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Electricity Supply Industry Restructuring (Savings and Transitional
Provisions) Amendment Bill 2011
Clause Notes
Clause 1 Short Title
Clause 2 Commencement
This Act will commence on the day on which this Act
receives the Royal Assent.
Clause 3 Principal Act
The Principal Act referred to is the Electricity Supply
Industry Restructuring (Savings and Transitional
Provisions) Act 1995.
Clause 4 Part 4, Division 2, substituted
The existing Division 2 is substituted with a new
Division 2.
Section 16A Interpretation of Division
The terms "2011 transition day", "2011 transition period",
"entitlement holder", "Lake River" and "Water Minister
are defined.
"2011 transition day" refers to the day on which the
Electricity Supply Industry Restructuring (Savings and
Transitional Provisions) Amendment Act 2011
commences.
"2011 transition period" refers to the 4 month period
following the commencement of the Act, and if extended
by the Minister under s.16C(3), it refers to this 4 month
period plus the extension.
"entitlement holder" refers to:
a) an owner of land to which s.16(2)(b) of the Electricity
Supply Industry Restructuring (Savings and
Transitional Provisions) Act 1995 applied
immediately before the commencement of Electricity
Supply Industry Restructuring (Savings and
Transitional Provisions) Amendment Act 2011;
b) the Lawrenny Water Trust (as it has a statutory
obligation under the Irrigation Clauses Act 1973 to
supply water to owners of land within the Lawrenny
Waterworks)
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"Lake River" means that watercourse from its source to
its confluence with the South Esk River. At some point in
the past the section of the Lake River between its
junction with the Macquarie River and South Esk River
was renamed the Macquarie River. For the purposes of
this Act, that section of river is considered to be the Lake
River (as it was known when the existing statutory
provisions were first enacted in 1957).
"Water Minister" is defined as the Minister administering
the Water Management Act 1999.
Section 16B. Obligation of HEC to supply certain
water entitlements
Subsection (1) states that the HEC must make water
available from the beds of the Lake River and River
Ouse to every entitlement holder.
Subsection (2) requires that the HEC's obligation under
subsection (1) is taken to be a condition of its special
licence under the Water Management Act 1999.
Section 16C. Quantification of HEC obligation to
supply certain water entitlements
Subsection (1) requires that the amount of water to be
made available under section 16B(1) is to be determined
by agreement during the 2011 transition period, or where
agreement cannot be reached, awarded by arbitration.
Consequent on agreement or award, the amount of
water to be made available is to be fixed by an Order
under section 16D.
Subsection (2) clarifies that an agreement under
subsection (1) may be between the HEC and entitlement
holders individually or collectively, or groups of
entitlement holders (or any combination of these).
Subsection (3) enables the Minister to extend the
2011 transition period by a further period not exceeding
60 days to enable the HEC and entitlement holders to
reach an agreement under section 16B(1).
Subsection (4) requires that a Ministerial extension under
subsection (3) be made in writing before the
2011 transition period would otherwise end.
Subsection (5) specifies that if the HEC and any
entitlement holders are not able to reach an agreement
by the end of the 2011 transition period, the amount of
water to be made available in the cases where
agreement has not been reached is to be determined in
accordance with the Commercial Arbitration Act 1986.
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Subsection (6) clarifies that in addition to the powers
conferred by the Commercial Arbitration Act 1986, an
arbitrator may determine the amount of water to be made
available under section 16B(1) in respect of the
entitlement holders covered by the arbitration, and any
conditions relating to the supply of water.
Subsection (7) specifies that an arbitration determination
may be for entitlement holders individually or collectively,
or groups of entitlement holders (or any combination of
these).
Subsection (8) clarifies that an agreement or arbitrated
award cannot suspend, relinquish or terminate or provide
for the phased reduction of the HEC's obligation under
section 16B(1).
Section 16D. Orders providing for supply of certain
water entitlements
Subsection (1) clarifies that this section applies once an
agreement or arbitrated award has been made for and
entitlement holders individually or collectively, or groups
of entitlement holders (or any combination of these).
Subsection (2) provides the head of power for a
Ministerial Order to confer on entitlement holders
covered by an agreement or award, an authorisation to
take water under the Water Management Act 1999 or
Irrigation Clauses Act 1973.
Subsection (3) states that an Order is to fix the amount
of water to be made available under section 16B(1) to
entitlement holders covered by the agreement or award,
and sets out other matters that may be included:
a) appointment of one or more water districts under the
Water Management Act 1999;
b) prescription of terms and conditions relating to the
discharge of the HEC's obligations under section
16B(1); and
c) setting of limitations on the HEC's obligations under
section 16B(1).
Subsection (4) states that an Order may be made at any
time during and after the 2011 transition period. An
Order is to incorporate matters agreed to or awarded
under section 16C. The Order cannot be inconsistent
with an agreement or award, and may also apply
generally or differently as required.
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Subsection (5) has been included to avoid any doubt
regarding the powers the Water Minister has to confer
authorisations and establish water districts under the
Water Management Act 1999 and Irrigation Clauses Act
1973. It provides that an Order cannot be invalidated by
any inconsistency in other enactments made before the
Order.
Subsection (6) states that an Order is a statutory rule for
the purposes of the Rules Publication Act 1953, and is
not subordinate legislation for the purpose of the
Subordinate Legislation Act 1992.
Section 16E. Transitional obligation to provide water
for irrigation
This clause states that until an Order under section
16D(2) takes effect in respect of an entitlement holder,
the amount of water that the HEC must make to the
entitlement holder under section 16B(1) is the same
amount as it was obliged to make available under
section 16(1) of the Electricity Supply Industry
Restructuring (Savings and Transitional Provisions) Act
1995 immediately before the 2011 transition day.
This clause also specifies that until an Order under
section 16D(2) takes effect in respect of an entitlement
holder, they are taken to hold an authorisation under the
Water Management Act 1999 or the Irrigation Clauses
Act 1973, to take the water made available to them.
Clause 5 Repeal of Act
This clause details that this Act is repealed 90 days from
the date of commencement.
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