Energy Legislation (Hardship, Metering and Other Matters) Act 2006

i Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 2 PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 3 3. Division 6 of Part 2 substituted 3 Division 6—Hardship Policies 3 41. Definitions 3 42. Objects 3 43. Financial hardship policies 3 44. Commission may develop guidelines 4 45. Commission may approve financial hardship policy 5 46. Minister may approve financial hardship policy 6 46A. Licensee not to disconnect if there is compliance with financial hardship policy 6 4. New Division 6A of Part 2 inserted 7 Division 6A—Advanced Metering Infrastructure 7 46B. Definitions 7 46C. Licence condition requiring compliance with Order 7 46D. Orders in relation to advanced metering infrastructure 8 46E. General powers in relation to Orders 9 PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001 11 5. New Division 4A of Part 3 inserted 11 Division 4A—Hardship Policies 11 48E. Definitions 11 48F. Objects 11 48G. Financial hardship policies 11 48H. Commission may develop guidelines 12 -- 1 of 19 -- Section Page ii 48I. Commission may approve financial hardship policy 13 48J. Minister may approve financial hardship policy 14 48K. Licensee not to disconnect if there is compliance with financial hardship policy 14 PART 4—AMENDMENT OF OTHER ACTS 16 6. New section 132A inserted into Pipelines Act 2005 16 132A. Funding 16 7. Energy Safe Victoria Act 2005—General Account 16 ═══════════════ ENDNOTES 17 -- 2 of 19 -- 1 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 † [Assented to 29 August 2006] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purpose The purpose of this Act is— (a) to amend the Electricity Industry Act 2000 to provide for the introduction and implementation of financial hardship policies and to provide for the regulation of advanced metering infrastructure; and Victoria No. 60 of 2006 -- 3 of 19 -- Part 1—Preliminary Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 2 (b) to amend the Gas Industry Act 2001 to provide for the introduction and implementation of financial hardship policies; and (c) to amend the Pipelines Act 2005 to require licensees under that Act to pay an annual amount to Energy Safe Victoria, and to make a consequential amendment to the Energy Safe Victoria Act 2005. 2. Commencement (1) This Act, other than Part 4, comes into operation on the day after the day on which it receives the Royal Assent. (2) Subject to sub-section (3), Part 4 comes into operation on a day to be proclaimed. (3) If Part 4 does not come into operation before 1 July 2007, it comes into operation on that day. __________________ s. 2 -- 4 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 3 PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 3. Division 6 of Part 2 substituted For Division 6 of Part 2 of the Electricity Industry Act 2000 substitute— 'Division 6—Hardship Policies 41. Definitions In this Division— "approved financial hardship policy" means a policy approved by the Commission under section 45 or the Minister under section 46; "domestic customer" means a person supplied with electricity for use for domestic purposes. 42. Objects The objects of this Division are— (a) to recognise that financial hardship may be suffered by domestic customers; and (b) to promote best practice in electricity service delivery to facilitate continuity of electricity supply to domestic customers experiencing financial hardship. 43. Financial hardship policies (1) A licence to sell electricity is deemed to include a condition requiring the licensee to prepare a policy complying with this section to deal with domestic customers experiencing financial hardship and to submit it for approval to— See: Act No. 68/2000. Reprint No. 3 as at 14 July 2005 and amending Act Nos 39/2005, 65/2005, 9/2006, 31/2006 and 32/2006. LawToday: www.dms. dpc.vic. gov.au s. 3 -- 5 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 4 (a) the Minister, if required to do so under section 46, within the period specified in the notice under that section; and (b) the Commission by 31 March 2007. (2) A financial hardship policy submitted under sub-section (1) must include— (a) flexible payment options for payment of electricity bills; and (b) provision for the auditing of a domestic customer's electricity usage (whether wholly or partly at the expense of the licensee); and (c) flexible options for the purchase or supply of replacement electrical equipment designed for domestic use from the licensee or a third party nominated by the licensee; and (d) processes for the early response by both licensees and domestic customers to electricity bill payment difficulties. (3) A licence to sell electricity is deemed to include a condition requiring the licensee to implement an approved financial hardship policy by the date specified in the approved financial hardship policy. (4) A term or condition in a contract for the supply or sale of electricity by a licensee to a domestic customer is void to the extent that it is inconsistent with the approved financial hardship policy of the licensee. 