Australian Capital Territory Electricity Supply Amendment Act 1978

Overview

The Australian Capital Territory Electricity Supply Amendment Act 1978 was enacted to amend the Australian Capital Territory Electricity Supply Act 1962, addressing the need to refine the borrowing mechanisms for the Australian Capital Territory Electricity Authority. The Act was passed by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia. The policy objective of the Act was to enhance the financial flexibility of the Authority by allowing it to borrow through the issuance of securities, and to provide a guarantee for such borrowings from the Commonwealth. This legislative amendment aimed to ensure that the Authority could secure necessary funds for its operations while also providing a safety net through Commonwealth guarantees on certain borrowings.

Scope and Application

The Australian Capital Territory Electricity Supply Amendment Act 1978 amends the Australian Capital Territory Electricity Supply Act 1962, introducing changes primarily concerning the borrowing powers of the Authority responsible for electricity supply in the Australian Capital Territory. This Act applies to the Authority, which is the entity responsible for the supply of electricity within the Territory, and it pertains to the financial mechanisms through which the Authority may secure funding for its operations. The jurisdictional reach of this Act is confined to the Australian Capital Territory, thus it does not extend to other states or territories of Australia. This Act does not specify any exclusions, exemptions, or thresholds within its text; however, the borrowing provisions may be further detailed or restricted through subordinate instruments or regulations. The Act came into operation on the day it received the Royal Assent, ensuring immediate effect upon enactment.

Key Provisions

The Australian Capital Territory Electricity Supply Amendment Act 1978 (section 1) amends the Australian Capital Territory Electricity Supply Act 1962, referred to as the Principal Act (section 1(2)). This amendment Act comes into effect on the day it receives Royal Assent (section 2). A significant change introduced by the Amendment Act is the expansion of the borrowing powers of the Authority, as outlined in section 3. Specifically, the amendment allows the Authority to borrow funds by issuing securities (section 3(3a)). Furthermore, the Treasurer can guarantee the repayment of moneys borrowed by the Authority, as well as the payment of interest on those amounts, on behalf of the Commonwealth (section 3(3b)). Additionally, if the Authority issues prescribed securities, the repayment and interest payment are guaranteed by the Commonwealth (section 3(3c)). The Amendment Act imposes specific obligations on the Authority, including the ability to issue securities for borrowing (section 3(3a)), and it mandates that the Treasurer may provide guarantees for the repayment of borrowed funds and the payment of interest (section 3(3b)). Moreover, if the Authority issues prescribed securities, the Commonwealth is automatically bound to guarantee the repayment and interest payment (section 3(3c)). These provisions necessitate that the Authority adhere to the outlined methods and conditions for borrowing and ensure that any securities issued are of the prescribed kind. Under the Australian Capital Territory Electricity Supply Amendment Act 1978, there are no explicit offences, penalties, or civil/criminal consequences detailed in the provided text. However, the obligations and requirements imposed on the Authority and the Treasurer are stringent and must be adhered to strictly. Failure to comply with these provisions, such as issuing unauthorised securities or not adhering to the conditions for Commonwealth guarantees, could potentially lead to legal ramifications, though specific penalties are not outlined in the provided text.