Energy Legislation Amendment (Retail Competition and Other Matters) Act 2008
i
Energy Legislation Amendment (Retail
Competition and Other Matters) Act 2008
No. 59 of 2008
TABLE OF PROVISIONS
Section Page
PART 1—PRELIMINARY 1
1 Purpose 1
2 Commencement 3
PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT
2000 5
3 Definitions 5
4 Declaration of classes of customers and retailers and specified
circumstances 6
5 Regulation of tariffs for prescribed customers 8
6 Condition restricting sale to certain customers 9
7 Section 23A repealed 9
8 Offer to domestic or small business customers 9
9 New sections 35A to 35E inserted 10
35A Licensee standing offer tariffs to be given to
Commission 10
35B Commission must publish on Internet licensee
standing offer tariffs 10
35C Internet publication and bill notification of licensee
standing offers 11
35D Required tariff information and licensee contact
information to be published in newspaper 12
35E Order specifying method and variables to be used
to determine weighted tariff variation 13
10 Terms and conditions of contracts for sale of electricity to
certain customers 14
11 Publication of terms and conditions of sale of electricity
(relevant published offers) 14
12 Deemed contracts with former franchise customers 15
13 Deemed contracts for supply and sale for relevant customers 15
14 New section 39A inserted 15
39A Commission must report to Minister on electricity
supply offers 15
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15 New Division 5B of Part 2 inserted 17
Division 5B—Condition relating to greenhouse gas
emissions and energy efficiency benchmarking information 17
40O Definitions 17
40P Meaning of bill benchmarking information 17
40Q Declaration of residential customers 18
40R Condition relating to greenhouse gas emissions and
energy efficiency benchmarking information 18
40S Commission guidelines relating to greenhouse gas
emissions information condition 19
16 New definition inserted into section 46B 19
17 Orders in relation to advanced metering infrastructure 20
18 General powers in relation to Orders relating to advanced
metering infrastructure 21
PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001 22
Division 1—Consumer safety net provisions 22
19 Definitions 22
20 Declaration of classes of customers and retailers and specified
circumstances 23
21 Regulation of tariffs for prescribed customers 25
22 Offer to domestic or small business customers 26
23 New sections 42A to 42E inserted 27
42A Licensee standing offer tariffs to be given to
Commission 27
42B Commission must publish on Internet licensee
standing offer tariffs 27
42C Internet publication and bill notification of licensee
standing offers 27
42D Required tariff information and licensee contact
information to be published in newspaper 28
42E Order specifying method and variables to be used to
determine weighted tariff variation 30
24 Terms and conditions of contracts for sale of gas to certain
customers 30
25 Publication of terms and conditions of sale of gas (relevant
published offers) 30
26 Deemed contracts with former franchise customers 31
27 Deemed contracts for supply and sale for relevant customers 32
28 New section 47 inserted 32
47 Commission must report to Minister on gas supply
offers 32
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Division 2—Other amendments 33
29 Repeal of Tariff Order provision 33
30 Retail gas market rules 33
31 Principles for retail gas market rules 34
32 New section 62 substituted 34
62 Retail gas market rules—gas transmission system
and gas distribution system 34
33 Consequential amendment to reference to VENCorp
developed retail gas market rules 35
34 Consequential section cross-reference amendment 35
35 Approval of rules by Commission 35
36 Commission directions to VENCorp in relation to supplier
of last resort trigger events 35
37 Costs of VENCorp 36
38 New section 237 inserted 36
237 Transitional provision—Retail gas market rules
developed by VENCorp 36
PART 4—AMENDMENT OF OTHER ENERGY LEGISLATION 38
Division 1—Amendment of Gas Safety Act 1997 38
39 Definitions 38
40 Regulations 38
Division 2—Amendment of Electricity Safety Act 1998 39
41 Certificates of approval, acceptance or compliance 39
42 Incorporation by reference by regulations 39
Division 3—Amendment of National Electricity (Victoria)
Amendment Act 2007 40
43 ESC AMI determination processes not completed before
regulatory handover to AER 40
27A AER determinations under the AMI Order 40
44 Appeals against certain decisions or actions of the AER 42
Division 4—Amendment of National Gas (Victoria) Act 2008 42
45 Transitioned Victorian distribution RIOs 42
46 Matters to be taken into account when AER makes or prepares
regulatory information instruments 43
PART 5—REPEAL OF AMENDING ACT 44
47 Repeal of Act 44
═══════════════
ENDNOTES 45
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1
Energy Legislation Amendment (Retail
Competition and Other Matters) Act
2008 †
No. 59 of 2008
[Assented to 22 October 2008]
The Parliament of Victoria enacts:
PART 1—PRELIMINARY
1 Purpose
The main purpose of this Act is to—
(a) amend the Electricity Industry Act 2000
to—
Victoria
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(i) make further provision in relation to
tariffs at, and terms and conditions on,
which electricity is sold to customers;
and
(ii) empower the Essential Services
Commission to report on the tariffs at,
and the terms and conditions on, which
electricity is sold to customers; and
(iii) make further provision in relation to the
making of Orders in Council relating to
advanced metering infrastructure; and
(b) amend the Gas Industry Act 2001 to—
(i) make further provision in relation to
tariffs at, and terms and conditions on,
which gas is sold to customers; and
(ii) empower the Essential Services
Commission to report on the tariffs at,
and the terms and conditions on, which
gas is sold to customers; and
(iii) to empower the Governor in Council to
make retail gas market rules for the gas
transmission system and gas
distribution system; and
(iv) empower the Australian Energy
Regulator to approve the amounts
VENCorp determines are payable by a
gas retailer to VENCorp in respect of
the costs incurred by VENCorp in
relation to the implementation of, and
the provision of services in connection
with, arrangements for competition in
the retail gas market in Victoria; and
(v) repeal a redundant tariff order
provision; and
s. 1
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(c) amend the Gas Safety Act 1997 to—
(i) clarify the scope of the definition of
standard gas installation; and
(ii) enable regulations to be made that
require the keeping of records in
relation to the service, maintenance,
repair or modification of complex gas
installations and Type B appliances;
and
(d) amend the Electricity Safety Act 1998 to
make further provision in relation to the
making of regulations under that Act; and
(e) amend the National Electricity (Victoria)
Amendment Act 2007 to make further
provision in relation to determinations
relating to advanced metering infrastructure;
and
(f) amend the National Gas (Victoria) Act
2008 to clarify the operation and effect of the
transitioned Victorian distribution regulatory
information order.
