Energy Legislation (Miscellaneous Amendments) Act 2001

i Energy Legislation (Miscellaneous Amendments) Act 2001 Act No. 85/2001 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 1 PART 2—ELECTRICITY INDUSTRY ACT 2000 3 3. New section 7A inserted 3 7A. Application of the Office of the Regulator-General Act 1994 3 4. Repeal of certain provisions referring to Office of the Regulator-General Act 1994 3 5. Consequential amendment 3 6. Supplier of last resort 3 7. New section 39 substituted and section 40 repealed 4 39. Deemed contracts for supply and sale for relevant customers 4 8. Prohibited interests 8 9. Amendment of section 7A to change Act references 8 PART 3—GAS INDUSTRY ACT 2001 9 10. Consequential amendment 9 11. Supplier of last resort 9 12. New section 46 substituted and section 47 repealed 9 46. Deemed contracts for supply and sale for relevant customers 9 13. Approval of rules by ORG 13 14. Cost recovery 13 15. Provision by VENCorp of certain services outside Victoria 14 16. Amendment of reference to ORG 15 17. Correction of minor errors 15 ═══════════════ ENDNOTES 16 -- 1 of 17 -- 1 Energy Legislation (Miscellaneous Amendments) Act 2001 † [Assented to 11 December 2001] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purpose The purpose of this Act is to make miscellaneous amendments to the Electricity Industry Act 2000 and the Gas Industry Act 2001. 2. Commencement Victoria No. 85 of 2001 -- 2 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 2 (1) Sections 1, 3, 4, 6, 8, 11, 13, 14, 15, 17 and this section come into operation on the day after the day on which this Act receives the Royal Assent. (2) Sections 5, 7, 9 and 16 come into operation on 1 January 2002. (3) Subject to sub-section (4), the remaining provisions of this Act come into operation on a day to be proclaimed, not being a day before 1 January 2002. (4) If a provision of this Act does not come into operation before 31 December 2002, it comes into operation on that day. _______________ s. 2 -- 3 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 3 PART 2—ELECTRICITY INDUSTRY ACT 2000 3. New section 7A inserted After section 7 of the Electricity Industry Act 2000 insert— "7A. Application of the Office of the Regulator- General Act 1994 For the purposes of the Office of the Regulator-General Act 1994— (a) this Act is relevant legislation; and (b) the electricity industry is a regulated industry.". 4. Repeal of certain provisions referring to Office of the Regulator-General Act 1994 (1) Sections 9, 67 and 79C of the Electricity Industry Act 2000 are repealed. (2) In section 12(1) of the Electricity Industry Act 2000, paragraph (a) is repealed. 5. Consequential amendment In section 21(k) of the Electricity Industry Act 2000, for "sections 39 and 40" substitute "section 39". 6. Supplier of last resort After section 27(10) of the Electricity Industry Act 2000 insert— "(10A) The terms and conditions of a requirement referred to in sub-section (1) may include a condition setting out circumstances in which a licensee must continue to supply or sell electricity to a customer to whom the licensee supplies or sells electricity under an obligation under sub-section (5) after that See: Act No. 68/2000 and amending Act Nos 13/2001, 32/2001 and 44/2001. LawToday: www.dms. dpc.vic. gov.au s. 3 -- 4 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 4 obligation comes to an end in accordance with sub-section (5A)(a). (10B) A condition referred to in sub-section (10A) must provide for the tariff or tariffs and the terms and conditions for the continued supply or sale of electricity to be determined by the licensee.". 7. New section 39 substituted and section 40 repealed For sections 39 and 40 of the Electricity Industry Act 2000 substitute— '39. Deemed contracts for supply and sale for relevant customers (1) If a relevant customer commences to take supply of electricity at premises from the relevant licensee without having entered into a supply and sale contract with that licensee, there is deemed, on the commencement of that supply, to be a contract between that licensee and that customer for the supply and sale of electricity— (a) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract under section 37; and (b) on the conditions determined and provided for by the Commission under sub-section (5). (2) If a relevant customer— (a) commences to take supply of electricity at premises under a supply and sale contract with the relevant licensee; and (b) that customer cancels the supply and sale contract within the cooling-off period relating to the contract; and s. 7 -- 5 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 5 (c) that customer continues to take electricity from that licensee without entering into a further supply and sale contract with that licensee— there is deemed, on the cancellation of the supply and sale contract, to be a contract between that licensee and that customer for the supply and sale of electricity— (d) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract under section 37; and (e) on the conditions determined and provided for by the Commission under sub-section (5). (3) A deemed contract under sub-section (2) is deemed to commence on the commencement of supply referred to in sub-section (2)(a). (4) If a supply and sale contract referred to in sub-section (2)(a) is— (a) a contact sales agreement within the meaning of the Fair Trading Act 1999, sections 65 to 67 of that Act do not apply on the cancellation of that contract; (b) a non-contact sales agreement within the meaning of the Fair Trading Act 1999, sections 73 to 75 of that Act do not apply on the cancellation of that contract. (5) Without limiting the generality of section 20, the Commission may determine, and provide for in the licence of a licensee, conditions setting out— s. 7 -- 6 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 