Electricity Supply Industry Act 1995

Electricity Supply Industry Act 1995

This Act may be cited as the Electricity Supply Industry Act 1995.

The provisions of this Act commence on a day or days to be proclaimed.

In this Act, unless the contrary intention appears –

AEMO(Australian Energy Market Operator) has the same meaning as in the National Electricity Rules;

approved financial risk contract means a contract that – is an approved type of contract; and is in an approved standard form in relation to that type of contract; and contains prices calculated in accordance with the approved methodology in respect of contracts that are in that approved standard form;

approved methodology means a methodology approved under section 43G;

approved standard form means a standard form approved under section 43G;

approved type of contract means a type of contract approved under section 43G;

AER means the Australian Energy Regulator established by section 44AE of the Competition and Consumer Act 2010 of the Commonwealth;

Aurora Energy means Aurora Energy Pty Ltd (ABN 85 082 464 622);

Aurora Retail means Aurora Energy in its capacity as the holder of a retailer authorisation;

Australian Energy Market Agreement means the Australian Energy Market Agreement made between the Commonwealth, State and Territory Governments on 30 June 2004 and all amendments to that Agreement;

authorised officer means a person appointed under section 84 as an authorised officer;

authorised retailer means a person who is the holder of a retailer authorisation;

Basslink means the interconnection between the electricity grids of the States of Tasmania and Victoria by means of – a high voltage, direct current, submarine cable across Bass Strait; and converter stations in those States; and direct current connecting lines to those converter stations; and alternating current transmission connections to the transmission systems of those States; and related infrastructure;

Bass Strait Islands means those islands in the State of Tasmania known as King Island and Flinders Island;

Bass Strait Islands tariff retailer means – the holder of a licence issued under section 19A(2); and the holder of a licence issued in accordance with section 19A(6);

Code means the Tasmanian Electricity Code, as amended or substituted from time to time, issued under Division 9 of Part 3;

Competition Code has the same meaning as in the Competition Policy Reform (Tasmania) Act 1996;

connection means a physical link between a distribution system and a customer's premises to allow the flow of electricity;

contestable customer means a customer who is determined by or under the regulations to be a contestable customer;

customer means a person to whom electricity is sold for premises by a retailer or who proposes to purchase electricity for premises from a retailer;

customer retail services means the sale of electricity by a retailer to a customer at premises;

decision includes a direction or order;

disconnect electricity supply includes a procedure to interrupt or discontinue the electricity supply to the electrical installation, or premises, of a customer;

distribution of electricity means the carrying of electricity between different points using a distribution network;

distribution network has the meaning given by section 3A;

distributor, in relation to premises, means an electricity entity that holds a licence to distribute electricity by way of the distribution network by which electricity may be supplied to the premises;

electrical installation means a set of wires and associated fittings, equipment and accessories that forms part of a power system and includes a set of wires and associated fittings, equipment and accessories in premises to which a power system is connected;

electricity means electrical energy generated, transmitted or supplied in trade or commerce (including electricity generated by a person engaged in trade or commerce for the person's own commercial use);

electricity entity means a person licensed to carry on operations in the electricity supply industry under this Act and includes (where the context requires) a person who has been licensed to carry on operations in the electricity supply industry under this Act whose licence has been cancelled or has expired;

electricity generating plant has the meaning given by section 3A;

electricity infrastructure means anything used for, or in connection with, the generation, transmission or distribution of electricity including – electricity generating plant; and structures and equipment to hold water, or to direct, monitor or control the flow of water, for the purposes of hydro-electric generation; and powerlines; and substations for converting, transforming or controlling electricity; and equipment for metering, monitoring or controlling electricity;

electricity officer means a person appointed under this Act as an electricity officer;

electricity supply industry means the industry involved in the generation, transmission, distribution, supply and sale of electricity;

energy Minister means the Minister assigned the administration of Division 1 of Part 3;

extra high voltage means a nominal voltage of 88 kilovolts or above;

generation of electricity means the operation of any kind of electricity generating plant including, in the case of hydro-electric power generation, the accumulation and release of water for the purpose of driving the generating plant and all incidental and related operations;

high voltage means a nominal voltage of 1 kilovolt or above but less than 88 kilovolts;

