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ELECTRICITY INDUSTRY (FURTHER MISCELLANEOUS AMENDMENT) BILL 1997

                 PARLIAMENT OF VICTORIA

        Electricity Industry (Further Miscellaneous
                   Amendment) Act 1997
                                 Act No.


                         TABLE OF PROVISIONS
Clause                                                              Page

PART 1--PRELIMINARY                                                      1
  1.     Purpose                                                        1
  2.     Commencement                                                   2

PART 2--AMENDMENT OF ELECTRICITY INDUSTRY ACT
1993                                                                    3
  3.     Principal Act                                                  3
  4.     Definitions                                                    3
  5.     Amendment of section 44A                                       3
  6.     Amendment relating to National Electricity Law                 3
  7.     New section 84AAA inserted                                     4
         84AAA. Certain assets not to be fixtures                       4
  8.     National electricity market operator                           4
  9.     VPX may be transferor under Part 11AC                          4
  10.    New section 153TUA inserted                                    5
         153TUA. Value to TCO of transferred property                   5
  11.    New section 155A inserted                                      5
         155A. Conferral of power on ACCC in relation to transmission
                  pricing                                                5
  12.    Regulation of transmission charges                              6
  13.    Amendment of section 163AAA                                     7
  14.    Amendment of section 171                                        8
  15.    New section 173A inserted                                       8
         173A. Temporary exemption from prohibition                      9

PART 3--VICTORIAN ENERGY NETWORKS CORPORATION                           10
  16.    Definition of VENCORP                                          10
  17.    Part 2A substituted                                            10
         PART 2A--VICTORIAN ENERGY NETWORKS
         CORPORATION                                                    10
         41A.        Functions                                          10



                                    i
531243B.I1-15/9/97

 


 

Clause Page 18. Definition of VPX 10 19. New section inserted in Part 1A of Gas Industry Act 1994 11 8CA. Functions and powers relating to electricity 11 PART 4--AMENDMENT OF OTHER ACTS 12 20. National Electricity (Victoria) Act 1997 12 8A. Proceedings in respect of Code 12 8B. Supreme Court-limitation of jurisdiction 12 21. Electricity Industry (Miscellaneous Amendment) Act 1997 12 22. Loy Yang B Act 1992 12 23. Further amendment of State Owned Enterprises Act 1992 13 24. New section 88AA inserted in State Owned Enterprises Act 1992 13 88AA. Application of section 88 to certain bodies 13 25. New section 18A substituted in Crown Land (Reserves) Act 1978 14 18A. Agreement with electricity company--reserved land 14 26. New section 57D substituted in Forests Act 1958 15 57D. Agreement with electricity company--reserved forest 16 27. Further amendment of Forests Act 1958 17 28. New section 229 substituted in Land Act 1958 17 229. Agreement with electricity company 17 29. New section 27A inserted in National Parks Act 1975 18 27A. Agreement with electricity company 18 30. Further amendment of National Parks Act 1975 20 NOTES 21 ii 531243B.I1-15/9/97

 


 