6 (a) circumstances in which a licensee must continue to supply or sell electricity to a customer to whom the licensee supplies or sells electricity under a deemed contract under this section after that contract comes to an end in accordance with sub-section (7)(d) or (e); and (b) events on the happening of which a deemed contract under this section may come to an end. (6) A condition referred to in sub-section (5)(a) must provide for the tariff or tariffs and the terms and conditions for the continued supply or sale of electricity to be determined by the licensee. (7) A deemed contract under this section comes to an end— (a) if the contract is terminated; or (b) if the customer enters into a new contract for the purchase of electricity from the licensee in respect of the same premises, on the date of taking effect of that new contract; or (c) if the customer transfers to become the customer of another licensee; or (d) at the end of 180 days after the day on which the deemed contract commences; or (e) on the happening of an event determined and provided for by the Commission under sub-section (5)(b)— whichever occurs first. s. 7 -- 7 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 7 (8) Sub-section (1) does not apply where the relevant customer referred to in that sub- section commences to take the supply of electricity by fraudulent or illegal means. (9) Sub-section (2) does not apply where the relevant customer referred to in that sub- section takes the supply of electricity by fraudulent or illegal means after the cancellation of the supply and sale contract referred to in sub-section (2)(a). (10) In this section— "cooling-off period" means the period within which a relevant customer is entitled under a supply and sale contract or section 63 or 71 of the Fair Trading Act 1999 to cancel the contract; "relevant customer" has the same meaning as in section 36; "relevant licensee", in relation to premises, means the licensee who is responsible for the electricity supplied at those premises for the purposes of settlement of the wholesale electricity market; "supply and sale contract" means a contract for the supply or sale of electricity, whether oral or in writing, or partly oral and partly in writing. (11) This section expires on 31 December 2003.'. s. 7 -- 8 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 8 8. Prohibited interests (1) In section 68(2) of the Electricity Industry Act 2000, for "and (8A)" substitute ", (8A) and (8B)". (2) After section 68(8A) of the Electricity Industry Act 2000 insert— "(8B) If sub-section (8A) applies in respect of an interest of a person in a generation company, the generation company does not hold a prohibited interest within the meaning of sub-section (2) as a result of having a controlling interest or a substantial interest in another licensee if that controlling interest or substantial interest arises by reason only that the first-mentioned person has a relevant interest in shares in that other licensee.". 9. Amendment of section 7A to change Act references In section 7A of the Electricity Industry Act 2000, for "Office of the Regulator-General Act 1994" (wherever occurring) substitute "Essential Services Commission Act 2001". _______________ s. 8 -- 9 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 9 PART 3—GAS INDUSTRY ACT 2001 10. Consequential amendment In section 29(e) of the Gas Industry Act 2001, for "sections 46 and 47" substitute "section 46". 11. Supplier of last resort After section 34(11) of the Gas Industry Act 2001 insert— "(11A) The terms and conditions of a requirement referred to in sub-section (1) may include a condition setting out circumstances in which a licensee must continue to supply or sell gas to a customer to whom the licensee supplies or sells gas under an obligation under sub- section (5) after that obligation comes to an end in accordance with sub-section (6)(a). (11B) A condition referred to in sub-section (11A) must provide for the tariff or tariffs and the terms and conditions for the continued supply or sale of gas to be determined by the licensee.". 12. New section 46 substituted and section 47 repealed For sections 46 and 47 of the Gas Industry Act 2001 substitute— '46. Deemed contracts for supply and sale for relevant customers (1) If a relevant customer commences to take supply of gas at premises from the relevant licensee without having entered into a supply and sale contract with that licensee, there is See: Act No. 31/2001 and amending Act No. 44/2001. LawToday: www.dms. dpc.vic. gov.au s. 10 -- 10 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 10 deemed, on the commencement of that supply, to be a contract between that licensee and that person for the supply and sale of gas— (a) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract under section 44; and (b) on the conditions determined and provided for by the Commission under sub-section (5). (2) If a relevant customer— (a) commences to take supply of gas at premises under a supply and sale contract with the relevant licensee; and (b) that customer cancels the supply and sale contract within the cooling-off period relating to the contract; and (c) that customer continues to take gas from that licensee without entering into a further supply and sale contract with that licensee— there is deemed, on the cancellation of the supply and sale contract, to be a contract between that licensee and that customer for the supply and sale of gas— (d) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract under section 44; and (e) on the conditions determined and provided for by the Commission under sub-section (5). s. 12 -- 11 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 11 (3) A deemed contract under sub-section (2) is deemed to commence on the commencement of supply referred to in sub-section (2)(a). (4) If a supply and sale contract referred to in sub-section (2)(a) is— (a) a contact sales agreement within the meaning of the Fair Trading Act 1999, sections 65 to 67 of that Act do not apply on the cancellation of that contract; (b) a non-contact sales agreement within the meaning of the Fair Trading Act 1999, sections 73 to 75 of that Act do not apply on the cancellation of that contract. (5) Without limiting the generality of section 28, the Commission may determine, and provide for in the licence of a licensee, conditions setting out— (a) circumstances in which a licensee must continue to supply or sell gas to a customer to whom the licensee supplies or sells gas under a deemed contract under this section after that contract comes to an end in accordance with sub-section (7)(d) or (e); and (b) events on the happening of which a deemed contract under this section may come to an end. (6) A condition referred to in sub-section (5)(a) must provide for the tariff or tariffs and the terms and conditions for the continued supply or sale of gas to be determined by the licensee. s. 12 -- 12 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 12 (7) A deemed contract under this section comes to an end— (a) if the contract is terminated; or (b) if the customer enters into a new contract for the purchase of gas from the licensee in respect of the same premises, on the date of taking effect of that new contract; or (c) if the customer transfers to become the customer of another licensee; or (d) at the end of 120 days after the day on which the deemed contract commences; or (e) on the happening of an event determined and provided for by the Commission under sub-section (5)(b)— whichever occurs first. (8) Sub-section (1) does not apply where the relevant customer referred to in that sub- section commences to take the supply of gas by fraudulent or illegal means. (9) Sub-section (2) does not apply where the relevant customer referred to in that sub- section takes the supply of gas by fraudulent or illegal means after the cancellation of the supply and sale contract referred to in sub- section (2)(a). (10) In this section— "cooling-off period" means the period within which a relevant customer is entitled under a supply and sale contract or section 63 or 71 of the Fair Trading Act 1999 to cancel the contract; s. 12 -- 13 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 13 "relevant customer" has the same meaning as in section 43; "relevant licensee", in relation to premises, means the licensee last responsible for the supply and sale of gas to those premises; "supply and sale contract" means a contract for the supply or sale of gas, whether oral or in writing, or partly oral and partly in writing. (11) This section expires on 31 August 2004.'. 13. Approval of rules by ORG In section 65 of the Gas Industry Act 2001, for sub-section (1) substitute— "(1) ORG, in respect of any retail gas market rules submitted to it under this Division, may determine to— (a) approve the rules; or (b) approve the rules subject to changes; or (c) not approve the rules.". 14. Cost recovery (1) In section 68(1)(a) of the Gas Industry Act 2001, after "in connection with" insert "the costs of, or in relation to,". (2) In section 68 of the Gas Industry Act 2001, for sub-section (2) substitute— "(2) An Order under sub-section (1) may— (a) confer powers and functions on, and leave any matter to be determined by, ORG; and (b) without limiting paragraph (a), direct ORG to make a determination in s. 13 -- 14 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 14 respect of such factors and matters, or in accordance with such procedures, matters or bases, as are specified in the Order, or both. (3) ORG, under this section, has— (a) the powers and functions conferred on it under an Order under sub-section (1); and (b) the power to make any determination required or permitted under an Order under sub-section (1). (4) An Order in effect under this section immediately before the commencement of section 14 of the Energy Legislation (Miscellaneous Amendments) Act 2001 is deemed to be an Order made under this section as amended by that Act, and sub- sections (2) and (3) apply accordingly. (5) A determination made by ORG before the commencement of section 14 of the Energy Legislation (Miscellaneous Amendments) Act 2001 pursuant to an Order under this section, is deemed to be a determination under sub-section (3).". 15. Provision by VENCorp of certain services outside Victoria In section 160(1)(j) of the Gas Industry Act 2001, for "in the retail gas market in Victoria" substitute— "— (i) in the retail gas market in Victoria; or (ii) with the approval of the Minister, after consultation with the Treasurer, in a retail gas market elsewhere outside Victoria". s. 15 -- 15 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 15 16. Amendment of reference to ORG (1) In section 68(3) of the Gas Industry Act 2001, for "ORG" substitute "The Commission". (2) After section 68(3) of the Gas Industry Act 2001 insert— "(3A) A determination under sub-section (3) is a determination for the purposes of the Essential Services Commission Act 2001.". 17. Correction of minor errors (1) In section 34(8)(b)(ii) of the Gas Industry Act 2001, for "a" substitute "at". (2) In section 219 of the Gas Industry Act 2001, in paragraph (a) of the definition of "prescribed offence", for "to be under" insert "under section". ═══════════════ s. 16 -- 16 of 17 -- Act No. 85/2001 Energy Legislation (Miscellaneous Amendments) Act 2001 16 ENDNOTES † Minister's second reading speech— Legislative Assembly: 18 October 2001 Legislative Council: 4 December 2001 The long title for the Bill for this Act was "to make miscellaneous amendments to the Electricity Industry Act 2000 and the Gas Industry Act 2001 and for other purposes." Endnotes -- 17 of 17 --