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TASMANIA
__________
ELECTRICITY SUPPLY INDUSTRY
AMENDMENT (FEED-IN TARIFFS AND OTHER
MATTERS) BILL 2013
__________
CONTENTS
1. Short title
2. Commencement
3. Principal Act
4. Section 3 amended (Interpretation)
5. Section 38A amended (Transitional provisions in relation to
retail sales)
6. Section 43B substituted
43B. Only local area retailer may sell unmetered
electricity
7. Part 3, Division 5A inserted
Division 5A - Feed-in tariffs
44A. Interpretation of Division 5A
44B. Qualifying systems
44C. Standard feed-in tariff customers
44D. Transitional feed-in tariff customers
44E. Authorised retailers to pay feed-in tariffs and provide
feed-in tariff supply statements
44F. Feed-in tariff rates
44G. Feed-in tariff rate determinations
44H. Principles to be taken into account in making feed-in
tariff rate determinations
44I. Distributors to reimburse authorised retailers for
difference between rates
44J. Report and recording obligations of distributors
[Bill 54]-XI
8. Section 121AA amended (Costs of transfer of prepayment meter
customers recoverable from distributor)
9. Repeal of Act
2
ELECTRICITY SUPPLY INDUSTRY
AMENDMENT (FEED-IN TARIFFS AND OTHER
MATTERS) BILL 2013
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.
P. R. ALCOCK, Clerk of the House
19 September 2013
(Brought in by the Minister for Energy and Resources, the
Honourable Bryan Alexander Green)
A BILL FOR
An Act to amend the Electricity Supply Industry Act 1995
Be it enacted by His 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 (Feed-in Tariffs and Other
Matters) Act 2013.
2. Commencement
The provisions of this Act commence on a day
or days to be proclaimed.
[Bill 54] 3
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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 as
follows:
(a) by inserting the following definition after
the definition of distribution network:
distributor, in relation to premises,
means an electricity entity that
holds a licence to distribute
electricity by way of the
distribution network by which
electricity may be supplied to the
premises;
(b) by inserting the following definition after
the definition of powerline:
prepayment meter system has the
same meaning as in the National
Energy Retail Law (Tasmania);
(c) by omitting "Division 4 or 4A of Part 3"
from paragraph (a) of the definition of
reviewable decision and substituting
"Division 4, 4A or 5A of Part 3".
*No. 58 of 1995
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5. Section 38A amended (Transitional provisions in
relation to retail sales)
Section 38A(9) of the Principal Act is amended
by omitting the definitions of transitional
customer and transitional prepayment meter
customer and substituting the following
definitions:
transitional customer, in relation to premises,
means a person who -
(a) is, immediately before
1 January 2014, a non-contestable
customer in relation to the
premises; or
(b) if the person had been,
immediately before
1 January 2014, a customer in
relation to the premises, would
have been a non-contestable
customer, in relation to the
premises, under the Electricity
Supply Industry (Customer)
Regulations 2012, as in force
immediately before
1 January 2014 -
and includes a transitional prepayment
meter customer;
transitional prepayment meter customer, in
relation to premises, means a person who
is a customer to whom electricity is
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provided at the premises using a
prepayment meter system.
6. Section 43B substituted
Section 43B of the Principal Act is repealed and
the following section is substituted:
43B. Only local area retailer may sell unmetered
electricity
An authorised retailer, other than a local
area retailer, within the meaning of the
National Energy Retail Law (Tasmania),
must not sell electricity to be supplied to
a type 7 metering installation, within the
meaning of the National Electricity
Rules, unless that installation -
(a) is classified under those Rules as
a market load; and
(b) is of a type of installation
included in a load table published
by the AEMO in accordance with
a metrology procedure approved
by the AEMO.
