STATUTES AMENDMENT (SMART METERS) BILL

Introduction and First Reading

Received from the House of Assembly and read a first time.

Second Reading

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (17:57): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Government is amending the national energy legislation to provide for the implementation of smart meter consumer protections and to remove the power for a Minister to issue a Ministerial smart meter roll-out determination.

Smart meters enable a customer's electricity consumption to be recorded at half hourly intervals. Customers can access that information via various methods, including through a web portal or an in home display. Interval electricity consumption data will enable small customers to better manage their electricity consumption and to select an electricity tariff that best meets their individual needs.

The Statutes Amendment (Smart Meters) Bill 2013 makes amendments to the National Energy Retail Law in the Schedule to the National Energy Retail Law (South Australia) Act 2011 and the National Electricity Law in the Schedule to the National Electricity Law (South Australia) Act 1996.

The Bill will empower jurisdictions to stipulate retail tariff structures that must be included in a retailer's standing offer for small customers that have an interval meter or smart meter.

If a Rule on the prescription of tariff structures to apply to a retailer's standing offer is in the future included in the National Energy Retail Rules, jurisdictions will be able to opt-in to this Rule being applied in their jurisdiction.

For small customers that use an interval meter or smart meter, it is imperative that there is a robust and comprehensive consumer protections framework in place.

Consumer protections will be provided by new Rules to be included in the National Energy Retail Rules. This Bill provides that the South Australian Minister may make initial Rules in relation to the use of interval meters and smart meters and other related technologies. The initial Rules process is being used to ensure that consumer protections are in place in early 2014.

The Bill will provide that once initial Rules have been made by the South Australian Minister on the subjects provided for in the Bill, the Minister will have no power to make any further Rules under this power.

Noting that Victoria has been the only jurisdiction to mandate a smart meter roll-out, jurisdictions have now agreed that any future roll-out of smart meters should proceed on a market driven, competitive basis. Accordingly, the Bill removes the ability of the Minister of a participating jurisdiction to issue a Ministerial smart meter roll-out determination, which would mandate a broad-scale roll-out.

It is important to note that removal of this power in no way seeks to change or inhibit Victoria from finalising the roll-out of smart meters in their jurisdiction.

This Bill will also not impact the ability of a Minister of a participating jurisdiction to make a determination that requires a distribution system operator to conduct a smart meter trial or assessment.

An Exposure Draft of the Bill has been provided for industry and public consultation prior to its introduction here and the minor matters of clarification sought by stakeholders have been incorporated into the Bill.

Smart meters have already been rolled-out widely in Victoria, and stakeholders are preparing for the market driven commercial roll-out of smart meters in other jurisdictions. It is important to therefore implement smart meter consumer protections and remove the option for a Minister to issue a Ministerial smart meter roll-out determination as soon as possible.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

The measure will be brought into operation by proclamation.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of National Electricity Law

4—Amendment of section 2—Definitions

The National Electricity Law is to no longer provide for Ministerial smart meter rollout determinations. References to such determinations must therefore be removed from terms that are defined for the purposes of the national law.

5—Amendment of section 118A—Definitions

The definitions relevant to Ministerial smart meter rollout determinations are to be struck out.

6—Repeal of Part 8A Division 3

The provisions that allow a Minister to make a determination about the provision of smart meter services by a regulated distribution system operator for electricity are to be repealed.

Part 3—Amendment of National Energy Retail Law

7—Amendment of section 22—Obligation to make offer to small customers

This clause will provide for particular tariff structures to be part of a retailer's standing offer for small customers who have an interval meter. However, this requirement will only apply in relation to a jurisdiction if a local instrument of the jurisdiction so provides.

8—Amendment of section 237—Subject matter of Rules

It will be necessary and appropriate for the Rules to make provision with respect to the use of interval meters and other technologies, including devices that enable direct load control.

9—Insertion of section 238A

The South Australian Minister will be empowered to make the initial Rules that are to apply under section 237(2)(ia) of the national law.

Debate adjourned on motion of Hon. D.W. Ridgway.