Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2022L01149 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Administrator of Christmas Island

 

Christmas Island Act 1955

Christmas Island Utilities and Services Ordinance 2016

 

Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022

 

Authority

 

Section 6 of the Christmas Island Utilities and Services Ordinance 2016 (the Ordinance) authorises the Administrator of the Territory of Christmas Island to make provision for the supply of utilities and services in relation to, among others, the supply of electricity on Christmas Island. Section 7 of the Ordinance provides that the Administrator may impose a fee for the provision of such utilities and services, determined through a legislative instrument.

 

Purpose and operation

 

The Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022 (the Amendment Determination) amends the Christmas Island Utilities and Services (Electricity Supply and Services Fees) Determination 2016 (the Principal Determination).

 

The Amendment Determination updates the fees payable for the supply of electricity and services related to electricity supply.

 

Impact and effect

 

This Amendment Determination will not create any additional regulatory impact on consumers of electricity and related services.

 

The increase in fees outlined in this Amendment Determination will have a minor financial impact on consumers. Of the six electricity tariffs applied on Christmas Island, the Business Tariff (L2) increases by 2.5%, the Residential Tariff (A2) increases by 2.5%, the Community Services Tariff (C2) increases by 2.5%, the Charitable Residential Tariff (D2) increases by 2.5% and the Business/Residential Tariff  (K2) increases by 2.5%. A 2.5% increase also applies to the supply charge per day for these tariffs. The Government Tariff (N2) increases by 1.78% for electricity consumption and 1.74% for the supply charge per day. Service fees, covering items including account meter installation and meter testing, increase in a range from 1.64% to 1.75%.

 

The Dependent Child Rebate increases by 2.5%, which will ameliorate fees charged for supply and consumption of electricity for eligible consumers and be beneficial to the relevant persons.

 

Basis for determining fees

 

The Department of Infrastructure, Transport, Regional Development, Communications and the Arts  (the Department) is responsible for the generation, distribution and retail sale of electricity to Christmas Island consumers.

 

It is Australian Government policy that, wherever possible, there should be parity in cost of provision of state-type services on Christmas Island to those applied in similar remote Australian mainland locations. While the Australian Government aims for full cost recovery across its range of operations, it is acknowledged that for some locations this may not be achievable. Christmas Island is a location where recouped fees for electricity are currently less than the cost of supply.

 

The Department has re-assessed the appropriate level of fees for the supply of electricity and, to achieve parity in cost of provision, the electricity supply and service fees on Christmas Island are set by consideration of those charged by Horizon Power. Horizon Power is owned by the Western Australian government and is responsible for the generation, distribution and retail sale of electricity to consumers across regional and remote Western Australia. The fees and charges of Horizon Power are scrutinised by the Western Australian Government. This process includes the consideration of the cost of service delivery ahead of approval through the Western Australian parliamentary system. This alignment of fee structure does not include the GST component, which is not applicable on Christmas Island.

 

The service fees for ‘reconnection following disconnection for non-payment of fees or any other lawful reason’ and for ‘special meter reading at request of customer’ are no longer allied to those of Horizon Power, which has the ability, via smart meters, to remotely connect and disconnect power and read meters. The Indian Ocean Power Service does not have smart meter technology and disconnections, reconnections and special meter readings are done manually. The fee for this service has been set by applying a 1.75% increase to the level of the fee ($19.81 in the 2020 Determinations) last charged by Horizon Power when it performed these activities manually.

 

Regulation Impact Statement

 

The Office of Best Practice Regulation considers the proposal is likely to have no more than minor regulatory impacts on business, community organisations or individuals. In addition, it understands that the matter will not be considered by Cabinet, and so the preparation of a Regulation Impact Statement is not required.

 

Conditions to be satisfied

 

The Ordinance does not specify conditions that need to be satisfied before power to make the Amendment Determination may be exercised.

 

Consultation

 

There was no consultation with residents of Christmas Island as the Amendment Determination is administrative in nature and reflects the ongoing changes to the cost of operating this service. However, a Community Bulletin about the changes will be prepared for release when the Administrator approves the changes.

 

 


 

Details of the Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022

 

Section 1 – Name

 

This section provides that the name of this Amendment Determination is the Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022.

