EXPLANATORY STATEMENT
Subject - Trade Practices Amendment (Australian Energy Market) Act 2004
Proclamation
This explanatory statement relates to the legislative instrument to proclaim the Trade Practices Amendment (Australian Energy Market) Act 2004 and is made for the purposes of the Legislative Instruments Act 2003.
The Trade Practices Amendment (Australian Energy Market) Act 2004 received the Royal Assent on 30 June 2004 and was proclaimed on 23 May 2005 by the Governor‑General in Council.
Under the Australian Energy Market Agreement 2004, the Council of Australian Governments agreed to introduce a cooperative national legislative framework for the Australian energy market. The Australian Energy Market Agreement is the Council of Australian Government’s response to the Council’s independent Energy Market Review 2002 (the Parer Review). This Review involved extensive consultation with interested parties before a final report was made to the Council, including a key recommendation to establish a national energy regulator.
In accordance with the Australian Energy Market Agreement, the Commonwealth passed two Acts, the Trade Practices Amendment (Australian Energy Market) Act 2004 and the Australian Energy Market Act 2004.
Schedule 1 to the Trade Practices Amendment (Australian Energy Market) Act 2004 establishes a new Commonwealth regulator, the Australian Energy Regulator (AER). The objective of establishing the AER is to streamline and enhance the national character of regulation of Australia’s energy markets. The AER will have important enforcement and economic regulatory functions and powers under the new National Electricity Law (NEL), which is a Schedule to the National Electricity (South Australia) Act 1996 (SA). The Council of Australian Governments also agreed that the AER will have regulatory functions in relation to other uniform energy laws, such as laws relating to gas.
Schedule 2 to the Trade Practices Amendment (Australian Energy Market) Act 2004 amends the Administrative Decisions (Judicial Review) Act 1977 (ADJR Act) by providing that the National Electricity (South Australia) Act 1996 (SA) and state and territory laws applying that Act are ‘enactments’ for the purposes of the ADJR Act.
The commencement date of 23 May 2005 for the Trade Practices Amendment (Australian Energy Market) Act 2004 will coincide with reforms being made to the existing NEL and National Electricity Code in accordance with the Australian Energy Market Agreement. Industry has been advised of when these reforms will be finalised. Given this, no separation consultation on the instrument to proclaim the Trade Practices Amendment (Australian Energy Market) Act 2004 was necessary.