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TASMANIA
__________
ELECTRICITY SUPPLY INDUSTRY
AMENDMENT (PRICING) BILL 2017
__________
CONTENTS
1. Short title
2. Commencement
3. Principal Act
4. Section 3 amended (Interpretation)
5. Section 40AB amended (Principles to be taken into account in
making determinations under section 40AA)
6. Sections 40ABA and 40ABB inserted
40ABA. Wholesale electricity price order
40ABB. Effect of WEP order on certain provisions of
instruments
7. Repeal of Act
[Bill 26]-XI
2
ELECTRICITY SUPPLY INDUSTRY
AMENDMENT (PRICING) BILL 2017
This Public Bill originated in the House of Assembly, and, having this day passed, is
now ready for presentation to the Legislative Council for its concurrence.
SHANE DONNELLY, Clerk of the House
4 May 2017
(Brought in by the Treasurer, the Honourable Peter Carl
Gutwein)
A BILL FOR
An Act to amend the Electricity Supply Industry Act 1995
Be it enacted by Her Excellency the Governor of Tasmania, by
and with the advice and consent of the Legislative Council and
House of Assembly, in Parliament assembled, as follows:
1. Short title
This Act may be cited as the Electricity Supply
Industry Amendment (Pricing) Act 2017.
2. Commencement
This Act commences on the day on which this
Act receives the Royal Assent.
[Bill 26] 3
Electricity Supply Industry Amendment (Pricing) Act 2017
Act No. of
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3. Principal Act
In this Act, the Electricity Supply Industry Act
1995* is referred to as the Principal Act.
4. Section 3 amended (Interpretation)
Section 3 of the Principal Act is amended by
inserting after the definition of transmission
system the following definition:
WEP order means an order made under
section 40ABA(1);
5. Section 40AB amended (Principles to be taken into
account in making determinations under section
40AA)
Section 40AB of the Principal Act is amended
by omitting subsection (3) and substituting the
following subsections:
(3) For the purposes of this section, the
wholesale electricity costs of a regulated
offer retailer in relation to the provision
of standard retail services consist of -
(a) if a WEP order is in effect under
section 40ABA - the costs of the
retailer in purchasing electricity
for the purposes of providing
those services, calculated in
accordance with the methodology
*No. 58 of 1995
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Act No. of
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for calculating costs that is
specified in subsection (3A); or
(b) if a WEP order is not in effect
under section 40ABA - the costs
of the retailer in purchasing
electricity for the purposes of
providing those services,
calculated in accordance with the
methodology for calculating costs
(which includes the approved
methodology) that is specified in
subsection (3B).
(3A) For the purposes of subsection (3)(a), the
methodology for calculating costs
consists of the multiplication, of the
number of units of electricity purchased
by the retailer for the purposes of
providing standard retail services, by the
wholesale electricity price set out in the
WEP order that is in effect.
(3B) For the purposes of subsection (3)(b), the
methodology for calculating costs
consists of the costs of the retailer in
purchasing electricity for the purposes of
providing standard retail services,
including any adjustment to the costs that
would be made if the regulated offer
retailer and the Hydro-Electric
Corporation were to enter into a contract
that -
(a) was a contract in an approved
standard form determined under
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Electricity Supply Industry Amendment (Pricing) Act 2017
Act No. of
s. 6
section 43G(1) for a load
following swap; and
(b) contained prices calculated in
accordance with the approved
methodology in relation to
contracts in that approved
standard form; and
(c) related to the same number of
units of electricity as the number
of units of electricity purchased
by the retailer for the purposes of
providing those services.
6. Sections 40ABA and 40ABB inserted
After section 40AB of the Principal Act, the
following sections are inserted in Subdivision 2:
40ABA. Wholesale electricity price order
(1) The Minister, by order, may determine
an amount to be the wholesale electricity
price to a retailer for a unit of electricity
specified in the order.
(2) An order under subsection (1) (a WEP
order) -
(a) must specify -
(i) that the order takes effect
on and from the day on
which notice of the
making of the order is
published in the Gazette
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Electricity Supply Industry Amendment (Pricing) Act 2017
Act No. of
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in accordance with the
Rules Publication Act
1953; or
(ii) a day, after the day on
which notice of the
making of the order is
published in the Gazette
in accordance with the
Rules Publication Act
1953, to be the day on
which the order takes
effect; and
(b) must specify the financial year at
the end of which the order is to
cease to be in effect.