 

Section 2 – Commencement

 

This section provides that this Amendment Determination is to commence on 1 September 2022.

 

Section 3 – Authority

 

This section provides that this Amendment Determination is made under paragraph 7(2)(a) of the Christmas Island Utilities and Services Ordinance 2016.

 

Section 4 – Schedules

 

This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

 

Schedule 1 - Amendments

Christmas Island Utilities and Services (Electricity Supply and Services Fees) Determination 2016.

 

Schedule 1 - Amendments

 

Item 1 -  Section 4 (paragraphs (a) and (b) of the definition of daily dependent child rebate amount)

 

This item substitutes the amount 83.38 for the amount 81.34  listed in paragraphs (a) and (b) of the definition of daily dependent child rebate amount. The substituted amount increases the daily dependent child rebate available for one dependent child.

 

Item 2 - Section 4 (paragraph (b) of the definition of daily dependent child rebate amount)

 

This item substitutes the amount 21.85 for the amount 21.32 listed in paragraph (b) of the definition of daily dependent child rebate amount.. The substituted amount increases the daily dependent child rebate available for each additional dependent child.

 

Item 3 – Section 6(2)

 

This item substitues the date 1 September 2022 for the date 1 January 2022 as the commencement date for the application of fees determined by this instrument.

 

Item 4 - Clause 1 of Schedule 1 (table)

 

This item repeals and substitutes fees for line items 1 to 6 in the table shown at Schedule 1 (Fixed fees for the supply of electricity) of the Principal Determination. The fees increase the supply fee by 2.5% for items 1 to 5. There was a 1.74% increase to the Government fee N2. 

 

 

Schedule 1 - Fixed fees for the supply of electricity

Item

Category of premises

Units

Previous

Current

Variance

1

Residential A2

cents per day

95.5818

97.9727

2.5% Increase

2

Community service C2

cents per day

92.2273

94.5364

2.5% Increase

3

Charitable residential D2

cents per day

90.9727

93.2455

2.5% Increase

4

Business/residential K2

cents per day

168.6636

172.8818

2.5% Increase

5    

Business and local government L2

cents per day

170.6364

174.9000

2.5% Increase

6

Government N2

cents per day

589.0909

599.3545

1.74% increase

 

 

Item 5 - Clause 1 of Schedule 2 (table)

 

This item repeals and substitutes fees for line items 1 to 6 in the table shown at Schedule 2 (Consumption fees for the supply of electricity) of the Principal Determination. The increase of the consumption fee is 2.5% for items 1 to 5. There was a 1.78% increase to the Government N2 consumption fee. 

 

 

Schedule 2 - Consumption fees for the supply of electricity

Item

Category of premises

Units

Previous

Current

Variance

1

Residential

Cents per unit

consumed

26.6612

27.3277

2.5% Increase

2

Community Service C2

For each day the sum of the following:

 

 

 

 

 

(a)

 

for the first 20 units consumed, cents per unit

21.5486

22.0874

 

2.5% Increase

(b)

 

for the next 1,630 units consumed,  cents per unit

22.9909

23.5657

 

2.5% Increase

(c)

 

for each subsequent unit consumed, cents per unit

21.9300

22.4783

 

2.5% Increase

3

Charitable Residential D2

 

cents per unit

23.1135

23.6914

2.5% Increase

4

Business / Residential K2

For each day the sum of the following:

 

 

 

(a)

 

 

for the first 20 units consumed, cents per unit

27.8524

28.5486

2.5% Increase

(b)

 

for the next 1,630 units consumed, cents per unit

26.2472

26.9034

2.5% Increase

(c)

 

for each subsequent unit consumed, cents per unit

29.5927

30.3325

2.5% Increase

5

Business and local government L2

For each day the sum of the following:

 

 

 

(a)

 

 

 

for the first 1,650 units consumed, cents per unit

26.5535

27.2174

2.5% Increase

(b)

 

for each subsequent unit consumed, cents

29.9382

30.6866

2.5% Increase

6

Government N2

Cents per unit consumed

50.6455

51.5449

1.78% Increase

 

 

 

 

 

 

Item 6 - Clause 1 of Schedule 3 (table)

 

This item repeals the table at Schedule 3 (Fixed fees for services related to the supply of electricity) and substitutes the table below. The fees, other than for item 7, increase either by 1.75% or 1.64%. Item 7 (disconnection warning) increases by 1.72%.