PARLIAMENT OF VICTORIA A BILL to make further amendments to the Electricity Industry Act 1993, to amend the National Electricity (Victoria) Act 1997 and certain other Acts and for other purposes. Electricity Industry (Further Miscellaneous Amendment) Act 1997 The Parliament of Victoria enacts as follows: PART 1--PRELIMINARY 1. Purpose The purpose of this Act is to provide for further miscellaneous amendments of the Electricity 5 Industry Act 1993 and certain other Acts. 1 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 2 Act No. 2. Commencement (1) Subject to this section, this Act comes into operation on the day on which it receives the Royal Assent. 5 (2) Sections 4(2), 6 and 8 and Part 3 come into operation on a day or days to be proclaimed. _______________ 2 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 3 6 Act No. PART 2--AMENDMENT OF ELECTRICITY INDUSTRY ACT 1993 No. 130/1993. 3. Principal Act Reprint No. 3 as at 14 July In this Part, the Electricity Industry Act 1993 is 1997. 5 called the Principal Act. 4. Definitions (1) In section 3(1) of the Principal Act insert-- ' "licence" means a licence under section 162; "licensee", except in Part 13, means the holder of 10 a licence under section 162;'. (2) In section 3(1) of the Principal Act insert-- ' "National Electricity Code" has the same meaning as "Code" has in the National Electricity (Victoria) Law; 15 "NEMMCO" has the same meaning as in the National Electricity (Victoria) Law; "wholesale electricity market" means the market for wholesale trading in electricity operated by NEMMCO;'. 20 (3) In section 154 of the Principal Act, the definition of "licence" is repealed. 5. Amendment of section 44A In section 44A of the Principal Act-- (a) for "telecommunications service" (where 25 twice occurring) substitute "carriage service"; (b) in sub-section (1) for "1991" substitute "1997". 30 6. Amendment relating to National Electricity Law 3 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 Act No. In section 9(1) of the Principal Act, after "Part 12" insert "and the National Electricity (Victoria) Law and the National Electricity Code". 7. New section 84AAA inserted 5 After section 84A of the Principal Act insert-- "84AAA. Certain assets not to be fixtures (1) The Minister may, by written notice, declare that specified assets that are affixed to land and that are disposed of by VPX, a public 10 transmission company or a public generation company are taken, for all purposes, to be separate assets being chattels personal and not fixtures. (2) The declaration has effect accordingly.". 15 8. National electricity market operator In the Principal Act-- (a) in section 158B(2), for "market for wholesale trading in electricity operated and administered by VPX" substitute "wholesale 20 electricity market"; (b) in section 159, sub-section (2) is repealed; (c) in section 159(3), omit "or (2)" (where twice occurring); (d) in section 171(9)(b) omit "operated and 25 administered by VPX". 9. VPX may be transferor under Part 11AC (1) In section 153TQ(1) of the Principal Act, in the definition of "transferor company", after "means" insert "VPX or". 30 (2) At the end of section 153TR of the Principal Act insert-- 4 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 10 Act No. "(2) The Treasurer may nominate VPX as a transferor company for the purposes of this Part.". 10. New section 153TUA inserted 5 After section 153TU of the Principal Act insert-- "153TUA. Value to TCO of transferred property If, in an agreement for the sale by the TCO of the business or assets of the TCO, a value is ascribed to property, rights or liabilities 10 that are allocated to a TCO transferee under an allocation statement, that value is deemed to be consideration paid to, or received by, the TCO.". 11. New section 155A inserted 15 After section 155 of the Principal Act insert-- '155A. Conferral of power on ACCC in relation to transmission pricing (1) The Minister, on behalf of the State, may enter into an agreement with the 20 Commonwealth and the Australian Competition and Consumer Commission established by section 6A of the Trade Practices Act 1974 of the Commonwealth ("ACCC") for the performance of such 25 functions and the exercise of such powers as the Office has in relation to the regulation of charges for connection to, and the use of, the transmission system, whether under an Order made under section 158A or otherwise. 30 (2) The ACCC, and the members of the ACCC, have power to perform such functions and exercise such powers as are conferred on the ACCC by an agreement under sub-section (1). 5 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 12 Act No. (3) An agreement referred to in sub-section (1) shall be published in the Government Gazette. (4) An agreement under sub-section (1) comes 5 into effect on publication of a copy in accordance with sub-section (3) or on such later date as is specified in the agreement. (5) Despite anything to the contrary in section 39A of the Office of the Regulator-General 10 Act 1994, the Office may give to the ACCC such information as may be necessary or convenient for the ACCC to have in connection with carrying out the functions and powers of the Office that are conferred 15 on the ACCC by an agreement under this section.'