National Electricity (Victoria) Further Amendment Act 2016

Authorised by the Chief Parliamentary Counsel Authorised Version i National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 TABLE OF PROVISIONS Section Page Part 1—Preliminary 1 1 Purpose 1 2 Commencement 2 Part 2—Amendments to the National Electricity (Victoria) Act 2005 3 3 New section 11A and 11B inserted 3 4 New section 12A inserted 4 5 New Division 5 inserted in Part 3 7 6 New Schedules 2 and 3 inserted 10 Part 3—Repeal of amending Act 85 7 Repeal of amending Act 85 ═══════════════ Endnotes 86 1 General information 86 -- 1 of 87 -- Authorised by the Chief Parliamentary Counsel Authorised Version 1 National Electricity (Victoria) Further Amendment Act 2016† No. 24 of 2016 [Assented to 10 May 2016] The Parliament of Victoria enacts: Part 1—Preliminary 1 Purpose The main purpose of this Act is to amend the National Electricity (Victoria) Act 2005 to apply in Victoria certain provisions of the National Electricity Law and to amend the National Electricity Rules as in force in Victoria to implement certain retail customer connection arrangements. Victoria -- 2 of 87 -- Part 1—Preliminary National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 2 Authorised by the Chief Parliamentary Counsel 2 Commencement (1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed. (2) If a provision of this Act does not come into operation before 1 January 2017, it comes into operation on that day. -- 3 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 3 Authorised by the Chief Parliamentary Counsel Part 2—Amendments to the National Electricity (Victoria) Act 2005 3 New section 11A and 11B inserted After section 11 of the National Electricity (Victoria) Act 2005 insert— "11A Extension of AER functions and powers Without limiting section 6, the following provisions of the National Electricity (Victoria) Law apply as laws of Victoria as if a reference in any such provision to the Law included a reference to regulations made under this Act— (a) Parts 3 and 6 and Schedule 2; (b) any other provision of the National Electricity (Victoria) Law, the National Electricity (Victoria) Regulations or the National Electricity Rules prescribed by the regulations for the purposes of this section. 11B Prescription of provisions of the regulations as civil penalty provisions (1) The regulations may prescribe a provision of the regulations as a civil penalty provision. (2) A reference in the National Electricity (Victoria) Law or the National Electricity (Victoria) Regulations to a civil penalty provision is taken to include a reference to a provision prescribed under subsection (1). (3) Subsection (2) applies despite anything to the contrary in the National Electricity (Victoria) Law.". -- 4 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 4 Authorised by the Chief Parliamentary Counsel 4 New section 12A inserted After section 12 of the National Electricity (Victoria) Act 2005 insert— "12A Regulations (1) The Governor in Council may make regulations for or with respect to any matter required or permitted by this Act to be prescribed or necessary or convenient to be prescribed to give effect to this Act. (2) Without limiting subsection (1), regulations may be made under that subsection for or with respect to— (a) the undergrounding, relocation, modification, replacement or removal of distribution systems, including— (i) proposals for the undergrounding, relocation, modification, replacement or removal of distribution systems; and (ii) requiring a distribution company which receives a proposal for the undergrounding, relocation, modification, replacement or removal of a distribution system to make an offer to underground, relocate, modify, replace or remove a distribution system; (b) the content of proposals referred to in paragraph (a)(i) or offers referred to in paragraph (a)(ii), including the price of, or an estimate of costs to be incurred for, the undergrounding, relocation, modification, replacement or removal of a distribution system; -- 5 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 5 Authorised by the Chief Parliamentary Counsel (c) the determination, calculation, allocation or breakdown of a price or costs referred to in paragraph (b) or allocation or apportionment of costs referred to in that paragraph; (d) requiring a distribution company to call for tenders for the performance of— (i) works to augment or extend a distribution system for the purpose of connecting generating units or customer premises to the system and associated works; (ii) works arising out of an offer to underground, relocate, modify, replace or remove a distribution system and associated works; (e) the development or adoption of tender policies, or compliance with tender policies, by a distribution company, for the performance of works referred to in paragraph (d); (f) the content of tender policies referred to in paragraph (e) including— (i) the price, or the estimated costs, of the works; and (ii) procedures for dealing with and resolving disputes that may arise in relation to the performance of the works; (g) the public availability of tender policies referred to in paragraph (e). -- 6 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 6 Authorised by the Chief Parliamentary Counsel (3) Regulations made under this section may— (a) be of general or limited application; (b) differ according to differences in time, place or circumstance; (c) apply, adopt or incorporate any matter contained in any document, code, standard, rule, specification, or method, formulated, issued, prescribed or published by any person or body whether— (i) wholly or partially or as amended by the regulations; or (ii) as formulated, issued, prescribed or published at the time the regulations are made or at any time before then; or (iii) as formulated, issued, prescribed or published or amended from time to time; (d) confer a function, power or discretionary authority or impose a duty on the Minister or the AER; (e) leave any matter or thing to be from time to time determined, applied, dispensed with or regulated by the Minister or the AER; (f) provide in a specified case or class of cases for the exemption of persons or things or a class of persons or things from any of the provisions of the regulations— (i) whether unconditionally or on specified conditions; or -- 7 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 7 Authorised by the Chief Parliamentary Counsel (ii) either wholly or to such an extent as is specified. (4) Regulations made for or in relation to the content of proposals for the undergrounding, relocation, modification, replacement or removal of distribution systems, or the content of tenders for the performance of works referred to in subsection (2)(d), have effect according to their tenor despite anything to the contrary in any agreement or contract. (5) In this section— costs includes avoided costs; distribution company has the same meaning as in the Electricity Industry Act 2000.". 5 New Division 5 inserted in Part 3 After Division 4 of Part 3 of the National Electricity (Victoria) Act 2005 insert— 'Division 5—Distribution network connections and retail customer connection arrangements 16Q Application of certain provisions of the National Electricity (South Australia) Act 1996 Despite section 6— (a) section 34(1)(a)(iv) and (aa) and (3)(fa) of the NEL applies as a law of Victoria as if it were included in the National Electricity (Victoria) Law; and (b) section 34(3)(h)(i) of the National Electricity (Victoria) Law applies as if for "or (f)" there were substituted ", (f) or (fa)"; and -- 8 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 8 Authorised by the Chief Parliamentary Counsel (c) Schedule 1 to the National Electricity (Victoria) Law applies as if after item 26K there were inserted— "Sale and supply of electricity to retail customers 26M Charges for the provision of connection services.". Note Until the commencement of this section, amendments made to the NEL by the Statutes Amendment (National Energy Retail Law) Act 2011 of South Australia did not apply as laws of Victoria: see clause 24 of Schedule 3 to the NEL. The effect of this section is to apply some of those amendments as laws of Victoria. 16R Amendment of the National Electricity Rules (1) The National Electricity Rules as in force as a law of Victoria are amended as set out in Schedule 2. (2) To avoid doubt, the amendments made by Schedule 2 (other than punctuation included in those amendments) form part of the National Electricity Rules and may be amended in accordance with the National Electricity (Victoria) Law. Note The National Electricity Rules have the force of law in this jurisdiction: see section 9 of the National Electricity (Victoria) Law. Until the commencement of this section, amendments made to the National Electricity Rules by the National Electricity (National Energy Retail Law) Amendment Rule 2012 did not apply as laws of Victoria: see clause 24 of Schedule 3 to the NEL. The effect of this section and Schedule 2 is that some of those amendments have the force of law in Victoria. -- 9 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 9 Authorised by the Chief Parliamentary Counsel 16S Further modification of the amended National Electricity Rules Despite section 6, the National Electricity Rules have the force of law in Victoria as if— (a) in clause 5A.A.1 the definition of customer connection contract were revoked; and (b) clause 5A.C.1(c) and (d) were revoked; and (c) the note to clause 5A.E.4(c) were revoked; and (d) clause 5A.F.5(b)(2) were revoked; and (e) for the definition of energy laws in Chapter 10 there were substituted— "energy laws Includes: (a) legislation of Victoria that regulates electricity in Victoria, or any instrument made or issued under or for the purposes of that legislation; (b) national electricity legislation within the meaning of the National Electricity (Victoria) Law; (c) the Rules; (d) any instrument made or issued under or for the purposes of the Rules."; and -- 10 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 10 Authorised by the Chief Parliamentary Counsel (f) for the definition of energy ombudsman in Chapter 10 there were substituted— "energy ombudsman Is a person administering a customer dispute resolution scheme approved by the Essential Services Commission that is referred to in section 28 of the Electricity Industry Act 2000 (VIC).". 16T Transitional provisions for retail customer connection arrangements Schedule 3 has effect.'. 6 New Schedules 2 and 3 inserted After Schedule 1 to the National Electricity (Victoria) Act 2005 insert— 'Schedule 2—Amendment of National Electricity Rules Section 16R 1 Clause 5.1.3—Principles 1.1 In clause 5.1.3(d)(2) of the National Electricity Rules, after "Network Users;" insert "and". 1.2 For clause 5.1.3(e) and (f) of the National Electricity Rules substitute— "(e) the operation of the Rules should result in the achievement of: (1) long term benefits to Registered Participants in terms of cost and reliability of the national grid; and -- 11 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 11 Authorised by the Chief Parliamentary Counsel (2) open communication and information flows relating to connections between Registered Participants themselves, and between Registered Participants and AEMO, while ensuring the security of confidential information belonging to competitors in the market.". 2 Clause 5.3.1—Process and procedures 2.1 For clause 5.3.1 of the National Electricity Rules substitute— "5.3.1 Process and procedures (a) For the purposes of this rule 5.3: establish a connection includes modify an existing connection or alter plant but does not include alterations to generating plant in the circumstances set out in clause 5.3.9. (b) A Registered Participant or person intending to become a Registered Participant who wishes to establish a connection to a network must follow the procedures in this rule 5.3. (c) A Generator wishing to alter connected generating plant must comply with clause 5.3.9. (d) AEMO must comply with clause 5.3.11 in relation to requests to change normal voltage.". 