Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018

Administered by Department of Finance

Legislation au F2018L01029 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Public Works Committee Act 1969

Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018

 

Authority

 

The Public Works Committee Act 1969 (the Act) provides for the establishment of the Parliamentary Standing Committee on Public Works (PWC) to inquire into and report on public works referred to the PWC by the Parliament.  In general, a public work the estimated cost of which exceeds $15 million must be referred to the PWC before it commences.

 

Section 40 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that are required or permitted to be prescribed for carrying out or giving effect to the Act.

 

Subsection 6A(1) of the Act provides that the Act applies to every authority of the Commonwealth. An authority of the Commonwealth includes an incorporated company over which the Commonwealth is in a position to exercise control. Subsection 6A(2)(a) provides that the Act does not apply to authorities declared under subsection 6A(3).

 

Subsection 6A(3) provides that, where the Governor-General is satisfied that an authority of the Commonwealth is engaging in trading or other activities, or is providing services, in competition with another body or other bodies, or with persons, the Governor-General may make regulations declaring that the Act does not apply to that authority.

 

Purpose and operation of the Regulations

 

The purpose and effect of the Regulations is to declare Snowy Hydro Limited and its wholly-owned subsidiaries, under subsection 6A(3) of the Act, to be authorities of the Commonwealth to which the Act does not apply. Snowy Hydro Limited is, for the purposes of subsection 6A(3) of the Act, currently engaged in trading activities and providing services in competition with other bodies or persons.

 

SHL is incorporated under the Corporations Act 2001 and, from 1 July 2018, is a wholly‑owned Commonwealth company prescribed as a Government Business Enterprise.

 

The Government has made clear its intention for SHL to continue to operate as a commercial entity, independently from the Commonwealth.

 

Snowy Hydro Limited is a producer, supplier, trader and retailer of energy in the National Electricity Market (NEM) and a leading provider of risk management financial hedge contracts. Snowy Hydro Limited is the fourth largest retailer in the NEM through its retail energy companies, Red Energy and Lumo Energy.

 

SHL also operates the utilities connection business, Direct Connect, across Australia. SHL is also a water manager and, under its water licence, captures, stores, diverts water and releases it for the use of irrigators, town water supplies and the broader environment.

 

SHL is trading and providing services in competition with privately owned energy generation and retailing firms. SHL’s privately owned competitors are not subject to PWC oversight. Requiring SHL to be subject to the PWC Act would place SHL at a competitive disadvantage, by increasing administrative burden and compliance costs and causing delays not experienced by other existing energy generators and retailers.

 

Exempting SHL from the PWC approval process will negate these issues and allow SHL to continue to operate on a level playing field with its key competitors. SHL will still be subject to high levels of public and Parliamentary scrutiny, including Senate committee scrutiny and tabling of its annual report in the Parliament.

 

Attachment A sets out a provision‑by‑provision overview of the Regulations.

 

The Regulations commence on the day after they are registered on the Federal Register of Legislation.

 

Consultation

 

Snowy Hydro Limited, the Department of the Environment and Energy and the Australian Government Solicitor have been consulted.

 

The Office of Best Practice Regulation advised that a Regulatory Impact Statement was not required for the Regulation (OBPR ID: 22414). 

 

A Statement of Compatibility with Human Rights is set out in Attachment B.

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

 


ATTACHMENT A

 

Details of the Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018

 

Section 1 - Name of Regulations

 

This section provides that the title of the Regulations is the Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018.

 

Section 2 - Commencement

 

This section provides for the Regulations to commence on the day after they are registered.

 

Subsection 2(2) confirms that column 3 in the commencement table under subsection 2(1) does not form part of the Regulations. This allows the commencement date to be published in column 3. 

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Public Works Committee Act 1969. 

 

Section 4 - Schedule(s)

 

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

 

Schedule 1 - Amendments

 

Item [1] – section 7 (after table item 14)

 

This item adds new items 14A, 14B and 14C to the table in section 7 of the Public Works Committee Regulations 2016.

 

Item 14A adds Snowy Hydro Limited to the list of authorities of the Commonwealth to which the PWC Act is declared not to apply.

 

Item 14B adds a wholly-owned subsidiary of Snowy Hydro Limited to the list of authorities of the Commonwealth to which the PWC Act is declared not to apply.

 

Item 14C adds a wholly-owned subsidiary of a wholly-owned subsidiary of Snowy Hydro Limited (as in new item 14B) to the list of authorities of the Commonwealth to which the PWC Act is declared not to apply.

 


ATTACHMENT B

 

Statement of Compatibility with Human Rights

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

 

Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018

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

The Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018 amend the Public Works Committee Regulations 2016 to declare Snowy Hydro Limited and its wholly-owned subsidiaries to be authorities of the Commonwealth to which the Act does not apply (for the purposes of subsection 6A(3) of the Public Works Committee Act 1969).

