Untitled document
Energy Legislation (Amendment) Act 2004
Act No. 91/2004
table of provisions
Section Page
Part 1—Preliminary
1.Purposes
2.Commencement
Part 2—Amendments to Electricity Industry Act 2000
3.Definitions
4.New section 7AA inserted
7AA.Declaration of classes of customers and retailers
5.Regulation of tariffs for prescribed customers
6.Condition restricting sale to certain customers
7.Offer to domestic or small business customers
8.Terms and conditions of contracts for sale of electricity to certain customers
9.New section 36A inserted
36A.Publication of terms and conditions of sale of electricity
10.New section 37 substituted
37.Deemed contracts with former franchise customers
11.Repeal of section 38
12.Deemed contracts for supply and sale for relevant customers
13.New sections 40B, 40C, 40D and 40E inserted
40B.Compensation for wrongful disconnection
40C.Prohibition on fees for late payment
40D.Regulation of exit fees
40E.Regulation of pre-payment meters
Part 3—Amendments to Gas Industry Act 2001
14.Definitions
15.New Division 1A inserted in Part 2
Division 1A—Declaration of Small Retail Customers and Retailers
7A.Declaration of small retail customers and retailers
16.Regulation of tariffs for prescribed customers
17.Prices and charges for supply of gas to bulk hot water systems
18.Offer to domestic or small business customers
19.Terms and conditions of contracts for sale of gas to certain customers
20.New section 43A inserted
43A.Publication of terms and conditions of sale of gas
21.Deemed contracts with former franchise customers
22.Repeal of section 45
23.Deemed contracts for supply and sale for relevant customers
24.New sections 48A, 48B, 48C and 48D inserted
48A.Compensation for wrongful disconnection
48B.Prohibition on fees for late payment
48C.Regulation of exit fees
48D.Regulation of pre-payment meters
25.Prohibited interests
Part 4—Amendment to Essential Services Commission Act 2001
26.Expiry of Part 6
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Endnotes
Energy Legislation (Amendment) Act 2004
[Assented to 7 December 2004]
The Parliament of Victoria enacts as follows:
Part 1Preliminary—
1.Purposes
The main purposes of this Act are—
(a)to amend the Electricity Industry Act 2000—
(i)to extend the operation of the customer safety net provisions; and
(ii)to make further provision to protect customers of electricity retailers;
(b)to amend the Gas Industry Act 2001—
(i)to extend the operation of the customer safety net provisions; and
(ii)to make further provision to protect customers of gas retailers;
(c)to amend the Essential Services Commission Act 2001 to extend the period before Part 6 of that Act expires.
2.Commencement
(1)This Act (except sections 9 and 20) comes into operation on the day after the day on which it receives the Royal Assent.
(2)Sections 9 and 20 come into operation on 1 March 2005.
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Part 2Amendments to Electricity Industry Act 2000—
3.Definitions
In section 3 of the Electricity Industry Act 2000 insert the following definitions—
' "electricity bill" means a bill or account issued by a licensee to a customer for the supply or sale of electricity;
"small retail customer" in section 36A, 40C, 40D or 40E means a person in a class of persons declared to be small retail customers for the purposes of that section by Order under section 7AA;'.
4.New section 7AA inserted
After section 7A of the Electricity Industry Act 2000 insert—
"7AA.Declaration of classes of customers and retailers
(1)The Governor in Council may by Order published in the Government Gazette—
(a)declare a class or classes of persons to be small retail customers for the purposes of section 36A, 40C, 40D or 40E;
(b)declare a licensee to be a specified retailer for the purposes of section 36A.
(2)An Order under sub-section (1)(a) may declare a different class or classes of persons to be small retail customers for the purposes of each section specified in that paragraph.
(3)An Order under this section 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)the nature of the contract for supply of electricity;
(g)financial circumstances;
(h)any other specified factor of any kind.
(4)An Order under this section may confer powers and functions on, and leave any matter to be decided by, the Commission.".