 

 

 

Schedule 3 - Fixed fees for services related to the supply of electricity

Item

Service

Units

Previous

Current

Variance

1

Account establishment fee

(for all new connections)

Dollars per instance

$21.82

$22.20

1.75%

Increase

 

2

Installation of a 3 phase residential meter (new installation or replacement of a single phase meter)

Dollars per instance

$830.91

$845.45

1.75%

Increase

3   

Reconnection following disconnection of

Supply for non-payment of fees or any other lawful reason

Dollars per

instance

$28.91

$31.08

1.75%

Increase

 

4

Connection of temporary supply:

 

 

 

 

(a)

Single phase 

Dollars per instance

$831.82

$845.45

1.64% Increase

(b)

3 phase

Dollars per instance

$831.82

$845.45

1.64%

Increase

5

Meter testing:

 

 

 

 

(a)

if paragraph (b) does not apply (standard);

Dollars per instance

$224.73

$228.66

1.75%

Increase

(b)

for a consumer entitled to a rebate under subsection 7(1)

Dollars per instance

$140.36

$142.82

1.75%

Increase

6

Special meter reading requested by customer

Dollars per instance

$28.91

$31.08

1.75%

Increase

 

7

Disconnection warning

Dollar per instance

$5.80

$5.90

1.72%

Increase


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022

 

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Disallowable Legislative Instrument

 

Section 6 of the Christmas Island Utilities and Services Ordinance 2016 (the Ordinance) authorises the Administrator of the Territory of Christmas Island to make provision for the supply of utilities and services in relation to, among others, the supply of electricity on Christmas Island. Section 7 of the Ordinance provides that the Administrator may impose a fee for the provision of such utilities and services, determined through a legislative instrument.

 

The Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment 2022 Measures No. 2 Determination 2022 amends the Christmas Island Utilities and Services (Electricity Supply and Services Fees) Determination 2016.

 

The Amendment Determination updates the fees payable for the supply of electricity and services related to electricity supply.

 

Impact and effect

 

This Amendment Determination will not create any additional regulatory impact on consumers of electricity and related services.

 

It is Australian Government policy that, wherever possible, there should be parity in cost of provision of state-type services on Christmas Island to those applied in similar remote Australian mainland locations. While the Australian Government aims for full cost recovery across its range of operations, it is acknowledged that for some locations this may not be achievable. Christmas Island is a location where recouped fees for electricity are currently less than the cost of supply.

 

The fees charged on Christmas Island generally align to those charged by Horizon Power, a Western Australian government owned enterprise responsible for the supply of electrical services to isolated and regional areas across the state. This ensures the fees charged are similar to fees in comparable Western Australian communities.

 

The increase in fees outlined in this Amendment Determination are small in nature and will have a minor financial impact on consumers.  Of the six consumption and suppy tariffs applied on Christmas Island, the Business Tariff (L2) increases by 2.5%, the Residential Tariff (A2) increases by 2.5%, the Community Services Tariff (C2) increases by 2.5%, the Charitable Residential Tariff (D2) increases by 2.5%, the Business/Residential Tariff (K2) increases by 2.5%, whilst the Government Tariff (N2) increases by 1.78% for consumption and by 1.74% for the supply charge. Service fees, covering items including account establishment, meter installation and meter testing, increase in the range 1.75% to 1.64%.

 

The Dependent Child Rebate increases by 2.5%, which will ameliorate fees charged for supply and consumption of electricity for eligible consumers and be beneficial to the relevant persons. There are measures in place to protect consumers who are suffering financial hardship.

