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These regulations may be cited as the Electricity Transmission Regulations 1996.
These regulations come into operation on 1 January 1997.
In these regulations, unless the contrary intention appears —
access agreement, in respect of a user —
means an agreement between a corporation and the user under which the corporation agrees to provide access services to the user; and
if the user is the Electricity Generation and Retail Corporation, includes an agreement between a corporation and the user for the provision of access services to the user that arises as a result of a transfer order under Part 9 Division 3 of the Electricity Corporations Act 2005;
access application means an access application made under regulation 8;
access information has the meaning given in regulation 14(1);
access offer means an offer made by a corporation to an applicant to provide the access services requested in an access application made by that applicant and, where the corporation makes an additional offer under regulation 11(4) in relation to the access application, includes that additional offer;
access services means —
use of system services;
common services;
connection services;
ancillary services;
affected obligation has the meaning given in regulation 35(2);
affected person has the meaning given in regulation 35(2);
alternative services has the meaning given in regulation 11(4);
ancillary services means the following services —
voltage control;
control system services;
spinning reserve; and
post‑trip management;
applicable laws means the Act, the Energy Operators (Powers) Act 1979, the Electricity Act 1945, the Energy Coordination Act 1994, the Electricity Industry Act 2004 and the Electricity Corporations Act 2005;
applicant, in respect of an access application, means the person who has made the access application or on whose behalf the access application has been made;
augment, in relation to the electricity transmission network, means to enhance or expand the electricity transmission network;
business day means any day other than a Saturday, Sunday and any day that is a public holiday or bank holiday in the Perth metropolitan area;
common services means a network service that ensures the integrity of the electricity transmission network and benefits all users and that cannot practically be allocated to users on a locational basis;
connection means the electrical equipment that allows the transfer of electricity between the electricity transmission network and an electrical system that is not part of that network and includes any transformers or switchgear at the point of interconnection (including those that operate at a nominal voltage of less than 66kV and a nominal frequency of 50Hz) that are necessary for that transfer but does not include the lines and switchgear at the connection that form part of the electricity transmission network;
connection agreement means an agreement between a corporation and one or more controllers in respect of a connection who are not users in respect of the connection under which the controller or controllers agree to comply with the Technical Code and any relevant parts of these regulations;
connection point means an entry point or an exit point;
connection services, in respect of a connection, means the establishment and maintenance of that connection;
contract maximum demand in respect of a connection means the contract maximum demand (expressed in kW) specified in the access agreement in respect of the connection (if any);
control system services means the 24‑hour control of the power system through monitoring, switching and dispatch which is provided through control centres and SCADA and communication equipment;
controllers in respect of a connection means all of those persons who engage in one or more of the activities of owning, controlling and operating the plant or equipment transferring electricity to or taking electricity from the electricity transmission network at that connection;
corporation has the meaning given to that term in section 2 of the Act;
declared sent‑out capacity in respect of a generating unit is determined in accordance with regulation 38;
disconnect, in respect of a connection, means to operate switching equipment so as to prevent the transfer of electricity through the connection;
Electricity Generation and Retail Corporation means the body established by the Electricity Corporations Act 2005 section 4(1)(a);
Electricity Networks Corporation means the body established by section 4(1)(b) of the Electricity Corporations Act 2005;
electricity transmission network, in respect of a corporation, means the parts of the corporation’s system prescribed in regulation 5(1);
embedded generating unit means a generating unit which supplies on‑site loads or loads at the same connection or which is connected to an electricity distribution network;
encumbrance includes a mortgage, pledge, lien, charge or other security interest;
entry point means a connection at which electricity is more likely to be transferred to the electricity transmission network than to be transferred from the electricity transmission network;
exempt connection means a connection which is not an existing connection;
existing connection means a connection which exists as at 1 January 1997;
exit point means a connection at which electricity is more likely to be transferred from the electricity transmission network than to be transferred to the electricity transmission network;
fee schedule, in respect of a financial year, means the fee schedule published in respect of that financial year by a corporation;
force majeure event has the meaning given in regulation 35(1);
generating unit means an electricity generator and related equipment essential to the electricity generator’s operation, which together function as a single entity;
good electricity industry practice has the meaning given in regulation 28(1);
network planning criteria means the criteria prepared by a corporation under regulation 27;
network services in respect of the electricity transmission network means the use of the electricity transmission network to transport electricity, including —
network transmission services, including —