44. Commission may develop guidelines (1) The Commission may prepare and issue guidelines in relation to the development and implementation by licensees of financial hardship policies. s. 3 -- 6 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 5 (2) The Commission may amend any guidelines issued under this section. (3) The Commission must publish each guideline issued under this section and each amendment of a guideline. 45. Commission may approve financial hardship policy (1) The Commission must consider a financial hardship policy submitted by a licensee in accordance with section 43 and may approve the policy if it considers it appropriate. (2) In deciding whether to approve a financial hardship policy the Commission must have regard to— (a) the essential nature of the electricity supply; and (b) community expectations that licensees will work with domestic customers to manage customers' present and future electricity usage and associated financial obligations; and (c) community expectations that the electricity supply will not be disconnected solely because of a customer's inability to pay for the electricity supply; and (d) the principle that the electricity supply to premises should only be disconnected as a last resort; and (e) the principle that there should be equitable access to financial hardship policies and that those policies should be transparent and applied consistently. s. 3 -- 7 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 6 (3) The Commission must not approve a financial hardship policy that does not include the provisions set out in section 43(2). (4) The Commission may, at the request of the licensee, approve a variation or replacement of an approved financial hardship policy. 46. Minister may approve financial hardship policy (1) The Minister may, by notice in writing, require a licensee to submit a financial hardship policy to the Minister for approval within the period specified in the notice. (2) The Minister may approve a financial hardship policy of a licensee if the Minister considers it appropriate. (3) In considering a financial hardship policy, the Minister may have regard to the matters set out in section 45(2). (4) A licensee's financial hardship policy approved by the Minister remains in force until a policy is approved by the Commission under section 45 in relation to that licensee. 46A. Licensee not to disconnect if there is compliance with financial hardship policy (1) A licence to sell electricity is deemed to include a condition that the licensee must not disconnect the supply of electricity to a domestic customer if that customer— (a) has entered into an agreement with the licensee under the terms of an approved financial hardship policy of the licensee; and s. 3 -- 8 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 7 (b) is complying with the terms and conditions of the agreement. (2) A term or condition in a contract for the supply or sale of electricity by a licensee to a domestic customer is void to the extent that it is inconsistent with a condition set out in sub-section (1).'. 4. New Division 6A of Part 2 inserted After Division 6 of Part 2 of the Electricity Industry Act 2000 insert— 'Division 6A—Advanced Metering Infrastructure 46B. Definitions In this Division— "advanced metering infrastructure" means infrastructure associated with the installation and operation of electricity metering and communications, including interval meters designed to transmit data to, and receive data from, a remote locality; "relevant licensee" means a licensee determined in accordance with an Order under section 46D to be a relevant licensee. 46C. Licence condition requiring compliance with Order A relevant licensee's licence is deemed to include a condition requiring the licensee to comply with an Order under section 46D. s. 4 -- 9 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 8 46D. Orders in relation to advanced metering infrastructure The Governor in Council may by Order published in the Government Gazette— (a) specify a process for determining who is to be a relevant licensee; (b) specify the minimum functionality required of advanced metering infrastructure supplied or installed by or on behalf of a relevant licensee and the associated services and systems required for its support; (c) specify minimum standards of performance and service that must be met by a relevant licensee in respect of the provision, installation, maintenance and operation of advanced metering infrastructure and associated services and systems; (d) require trials of technologies to be