7. Part 3, Division 5A inserted
After section 44 of the Principal Act, the
following Division is inserted in Part 3:
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Division 5A - Feed-in tariffs
44A. Interpretation of Division 5A
(1) In this Division -
AS 4777 means Australian Standard
AS 4777, issued and published by
Standards Australia, as that
Standard is amended, or
substituted, from time to time;
billing period, in relation to premises,
means a period to which relates,
or is to relate, an electricity
account in respect of the
premises;
electricity account, in respect of
premises, means an invoice, for
the supply of electricity to the
premises, that is issued, or to be
issued, by an authorised retailer
in respect of the premises;
feed-in tariff billing amount, in
respect of a billing period, means
the amount calculated under
section 44E(3) in relation to the
billing period;
feed-in tariff customer, in respect of
premises, means -
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(a) a standard feed-in tariff
customer in respect of the
premises; and
(b) a transitional feed-in tariff
customer in respect of the
premises;
feed-in tariff supply statement, in
respect of a billing period in
relation to premises, means a
written statement (which may
form part of an electricity account
in respect of the premises) setting
out -
(a) the quantity of electricity
that has been, during the
billing period, supplied to
a distribution network by
a qualifying system at the
premises; and
(b) the feed-in tariff billing
amount in respect of the
billing period in relation
to the premises; and
(c) any amount, in addition to
the feed-in tariff billing
amount in respect of the
billing period in relation
to the premises, that
relates to the supply, to
the distribution network
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in respect of the premises,
of electricity from a
qualifying system
installed at the premises;
qualifying system, in relation to
premises, means a qualifying
system, within the meaning of
section 44B, in relation to the
premises;
quarterly billing period means a
period of not less than 85 days
and not more than 95 days;
residential customer, in respect of
premises, means a person who
purchases electricity principally
for use at the premises for
personal, household or domestic
purposes;
small business customer, in respect of
premises, means a small customer
who is not a residential customer;
spouse, in relation to a customer,
means -
(a) a person who is, or was
immediately before the
customer's death, a
spouse of the customer;
and
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(b) a person with whom the
customer is, or was
immediately before the
customer's death, in a
significant relationship,
within the meaning of the
Relationships Act 2003;
standard feed-in tariff customer
means a customer to whom
section 44C applies;
transition day means 31 August 2013;
transitional feed-in tariff customer
means a customer to whom
section 44D(1) applies.
(2) For the purposes of this Division,
electricity that is supplied to a
distribution network from a qualifying
system installed at premises is only to be
taken to form part of a kilowatt hour of
supply of the electricity from the
qualifying system if, at the instant at
which the electricity is so supplied, the
amount generated by the system is more
than the amount of electricity being
supplied, at that instant, from the
distribution network to the premises by
one or more circuits, connected to the
qualifying system, to which relates a
price that is charged, or may be charged,
by an authorised retailer for the supply of
electricity.
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44B. Qualifying systems
(1) For the purposes of this Division, a
system is a qualifying system in relation
to premises if the system -
(a) is a system for the generation of
electricity by solar, wind or water
power; and
(b) complies with AS 4777 or, if it
does not comply with AS 4777, is
approved, before the transition
day, by the distributor in respect
of the premises at which the
system is installed; and
(c) has the relevant total generation
capacity in relation to the
premises; and
(d) is not a member of a class of
systems that are prescribed by the
regulations not to be qualifying
systems for the purposes of this
Division.
(2) For the purposes of subsection (1)(c), a
system has the relevant total generation
capacity in relation to premises if -
(a) where the system installed at the
premises has a single-phase
inverter and is not a system to
which paragraph (c) applies - the
system has a total generation
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capacity of not more than
10kVA; or
(b) where the system installed at the
premises has a 3-phase inverter
and is not a system to which
paragraph (c) applies - the
system has a total generation
capacity of not more than
30kVA; or
(c) where the system installed at the
premises is a system, or replaces
a system, in relation to which
there is an application, accepted
before the transition day by the
distributor in respect of the
premises, for -
(i) connection of the system
to the distribution
network by the
distributor; or
(ii) approval to upgrade or
replace that system and
have it be, or remain,
connected to the
network -
the system is not capable of
generating more electricity than
was specified in that application.