the electricity transmission network’s ability to transfer electricity;
configuration switching capability at nodes;
network security and stabilisation capability services; and
voltage and reactive control capability at nodes;
network operation systems, including —
remote operation services;
voice and data communication services;
network performance monitoring services;
real time operational information and control capability;
operational information (including plant characteristics);
generation scheduling; and
maintenance services;
and
the maintenance of the security of the electricity transmission network, including frequency control;
outage means any planned or unplanned full or partial unavailability of plant or equipment;
post‑trip management means the maintenance of system security in the aftermath of trips;
preliminary assessment, in relation to an application, means a preliminary opinion of a corporation, provided for the general information of the applicant, as to the technical feasibility of the proposal in the application, the suitability of the location of the proposed connection, the likely availability of spare capacity at that proposed connection and likely extent of any augmentation;
Regional Power Corporation means the body established by section 4(1)(d) of the Electricity Corporations Act 2005;
related body corporate means —
in respect of a corporation, a subsidiary (as defined in section 3 of the Electricity Corporations Act 2005) of the corporation;
in respect of another body corporate, a body corporate that is related to the first‑mentioned body by virtue of section 50 of the Corporations Act 2001 of the Commonwealth;
renewable energy source means an energy source other than a fossil fuel or a man‑made nuclear fission process;
response in respect of an access application means the response given under regulation 8(5);
RTU means a Remote Terminal Unit installed within a substation to enable monitoring and control of a facility from a control centre;
SCADA means Supervisory Control and Data Acquisition;
sensitive information has the meaning given in regulation 14(2);
South West interconnected system has the meaning given to that term in section 3 of the Electricity Industry Act 2004;
spinning reserve means the ability to immediately and automatically increase generation or reduce demand in response to a fall in frequency;
supervising officers means —
the directors and the chief executive officer of a corporation; and
the senior managers of a corporation whose duties include providing accounting, financial, audit or legal services, (by whatever name known);
taxes means taxes, levies, imposts, deductions, charges, withholdings and duties imposed by any authority (including stamp and transaction duties), together with any related interest, penalties, fines and expenses in connection with them, except if imposed on the overall net income of a corporation;
Technical Code, in relation to a corporation, means the Technical Code prepared by the corporation under regulation 26;
transmission employee means an employee or officer of the Regional Power Corporation who is engaged wholly or partly in those parts of that corporation’s business involving the granting of access to electricity transmission capacity or the planning, operation, maintenance, development or augmentation of the electricity transmission network;
use of system services means a network service provided to a user for use of the electricity transmission network for the transportation of electricity that can be reasonably allocated to a user on a locational basis;
voltage control means keeping network voltages within operational limits in normal operation and in the aftermath of trips by automatic regulation of generation MVA output or by transmission voltage control equipment such as capacitor banks and automatic tap‑changers.
In these regulations, references to the electricity transmission network, or to the electricity transmission network of a corporation, are —
in relation to the Electricity Networks Corporation, references to the electricity transmission network operated by that corporation; and
in relation to the Regional Power Corporation, references to any electricity transmission network operated by that corporation.
[Regulation 3 amended: Gazette 28 Sep 2001 p. 5357; 28 Dec 2001 p. 6718; 22 Jun 2004 p. 2165‑6; 24 Jun 2005 p. 2752; 31 Mar 2006 p. 1326‑9 and 1338; 25 Aug 2006 p. 3497; 27 Dec 2013 p. 6476.]
Subject to the Interpretation Act 1984, these regulations must be interpreted in accordance with the following rules of interpretation, unless the contrary intention appears —
a reference in these regulations to a contract or another instrument includes a reference to any amendment, variation or replacement of it;
a reference to a person includes a reference to the person’s executors, administrators, successors, substitutes (including, without limitation, persons taking by novation) and assigns;
if an event must occur on a day which is not a business day then the event must occur on the next business day;
the symbol “Σ” requires a summation to be performed over the range of variables specified in respect of the algebraic terms specified;
all data which is to be utilised in calculations made under these regulations is to be utilised to the accuracy, in terms of a number of decimal places, to which it is given in these regulations;
all indices are to be calculated to 3 decimal places;
the calculation of a charge or fee is to be performed to the nearest cent;
any other calculation shall be performed to the accuracy, in terms of a number of decimal places, determined by a corporation in respect of all users;
if examples of a particular kind of conduct, thing or condition are introduced by the word including, then the examples are not to be taken as limiting the interpretation of that kind of conduct, thing or condition;
a connection is a user’s connection or a connection of a user if it is the subject of an access agreement between the user and a corporation; and
a reference to a half hour is a reference to a 30 minute period ending on the hour or on the half hour and, when identified by a time, means the 30 minute period ending at that time.
