Electricity Act 1994

This section applies if the regulator advises the Minister that the regulator is satisfied, on reasonable grounds, that—

an electricity entity (the defaulting entity)—

has contravened this Act; or

has contravened a condition of its authority; or

if the defaulting entity is a Registered participant—

has had its registration as a code participant cancelled or suspended; or

is the subject of a direction given by AEMO or an order made by the Australian Energy Regulator or a court; or

has had its authority cancelled, amended or suspended; or

is insolvent or is likely to become insolvent; or

is not, or is no longer, a suitable person to hold an authority of the type it holds; and

to ensure customers receive an adequate, reliable and secure supply of electricity, it is necessary for the regulator to take over the operation of the whole or part of the defaulting entity’s operating works and business (the relevant operations).

If this section applies, the Governor in Council may by gazette notice, authorise the regulator to take over the operation of the relevant operations for the time the regulator considers necessary to ensure customers receive an adequate, reliable and secure supply of electricity.

The authority may provide for any matter for which it is necessary or convenient to help the regulator take over the operation of the relevant operations.

The Governor in Council must notify the making of an authorisation under subsection (2) by gazette notice within 14 days.

Failure to notify under subsection (4) does not invalidate the authorisation.