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This is a Bill, not an Act. For current law, see the Acts databases.
Energy Legislation Amendment (Victorian Default
Offer) Act 2019
No. of 2019
TABLE OF PROVISIONS
Clause Page
Part 1--Preliminary 1
1 Purpose 1
2 Commencement 2
Part 2--Amendment of Electricity Industry Act 2000 3
3 Regulation of tariffs for prescribed customers 3
4 Offer to domestic or small business customers 6
5 Terms and conditions of contracts for sale of electricity to
certain customers 7
Part 3--Amendment of Essential Services Commission Act 2001 8
6 Definitions 8
7 New section 10AAB inserted 8
8 Right of appeal 8
Part 4--Amendment of Gas Industry Act 2001 10
9 Definitions 10
10 New section 20A inserted 10
11 Regulation of tariffs for prescribed customers 10
12 Offer to domestic or small business customers 13
13 Terms and conditions of contracts for sale of gas to certain
customers 14
Part 5--Repeal of amending Act 16
14 Repeal of amending Act 16
═════════════
Endnotes 17
1 General information 17
i
Energy Legislation Amendment
(Victorian Default Offer) Act 2019
No. of 2019
[Assented to ]
The Parliament of Victoria enacts:
Part 1--Preliminary
1 Purpose
The main purpose of this Act is to amend the
Electricity Industry Act 2000, the Essential
Services Commission Act 2001 and the Gas
Industry Act 2001 to facilitate--
(a) reforms to energy retail contract pricing; and
1
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 1--Preliminary
(b) the introduction of a Victorian default
offer providing a fair price for energy
for households and small businesses.
2 Commencement
This Act comes into operation on the day after
the day on which it receives the Royal Assent.
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Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 2--Amendment of Electricity Industry Act 2000
Part 2--Amendment of Electricity
Industry Act 2000
3 Regulation of tariffs for prescribed customers
(1) In section 13(1) of the Electricity Industry
Act 2000, after "Governor in Council" (where first
occurring) insert ", on the recommendation of the
Minister,".
(2) For section 13(1A) of the Electricity Industry
Act 2000 substitute--
"(1A) The Minister may make a recommendation
under subsection (1)--
(a) if, under an MCE directed retail
competition review, the AEMC--
(i) concludes that competition in
a market for electricity is not
effective; and
(ii) 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; or
(b) if the Commission makes a
recommendation in a report under
section 10AAB of the Essential
Services Commission Act 2001
that price controls on prices for retail
electricity services be (as the case
requires) retained or reintroduced.
(1B) In addition, the Minister may make a
recommendation under subsection (1) on the
basis of any other information available to
the Minister, including information made
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No. of 2019
Part 2--Amendment of Electricity Industry Act 2000
available to the Minister before the
commencement of this subsection.
(1C) Before making a recommendation under
subsection (1), the Minister must consult
the Premier and the Treasurer.".
(3) After section 13(2) of the Electricity Industry
Act 2000 insert--
"(2AA) Without limiting the generality of
subsection (1), an Order under that
subsection may--
(a) prohibit or exclude any specified
cost, matter or thing from being
had regard to by the Commission in
making a decision, including a price
determination, in respect of any tariff
for the sale of electricity to prescribed
customers or a class of prescribed
customers; and
(b) regulate the offer, or the giving, of a
discount or other benefit to prescribed
customers or a class of prescribed
customers, including--
(i) the maximum amount or value
of a discount or other benefit
that may be offered or given to
prescribed customers or a class
of prescribed customers; and
(ii) the periods when a discount or
other benefit may be offered or
given to prescribed customers or
a class of prescribed customers.".
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Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 2--Amendment of Electricity Industry Act 2000
(4) In section 13(2A) of the Electricity Industry
Act 2000--
(a) after "tariffs" (where secondly occurring)
insert "paid or";
(b) omit "during the review period".
(5) For section 13(3) of the Electricity Industry
Act 2000 substitute--
"(3) An Order under subsection (1) may--
(a) direct the Commission to make
a decision, including a price
determination, in respect of any
factors and matters, or in accordance
with any procedures, matters or bases,
that are specified in the Order; and
(b) direct the Commission to make
amendments to any instrument made
by the Commission to give effect to
any matter specified in the Order; and
(c) confer powers and functions on, and
leave any matter to be decided by, the
Commission; and
(d) include saving and transitional
provisions.
(3A) An Order under subsection (1) may--
(a) be of general or limited application;
(b) differ according to differences in time,
place and circumstances.
(3B) An Order under subsection (1) has effect
according to its tenor despite anything to
the contrary in any agreement or contract.".
(6) In section 13(4A) of the Electricity Industry
Act 2000, for "Sections 53 and 54" substitute
"Divisions 1 and 2 of Part 7".
