Untitled document

Electricity Industry (Wind Energy Development) Act 2004

Act No. 86/2004

table of provisions

Section  Page

1.Purposes

2.Commencement

3.New Division 2A of Part 2 inserted

Division 2A—Pricing for the Facilitation of the Development of Wind Energy Generation Facilities

15B.Definitions

15C.Relevant augmentations

15D.Charging principles applicable to the connection of wind energy generation facilities to distribution systems

15E.Pricing principles in relation to relevant distribution systems

4.New section 23B inserted

23B.Conditions relating to purchase of electricity supplied from relevant generation facilities

5.Consequential amendment—Essential Services Commission Act 2001

6.Amendment of new Tariff Order provision

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Endnotes

Electricity Industry (Wind Energy Development) Act 2004

[Assented to 23 November 2004]

The Parliament of Victoria enacts as follows:

1.Purposes

The purposes of this Act are—

(a)to amend the Electricity Industry Act 2000 to—

(i)facilitate the development and construction of wind energy generation facilities in the State; and

(ii)require certain retailers to publish the prices at, and terms and conditions on, which they will purchase electricity supplied to them from certain generators in certain circumstances; and

(b)to amend the Essential Services Commission Act 2001 and the Energy Legislation (Regulatory Reform) Act 2004 to make consequential amendments to those Acts.

2.Commencement

(1)This Act (except section 4) comes into operation on the day after the day on which it receives the Royal Assent.

(2)Section 4 comes into operation on a day to be proclaimed.

(3)If section 4 does not come into operation before 1 July 2005, it comes into operation on that day.

3.New Division 2A of Part 2 inserted

After Division 2 of Part 2 of the Electricity Industry Act 2000 insert—

'Division 2A—Pricing for the Facilitation of the Development of Wind Energy Generation Facilities

15B.Definitions

In this Division—

"relevant augmentation" means an augmentation or proposed augmentation to a distribution system declared under section 15C to be a relevant augmentation;

"relevant distribution system" means a distribution system to which there is or is proposed to be a relevant augmentation;

"relevant generator" means—

(a)a generation company; or

(b)a person engaging in the generation of electricity for supply or sale that has been exempted under section 17 from the requirement to hold a licence in respect of that activity;

"wind energy generation facility" means a generation facility that generates electricity by converting wind energy into electricity.

15C.Relevant augmentations

(1)The Governor in Council, on the recommendation of the Minister, may, by Order published in the Government Gazette, declare an augmentation or proposed augmentation to a distribution system to be a relevant augmentation.

(2)Before making a recommendation under sub-section (1) the Minister must be satisfied the augmentation or proposed augmentation facilitates the development and construction of a wind energy generation facility.

15D.Charging principles applicable to the connection of wind energy generation facilities to distribution systems

(1)The Governor in Council may, by Order published in the Government Gazette—

(a)specify the principles to be applied by an operator of a relevant distribution system in determining connection charges for connection to, and use of, the relevant distribution system by a relevant generator in relation to electricity supplied from a wind energy generation facility operated by that generator so as to enable that operator to recover the capital costs that operator has incurred or may incur in respect of a relevant augmentation; and

(b)specify the procedure for resolving disputes between an operator of a relevant distribution system and a relevant generator in relation to the application of the principles referred to in paragraph (a).

(2)An Order under sub-section (1) may confer powers and functions on the Commission to resolve a dispute referred to in sub-section (1)(b), including the power to resolve a dispute by determining the application of the principles referred to in sub-section (1)(a).

(3)Section 35 of the Essential Services Commission Act 2001 applies to the making of a determination by the Commission under an Order under sub-section (1).

(4)An Order under sub-section (1), and a determination of the Commission made under that Order, apply despite anything to the contrary in—

(a)the Tariff Order; or

(b)a licence to distribute or supply electricity; or

(c)a determination of the Commission made under the Essential Services Commission Act 2001.

15E.Pricing principles in relation to relevant distribution systems

(1)The Governor in Council may, by Order published in the Government Gazette, specify the pricing principles to apply to the making of a determination under the Essential Services Commission Act 2001 regulating the charges (other than charges for excluded services) for connection to, and the use of, a relevant distribution system.

(2)If there is an inconsistency between an Order under sub-section (1) and the Tariff Order, the Order under sub-section (1) prevails to the extent of the inconsistency.'.

4.New section 23B inserted

After section 23A of the Electricity Industry Act 2000 insert—

'23B.Conditions relating to purchase of electricity supplied from relevant generation facilities

(1)In this section—

"non-pool electricity" means electricity that is supplied other than through the wholesale electricity market;

"relevant generation facility" means—

(a)a small wind energy generation facility; or

(b)a facility or class of facility that is declared to be a relevant generation facility under sub-section (2);

"relevant generator" means—

(a)a generation company; or

(b)a person engaging in the generation of electricity for supply or sale that has been exempted under section 17 from the requirement to hold a licence in respect of that activity;

"relevant licensee" means a licensee that sells electricity to more than 5000 customers;

"small wind energy generation facility" means a generation facility operated by a relevant generator—

(a)that generates electricity by converting wind energy into electricity; and

(b)with an installed or name-plate generating capacity of less than 100 kilowatts.

(2)The Governor in Council may, by Order published in the Government Gazette, declare a facility or class of facility operated by a relevant generator that—

(a)generates electricity with an installed or a name-plate generating capacity of less than 100 kilowatts; and

(b)is not a small wind energy generation facility—

to be a relevant generation facility.

(3)A licence to sell electricity held by a relevant licensee is deemed to include a condition requiring the licensee to publish, in the Government Gazette, an offer comprising the prices at, and terms and conditions on, which the licensee will purchase non-pool electricity supplied from a relevant generation facility.'.

5.Consequential amendment—Essential Services Commission Act 2001

In section 3 of the Essential Services Commission Act 2001, in paragraph (d) of the definition of "empowering instrument", after "Division 2" insert "or 2A".

6.Amendment of new Tariff Order provision

In section 5 of the Energy Legislation (Regulatory Reform) Act 2004, after proposed section 15A(1) of the Electricity Industry Act 2000 insert—

'(1A)The Commission must not determine distribution services provided through the use of a part of a distribution system that is a relevant augmentation to be excluded services if there is in force an Order under section 15E that applies to that augmentation.

(1B)In sub-section (1) "relevant augmentation" has the same meaning as in section 15B.'.

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EndnoteS

Minister's second reading speech—

Legislative Assembly: 13 October 2004

Legislative Council: 16 November 2004

The long title for the Bill for this Act was "to amend the Electricity Industry Act 2000, the Essential Services Commission Act 2001, the Energy Legislation (Regulatory Reform) Act 2004 and for other purposes."