2 Commencement
(1) This Act (except Part 2, Division 1 of Part 3,
section 30(1) and sections 31 to 39) comes into
operation on the day after the day on which this
Act receives the Royal Assent.
(2) Part 2 and Division 1 of Part 3 come into
operation on 1 January 2009.
(3) Subject to subsection (6), section 30(1) and
sections 31 to 38 come into operation on a day to
be proclaimed.
(4) Subject to subsection (5), section 39 comes into
operation on a day to be proclaimed.
s. 2
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(5) If section 39 does not come into operation before
1 January 2010, that section comes into operation
on that day.
(6) If section 30(1) and sections 31 to 38 do not come
into operation before 1 July 2010, those
provisions come into operation on that day.
__________________
s. 2
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PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT
2000
3 Definitions
(1) In section 3 of the Electricity Industry Act 2000
insert the following definitions—
"AEMC means the Australian Energy Market
Commission established by section 5 of the
Australian Energy Market Commission
Establishment Act 2004 of South Australia;
domestic or small business customer means a
person, or a member of a class of persons, to
whom an Order under section 35(5) applies;
licensee standing offer means—
(a) the tariffs determined by a licensee
under section 35(1) and published in
the Government Gazette in accordance
with that subsection, as varied from
time to time by the licensee as provided
for under section 35(3); and
(b) the terms and conditions determined by
a licensee and approved by the
Commission under section 35(1) and
published in the Government Gazette in
accordance with that subsection, as
varied from time to time by the licensee
and approved by the Commission as
provided for under section 35(4);
MCE means the Ministerial Council on Energy
established on 8 June 2001, being the
Council of Ministers with primary carriage
of energy matters at a national level
comprising the Ministers representing the
Commonwealth, the States, the Australian
Capital Territory and the Northern Territory,
s. 3
See:
Act No.
68/2000.
Reprint No. 4
as at
9 November
2006
and
amending
Act Nos
35/2007,
55/2007 and
25/2008.
LawToday:
www.
legislation.
vic.gov.au
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acting in accordance with its own
procedures;
regulated tariff standing offer means a licensee
standing offer that is subject to an Order
under section 13 that is in force;
relevant published offer means the tariffs and
terms and conditions on which a specified
retailer sells electricity to small retail
customers that are published in accordance
with section 36A;
specified circumstances, in section 36A, means
circumstances declared to be specified
circumstances by Order under section
7AA(1)(c);
specified retailer means a retailer declared to be a
specified retailer by Order under section
7AA(1)(b);
standing offer means—
(a) a licensee standing offer; or
(b) a regulated tariff standing offer;".
(2) In section 3 of the Electricity Industry Act 2000,
in the definition of small retail customer,
for "7AA" substitute "7AA(1)(a)".
4 Declaration of classes of customers and retailers and
specified circumstances
(1) In section 7AA(1)(b) of the Electricity Industry
Act 2000, for "section 36A." substitute
"section 36A;".
(2) After section 7AA(1)(b) of the Electricity
Industry Act 2000 insert—
"(c) declare circumstances to be specified
circumstances for the purposes of
section 36A.".
s. 4
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(3) In section 7AA(3) of the Electricity Industry Act
2000, for "this section" substitute
"subsection (1)(a)".
(4) After section 7AA(3) of the Electricity Industry
Act 2000 insert—
"(3A) An Order under subsection (1)(b) may
declare a licensee to be a specified retailer by
reference to all or any of the following—
(a) the number of small retail customers of
the licensee;
(b) the tariffs at, and terms and conditions
on, which the licensee sells electricity
to its small retail customers;
(c) the distribution area of a distribution
company provided for in the company's
licence;
(d) any other specified factor relevant to
the sale of electricity.
(3B) An Order under subsection (1)(c) may
declare circumstances to be specified
circumstances by reference to all or any of
the following—
(a) the number of small retail customers of
a specified retailer;
(b) the tariffs at, and terms and conditions
on, which a specified retailer sells
electricity to its small retail customers;
(c) the distribution area of a distribution
company provided for in the company's
licence;
(d) any other specified factor relevant to
the sale of electricity.".
s. 4
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5 Regulation of tariffs for prescribed customers
(1) After section 13(1) of the Electricity Industry
Act 2000 insert—
"(1A) The Governor in Council may only make an
Order under subsection (1) if under an MCE
directed retail competition review the
AEMC—
(a) concludes that competition in a market
for electricity is not effective; and
(b) recommends, in accordance with the
MCE's written direction for that review,
that price controls on prices for retail
electricity services be (as the case
requires) retained or reintroduced.".
(2) After section 13(2) of the Electricity Industry
Act 2000 insert—
"(2A) Without limiting the generality of
subsection (1), in determining the manner
tariffs for the sale of electricity to prescribed
customers or a class of prescribed customers
are to be regulated, the Governor in Council
may have regard to the tariffs payable by the
prescribed customers or a class of prescribed
customers during the review period.".
(3) In section 13(6) of the Electricity Industry Act
2000 insert the following definitions—
"MCE directed retail competition review means
an MCE directed review (within the meaning
of the National Electricity (Victoria) Law)
under section 41(1)(d) of that Law;
s. 5
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review period means the period—
(a) commencing on the day that the
direction of the MCE requiring an MCE
directed retail competition review is
published in the South Australian
Government Gazette under
section 41(3) of the National Electricity
(Victoria) Law; and
(b) ending on the day before the day the
Order under subsection (1) is made.".
(4) Section 13(7) of the Electricity Industry Act
2000 is repealed.
6 Condition restricting sale to certain customers
Section 23(4) of the Electricity Industry Act
2000 is repealed.