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44C. Standard feed-in tariff customers
For the purposes of this Act, a person is a
standard feed-in tariff customer in
respect of premises if -
(a) the person is, in relation to the
premises, a small customer of an
authorised retailer; and
(b) the premises are situated on
mainland Tasmania; and
(c) a qualifying system in relation to
the premises is installed at the
premises and connected to the
distribution network by the
distributor in respect of the
premises; and
(d) the person is not a transitional
feed-in tariff customer in respect
of the premises.
44D. Transitional feed-in tariff customers
(1) For the purposes of this Act, a person is a
transitional feed-in tariff customer in
respect of premises if -
(a) the person is, in relation to the
premises, a small customer of an
authorised retailer; and
(b) the premises are situated on
mainland Tasmania; and
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(c) the person was, immediately
before the transition day -
(i) a customer, in respect of
the premises, of an
authorised retailer; or
(ii) a spouse of a customer, in
respect of the premises, of
an authorised retailer; and
(d) a qualifying system in relation to
the premises is installed at the
premises and connected to the
distribution network by the
distributor in respect of the
premises; and
(e) the customer, or a spouse of the
customer, is a recognised
applicant in respect of the
premises; and
(f) the person has not ceased, after
the transition day, to be, in
respect of the premises, a
customer of an authorised
retailer, except if -
(i) the person has so ceased
in order to become, in
respect of the premises, a
customer of another
authorised retailer; or
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(ii) the person's spouse has
become a customer, of the
authorised retailer, in
respect of the premises;
and
(g) 31 December 2018 has not
expired.
(2) For the purposes of subsection (1)(e), a
customer, or a spouse of the customer, is
a recognised applicant in respect of
premises if -
(a) an accurately completed
application -
(i) that relates to the
premises; and
(ii) that is for a qualifying
system to be connected to
the distribution network;
and
(iii) that is in a form approved,
by the distributor in
respect of the premises,
for use before the
transition day -
is received, before the transition
day, from the customer, or the
spouse of the customer, by the
distributor and is accepted by the
distributor; and
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(b) a qualifying system in relation to
the premises is installed and
connected at the premises before
31 August 2014.
(3) A feed-in tariff customer in respect of
premises -
(a) who is, immediately before
1 January 2019, a transitional
feed-in tariff customer in respect
of the premises; and
(b) who receives, or is to receive, an
electricity account in respect of
the premises for a billing period
in relation to the premises that
begins before, and expires after,
1 January 2019 -
is to be taken, for the purposes only of
ensuring that the customer is entitled to
receive the feed-in tariff billing amount
that would be payable in respect of that
billing period if the customer were a
transitional feed-in tariff customer, to be
a transitional feed-in tariff customer in
respect of the premises, for so much of
the billing period as expires before
1 January 2019.
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44E. Authorised retailers to pay feed-in tariffs
and provide feed-in tariff supply statements
(1) An authorised retailer in respect of
premises must ensure that a feed-in tariff
supply statement, in respect of a billing
period in relation to the premises, is sent
to a feed-in tariff customer in respect of
the premises, if, in the billing period,
electricity is supplied to the distribution
network in respect of the premises by a
qualifying system installed at the
premises.
Penalty: Fine not exceeding 50 penalty
units.
(2) An authorised retailer must pay, to a
customer of the retailer who is a feed-in
tariff customer in respect of premises, the
feed-in tariff billing amount, if any, in
respect of a billing period in relation to
the premises.
Penalty: Fine not exceeding 100 penalty
units.
