first NGL revisions day).".
(2)In section 37(3) of the National Gas (Victoria) Act 2008, for "day revisions to a Victorian transitioned access arrangement that relates to pipelines services provided by that service provider and that are first approved or made in accordance with the National Gas (Victoria) Law and the National Gas Rules after the NGL commencement day take effect" substitute "first NGL revisions day".
(3)For section 37(4) of the National Gas (Victoria) Act 2008 substitute—
"(4)In this section—
first NGL revisions day means the day revisions to a Victorian transitioned access arrangement that relate to pipelines services provided by that service provider, first approved or made in accordance with the National Gas (Victoria) Law and the National Gas Rules after the NGL commencement day, take effect;
Victorian transitioned access arrangement means a revised gas distribution access arrangement that is deemed to be an AER approved full access arrangement under section 25.".
46Matters to be taken into account when AER makes or prepares regulatory information instruments
After section 38(3) of the National Gas (Victoria) Act 2008 insert—
"(4)This section expires on 1 January 2018.".
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Part 5—Repeal of Amending Act
47Repeal of Act
This Act is repealed on 1 July 2011.
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
Minister's second reading speech—
Legislative Assembly: 12 September 2008
Legislative Council: 9 October 2008
The long title for the Bill for this Act was "A Bill for an Act to amend the Electricity Industry Act 2000, the Gas Industry Act 2001, the Gas Safety Act 1997, the Electricity Safety Act 1998, the National Electricity (Victoria) Amendment Act 2007, the National Gas (Victoria) Act 2008 and for other purposes."
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