7 Section 23A repealed
Section 23A of the Electricity Industry Act 2000
is repealed.
8 Offer to domestic or small business customers
(1) Insert the following heading to section 35 of the
Electricity Industry Act 2000—
"Offer to domestic or small business customers
(licensee standing offers)".
(2) In section 35(3) of the Electricity Industry Act
2000, for "The tariffs" substitute "Subject to
subsection (3A), the tariffs".
(3) After section 35(3) of the Electricity Industry
Act 2000 insert—
"(3A) A licensee must not vary tariffs under
subsection (3) that have been in effect for
less than 6 months.".
(4) In section 35(4) of the Electricity Industry Act
2000, for "2 months" substitute "one month".
s. 6
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(5) In section 35(8) of the Electricity Industry Act
2000—
(a) in the definition of cooling-off period, for
"the contract;" substitute "the contract.";
(b) the definition of domestic or small business
customer is repealed.
(6) Section 35(9) of the Electricity Industry Act
2000 is repealed.
9 New sections 35A to 35E inserted
After section 35 of the Electricity Industry Act
2000 insert—
"35A Licensee standing offer tariffs to be given
to Commission
Without limiting the generality of section
20(2) or (3) or section 21, the conditions to
which a licence to sell electricity, being a
licence under which electricity may be sold
to domestic or small business customers, is
subject, include a condition requiring the
licensee to, on the same day the licensee
publishes tariffs in accordance with
section 35—
(a) give a copy of those tariffs to the
Commission; and
(b) inform the Commission, in writing, of
the day those tariffs take effect.
35B Commission must publish on Internet
licensee standing offer tariffs
The Commission must publish on its Internet
site tariffs it receives under section 35A on
the day those tariffs take effect.
s. 9
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35C Internet publication and bill notification
of licensee standing offers
(1) Without limiting the generality of section
20(2) or (3) or section 21, the conditions to
which a licence to sell electricity, being a
licence under which electricity may be sold
to domestic or small business customers, is
subject, include a condition requiring the
licensee to—
(a) publish, in accordance with guidelines
issued under subsection (2), on the
licensee's Internet site details of
licensee standing offers that are in
effect; and
(b) notify, in writing, a domestic or small
business customer of the licensee
standing offer that is in effect and that
applies to electricity sold to that
customer in or with the customer's first
electricity bill after that licensee
standing offer has taken effect.
(2) The Commission must prepare and issue
guidelines for the purposes of this section
specifying—
(a) the manner of publication of details of
licensee standing offers that are in
effect, including the accessibility of
those licensee standing offers on a
licensee's Internet site; and
(b) the nature of the details to be published;
and
(c) any other matters that the Commission
considers relevant.
s. 9
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35D Required tariff information and licensee
contact information to be published in
newspaper
(1) Without limiting the generality of section
20(2) or (3) or section 21, the conditions to
which a licence to sell electricity, being a
licence under which electricity may be sold
to domestic or small business customers, is
subject, include a condition requiring the
licensee to, on the required day, publish in a
newspaper circulating generally throughout
Victoria—
(a) required tariff information; and
(b) the licensee's contact information.
(2) In this section—
licensee's contact information means all of
the following information—
(a) the licensee's telephone number;
(b) the licensee's fax number;
(c) the licensee's postal address;
(d) the Internet address of the
licensee's Internet site;
required day means the day the licensee
varies a tariff or tariffs for the supply
and sale of electricity by notice
published in the Government Gazette in
accordance with section 35(3);
required tariff information means—
(a) tariff variation information; and
(b) the date a tariff or tariffs varied in
accordance with section 35(3)
takes or take effect; and
s. 9
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(c) a description of the tariff or tariffs
referred to in paragraph (b); and
(d) the main reasons for the variation
of a tariff or tariffs referred to in
paragraph (b);
tariff variation information means—
(a) in the case of a single tariff for the
supply and sale of electricity that
is varied in accordance with
section 35(3), the weighted tariff
variation relating to that tariff
determined in accordance with an
Order under section 35E;
(b) in the case where more than one
tariff for the supply and sale of
electricity is varied in accordance
with section 35(3) at the same
time in accordance with that
section, the weighted tariff
variation relating to those tariffs
determined in accordance with an
Order under section 35E.
35E Order specifying method and variables to
be used to determine weighted tariff
variation
The Governor in Council, by Order
published in the Government Gazette, may
specify the method and variables to be used
to determine the weighted tariff variation for
the purposes of paragraphs (a) and (b) of the
definition of tariff variation information in
section 35D(2).".
s. 9
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10 Terms and conditions of contracts for sale of
electricity to certain customers
Section 36(7) of the Electricity Industry Act
2000 is repealed.
11 Publication of terms and conditions of sale of
electricity (relevant published offers)
(1) In the heading to section 36A of the Electricity
Industry Act 2000—
(a) after "of" (where first occurring) insert
"tariffs,";
(b) after "electricity" insert "(relevant
published offers)".
(2) For section 36A(1) of the Electricity Industry
Act 2000 substitute—
"(1) Without limiting the generality of section
20(2) or (3) or section 21, the conditions to
which a licence to sell electricity issued to a
specified retailer is subject include a
condition requiring the specified retailer in
specified circumstances—
(a) to publish on its Internet site, in
accordance with this section, details of
the tariffs and terms and conditions on
which that retailer sells electricity to
small retail customers; and
(b) to, on the same day the retailer
publishes the details of the tariffs, terms
and conditions in accordance with
paragraph (a), give a copy of those
details to the Commission.
(1A) The Commission must publish on its Internet
site the details of the tariffs, terms and
conditions it receives under subsection (1)(b)
as soon as practicable after receiving those
details.".
s. 10
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(3) In section 36A(2)(a) of the Electricity Industry
Act 2000, after "conditions" insert ", including
the accessibility of the details of those tariffs and
terms and conditions on a specified retailer's
Internet site".
(4) Section 36A(5) and section 36A(6) of the
Electricity Industry Act 2000 are repealed.
12 Deemed contracts with former franchise customers
Section 37(3) of the Electricity Industry Act
2000 is repealed.