Jurisdictional Regulator has the same meaning as in the National Electricity Rules;

land includes – an estate or interest in land (including an easement); or a right or power over or in respect of land;

licence means a licence issued under section 19 or 19A;

load following swap means a type of contract that allows a retailer to manage financial risks associated with the purchase of a specified quantity of electricity over the duration of the contract, where that quantity is allocated to trading intervals, within the meaning of the National Electricity Rules, in proportion to the Tasmanian net system load profile, within the meaning of the NEM Metrology Procedures made in accordance with the National Electricity Rules;

low voltage means a nominal voltage of less than 1 kilovolt;

mainland Tasmania means all parts of Tasmania other than any off-shore island of Tasmania (except for Bruny Island);

market retail contract has the meaning it has in the National Energy Retail Law (Tasmania);

National Electricity Law means 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;

National Electricity Market means the wholesale electricity market operated and administered by AEMO under the National Electricity Rules;

National Electricity Rules has the same meaning as in the National Electricity Law;

National Energy Retail Law (Tasmania)has the meaning it has in the National Energy Retail Law (Tasmania) Act 2012;

National Energy Retail Regulations (Tasmania)has the meaning it has in the National Energy Retail Law (Tasmania) Act 2012;

National Energy Retail Rules means the National Energy Retail Rules, within the meaning of the National Energy Retail Law (Tasmania), as modified in their application in this jurisdiction under the National Energy Retail Law (Tasmania) Act 2012;

NEM entry time means the time at which section 6 of the Electricity - National Scheme (Tasmania) Act 1999 commences;

network services means – the transmission and distribution of electricity between electricity entities and from electricity entities to customers; and controlling and regulating the quality of electricity;

non-contestable customer means a small customer who is not a contestable customer;

officer means – in relation to a body corporate, an officer within the meaning of the Corporations Act; in relation to an organisation that is not incorporated, a person with executive or administrative authority in the organisation;

operations includes activities;

power system means a system for the generation, transmission or distribution of electricity;

powerline means – a set of cables for the transmission or distribution of electricity and their supporting or protective structures; and associated equipment for the transmission or distribution of electricity;

prepayment meter system has the same meaning as in the National Energy Retail Law (Tasmania);

price includes a tariff and a charge;

public land means land – belonging to the Crown, an Agency, within the meaning of the State Service Act 2000 or an instrumentality of the Crown; or belonging to a local authority;

regulated offer retailer means an authorised retailer who is declared to be a regulated offer retailer in an order made under section 38B(1);

regulations means regulations made and in force under this Act;

Regulator means the person appointed as the Regulator under section 5;

retailer means a person who sells, or proposes to sell, for premises, electricity to a customer;

retailer authorisation has the meaning it has in the National Energy Retail Law (Tasmania);

reviewable decision means any direction, decision or determination under this Act, the regulations or the Code, other than – a decision of the Regulator or the Minister to make an order, approval or determination under Division 4, 4A or 5A of Part 3; or a direction, decision or determination declared by this Act, the regulations or the Code not to be reviewable;

small customer means a customer who is a small customer under the National Energy Retail Law (Tasmania);

standard retail contract has the meaning it has in the National Energy Retail Law (Tasmania);

standing offer prices has the meaning it has in the National Energy Retail Law (Tasmania);

subsidiary has the same meaning as in the Corporations Act;

supply of electricity means the delivery of electricity to the electrical installation of a customer;

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;

workplace health and safety Secretary means the Secretary of the department responsible for the administration of the Work Health and Safety Act 2012.

In this Act, a reference to distribution network is a reference to the apparatus, electric lines, equipment, plant, and buildings, used to convey or control the conveyance of electricity, that the National Electricity Rules specify as, or as forming part of, a distribution system.