. 12. Regulation of transmission charges (1) In the Principal Act-- (a) in section 158(1)(b), after "(iii)" insert 20 "unless an Order is in force under sub- section (2),"; (b) in section 158A(1), after "(c)" insert "unless an Order is in force under section 158(2),". (2) After section 158(1) of the Principal Act insert-- 25 "(2) The Governor in Council may, by Order published in the Government Gazette, declare that charges for connection to, and the use of, the transmission system are subject to the regulation of the ACCC under 30 an agreement entered into under section 155A and are not subject to the regulation of the Office.". 6 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 13 Act No. 13. Amendment of section 163AAA (1) In section 163AAA of the Principal Act-- (a) in sub-section (1), for all words after "requirement" substitute "that, in certain 5 circumstances, the licensee, on terms and conditions approved by the Office, supply and sell electricity to non-franchise customers to whom electricity is supplied under another licence (whether held by that 10 licensee or another licensee)"; (b) in sub-section (2) for "determining" substitute "approving"; (c) in sub-section (3) for paragraph (b) substitute-- 15 "(b) to a non-franchise customer to whom electricity is supplied under another licence if the non-franchise customer elects, in writing given to the holder of that other licence, not to be a non- 20 franchise customer for the purposes of sub-section (1).". (2) In section 163AAA of the Principal Act, for sub- section (5) substitute-- '(5) The obligation of the holder of a licence 25 ("the second licence") to supply and sell electricity to a non-franchise customer to whom electricity is supplied under another licence ("the first licence") in accordance with the requirement referred to in sub- 30 section (1) commences when-- (a) the first licence is suspended or revoked; or (b) the right of the holder of the first licence to acquire electricity from the 7 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 14 15 Act No. market for wholesale trading in electricity is suspended or terminated-- whichever first occurs, and ends after 3 months or when the non-franchise customer 5 advises the holder of the second licence in writing that the supply and sale is no longer required, whichever first occurs.'. (3) In section 163AAA of the Principal Act-- (a) in sub-section (6), for "may declare" 10 substitute "must declare, if the condition so requires or, in any other case, may declare"; (b) in sub-section (6), for "emergency customers" substitute "non-franchise customers to whom electricity is supplied 15 under another licence in circumstances to which sub-section (5) applies"; (c) in sub-section (7), for "emergency" substitute "non-franchise"; (d) in sub-section (8) for "an emergency" 20 substitute "a non-franchise"; (e) sub-section (9) is repealed. 14. Amendment of section 171 In section 171 of the Principal Act, in the definition of "licensee", for paragraph (a) 25 substitute-- "(a) a distribution company, generation company or transmission company other than a public distribution company, public generation company or public transmission company; 30 or". 15. New section 173A inserted 8 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 Act No. After section 173 of the Principal Act insert-- "173A. Temporary exemption from prohibition (1) The Treasurer may, in writing given to the Office, declare that a specified person does 5 not, by reason only of having a specified controlling interest or specified substantial interest, have a prohibited interest during a specified period ending not more than 6 months after the day on which the 10 declaration is made. (2) A declaration under sub-section (1) may be made subject to such conditions as are specified in it. (3) A declaration under this section has effect 15 according to its terms and ceases to have effect-- (a) at the end of the specified period; or (b) upon a breach of a condition to which it is expressed to be subject.". 20 _______________ 9 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 16 Act No. PART 3--VICTORIAN ENERGY NETWORKS CORPORATION 16. Definition of VENCORP In section 3(1) of the Electricity Industry Act 5 1993 insert-- ' "VENCORP" means Victorian Energy Networks Corporation established under Part 1A of the Gas Industry Act 1994;'. 17. Part 2A substituted 10 For Part 2A of the Electricity Industry Act 1993 substitute-- "PART 2A--VICTORIAN ENERGY NETWORKS CORPORATION 41A. Functions 15 Subject to the National Electricity (Victoria) Law and the National Electricity Code, the functions of VENCORP are-- (a) to plan, and direct the augmentation of, the electricity transmission system; 20 (b) to provide information and other services to facilitate decisions for investment and the use of resources in the electricity industry.". 18. Definition of VPX 25 In section 3(1) of the Electricity Industry Act 1993-- (a) the definition of "PoolCo" is repealed; (b) for the definitions of "VPX" and "Victorian Power Exchange" substitute-- 10 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 19 Act No. ' "VPX" or "Victorian Power Exchange" means Victorian Energy Networks Corporation established under Part 1A of the Gas Industry Act 1994;'. 