13 Deemed contracts for supply and sale for relevant
customers
Section 39(11) of the Electricity Industry Act
2000 is repealed.
14 New section 39A inserted
After section 39 of the Electricity Industry Act
2000 insert—
"39A Commission must report to Minister on
electricity supply offers
(1) The Commission must by the end of every
calendar year, and at other times the Minister
directs in writing, prepare and give to the
Minister a report that, for the reporting
period, compares and assesses—
(a) licensee standing offers, deemed
standing offers in effect during the
reporting period, and relevant published
offers and other offers of retailers to
supply and sell electricity that were
available during the reporting period;
s. 12
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(b) variations to licensee standing offers,
deemed standing offers, relevant
published offers and other offers to
supply and sell electricity during the
reporting period.
(2) A report under subsection (1)—
(a) may include information about any
trends in relation to variations to
licensee standing offers, deemed
standing offers, relevant published
offers and other offers of retailers to
supply and sell electricity over a period;
and
(b) must also include any other information
that the Minister, in writing, requires to
be included.
(3) A period referred to in subsection (2)(a) may
be greater than the reporting period.
(4) The Commission must publish a report under
subsection (1) on its Internet site as soon as
practicable after giving it to the Minister.
(5) In this section—
deemed standing offer means the tariffs and
terms and conditions constituting a
deemed contract for the supply and sale
of electricity under section 37 or
section 39;
reporting period means the financial year
ending in the calendar year in which the
Commission must give its report to the
Minister.".
s. 14
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15 New Division 5B of Part 2 inserted
After Division 5A of Part 2 of the Electricity
Industry Act 2000 insert—
"Division 5B—Condition relating to
greenhouse gas emissions and energy efficiency
benchmarking information
40O Definitions
In this Division—
bill benchmarking information has the
meaning given by section 40P;
provide, in relation to bill benchmarking
information, means—
(a) include in, or accompany, a bill
issued for the supply or sale of
electricity to a residential
customer; or
(b) give in another manner approved
by the Commission;
residential customer means a person, or a
member of a class of persons, to whom
an Order under section 40Q(1) applies.
40P Meaning of bill benchmarking
information
Bill benchmarking information is
information that enables a residential
customer to—
(a) make a comparison between—
(i) the use of electricity at the
residential customer's place of
supply; and
(ii) the average use of electricity at
similar places of supply; and
s. 15
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(b) assess whether the use of electricity at
the residential customer's place of
supply is above, equal or below the
average use of electricity at similar
places of supply.
40Q Declaration of residential customers
(1) The Governor in Council, by Order
published in the Government Gazette, may
declare that a person or a class of persons
specified in the Order is, for the purposes of
section 40R(b), a residential customer or
class of residential customers.
(2) An Order under subsection (1) may specify a
class of persons by reference to all or any of
the following—
(a) the person authorised to sell the
electricity;
(b) the purpose for which the electricity is
used;
(c) the quantity of electricity used;
(d) the period of use;
(e) the place of supply;
(f) any other specified factor relevant to
the sale of electricity.
40R Condition relating to greenhouse gas
emissions and energy efficiency
benchmarking information
A licence to sell electricity is deemed to
include a condition requiring the licensee
to—
(a) include in each bill issued to a customer
for the supply or sale of electricity the
information concerning greenhouse gas
emissions connected with the
s. 15
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generation of the electricity so supplied
or electricity generation in general that
the Commission specifies for this
purpose in its guidelines; or
(b) provide bill benchmarking information
to a residential customer.
40S Commission guidelines relating to
greenhouse gas emissions information
condition
(1) The Commission must prepare and issue
guidelines for the purposes of
section 40R(a).
(2) The Commission may amend any guidelines
issued under subsection (1).
(3) The Commission must consult with
Sustainability Victoria before issuing a
guideline under subsection (1) or amending a
guideline issued under that subsection.
(4) The Commission must publish each
guideline issued under subsection (1) and
each amendment of a guideline.".
16 New definition inserted into section 46B
In section 46B of the Electricity Industry Act
2000 insert the following definition—
"exempted retailer means a person who—
(a) engages in the supply and sale of
electricity; and
(b) is exempted under an Order under
section 17 from the requirement to
obtain a licence under that Act in
respect of that activity;".
s. 16
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17 Orders in relation to advanced metering
infrastructure
(1) In section 46D(a), (b), (c), (d) and (e) of the
Electricity Industry Act 2000, after "relevant
licensee" insert "or an exempted retailer".
(2) After section 46D(g) of the Electricity Industry
Act 2000 insert—
"(ga) specify the responsibilities of an exempted
retailer on being notified of a customer's
election to transfer to a retailer or another
exempted retailer, to ensure there is no cost
impediment or other impediment to that
transfer arising from the exempted retailer's
provision of advanced metering
infrastructure;".
(3) For section 46D(h) of the Electricity Industry
Act 2000 substitute—
"(h) provide for the setting and regulation of the
prices, fees and charges that a relevant
licensee who is a distribution company may
charge for or in connection with the costs of,
or in relation to, the provision, installation,
maintenance and operation of advanced
metering infrastructure and associated
services and systems;
(i) empower the recovery of the prices, fees and
charges referred to in paragraph (h) from—
(i) a retailer who is a relevant licensee or a
class or classes of retailers who are
relevant licensees supplied electricity
by the distribution company, or all
customers of a retailer who is a relevant
licensee or a class or classes of
customers of a retailer who is a relevant
licensee and is so supplied;
s. 17
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(ii) an exempted retailer or a class or
classes of exempted retailers supplied
electricity by the distribution company,
or all customers of an exempted retailer
or a class or classes of customers of an
exempted retailer who is so supplied.".
18 General powers in relation to Orders relating to
advanced metering infrastructure
After section 46E(2) of the Electricity Industry
Act 2000 insert—
"(2A) The provisions of an Order under
section 46D may be of general or limited
application and may differ according to
differences in time, place and circumstances.