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Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 2--Amendment of Electricity Industry Act 2000
(7) In section 13(6) of the Electricity Industry
Act 2000--
(a) in the definition of prescribed customer,
for "applies." substitute "applies;";
(b) insert the following definition--
"price determination means a determination
under section 33 of the Essential
Services Commission Act 2001.";
(c) the definition of review period is repealed.
4 Offer to domestic or small business customers
(1) In section 35(1) of the Electricity Industry
Act 2000, after "section 13" insert "or a price
determination in force under such an Order".
(2) In section 35(3) of the Electricity Industry
Act 2000, after "(3G)" insert "and to any Order
in force under section 13 or a price determination
in force under such an Order".
(3) For section 35(3A) of the Electricity Industry
Act 2000 substitute--
"(3A) Subject to subsection (3AB), a licensee must
not vary tariffs under subsection (3) that
have been in effect for less than--
(a) the period (not exceeding 12 months)
determined by the Commission; or
(b) if no period is determined under
paragraph (a)--6 months.
(3AB) Subsection (3A) does not apply if--
(a) the variation is necessary to comply
with an Order in force under section 13
or a price determination in force under
such an Order; or
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No. of 2019
Part 2--Amendment of Electricity Industry Act 2000
(b) the Commission, being satisfied
that there are special circumstances,
exempts the licensee from compliance
with that subsection.".
(4) Insert the following definition in section 35(8)
of the Electricity Industry Act 2000--
"price determination means a determination
under section 33 of the Essential Services
Commission Act 2001;".
5 Terms and conditions of contracts for sale of
electricity to certain customers
After section 36(1)(a)(iii) of the Electricity
Industry Act 2000 insert--
"(iiia) specify the circumstances in which the
licensee may, or must not, offer or give
a discount or other benefit to a relevant
customer, including--
(A) the maximum amount or value of a
discount or other benefit that may
be offered or given to a relevant
customer; and
(B) the periods when a discount or other
benefit may be offered or given to a
relevant customer; and
(iiib) specify a period during which the licensee
must not vary the tariffs applying under the
contract unless exempted to do so by the
Commission; and".
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Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 3--Amendment of Essential Services Commission Act 2001
Part 3--Amendment of Essential Services
Commission Act 2001
6 Definitions
In section 3 of the Essential Services
Commission Act 2001, in the definition of
empowering instrument, after paragraph (c)
insert--
"(ca) any Order made under section 21 of the
Gas Industry Act 2001; or".
7 New section 10AAB inserted
After section 10AA of the Essential Services
Commission Act 2001 insert--
"10AAB Commission's functions in relation
to the retail energy market
Without limiting section 10(a), the
Electricity Industry Act 2000 or the
Gas Industry Act 2001, the functions
of the Commission under this Act
include to monitor and report on the
competitiveness and efficiency of the
Victorian retail markets for electricity
and gas.".
8 Right of appeal
For section 55(1)(c) of the Essential Services
Commission Act 2001 substitute--
"(c) a determination of the Commission, other
than a price determination under section 33
in respect of--
(i) tariffs for the sale of electricity
regulated by Order under section 13 of
the Electricity Industry Act 2000; or
8
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No. of 2019
Part 3--Amendment of Essential Services Commission Act 2001
(ii) tariffs for the sale of gas regulated
by Order under section 21 of the
Gas Industry Act 2001; or".
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Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 4--Amendment of Gas Industry Act 2001
Part 4--Amendment of Gas
Industry Act 2001
9 Definitions
In section 3 of the Gas Industry Act 2001, in
the definition of Tariff Order, paragraph (a) is
repealed.
10 New section 20A inserted
After section 20 of the Gas Industry Act 2001
insert--
"20A Powers in relation to price regulation
For the purposes of Part 3 of the Essential
Services Commission Act 2001, the power
to regulate prescribed prices in respect of
prescribed goods and services is conferred
on the Commission in respect of tariffs for
the sale of gas regulated by Order under
section 21, to the extent specified in such
an Order.".
11 Regulation of tariffs for prescribed customers
(1) In section 21(1) of the Gas Industry Act 2001,
after "Governor in Council" (where first
occurring) insert ", on the recommendation
of the Minister,".
(2) For section 21(1A) of the Gas Industry Act 2001
substitute--
"(1A) The Minister may make a recommendation
under subsection (1)--
(a) if, under an MCE directed retail
competition review, the AEMC--
(i) concludes that competition in
a market for gas is not effective;
and
10
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 4--Amendment of Gas Industry Act 2001
(ii) 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; or
(b) if the Commission makes a
recommendation in a report under
section 10AAB of the Essential
Services Commission Act 2001
that price controls on prices for
retail gas services be (as the case
requires) retained or reintroduced.
(1B) In addition, the Minister may make a
recommendation under subsection (1)
on the basis of any other information
available to the Minister, including
information made available to the
Minister before the commencement
of this subsection.