conducted by or on behalf of a relevant licensee to identify the most cost- effective methods for the delivery of advanced metering infrastructure and associated services and systems and specify the nature and timing of those trials; (e) determine the minimum number of customers or supply points (or both) in respect of which a relevant licensee is required to supply or install advanced metering infrastructure and associated services and systems; (f) determine the date or dates by which, and the location at which, the advanced metering infrastructure and associated s. 4 -- 10 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 9 services and systems must be supplied or installed and the date or dates by which the infrastructure, services and systems must become operational; (g) if a retailer is a relevant licensee, specify the responsibilities of the licensee on being notified of a customer's election to transfer to another retailer, to ensure there is no cost impediment or other impediment to that transfer arising from the licensee's provision of advanced metering infrastructure; (h) provide for the setting and regulation of the prices, fees and charges that a relevant licensee who is a distributor may charge for or in connection with the provision, installation, maintenance and operation of advanced metering infrastructure and associated services and systems. 46E. General powers in relation to Orders (1) An Order of the Governor in Council under section 46D may be made so as to apply, adopt or incorporate wholly or partially or as amended by the Order, the provisions of any document, standard, rule, specification or method formulated, issued, prescribed or published by any authority or body whether— (a) as formulated, issued, prescribed or published at the time the Order is made or at any time before the Order is made; or (b) as amended from time to time. s. 4 -- 11 of 19 -- Part 2—Amendment of Electricity Industry Act 2000 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 10 (2) An Order of the Governor in Council under section 46D may— (a) confer powers and functions on, and leave any matter to be decided by, the Commission; and (b) without limiting paragraph (a), direct the Commission to make amendments to any instrument made by the Commission to give effect to any matter specified in an Order made under section 46D. (3) An Order of the Governor in Council under section 46D has effect as from the day specified in the Order for the period specified in the Order. (4) An Order of the Governor in Council under section 46D has effect according to its tenor despite anything to the contrary in any agreement or contract.'. __________________ s. 4 -- 12 of 19 -- Part 3—Amendment of Gas Industry Act 2001 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 11 PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001 5. New Division 4A of Part 3 inserted After Division 4 of Part 3 of the Gas Industry Act 2001 insert— 'Division 4A—Hardship Policies 48E. Definitions In this Division— "approved financial hardship policy" means a policy approved by the Commission under section 48I or the Minister under section 48J; "domestic customer" means a person supplied with gas for use for domestic purposes. 48F. Objects The objects of this Division are— (a) to recognise that financial hardship may be suffered by domestic customers; and (b) to promote best practice in gas service delivery to facilitate continuity of gas supply to domestic customers experiencing financial hardship. 48G. Financial hardship policies (1) A licence to sell gas is deemed to include a condition requiring the licensee to prepare a policy complying with this section to deal with domestic customers experiencing financial hardship and to submit it for approval to— See: Act No. 31/2001. Reprint No. 2 as at 1 March 2005 and amending Act Nos 25/2004, 108/2004, 33/2005, 39/2005, 61/2005, 9/2006, 29/2006, 31/2006 and 32/2006. LawToday: www.dms. dpc.vic. gov.au s. 5 -- 13 of 19 -- Part 3—Amendment of Gas Industry Act 2001 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 12 (a) the Minister, if required to do so under section 48J, within the period specified in the notice under that section; and (b) the Commission by 31 March 2007. (2) A financial hardship policy submitted under sub-section (1) must include— (a) flexible payment options for payment of gas bills; and (b) provision for the auditing of a domestic customer's gas usage (whether wholly or partly at the expense of the licensee); and (c) flexible options for the purchase or supply of replacement gas appliances designed for domestic use from the licensee or a third party nominated by the licensee; and (d) processes for the early response by both licensees and domestic customers to gas bill payment difficulties. (3) A licence to sell gas is deemed to include a condition requiring the licensee to implement an approved financial hardship policy by the date specified in the approved financial hardship policy. (4) A term or condition in a contract for the supply or sale of gas by a licensee to a domestic customer is void to the extent that it is inconsistent with the approved financial hardship policy of the licensee. 