(2B) An Order under section 46D may—
(a) include saving and transitional
provisions; and
(b) provide that the Commission is not
required to take specified actions or
make specified determinations under
the Order before the commencement of
section 5 of the National Electricity
(Victoria) Amendment Act 2007.".
__________________
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PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001
Division 1—Consumer safety net provisions
19 Definitions
In section 3 of the Gas Industry Act 2001 insert
the following definitions—
"AEMC means the Australian Energy Market
Commission established by section 5 of the
Australian Energy Market Commission
Establishment Act 2004 of South Australia;
domestic or small business customer means a
person, or a member of a class of persons, to
whom an Order under section 42(5) applies;
licensee standing offer means—
(a) the tariffs determined by a licensee
under section 42(1) and published in
the Government Gazette in accordance
with that subsection, as varied from
time to time by the licensee as provided
for under section 42(3); and
(b) the terms and conditions determined by
a licensee and approved by the
Commission under section 42(1) and
published in the Government Gazette in
accordance with that subsection, as
varied from time to time by the licensee
and approved by the Commission as
provided for under section 42(4);
MCE means the Ministerial Council on Energy
established on 8 June 2001, being the
Council of Ministers with primary carriage
of energy matters at a national level
comprising the Ministers representing the
Commonwealth, the States, the Australian
s. 19
See:
Act No.
31/2001.
Reprint No. 3
as at
11 October
2006
and
amending
Act Nos
61/2005,
35/2007,
55/2007 and
30/2008.
LawToday:
www.
legislation.
vic.gov.au
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Capital Territory and the Northern Territory,
acting in accordance with its own
procedures;
regulated tariff standing offer means a licensee
standing offer that is subject to an Order
under section 21 that is in force;
relevant published offer means the tariffs and
terms and conditions on which a specified
retailer sells gas to small retail customers
that are published in accordance with
section 43A;
specified circumstances, in section 43A, means
circumstances declared to be specified
circumstances by Order under
section 7A(1)(c);
specified retailer means a licensee declared to be
a specified gas retailer by Order under
section 7A(1)(b);
standing offer means—
(a) a licensee standing offer; or
(b) a regulated tariff standing offer;".
20 Declaration of classes of customers and retailers and
specified circumstances
(1) In section 7A(1)(b) of the Gas Industry Act
2001, for "section 43A." substitute
"section 43A;".
(2) After section 7A(1)(b) of the Gas Industry Act
2001 insert—
"(c) declare circumstances to be specified
circumstances for the purposes of
section 43A.".
(3) In section 7A(3) of the Gas Industry Act 2001,
for "this section" substitute "subsection (1)(a)".
s. 20
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(4) After section 7A(3) of the Gas Industry Act 2001
insert—
"(3A) An Order under subsection (1)(b) may
specify a licensee by reference to all or any
of the following—
(a) the number of small retail customers of
the licensee;
(b) the tariffs at, and terms and conditions
on, which the licensee sells gas to its
small retail customers;
(c) the distribution area of a gas
distribution company provided for in
the company's licence;
(d) any other specified factor relevant to
the sale of gas.
(3B) An Order under subsection (1)(c) may
declare circumstances to be specified
circumstances by reference to all or any of
the following—
(a) the number of small retail customers of
a specified retailer;
(b) the tariffs at, and terms and conditions
on, which a specified retailer sells gas
to its small retail customers;
(c) the distribution area of a gas
distribution company provided for in
the company's licence;
(d) any other specified factor relevant to
the sale of gas.".
s. 20
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21 Regulation of tariffs for prescribed customers
(1) After section 21(1) of the Gas Industry Act 2001
insert—
"(1A) The Governor in Council may only make an
Order under subsection (1) if under an MCE
directed retail competition review the
AEMC—
(a) concludes that competition in a market
for gas is not effective; and
(b) recommends, in accordance with the
MCE's written direction for that review,
that price controls on prices for retail
gas services be (as the case requires)
retained or reintroduced.".
(2) After section 21(2) of the Gas Industry Act 2001
insert—
"(2A) Without limiting the generality of
subsection (1), in determining the manner
tariffs for the sale of gas to prescribed
customers or a class of prescribed customers
are to be regulated, the Governor in Council
may have regard to the tariffs payable by the
prescribed customers or a class of prescribed
customers during the review period.".
(3) In section 21(6) of the Gas Industry Act 2001—
(a) in the definition of prescribed customer, for
"applies." substitute "applies;";
(b) insert the following definitions—
"MCE directed retail competition review
means an MCE directed review (within
the meaning of the National Gas
(Victoria) Law) under section 79(1)(e)
of that Law;
s. 21
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review period means the period—
(a) commencing on the day that the
direction of the MCE requiring an
MCE directed retail competition
review is published in the South
Australian Government Gazette
under section 79(3) of the
National Gas (Victoria) Law; and
(b) ending on the day before the day
the Order under subsection (1) is
made.".
(4) Section 21(7) of the Gas Industry Act 2001 is
repealed.
22 Offer to domestic or small business customers
(1) In the heading to section 42 of the Gas Industry
Act 2001, after "customers" insert "(licensee
standing offers)".
(2) In section 42(3) of the Gas Industry Act 2001,
for "The tariffs" substitute "Subject to
subsection (3A), the tariffs".
(3) After section 42(3) of the Gas Industry Act 2001
insert—
"(3A) A licensee must not vary tariffs under
subsection (3) that have been in effect for
less than 6 months.".
(4) In section 42(4) of the Gas Industry Act 2001,
for "2 months" substitute "one month".
(5) In section 42(8) of the Gas Industry Act 2001—
(a) in the definition of cooling-off period, for
"the contract;" substitute "the contract.";
(b) the definition of domestic or small business
customer is repealed.
s. 22
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(6) Section 42(9) of the Gas Industry Act 2001 is
repealed.
23 New sections 42A to 42E inserted
After section 42 of the Gas Industry Act 2001
insert—
"42A Licensee standing offer tariffs to be given
to Commission
Without limiting the generality of section 28,
the conditions to which a licence to sell gas
by retail, being a licence under which gas
may be sold to domestic or small business
customers, is subject, include a condition
requiring the licensee to, on the same day the
licensee publishes tariffs in accordance with
section 42—
(a) give a copy of those tariffs to the
Commission; and
(b) inform the Commission, in writing, of
the day those tariffs, terms and
conditions take effect.