5 19. New section inserted in Part 1A of Gas Industry Act 1994 After section 8C of the Gas Industry Act 1994 insert-- "8CA. Functions and powers relating to electricity 10 VENCORP has the functions and powers conferred on it under the Electricity Industry Act 1993.". _______________ 11 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 20 Act No. PART 4--AMENDMENT OF OTHER ACTS 20. National Electricity (Victoria) Act 1997 After section 8 of the National Electricity (Victoria) Act 1997 insert-- 5 "8A. Proceedings in respect of Code Except as otherwise provided in section 10 of the National Electricity (Victoria) Law, a person-- (a) may not bring proceedings against 10 NECA; or (b) being a person other than NECA, may not bring proceedings against a Code participant-- in respect of an alleged contravention of the 15 Code. 8B. Supreme Court-limitation of jurisdiction It is the intention of section 8A to alter or vary section 85 of the Constitution Act 1975.". No. 35/1992. 20 21. Electricity Industry (Miscellaneous Amendment) Act 1997 In the Electricity Industry (Miscellaneous Amendment) Act 1997-- (a) in section 2(2), omit "10,"; 25 (b) section 10 is repealed. 22. Loy Yang B Act 1992 In the Loy Yang B Act 1992-- (a) sections 12 to 21 are repealed; (b) section 23 to 25 is repealed; 12 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 23 Act No. (c) section 28 is repealed; (d) sections 29 to 32 are repealed; (e) section 37 is repealed; (f) Part 5 is repealed. 5 23. Further amendment of State Owned Enterprises Act 1992 In section 63(1) of the State Owned Enterprises Act 1992, after "existing capital of a converting body" insert ", as at a date specified in the 10 declaration,". 24. New section 88AA inserted in State Owned Enterprises Act 1992 After section 88 of the State Owned Enterprises Act 1992 insert-- 15 '88AA. Application of section 88 to certain bodies (1) Despite anything to the contrary in section 88, the Treasurer may give a direction under sub-section (1) of that section to a State body in respect of a financial year beginning on 20 1 July 1994 or any later period. (2) If a direction is given to a State body in respect of a period referred to in sub-section (1), the State body must comply with section 88 in respect of that period. 25 (3) In this section-- "State body" means-- (a) a State owned enterprise; or (b) a statutory corporation in respect of which a declaration under 30 section 88A is in force-- being a body that, before 1 July 1994-- 13 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 25 Act No. (c) was liable to pay income tax to the Commonwealth but that ceased to be so liable on that date by reason of being an STB within the 5 meaning of Division 1AB in Part III of the Income Tax Assessment Act 1936 of the Commonwealth; or (d) was liable to pay sales tax under 10 the law of the Commonwealth in respect of goods supplied to it but that ceased to be so liable on that date by reason of being an STB within the meaning of item 126A 15 of Schedule 1 of the Sales Tax (Exemptions and Classifications) Act 1992 of the Commonwealth.'. 25. New section 18A substituted in Crown Land (Reserves) Act 1978 20 For section 18A of the Crown Land (Reserves) Act 1978 substitute-- '18A. Agreement with electricity company-- reserved land (1) The Minister may enter into an agreement 25 with an electricity company-- (a) to manage and control; or (b) to carry out duties, functions and powers related to the company's purpose on-- 30 any reserved land, other than land that is a reference area under the References Areas Act 1978, that is used for the purposes of or in connection with the company's purpose. 14 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 26 Act No. (2) An agreement under sub-section (1)-- (a) must be in writing; and (b) may be amended from time to time or terminated by further written agreement 5 between the parties; and (c) must contain provisions with respect to the protection and conservation of the land subject to the agreement. (3) In this section-- 10 "electricity company" means a generation company, transmission company or distribution company within the meaning of the Electricity Industry Act 1993; 15 "company's purpose" means-- (a) in relation to an electricity company that is a generation company, the generation of electricity for the purposes of 20 supply or sale; (b) in relation to an electricity company that is a transmission company, the transmission of electricity; 25 (c) in relation to an electricity company that is a distribution company, the distribution or supply of electricity.'. 