3 Clause 5.3.2—Connection enquiry 3.1 In clause 5.3.2(a) of the National Electricity Rules omit "or (c)". -- 12 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 12 Authorised by the Chief Parliamentary Counsel 4 Insertion of new Chapter 5A 4.1 After Chapter 5 of the National Electricity Rules insert— "Chapter 5A—Electricity connection for retail customers Part A—Preliminary 5A.A.1 Definitions In this Chapter: basic connection service means a connection service related to a connection (or a proposed connection) between a distribution system and a retail customer's premises (excluding a non-registered embedded generator's premises) in the following circumstances: (a) either: (1) the retail customer is typical of a significant class of retail customers who have sought, or are likely to seek, the service; or (2) the retail customer is, or proposes to become, a micro- embedded generator; and (b) the provision of the service involves minimal or no augmentation of the distribution network; and -- 13 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 13 Authorised by the Chief Parliamentary Counsel (c) a model standing offer has been approved by the AER for providing that service as a basic connection service. basic micro EG connection service means a basic connection service for a retail customer who is a micro embedded generator. confidential information means, in relation to a Registered Participant, AEMO or a connection applicant, information which is or has been provided to that Registered Participant, AEMO or connection applicant under or in connection with the Rules and which is stated under the Rules, or by AEMO, the AER or the AEMC, to be confidential information or is otherwise confidential or commercially sensitive. It also includes any information which is derived from such information. connection means a physical link between a distribution system and a retail customer's premises to allow the flow of electricity. connection alteration means an alteration to an existing connection including an addition, upgrade, extension, expansion, augmentation or any other kind of alteration. -- 14 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 14 Authorised by the Chief Parliamentary Counsel connection applicant means an applicant for a connection service of 1 of the following categories: (a) retail customer; (b) retailer or other person acting on behalf of a retail customer; (c) real estate developer. connection application means an application under clause 5A.D.3. connection charge means a charge imposed by a Distribution Network Service Provider for a connection service. connection charge guidelines – see clause 5A.E.3. connection charge principles – see clause 5A.E.1. connection contract means a contract formed by the making and acceptance of a connection offer. connection offer means an offer by a Distribution Network Service Provider to enter into a connection contract with: (a) a retail customer; or (b) a real estate developer. -- 15 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 15 Authorised by the Chief Parliamentary Counsel connection policy means a document, approved as a connection policy by the AER under Chapter 6, Part E, setting out the circumstances in which connection charges are payable and the basis for determining the amount of such charges. connection service means either or both of the following: (a) a service relating to a new connection for premises; (b) a service relating to a connection alteration for premises. contestable – a service is contestable if the laws of the participating jurisdiction in which the service is to be provided permit the service to be provided by more than one supplier as a contestable service or on a competitive basis. customer connection contract – see section 67 of the NERL. embedded generator means a person that owns, controls or operates an embedded generating unit. enquiry means a preliminary enquiry under clause 5A.D.2. -- 16 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 16 Authorised by the Chief Parliamentary Counsel micro EG connection means a connection between an embedded generating unit and a distribution network of the kind contemplated by Australian Standard AS 4777 (Grid connection of energy systems via inverters). micro embedded generator means a retail customer who operates, or proposes to operate, an embedded generating unit for which a micro EG connection is appropriate. model standing offer means a document approved by the AER as a model standing offer to provide basic connection services (see clause 5A.B.3) or as a model standing offer to provide standard connection services (see clause 5A.B.5). negotiated connection contract – see clause 5A.C.1. new connection means a connection established or to be established, in accordance with this Chapter and applicable energy laws, where there is no existing connection. non-registered embedded generator means an embedded generator that is neither a micro embedded generator nor a Registered Participant. -- 17 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 17 Authorised by the Chief Parliamentary Counsel premises connection assets means the components of a distribution system used to provide connection services. real estate developer means a person who carries out a real estate development. real estate development means the commercial development of land including its development in 1 or more of the following ways: (a) subdivision; (b) the construction of commercial or industrial premises (or both); (c) the construction of multiple new residential premises. retail customer includes a non-registered embedded generator and a micro embedded generator. standard connection service means a connection service (other than a basic connection service) for a particular class (or sub-class) of connection applicant and for which a model standing offer has been approved by the AER. supply service means a service (other than a connection service) relating to the supply of electricity. -- 18 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 18 Authorised by the Chief Parliamentary Counsel 5A.A.2 Application of this Chapter (a) This Chapter does not apply to, or in relation to, a connection applicant that is a Registered Participant or an Intending Participant unless the Registered Participant or Intending Participant is acting as the agent of a retail customer. (b) Where a non-registered embedded generator wishing to connect an embedded generating unit to a Distribution Network Service Provider's network: (1) falls within a particular class (or subclass) of connection applicant for which that Distribution Network Service Provider provides a standard connection service, this Chapter will apply; (2) does not fall within a particular class (or subclass) of connection applicant for which that Distribution Network Service Provider provides a standard connection service, paragraph (c) will apply. (c) A non-registered embedded generator that meets the requirements in paragraph (b)(2) may elect to seek connection of the relevant embedded generating unit under rule 5.3A instead of this Chapter. -- 19 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 19 Authorised by the Chief Parliamentary Counsel (d) Any election made by a non-registered embedded generator under paragraph (c) must be: (1) made before an enquiry is made or if no enquiry is made, before a connection application is lodged with the relevant Distribution Network Service Provider; (2) in writing; and (3) delivered to the relevant Distribution Network Service Provider at the same time as lodging an enquiry under clause 5.3A.5. (e) For the avoidance of doubt, clause 5A.C.1(a)(2) is still applicable when a non-registered embedded generator meets the requirements in paragraph (b)(1). 5A.A.3 Small Generation Aggregator deemed to be agent of a retail customer A Market Small Generation Aggregator is deemed to be the agent of a retail customer, where there is an agreement between the Market Small Generation Aggregator and the retail customer relating to the retail customer's small generating unit under which the Market Small Generation Aggregator is financially responsible for the market connection point at which the small generating unit is connected to the national grid. -- 20 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 20 Authorised by the Chief Parliamentary Counsel Part B—Standardised offers to provide basic and standard connection services Division 1—Basic connection services 5A.B.1 Obligation to have model standing offer to provide basic connection services (a) Subject to paragraph (b), a Distribution Network Service Provider must have a model standing offer to provide basic connection services to retail customers. (b) Basic connection services are of 2 classes: (1) basic connection services for retail customers who are not embedded generators; and (2) basic connection services for retail customers who are micro-embedded generators. Note Basic connection services are not available to non-registered embedded generators. (c) A model standing offer may relate to each class of basic connection services (or a subclass for which there is significant demand) within the area served by the relevant distribution network. -- 21 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 21 Authorised by the Chief Parliamentary Counsel 5A.B.2 Proposed model standing offer for basic connection services (a) A Distribution Network Service Provider must submit for the AER's approval a proposed model standing offer to provide basic connection services for each class (or subclass) of basic connection services on specified terms and conditions. (b) The terms and conditions of the proposed model standing offer must cover: (1) a description of the connection (and the premises connection assets of which it is to be comprised) including a statement of its maximum capacity; and (2) timeframes for commencing and completing the work; and (3) the qualifications required for carrying out the work involved in providing a contestable service (including reference to the jurisdictional or other legislation and statutory instruments under which the qualifications are required); and (4) the safety and technical requirements (including reference to the jurisdictional or other legislation and statutory instruments under which the requirements are imposed) to be complied with by the provider of a contestable service or the retail customer (or both); and -- 22 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 22 Authorised by the Chief Parliamentary Counsel (5) details of the connection charges (or the basis on which they will be calculated) including details of the following (so far as applicable): (i) the cost of any necessary extension to the distribution system for which provision has not already been made through existing distribution use of system charges or a tariff applicable to the connection; (ii) meter type and cost; (iii) the cost of any other relevant premises connection assets; (iv) the costs of common components of minor variations from the standard specifications; (v) any other incidental costs; and (6) the manner in which connection charges are to be paid by the retail customer; and (7) if the service is a basic micro EG connection service, the particular requirements with regard to the export of electricity into the distribution system including: (i) the special requirements for metering and other equipment for the export of electricity; and -- 23 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 23 Authorised by the Chief Parliamentary Counsel (ii) the required qualification for installers of relevant equipment (including reference to the jurisdictional or other legislation and statutory instruments under which the qualifications are required); and (iii) the special safety and technical requirements (including reference to the jurisdictional or other legislation and statutory instruments under which they are imposed) to be complied with by the provider of a contestable service or the retail customer (or both). 