42B Commission must publish on Internet
licensee standing offer tariffs
The Commission must publish on its Internet
site tariffs it receives under section 42A on
the day those tariffs take effect.
42C Internet publication and bill notification
of licensee standing offers
(1) Without limiting the generality of section 28,
the conditions to which a licence to sell gas
by retail, being a licence under which gas
may be sold to domestic or small business
customers, is subject, include a condition
requiring the licensee to—
s. 23
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(a) publish, in accordance with guidelines
issued under subsection (2), on the
licensee's Internet site details of
licensee standing offers that are in
effect; and
(b) notify, in writing, a domestic or small
business customer of the licensee
standing offer that is in effect and that
applies to gas sold to that customer in
or with the customer's first gas bill after
that licensee standing offer has taken
effect.
(2) The Commission must prepare and issue
guidelines for the purposes of this section
specifying—
(a) the manner of publication of details of
licensee standing offers that are in
effect, including the accessibility of
those licensee standing offers on a
licensee's Internet site; and
(b) the nature of the details to be published;
and
(c) any other matters that the Commission
considers relevant.
42D Required tariff information and licensee
contact information to be published in
newspaper
(1) Without limiting the generality of section 28,
the conditions to which a licence to sell gas
by retail, being a licence under which gas
may be sold to domestic or small business
customers, is subject, include a condition
requiring the licensee to, on the required day,
publish in a newspaper circulating generally
throughout Victoria—
s. 23
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(a) required tariff information; and
(b) the licensee's contact information.
(2) In this section—
licensee's contact information means all of
the following information—
(a) the licensee's telephone number;
(b) the licensee's fax number;
(c) the licensee's postal address;
(d) the Internet address of the
licensee's Internet site;
required day means the day the licensee
varies a tariff or tariffs for the supply
and sale of gas by notice published in
the Government Gazette in accordance
with section 42(3);
required tariff variation information
means—
(a) tariff variation information; and
(b) the date a tariff or tariffs varied in
accordance with section 42(3)
takes or take effect; and
(c) a description of the tariff or tariffs
referred to in paragraph (b); and
(d) the main reasons for the variation
of a tariff or tariffs referred to in
paragraph (b);
tariff variation information means—
(a) in the case of a single tariff for the
supply and sale of gas that is
varied in accordance with
section 42(3), the weighted tariff
variation relating to that tariff
s. 23
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determined in accordance with an
Order under section 42E;
(b) in the case where more than one
tariff for the supply and sale of
gas is varied in accordance with
section 42(3) at the same time in
accordance with that section, the
weighted tariff variation relating
to those tariffs determined in
accordance with an Order under
section 42E.
42E Order specifying method and variables to
be used to determine weighted tariff
variation
The Governor in Council, by Order
published in the Government Gazette, may
specify the method and variables to be used
to determine the weighted tariff variation for
the purposes of paragraphs (a) and (b) of the
definition of tariff variation information in
section 42D(2).".
24 Terms and conditions of contracts for sale of gas to
certain customers
Section 43(7) of the Gas Industry Act 2001 is
repealed.
25 Publication of terms and conditions of sale of gas
(relevant published offers)
(1) In the heading to section 43A of the Gas Industry
Act 2001—
(a) after "of" (where first occurring) insert
"tariffs,"; and
(b) after "gas" insert "(relevant published
offers)".
s. 24
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(2) For section 43A(1) of the Gas Industry Act 2001
substitute—
"(1) Without limiting the generality of section 28,
the conditions to which a licence to sell gas
by retail issued to a specified gas retailer is
subject include a condition requiring the
specified gas retailer in specified
circumstances—
(a) to publish on its Internet site, in
accordance with this section, details of
the tariffs and terms and conditions on
which that retailer sells gas to small
retail customers; and
(b) to, on the same day the specified gas
retailer publishes the details of the
tariffs, terms and conditions in
accordance with paragraph (a), give a
copy of those details to the
Commission.
(1A) The Commission must publish on its Internet
site the details of the tariffs, terms and
conditions it receives under subsection (1)(b)
as soon as practicable after receiving those
details.".
(3) In section 43A(2)(a) of the Gas Industry Act
2001, after "conditions" insert ", including the
accessibility of the details of those tariffs and
terms and conditions on a specified gas retailer's
Internet site".
(4) Section 43A(5) and section 43A(6) of the Gas
Industry Act 2001 are repealed.
26 Deemed contracts with former franchise customers
Section 44(3) of the Gas Industry Act 2001 is
repealed.
s. 26
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27 Deemed contracts for supply and sale for relevant
customers
Section 46(11) of the Gas Industry Act 2001 is
repealed.
28 New section 47 inserted
After section 46 of the Gas Industry Act 2001
insert—
"47 Commission must report to Minister on
gas supply offers
(1) The Commission must by the end of every
calendar year, and at other times the Minister
directs in writing, prepare and give to the
Minister a report that, for the reporting
period, compares and assesses—
(a) licensee standing offers, deemed
standing offers in effect during the
reporting period, and relevant published
offers and other offers to supply and
sell gas by retail that were available
during the reporting period;
(b) variations to licensee standing offers,
deemed standing offers, relevant
published offers and other offers to
supply and sell gas by retail during the
reporting period.
(2) A report under subsection (1)—
(a) may include information about any
trends in relation to variations to
licensee standing offers, deemed
standing offers, relevant published
offers and other offers to supply and
sell gas by retail over a period; and
(b) must also include any other information
that the Minister, in writing, requires to
be included.
s. 27
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(3) A period referred to in subsection (2)(a) may
be greater than the reporting period.
(4) The Commission must publish a report under
subsection (1) on its Internet site as soon as
practicable after giving it to the Minister.
(5) In this section—
deemed standing offer means the tariffs and
terms and conditions constituting a
deemed contract for the supply and sale
of gas under section 44 or section 46;
reporting period means the financial year
ending in the calendar year in which the
Commission must give its report to the
Minister.".
