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National Electricity (Victoria) Bill
Introduction Print
EXPLANATORY MEMORANDUM
General
This Bill makes provision for the operation of the national electricity market,
for the repeal of the National Electricity (Victoria) Act 1997 and for
consequential amendments to the Electricity Industry Act 2000, the
Electricity Industry (Residual Provisions) Act 1993 and the
Interpretation of Legislation Act 1984.
Clause Notes
PART 1--PRELIMINARY
Clause 1 sets out the main purpose of the Act which is to make provision
in relation to the national electricity market.
Clause 2 provides for commencement of the Act.
The Act will commence on a day to be proclaimed. This will
enable the Act, and consequently, the new National Electricity
(Victoria) Law and National Electricity (Victoria) Regulations,
which form part of a co-operative scheme for regulation of the
national electricity market, to commence operation on the same
day as related amendments to be made to the National Electricity
(South Australia) Act 1996 (SA).
Clause 3 sets out definitions for the purposes of the Act.
Clause 4 provides that the Act, the National Electricity (Victoria) Law and
the National Electricity (Victoria) Regulations bind the Crown.
Clause 5 provides for the extra-territorial operation of the Act, the
National Electricity (Victoria) Law and the National Electricity
(Victoria) Regulations.
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PART 2--NATIONAL ELECTRICITY (VICTORIA) LAW AND
NATIONAL ELECTRICITY (VICTORIA) REGULATIONS
Clause 6 provides that the National Electricity Law set out in the Schedule
to the National Electricity (South Australia) Act 1996 (SA), as in
force for the time being, applies as a law of Victoria and may be
referred to as the National Electricity (Victoria) Law.
The National Electricity Law forms part of a co-operative scheme
for regulation of the national electricity market, which came into
operation in December 1998. The lead legislation is the National
Electricity (South Australia) Act 1996 (SA). The current
National Electricity Law is a Schedule to that Act, and that Law,
together with the Regulations made under the National Electricity
(South Australia) Act 1996, are applied by each of the national
electricity market jurisdictions, that is, Victoria, New South
Wales, Queensland and the Australian Capital Territory, by way
of Application Acts. The current National Electricity Law
provides for the making of the National Electricity Code, which
contains detailed rules for operation of the market and related
matters.
Pursuant to energy market reforms proposed by the Ministerial
Council on Energy, a new National Electricity Law, Regulations
and now, the National Electricity Rules (formerly the National
Electricity Code), will be applied in each of the national
electricity market jurisdictions. In addition, this new regulatory
scheme will now be applied as a law of the Commonwealth in the
offshore adjacent area of each State and Territory, similar to the
approach used for the gas pipelines access regime. Tasmania is
scheduled to join the national electricity market on 29 Mary
2005, and apply this new regulatory scheme.
Clause 7 provides that the National Electricity Regulations as in force for
the time being under the National Electricity (South Australia)
Act 1996 (SA), apply as Regulations in force for the purposes of
the National Electricity (Victoria) Law and may be referred to as
the National Electricity (Victoria) Regulations.
Clause 8 provides for the interpretation of some expressions in the
National Electricity (Victoria) Law and the National Electricity
(Victoria) Regulations.
Sub-section (2) provides that the Acts Interpretation Act 1915,
and other Acts of South Australia, do not apply to the National
Electricity (Victoria) Law or the National Electricity (Victoria)
Regulations.
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Clause 9 provides that except as provided by section 59(1) of the National
Electricity (Victoria) Law, proceedings may not be instituted in a
relevant court in respect of a breach of a provision of the
National Electricity (Victoria) Law, the National Electricity
(Victoria) Regulations or the National Electricity Rules by any
person other than the Australian Energy Regulator that is not an
offence provision.
This provision is required to ensure that there is only one body
responsible for enforcement of the National Electricity Law,
National Electricity Regulations and National Electricity Rules in
all participating jurisdictions, the Australian Energy Regulator.
This provision does not prevent a person aggrieved by a decision
or determination of the AEMC or NEMMCO bringing judicial
review proceedings in the Supreme Courts of the State and
Territories that are participating jurisdictions or a person bringing
review proceedings against the Australian Energy Regulator
under the Administrative Decisions (Judicial Review) Act 1977
(Cth). It also does not prevent proceedings in respect of offence
provisions specified in the National Electricity Law.
Clause 10 provides for the Governor in Council, to make an Order declaring
a provision of the National Electricity (Victoria) Law or the
National Electricity Rules to be relevant legislation for the
purposes of section 10 of the Essential Services Commission
Act 2001. The note to the clause states that the electricity
industry is a regulated industry for the purposes of that Act.
Section 10 of the Essential Services Commission Act 2001
provides that the Essential Services Commission may perform
such functions as are conferred by the relevant legislation under
which a regulated industry operates. The Essential Services
Commission will perform certain functions under the National
Electricity Rules.
Clause 11 provides that for the purposes of the National Electricity
(Victoria) Law, VENCorp is deemed to be a regulated
transmission system operator even when it does not own, control
or operate a transmission system.
Clause 12 provides that it is the intention of section 9 to alter or vary
section 85 of the Constitution Act 1975.
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PART 3--REPEALS AND AMENDMENTS OF OTHER ACTS
Clause 13 provides that the National Electricity (Victoria) Act 1997 is
repealed.
This Bill replaces the National Electricity (Victoria) Act 1997.
Clause 14 provides for the substitution of references to the "National
Electricity Code" in sections 3, 19(3), 31(7) and 79(2) of the
Electricity Industry Act 2000 with the "National Electricity
Rules" and the inclusion of a minor cross reference amendment
to 79(2) of the Electricity Industry Act 2000.
Clause 15 provides for the repeal of section 158BA(1A) of the Electricity
Industry (Residual Provisions) Act 1993, and the related
definition of the National Electricity Code in section 3(1) of that
Act.
Section 158BA(1A) of the Electricity Industry (Residual
Provisions) Act 1993 provides for the Minister administering
that Act to specify an amount for the purposes of clauses 3.3
and 4.3 of schedule 9A.2 of the National Electricity Code.
These clauses provide for the calculation and payment of a
smelter reduction levy, and will not be replicated in the new
National Electricity Rules. Accordingly, section 158BA(1A) is
no longer required.
Clause 16 provides for the substitution of references to the "National
Electricity (Victoria) Act 1997" in section 38AB of the
Interpretation of Legislation Act 1984, with references to the
"National Electricity (Victoria) Act 2005".
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