5A.B.3 Approval of terms and conditions of model standing offer to provide basic connection services (a) The AER may approve a proposed model standing offer to provide basic connection services of a particular class (or subclass) on specified terms and conditions if satisfied that: (1) the services are likely to be sought by: (i) a significant number of retail customers in the area served by the distribution network (excluding embedded generators); or (ii) micro-embedded generators; and -- 24 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 24 Authorised by the Chief Parliamentary Counsel (2) the connection charges are consistent with the Distribution Network Service Provider's distribution determination including the connection policy; and (3) the terms and conditions are fair and reasonable; and (4) the terms and conditions comply with applicable requirements of the energy laws. (b) In deciding whether to approve a proposed model standing offer to provide basic connection services on specified terms and conditions, the AER must have regard to: (1) the national electricity objective; and (2) the basis on which the Distribution Network Service Provider has provided the relevant services in the past; and (3) the geographical characteristics of the area served by the relevant distribution network. (c) If the AER does not approve a proposed model standing offer to provide basic connection services of a particular class on specified terms and conditions: (1) the AER must give the Distribution Network Service Provider written reasons for its decision; and -- 25 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 25 Authorised by the Chief Parliamentary Counsel (2) the Distribution Network Service Provider must re-submit the proposed model standing offer with appropriate amendments as soon as reasonably practicable. (d) The AER must deal expeditiously with a proposed model standing offer to provide basic connection services. Division 2—Standard connection services 5A.B.4 Standard connection services (a) A Distribution Network Service Provider may submit for the AER's approval a proposed model standing offer to provide standard connection services on specified terms and conditions. (b) Different sets of terms and conditions may be submitted under this rule for different classes of connection services or different classes of retail customer. (c) The terms and conditions must cover: (1) a description of the connection (and the premises connection assets of which it is to be comprised) including a statement of its maximum capacity; and (2) timeframes for commencing and completing the work; and (3) the qualifications required for carrying out the work involved in providing a contestable service (including reference to the jurisdictional or other legislation -- 26 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 26 Authorised by the Chief Parliamentary Counsel and statutory instruments under which the qualifications are required); and (4) the safety and technical requirements (including reference to the jurisdictional or other legislation and statutory instruments under which the requirements are imposed) to be complied with by the provider of a contestable service or the retail customer (or both); and (5) details of the connection charges (or the basis on which they will be calculated) including details of the following (so far as applicable): (i) the cost of premises connection assets to which the connection charges relate; (ii) the cost of any necessary augmentation of the distribution system for which provision has not already been made through existing distribution use of system charges or a tariff applicable to the connection; (iii) the costs of common components of minor variations from the standard specifications; (iv) any other incidental costs; and -- 27 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 27 Authorised by the Chief Parliamentary Counsel (6) the manner in which connection charges are to be paid by the retail customer. 5A.B.5 Approval of model standing offer to provide standard connection services (a) The AER may approve a proposed model standing offer to provide a particular class of standard connection services on specified terms and conditions if satisfied that: (1) the terms and conditions are fair and reasonable; and (2) the connection charges are consistent with the Distribution Network Service Provider's distribution determination including the connection policy; and (3) the terms and conditions comply with applicable requirements of the energy laws. (b) In deciding whether to approve the proposed model standing offer, the AER must have regard to the national electricity objective. (c) If the AER does not approve a proposed model standing offer to provide standard connection services: (1) the AER must give the Distribution Network Service Provider written reasons for its decision; and -- 28 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 28 Authorised by the Chief Parliamentary Counsel (2) the Distribution Network Service Provider may re-submit the proposed model standing offer with appropriate amendments. (d) The AER must deal expeditiously with a proposed model standing offer to provide standard connection services. Division 3—Miscellaneous 5A.B.6 Amendment etc of model standing offer (a) A Distribution Network Service Provider may submit, for the AER's approval, a proposal: (1) for the amendment or substitution of a model standing offer to provide basic connection services; or (2) for the amendment, substitution or revocation of a model standing offer to provide standard connection services. (b) In deciding whether to approve a proposal submitted for its approval under this clause, the AER must, so far as relevant, apply the same principles and have regard to the same matters as are relevant to the approval of a proposed model standing offer to provide basic connection services or standard connection services. (c) The amendment, substitution or revocation of a model standing offer takes effect on the date of the AER's approval or a later date fixed by the AER in its approval. -- 29 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 29 Authorised by the Chief Parliamentary Counsel (d) If the AER does not approve a proposal submitted under paragraph (a): (1) the AER must give the Distribution Network Service Provider written reasons for its decision; and (2) the Distribution Network Service Provider may re-submit the proposal with appropriate amendments. (e) The amendment, substitution or revocation of a model standing offer does not affect the validity or effect of: (1) a connection offer made before the amendment, substitution or revocation takes effect; or (2) a connection contract formed on the basis of such an offer. (f) The AER must deal expeditiously with a proposal for the amendment, substitution or revocation of a model standing offer. (g) If the AER, after making a distribution determination, considers that an existing model standing offer to provide basic connection services or standard connection services may be inconsistent with the Distribution Network Service Provider's distribution determination (including the connection policy), the AER may require the Distribution Network Service Provider to submit a proposal under paragraph (a) to bring the model standing offer into consistency with the distribution determination. -- 30 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 30 Authorised by the Chief Parliamentary Counsel 5A.B.7 Publication of model standing offers A Distribution Network Service Provider must publish, on its website, each of its model standing offers to provide basic connection services or standard connection services. Part C—Negotiated connection 5A.C.1 Negotiation of connection (a) A connection applicant and a Distribution Network Service Provider may negotiate a connection contract (a negotiated connection contract): (1) where the connection service sought by the connection applicant is neither a basic connection service nor a standard connection service; or (2) where the connection service sought by the connection applicant is a basic connection service or a standard connection service but the connection applicant elects to negotiate the terms and conditions on which the connection service is to be provided. (b) The negotiations may, if the connection applicant elects, extend to supply services available from the Distribution Network Service Provider. (c) This Part sets out the requirements for negotiation referred to in the NERL. -- 31 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 31 Authorised by the Chief Parliamentary Counsel (d) When reading this Part in the context of the NERL: (1) a reference to a connection applicant in this Part corresponds to a reference to a customer in the NERL; and (2) a reference to a Distribution Network Service Provider in this Part corresponds to a reference to a distributor in the NERL; and (3) this Part will be read subject to any further adaptations and modifications necessary to give effect to the intendment of the NERL. (e) If, but for this paragraph, a contract negotiable under this Part, or parts or aspects of such a contract, would also be negotiable under Chapter 6, this Part applies to the exclusion of the relevant provisions of Chapter 6. 5A.C.2 Process of negotiation A Distribution Network Service Provider and a connection applicant for a negotiated connection contract must negotiate in accordance with the negotiation framework set out in clause 5A.C.3. 5A.C.3 Negotiation framework (a) The following rules (collectively described as the negotiation framework) govern negotiations between a Distribution Network Service Provider and a connection applicant: (1) each party must negotiate in good faith. -- 32 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 32 Authorised by the Chief Parliamentary Counsel (2) the connection applicant must, at the request of the Distribution Network Service Provider, provide the Distribution Network Service Provider with information it reasonably requires in order to negotiate on an informed basis. Note The information might (for example) include estimates of average and maximum demand for electricity to be supplied through the connection. (3) the Distribution Network Service Provider must provide the connection applicant with information the connection applicant reasonably requires in order to negotiate on an informed basis including; (i) an estimate of the amount to be charged by the Distribution Network Service Provider for assessment of the application and the making of a connection offer for a negotiated connection contract; and (ii) an estimate of connection charges; and (iii) a statement of the basis on which connection charges are calculated; and -- 33 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 33 Authorised by the Chief Parliamentary Counsel (iv) if the connection applicant has elected to extend the negotiations to supply services— an estimate of any applicable charges for supply services and a statement of the basis of their calculation. Note The Distribution Network Service Provider might, according to the circumstances of a particular case, need to provide further information to ensure the connection applicant is properly informed – for example, information about: • technical and safety requirements; • the types of connection that are technically feasible; • network capacity at the proposed connection point; • possible strategies to reduce the cost of the connection. (4) the Distribution Network Service Provider may consult with other users of the distribution network who may be adversely affected by the proposed new connection