(3) Except in relation to the first WEP order
made under this section, notice of the
making of a WEP order is to be
published in the Gazette in accordance
with the Rules Publication Act 1953
before the 15 May immediately before
the financial year that is specified in the
order as the financial year at the end of
which the order is to cease to be in effect.
(4) A WEP order -
(a) takes effect on the day on which
notice of the making of the order
is published in the Gazette in
accordance with the Rules
Publication Act 1953 or, if a later
day is specified in the order as the
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Electricity Supply Industry Amendment (Pricing) Act 2017
Act No. of
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day on which the order is to take
effect, that later day; and
(b) ceases to be in effect -
(i) at the end of the financial
year specified in the order
to be the financial year at
the end of which the order
is to cease to be in effect;
or
(ii) on the day on which an
order under subsection (7)
revoking the order takes
effect; or
(iii) immediately before
another WEP order takes
effect -
whichever occurs first.
(5) If a WEP order is in effect -
(a) the WEP order applies under
section 40AB in relation to the
making of a determination under
section 40AA while the WEP
order is in effect; and
(b) the calculation of any prices, in
accordance with a determination
made under section 40AA
(whether the determination is
made before or after the WEP
order has effect) for a period
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specified in the determination, is,
if such a calculation of prices has
not already been made in relation
to the period, to be made in
relation to that period by taking
into account the methodology
specified in section 40AB(3A);
and
(c) any reference, in a determination,
or a guideline, made by the
Regulator under this Act, to the
wholesale electricity price is to be
taken to be a reference to the
wholesale electricity price to a
retailer for a unit of electricity
specified in the WEP order; and
(d) the Treasurer may, by notice to
the Regulator and a regulated
offer retailer, specify the criteria
to be taken into account by the
Regulator in deciding under
section 41 whether to approve
any draft standing offer prices
submitted to the Regulator under
section 41(2) by the regulated
offer retailer.
(6) If -
(a) a WEP order is in effect; and
(b) a contract between a regulated
offer retailer and the Hydro-
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Electric Corporation is in effect;
and
(c) the contract relates to managing
the financial risk associated with
the purchase by the regulated
offer retailer of electricity to be
supplied by the regulated offer
retailer to small customers to
whom standing offer prices
relate -
the contract is to be taken to have the
effect that the wholesale electricity price
specified in the WEP order for a unit of
electricity is to be the price payable by
the regulated offer retailer in relation to
each such unit of electricity that is so
supplied.
(7) The Minister may, by order, revoke a
WEP order.
(8) An order under subsection (7) must
specify -
(a) that the order takes effect on and
from the day on which notice of
the making of the order is
published in the Gazette in
accordance with the Rules
Publication Act 1953; or
(b) a day, after the day on which
notice of the making of the order
is published in the Gazette in
accordance with the Rules
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Publication Act 1953, to be the
day on which the order takes
effect.
(9) An order under subsection (7) takes
effect on the day on which notice of the
making of the order is published in the
Gazette in accordance with the Rules
Publication Act 1953 or, if a later day is
specified in the order as the day on which
the order is to take effect, that later day.
(10) As soon as practicable after making a
WEP order or an order under
subsection (7), the Minister must give a
copy of the order to -
(a) the Regulator; and
(b) each regulated offer retailer.
40ABB. Effect of WEP order on certain provisions of
instruments
(1) Clauses 5.1(b)(2), 5.1(b)(6)(iii) and
5.2(a)(2) of the guideline, made by the
Regulator, entitled "Standing offer price
approval process in accordance with the
2016 Standing Offer Determination" and
dated 28 April 2016, are of no effect
while a WEP order is in effect.
(2) Clause 10 of the determination made
under section 40AA, entitled "Aurora
Energy Pty Ltd 2016 Standing Offer
Price Determination (2016 Price-
Regulated Retail Service Price
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Act No. of
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Determination)" and issued on
5 May 2016, as that determination is
amended from time to time, is of no
effect while a WEP order is in effect.
7. Repeal of Act
This Act is repealed on the three hundred and
sixty fifth day from the day on which it
commences.
12 Government Printer, Tasmania