Division 2—Other amendments
29 Repeal of Tariff Order provision
Section 20A of the Gas Industry Act 2001 is
repealed.
30 Retail gas market rules
(1) In section 60(1) of the Gas Industry Act 2001,
after "market" (where secondly occurring) insert
"to facilitate the operation of a fully contestable
market for gas".
(2) After section 60(2) of the Gas Industry Act 2001
insert—
"(2A) Retail gas market rules may also include
rules relating to the resolution of disputes
under or in relation to those rules between
persons, including provisions—
(a) requiring the persons in dispute to
resolve the dispute in accordance with
the rules before seeking any other
s. 29
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remedy in relation to the dispute from a
court or otherwise;
(b) providing for the appointment of a
person, in accordance with the rules, to
manage and facilitate the resolution of
such disputes;
(c) providing for the appointment, by a
person referred to in paragraph (a), of
persons (including mediators and
arbitrators) to resolve such disputes;
(d) providing for the procedure for the
conduct and resolution of such
disputes;
(e) relating to the application and effect of
decisions of persons appointed to
resolve such disputes;
(f) providing for the reference, to a court,
of questions of law arising in respect of
the resolution of such disputes;
(g) conferring an immunity on, or limiting
the liability of, persons appointed to
resolve such disputes.".
31 Principles for retail gas market rules
In section 61(1) of the Gas Industry Act 2001,
for "this Division" substitute "section 65".
32 New section 62 substituted
For section 62 of the Gas Industry Act 2001
substitute—
"62 Retail gas market rules—gas transmission
system and gas distribution system
(1) The Governor in Council, by Order
published in the Government Gazette, may
make retail gas market rules in accordance
s. 31
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with this Division for the gas transmission
system and gas distribution system.
(2) Rules made under an Order under
subsection (1) come into operation on the
day the Order is published in the
Government Gazette or a later day that is
specified in the Order.
Note
See also section 237.".
33 Consequential amendment to reference to VENCorp
developed retail gas market rules
In section 63(1) of the Gas Industry Act 2001,
for "developed by VENCorp" substitute "made
by the Governor in Council by Order".
34 Consequential section cross-reference amendment
In section 64(b) of the Gas Industry Act 2001,
for "sections 62 and 63" substitute "section 63".
35 Approval of rules by Commission
In section 65(1) of the Gas Industry Act 2001,
for "this Division" substitute "section 63".
36 Commission directions to VENCorp in relation to
supplier of last resort trigger events
(1) In section 67A(1) of the Gas Industry Act 2001
omit "VENCorp" (where secondly occurring).
(2) In section 67A(2) of the Gas Industry Act 2001
omit "VENCorp" (where first occurring).
(3) In section 67A(3) of the Gas Industry Act 2001,
the definition of VENCorp retail market rules is
repealed.
s. 33
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(4) In section 67A(3) of the Gas Industry Act
2001—
(a) insert the following definition—
"retail gas market rules means retail gas
market rules made by Order under
section 62;";
(b) in the definition of trigger event, for "51A;"
substitute "51A.".
37 Costs of VENCorp
(1) In section 69(3) of the Gas Industry Act 2001,
for "Commission" substitute "AER".
(2) Section 69(4) of the Gas Industry Act 2001 is
repealed.
38 New section 237 inserted
After section 236 of the Gas Industry Act 2001
insert—
"237 Transitional provision—Retail gas market
rules developed by VENCorp
(1) On the commencement of section 32 of the
Energy Legislation Amendment (Retail
Competition and Other Matters) Act
2008, VENCorp retail gas market rules that
are in effect immediately before that
commencement are to be taken to be retail
gas market rules made by the Governor in
Council by Order under section 62.
(2) In this section—
VENCorp retail gas market rules means
rules—
(a) developed by VENCorp under
section 62 (as in force
immediately before the
commencement of section 32 of
s. 37
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the Energy Legislation
Amendment (Retail
Competition and Other
Matters) Act 2008); and
(b) approved by the Commission
under section 65 (as in force
immediately before the
commencement of section 35 of
the Energy Legislation
Amendment (Retail
Competition and Other
Matters) Act 2008).".
__________________
s. 38
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Part 4—Amendment of Other Energy Legislation
Energy Legislation Amendment (Retail Competition and Other Matters) Act
2008
No. 59 of 2008
38
PART 4—AMENDMENT OF OTHER ENERGY
LEGISLATION
Division 1—Amendment of Gas Safety Act 1997
39 Definitions
In section 3(1) of the Gas Safety Act 1997, in the
definition of standard gas installation, for
paragraph (b)(iv) substitute—
"(iv) which has a maximum metering pressure that
is less than the prescribed maximum
metering pressure or a maximum operating
pressure that is less than the prescribed
maximum operating pressure; and
(v) which has a number of gas supply points that
is less than the prescribed number of gas
supply points;".
40 Regulations
(1) After section 118(1)(r) of the Gas Safety Act
1997 insert—
"(ra) requiring the keeping of records in relation to
the service, maintenance, repair or
modification of a complex gas installation or
a Type B appliance;".
(2) In section 118(2)(c)(ii) of the Gas Safety Act
1997, after "as" insert "published or".
s. 39
See:
Act No.
99/1997.
Reprint No. 3
as at
1 May 2008.
LawToday:
www.
legislation.
vic.gov.au
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Division 2—Amendment of Electricity Safety Act 1998
41 Certificates of approval, acceptance or compliance
(1) Section 54(b) of the Electricity Safety Act 1998
is repealed.
(2) Section 56 of the Electricity Safety Act 1998 is
repealed.
(3) In section 153(c) of the Electricity Safety Act
1998 omit "the acceptance of electrical
equipment,".
(4) In section 153(c)(i), (ii), (iii), (iv) and (vii) of the
Electricity Safety Act 1998, for "approval,
acceptance" substitute "approval".
(5) In section 153(c)(v) of the Electricity Safety Act
1998 omit "or acceptance".
