EXPLANATORY STATEMENT

 

Select Legislative Instrument 2009 No. 159

 

Trade Practices Act 1974

 

Trade Practices Regulations 1974

 

Section 172(1) of the Act provides, in part, that the Governor‑General may make regulations, not inconsistent with the Act, 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.

 

A new company called the Australian Energy Market Operator (AEMO) is to be established to become the operator of the national energy market, incorporating electricity and gas markets in all jurisdictions except the Northern Territory and Western Australia. AEMO will assume the responsibilities of existing market operators including the current national electricity market operator, the National Electricity Market Management Company (NEMMCO). AEMO will be formed by taking over the corporate structure of NEMMCO and a change in company name.

 

The purpose of the proposed Regulations is to amend the Principal Regulations to replace references to NEMMCO with references to AEMO. The proposed Regulations would also make a number of other minor changes.

 

These amendments will reflect the replacement of NEMMCO with AEMO and AEMO’s adoption of all responsibilities of NEMMCO.

 

Details of the proposed Regulations are set out in the Attachment.

 

The proposed Regulations would be a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The proposed Regulations would commence on commencement of item 13 to Schedule 1 of the Australian Energy Market Amendment (AEMO and Other Measures) Act 2009. Commencement of this item will make a similar consequential change to the Act, replacing a reference to NEMMCO with a reference to AEMO.

 

Consultation for this legislative instrument was undertaken with the Assistant Treasurer. The instrument is of a machinery nature only.

 

The Minute recommends that Regulations be made in the form proposed.

 

ATTACHMENT

 

Details of the proposed Trade Practices Amendment Regulations 2009 (No. 2)

 

Regulation 1 – Name of Regulations

This regulation provides that the title of the Regulations is the Trade Practices Amendment Regulations 2009 (No. 2).

 

Regulation 2 – Commencement

This regulation provides for the Regulations to commence on the day on which item 13 to Schedule 1 of the Australian Energy Market Amendment (AEMO and Other Measures) Act 2009 commences.

 

Regulation 3 – Amendment of Trade Practices Regulations 1974

This regulation provides that the Trade Practices Regulations 1974 (the Principal Regulations) are amended as set out in the Schedule.

 

Schedule – Amendments

Item [1] – subregulation 2(1), after definition of Act

Subregulation 2(1) contains a definition of Act. After this definition the words “AEMO has the same meaning as in the Renewable Energy (Electricity) Act 2000” will be inserted to provide a definition for AEMO linked to the definition in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia.

Item [2] – subregulation 2(1)

Subregulation (2)(1) contains a definition of MSO Rules. This definition is to be deleted to reflect that the MSO Rules will be subsumed by the National Gas Rules.

Item [3] – paragraph 6AA(1)(b)

Paragraph 6AA(1)(b) contains a reference to ‘NEMMCO’. This reference is to be deleted and replaced with a reference to ‘AEMO’.

Item [4] – subregulation 6AA(1), note

The note to subregulation 6AA(1) contains a reference to ‘NEMMCO’. This reference is to be deleted and replaced with a reference to ‘AEMO’.

Item [5] – regulation 7, table, item 3.1

Item 3.1 of the table in Regulation 7 is to be deleted to reflect that AEMO will assume the responsibilities of the Victorian Energy Networks Corporation.

Item [6] – regulation 7, table, item 6.2

Item 6.2 of the table in Regulation 7 is to be deleted to reflect that AEMO will assume the responsibilities of the Electricity Supply Industry Planning Council.

Item [7] – regulation 7A, table, item 3.2

Item 3.2 of the table in Regulation 7A is to be deleted to reflect the fact that the MSO Rules will no longer exist.