5.Regulation of tariffs for prescribed customers
In section 13(7) of the Electricity Industry Act 2000 for "31 December 2004" substitute "31 December 2007".
6.Condition restricting sale to certain customers
In section 23(4) of the Electricity Industry Act 2000 for "31 December 2004" substitute "31 December 2007".
7.Offer to domestic or small business customers
(1)After section 35(4) of the Electricity Industry Act 2000 insert—
"(4A)A person who is a domestic or small business customer may accept an offer by a licensee under this section even if the person was previously a party to a contract for the supply or sale of electricity on different terms and conditions with the same licensee or another licensee.".
(2)In section 35(9) of the Electricity Industry Act 2000 for "31 December 2004" substitute "31 December 2007".
8.Terms and conditions of contracts for sale of electricity to certain customers
(1)After section 36(1) of the Electricity Industry Act 2000 insert—
"(1A)In deciding terms and conditions that specify the circumstances in which the supply of electricity to premises may be disconnected, the Commission must have regard to—
(a)the essential nature of the electricity supply; and
(b)community expectations that ongoing access to electricity supply will be available; and
(c)the principle that the electricity supply to premises should only be disconnected as a last resort.".
(2)In section 36(7) of the Electricity Industry Act 2000 for "31 December 2004" substitute "31 December 2007".
9.New section 36A inserted
After section 36 of the Electricity Industry Act 2000 insert—
'36A.Publication of terms and conditions of sale of electricity
(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 retailer 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.
(2)The Commission must prepare and issue guidelines for the purposes of this section specifying—
(a)the manner of publication of the tariffs and terms and conditions; and
(b)the nature of the details to be published; and
(c)any other matters that the Commission considers relevant.
(3)A specified retailer must comply with the guidelines issued under sub-section (2) when complying with the licence condition in sub-section (1).
(4)This section does not apply to tariffs and terms and conditions published under section 35.
(5)In this section "specified retailer" means a retailer declared to be a specified retailer by Order under section 7AA.
(6)This section expires on 31 December 2007.'.
10.New section 37 substituted
For section 37 of the Electricity Industry Act 2000 substitute—
"37.Deemed contracts with former franchise customers
(1)If a person—
(a)was a franchise customer within the meaning of the Electricity Industry Act 1993 immediately before 1 January 2001; and
(b)has not entered into a new contract with a licensee which takes effect on or after that date—
there is deemed to be a contract between that person and the licensee of which the person was a customer immediately before that date for the supply and sale of electricity at the tariffs and on the terms and conditions determined and published by that licensee under section 35.
(2)The deemed contract continues until—
(a)the contract is terminated; or
(b)if the customer enters into a new contract for the purchase of electricity from the licensee in respect of the same premises, on the date of taking effect of that new contract—
whichever occurs first.
(3)This section expires on 31 December 2007.".
11.Repeal of section 38
Section 38 of the Electricity Industry Act 2000 is repealed.
12.Deemed contracts for supply and sale for relevant customers
(1)For section 39(1)(a) of the Electricity Industry Act 2000 substitute—
"(a)at the tariffs and on the terms and conditions determined and published by that licensee under section 35; and".
(2)For section 39(2)(d) of the Electricity Industry Act 2000 substitute—
"(d)at the tariffs and on the terms and conditions determined and published by that licensee under section 35; and".
(3)After section 39(6) of the Electricity Industry Act 2000 insert—
"(6A)A person who is a relevant customer may be a party to a deemed contract under this section even if the person has previously been a party to a contract for the supply or sale of electricity to different premises on different terms and conditions with the same licensee or another licensee.".
(4)In section 39(11) of the Electricity Industry Act 2000 for "31 December 2004" substitute "31 December 2007".
13.New sections 40B, 40C, 40D and 40E inserted
After section 40A of the Electricity Industry Act 2000 insert—
'40B.Compensation for wrongful disconnection
(1)Without limiting the generality of section 20(2) or (3) or section 21, the conditions to which a licence to sell electricity is subject include a condition requiring the licensee to make a payment of the prescribed amount to a relevant customer in accordance with this section if the licensee—
(a)disconnects the supply of electricity to the premises of that customer; and
(b)fails to comply with the terms and conditions of the contract specifying the circumstances in which the supply of electricity to those premises may be disconnected.