(1C) Before making a recommendation under
subsection (1), the Minister must consult
the Premier and the Treasurer.".
(3) After section 21(2) of the Gas Industry Act 2001
insert--
"(2AA) Without limiting the generality of
subsection (1), an Order under that
subsection may--
(a) prohibit or exclude any specified
cost, matter or thing from being
had regard to by the Commission
in making a decision, including a
price determination, in respect
of any tariff for the sale of gas to
prescribed customers or a class
of prescribed customers; and
11
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 4--Amendment of Gas Industry Act 2001
(b) regulate the offer, or the giving, of a
discount or other benefit to prescribed
customers or a class of prescribed
customers, including--
(i) the maximum amount or value
of a discount or other benefit
that may be offered or given to
prescribed customers or a class
of prescribed customers; and
(ii) the periods when a discount or
other benefit may be offered or
given to prescribed customers or
a class of prescribed customers.".
(4) In section 21(2A) of the Gas Industry
Act 2001--
(a) after "tariffs" (where secondly occurring)
insert "paid or";
(b) omit "during the review period".
(5) For section 21(3) of the Gas Industry Act 2001
substitute--
"(3) An Order under subsection (1) may--
(a) direct the Commission to make
a decision, including a price
determination, in respect of any
factors and matters, or in accordance
with any procedures, matters or bases,
that are specified in the Order; and
(b) direct the Commission to make
amendments to any instrument made
by the Commission to give effect to
any matter specified in the Order; and
(c) confer powers and functions on, and
leave any matter to be decided by, the
Commission; and
12
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 4--Amendment of Gas Industry Act 2001
(d) include saving and transitional
provisions.
(3A) An Order under subsection (1) may--
(a) be of general or limited application;
(b) differ according to differences in time,
place and circumstances.
(3B) An Order under subsection (1) has effect
according to its tenor despite anything to
the contrary in any agreement or contract.".
(6) In section 21(4A) of the Gas Industry Act 2001,
for "Sections 53 and 54" substitute "Divisions 1
and 2 of Part 7".
(7) In section 21(6) of the Gas Industry Act 2001--
(a) insert the following definition--
"price determination means a determination
under section 33 of the Essential
Services Commission Act 2001.";
(b) the definition of review period is repealed.
12 Offer to domestic or small business customers
(1) In section 42(1) of the Gas Industry Act 2001,
after "section 21" insert "or a price determination
in force under such an Order".
(2) In section 42(3) of the Gas Industry Act 2001,
after "(3G)" insert "and to any Order in force
under section 21 or a price determination in force
under such an Order".
(3) For section 42(3A) of the Gas Industry Act 2001
substitute--
"(3A) Subject to subsection (3AB), a licensee
must not vary tariffs under subsection (3)
that have been in effect for less than--
13
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 4--Amendment of Gas Industry Act 2001
(a) the period (not exceeding 12 months)
determined by the Commission; or
(b) if no period is determined under
paragraph (a)--6 months.
(3AB) Subsection (3A) does not apply if--
(a) the variation is necessary to comply
with an Order in force under section 21
or a price determination in force under
such an Order; or
(b) the Commission, being satisfied
that there are special circumstances,
exempts the licensee from compliance
with that subsection.".
(4) Insert the following definition in section 42(8)
of the Gas Industry Act 2001--
"price determination means a determination
under section 33 of the Essential Services
Commission Act 2001;".
13 Terms and conditions of contracts for sale of gas
to certain customers
After section 43(1)(a)(iii) of the Gas Industry
Act 2001 insert--
"(iiia) specify the circumstances in which the
licensee may, or must not, offer or give
a discount or other benefit to a relevant
customer, including--
(A) the maximum amount or value of a
discount or other benefit that may be
offered or given to a relevant customer;
and
(B) the periods when a discount or other
benefit may be offered or given to a
relevant customer; and
14
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 4--Amendment of Gas Industry Act 2001
(iiib) specify a period during which the licensee
must not vary the tariffs applying under the
contract unless exempted to do so by the
Commission; and".
15
Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Part 5--Repeal of amending Act
Part 5--Repeal of amending Act
14 Repeal of amending Act
This Act is repealed on the first anniversary of
the day on which it receives the Royal Assent.
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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Energy Legislation Amendment (Victorian Default Offer) Act 2019
No. of 2019
Endnotes
Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
authorised versions of legislation and up-to-date legislative information.
Minister's second reading speech--
Legislative Assembly:
Legislative Council:
The long title for the Bill for this Act was "A Bill for an Act to amend
the Electricity Industry Act 2000, the Essential Services Commission
Act 2001 and the Gas Industry Act 2001 to facilitate reforms to energy
retail contract pricing and the introduction of a Victorian default offer
providing a fair price for energy for households and small businesses and
for other purposes."
By Authority. Government Printer for the State of Victoria.
17
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