 

Human rights implications

 

This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022 was introduced to address the issue of updating the fees for the supply of electricity and related services on Christmas Island. Enacted under the authority of the Christmas Island Utilities and Services Ordinance 2016, this Amendment Determination is a legislative instrument made by the Administrator of the Territory of Christmas Island. The primary policy objective of this amendment is to ensure the fees charged for electricity supply on Christmas Island are in parity with those applied in similar remote Australian mainland locations, specifically aligning with those charged by Horizon Power in Western Australia. This alignment is intended to maintain cost parity while recognising the unique circumstances of Christmas Island where full cost recovery may not be feasible. The minor fee increases outlined in the amendment are aimed at reflecting ongoing operational costs and ensuring the sustainability of electricity services on the island. The Amendment Determination introduces minor increases in electricity supply and service fees, with the majority of tariffs seeing a 2.5% increase and others adjusted slightly differently to account for specific conditions, such as the Government Tariff (N2) increasing by 1.78% for consumption and 1.74% for the supply charge. Additionally, service fees for items such as account establishment, meter installation, and meter testing have been adjusted by between 1.64% and 1.75%. The Dependent Child Rebate also increases by 2.5%, providing relief to eligible consumers. This legislative instrument does not create additional regulatory burdens and is considered to have only minor financial impacts on consumers. The changes are designed to ensure the fees remain reasonable and aligned with operational costs while protecting vulnerable consumers.

Scope and Application

The Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022 applies to all consumers and entities involved in the supply of electricity and related services on Christmas Island. This Amendment Determination modifies the fees for the supply of electricity and services connected to electricity supply, reflecting the ongoing changes to the cost of operating these services. The Administrator of the Territory of Christmas Island has the authority to make this determination under Section 6 of the Christmas Island Utilities and Services Ordinance 2016, with fees imposed pursuant to Section 7 of the same Ordinance. The Amendment Determination aligns the fees on Christmas Island with those applied in similar remote Australian mainland locations, aiming for parity in the cost of provision of state-type services. Notably, this Determination does not introduce additional regulatory impacts on consumers but rather ensures that fees for electricity supply and related services are set to achieve cost recovery, aligning with the fees charged by Horizon Power in Western Australia. The Amendment Determination will not be considered by Cabinet, and thus, a Regulation Impact Statement is not required. The increase in fees will have a minor financial impact on consumers, with specific tariff increases ranging from 1.64% to 2.5%. The Dependent Child Rebate also increases by 2.5%, offering some relief to eligible consumers.

Key Provisions

The Christmas Island Utilities and Services (Electricity Supply and Services Fees) Amendment (2022 Measures No. 2) Determination 2022 amends the Christmas Island Utilities and Services (Electricity Supply and Services Fees) Determination 2016. The main operative sections of the Amendment Determination (sections 1-4) provide the name, commencement date, authority, and the schedules for the amendment. Schedule 1 amends the fixed fees for the supply of electricity, increasing the supply fee by 2.5% for most tariffs, and by 1.74% for the Government Tariff (N2). Schedule 2 amends the consumption fees for the supply of electricity, increasing the consumption fee by 2.5% for most tariffs, and by 1.78% for the Government Tariff (N2). Schedule 3 amends the fixed fees for services related to the supply of electricity, with most fees increasing by 1.75% or 1.64%, and the disconnection warning fee increasing by 1.72%. Additionally, the Dependent Child Rebate increases by 2.5%, which will benefit eligible consumers. The Administrator of the Territory of Christmas Island is responsible for the supply of utilities and services, including electricity, on Christmas Island. Under section 7 of the Christmas Island Utilities and Services Ordinance 2016, the Administrator may impose a fee for the provision of such utilities and services, determined through a legislative instrument. The Amendment Determination updates the fees payable for the supply of electricity and services related to electricity supply, aiming to achieve parity in cost of provision of state-type services on Christmas Island with those applied in similar remote Australian mainland locations. The Amendment Determination imposes no additional regulatory impact on consumers of electricity and related services. It aligns the fees charged on Christmas Island with those charged by Horizon Power, a Western Australian government-owned enterprise responsible for the supply of electrical services to isolated and regional areas across the state. This ensures the fees charged are similar to fees in comparable Western Australian communities. The increase in fees outlined in this Amendment Determination are small in nature and will have a minor financial impact on consumers. There are no offences, penalties, or civil/criminal consequences for breach specified in the Amendment Determination. However, it is important to note that the Administrator of the Territory of Christmas Island may impose a fee for the provision of utilities and services, determined through a legislative instrument. Any breach of the fees determined by this instrument may result in legal consequences as per the relevant legislation and regulations. The maximum penalties for such breaches are not specified in the Amendment Determination.

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Environmental Law
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