Electricity Reform Act 2012

Electricity Reform Act 2012

This Act may be cited as the Electricity Reform Act 2012.

This Act commences on the day on which this Act receives the Royal Assent.

If a provision of this Act is inconsistent with a provision of the Electricity Companies Act 1997, the Hydro-Electric Corporation Act 1995, the Government Business Enterprises Act 1995, the Electricity Supply Industry Act 1995, the Electricity Supply Industry Expert Panel Act 2010 or the Tamar Valley Power Station Act 2008, the provision of this Act prevails to the extent of the inconsistency.

In this Act, unless the contrary intention appears – asset includes any, and any part of any, property, business or operation;Aurora Energy means Aurora Energy Pty Ltd (ABN 85 082 464 622);Aurora Energy (Tamar Valley)means Aurora Energy (Tamar Valley) Pty Ltd (ACN 123 391 613); business, in relation to a State-owned electricity entity, means – the business conducted by the entity; and the goodwill of that business; and any asset of the entity; and the rights, liabilities, duties and obligations of the entity, whether those rights, liabilities, duties or obligations are present or future and whether vested or contingent – and includes a part of the business of the entity; customer means a person to whom electricity is sold for premises by an electricity retailer; distribution of electricity means the carrying of electricity between different points using a distribution network; distribution network means the apparatus, electric line, equipment, plant, and buildings, that are – used to convey, or control the conveyance of, electricity; and specified by the National Electricity Rules as, or as forming part of, a distribution system;Electricity Reform Co-ordinator means the office of Electricity Reform Co-ordinator existing under section 12; electricity reform measures means the measures referred to in section 6(1); electricity reform objectives means the objectives of electricity reform referred to in section 5; electricity retailer means the holder of a retailer authorisation within the meaning of the National Energy Retail Law (Tasmania); gas contract means a contract for the sale of gas;Hydro-Electric Corporation has the same meaning as in the Hydro-Electric Corporation Act 1995; liability means any liability, duty or obligation, whether actual, contingent or prospective, liquidated or unliquidated;National Electricity Rules has the same meaning as in the National Electricity Law contained in the Schedule (as amended from time to time) to the National Electricity (South Australia) Act 1996 of South Australia; property means – any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property; and money, documents and securities; and shares in a subsidiary; and any other rights; retail business, in relation to a State-owned electricity entity – means any business of the entity that relates to the retailing of electricity; and includes any retail electricity contracts and any gas contracts; retail electricity contract means a contract between an electricity retailer and a customer for the sale to the customer of electricity for premises; retailing of electricity means selling to a customer electricity for premises; right means any right, power, privilege, or immunity, whether actual, contingent or prospective; shareholding Ministers means the Treasurer and the Minister; small customer has the same meaning as in the National Energy Retail Law (Tasmania);State-owned electricity entity means – Aurora Energy; and Transend; and any company established under the Electricity Companies Act 1997; and the Hydro-Electric Corporation; and a subsidiary of any State-owned electricity entity referred to in paragraph (a), (b), (c) or (d);State tax means – any tax, duty or charge; and any application fee, registration fee or other fee – imposed by an Act or other law of Tasmania; subsidiary of a State-owned electricity entity – see subsection (2);Transend means Transend Networks Pty Ltd (ABN 57 082 586 892); transmission of electricity means the carrying of electricity between different points using a transmission system; transmission system has the same meaning as in the National Electricity Rules.

For the purposes of this Act, a body corporate is a subsidiary of a State-owned electricity entity if – the body is a subsidiary of the State-owned electricity entity under the Corporations Law; or were the State-owned electricity entity, and the body corporate, corporations under the Corporations Law, the body corporate would be a subsidiary of the State-owned electricity entity under the Corporations Law.

For the purposes of this Act, the objectives of electricity reform are –

to assist in ensuring that the prices that customers are charged for electricity are as low as is consistent with ensuring the financial viability of the electricity supply industry; and to ensure that the supply of electricity in Tasmania is safe, secure and reliable; and to ensure that the advantage to Tasmania of generating electricity by means of renewable energy sources is maximised; and to ensure that State-owned electricity entities are financially viable and operated efficiently and effectively and that their overall economic benefit to Tasmania is maximised.

The measures that may be taken to achieve the electricity reform objectives include the following:the introduction of full retail competition into the electricity supply industry so that customers, including small customers, have a choice of electricity retailers from which electricity may be purchased; the restructuring of State-owned electricity entities; the integration of Aurora Energy's distribution network with Transend's transmission system to form a single combined network business; the transfer to the Hydro-Electric Corporation, or the sale to the private sector, of Aurora Energy (Tamar Valley) and any business of Aurora Energy (Tamar Valley); the establishment of independent regulation of the Hydro-Electric Corporation's wholesale market contracts; the sale to the private sector of the retail business of Aurora Energy or a subsidiary of Aurora Energy.

Subsection (1) does not limit the measures that may be taken to achieve the electricity reform objectives.

The shareholding Ministers are to take the actions they think necessary or desirable – to achieve the electricity reform objectives; and to implement the electricity reform measures.