 

Human rights implications

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

The amendments are intended to limit the compliance overheads for Snowy Hydro Limited and its subsidiaries, including administrative burden, and compliance costs and delays, not experienced by other existing energy generators and retailers. 

 

Conclusion

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

 

Overview

The Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018 were enacted to address a specific regulatory gap concerning the oversight of Snowy Hydro Limited (SHL) and its subsidiaries under the Public Works Committee Act 1969. This legislation was introduced by the Parliament of Australia to ensure that SHL, as a wholly-owned Commonwealth entity engaged in commercial activities, would not be subject to the Public Works Committee's approval process for public works with an estimated cost exceeding $15 million. The objective of these regulations is to prevent SHL from facing a competitive disadvantage by subjecting it to additional administrative burdens, compliance costs, and delays that its privately owned competitors do not experience. By exempting SHL from the Public Works Committee's oversight, the regulations aim to allow the entity to operate on a level playing field within the competitive energy market. The regulations were made under the authority of the Public Works Committee Act 1969 and declare Snowy Hydro Limited and its wholly-owned subsidiaries to be authorities of the Commonwealth to which the Act does not apply, as outlined in subsection 6A(3) of the Act. These amendments were introduced to alleviate the potential competitive disadvantages SHL might face, ensuring it can continue to operate independently and commercially without the additional scrutiny and compliance requirements imposed by the Public Works Committee. Despite this exemption, SHL remains subject to other forms of public and parliamentary scrutiny, ensuring continued transparency and accountability.

Scope and Application

The Public Works Committee Act 1969 applies to every authority of the Commonwealth, including incorporated companies over which the Commonwealth exercises control, unless an authority is declared under the Act to be exempt. Specifically, the Act applies to public works with an estimated cost exceeding $15 million that must be referred to the Parliamentary Standing Committee on Public Works before commencement. However, under the Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018, Snowy Hydro Limited and its wholly-owned subsidiaries are declared to be authorities of the Commonwealth that are exempt from the Act’s application. This exemption is made to ensure Snowy Hydro Limited can continue to operate as a commercial entity independently from the Commonwealth, without facing competitive disadvantages due to increased administrative burden, compliance costs, and delays that would arise from being subject to the Public Works Committee Act. Despite this exemption, Snowy Hydro Limited remains subject to other forms of public and parliamentary scrutiny. The Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018, made under the Public Works Committee Act 1969, declare Snowy Hydro Limited and its wholly-owned subsidiaries to be authorities of the Commonwealth to which the Act does not apply, aligning with the competitive landscape of the energy sector. This regulation ensures that Snowy Hydro Limited operates on a level playing field with its privately-owned competitors, who are not subject to the Public Works Committee oversight. The Regulations aim to negate any competitive disadvantages that Snowy Hydro Limited might face by exempting it from the Public Works Committee Act’s requirements, thereby allowing it to maintain its status as a commercial entity without undue administrative burdens or compliance costs.

Key Provisions

The Public Works Committee Amendment (Snowy Hydro Limited) Regulations 2018 provide amendments to the Public Works Committee Regulations 2016. These amendments declare Snowy Hydro Limited and its wholly-owned subsidiaries to be authorities of the Commonwealth to which the Public Works Committee Act 1969 (PWC Act) does not apply (section 7(14A) to (14C) of the Regulations). This exemption is made under the authority of subsection 6A(3) of the PWC Act, which allows the Governor-General to make regulations excluding certain Commonwealth authorities from the PWC Act if they are engaged in competitive activities. Snowy Hydro Limited operates in the energy market and provides services in competition with other entities, and the government has expressed its intention for the company to operate as a commercial entity independent from the Commonwealth. The Regulations impose certain obligations on Snowy Hydro Limited and its subsidiaries by exempting them from the purview of the PWC Act. This exemption relieves these entities from the requirement to have public works costing more than $15 million referred to the Parliamentary Standing Committee on Public Works before commencement, as mandated by section 5 of the PWC Act. Instead, Snowy Hydro Limited and its subsidiaries will be subject to other forms of scrutiny, including Senate committee scrutiny and the tabling of their annual reports in Parliament (section 6A(2)(a) of the PWC Act). There are no specific offences, penalties, or civil/criminal consequences outlined in the Regulations for breaches of its provisions. However, as Snowy Hydro Limited and its subsidiaries are exempt from the PWC Act, they must ensure compliance with all other applicable legislation and regulations that govern their operations in the energy market and other services they provide. Failure to comply with these other laws could result in enforcement actions, penalties, or other legal consequences under the relevant statutes. The Regulations themselves do not specify any additional penalties or consequences for non-compliance with their provisions, as their primary role is to exempt certain entities from the PWC Act.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.