Electricity Supply Fees Determination 2017 (Jervis Bay Territory)

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

Legislation au F2016L01587 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Jervis Bay Territory Acceptance Act 1915

Administration Ordinance 1990 (Jervis Bay Territory)

 

Electricity Supply Fees Determination 2017 (Jervis Bay Territory)

 

The Administration Ordinance 1990 (Jervis Bay Territory) was made pursuant to Subsection 4F(1) of the Jervis Bay Territory Acceptance Act 1915 which provides that the Governor-General may make Ordinances for the peace, order and good government of the Jervis Bay Territory (Territory). 

 

Subsection 3B(1) of the Administration Ordinance 1990 enables the Minister responsible for the Territory to determine fees for the provision of utilities and services provided by the Australian Government in the Territory.  The Minister has delegated the power to determine fees for these utilities and services to specific official positions within the Commonwealth Department having responsibility for administration of Australian territories, currently the Department of Infrastructure and Regional Development (the Department). The signatory of this Determination is such a delegate under the Christmas Island, Cocos (Keeling) Islands, and Jervis Bay Territory Delegation Instrument 2012 (No 2) dated 20 July 2012.

 

The Australian Government policy objective is that Territory residents have access to services that are similar to those provided in equivalent state communities in relation to electricity supply. This objective is achieved through fees based on general parity with those charged by electricity retailers in the surrounding region and recovery of some of the costs of electricity supply. The Territory does not have an economy of scale to enable full recovery of all the costs related to the provision of electricity.

 

Consultation

 

The Department published a Jervis Bay Territory Community Bulletin (Bulletin), which was placed on the Department’s internet website and posted to electricity account holders in the Territory. The Bulletin invited comment on the proposed Electricity Supply Fees Determination 2017 (Jervis Bay Territory).

 

No submissions were received in response to the Bulletin

 

Compatibility with Human Rights

 

This Determination, a 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.

 

This Legislative Instrument does not engage any of the applicable rights or freedoms. This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

DETAILS OF THE ELECTRICITY SUPPLY FEES DETERMINATION 2016 (JERVIS BAY TERRITORY)

 

Details of the Determination are as follows:

 

Section 1 titles the Determination.

 

Section 2 provides the date on which the Determination commences.

 

Section 3 provides for the revocation of the previous Electricity Supply Fee Determination.

 

Section 4 defines the terms used in the Determination.

 

Subsection 5.1 provides that Schedule 1 determines fees for the supply of electricity. 

  • Domestic fees and General Supply fees are based on a survey of market based electricity supply rates on offer from licenced electricity retailers in the surrounding NSW region on 1 September 2016. The Commonwealth Government website Energy Made Easy’ was used as the mechanism to determine a competitive electricity fee plan in the current electricity market.
  • The Low Voltage (LV) industrial and 11 kilovolt (kV) time-of-use demand supply fees are based on the Department’s electricity purchase costs and a margin to transport the electricity from the NSW-Jervis Bay Territory border using Australian Government infrastructure.

 

Subsections 5.2 and 5.3 provide for rebates to electricity fees. The basis of these rebates are as follows:

  • The rebates available in Jervis Bay Territory have been structured to meet known requirements of Territory residents. Given the general parity of domestic electricity charges with those of the surrounding region, the rebates available to Jervis Bay Territory residents are similarly drawn from those offered by the NSW government.

 

Section 6 provides that Schedule 2 determines miscellaneous fees for the supply of electricity.

The miscellaneous fees are based on partial recovery of direct costs incurred by the Department for services rendered under commercial contracts.

 

Section 7 provides the eligibility for 11 kV time-of-use demand supply.

 

Section 8 provides the eligibility for LV industrial supply.

 

Section 9 provides for the period for payment of the fees for the supply of electricity.

 

Section 10 provides for the action to be taken by the Department in the case of non-payment by the customer.

 

Section 11 provides for the requirement, use and refund of security deposits.

 

Schedule 1 provides for the schedule of fees for the supply of electricity.

 

Schedule 2 provides for the schedule of miscellaneous fees.