(2)A payment under a condition under sub-section (1) may be made directly to the customer or by way of rebate on the customer's electricity bill.
(3)A payment under a condition under sub-section (1) must be made as soon as practicable after the supply of electricity is reconnected to the premises of the relevant customer.
(4)Nothing in this section affects any other right any person or body may have to take action against a licensee in relation to a disconnection of a supply of electricity.
(5)In this section—
"prescribed amount" means—
(a)the amount prescribed by the regulations for the purposes of this section; or
(b)if no amount is prescribed by the regulations, $250 for each whole day that the supply of electricity is disconnected and a pro rata amount for any part of a day that the supply of electricity is disconnected;
"relevant customer" has the same meaning as in section 36.
40C.Prohibition on fees for late payment
(1)A term or condition in a contract for the supply or sale of electricity by a licensee to a small retail customer (whether entered into before or after the commencement of this section) is void to the extent that it permits the licensee to charge the customer a fee or charge for late payment of an electricity bill.
(2)Nothing in this section prevents a licensee from offering an incentive or rebate to a small retail customer for paying an electricity bill on or before the due date for payment.
(3)This section applies despite anything to the contrary in any terms and conditions that form part or are deemed by this Act to form part of the contract between a licensee and a small retail customer.
40D.Regulation of exit fees
(1)The Governor in Council may by Order published in the Government Gazette prohibit or regulate the imposition by a licensee under a contract for the supply or sale of electricity to a small retail customer of an exit fee on the termination of that contract.
(2)An Order under sub-section (1) may specify terms and conditions applying to the imposition of exit fees.
(3)An Order under sub-section (1) may also provide that a contract between a small retail customer and a licensee for the supply or sale of electricity is to include a condition providing that the small retail customer may terminate the contract—
(a)without notice, if the contract is a deemed contract under section 37 or 39; or
(b)in any other case, by giving the required period of notice to the licensee.
(4)If an Order under sub-section (1) requires the inclusion of a condition referred to in sub-section (3) in a contract for the supply or sale of electricity, that condition is deemed to form part of that contract.
(5)Nothing in this section or an Order under this section prevents a licensee from offering an incentive or rebate to a small retail customer to remain a customer of the licensee.
(6)An Order under sub-section (1) has effect from the date specified in the Order.
(7)Sections 53 and 54 of the Essential Services Commission Act 2001 apply to an Order under sub-section (1) as if the Order were a determination made by the Commission under that Act.
(8)This section applies despite anything to the contrary in any terms and conditions that form part or are deemed by this Act to form part of the contract between a licensee and a small retail customer.
(9)In this section—
"exit fee" means a fee or charge payable on the termination of a contract but does not include any fee or charge for electricity supplied under the contract;
"required period of notice" means the longer of—
(a)the period of notice agreed between the licensee and the small retail customer; and
(b)the period of notice specified in an Order under sub-section (1).
40E.Regulation of pre-payment meters
(1)The Governor in Council may by Order published in the Government Gazette prohibit or regulate the implementation by a licensee of a pre-payment meter scheme in respect of the licensee's small retail customers.
(2)An Order under sub-section (1) regulating the implementation of a pre-payment meter scheme may specify terms and conditions applying to that scheme.
(3)An Order under sub-section (1) has effect from the date specified in the Order.
(4)Sections 53 and 54 of the Essential Services Commission Act 2001 apply to an Order under sub-section (1) as if the Order were a determination made by the Commission under that Act.
(5)This section applies despite anything to the contrary in any terms and conditions that form part or are deemed by this Act to form part of the contract between a licensee and a small retail customer.
(6)The Minister must cause a copy of each Variation Order to be laid before each House of Parliament within 6 sitting days of that House following the making of the Order.
