Generally Country Energy, as a New South Wales State owned corporation, is subject to the same statutory and legal requirements as other businesses.
The following are the main legislative and other regulatory changes made during the last financial year which impact Country Energy as an energy service corporation.
Commonwealth
• Renewable Energy (Electricity) Regulations 2001 (Cth) This Regulation was amended to reflect the renewable power percentages for 2003 and 2004. These are: for 2003 - 0.88%; and for 2004 - 1.25%.
ACT
No relevant amendments.
NSW
• Electricity Supply Act 1995 (NSW)
In March 2004 the Electricity (Consumer Safety) Act 2004 was passed. This Act will amend the Electricity Supply Act 1995 with the intention of promoting safety within the electricity industry. To this end an authorised network officer may enter any premises to inspect or disconnect any premises that the authorised officer is entitled to inspect or disconnect under any law.
Further a distribution network services provider may, for traffic safety reasons, be directed to remove an electricity structure that is on a main road.
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COUNTRY ENERGYANNUAL REPORT 2003–2004The effect of this amendment in relation to gas contact sales agreements and gas telephone marketing agreements is that the licensee does not have to obtain the customer’s written consent to vary the terms and conditions. The licensee can also decide when telephone marketing agreements can be cancelled. There is no need for a cooling off period unless the licensee determines that such a period will be included in the terms and conditions.
The Energy Legislation (Consumer Protection and Other Amendments) Act 2003 (Vic) amends this Act to extend the consumer protection safety net for gas and electricity customers until 31 December 2004 and to clarify the operation of VENCorp.
• Electricity Industry Act 2000 (Vic)
This Act was amended by the Fair Trading (Amendment) Act 2003 (Vic) (operational from 9 December 2003).
The effect of this amendment is that licensees, such as Country Energy, can vary the tariffs, terms and conditions in relation to contact sales agreements without the written consent of the customer. Further, licensees do not need to send written confirmation of telephone marketing agreements. The licensee can also decide when telephone marketing agreements can be cancelled.
Additionally, there is no need for a cooling off period unless the licensee determines that such a period will be included in the terms and conditions.
The Energy Legislation (Consumer Protection and Other Amendments) Act 2003 amends the Electricity Industry Act 2000 to ensure that the Essential Services Commission may:
(i) impose a condition on a licence to require a transmission company to provide access to its land for the purpose of constructing, operating and maintaining augmentations to the electricity transmission system; and
(ii) may direct a transmission company to enter into a lease in relation to the provision of access to its land for the purpose of constructing, operating and maintaining augmentations to the electricity transmission system;
It also clarifies the power of distribution companies, transmission companies and generation companies to compulsorily acquire easements applies in respect of both overhead and underground power lines.
The Energy Legislation (Consumer Protection and Other Amendments) Act 2003 (Vic) amends the Electricity Industry Act 2000 to extend the consumer protection safety net for gas and electricity customers until 31 December 2004 and to clarify the operation of VENCorp.
This Act was also amended by the Statute Law
(Miscellaneous Provisions) Act 2003 to ensure consistency of penalties.
• Electricity Supply (General) Regulation 2001 (NSW) This Regulation amended the Electricity Supply (General) Amendment (Reduction of Greenhouse Gas Emissions) Regulation 2003 which introduces an elective Greenhouse gas benchmarks process for customers that are likely to use 100 gigawatt hours or more of electricity at a single site.
Queensland
• Gas Supply Act 2003 (Qld)
The Act came in to force on 1 July 2003. The main purposes are to implement the franchising and licensing principles of the national gas agreement, to promote efficient and economical fuel gas supply and protect customers in reticulated fuel gas markets.
These latter purposes are achieved via regulation of the distribution and retail markets for reticulated fuel gas;
and regulation of the market operating arrangements in the natural gas market, and by the provision of dispute resolution procedures between customers and distributors or retailers.
• Gas Regulation 1989 (Qld)
Part 4 of this Regulation was amended by the Gas Supply Regulation 2003 (1 July 2003). This amendment approves a code of conduct regarding arrangements for the operation or use of a distribution pipeline that is a covered pipeline; or a covered transmission pipeline, to the extent its operation or use affects the operation or use of a distribution pipeline that is a covered pipeline.
It also provides for the arrangements, imposes stated terms on the arrangements and provides for the legal effect or enforcement of the terms.
• Electricity Amendment Regulation (Qld) (No 2 1) 2004 (to commence 1 July 2004)
This Regulation amended the Electricity Regulation 1994 (Qld). Its main effects were the redefining of contestable customers (from 0.2GWh to 0.1GWh), and the insertion of cooling-off provisions for negotiated customer sale contracts. The Regulation amends the Electricity Regulation 1994 so that retail customers (as defined by the Electricity Supply Act 1995 (NSW) are contestable customers in Country Energy’s area.
• Electrical Safety Amendment Regulation (No 2) 2003 (Qld)
This Regulation amended the Electrical Safety Regulation 2002 (Qld) by, among other things, eligibility requirements for various electrical tradespersons licences.
Victoria
• Gas Industry Act 2001 (Vic)
This Act was amended by the Fair Trading (Amendment) Act 2003 (Vic) (operational from 9 December 2003).
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COUNTRY ENERGYANNUAL REPORT 2003–2004
The Energy Legislation (Regulatory Reform) Act 2004 amended this Act (on 25 May 2004) to replace the existing Tariff Order with a more limited Order; and to clarify when a generation company is liable to be rated in respect of land used for generation functions.
• Electricity Industry (Residual Provisions) Act 1993 (Vic) This Act was amended by the Energy Legislation
(Regulatory Reform) Act 2004 in relation to the regulation of charges for electricity purchased under the National Electricity Code, in that the Governor in Council can authorise the Minister to determine certain charges under the National Electricity Code.
• Electricity Safety Act 1998 (Vic)
This Act was amended by the Energy Legislation (Regulatory Reform) Act 2004 in relation to safety management schemes. The amendment expands the circumstances under which the Office must recommend that the scheme should be accepted to include when the scheme is appropriate for the electrical work at the premises to which the scheme applies. In addition, the Act has been expanded so that the Office must be satisfied in relation to all schemes that the level of safety to be provided by the scheme is not less than the level of safety required by the Act and corresponding Regulations.
The Office no longer has to notify the scheme operator in writing of its decision to approve a scheme.
This Act was further amended by the Road Management Act 2004 so that the a person who is required to conduct the works by specific requirements specified in or under any the Electricity Safety Act and the works are conducted in accordance with those requirements is not required to obtain written consent from VicRoads to carry out that requirement. The Road Management Act 2004 also updates the Act so that the definition of “road” is the same as the definition in the Road Management Act 2004 rather than the Transport Act 1983.
National Electricity Code
A number of amendments were made to the National Electricity Code which either directly or indirectly affect Country Energy. These include:
• Improvements to the prudential framework to refine the determination of the maximum credit limit of market participants and procedures when dealing with NEMMCO.
• Transitional amendments that take into account full retail competition in Victoria (such as the requirement to demonstrate a minimum level of accuracy for a metering installation).
• Provision of access to Ombudsman by NEMMCO of metering data of code participants where requested by the Ombudsman.
• Stipulation of the way in which NEMMCO must determine market ancillary service.
• Extension of the time for which NEMMCO can enter reserve contracts.
Changes were also made to facilitate entry of Tasmania into the National Electricity Market although they will have on affect unless and until Tasmania actually enters the National Electricity Market
Judicial Decisions
We note there were no significant judicial decisions in the 2003/2004 financial year affecting Country Energy.