or connection alteration. (5) in assessing the application, the Distribution Network Service Provider must determine: (i) the technical requirements for the proposed new connection or connection alteration; and -- 34 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 34 Authorised by the Chief Parliamentary Counsel (ii) the extent and costs of any necessary augmentation of the distribution system; and (iii) any consequent change in charges for distribution use of system services; and (iv) any possible material effect of the proposed new connection or connection alteration on the network power transfer capability of the distribution network to which the new connection or connection alteration is proposed to be made and any other distribution network that might be affected by the proposed new connection or connection alteration. (6) the Distribution Network Service Provider must make reasonable endeavours to make a connection offer that complies with the connection applicant's reasonable requirements. Example Reasonable requirements as to the location of the proposed connection point or the level and standard of the distribution network's power transfer capability. (7) the Distribution Network Service Provider must comply with its connection policy. -- 35 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 35 Authorised by the Chief Parliamentary Counsel (b) The following supplementary rules apply: (1) if a Distribution Network Service Provider requires information from a connection applicant in addition to the information provided in the application, a request for the additional information under paragraph (a)(2) must (if practicable) be made within 20 business days after the Distribution Network Service Provider receives the relevant application; (2) the Distribution Network Service Provider must provide the information required under paragraph (a)(3) as soon as practicable after the Distribution Network Service Provider receives the connection applicant's application or, if the Distribution Network Service Provider requests additional information under paragraph (a)(2), as soon as practicable after the Distribution Network Service Provider receives the relevant information. (c) Each party to the negotiations must maintain the confidentiality of confidential information disclosed by the other party in the course of the negotiations unless disclosure of the information is authorised: (1) by the party to whom the duty of confidentiality is owed; or -- 36 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 36 Authorised by the Chief Parliamentary Counsel (2) under: (i) the Law or the Rules; or (ii) any other law. 5A.C.4 Fee to cover cost of negotiation (a) A Distribution Network Service Provider may charge a connection applicant for a negotiated connection contract a reasonable fee to cover expenses directly and reasonably incurred by the Distribution Network Service Provider in assessing the applicant's application and making a connection offer. (b) A fee charged under paragraph (a) is recoverable as a debt (whether or not the connection applicant accepts the connection offer). Part D—Application for connection service Division 1—Information 5A.D.1 Publication of information (a) A Distribution Network Service Provider must publish on its website the following: (1) an application form for a new connection or a connection alteration; and -- 37 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 37 Authorised by the Chief Parliamentary Counsel (2) a description of how an application for a new connection or a connection alteration is to be made (including a statement of the information required for the application); and (3) a description of the Distribution Network Service Provider's basic connection services and standard connection services and the classes (or subclasses) of retail customer to which they apply. If the Distribution Network Service Provider does not provide standard connection services for all or some non-registered embedded generators, a clear statement to this effect must also be included in the description; and (4) an explanation of the connection applicant's right to negotiate with the Distribution Network Service Provider for a negotiated connection contract and a description of the negotiation process; and (5) the requirements for an expedited connection; and (6) the basis for calculation of connection charges; and (7) information set out in clause 5.3A.3(b)(1)(vii), (2)-(7) as such information relates to the connection of embedded generating units by a non-registered embedded generator. -- 38 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 38 Authorised by the Chief Parliamentary Counsel (b) To the extent a Distribution Network Service Provider has provided the information required under paragraph (a)(7) by including that information in its information pack published under clause 5.3A.3(a)(3), it will be taken to have complied with paragraph (a)(7). 5A.D.1A Register of completed embedded generation projects (a) For the purposes of this clause 5A.D.1A: completed non-registered embedded generation projects means all embedded generating units, operated or controlled by a non-registered embedded generator that are connected to the Distribution Network Service Provider's network. DAPR date has the same meaning as in clause 5.13.2. (b) In relation to completed non-registered embedded generation projects, a Distribution Network Service Provider must establish and publish, on its website, a register of the plant, including but not limited to: (1) technology of generating unit (e.g. synchronous generating unit, induction generator, photovoltaic array, etc) and its make and model; (2) maximum power generation capacity of all embedded generating units comprised in the relevant generating system; -- 39 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 39 Authorised by the Chief Parliamentary Counsel (3) contribution to fault levels; (4) the size and rating of the relevant transformer; (5) a single line diagram of the connection arrangement; (6) protection systems and communication systems; (7) voltage control, power factor control and/or reactive power capability (where relevant); and (8) details specific to the location of a facility connected to the network that are relevant to any of the details in subparagraphs (1)-(7). (c) The Distribution Network Service Provider must not publish confidential information as part of, or in connection with, the register, unless disclosure of the information is authorised: (1) by the party to whom the duty of confidentiality is owed; or (2) under: (i) the National Electricity Law or the Rules; or (ii) any other law. (d) The Distribution Network Service Provider must: (1) by the DAPR date each year, include in the register the details contained in paragraph (b) for all completed non-registered embedded generation projects since the date the register referred -- 40 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 40 Authorised by the Chief Parliamentary Counsel to in paragraph (b) is established; and (2) in the fifth year after the establishment of the register, and in each year thereafter, update the register by the DAPR date with details of all completed non-registered embedded generation projects in the 5 year period preceding the DAPR date. (e) To the extent a Distribution Network Service Provider includes the information required under paragraphs (b) and (d) in its register established under clause 5.4.5, it will be taken to have complied with paragraphs (b) and (d). Division 2—Preliminary enquiry 5A.D.2 Preliminary enquiry (a) A Distribution Network Service Provider must, within 5 business days after receiving an enquiry about a connection service (or some other period agreed between the Distribution Network Service Provider and the enquirer), provide the enquirer with the information required to make an informed application. (b) The information must include: (1) a description of the Distribution Network Service Provider's basic and standard connection services and the terms and conditions of the model standing offers to -- 41 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 41 Authorised by the Chief Parliamentary Counsel provide such services (including possible costs); and (2) a description of the process, including a statement of the information required, for submission of a connection application including an application for an expedited connection; and (3) a statement of possible site inspection charges; and (4) a statement of a connection applicant's right to negotiate the terms of a connection contract and a description of the relevant process (including the types of possible costs and expenses); and (5) an indication of whether any aspects of the proposed connection are likely to be contestable; and (6) any additional information reasonably required by the enquirer. (c) A Distribution Network Service Provider that publishes any of the above information on its website complies with its obligation to disclose information under this clause if it refers the enquirer to the relevant part of the website. Exception: If the enquirer asks for a written reply to the enquiry or asks for specific advice about the enquirer's particular situation, the Distribution Network -- 42 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 42 Authorised by the Chief Parliamentary Counsel Service Provider must reply to the enquiry as soon as reasonably practicable and in writing if requested. (d) If an enquiry is made to a Distribution Network Service Provider about a connection within the area of another Distribution Network Service Provider, the Distribution Network Service Provider: (1) must inform the enquirer of the identity, and contact details, of the responsible Distribution Network Service Provider; and (2) on doing so, is released from further obligations in relation to the enquiry. Division 3—Applications 5A.D.3 Application process (a) An application for a connection service must be in the appropriate form determined by the Distribution Network Service Provider. (b) An application for a connection service may be made by: (1) a retail customer for whom the connection service is sought; or (2) a retailer or other person acting on behalf of a retail customer; or (3) a real estate developer who seeks connection services for premises comprised in a real estate development. -- 43 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 43 Authorised by the Chief Parliamentary Counsel (c) If an application for a connection service has been made in error to the wrong Distribution Network Service Provider, that Distribution Network Service Provider: (1) must inform the connection applicant of the identity, and contact details, of the responsible Distribution Network Service Provider; and (2) on doing so, is released from further obligations in relation to the application. (d) If an application is incomplete in a material respect, the Distribution Network Service Provider must advise the applicant of the deficiency and may require the connection applicant to complete the application and re-submit it. (e) If the Distribution Network Service Provider reasonably requires additional information to assess the application, it may require the connection applicant to provide the necessary information. (f) The Distribution Network Service Provider must, within 10 business days after receipt of a complete application for a connection service or if the connection applicant is required to provide additional information under paragraph (e), within 10 business days after receipt of the information, (or some other period agreed between the Distribution Network Service Provider and the connection applicant): -- 44 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 44 Authorised by the Chief Parliamentary Counsel (1) subject to any statements made on its website under clause 5A.D.1(a)(3), advise the connection applicant whether the proposed connection service is a basic connection service, a standard connection service or neither; and (2) if; (i) the connection service is neither a basic connection service nor a standard connection service; or (ii) the connection applicant elects to have a negotiated connection contract even though the proposed connection service is a basic or standard connection service; advise the connection applicant of the negotiated connection process and of possible costs and expenses related to the negotiations. (g) A single application may relate to multiple connection services of the same or different kinds. 