(7)A Variation Order is subject to disallowance by a House of Parliament, and sections 23, 24 and 25 of the Subordinate Legislation Act 1994 apply as if the Variation Order were a statutory rule within the meaning of that Act.
(8)In this section—
"pre-payment meter" means a meter that allows electricity to be sold or supplied under an arrangement that allows the customers to make full payment for the electricity before it is consumed;
"Variation Order" means an Order made in substitution for or amending or revoking an Order made under sub-section (1).'.
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Part 3Amendments to Gas Industry Act 2001—
14.Definitions
In section 3 of the Gas Industry Act 2001 insert the following definitions—
' "gas bill" means a bill or account issued by a licensee to a customer for the supply or sale of gas;
"small retail customer" in section 43A, 48B, 48C or 48D means a person in a class of persons declared to be small retail customers for the purposes of that section by Order under section 7A;'.
15.New Division 1A inserted in Part 2
After Division 1 of Part 2 of the Gas Industry Act 2001 insert—
"Division 1ADeclaration of Small Retail Customers and Retailers—
7A.Declaration of small retail customers and retailers
(1)The Governor in Council may by Order published in the Government Gazette—
(a)declare a class or classes of persons to be small retail customers for the purposes of section 43A, 48B, 48C or 48D;
(b)declare a licensee to be a specified gas retailer for the purposes of section 43A.
(2)An Order under sub-section (1)(a) may declare a different class or classes of persons to be small retail customers for the purposes of each section specified in that paragraph.
(3)An Order under this section may specify a class of persons by reference to all or any of the following—
(a)the person authorised to sell the gas;
(b)the purpose for which the gas is used;
(c)the quantity of gas used;
(d)the period of use;
(e)the place of supply;
(f)the nature of the contract for supply of gas;
(g)financial circumstances;
(h)any other specified factor of any kind.
(4)An Order under this section may confer powers and functions on, and leave any matter to be decided by, the Commission.".
16.Regulation of tariffs for prescribed customers
For section 21(7) of the Gas Industry Act 2001 substitute—
"(7)This section, and any Order made under this section and in force immediately before 31 December 2007, expire on 31 December 2007.".
17.Prices and charges for supply of gas to bulk hot water systems
After section 29(m) of the Gas Industry Act 2001 insert—
"(ma)in the case of a licence issued to a gas retailer, specifying methods and principles to be applied by the licensee in determining prices and charges for the supply of gas to bulk hot water systems and requiring the licensee to publish those prices or charges;".
18.Offer to domestic or small business customers
(1)After section 42(4) of the Gas Industry Act 2001 insert—
"(4A)A person who is a domestic or small business customer may accept an offer by a licensee under this section even if the person was previously a party to a contract for the supply or sale of gas on different terms and conditions with the same licensee or another licensee.".
(2)In section 42(9) of the Gas Industry Act 2001 for "31 December 2004" substitute "31 December 2007".
19.Terms and conditions of contracts for sale of gas to certain customers
(1)After section 43(1) of the Gas Industry Act 2001 insert—
"(1A)In deciding terms and conditions that specify the circumstances in which the supply of gas to premises may be disconnected, the Commission must have regard to—
(a)the essential nature of the gas supply; and
(b)community expectations that ongoing access to gas supply will be available; and
(c)the principle that the gas supply to premises should only be disconnected as a last resort.".
(2)In section 43(7) of the Gas Industry Act 2001 for "31 December 2004" substitute "31 December 2007".
20.New section 43A inserted
After section 43 of the Gas Industry Act 2001 insert—
'43A.Publication of terms and conditions of sale of gas
(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 to publish on its Internet site, in accordance with this section, details of the tariffs and terms and conditions on which the specified gas retailer sells gas to small retail customers.
(2)The Commission must prepare and issue guidelines for the purposes of this section specifying—
(a)the manner of publication of the tariffs and terms and conditions; and
(b)the nature of the details to be published; and
(c)any other matters that the Commission considers relevant.