 

Jervis Bay Territory Electricity Fees (GST inclusive) comparison table:

 

Domestic supply

 

 

 

 

Item

Description

Cost Units

2016 Fee

2017 Fee

Variance

1

System access

$/day

0.81752

0.8635

5.62%

2

First 1000 kWh for a 90day period

$/kWh

0.19193

0.20618

7.42%

2

Next 750 kWh for a 90day period

$/kWh

0.18674

0.2009

7.58%

3

For the balance of all electricity supply

$/kWh

0.17996

0.19122

6.26%

 

 

 

 

 

Domestic supply controlled offpeak

Item

Description

 

2016 Fee

2017 Fee

Variance

1

Off-peak access for off-peak 1

$/day

0.05456

0.05456

0.00%

2

Offpeak 1 (up to 9 hours offpeak supply daily)

$/kWh

0.0609

0.06952

14.15%

3

Off-peak access for off-peak 2

$/day

0.05456

0.05456

0.00%

4

Offpeak 2 (up to 18 hours offpeak supply daily)

$/kWh

0.10138

0.1144

12.84%

 

 

 

 

 

 

 

Note: All fees listed are GST inclusive, refer Section 99-1, A New Tax System (Goods and Services Tax) Act 1999 and GST Ruling 2006/2.

 

 

General supply

 

 

 

 

Item

Description

Cost Units

2016 Fee

2017 Fee

Variance

1

System access

$/day

0.99

1.087

9.80%

2

2500 kWh for 90day period

$/kWh

0.18216

0.17611

-3.32%

3

For the balance of all electricity supply

$/kWh

0.18911

0.20847

10.24%

 

 

 

 

 

 

 

 

 

 

General supply controlled offpeak

 

 

 

Item

Description

Cost Units

2016 Fee

2017 Fee

Variance

1

Off-peak access for off-peak 1

$/day

0.05456

0.05456

0.00%

2

Offpeak 1 (up to 9 hours offpeak supply daily)

$/kWh

0.0609

0.06952

14.15%

3

Off-peak access for off-peak 2

$/day

0.05456

0.05456

0.00%

4

Offpeak 2 (up to 18 hours offpeak supply daily)

$/kWh

0.10138

0.1144

12.84%

 

 

 

 

 

 

 

 

Note: All fees listed are GST inclusive, refer Section 99-1, A New Tax System (Goods and Services Tax) Act 1999 and GST Ruling 2006/2.

 

 

 

 


LV industrial supply

 

 

 

 

Item

Description

Cost Units

2016 Fee

2017 Fee

Variance

1

For all electricity supply

$/kWh

0.1204

0.11594

-3.70%

 

 

 

 

 

 

11kV timeofuse demand supply

 

 

 

 

Item

Description

 

2016 Fee

2016 Fee

Variance

1

Monthly fee

$/kVA

9.197

9.336

1.51%

2

For electricity supply during a peak period

$/kWh

0.11391

0.11497

0.93%

3

For electricity supply during a shoulder period

$/kWh

0.10776

0.10873

0.90%

4

For electricity supply during an offpeak period

$/kWh

0.06901

0.07034

1.93%

 

 

 

 

 

 

 

 

 

Note: All fees listed are GST inclusive, refer Section 99-1, A New Tax System (Goods and Services Tax) Act 1999 and GST Ruling 2006/2.

 

 

 

 

 

 

 

 

Connection of electricity supply — fees payable before connection

 

Item

Description

2016 Fee ($)

2017 Fee ($)

Variance

1

New account supply connection fee

88

29.98

-65.93%

 

 

Other Fees

 

Item

Description

2016 Fee ($)

2017 Fee ($)

Variance

1

Disconnection fee at the meter board

94.35

148.50

22.50%

2

Reconnection fee at the meter board

94.35

148.50

22.50%

3

Combined disconnection/reconnection fee — at the pole or distribution pillar

583.00

583.00

0%

4

Meter test requested by customer

457.13

457.13

0%

5

Extraordinary meter reading due to no access

88.00

148.50

14.30%

6

Notice of disconnection delivery fee

16.00

19.80

14.30%

7

Each customer requested change of offpeak pricing option in excess of once in a 12month period

88.00

148.50

14.30%

 

 

 

 

 

 

 

Note: All fees listed are GST inclusive, refer Section 99-1, A New Tax System (Goods and Services Tax) Act 1999 and GST Ruling 2006/2.

