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Energy Legislation (Miscellaneous
Amendments) Bill
Introduction Print
EXPLANATORY MEMORANDUM
General
The Bill makes amendments to the Electricity Safety Act 1998 in relation to
electricity safety management schemes, the Electricity Industry Act 2000 in
relation to the methodology for determining the amounts payable by
generation companies for land use, the Gas Industry Act 2001 to allow a
review of VENCorp to be undertaken before 2007 and the Fuel Emergency
Act 1977 in relation to proclamations declaring a state of emergency.
Clause Notes
Clause 1 sets out the main purposes of the Bill which are as follows--
Paragraph (a) provides that the Electricity Safety Act 1998 is to
be amended in relation to the level of safety to be provided under
electricity safety management schemes submitted by network
operators.
Paragraph (b) provides that the Electricity Industry Act 2000 is
to be amended in relation to the methodology for determining
the amounts payable by generation companies for land use.
These amounts are paid in lieu of rates.
Paragraph (c) provides that the Gas Industry Act 2001 is to be
amended to allow a review of VENCorp to be undertaken before
2007.
Paragraph (d) provides that the Fuel Emergency Act 1977 is to
be amended in relation to proclamations declaring a state of
emergency due to a fuel shortage.
Clause 2 provides for the Bill to come into operation on the day after the
day on which it receives the Royal Assent.
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551279 BILL LA INTRODUCTION 4/5/2005
Clause 3 amends the Electricity Safety Act 1998.
Sub-clause (1) inserts a new definition of "practicable" into
section 3 of the Electricity Safety Act 1998 to apply to
sections 111 and 119 of that Act. The insertion of this definition
clarifies the meaning of practicable in relation to the level of
safety to be provided by an electricity safety management scheme
submitted by a network operator under Division 2 of Part 10 of
the Electricity Safety Act 1998 and in relation to the carrying
out of electrical work by a scheme operator under an accepted
electricity management safety scheme. In deciding whether
hazards and risks to the safety of persons and their property are
minimised as far as "practicable" regard is to be had to the
severity of the hazard or risk in question, the relevant state of
knowledge regarding the hazard or risk and the availability,
suitability and cost of implementing solutions to remove, reduce
or mitigate the hazard or risk.
Sub-clause (2) substitutes new section 111(1)(ab) of the
Electricity Safety Act 1998. Paragraph (ab) clarifies that an
electricity safety management scheme submitted by a network
operator must as far as is practicable minimise hazards and risks
to the safety of persons and of damage to property arising from
the upstream network to which the scheme applies. The wording
of paragraph (ab) reflects the current wording of section 119 of
the Electricity Safety Act 1998.
Sub-clause (2) also inserts new section 111(1)(ac) which retains
the existing required level of safety for the acceptance of
electricity safety management schemes submitted by entities
other than network operators under Division 2 of Part 10 of the
Electricity Safety Act 1998. Under this provision, an electricity
safety management scheme must provide a level of safety not
less than the level of safety which is required to be provided by
that Act and the regulations under that Act.
Clause 4 amends section 94 of the Electricity Industry Act 2000.
Sub-clause (1) substitutes new subsections (6), (6A), and (6B) for
existing section 94(6) of the Electricity Industry Act 2000 to
provide that in determining the amount a generation company
must pay to a relevant council for the use of land an arbitrator
must have regard to any methodology prescribed by an Order
in Council and published in the Government Gazette.
The Governor in Council may only make such an Order after
receiving the recommendation of both the Minister administering
the Electricity Industry Act 2000 and the Minister
administering the Local Government Act 1989.
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Sub-clause (2) substitutes a new definition of "land used for
generation functions" for the existing definition to clarify such
land may comprise several parcels of land which need not be
contiguous or in the same ownership.
Sub-clause (2) also substitutes a new definition of "relevant
council" to clarify that in the case of a power station operating on
land in multiple municipal districts each council will be included
as a relevant council for the purposes of section 94 of the
Electricity Industry Act 2000.
Clause 5 amends section 205(1) of the Gas Industry Act 2001 to omit the
reference to the year 2007 to clarify that the Minister may cause a
review of VENCorp to be undertaken by the ACCC or other
nominated person at any time instead of only during 2007.
Clause 6 amends section 3 of the Fuel Emergency Act 1977.
Paragraph (a) extends the current power of the Governor in
Council to declare a state of emergency if it appears that an event
has occurred or is about to occur which causes or is likely to
cause a fuel shortage.
Paragraph (b) extends the time allowed for a declaration to be in
force from one week to three months.
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