5A.D.4 Site inspection If a Distribution Network Service Provider reasonably needs to make a site inspection in order to determine the nature of a connection service sought by a connection applicant, the Distribution Network Service Provider may charge its reasonable expenses to the connection applicant and recover those expenses as a debt. -- 45 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 45 Authorised by the Chief Parliamentary Counsel Part E—Connection charges 5A.E.1 Connection charge principles (a) This clause states the connection charge principles. (b) A retail customer (other than a non-registered embedded generator or a real estate developer) who applies for a connection service for which an augmentation is required cannot be required to make a capital contribution towards the cost of the augmentation (insofar as it involves more than an extension) if: (1) the application is for a basic connection service; or (2) a relevant threshold set in the Distribution Network Service Provider's connection policy is not exceeded. Note In general, the intention is to exclude deep system augmentation charges for retail customers. (c) Subject to paragraph (b), in determining connection charges in accordance with its connection policy, a Distribution Network Service Provider must apply the following principles: (1) if an extension to the distribution network is necessary in order to provide a connection service, connection charges for the service may include a reasonable capital contribution towards the cost of -- 46 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 46 Authorised by the Chief Parliamentary Counsel the extension necessary to provide the service; (2) if augmentation of premises connection assets at the retail customer's connection point is necessary in order to provide a connection service, connection charges for the service may include a reasonable capital contribution towards the cost of the augmentation of premises connection assets at the connection point necessary to provide the service; (3) if augmentation of the distribution system is necessary in order to provide a standard connection service, connection charges for the service may include a reasonable capital contribution towards the cost of the augmentation necessary to provide the service; (4) if augmentation of the distribution system is necessary in order to provide a connection service under a negotiated connection contract, connection charges for the service may, subject to any agreement to the contrary, include a reasonable capital contribution towards the cost of augmentation of the distribution system to the extent necessary to provide the service and to any further extent that a prudent service provider would consider necessary to -- 47 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 47 Authorised by the Chief Parliamentary Counsel provide efficiently for forecast load growth; (5) despite subparagraphs (1) to (4) if augmentation of the distribution system is necessary in order to provide, on the application of a real estate developer, connection services for premises comprised in a real estate development, connection charges for the services may, subject to any agreement to the contrary, include a reasonable capital contribution towards the cost of augmentation of the distribution system to the extent necessary to provide the services and to any further extent that a prudent service provider would consider necessary to provide efficiently for forecast load growth; (6) however, a capital contribution may only be required in the circumstances described in subparagraphs (1) to (5) if provision for the costs has not already been made through existing distribution use of system charges or a tariff applicable to the connection. (d) If: (1) a connection asset ceases, within 7 years after its construction or installation, to be dedicated to the exclusive use of the retail customer occupying particular premises; and -- 48 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 48 Authorised by the Chief Parliamentary Counsel (2) the retail customer is entitled, in accordance with the connection charge guidelines, to a refund of connection charges; the Distribution Network Service Provider must make the refund, and may recover the amount of the refund, by way of a connection charge, from the new users of the asset. (e) For the purposes of paragraph (d), a person is taken to be a new user of a connection asset if the asset comes to be used to provide a connection to that person's premises (f) For the purposes of this clause capital contribution includes a prepayment or financial guarantee. 5A.E.2 Itemised statement of connection charges A connection offer must be accompanied by a schedule containing an itemised statement of connection costs including (so far as relevant) the following: (a) applicable connection charges; (b) cost of network extension; (c) details of upstream augmentation required to provide the connection service and associated cost; (d) any other incidental costs and the basis of their calculation including, if relevant, costs of minor deviation from the standard specification for a basic connection service or a standard connection service (as the case may require). -- 49 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 49 Authorised by the Chief Parliamentary Counsel 5A.E.3 Connection charge guidelines (a) The AER must develop and publish guidelines (connection charge guidelines) for the development of connection policies by Distribution Network Service Providers. (b) The purpose of the guidelines is to ensure that connection charges: (1) are reasonable, taking into account the efficient costs of providing the connection services arising from the new connection or connection alteration and the revenue a prudent operator in the circumstances of the relevant Distribution Network Service Provider would require to provide those connection services; and (2) provide, without undue administrative cost, a user-pays signal to reflect the efficient cost of providing the connection services; and (3) limit cross-subsidisation of connection costs between different classes (or subclasses) of retail customer; and (4) if the connection services are contestable – are competitively neutral. (c) The guidelines must: (1) describe the method for determining charges for premises connection assets; and -- 50 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 50 Authorised by the Chief Parliamentary Counsel (2) describe the circumstances (or how to determine the circumstances) under which a Distribution Network Service Provider may receive a capital contribution, prepayment or financial guarantee from a retail customer or real estate developer for the provision of a connection service; and (3) describe how the amount of any such capital contribution, prepayment or financial guarantee is to be determined; and (4) establish principles for fixing a threshold (based on capacity or any other measure the AER thinks fit) below which retail customers (not being a non-registered embedded generator or a real estate developer) are exempt from any requirement to pay connection charges (or to give consideration in the form of a capital contribution, prepayment or financial guarantee) for an augmentation (other than an extension) to the distribution network necessary to make the connection; and (5) describe the methods for calculating the augmentation component for the connection assets and, if the augmentation consists of or includes an extension, the extension component of a connection charge; and -- 51 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 51 Authorised by the Chief Parliamentary Counsel (6) describe the method for calculating: (i) the amount of a refund of connection charges for a connection asset when an extension asset originally installed to connect the premises of a single retail customer is used, within 7 years of its installation, to connect other premises and thus comes to be used for the benefit of 2 or more retail customers; and (ii) the threshold below which the refund is not payable; and (7) describe the treatment of augmentation assets. (d) The principles for establishing an exemption under paragraph (c)(4) must ensure that the exemption only operates in the following circumstances: (1) the connection is a low voltage connection; and (2) the connection would not normally require augmentation of the network beyond the extension to the distribution network necessary to make the connection; and -- 52 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 52 Authorised by the Chief Parliamentary Counsel (3) the connection is not expected to increase the load on the distribution network beyond a level the Distribution Network Service Provider could reasonably be expected to cope with in the ordinary course of managing the distribution network. (e) In developing the guidelines, the AER must have regard to: (1) historical and geographical differences between networks; and (2) inter-jurisdictional differences related to regulatory control mechanisms, classification of services and other relevant matters; and (3) the circumstances in which connection services may be provided by persons other than Distribution Network Service Providers (and are therefore contestable). (f) In developing guidelines dealing with the method for calculating the amount of a refund of connection charges paid before a connection asset becomes a shared asset, the AER must have regard to: (1) the Distribution Network Service Provider's obligation to make the refund; and -- 53 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 53 Authorised by the Chief Parliamentary Counsel (2) future projections of distribution network expansion and usage and any consequent effect on the Distribution Network Service Provider's capacity to finance the acquisition of augmentation assets out of increased revenue; and (3) the fact that the Distribution Network Service Provider's obligation to make the refund will expire after 7 years. (g) In developing guidelines under this clause, the AER must act in accordance with the distribution consultation procedures. 