(3) The feed-in tariff billing amount in
respect of a billing period in relation to
premises is the amount calculated by
multiplying, by the feed-in tariff rate that
applies in respect of the premises under
section 44F in relation to the kilowatt
hour, each kilowatt hour of electricity
that is, during the billing period, supplied
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to the distribution network by a
qualifying system that is -
(a) installed at the premises; and
(b) connected to the distribution
network by the distributor in
respect of the premises.
(4) Nothing in this Division is to be taken to
prevent an authorised retailer from
paying to a customer in respect of
premises a greater amount for the supply
of electricity from the premises than the
authorised retailer is required to pay
under this section, but such a greater
amount is not to be taken to be -
(a) any part of the feed-in tariff
billing amount in relation to the
premises; or
(b) any part of the amount that a
distributor is required to pay to an
authorised retailer under
section 44I.
(5) An authorised retailer is to pay the feed-
in tariff billing amount in respect of
premises in the prescribed manner.
Penalty: Fine not exceeding 100 penalty
units.
(6) An authorised retailer is not required
under subsection (2) to pay to a feed-in
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tariff customer in respect of premises the
feed-in tariff billing amount in respect of
the premises for more than one
qualifying system installed at the
premises.
(7) If more than one qualifying system is
installed at premises -
(a) a feed-in tariff customer in
respect of the premises may
notify the distributor in respect of
the premises as to which
qualifying system is to be taken
to be the only qualifying system
in relation to the premises; and
(b) the qualifying system specified in
the notice is to be taken to be the
only qualifying system in relation
to the premises.
44F. Feed-in tariff rates
(1) If a transitional feed-in tariff customer in
respect of premises is a residential
customer in respect of the premises, the
feed-in tariff rate that applies in respect
of the premises is 28.283 cents in relation
to a kilowatt hour.
(2) If a transitional feed-in tariff customer in
respect of premises is a small business
customer in respect of the premises and
the billing period to which the rate is to
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apply is a quarterly billing period, the
feed-in tariff rate that applies in respect
of the premises is -
(a) 38.577 cents in relation to each
kilowatt hour that is within the
first 500 kilowatt hours of
electricity supplied, during the
billing period, to the distribution
network in respect of the
premises by a qualifying system
installed at the premises; or
(b) 28.319 cents in relation to each
kilowatt hour that -
(i) is supplied, during the
billing period, to the
distribution network in
respect of the premises by
a qualifying system
installed at the premises;
and
(ii) is so supplied after the
first 500 kilowatt hours of
electricity are so supplied.
(3) If a transitional feed-in tariff customer in
respect of premises is a small business
customer in respect of the premises and
the billing period to which the rate is to
apply is not a quarterly billing period, the
feed-in tariff rate that applies in respect
of the premises is -
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(a) 38.577 cents in relation to each
kilowatt hour that -
(i) is supplied, during the
billing period, to the
distribution network in
respect of the premises by
a qualifying system
installed at the premises;
and
(ii) is so supplied before the
relevant generation
threshold in relation to the
billing period is reached;
or
(b) 28.319 cents in relation to each
kilowatt hour of electricity that -
(i) is supplied, during the
billing period, to the
distribution network in
respect of the premises by
a qualifying system
installed at the premises;
and
(ii) is so supplied after the
relevant generation
threshold in relation to the
billing period is reached.
(4) For the purposes of subsection (3), the
relevant generation threshold in relation
to a billing period is reached when the
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number of kilowatt hours of electricity
that is supplied during that billing period
becomes equal to, or greater than, the
number obtained by dividing the number
of days in the billing period by 91 and
multiplying by 500 the number obtained.
(5) If a customer is a standard feed-in tariff
customer in respect of premises, the feed-
in tariff rate that applies in respect of the
premises in relation to a kilowatt hour is
the rate that -
(a) is specified in, or determined
under, a determination under
section 44G that is in force at the
time of the supply of the
electricity, from the premises, for
which the rate is to be applied in
a calculation under
section 44E(3); and
(b) under the determination, applies
in respect of the premises in
relation to the kilowatt hour.
