Overview

The Jervis Bay Territory Acceptance Act 1915, enacted by the Australian Parliament, aimed to address the need for governance and administration of the Jervis Bay Territory, a small territory transferred to the Commonwealth from New South Wales. The Act empowers the Governor-General to make Ordinances for the peace, order and good government of the Territory. The Administration Ordinance 1990, made under this Act, further facilitates the administration of the Territory by allowing the Minister responsible for the Territory to determine fees for utilities and services provided by the Australian Government. The Electricity Supply Fees Determination 2016 (Jervis Bay Territory) was made to ensure that residents of the Territory have access to electricity services that are comparable to those in equivalent state communities, with fees set based on general parity with those charged by electricity retailers in the surrounding region and the recovery of some of the costs of electricity supply. This Determination ensures that the policy objective of providing similar services to those in state communities is met, despite the Territory’s lack of an economy of scale for full cost recovery.

Scope and Application

The Jervis Bay Territory Electricity Supply Fees Determination 2016 (Jervis Bay Territory) pertains to the fees for the provision of electricity supply services within the Jervis Bay Territory, established under the Jervis Bay Territory Acceptance Act 1915. This Determination applies to all residents and entities within the Territory, including domestic, industrial, and general supply consumers. The fees are set to align with those charged by electricity retailers in the surrounding New South Wales region, while also considering the costs incurred by the Australian Government for electricity supply. The fees are structured to ensure that residents of the Territory have access to electricity services that are comparable to those available in equivalent state communities, despite the Territory’s limited economy of scale. The fees are determined through a process that involves consultation with the community, although no submissions were received for this Determination. The fees include domestic and general supply fees based on market rates, as well as industrial supply fees based on the Department’s purchase costs and a margin for transportation. The Determination also includes provisions for rebates and miscellaneous fees, with all fees being inclusive of GST. The fees are detailed in Schedule 1 and Schedule 2 of the Determination, which outline the specific costs and variances from previous fees. The Administration Ordinance 1990 (Jervis Bay Territory) provides the legislative framework for the establishment of these fees, and the Minister responsible for the Territory has delegated the power to determine these fees to officials within the Department of Infrastructure and Regional Development. The Determination does not engage any applicable human rights, as confirmed by the compatibility assessment under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Jervis Bay Territory Electricity Supply Fees Determination 2016 (Jervis Bay Territory) sets out the fees for electricity supply in the Jervis Bay Territory, including domestic, general, low voltage industrial, and 11 kilovolt time-of-use demand supply fees (Section 4). These fees are based on a survey of market-based electricity supply rates in the surrounding New South Wales region and the Department's electricity purchase costs and a margin to transport the electricity from the New South Wales-Jervis Bay Territory border using Australian Government infrastructure (Subsection 5.1). The fees are also designed to be in general parity with those charged by electricity retailers in the surrounding region and to recover some of the costs of electricity supply (Subsection 5.1). The fees are subject to change and are reviewed periodically (Section 5). The Determination imposes obligations on the parties involved in the electricity supply in the Jervis Bay Territory. The residents of the Territory are required to pay the fees for the supply of electricity as determined by the Determination (Section 5). The Department of Infrastructure and Regional Development is responsible for collecting the fees and ensuring that the electricity supply in the Territory is provided in accordance with the Determination (Section 7). The Department is also responsible for providing rebates to eligible residents of the Territory (Subsections 5.2 and 5.3). The Determination does not explicitly state any offences or penalties for breach. However, non-payment of the fees for the supply of electricity may result in the Department taking action, such as disconnection of the electricity supply (Section 10). The Determination also provides for the requirement, use, and refund of security deposits (Section 11). The Determination is compatible with human rights as it does not raise any human rights issues. The Determination was subject to consultation with the residents of the Territory, but no submissions were received in response to the proposed Determination (Consultation). The Determination is a Legislative Instrument and 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.