Overview

The Jervis Bay Territory Acceptance Act 1915 was enacted to provide for the acceptance of the Jervis Bay Territory by the Commonwealth, vesting the territory in the Commonwealth and providing for its administration. The Act was passed by the Australian Parliament and was introduced to address the need for governance and administration of the Jervis Bay Territory. Under the Act, the Governor-General is empowered to make ordinances for the peace, order, and good government of the territory. The Administration Ordinance 1990, made under the Act, 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 policy objective of the Australian Government is to ensure that Territory residents have access to services similar to those provided in comparable state communities, by choosing the lowest cost, mainstream electricity plan available in the adjacent NSW region and direct recovery of some costs. The Electricity Supply Fees Determination 2019 (Jervis Bay Territory) was made under the authority of the Administration Ordinance 1990, with the objective of ensuring that residents of the Jervis Bay Territory have access to competitively priced electricity supply services. The fees are based on a survey of market-based electricity supply rates on offer from licensed electricity retailers in the surrounding NSW region during August 2018. 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 Territory does not have an economy of scale to enable full cost recovery for provision of electricity. Consultation was undertaken by the Department, but no submissions were received in response to the proposed Electricity Supply Fees Determination 2019 (Jervis Bay Territory).

Scope and Application

The Electricity Supply Fees Determination 2019 (Jervis Bay Territory) applies to the Jervis Bay Territory, a distinct geographical area within Australia, and governs the fees associated with the provision of electricity supply services within this territory. It is made under the authority of the Jervis Bay Territory Acceptance Act 1915 and the Administration Ordinance 1990, which empower the Governor-General to enact ordinances for the good governance of the Territory, and the Minister responsible for the Territory to determine fees for utilities and services. The Department of Infrastructure and Regional Development, as delegate, has specified these fees, aiming to provide residents with electricity services comparable to those in neighbouring NSW communities. This Determination does not apply to any entities or individuals outside the Jervis Bay Territory. It also does not engage with any human rights issues, as confirmed by its compatibility with the human rights and freedoms outlined in international instruments. The fees are based on market rates and the direct costs of providing these services, with rebates offered to residents to align with those available in NSW. The Determination includes schedules detailing specific fees for various types of electricity supply, ensuring transparency and accountability in the fee structure.

Key Provisions

The Jervis Bay Territory Acceptance Act 1915 (the "Act") provides the legislative framework for the governance of the Jervis Bay Territory (the "Territory"), including the administration of utilities and services. Section 4F(1) of the Act empowers the Governor-General to make ordinances for the peace, order, and good government of the Territory. Pursuant to this power, the Administration Ordinance 1990 (the "Ordinance") was made, which in turn allows the Minister responsible for the Territory to determine fees for utilities and services provided by the Australian Government within the Territory (Section 3B(1) of the Ordinance). The Electricity Supply Fees Determination 2019 (Jervis Bay Territory) (the "Determination") was made under this authority, setting out the fees for electricity supply in the Territory. The primary obligation imposed by the Determination is on the Department of Infrastructure and Regional Development, or its delegate, to set electricity fees in the Territory based on certain criteria. Section 5.1 of the Determination specifies that domestic and general supply fees are to be set based on a survey of market-based electricity supply rates in the adjacent New South Wales (NSW) region during August 2018, while low voltage industrial and 11 kilovolt time-of-use demand supply fees are to be set based on the Department’s electricity purchase costs and a margin to transport the electricity from the NSW-Jervis Bay Territory border. Section 6 of the Determination requires that miscellaneous fees for the supply of electricity are based on partial recovery of direct costs incurred by the Department for services rendered under commercial contracts. The Determination also imposes specific obligations on electricity consumers in the Territory. For example, Section 9 provides for the period within which fees for the supply of electricity must be paid, while Section 10 outlines the actions the Department may take in the case of non-payment by a customer. Section 11 sets out the requirements, use, and refund of security deposits. Additionally, the Determination provides for rebates to electricity fees (Sections 5.2 and 5.3) and eligibility criteria for certain types of electricity supply (Sections 7 and 8). The Determination does not explicitly state any criminal or civil penalties for breach. However, failure to comply with the obligations imposed by the Determination, such as non-payment of fees, could result in enforcement actions by the Department as outlined in Section 10. These actions might include disconnection of service or legal proceedings to recover unpaid fees. The Determination is compatible with human rights as it does not raise any human rights issues, as outlined in the compatibility statement.