Victorian Numbered Acts Victorian Numbered ActsAfter Division 2 of Part 3 of the National Electricity (Victoria) Act 2005 insert —
(1) The Governor in Council, by Order published in the Government Gazette, for the purpose of reducing the risk of fire starts and reducing the risk of loss or damage caused by fire starts, may confer functions and powers, or impose duties, on the AER to make—
(a) a determination for the purpose of providing incentives for Distribution Network Service Providers to reduce the risk of fire starts and reduce the risk of loss or damage caused by fire starts;
(b) a determination for each year of the first distribution determination period specifying an amount that is to be treated as a positive pass through amount or a negative pass through amount for the purposes of Chapter 6 of the National Electricity Rules.
(2) Without limiting subsection (1), an Order under that subsection may—
(a) specify how the AER is to make, publish, implement and administer an f-factor scheme determination and an f-factor amount determination;
(b) specify the kinds of fire starts to be covered by an f-factor scheme determination or require the AER to determine the kinds of fire starts to be covered by an f-factor scheme determination;
(c) require the AER, before making an f-factor scheme determination, to consult with one or more of the following—
(i) the Minister;
(ii) a Distribution Network Service Provider;
(iii) a relevant entity;
(iv) any other person whose interests are affected and who is specified as a person with whom the AER must consult;
(d) require the AER, when consulting with persons referred to in paragraph (c), to comply with specified consultation procedures;
(e) require the AER to include benchmarks or targets for Distribution Network Service Providers as part of an f-factor scheme determination;
(f) require the AER to assess the performance of Distribution Network Service Providers in relation to any benchmarks or targets included as part of an f-factor scheme determination and for the purpose of making an f-factor amount determination;
(g) specify any benchmarks, targets, incentives, rewards or penalties for inclusion in an f-factor scheme determination that will apply to Distribution Network Service Providers and for the purpose of making f-factor amount determinations;
(h) require the AER, in making an f-factor scheme determination, to have regard to specified criteria, including—
(i) the need to ensure that the benefits to consumers likely to result from the making of an f-factor scheme determination are sufficient to warrant the determination's benchmarks, targets, incentives, rewards or penalties for Distribution Network Service Providers;
(ii) any regulatory obligation or requirement to which Distribution Network Service Providers are subject;
(iii) a distribution system's history of fire starts;
(iv) the willingness of end users to pay for enhanced fire safety;
(v) criteria for determining benchmarks, targets, incentives, rewards or penalties that will apply to Distribution Network Service Providers and for the purpose of making an f-factor amount determination;
(vi) any interaction between the Order and a service target performance incentive scheme;
(vii) any
interaction between the Order and any other incentive scheme, including an
incentive scheme in relation to services provided by means of a distribution
system (other than a service target performance incentive scheme that applies
to a Distribution Network Service Provider);
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(i) specify, for a Distribution Network Service Provider, the interaction between an f-factor scheme determination and a service target performance incentive scheme that apply to that Distribution Network Service Provider.
(3) An Order under subsection (1) 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.
(4) An Order under subsection (1) may—
(a) leave any matter to be decided by the AER; and
(b) without limiting paragraph (a), direct the AER to make amendments to any instrument made by the AER to give effect to any matter specified in an Order made under this section.
(5) The provisions of an Order under subsection (1) may—
(a) be of general or limited application;
(b) differ according to differences in time, place and circumstances.
(6) An Order under subsection (1) has effect
as from the day specified in the Order and until the day specified in the
Order.
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(7) An f-factor scheme determination or f-factor amount determination made under an Order under subsection (1) cannot come into effect before the Victorian distribution pricing determination end date.
A function or power conferred or a duty imposed on the AER by an Order under section 16C is taken to be conferred or imposed by this Act.
Note
See sections 44AH and 44AI of the Trade Practices Act 1974 of the Commonwealth.