[Regulation 4 amended: Gazette 31 Mar 2006 p. 1338.]
For the purposes of the definition of electricity transmission system in section 89(1) of the Act, all parts of the system operated by a corporation for transportation of electricity at nominal voltages of 66kV or higher and a nominal frequency of 50Hz are prescribed other than —
any part of the system that forms part of an exempt connection; and
any part of the system that is not owned or leased by the corporation.
[(2) deleted]
[Regulation 5 amended: Gazette 31 Mar 2006 p. 1329‑30 and 1338; 26 Jun 2007 p. 3022.]
The application of these regulations is limited to —
access agreements in operation on 1 July 2007; and
the parties to those agreements; and
matters relating to the provision of access services under those agreements,
and references in these regulations to an access agreement, a corporation or a user are to be construed accordingly.
[Regulation 6 inserted: Gazette 26 Jun 2007 p. 3022-3.]
The procedure to be followed under this Part is illustrated by the flow chart in Schedule 1.
A person who is not an existing user and who wants a corporation to provide it with one or more access services must make an access application in accordance with this regulation.
A person who is an existing user and who wants a corporation to provide it with one or more access services (including additional capacity) in addition to those which the user has access already must make an access application in accordance with this regulation.
[(3) deleted]
An access application must contain the information listed in Part A of Schedule 2 and may specify that the applicant wishes the corporation to make a preliminary assessment of the access application.
The corporation must give the applicant a written response within 20 business days after receiving the access application.
A response in respect of an access application must include the following information —
the information listed in Part B of Schedule 2;
the period within which the corporation is able to make a preliminary assessment of the access application; and
whether the corporation is able to make an access offer to the applicant within 65 business days of receiving the access application, and, if not, an alternative period that is reasonable for making the access offer.
The information provided under subregulation (6)(a) is indicative and is not binding on the corporation.
[Regulation 8 amended: Gazette 31 Dec 2004 p. 7139; 31 Mar 2006 p. 1330 and 1338-9.]
A corporation may request further information from an applicant.
A request for further information under subregulation (1) must be in writing.
A corporation may only request further information under subregulation (1) if the information requested is reasonably necessary in order to —
process the access application;
prepare a response;
carry out a preliminary assessment; or
make an access offer to provide access services, as the case requires.
If —
a corporation makes a request under subregulation (1) in relation to an access application; and
the person to which the request has been made has not provided all the information requested within 15 business days of the corporation making the request or such longer time as the corporation and the person agree,
then the access application loses its priority for the purposes of regulation 13 and lapses.
If an access application loses its priority under subregulation (4) and the person to which the request has been made subsequently provides all the information requested, then the priority of the access application for the purposes of regulation 13 is to be determined as if the access application had been received on the date on which that information is received by the corporation.
An applicant, in making an access application and providing information under this Part must —
act in good faith; and
use reasonable endeavours to ensure that the access application and the information concerned are accurate and complete.
If an applicant becomes aware of any material alteration to any information contained in or relevant to the access application, then the applicant must promptly notify the corporation in writing of that alteration.
If a corporation receives a notice under subregulation (7) or otherwise becomes aware of any material alteration to any information contained in or relevant to an access application, then the corporation may, by written notice to the applicant —
extend the period within which the corporation must give the response under regulation 8(5) or carry out the preliminary assessment and give the report under regulation 10 or make the access offer under regulation 11(1) in respect of the access application (as the case requires), to such longer period as the corporation reasonably requires in order to do so; or
where the material alteration to information is such as to, in the reasonable opinion of the corporation, materially alter the access services requested by the access application, the corporation may reject the access application.
[Regulation 9 amended: Gazette 31 Mar 2006 p. 1338-9.]
If an access application specifies that the applicant wishes the corporation to make a preliminary assessment of the access application, then the corporation must make that preliminary assessment and give the applicant a report of that preliminary assessment within the period for making the preliminary assessment specified in the response in respect of the access application.