48H. Commission may develop guidelines (1) The Commission may prepare and issue guidelines in relation to the development and implementation by licensees of financial hardship policies. s. 5 -- 14 of 19 -- Part 3—Amendment of Gas Industry Act 2001 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 13 (2) The Commission may amend any guidelines issued under this section. (3) The Commission must publish each guideline issued under this section and each amendment of a guideline. 48I. Commission may approve financial hardship policy (1) The Commission must consider a financial hardship policy submitted by a licensee in accordance with section 48G and may approve the policy if it considers it appropriate. (2) In deciding whether to approve a financial hardship policy the Commission must have regard to— (a) the essential nature of the gas supply; and (b) community expectations that licensees will work with domestic customers to manage customers' present and future gas usage and associated financial obligations; and (c) community expectations that the gas supply will not be disconnected solely because of a customer's inability to pay for the gas supply; and (d) the principle that the gas supply to premises should only be disconnected as a last resort; and (e) the principle that there should be equitable access to financial hardship policies and that those policies should be transparent and applied consistently. s. 5 -- 15 of 19 -- Part 3—Amendment of Gas Industry Act 2001 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 14 (3) The Commission must not approve a financial hardship policy that does not include the provisions set out in section 48G(2). (4) The Commission may, at the request of the licensee, approve a variation or replacement of an approved financial hardship policy. 48J. Minister may approve financial hardship policy (1) The Minister may, by notice in writing, require a licensee to submit a financial hardship policy to the Minister for approval within the period specified in the notice. (2) The Minister may approve a financial hardship policy of a licensee if the Minister considers it appropriate. (3) In considering a financial hardship policy, the Minister may have regard to the matters set out in section 48I(2). (4) A licensee's financial hardship policy approved by the Minister remains in force until a policy is approved by the Commission under section 48I in relation to that licensee. 48K. Licensee not to disconnect if there is compliance with financial hardship policy (1) A licence to sell gas is deemed to include a condition that the licensee must not disconnect the supply of gas to a domestic customer if that customer— (a) has entered into an agreement with the licensee under the terms of an approved financial hardship policy of the licensee; and s. 5 -- 16 of 19 -- Part 3—Amendment of Gas Industry Act 2001 Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 15 (b) is complying with the terms and conditions of the agreement. (2) A term or condition in a contract for the supply or sale of gas by a licensee to a domestic customer is void to the extent that it is inconsistent with a condition set out in sub-section (1).'. __________________ s. 5 -- 17 of 19 -- Part 4—Amendment of Other Acts Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 16 PART 4—AMENDMENT OF OTHER ACTS 6. New section 132A inserted into Pipelines Act 2005 After section 132 of the Pipelines Act 2005 insert— "132A. Funding A licensee must pay to Energy Safe Victoria at such time or times as the Minister determines such annual amount (if any) as the Minister determines to be payable by that licensee in respect of the reasonable costs and expenses of Energy Safe Victoria.". 7. Energy Safe Victoria Act 2005—General Account In section 24(2)(a) of the Energy Safe Victoria Act 2005, after "1997" insert "or section 132A of the Pipelines Act 2005". ═══════════════ See: Act No. 61/2005 and amending Act No. 29/2006. LawToday: www.dms. dpc.vic. gov.au s. 6 See: Act No. 39/2005. LawToday: www.dms. dpc.vic. gov.au -- 18 of 19 -- Energy Legislation (Hardship, Metering and Other Matters) Act 2006 Act No. 60/2006 17 ENDNOTES † Minister's second reading speech— Legislative Assembly: 19 July 2006 Legislative Council: 9 August 2006 The long title for the Bill for this Act was "to amend the Electricity Industry Act 2000, the Energy Safe Victoria Act 2005, the Gas Industry Act 2001 and the Pipelines Act 2005 and for other purposes." Endnotes -- 19 of 19 --