(3)A specified gas retailer must comply with the guidelines issued under sub-section (2) when complying with the licence condition in sub-section (1).
(4)This section does not apply to tariffs and terms and conditions published under section 42.
(5)In this section "specified gas retailer" means a licensee declared to be a specified gas retailer by Order under section 7A.
(6)This section expires on 31 December 2007.'.
21.Deemed contracts with former franchise customers
(1)For section 44(1) of the Gas Industry Act 2001 substitute—
"(1)If a person—
(a)was a franchise customer within the meaning of the Gas Industry Act 1994 immediately before 1 September 2001; and
(b)has not entered into a new contract with a licensee which takes effect on or after that date—
there is deemed to be a contract between that person and the licensee of which the person was a customer immediately before that date for the supply and sale of gas at the tariffs and on the terms and conditions determined and published by that licensee under section 42.".
(2)In section 44(3) of the Gas Industry Act 2001 for "31 December 2004" substitute "31 December 2007".
22.Repeal of section 45
Section 45 of the Gas Industry Act 2001 is repealed.
23.Deemed contracts for supply and sale for relevant customers
(1)For section 46(1)(a) of the Gas Industry Act 2001 substitute—
"(a)at the tariffs and on the terms and conditions determined and published by that licensee under section 42; and".
(2)For section 46(2)(d) of the Gas Industry Act 2001 substitute—
"(d)at the tariffs and on the terms and conditions determined and published by that licensee under section 42; and".
(3)After section 46(6) of the Gas Industry Act 2001 insert—
"(6A)A person who is a relevant customer may be a party to a deemed contract under this section even if the person has previously been a party to a contract for the supply or sale of gas to different premises on different terms and conditions with the same licensee or another licensee.".
(4)In section 46(11) of the Gas Industry Act 2001 for "31 December 2004" substitute "31 December 2007".
24.New sections 48A, 48B, 48C and 48D inserted
After section 48 of the Gas Industry Act 2001 insert—
'48A.Compensation for wrongful disconnection
(1)Without limiting the generality of section 28, the conditions to which a licence to sell gas by retail is subject include a condition requiring the licensee to make a payment of a prescribed amount to a relevant customer in accordance with this section if the licensee—
(a)disconnects the supply of gas to the premises of that customer; and
(b)fails to comply with the terms and conditions of the contract specifying the circumstances in which the supply of gas to those premises may be disconnected.
(2)A payment under sub-section (1) may be made directly to the customer or by way of rebate on the customer's gas bill.
(3)A payment under a condition under sub-section (1) must be made as soon as practicable after the supply of gas is reconnected to the premises of the relevant customer.
(4)Nothing in this section affects any other right any person or body may have to take action against a licensee in relation to a disconnection of a supply of gas.
(5)In this section—
"prescribed amount" means—
(a)the amount prescribed by the regulations for the purposes of this section; or
(b)if no amount is prescribed by the regulations, $250 for each whole day that the supply of gas is disconnected and a pro rata amount for any part of a day that the supply of gas is disconnected;
"relevant customer" has the same meaning as in section 43.
48B.Prohibition on fees for late payment
(1)A term or condition in a contract for the supply or sale of gas by retail by a licensee to a small retail customer (whether entered into before or after the commencement of this section) is void to the extent that it permits the licensee to charge the customer a fee or charge for late payment of a gas bill.
(2)Nothing in this section prevents a licensee from offering an incentive or rebate to a small retail customer for paying a gas bill on or before the due date for payment.
(3)This section applies despite anything to the contrary in any terms and conditions that form part or are deemed by this Act to form part of the contract between a licensee and a small business customer.
48C.Regulation of exit fees
(1)The Governor in Council may by Order published in the Government Gazette prohibit or regulate the imposition by a licensee under a contract for the supply or sale of gas by retail to a small retail customer of an exit fee on the termination of that contract.
(2)An Order under sub-section (1) may specify terms and conditions applying to the imposition of exit fees.