A report under subregulation (1) is indicative and is not binding on the corporation.
[Regulation 10 amended: Gazette 31 Mar 2006 p. 1339‑40.]
Subject to regulation 13, unless otherwise agreed by the applicant and the corporation, the corporation must make an access offer to provide to the applicant the access services requested in an access application —
within 65 business days of the corporation receiving the access application; or
if a longer period for making the access offer is specified in the corporation’s response to the applicant under regulation 8(5), then within that longer period.
If the corporation makes a request for information under regulation 9(1) to an applicant, then the period referred to in subregulation (1) ceases to run until the information requested by the corporation is received by the corporation.
An access offer must —
[(a) deleted]
subject to paragraphs (e) and (f), be for the access services requested in the access application in response to which it is made and be consistent with any technical parameters specified in that access application;
be in writing and contain the proposed terms and conditions on which the corporation will provide the access services, including terms and conditions of the kind set out in Schedule 3;
specify how the charges for the access services requested in the access application are to be calculated and how the fees used in calculating those charges are to be determined;
be consistent with the Act, these regulations and the Technical Code; and
to the extent that it contains terms and conditions, or sets fees and charges other than those in the fee schedule, be fair and reasonable and consistent with good electricity industry practice.
If the corporation believes that the requirements of the person making an access application would be met by the corporation providing one or more different access services (called the alternative services) to those requested in the access application, then the corporation may, in addition, make an offer in accordance with subregulation (3)(a), (c), (d), (e) and (f) in relation to those alternative services.
To avoid doubt —
subject to subregulation (3)(b), an access offer may contain terms and conditions which differ from those contained in the relevant access application;
an access agreement may contain terms and conditions which differ from those contained in the relevant access offer; and
subject to regulation 46, an access offer and an access agreement may contain terms and conditions (including terms and conditions related to fees and charges) which differ from those contained in another access offer or access agreement for any reason, including —
to reflect the provisions of these regulations;
the quantities in which the relevant access services are to be supplied or are supplied;
because of the different nature of the plant or equipment required to provide the relevant access services;
the geographical and electrical location of the relevant connections;
the periods for which the relevant access services are supplied;
the electricity transmission capacity required to provide the relevant access services;
the characteristics of the relevant load or generation; and
the performance characteristics at which the relevant access services are provided.
If —
a corporation makes an access offer to an applicant; and
the corporation and the applicant have not entered into an access agreement in relation to the access services which are the subject of the access offer within the relevant period determined in accordance with subregulation (7),
then the access offer expires and the access application loses its priority for the purposes of regulation 13 and lapses.
The relevant period for the purposes of subregulation (6) is a period of 20 business days (or such longer period as the corporation may agree with the applicant) following the day on which the access offer is made.
The provision of access services by a corporation under an access agreement is subject to the following conditions precedent —
the corporation or the user gaining environmental and planning approvals for any necessary augmentation to the electricity transmission network or the design, construction, installation and commissioning of any exempt connection contemplated by the access agreement;
the corporation gaining the approval of the Minister under section 68 of the Electricity Corporations Act 2005, if required; and
the entry into of a connection agreement with the corporation by such of the controllers as the corporation requires in relation to the connection (in form and substance satisfactory to the corporation, acting reasonably), if the person with which the corporation enters into the access agreement is not the controller or is not the only controller in respect of a connection which is the subject of the access agreement.
If —
a corporation makes an access offer; and
one or more of the connections to which the access offer relates is an exempt connection,
then the access offer must —
inform the applicant that the applicant may choose not to have the connection services at the exempt connection provided by the corporation; and
contain the proposed terms and conditions on which the corporation will —
if the applicant chooses not to have the corporation provide the connection services at the exempt connection, augment the electricity transmission network to the extent necessary to permit the transfer of electricity between the electricity transmission network and the exempt connection; or
if the applicant chooses to have the corporation provide the connection services at the exempt connection, augment the electricity transmission network and provide the connection services at the exempt connection,
including terms and conditions relating to the design, construction, installation, commissioning and testing of the augmentation or the exempt connection, as the case requires.
[Regulation 11 amended: Gazette 24 Jun 2005 p. 2753; 31 Mar 2006 p. 1331 and 1338-41.]