(6) For section 153(c)(vi) of the Electricity Safety
Act 1998 substitute—
"(vi) the renewal, transfer and duration of
certificates of approval or compliance;".
(7) In section 153(e)(i) and (ii) of the Electricity
Safety Act 1998 omit "or acceptance".
(8) For section 153(e)(iii) and (iv) of the Electricity
Safety Act 1998 substitute—
"(iii) applications for certificates of approval or
compliance, or the renewal, modification or
transfer of certificates of approval or
compliance.".
42 Incorporation by reference by regulations
In section 157(2)(c)(ii) of the Electricity Safety
Act 1998, after "as" insert "published or".
s. 41
See:
Act No.
25/1998.
Reprint No. 5
as at
21 August
2008
and
amending
Act Nos
61/2007 and
25/2008.
LawToday:
www.
legislation.
vic.gov.au
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Division 3—Amendment of National Electricity (Victoria)
Amendment Act 2007
43 ESC AMI determination processes not completed
before regulatory handover to AER
In section 5 of the National Electricity (Victoria)
Amendment Act 2007, after proposed section 27
of the National Electricity (Victoria) Act 2005
insert—
"27A AER determinations under the AMI
Order
(1) Without limiting this Part, on and from the
transitional period commencement date, the
AER must take action under the AMI Order
as if it were the ESC, including the making
of a determination under the AMI Order.
(2) For the purposes of this section—
(a) any Pricing Proposal (as defined in the
AMI Order) made before the
transitional period commencement date,
and any information provided to the
ESC by a distributor (as defined in the
AMI Order) in connection with, or for
the purposes of, a Pricing Proposal
must be taken to be provided to the
AER; and
(b) any Application (as defined in the AMI
Order) made before the transitional
period commencement date, and any
information provided to the ESC by a
distributor in connection with or for the
purposes of an Application must be
taken to be made or provided to the
AER; and
s. 43
See:
Act No.
66/2007.
Statute Book:
www.
legislation.
vic.gov.au
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(c) all actions taken, or things done, by the
ESC before the transitional period
commencement date in respect of a
Pricing Proposal or an Application
must be taken to be actions taken, or
things done, by the AER; and
(d) information provided to the ESC by a
distributor before the transitional period
commencement date in connection
with, or for the purposes of, a Pricing
Proposal or an Application may be used
and relied on by it and the AER in
connection with, or for the purposes of,
any determination that the AER must
make under the AMI Order (whether or
not the determination is a determination
with respect to the Pricing Proposal or
Application).
(3) Subsection (2)(c) does not limit the actions
that the AER may take or the things that the
AER may do for the purpose of making a
determination under the AMI Order.
(4) Subsection (2)(d) does not limit the
information that—
(a) the AER may request from a distributor
in accordance with the AMI Order for
the purpose of making a determination
under the AMI Order; or
(b) a distributor may be required to provide
to the AER under the AMI Order for
the purpose of enabling the AER to
make a determination under the AMI
Order.".
s. 43
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44 Appeals against certain decisions or actions of the
AER
(1) In section 5 of the National Electricity (Victoria)
Amendment Act 2007, in proposed section
29(1)(c)(ii)(B) of the National Electricity
(Victoria) Act 2005, for "Victoria." substitute
"Victoria; or".
(2) In section 5 of the National Electricity (Victoria)
Amendment Act 2007, after proposed section
29(1)(c) of the National Electricity (Victoria)
Act 2005 insert—
"(d) a decision or determination under the AMI
Order.".
Division 4—Amendment of National Gas (Victoria) Act 2008
45 Transitioned Victorian distribution RIOs
(1) For section 37(2)(d) of the National Gas
(Victoria) Act 2008 substitute—
"(d) subject to section 38, prepare or serve a
regulatory information notice that is
inconsistent with the transitioned Victorian
distribution RIO (as the transitioned
Victorian distribution RIO applies to a
Victorian transitioned access arrangement
before the first NGL revisions day).".
(2) In section 37(3) of the National Gas (Victoria)
Act 2008, for "day revisions to a Victorian
transitioned access arrangement that relates to
pipelines services provided by that service
provider and that are first approved or made in
accordance with the National Gas (Victoria) Law
and the National Gas Rules after the NGL
commencement day take effect" substitute "first
NGL revisions day".
s. 44
See:
Act No.
30/2008.
LawToday:
www.
legislation.
vic.gov.au
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Part 4—Amendment of Other Energy Legislation
Energy Legislation Amendment (Retail Competition and Other Matters) Act
2008
No. 59 of 2008
43
(3) For section 37(4) of the National Gas (Victoria)
Act 2008 substitute—
"(4) In this section—
first NGL revisions day means the day
revisions to a Victorian transitioned
access arrangement that relate to
pipelines services provided by that
service provider, first approved or made
in accordance with the National Gas
(Victoria) Law and the National Gas
Rules after the NGL commencement
day, take effect;
Victorian transitioned access arrangement
means a revised gas distribution access
arrangement that is deemed to be an
AER approved full access arrangement
under section 25.".
46 Matters to be taken into account when AER makes
or prepares regulatory information instruments
After section 38(3) of the National Gas
(Victoria) Act 2008 insert—
"(4) This section expires on 1 January 2018.".
__________________
s. 46
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Part 5—Repeal of Amending Act
Energy Legislation Amendment (Retail Competition and Other Matters) Act
2008
No. 59 of 2008
44
PART 5—REPEAL OF AMENDING ACT
47 Repeal of Act
This Act is repealed on 1 July 2011.
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).
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s. 47
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Energy Legislation Amendment (Retail Competition and Other Matters) Act
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No. 59 of 2008
45
ENDNOTES
† Minister's second reading speech—
Legislative Assembly: 12 September 2008
Legislative Council: 9 October 2008
The long title for the Bill for this Act was "A Bill for an Act to amend the
Electricity Industry Act 2000, the Gas Industry Act 2001, the Gas
Safety Act 1997, the Electricity Safety Act 1998, the National
Electricity (Victoria) Amendment Act 2007, the National Gas
(Victoria) Act 2008 and for other purposes."
Endnotes
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