National Electricity (Victoria) Act 2005

The Governor in Council, by Order published in the Government Gazette, for the purpose of reducing the risk of fire starts and reducing the risk of loss or damage caused by fire starts, may confer functions and powers, or impose duties, on the AER to make—

a determination for the purpose of providing incentives for Distribution Network Service Providers to reduce the risk of fire starts and reduce the risk of loss or damage caused by fire starts;

a determination for each year of the first distribution determination period specifying an amount that is to be treated as a positive pass through amount or a negative pass through amount for the purposes of Chapter 6 of the National Electricity Rules.

Without limiting subsection (1), an Order under that subsection may—

specify how the AER is to make, publish, implement and administer an f‑factor scheme determination and an f‑factor amount determination;

specify the kinds of fire starts to be covered by an f‑factor scheme determination or require the AER to determine the kinds of fire starts to be covered by an f‑factor scheme determination;

require the AER, before making an f‑factor scheme determination, to consult with one or more of the following—

the Minister;

a Distribution Network Service Provider;

a relevant entity;

any other person whose interests are affected and who is specified as a person with whom the AER must consult;

require the AER, when consulting with persons referred to in paragraph (c), to comply with specified consultation procedures;

require the AER to include benchmarks or targets for Distribution Network Service Providers as part of an f‑factor scheme determination;

require the AER to assess the performance of Distribution Network Service Providers in relation to any benchmarks or targets included as part of an f‑factor scheme determination and for the purpose of making an f‑factor amount determination;

specify any benchmarks, targets, incentives, rewards or penalties for inclusion in an f‑factor scheme determination that will apply to Distribution Network Service Providers and for the purpose of making f‑factor amount determinations;

require the AER, in making an f‑factor scheme determination, to have regard to specified criteria, including—

the need to ensure that the benefits to consumers likely to result from the making of an f‑factor scheme determination are sufficient to warrant the determination's benchmarks, targets, incentives, rewards or penalties for Distribution Network Service Providers;

any regulatory obligation or requirement to which Distribution Network Service Providers are subject;

a distribution system's history of fire starts;

the willingness of end users to pay for enhanced fire safety;

criteria for determining benchmarks, targets, incentives, rewards or penalties that will apply to Distribution Network Service Providers and for the purpose of making an f‑factor amount determination;

any interaction between the Order and a service target performance incentive scheme;

any interaction between the Order and any other incentive scheme, including an incentive scheme in relation to services provided by means of a distribution system (other than a service target performance incentive scheme that applies to a Distribution Network Service Provider);

specify, for a Distribution Network Service Provider, the interaction between an f‑factor scheme determination and a service target performance incentive scheme that apply to that Distribution Network Service Provider.

An Order under subsection (1) may be made so as to apply, adopt or incorporate wholly or partially or as amended by the Order, the provisions of any document, standard, rule, specification or method formulated, issued, prescribed or published by any authority or body whether—

as formulated, issued, prescribed or published at the time the Order is made or at any time before the Order is made; or

as amended from time to time.

An Order under subsection (1) may—

leave any matter to be decided by the AER; and

without limiting paragraph (a), direct the AER to make amendments to any instrument made by the AER to give effect to any matter specified in an Order made under this section.

The provisions of an Order under subsection (1) may—

be of general or limited application;

differ according to differences in time, place and circumstances.

An Order under subsection (1) has effect as from the day specified in the Order and until the day specified in the Order.

An f-factor scheme determination or f-factor amount determination made under an Order under subsection (1) cannot come into effect before the Victorian distribution pricing determination end date.