Overview

The Jervis Bay Territory Acceptance Act 1915 was enacted to provide for the acceptance of the Jervis Bay Territory by the Commonwealth of Australia from New South Wales. This Act established a framework for the administration of the Territory and enabled the Governor-General to make ordinances for its governance. The 1990 Administration Ordinance, made under this Act, authorises the Minister to determine fees for utilities and services provided by the Australian Government in the Territory. The Electricity Supply Fees Determination 2017 (Jervis Bay Territory), signed by a delegate of the Minister, sets the fees for electricity supply in the Territory, aiming to ensure that residents have access to services comparable to those in equivalent state communities. The fees are based on market rates in the surrounding region and partial cost recovery, given the Territory's lack of an economy of scale for full cost recovery. The determination process involved consultation with the community via a published bulletin, although no submissions were received. The fees set out in the Determination are compatible with human rights, as they do not engage any applicable rights or freedoms.

Scope and Application

The Jervis Bay Territory Electricity Supply Fees Determination 2017 applies to the residents and entities within the Jervis Bay Territory, setting forth the fees for electricity supply services provided by the Australian Government. This Determination is made under the Jervis Bay Territory Acceptance Act 1915 and the Administration Ordinance 1990, which grants the Minister responsible for the Territory the authority to determine fees for utilities and services. The fees are structured to ensure that residents of the Jervis Bay Territory have access to electricity supply services that are comparable to those in equivalent communities in the surrounding region, with a focus on achieving general parity with electricity retailers in New South Wales. The fees encompass various categories including domestic, general supply, low voltage industrial, and 11 kilovolt time-of-use demand supply, with additional miscellaneous fees for services rendered. The Determination specifies the eligibility criteria for different supply types, payment periods, actions for non-payment, and the requirement, use, and refund of security deposits. Notably, the Determination does not engage any of the applicable rights or freedoms under the human rights and freedoms recognised in international instruments. The fees listed in the Determination are inclusive of Goods and Services Tax (GST), as referenced under the A New Tax System (Goods and Services Tax) Act 1999 and GST Ruling 2006/2.

Key Provisions

The Jervis Bay Territory Acceptance Act 1915 establishes the framework for the administration of the Jervis Bay Territory, and the Administration Ordinance 1990 (Jervis Bay Territory) was enacted under the authority of Section 4F(1) of this Act. This ordinance allows the Governor-General to make laws for the peace, order, and good government of the Territory. Section 3B(1) of the Administration Ordinance 1990 specifically empowers the Minister responsible for the Territory to determine fees for utilities and services provided by the Australian Government within the Territory. This responsibility has been delegated to specific officials within the Department of Infrastructure and Regional Development, as per the Christmas Island, Cocos (Keeling) Islands, and Jervis Bay Territory Delegation Instrument 2017 (No 2). The Electricity Supply Fees Determination 2017 (Jervis Bay Territory) sets out the fees for the supply of electricity in the Territory. Section 5.1 of the Determination outlines that the fees are structured to achieve general parity with those charged by electricity retailers in the surrounding New South Wales region, while also recovering some of the costs related to electricity supply. The fees are based on various factors including market surveys and the Department's electricity purchase costs, with a margin added for transportation. Section 6 details miscellaneous fees for services rendered under commercial contracts, while Section 7 to Section 11 provide additional details on eligibility, payment periods, non-payment actions, and security deposits. The Act imposes several obligations on the parties and entities it governs. Firstly, the Department of Infrastructure and Regional Development is responsible for setting and collecting electricity fees in accordance with the Determination. Section 3B(1) of the Administration Ordinance 1990 mandates that the fees must be set in a manner that aligns with regional market rates and recovers a portion of the costs associated with electricity supply. Furthermore, the Department must ensure that the fees are communicated to the residents of the Territory, as evidenced by the Jervis Bay Territory Community Bulletin that was published and distributed. Additionally, the Determination provides for rebates to electricity fees as outlined in Subsections 5.2 and 5.3, which must be structured to meet the known requirements of Territory residents. Failure to comply with the provisions of the Electricity Supply Fees Determination 2017 (Jervis Bay Territory) may result in various consequences. While the Determination itself does not specify explicit offences or penalties for non-compliance, any breach of the Administration Ordinance 1990 or the Jervis Bay Territory Acceptance Act 1915 may lead to civil or criminal penalties. For instance, unauthorised connection or disconnection of electricity supply could result in fines or imprisonment under the relevant state or territory laws. The Determination, being a legislative instrument, is also required to be compatible with the human rights and freedoms recognised in international instruments, as stipulated in Section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. However, this Determination has been deemed compatible with human rights as it does not engage any applicable rights or freedoms.

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