The actions that may be taken to implement the electricity reform measures include, but are not limited to including, the following:the formation of companies under the Electricity Companies Act 1997; the sale and transfer, under this Act, of any retail business held by Aurora Energy or a subsidiary of Aurora Energy; the transfer, under this Act, between State-owned electricity entities, of certain assets, rights, liabilities and employees; the transfer, under this Act, to the Crown of all or part of the business of Aurora Energy, Transend or subsidiaries of Aurora Energy or Transend.

The shareholding Ministers, by notice in writing to a State-owned electricity entity, may jointly issue a direction to the entity to ensure that – the electricity reform objectives are achieved; or the electricity reform measures are implemented.

Without limiting the generality of subsection (1), a direction issued under that subsection to a State-owned electricity entity may require the entity to – take the action specified in the direction; or take all reasonable steps to comply with the direction.

Without limiting the generality of subsection (1), a direction issued under that subsection to a State-owned electricity entity may require the entity to direct a subsidiary of the entity to take an action, or cease to take an action, that – is specified in the direction issued under subsection (1); or the entity, or the board of directors of the entity, thinks is necessary or convenient to assist in the carrying out of the direction issued under subsection (1).

If a direction is issued to a State-owned electricity entity under subsection (1) – the State-owned electricity entity; and the board of directors and the chief executive officer of the State-owned electricity entity; and all officers of the State-owned electricity entity – must comply with the direction and may do all things necessary or convenient to ensure the direction is complied with.

Without limiting the generality of subsection (4), a State-owned electricity entity to which a direction is issued under subsection (1), and the board of directors of the State-owned electricity entity, may direct a subsidiary of the entity to take an action, or to cease to take an action, specified in the direction to the subsidiary, that – is specified, in the direction issued under subsection (1), as a direction that the entity is to issue to the subsidiary; or the entity or the board of directors thinks is necessary or convenient to assist in the carrying out of the direction issued under subsection (1).

If a direction is issued to a subsidiary of a State-owned electricity entity under subsection (5) by a State-owned electricity entity or the board of directors of a State-owned electricity entity – the subsidiary; and the board of directors and the chief executive officer of the subsidiary; and all officers of the subsidiary – must comply with the direction and may do all things necessary or convenient to ensure the direction is complied with.

If a direction is issued under subsection (1) to a State-owned electricity entity, details of the direction are to be published in the annual report of the entity.

If a direction is issued to a subsidiary of a State-owned electricity entity under subsection (5), details of the direction are to be published in the annual report of the subsidiary, or, if there is no such annual report, the annual report of the State-owned electricity entity.

In this section – authorised person means a person, or a person who is a member of a class of persons, authorised in writing by the Treasurer to receive information provided to the person under this section.

The Treasurer may issue to a person a direction that the person is to provide to the Electricity Reform Co-ordinator information, in the person's possession, that was produced by, or was in the possession of, the Electricity Supply Industry Expert Panel established under the Electricity Supply Industry Expert Panel Act 2010.

A person to whom a direction is issued under subsection (2) must comply with the direction and may do all things necessary or convenient to ensure the direction is complied with.

The Electricity Reform Co-ordinator, for the purposes of assisting in the performance of the functions of the Electricity Reform Co-ordinator, may provide to an authorised person information provided to the Electricity Reform Co-ordinator under this section.

The Electricity Reform Co-ordinator – may only use information provided to him or her under this section, or provide such information to an authorised person, for the purposes of assisting in the performance of the functions, or the exercise of the powers, of the Electricity Reform Co-ordinator; and must not provide the information to a person other than an authorised person.

An authorised person to whom information is provided under subsection (4) may provide that information to another authorised person.

An authorised person to whom information is provided under this section – may only use the information, or provide the information to another authorised person, for the purposes of assisting in the performance of the functions, or the exercise of the powers, of the Electricity Reform Co-ordinator; and must not provide the information to a person other than an authorised person.

In this section – relevant person, in relation to a State-owned electricity entity, means – a member of the board of directors of the State-owned electricity entity; and the chief executive officer of the State-owned electricity entity; and any officer, employee, or agent, of the State-owned electricity entity.

A relevant person in relation to a State-owned electricity entity to which a direction is issued under section 8 is indemnified by the Crown against any liability incurred by the person in relation to – an action taken by the person in relation to the direction; or a failure by the person to take an action in relation to the direction – if the person took the action in good faith, or failed in good faith to take the action, in the belief that taking the action, or failing to take the action, was necessary or convenient to implement the direction.

A person to whom a direction is issued under section 9(2) is indemnified by the Crown against any liability incurred by the person in relation to an action taken by the person if the person took the action in good faith in the belief that taking the action was necessary or convenient to implement the direction.

A person to whom information to which section 9 relates is provided is indemnified by the Crown against any liability incurred by the person in relation to – an action taken by the person in relation to the information; or a failure by the person to take an action in relation to the information – if the person took the action in good faith, or failed in good faith to take the action, in the belief that taking the action, or failing to take the action, was necessary or convenient for the purposes of assisting in the performance of the functions, or the exercise of the powers, of the Electricity Reform Co-ordinator and was not prohibited under section 9(5) or (7).

A shareholding Minister may not, after 30 June 2015, perform a function, or exercise a power, under this Division except if, in the opinion of the shareholding Minister, it is necessary, or convenient, to do so for the purposes of winding up a State-owned electricity entity.