44G. Feed-in tariff rate determinations
(1) The Regulator must determine, for the
purposes of section 44E(5), the feed-in
tariff rate that applies in respect of
premises in relation to a kilowatt hour.
(2) The feed-in tariff rate in respect of
premises in relation to a kilowatt hour
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may be a differential rate that varies
according to either or both of the
following:
(a) the class of premises;
(b) factors specified in the
determination.
(3) The feed-in tariff rate for standard feed-
in tariff customers may be expressed as -
(a) a rate in relation to a kilowatt
hour; or
(b) a method for determining a rate in
relation to a kilowatt hour.
(4) The Regulator may amend or revoke a
determination under subsection (1).
(5) The regulations may make provision in
relation to -
(a) the making of determinations
under this section; and
(b) the amending or revoking of
determinations under this section;
and
(c) the making of adjustments to
determinations made under this
section; and
(d) the charging to an electricity
entity, or an authorised retailer, of
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costs incurred by the Regulator in
exercising the Regulator's powers
under this Division or the
regulations.
(6) The regulations may provide that the first
determination to be made under
subsection (1) is to be consistent with the
recommendation, as to the rate to be paid
by authorised retailers, that is made by
the Regulator in the relevant report.
(7) For the purposes of subsection (6), the
relevant report is the report, made by the
Regulator before the day on which this
section commences, pursuant to a
request, made to the Regulator by the
Minister, for the Regulator to
recommend the rate to be paid by
authorised retailers to small customers in
respect of premises from which
electricity is supplied to a distribution
network by a system -
(a) for the generation of electricity
by solar, wind or water power;
and
(b) that has -
(i) for a system that has a
single-phase inverter, a
total generation capacity
of not more than 10kVA;
or
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(ii) for a system that has a 3-
phase inverter, a total
generation capacity of not
more than 30kVA.
(8) A determination made under this section
remains in force for the period
determined in accordance with the
regulations.
(9) If the regulations make provision in
relation to the making, amendment or
revocation of a determination under this
section, a determination under this
section that is to be made, amended or
revoked is to be, respectively, made,
amended or revoked in accordance with
the regulations.
44H. Principles to be taken into account in
making feed-in tariff rate determinations
(1) In determining a feed-in tariff rate under
section 44G, the Regulator must consider
the following matters:
(a) the fair and reasonable value to
authorised retailers of electricity
supplied to the distribution
network by feed-in tariff
customers;
(b) the net financial benefit, to
authorised retailers, of electricity
supplied to the distribution
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network by feed-in tariff
customers, having regard to the
costs of authorised retailers,
including, but not limited to
including -
(i) the costs to authorised
retailers of purchasing
wholesale electricity; and
(ii) other costs of authorised
retailers in operating their
retail electricity
businesses;
(c) the other costs, or other benefits,
that -
(i) the Regulator considers
relevant, including, but
not limited to including,
those related to the
distribution networks or
transmission networks;
and
(ii) result, either directly or
indirectly -
from the supply of electricity to
distribution networks by
qualifying systems at premises of
small customers;
(d) the COAG National Principles for
Feed-in Tariff Arrangements, as
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those Principles apply from time
to time;
(e) any arrangements of the
Commonwealth, whether
legislative or otherwise, in
relation to the pricing of carbon
emissions or other mechanisms to
reduce the use of carbon-emitting
fuels;
(f) the principle that the feed-in tariff
rate specified in the determination
should not have the effect that
any customer would effectively
be cross-subsidising any other
customer;
(g) such approaches, methodologies,
findings or recommendations,
taken or made in other
jurisdictions, as the Regulator
thinks fit, for determining fair and
reasonable feed-in tariff rates;
(h) any prescribed matters;
(i) any other matter the Regulator
thinks relevant.