5A.E.4 Payment of connection charges (a) Connection charges payable in respect of a connection service must be paid to the Distribution Network Service Provider by the retail customer's retailer unless: (1) the retailer did not apply for the connection service and the Distribution Network Service Provider has notified the retail customer that the customer must pay the connection charge directly; or (2) the retail customer asks to pay the connection charge directly and the Distribution Network Service Provider agrees; or -- 54 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 54 Authorised by the Chief Parliamentary Counsel (3) the Distribution Network Service Provider and the retailer agree that the Distribution Network Service Provider is to recover the connection charge from the retail customer. (b) If the retail customer pays, or is required to pay, a connection charge directly to a Distribution Network Service Provider under paragraph (a), the Distribution Network Service Provider must not recover that charge from the retail customer's retailer. (c) The Distribution Network Service Provider must separately identify each connection charge on the statement or invoice to the retailer. Note Rule 25 of the National Energy Retail Rules requires the listing of connection charges that are passed through by a retailer to a retail customer in the customer's bill. Part F—Formation and integration of connection contracts Division 1—Offer and acceptance – basic and standard connection services 5A.F.1 Distribution Network Service Provider's response to application (a) If the connection service sought by a connection applicant is a basic connection service or a standard connection service (and the applicant does not elect to apply for a negotiated connection contract), the Distribution -- 55 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 55 Authorised by the Chief Parliamentary Counsel Network Service Provider must make a connection offer to the applicant within: (1) 10 business days after receiving a properly completed application for the service and the additional information (if any) reasonably required under clause 5A.D.3(e); or (2) some other period agreed between the Distribution Network Service Provider and the connection applicant. (b) The connection offer must be in accordance with the relevant model standing offer and must include: (1) the date of the offer; and (2) details of the connection service to be provided; and (3) a statement of the connection charges payable by the connection applicant. 5A.F.2 Acceptance of connection offer (a) A connection offer to provide a basic connection service or standard connection service remains open for acceptance for 45 business days from the date of the offer and, if not accepted within that period, lapses unless the period for acceptance is extended by agreement between the connection applicant and the Distribution Network Service Provider. (b) This clause does not apply if the connection application is for an expedited connection. -- 56 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 56 Authorised by the Chief Parliamentary Counsel 5A.F.3 Offer and acceptance—application for expedited connection (a) If: (1) a connection applicant requests an expedited connection in the connection application; and (2) the Distribution Network Service Provider is satisfied that the connection application is for a basic connection service or standard connection service that falls within the terms of the relevant model standing offer; and (3) the connection applicant indicates in the connection application that a connection offer in terms of the relevant model standing offer would be acceptable to the applicant, the Distribution Network Service Provider is taken to have made, and the connection applicant is taken to have accepted, a connection offer in terms of the relevant model standing offer on the date the Distribution Network Service Provider receives the application. (b) If a connection applicant applies for an expedited connection but the Distribution Network Service Provider does not agree that an offer in terms of any model standing offer is appropriate, the Distribution Network Service Provider must notify the connection applicant accordingly and draw the applicant's attention to the provisions of -- 57 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 57 Authorised by the Chief Parliamentary Counsel these Rules dealing with negotiated connection. Division 2—Offer and acceptance – negotiated connection 5A.F.4 Negotiated connection offer (a) A Distribution Network Service Provider must use its best endeavours to make a negotiated connection offer to the connection applicant within 65 business days after the date of the application for connection (but the time taken by the applicant to provide information reasonably sought by the Distribution Network Service Provider under clause 5A.C.3(a)(2) will not be counted). (b) A negotiated connection offer: (1) must be in the form of an offer to enter into a contract in specified terms; and (2) must comply with the minimum requirements set out in Schedule 5A.1. (c) If the connection applicant elected to extend the negotiations to supply services, the connection offer must contain terms and conditions relating to the supply services. (d) A negotiated connection offer must not include a connection charge that is inconsistent with the Distribution Network Service Provider's connection policy. -- 58 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 58 Authorised by the Chief Parliamentary Counsel (e) A negotiated connection offer remains open for acceptance for 20 business days from the date of the offer and then lapses unless the period for acceptance is extended by agreement between the Distribution Network Service Provider and the connection applicant. Division 3—Formation of contract 5A.F.5 Acceptance of connection offer (a) If a connection offer to provide a connection service is accepted, the terms and conditions of the connection offer: (1) become terms and conditions of a connection contract formed between the Distribution Network Service Provider and the connection applicant; and (2) subject to rule 5A.F.6, are enforceable accordingly. (b) The Distribution Network Service Provider must, at the request of a connection applicant, provide a copy of: (1) the contract formed under paragraph (a); or (2) if that contract has been integrated with, and forms part of, a customer connection contract arising under the NERL—the integrated contract. -- 59 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 59 Authorised by the Chief Parliamentary Counsel Division 4—Contractual performance 5A.F.6 Carrying out connection work (a) A Distribution Network Service Provider must use its best endeavours to ensure that connection work is carried out within the applicable time limits fixed by the relevant provisions of the connection contract. (b) However, a Distribution Network Service Provider is not obliged to commence or continue with connection work if the connection applicant fails to comply with conditions that are to be complied with by the connection applicant. Examples The connection applicant fails to pay connection charges. The connection applicant fails to comply with technical or safety requirements. The connection applicant fails to complete work that is to be carried out on the connection applicant's premises. The connection applicant fails to comply with the Distribution Network Service Provider's reasonable request to allow the Distribution Network Service Provider safe and unhindered access to the applicant's premises. 5A.F.7 Retailer required for energisation where new connection A Distribution Network Service Provider is not required to energise a new connection unless a request to energise the new connection is submitted by a retailer, or the Distribution Network Service Provider is otherwise satisfied that there is a relevant -- 60 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 60 Authorised by the Chief Parliamentary Counsel contract with a retailer in relation to the premises. Part G—Dispute resolution between Distribution Network Service Providers and customers 5A.G.1 Relevant disputes (a) In this Part: customer means: (a) a retail customer; or (b) a real estate developer. relevant dispute means: (1) a dispute between a Distribution Network Service Provider and a customer about: (i) the terms and conditions on which a basic connection service or a standard connection service is to be provided; or (ii) the proposed or actual terms and conditions of a negotiated connection contract; or (2) a dispute between a Distribution Network Service Provider and a customer about connection charges. -- 61 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 61 Authorised by the Chief Parliamentary Counsel (b) A relevant dispute is an access dispute for the purposes of section 2A of the Law. 5A.G.2 Determination of dispute (a) In determining a relevant dispute, the AER must (so far as applicable) give effect to: (1) the relevant connection policy; and (2) a relevant model standing offer to provide a basic or standard connection service; and (3) this Chapter and any other applicable regulatory instrument. (b) In determining a relevant dispute, the AER may also: (1) have regard to other matters the AER considers relevant; and (2) hear evidence or receive submissions from the Distribution Network Service Provider and the customer; and (3) if the dispute relates to a negotiated connection contract – have regard to the negotiation framework set out in clause 5A.C.3. 5A.G.3 Termination of proceedings (a) If the AER considers that a relevant dispute could be effectively resolved by some means other than an access determination, the AER may give the parties to the dispute notice of the -- 62 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 62 Authorised by the Chief Parliamentary Counsel alternative means of resolving the dispute. Example The AER might give such a notice if of the opinion that a particular dispute could be dealt with more efficiently, and with less expense, by a jurisdictional ombudsman. (b) The giving of such a notice is a specified dispute termination circumstance for the purposes of section 131(3) of the Law. Note It follows that the AER may exercise its power to terminate the dispute without making an access determination (See section 131(1)(d) of the Law). SCHEDULE 5A.1—Minimum content requirements for connection contract Part A—Connection offer not involving embedded generation (a) A connection offer must contain: (1) a provision stating that a connection contract will be formed, and will come into operation, on acceptance of the connection offer; and (2) details of the connection point, the maximum capacity of the connection, and the connection assets required at the connection point; and -- 63 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 63 Authorised by the Chief Parliamentary Counsel (3) details of the premises connection assets and additional equipment to be installed on the premises and responsibility for undertaking the work; and (4) details of any distribution network extension or other augmentation required for the purposes of the connection; and (5) an undertaking to complete the work required to establish the connection within a specified time frame; and (6) a requirement that the retail customer have appropriate metering installed; and (7) the relevant technical and safety obligations to be met by the retail customer relating to the installation; and (8) the retail customer's obligation to allow access to the premises by the Distribution Network Service Provider's agents, contractors and employees; and (9) the retail customer's obligation to accommodate on its premises, and protect from harm, any equipment necessary for the connection; and (10) details of the retail customer's monetary obligations including billing arrangements and any security to be provided by the customer; and -- 64 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 64 Authorised by the Chief Parliamentary Counsel (11) details of the Distribution Network Service Provider's monetary obligations (if any) to the retail customer; and (12) a provision requiring the Distribution Network Service Provider to provide information about the connection to the retail customer; and (13) provision for amendment of the connection contract by agreement between the Distribution Network Service Provider and the retail customer. (b) A connection offer that relates to supply services must also deal with: (1) the Distribution Network Service Provider's power to interrupt or reduce the supply of electricity to the connection point; and (2) warranties and limitations on the Distribution Network Service Provider's liability; and (3) disconnection and reconnection; and (4) reporting and correction of faults; and (5) dispute resolution; and (6) ongoing customer obligations; and (7) termination of the connection contract. -- 65 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 65 Authorised by the Chief Parliamentary Counsel Part B—Connection offer involving embedded generation (a) A connection offer to a person who operates, or