(3)An Order under sub-section (1) may also provide that a contract between a small retail customer and a licensee for the supply or sale of gas by retail is to include a condition providing that the small retail customer may terminate the contract—
(a)without notice, if the contract is a deemed contract under section 44 or 46; or
(b)in any other case, by giving the required period of notice to the licensee.
(4)If an Order under sub-section (1) requires the inclusion of a condition referred to in sub-section (3) in a contract for the supply or sale of gas, that condition is deemed to form part of that contract.
(5)Nothing in this section or an Order under this section prevents a licensee from offering an incentive or rebate to a small retail customer to remain a customer of the licensee.
(6)An Order under sub-section (1) has effect from the date specified in the Order.
(7)Sections 53 and 54 of the Essential Services Commission Act 2001 apply to an Order under sub-section (1) as if the Order were a determination made by the Commission under that Act.
(8)This section applies despite anything to the contrary in any terms and conditions that form part or are deemed by this Act to form part of the contract between a licensee and a small retail customer.
(9)In this section—
"exit fee" means a fee or charge payable on the termination of a contract but does not include any fee or charge for gas supplied under the contract;
"required period" means the longer of—
(a)the period of notice agreed between the licensee and the small retail customer; and
(b)the period of notice in an Order under sub-section (1).
48D.Regulation of pre-payment meters
(1)The Governor in Council may by Order published in the Government Gazette prohibit or regulate the implementation by a licensee of a pre-payment meter scheme in respect of the licensee's small retail customers.
(2)An Order under sub-section (1) regulating the implementation of a pre-payment meter scheme may specify terms and conditions applying to that scheme.
(3)An Order under sub-section (1) has effect from the date specified in the Order.
(4)Sections 53 and 54 of the Essential Services Commission Act 2001 apply to an Order under sub-section (1) as if the Order were a determination made by the Commission under that Act.
(5)This section applies despite anything to the contrary in any terms and conditions that form part or are deemed by this Act to form part of the contract between a licensee and a small retail customer.
(6)The Minister must cause a copy of each Variation Order to be laid before each House of Parliament within 6 sitting days of that House following the making of the Order.
(7)A Variation Order is subject to disallowance by a House of Parliament, and sections 23, 24 and 25 of the Subordinate Legislation Act 1994 apply as if the Variation Order were a statutory rule within the meaning of that Act.
(8)In this section—
"pre-payment meter" means a meter that allows gas to be sold or supplied under an arrangement that allows the customers to make full payment for the gas before it is consumed;
"Variation Order" means an Order made in substitution for or amending or revoking an Order made under sub-section (1).'.
25.Prohibited interests
(1)For section 128(2)(a) of the Gas Industry Act 2001 substitute—
"(a)if—
(i)the significant producer has a controlling interest or a substantial interest in a gas retailer; and
(ii)the gas retailer is permitted by its licence or an Order under section 24 to sell gas to customers other than customers who purchase, or whom the Commission is satisfied on reasonable grounds will purchase, not less than 500 000 GJ of gas per annum from a supply point within the meaning of the Gas Industry (Residual Provisions) Act 1994;".
(2)For section 128(3)(b) of the Gas Industry Act 2001 substitute—
"(b)if—
(i)the person has a controlling interest or a substantial interest in a gas retailer; and
(ii)the gas retailer is permitted by its licence or an Order under section 24 to sell gas to customers other than customers who purchase, or whom the Commission is satisfied on reasonable grounds will purchase, not less than 500 000 GJ of gas per annum from a supply point within the meaning of the Gas Industry (Residual Provisions) Act 1994;".
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Part 4Amendment to Essential Services Commission Act 2001—
26.Expiry of Part 6
In section 47 of the Essential Services Commission Act 2001 for "31 December 2004" substitute "31 December 2007".
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Endnotes
Minister's second reading speech—
Legislative Assembly: 4 November 2004
Legislative Council: 30 November 2004
The long title for the Bill for this Act was "to amend the Electricity Industry Act 2000, the Gas Industry Act 2001 and the Essential Services Commission Act 2001 and for other purposes."
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