(1) Despite section 6, after the Victorian distribution pricing determination end date—
(a) unless the context otherwise requires, a reference in the NEL to "the Law" or " this Law" is to be read as including a reference to an Order under section 16C;
(b) a reference in the NEL to a function or power of the AER (including, but not limited to, an AER economic regulatory function or power) is to be read as including a reference to a function or power conferred or a duty imposed on the AER under section 16D;
(c) section 14B of the NEL is to be read as if after "that operator" there were inserted "and an f-factor scheme determination and an f-factor amount determination that applies to that operator";
(d) sections 28F(1), 28ZC and 28ZD of the NEL are to be read as if after every reference in those sections to "or the Rules" there were inserted "or an Order under section 16C under the National Electricity (Victoria) Act 2005 ";
(e) Division 6 of Part 3 of the NEL is to be read as if after every reference in that Division to "or the Rules" there were inserted "or an Order under section 16C under the National Electricity (Victoria) Act 2005 ";
(f) section 28F(3)(d) of the NEL is to be read as if after "performance report" there were inserted ", other than a service provider performance report relating to a Distribution Network Service Provider's compliance with an f-factor scheme determination or f-factor amount determination";
(g) section 28V(2)(a) of the NEL is to be read as if after subparagraph (iii) there were inserted—
"(iv) complying with an f-factor scheme determination and an f-factor amount determination; and".
(2) Despite section 6, on and after the date the first Order made under section 16C comes into effect, the National Electricity Rules have the force of law in Victoria as if—
(a) after rule 6.13 of the Rules there were inserted—
" 6.13A Variations to distribution determinations for purpose of f-factor scheme determinations
(a) Despite anything to the contrary in these Rules and subject to this rule, the AER may, as a consequence of the making of an f-factor scheme determination (within the meaning of section 13 of the National Electricity (Victoria) Act 2005 ), vary a distribution determination during the course of the regulatory control period .
(b) The AER must not vary a distribution determination under this rule unless the AER has complied with any consultation procedures specified in an Order under section 16C of the National Electricity (Victoria) Act 2005 .
(c) Once the AER has made a decision under this rule varying a distribution determination, the AER cannot make another decision under this rule to vary that distribution determination.
(d) Despite anything to the contrary in these Rules , the AER , in varying a distribution determination under this rule, is not required to follow any process specified in the Rules in relation to the making of a distribution determination.
(e) To avoid doubt—
(1) a decision of the AER to vary a distribution determination under this rule is taken not to be a reviewable regulatory decision (within the meaning of section 71A of the National Electricity Law ); and
(2) a distribution determination (as varied by the AER under this rule) is not by reason only of that variation taken to be a reviewable regulatory decision (within the meaning of section 71A of the National Electricity Law )."; and
(b) after paragraph (d) of the definition of pass through event in Chapter 10 of the Rules there were inserted—
"(e) an f-factor amount determination (within the meaning of section 13 of the National Electricity (Victoria) Act 2005 ).".
The making of an f-factor scheme determination or an f-factor amount
determination is not to be taken as affecting the process already commenced by
the AER for the making of a distribution determination that is to apply during
the first distribution determination period.
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(1) If the AER considers it necessary for the purposes of making an f-factor scheme determination or an f-factor amount determination, the AER may request a relevant entity to provide information relating to fire starts to the AER.
(2) Before making a request under subsection (1), the AER must consult with the relevant entity about its intention to make that request.
(3) A request under subsection (1) must—
(a) be in writing; and
(b) specify the period of time within which the information requested is to be provided.
(4) The period of time referred to in subsection (3)(b) must be reasonable.
(5) A request under subsection (1) may request information in relation to one or more of the following—
(a) the number of fire starts caused
by, or believed to be caused by, electric lines or electrical installations
during a specified period;
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(b) the date, time and location of each of those fire starts;
(c) if known and determinable, the cause of each of those fire starts;
(d) the nature and extent of any loss or damage caused by each of those fire starts.
(6) A relevant entity must comply with a request under subsection (1) to the extent that it is reasonably practicable for the entity to do so.
(7) For the purposes of subsection (6), it is reasonably practicable for a relevant entity not to comply with a request under subsection (1) if the entity is of the view that compliance with the request would impose an unreasonable administrative or financial burden on the entity.'.