proposes to operate, an embedded generating unit (the embedded generator) must contain: (1) a provision stating that a connection contract will be formed, and will come into operation, on acceptance of the connection offer; and (2) details of the connection point, the maximum capacity of the connection to import and export electricity, and the embedded generator's installation required at the connection point; and (3) details of the premises connection assets and additional equipment to be installed on the premises and responsibility for undertaking the work; and (4) details of any distribution network extension or other augmentation required for the purposes of the connection; and (5) an undertaking to complete the work required to establish the connection within a specified time frame; and (6) a requirement that the embedded generator have appropriate metering installed; and -- 66 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 66 Authorised by the Chief Parliamentary Counsel (7) the relevant technical and safety obligations to be met by the embedded generator relating to the installation; and (8) the embedded generator's obligation to allow access to the premises by the Distribution Network Service Provider's agents, contractors and employees; and (9) the embedded generator's obligation to accommodate on its premises, and protect from harm, any equipment necessary for the connection; and (10) details of the embedded generator's monetary obligations including billing arrangements and any security to be provided by the embedded generator; and (11) details of the Distribution Network Service Provider's monetary obligations (if any) to the embedded generator; and (12) a provision requiring the Distribution Network Service Provider to provide information about the connection to the embedded generator; and (13) provision for amendment of the connection contract by agreement between the Distribution Network Service Provider and the embedded generator. -- 67 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 67 Authorised by the Chief Parliamentary Counsel (b) A connection contract that relates to supply services must also deal with: (1) the Distribution Network Service Provider's power to interrupt or reduce the supply of electricity to the connection point; and (2) warranties and limitations on the Distribution Network Service Provider's liability; and (3) disconnection and reconnection; and (4) reporting and correction of faults; and (5) dispute resolution; and (6) ongoing obligations of the Distribution Network Service Provider and the embedded generator; and (7) termination of the connection contract.". 5 Clause 6.1.2—Structure of Chapter 6 5.1 After clause 6.1.2(b)(4) of the National Electricity Rules insert— "(4A) Part DA deals with the preparation of, requirements for and approval of, connection policies;". 6 Clause 6.2.1—Classification of distribution services 6.1 At the foot of clause 6.2.1(a) of the National Electricity Rules insert— "Note If the AER decides against classifying a distribution service, the service is, subject to Chapter 5A, not regulated under the Rules.". -- 68 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 68 Authorised by the Chief Parliamentary Counsel 7 Clause 6.2.2—Classification of direct control services as standard control services or alternative control services 7.1 In clause 6.2.2(c)(5) of the National Electricity Rules, for "customer" substitute "person". 8 New Part DA inserted in Chapter 6 8.1 After Part D of Chapter 6 of the National Electricity Rules insert— "Part DA—Connection policies 6.7A Connection policy requirements This Rule deals with the preparation of, requirements for and approval of connection policies. 6.7A.1 Preparation of, and requirements for, connection policy (a) A Distribution Network Service Provider must prepare a document (its proposed connection policy) setting out the circumstances in which it may require a retail customer or real estate developer to pay a connection charge, for the provision of a connection service under Chapter 5A. (b) The proposed connection policy: (1) must be consistent with: (i) the connection charge principles; and (ii) the connection charge guidelines; and -- 69 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 69 Authorised by the Chief Parliamentary Counsel (2) must specify: (i) the categories of persons that may be required to pay a connection charge and the circumstances in which such a requirement may be imposed; and (ii) the aspects of a connection service for which a connection charge may be made; and Example The Distribution Network Service Provider might (for example) make separate connection charges for the provision of a connection asset and for making a necessary extension to, or other augmentation of, the distribution network. (iii) the basis on which connection charges are determined; and (iv) the manner in which connection charges are to be paid (or equivalent consideration is to be given); and Examples The payment (or equivalent consideration) might take the form of a capital contribution, prepayment or financial guarantee. -- 70 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 70 Authorised by the Chief Parliamentary Counsel (v) a threshold (based on capacity or any other measure identified in the connection charge guidelines) below which a retail customer (not being a non-registered embedded generator or a real estate developer) will not be liable for a connection charge for an augmentation other than an extension.". 9 Clause 6.8.2—Submission of regulatory proposal 9.1 After clause 6.8.2(c)(5) of the National Electricity Rules insert— "(5A) the proposed connection policy;". 10 Clause 6.12.1—Constituent decisions 10.1 For clause 6.12.1(17) of the National Electricity Rules substitute— "(17) a decision on the policies and procedures for assigning retail customers to tariff classes, or reassigning retail customers from one tariff class to another (including any applicable restrictions);". 10.2 After clause 6.12.1(20) of the National Electricity Rules insert— "(21) a decision on the connection policy that is to apply to the Distribution Network Service Provider for the regulatory control period (which may be the connection policy as proposed by the Distribution Network Service Provider, some variant of it, or a policy substituted by the AER).". -- 71 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 71 Authorised by the Chief Parliamentary Counsel 11 Clause 6.12.3—Extent of AER's discretion in making distribution determinations 11.1 After clause 6.12.3(h) of the National Electricity Rules insert— "(i) The AER must approve the proposed connection policy if the AER is satisfied that it adequately complies with the requirements of Part DA. (j) If the AER refuses to approve the proposed connection policy, the approved amended connection policy must be: (1) determined on the basis of the current proposed connection policy; and (2) amended from that basis only to the extent necessary to enable it to be approved in accordance with the Rules. (k) The AER must approve a Distribution Network Service Provider's proposed tariff structure statement unless the AER is reasonably satisfied that the proposed tariff structure statement does not comply with the pricing principles for direct control services or other applicable requirements of the Rules. (l) If, in making a distribution determination in relation to a Distribution Network Service Provider, the AER refuses to approve the Distribution Network Service Provider's proposed tariff structure statement, the AER must include in that distribution determination an amended tariff structure statement which is: -- 72 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 72 Authorised by the Chief Parliamentary Counsel (1) determined on the basis of the Distribution Network Service Provider's proposed tariff structure statement; and (2) amended from that basis only to the extent necessary to enable it to be approved in accordance with the Rules.". 12 Clause 6.18.3—Tariff classes 12.1 In clause 6.18.3(c) of the National Electricity Rules, for "customers" (where twice occurring) substitute "retail customers". 12.2 In clause 6.18.3(d)(1) of the National Electricity Rules, for "customers" substitute "retail customers". 13 Clause 6.18.4—Principles governing assignment or re-assignment of retail customers to tariff classes and assessment and review of basis of charging 13.1 In the heading to clause 6.18.4 of the National Electricity Rules, for "customers" substitute "retail customers". 13.2 In clause 6.18.4(a) of the National Electricity Rules, for "customers" (wherever occurring) substitute "retail customers". 14 Clause 6.18.6—Side constraints on tariffs for standard control services 14.1 In clause 6.18.6(d)(2) of the National Electricity Rules, for "customers" substitute "retail customers". -- 73 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 73 Authorised by the Chief Parliamentary Counsel 15 Clause 6.18.7—Recovery of designated pricing proposal charges 15.1 In clause 6.18.7(a) of the National Electricity Rules, for "customers" substitute "retail customers". 15.2 In clause 6.18.7(b) of the National Electricity Rules, for "customers" substitute "retail customers". 15.3 In clause 6.18.7(c)(2) of the National Electricity Rules, for "customers" substitute "retail customers". 16 Clause 6.19.2—Confidentiality of distribution network pricing information 16.1 In clause 6.19.2(b) of the National Electricity Rules, for "customer" substitute "retail customer". 17 Insertion of definitions in Chapter 10 17.1 Insert the following definitions in alphabetical order in Chapter 10 of the National Electricity Rules— "basic connection service Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. basic micro EG connection service Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. connection alteration Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. -- 74 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 74 Authorised by the Chief Parliamentary Counsel connection application Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. connection charge Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. connection charge guidelines Has the meaning given in clause 5A.D.3. connection charge principles Has the meaning given in clause 5A.E.1. connection contract Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. connection offer Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. connection policy Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. customer connection service Has (in the context of Chapter 6B) the meaning given in clause 6B.A1.2. energy laws Has the meaning given in section 2(1) of the NERL energy ombudsman Has the same meaning as in the NERL. -- 75 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 75 Authorised by the Chief Parliamentary Counsel enquiry Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 micro EG connection Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 micro embedded generator Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 model standing offer Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. new connection Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 premises connection assets Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 real estate developer Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 real estate development Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1 retail customer Has the same meaning as in the National Electricity Law. Otherwise, a person to whom electricity is sold by a retailer, and supplied in respect of connection points, for the premises of the person, and includes a -- 76 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 76 Authorised by the Chief Parliamentary Counsel person (or a person who is of a class of persons) prescribed by these Rules for the purposes of this definition. Note: In the context of Chapter 5A, the above definition has been supplemented by a definition specifically applicable to that Chapter. See clause 5A.A.1. retailer Has the same meaning as in the National Electricity Law. Otherwise, a Customer who engages in the activity of selling electricity to end users. standard connection service Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1. supply service Has (in the context of Chapter 5A) the meaning given in clause 5A.A.1". 