Commonwealth Numbered Regulations - Explanatory Statements

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RENEWABLE ENERGY (ELECTRICITY) AMENDMENT REGULATIONS 2006 (NO. 2) (SLI NO 248 OF 2006)

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 248

 

 

ISSUED BY AUTHORITY OF THE MINISTER FOR THE
ENVIRONMENT AND HERITAGE

 

Renewable Energy (Electricity) Act 2000

Renewable Energy (Electricity) Amendment Regulations 2006 (No. 2)

 

The Renewable Energy (Electricity) Act 2000 (the Act) establishes a scheme to encourage additional electricity generation from eligible renewable energy sources. This is known as the Mandatory Renewable Energy Target scheme. The scheme creates a guaranteed market for an additional 9,500 gigawatt hours of renewables-based electricity by 2010.

 

Section 161 of the Act provides, in part, that the Governor-General may make regulations prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the Act.

 

The Renewable Energy (Electricity) Amendment Act 2006 (the Amending Act), amends the Act to implement the Government’s agreed response to the independent review which was undertaken in accordance with provisions in the Act two years after its commencement. The Amending Act commenced by Proclamation on 11 September 2006. The Amending Act enhances market transparency and improves business certainty, provides increased opportunities for solar and bioenergy technologies, and improves the operational effectiveness and efficiency of the Act.

 

Part 3 (comprising sections 31 to 34) of the Act relates to acquisitions of electricity; it clarifies what is a “relevant acquisition” for the purposes of the requirements imposed by the Act, in particular from or by the National Electricity Market Management Company Limited (NEMMCO). NEMMCO was established to manage and operate the National Electricity Market ‑ a market for the supply and purchase of electricity in the participating jurisdictions of the Australian Capital Territory, New South Wales, Queensland, South Australia, Tasmania and Victoria. The Amending Act allows for regulations to prescribe a person or body that performs a role similar to NEMMCO to be treated in a similar manner for the purposes of the Act

 

The Independent Market Operator (IMO) in Western Australia is a body established to perform a similar role to NEMMCO in Western Australia’s new electricity market arrangements which are due to commence on 21 September 2006.

 

The purpose of the Regulations is to amend the Renewable Energy (Electricity) Regulations 2001 to allow the IMO to be treated in a manner similar to NEMMCO for the purposes of the Act.

 

Details of the Regulations are set out in Attachment A.

 

Extensive consultations on these Regulations have been undertaken with key stakeholders in Western Australia.

 

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

 

The Regulations commenced on 21 September 2006.


 

Attachment A

Details of the Renewable Energy (Electricity) Amendment Regulations 2006 (No. 2)

 

Part 1 - Preliminary

 

1 – Name of Regulations

This provides that the name of the Regulations would be the Renewable Energy (Electricity) Amendment Regulations 2006 (No. 2).

 

2 - Commencement

This provides for the Regulations to commence on 21 September 2006.

 

3 – Amendment of Renewable Energy (Electricity) Regulations 2001.

This provides that Schedule 1 amends the Renewable Energy (Electricity) Regulations 2001.

 

Schedule 1 – Amendments

Item [1] Subregulation 3(1), after definition of component certification

This inserts a definition of the IMO to mean the Independent Market Operator established under regulation 4 of the Electricity Industry (Independent Market Operator) Regulations 2004 (WA).

 

Item [2] Before regulation 21 in Part 3

This change inserts a new regulation 21A, providing that the IMO is a prescribed body for paragraphs 31(2)(c) and 32(1)(a) and section 34 of the Act. This has the effect that an acquisition of electricity by IMO is not a relevant acquisition, and that an acquisition of electricity from the IMO is a relevant acquisition for the purposes of the Act.

 

Persons making relevant acquisitions of electricity under the Act are called liable parties. Liable parties are required to meet their annual liability under the Act by surrendering Renewable Energy Certificates or paying a penalty of $40 per megawatt hour of shortfall.

 

 


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