An electricity generating plant is a facility or plant that is or could be used to generate electricity, and includes all equipment at that facility or plant.

The Regulator may declare that any equipment, or any equipment of a specified class, is to be treated as part of a specified distribution network, transmission system or electricity generating plant for the purposes of the Act, the regulations and the Code generally or for the purposes of a specified provision of the Act, the regulations or the Code.

While a declaration under subsection (4) has effect, any equipment to which the declaration applies – forms part of the specified distribution network, transmission system or electricity generating plant for the specified purpose; and does not form part of any other distribution network, transmission system or electricity generating plant for the specified purpose.

In subsections (3), (4) and (5) – equipment means powerlines, substations, plant, structures or other equipment; specified means specified in the relevant declaration made under subsection (4).

The Regulator may amend or revoke a declaration under subsection (4).

A declaration under subsection (4) or an amendment or revocation of such a declaration – is to be made by notice published in the Gazette; and is not a statutory rule for the purposes of the Rules Publication Act 1953.

This Act binds the Crown in right of Tasmania and, so far as the legislative power of Parliament permits, in all its other capacities.

The office of the Regulator is established.

The Regulator, within the meaning of the Economic Regulator Act 2009, is appointed as the Regulator.

The Regulator's functions are – to administer the licensing system for electricity entities established by this Act; and to monitor and provide reports in relation to the development of competition in respect of the electricity supply industry; and to monitor and regulate technical standards in the electricity supply industry; and to monitor and enforce the compliance of electricity entities with their licence conditions; and to perform and exercise the functions and powers of Jurisdictional Regulator in respect of Tasmania under the National Electricity Rules; and to issue, maintain, administer and enforce the Code; and to carry out the other functions assigned to the Regulator under this Act, the regulations and the Code.

In exercising powers and functions under this Act, other than the powers and functions referred to in subsection (1)(c), the Regulator's objectives are– to promote efficiency and competition in the electricity supply industry; and to establish and maintain a safe and efficient system of electricity generation, transmission, distribution and supply; and to establish and enforce proper standards of safety, security, reliability and quality in the electricity supply industry; and to protect the interests of consumers of electricity.

The Regulator has power to do all things necessary or convenient to be done in connection with, incidental to or related to the performance and exercise of the Regulator's functions and powers.

In performing and exercising his or her functions and powers, the Regulator is to take into account the provisions of the National Electricity Rules and the desirability of avoiding duplication of, or inconsistency with, regulatory arrangements under the National Electricity Rules.

In performing and exercising his or her functions and powers, other than the functions and powers referred to in subsection (1)(c), the Regulator is to take into account the policy that it is desirable for the businesses of electricity entities and authorised retailers to be financially sustainable.

If the Regulator is satisfied that an electricity entity has contravened this Act or the conditions of the licence held by the electricity entity, the Regulator may impose on the electricity entity a monetary penalty not exceeding – 5 000 penalty units for the first day on which the contravention occurs; and a further fine not exceeding 200 penalty units for each subsequent day on which the contravention continues.

If there is more than one electricity entity that may be taken to have contravened this Act in respect of a single event, the Regulator may take any action under this section in respect of one or more such electricity entities as the Regulator thinks fit.

A decision of the Regulator under this section may be subject to administrative review under Part 9.

In exercising powers and functions under this Act, the Regulator must not unfairly discriminate between electricity entities that are authorised to provide similar services, between authorised retailers, between customers for electricity or between other persons.

In exercising powers and functions under this Act, the Regulator is not subject to the direction of the Minister or any other person.

Subsection (2) does not apply in respect of the directions of the Minister properly contained in a notice under section 9, section 36 or the directions given in accordance with regulations for the purposes of Division 4 or 4A of Part 3.

The Regulator must report to the Minister on subjects on which the Minister requires a report as and when required by the Minister.

The annual report made by the Regulator, within the meaning of the Economic Regulator Act 2009, under that Act is to include a report on the performance and exercise of the Regulator's functions and powers under this Act.