17.2 In Chapter 10 of the National Electricity Rules, at the foot of the definition of confidential information, insert— "Note: In the context of Chapter 5A, the above definition has been displaced by a definition specifically applicable to that Chapter. See clause 5A.A.1.". 17.3 In Chapter 10 of the National Electricity Rules, at the foot of the definition of connect, connected, connection, insert— "Note: In the context of Chapter 5A, the above definition has been displaced by a definition specifically applicable to that Chapter. See clause 5A.A.1.". -- 77 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 77 Authorised by the Chief Parliamentary Counsel 17.4 In Chapter 10 of the National Electricity Rules, at the foot of the definition of connection service, insert— "Note: In the context of Chapter 5A, the above definition has been displaced by a definition specifically applicable to that Chapter. See clause 5A.A.1.". 17.5 In Chapter 10 of the National Electricity Rules, at the foot of the definition of contestable, insert— "Note: In the context of Chapter 5A, the above definition has been displaced by a definition specifically applicable to that Chapter. See clause 5A.A.1.". 17.6 In Chapter 10 of the National Electricity Rules, at the foot of the definition of Embedded Generator, insert— "Note: In the context of Chapter 5A, the above definition has been displaced by a definition specifically applicable to that Chapter. See clause 5A.A.1.". Schedule 3—Transitional provisions for retail customer connection arrangements Section 16T Part 1—Preliminary 1 Definitions (1) In this Schedule— applicable regulatory control period, for a distribution company, means the regulatory control period imposed under the next distribution -- 78 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 78 Authorised by the Chief Parliamentary Counsel determination which applies to the distribution company; distribution company means any of the following companies— (a) Citipower Pty Ltd (ACN 064 651 056); (b) Jemena Electricity Networks (Vic) Ltd (ACN 064 651 083); (c) Powercor Australia Ltd (ACN 064 651 109); (d) AusNet Electricity Services Pty Ltd (ACN 064 651 118); (e) United Energy Distribution Pty Limited (ACN 064 651 029); next distribution determination, for a distribution company, means the first distribution determination made after the relevant distribution determination which applies to the distribution company; relevant distribution determination, for a distribution company, means the 2016–2020 distribution determination made by the AER under the National Electricity Rules that applies to the distribution company (as amended or substituted from time to time); relevant provisions means Chapter 5A and Part DA of Chapter 6 of the National Electricity Rules; -- 79 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 79 Authorised by the Chief Parliamentary Counsel specified date means a date specified by the Minister under clause 2(1); transition period, for a distribution company, means the period— (a) beginning on the day on which section 6 of the National Electricity (Victoria) Further Amendment Act 2016 comes into operation; and (b) ending on the day on which the applicable regulatory control period for that distribution company commences. (2) Words and expressions used in the National Electricity Rules have the same respective meanings in this Schedule as they have in those Rules. 2 Minister may specify date for purposes of certain clauses (1) The Minister, by notice published in the Government Gazette, may specify a date for the purposes of clause 4, 6, 7 or 8. (2) To avoid doubt, the Minister may specify more than one date under subclause (1) for the purposes of clause 4, 6, 7 or 8, including a date that replaces an earlier specified date. 3 Transitional operation of relevant provisions (1) During the transition period, the relevant provisions operate subject to the exclusions, qualifications and modifications prescribed by this Schedule. -- 80 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 80 Authorised by the Chief Parliamentary Counsel (2) However, the relevant provisions operate without the exclusions, qualifications and modifications prescribed by this Schedule insofar as they relate to a period beyond the transition period. Example A distribution company which submits a regulatory proposal for the regulatory control period that follows the distribution company's transition period is bound by the relevant provisions (without exclusion, qualification or modification) in relation to the regulatory proposal even though the proposal is submitted during the transition period. (3) A transaction commenced by or with a distribution company during the transition period may be continued and completed after the transition period without regard to changes to the rules governing the transaction that take effect at the end of the transition period. 4 Extended meaning of some terms During the transition period— (a) a basic connection service includes not only a connection service for which a model standing offer has been approved by the AER (see paragraph (c) of the definition in clause 5A.A.1 of the National Electricity Rules) but also one for which the AER's approval of a model standing offer is not required; and (b) a standard connection service includes not only a connection service for which a model standing offer has been approved by the AER (see the definition in clause 5A.A.1 of the National Electricity Rules) but also -- 81 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 81 Authorised by the Chief Parliamentary Counsel one for which the AER's approval of a model standing offer is not required; and (c) a model standing offer includes a document prepared and published by a distribution company, without the AER's approval, as a model standing offer to have effect during the transition period (but not beyond the specified date). Part 2—Exclusions, qualifications and modifications 5 Connection policy A document, prepared by a distribution company and published on the distribution company's Internet site, will (although not approved by the AER) be taken to be the distribution company's connection policy if— (a) it sets out the circumstances in which connection charges are payable and the basis for determining the amount of such charges; and (b) it is consistent with— (i) the connection charge principles and the connection charge guidelines; and (ii) legislation of Victoria that regulates electricity in Victoria, or any instrument made or issued under or for the purposes of that legislation; and -- 82 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 82 Authorised by the Chief Parliamentary Counsel (iii) the relevant distribution determination for the distribution company (if applicable). 6 Model standing offer (basic connection services) (1) A document, prepared by a distribution company and published on the distribution company's Internet site, will (although not approved by the AER) be regarded as a model standing offer to provide basic connection services until the specified date if it complies with the requirements of clause 5A.B.2(b) of the National Electricity Rules as to its terms and conditions. (2) If, before the specified date, the AER approves a model standing offer for the same basic connection services, the approved model standing offer supersedes the former model standing offer. (3) A distribution company's obligation to have a model standing offer to provide basic connection services (clause 5A.B.1 of the National Electricity Rules) operates during the transition period but the AER's approval of the standing offer is not required until the specified date. 7 Model standing offer (standard connection services) (1) A document, prepared by a distribution company and published on the distribution company's Internet site, will (although not approved by the AER) be regarded as a model standing offer to provide standard connection services until the specified date if it complies with the requirements of -- 83 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 83 Authorised by the Chief Parliamentary Counsel clause 5A.B.4(c) of the National Electricity Rules as to its terms and conditions. (2) If, before the specified date, the AER approves a model standing offer for the same standard connection services, the approved model standing offer supersedes the former model standing offer. (3) A distribution company may submit for the AER's approval a proposed model standing offer to provide standard connection services (clause 5A.B.4 of the National Electricity Rules) before the specified date, but the AER's approval of the model standing offer is not required until the specified date. 8 Amendment of standing offers Until the specified date, a distribution company may amend a standing offer to provide basic connection services or standard connection services by publishing the amendments and the amended text on its Internet site. (This clause applies until the specified date to the exclusion of clause 5A.B.6 of the National Electricity Rules). Part 3—General provisions 9 Connection charges A distribution company must comply with its connection policy and any other applicable regulatory obligation or requirement when calculating or imposing a connection charge for the transition period. -- 84 of 87 -- Part 2—Amendments to the National Electricity (Victoria) Act 2005 National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 84 Authorised by the Chief Parliamentary Counsel 10 References A reference to any of the relevant provisions in a legislative or other instrument will be construed, during the transition period, as a reference to the provision as modified by this Schedule. 11 Authorisation of certain relevant distribution determinations (1) This clause applies if— (a) the AER made a relevant distribution determination under the Rules on or after section 6 of the National Electricity (Victoria) Further Amendment Act 2016 was enacted, but before the commencement of that section; and (b) the AER made that determination as if the Rules had been amended by Schedule 2. (2) For the purposes of the National Electricity (Victoria) Law and the Rules, the relevant distribution determination (to the extent it has been made as if the Rules under which the determination was made were the Rules as amended by Schedule 2)— (a) is taken to be authorised to have been made under the Rules; and (b) has effect from that commencement subject to that Law or Rules so applying.'. -- 85 of 87 -- Part 3—Repeal of amending Act National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 85 Authorised by the Chief Parliamentary Counsel Part 3—Repeal of amending Act 7 Repeal of amending Act This Act is repealed on 1 January 2018. Note The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). ═══════════════ -- 86 of 87 -- Endnotes National Electricity (Victoria) Further Amendment Act 2016 No. 24 of 2016 86 Authorised by the Chief Parliamentary Counsel Endnotes 1 General information See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information. † Minister's second reading speech— Legislative Assembly: 9 December 2015 Legislative Council: 10 March 2016 The long title for the Bill for this Act was "A Bill for an Act to amend the National Electricity (Victoria) Act 2005 to apply in Victoria certain provisions of the National Electricity Law and to amend the National Electricity Rules as in force in Victoria to implement certain retail customer connection arrangements and for other purposes." -- 87 of 87 --