For the purposes of this regulation, an augmentation is commercially viable if —
in the case of the Electricity Networks Corporation, in the corporation’s reasonable opinion —
it will recover within a reasonable time the costs, the capital investment and a reasonable rate of return on the capital investment in respect of the augmentation as contemplated by clause 5 of Schedule 5 to the Act (as in force before the repeal of that Schedule by the Electricity Transmission and Distribution Systems (Repeal and Related Provisions) Regulations 2007), and not increase the charges payable by existing users; and
it has sufficient allocated capital funds to undertake the augmentation, having regard to sections 127 and 128 of the Electricity Corporations Act 2005;
and
in the case of the Regional Power Corporation, in the corporation’s reasonable opinion —
it will recover within a reasonable time the costs, the capital investment and a reasonable rate of return on the capital investment in respect of the augmentation as contemplated by clause 5 of Schedule 5 to the Act (as in force before the repeal of that Schedule by the Electricity Transmission and Distribution Systems (Repeal and Related Provisions) Regulations 2007), and not increase the charges payable by existing users; and
the division of the corporation responsible for operating its electricity transmission network has sufficient allocated capital funds to undertake the augmentation, having regard to sections 127 and 128 of the Electricity Corporations Act 2005.
The reasonable rate of return on the capital investment associated with a proposed augmentation contemplated by subregulation (4)(c) or subregulation (5)(b) is to be determined by a corporation taking into account —
the corporation’s cost of capital and its components;
the potential future use of the augmentation by existing and potential users;
the financial viability of the applicant and the applicant’s business;
the impact of the capital investment upon the performance targets and other measures of the corporation’s performance as set out in any applicable statement of corporate intent under the Act.
The reasonable time within which the costs, the capital investment and the reasonable rate of return in respect of a proposed augmentation contemplated by subregulation (4)(c) or subregulation (5)(b) must be recovered is to be determined by a corporation taking into account —
the anticipated commercial life of the augmentation; and
the purpose for which the applicant requires the electricity transmission capacity the subject of the relevant access offer,
but in any event cannot exceed 15 years.
If —
a corporation and a user enter into an access agreement;
the services to be provided under the access agreement include connection services using a connection that is not an exempt connection;
the corporation is not able to reliably provide those connection services without augmenting that connection; and
the augmentation concerned is not commercially viable without any capital contribution,
then the user must make a capital contribution towards the augmentation in accordance with this regulation.
If —
a corporation and a user enter into an access agreement;
the corporation is not able to reliably provide the access services which are the subject of the access agreement without augmenting the electricity transmission network to either transport electricity on the network or to link the network to an exempt connection; and
the augmentation concerned is not commercially viable without any capital contribution,
then the user must make a capital contribution towards the augmentation in accordance with this regulation.
If subregulation (4) or subregulation (5) requires a user to make a capital contribution, then —
the amount of the capital contribution is equal to the amount that would be required to make the augmentation commercially viable; and
the capital contribution must be paid to the corporation in the manner and at the time set out in the access agreement.
A proposed augmentation satisfies paragraph (a) of the commercial viability test set out in subregulation (1) if —
the discounted present value of the future cash flows anticipated in respect of the augmentation over the reasonable time in respect of the augmentation is determined in accordance with subregulation (3), using a real discount rate equal to the reasonable rate of return in respect of the augmentation determined in accordance with subregulation (2); and
that discounted present value is positive.
If —
a corporation and a user enter into an access agreement;
the services to be provided under the access agreement include access services in respect of a connection that is not an exempt connection; and
the corporation is obliged under an existing agreement to repay an amount of money to a person if it provides those services,
then the user must pay the corporation an amount equal to the amount referred to in paragraph (c).
If —
a corporation makes an access offer; and
the access offer contemplates the provision of connection services or ancillary services using an exempt connection,
then the corporation may include in the access offer a condition that the user makes a capital contribution in respect of the capital investment associated with designing, constructing, installing and commissioning the connection equipment or with providing those ancillary services (as the case requires) and a rate of return on that investment and, if so, the capital contribution must be taken into account in the determination of fees for providing the connection services or the ancillary services (as the case requires) set out in the access offer.
[Regulation 12 inserted: Gazette 1 Jul 1997 p. 3251‑2; amended: Gazette 28 Dec 2001 p. 6718; 31 Mar 2006 p. 1331‑2 and 1338-41; 26 Jun 2007 p. 3023.]