26. New section 57D substituted in Forests Act 1958 30 For section 57D of the Forests Act 1958 substitute-- 15 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 26 Act No. '57D. Agreement with electricity company-- reserved forest (1) The Minister may enter into an agreement with an electricity company-- 5 (a) to manage and control; or (b) to carry out duties functions and powers related to the company's purpose in-- any area of reserved forest, other than any 10 area that is a reference area under the Reference Areas Act 1978, that is used for the purposes of or in connection with the company's purpose. (2) An agreement under sub-section (1)-- 15 (a) must be in writing; (b) may be amended from time to time or terminated by further written agreement between the parties; and (c) must contain provisions with respect to 20 the protection and conservation of the land subject to the agreement. (3) In this section-- "electricity company" means a generation company, transmission company or 25 distribution company within the meaning of the Electricity Industry Act 1993; "company's purpose" means-- (a) in relation to an electricity 30 company that is a generation company, the generation of electricity for the purposes of supply or sale; 16 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 27 Act No. (b) in relation to an electricity company that is a transmission company, the transmission of electricity; 5 (c) in relation to an electricity company that is a distribution company, the distribution or supply of electricity.'. 27. Further amendment of Forests Act 1958 10 (1) After section 57B(5) of the Forests Act 1958 insert-- '(6) In this section, "generation company" has the same meaning as in the Electricity Industry Act 1993.'. 15 (2) After section 57C(2) of the Forests Act 1958 insert-- '(3) In this section, "generation company" has the same meaning as in the Electricity Industry Act 1993.'. 20 28. New section 229 substituted in Land Act 1958 For section 229 of the Land Act 1958 substitute-- '229. Agreement with electricity company (1) The Minister may enter into an agreement 25 with an electricity company-- (a) to manage and control; or (b) to carry out duties functions and powers related to the company's purpose on-- 30 any Crown land, other than land that is a reference area under the Reference Areas Act 1978, that is used for the purposes of or in connection with the company's purpose. 17 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 29 Act No. (2) An agreement under sub-section (1)-- (a) must be in writing; and (b) may be amended from time to time or terminated by further written agreement 5 between the parties; and (c) must contain provisions with respect to the protection and conservation of the land subject to the agreement. (3) In this section-- 10 "electricity company" means a generation company, transmission company or distribution company within the meaning of the Electricity Industry Act 1993; 15 "company's purpose" means-- (a) in relation to an electricity company that is a generation company, the generation of electricity for the purposes of 20 supply or sale; (b) in relation to an electricity company that is a transmission company, the transmission of electricity; 25 (c) in relation to an electricity company that is a distribution company, the distribution or supply of electricity.'. 29. New section 27A inserted in National Parks Act 1975 30 After section 27 of the National Parks Act 1975 substitute-- '27A. Agreement with electricity company 18 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 29 Act No. (1) The Minister may enter into an agreement with an electricity company-- (a) to manage and control; or (b) to carry out duties, functions and 5 powers related to the company's purpose in-- any area that is used for the purposes of or in connection with the company's purpose, being an area of a national park, State park 10 or land referred to in Schedule Three, other than land that is a wilderness zone or a remote and natural area or a reference area under the Reference Areas Act 1978. (2) An agreement under sub-section (1)-- 15 (a) must be in writing; and (b) may be amended from time to time or terminated by further written agreement between the parties; and (c) must contain provisions with respect to 20 the protection and conservation of the land subject to the agreement. (3) Despite sub-section (1), an agreement under that sub-section may apply to the carrying out of duties, functions and powers related to 25 the purpose of a transmission company in a reference area to the extent to which they were so carried out immediately before the commencement of section 29 of the Electricity Industry (Further 30 Miscellaneous Amendment) Act 1997. (4) In this section-- 19 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 s. 30 Act No. "electricity company" means a transmission company or distribution company within the meaning of the Electricity Industry Act 1993; 5 "company's purpose" means-- (a) in relation to an electricity company that is a transmission company, the transmission of electricity; 10 (b) in relation to an electricity company that is a distribution company, the distribution or supply of electricity.'. 30. Further amendment of National Parks Act 1975 15 (1) After section 30AA(5) of the National Parks Act 1975 insert-- '(6) In this section, "generation company" has the same meaning as in the Electricity Industry Act 1993.'. 20 (2) In section 30AB(3) of the National Parks Act 1975 omit "section 30AA and in". 20 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 Notes Act No. NOTES By Authority. Government Printer for the State of Victoria. 21 531243B.I1-15/9/97

 


 

Electricity Industry (Further Miscellaneous Amendment) Act 1997 Act No. 22 531243B.I1-15/9/97

 


 

 


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