Electricity Act 1994

The regulator may take the following disciplinary action against an electricity entity—

for a generation entity or transmission entity—cancel, suspend or amend its authority;

for a distribution entity—cancel, suspend or amend its authority for its distribution area or part of its distribution area.

The regulator may only take disciplinary action against an electricity entity for a material contravention of a distribution network code if the contravention has been referred to the regulator by QCA, whether or not a proceeding has been started in relation to the contravention.

If the ground for taking disciplinary action is that the electricity entity has contravened this Act, the Electrical Safety Act, the Energy and Water Ombudsman Act 2006, a distribution network code or a condition of its authority, the regulator may impose a civil penalty of not more than the amount of 1,333 penalty units for each contravention.

However, if the contravention is a contravention of a distribution network code, subsection (3) only applies if QCA has not applied for a civil penalty order under section 120X.

If the ground for taking disciplinary action is that the electricity entity has contravened a condition of its authority by holding a prohibited interest, in addition to the penalty under subsection (3), the regulator may decide that 1 or more of the interests that gave rise to the contravention must be disposed of.

The regulator may make a decision under subsection (5) based on the information that the regulator considers sufficient in the circumstances.

If the regulator makes a decision under subsection (5), the regulator must give written notice of the decision to—

the electricity entity that has contravened a condition of its authority by holding a prohibited interest (the offending electricity entity); or

if the offending electricity entity does not hold the prohibited interest—to the person who holds the interest the subject of the decision.

The notice must require the offending electricity entity or the other person to dispose of the interest the subject of the decision within a stated time of not less than 90 days.

For subsection (8), the interest must not be disposed of to a person, if the disposal would result in a contravention of a condition of the offending electricity entity’s authority.

A decision of the regulator under subsection (5) takes effect when written notice is given to the offending electricity entity or the other person.

If the offending electricity entity or person is given a notice requiring disposal of an interest and the person or entity does not comply with the notice within the time stated in the notice, the interest the subject of the decision is forfeited to the State, free from any mortgage, charge, lien, pledge, restriction or other encumbrance.

The regulator must sell any forfeited interest under subsection (11).

An amount from the sale of a forfeited interest, after deduction of reasonable costs of forfeiture and sale, must be paid to the person from whom the interest was forfeited.

The regulator may, by written notice to the offending electricity entity or other person, amend or cancel a decision made by the regulator under subsection (5) with effect from the day of the decision or some other day fixed by the regulator.

The regulator may take action under this section even though the regulator issued, contrary to this Act, an authority that gave rise to the contravention of a condition of the offending electricity entity’s authority by its holding a prohibited interest.

The regulator may take the action stated in subsection (17) if the regulator—

makes a decision under subsection (5) and the ground for making the decision is that a person (the offender) has a prohibited interest, because the person is in a position to exercise control over a person, entity or authority or thing; or

forms the opinion that the offender has a prohibited interest of the kind contemplated by schedule 2, section 3B(b)(iii).

For subsection (16), the regulator may, by written notice served on the offender, decide that the offender must do 1 or more of the following to the extent necessary to prevent there being a prohibited interest within a stated reasonable time of less than 90 days—

stop exercising control over the person, entity or authority;

end any relevant agreement, arrangement, understanding or undertaking;

take, or refrain from taking, any other action stated in the notice.

Subsections (6), (10), (14) and (15) apply to a decision made by the regulator under subsection (16).

If an electricity entity fails to pay a penalty under this section within the time allowed by the regulator, the regulator may take further action for the contravention for which the penalty was imposed.

A reference in this section to amending an authority includes a reference to amending its conditions.

In this section—authority (other than in subsections (1) and (20)) includes a special approval.electricity entity (other than in subsections (1) and (20)) includes a special approval holder.interest includes the following—

a legal or equitable interest in shares, stock, units or voting rights;

a legal or equitable right to acquire shares, stock, units or voting rights;

a right to decide the way in which a vote or other interest attaching to shares, stock, units or voting rights will be exercised;

a right under an agreement, an arrangement, a contract, a deed, an understanding or an undertaking;

other rights or interests capable of conveyance, transfer, sale, disposal or assignment;

another interest prescribed by regulation.

sell by wholesale, retail or auction; or

agree, attempt or offer to sell; or

possess, expose or advertise for sale; or

cause or permit to be sold.