44I. Distributors to reimburse authorised
retailers for difference between rates
(1) If an authorised retailer pays to a
transitional feed-in tariff customer a
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feed-in tariff billing amount in respect of
premises, the amount equal to the
difference between -
(a) the feed-in tariff billing amount
paid by the authorised retailer to
the customer; and
(b) the feed-in tariff billing amount
in respect of the premises that
would have been paid to the
customer under section 44E(2) by
the authorised retailer if the
transitional feed-in tariff
customer had been a standard
feed-in tariff customer in respect
of the premises -
is a debt due and payable to the
authorised retailer by the distributor in
respect of the premises.
(2) An amount of a debt due and payable by
a distributor to an authorised retailer
under subsection (1) may be paid -
(a) by way of a deduction of the
amount of the debt from the
amount of any network charges
that are payable to the distributor
by the authorised retailer; or
(b) in a manner agreed between the
distributor and an authorised
retailer; or
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(c) in a manner approved by a court
in which the debt is recovered
under subsection (3).
(3) A debt that is due and payable under
subsection (1) to an authorised retailer by
a distributor may be recovered in a court
of competent jurisdiction.
44J. Report and recording obligations of
distributors
(1) A distributor in respect of premises must
keep an accurate record of the matters,
relating to feed-in tariff customers, that
are prescribed in regulations for the
purposes of this subsection.
(2) A distributor in respect of premises must,
within the period specified in regulations
for the purposes of this subsection,
provide to the Regulator a report
containing the matters prescribed in such
regulations.
(3) A distributor in respect of premises must,
if a person becomes, or has ceased to be,
a customer, of an authorised retailer, who
is a transitional feed-in tariff customer in
respect of the premises, advise -
(a) the customer; and
(b) each authorised retailer who has
become, or has ceased to be, the
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authorised retailer in respect of
such a customer in relation to
those premises -
that the customer has become, or has
ceased to be, respectively, a transitional
feed-in tariff customer in respect of the
premises.
8. Section 121AA amended (Costs of transfer of
prepayment meter customers recoverable from
distributor)
Section 121AA of the Principal Act is amended
as follows:
(a) by omitting from subsection (1)(a)
"costs" and substituting "relevant costs";
(b) by omitting from subsection (1)(a) "the
termination" and substituting "a relevant
termination";
(c) by inserting in subsection (1)(b) "(unless
otherwise agreed between the distributor
and the authorised retailer)" after
"being";
(d) by inserting the following subsections
after subsection (1):
(1A) For the purposes of
subsection (1)(a), the relevant
costs incurred by an authorised
retailer in relation to a relevant
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Electricity Supply Industry Amendment (Feed-in Tariffs and Other
Matters) Act 2013
Act No. of
s. 8
termination are the costs charged
to the retailer by the distributor
for the removal or reconfiguration
of a prepayment meter system
installed at the premises to which
the relevant termination relates.
(1B) For the purposes of
subsection (1)(a), a relevant
termination is a termination, of a
prepayment meter market retail
contract in relation to a
prepayment meter of the
prescribed type installed at
premises, by a customer -
(a) who has received from an
authorised retailer a
notice of the variation of
the tariffs and charges in
relation to the prepayment
meter market retail
contract; and
(b) who has, within 20 days
of receiving the notice
referred to in
paragraph (a), given,
under the National Energy
Retail Rules, notice to the
authorised retailer of the
customer's intention to
terminate the prepayment
meter market retail
contract; and
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Electricity Supply Industry Amendment (Feed-in Tariffs and
Other Matters) Act 2013
Act No. of
s. 9
(c) who has, subsequent to
the termination of the
prepayment meter market
retail contract, entered
into a standard retail
contract in relation to the
premises; and
(d) who has not previously
terminated a prepayment
meter market retail
contract in relation to a
prepayment meter system
of the prescribed type
installed at the premises.
9. Repeal of Act
This Act is repealed on the three-hundred and
sixty fifth day from the day on which all of the
provisions of this Act commence.
32 Government Printer, Tasmania