Statutes Amendment (National Energy Laws) (Omnibus) Bill

Second Reading

The Hon. R.I. LUCAS (Treasurer) (16:53): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and the detailed explanation of clauses inserted in Hansard without my reading them.

Leave granted.

The National Energy Laws, Regulations and Rules form the regulatory framework that allow the National Electricity Market and relevant gas markets to operate.

The Statutes Amendment (National Energy Laws) (Omnibus) Bill 2020 is the result of policy decisions on various matters by the former COAG Energy Council. The amendments to the National Energy Laws include:

Removing requirements for the Australian Energy Market Commission, Australian Energy Regulator, Australian Energy Market Operator and the National Competition Council to publish notices in newspapers. This will reduce regulatory costs and recognises changes in stakeholders' preference for how they access information. Minimum notice requirements on these bodies, such as notifications on websites, will continue.

Removing current limitations in the National Gas Law so that any party (including market participants and user groups) will be able to propose rule changes to the Australian Energy Market Commission on the operation and administration of the Victorian Declared Wholesale Gas Market.

Removing redundant references to the Limited Merits Review regime in the National Electricity Law and National Gas Law. This is the result of the passing of the Competition and Consumer Amendment (Abolition of Limited Merits Review) Act 2017.

Addressing constitutional issues raised in R v Hughes (2000) 202 CLR 535 which left open whether State legislation can impose duties on a Commonwealth body (such as the Australian Energy Regulator). The Omnibus Bill removes inconsistencies in the National Electricity Law, National Energy Retail Law and National Gas Law and brings relevant provisions in line with current drafting practice.

Clarification of the meaning of 'participating jurisdiction' to address ambiguity in the context of the participation of non-interconnected jurisdictions. Non-interconnected jurisdictions are jurisdictions that are not physically connected to the National Electricity Market such as the Northern Territory. For consistency, the meaning of 'Minister' has also been clarified.

References to a jurisdiction's 'Commercial Arbitration Act' can be prescribed by regulation. This will ensure that relevant references can be easily amended in the future as needs arise.

The legislative references to the Ministerial Council responsible for energy to operate effectively, no matter whether the name of the Council changes over time.

The Statutes Amendment (National Energy Laws) (Omnibus) Bill 2020 amends the National Electricity (South Australia) Act 1996, National Gas (South Australia) Act 2008, National Energy Retail Law (South Australia) Act 2011 and the Australian Energy Market Commission Establishment Act 2004.

I commend the bill to the Chamber.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Australian Energy Market Commission Establishment Act 2004

4—Amendment of section 3—Interpretation

The definition of MCE (Ministerial Council on Energy) is amended. Another amendment is consequential.

Part 3—Amendment of National Electricity Law

5—Amendment of section 2—Definitions

Various definitions are amended for the purposes of the measure.

6—Amendment of section 5—Participating jurisdictions

Technical changes are made to the provision relating to participating jurisdictions.

7—Amendment of section 6—Ministers of participating jurisdictions

Technical changes are made to the provision relating to Ministers of participating jurisdictions.

8—Amendment of section 16—Manner in which AER performs AER economic regulatory functions or powers

These amendments are technical or consequential.

9—Amendment of section 28I—Publication requirements for general regulatory information orders

Section 28I(2) is deleted.

10—Repeal of section 28ZJ

Section 28ZJ is repealed.

11—Amendment of section 43—Notice of MCE directed review

The requirement to publish a notice of a MCE directed review in a newspaper circulating generally throughout Australia is removed.

12—Amendment of section 53A—Making and publication of general market information order

The current requirement in subsection (2) is replaced with a requirement to publish on AEMO's website.

13—Amendment of section 54H—Disclosure of protected information authorised if detriment does not outweigh public benefit

These amendments are technical or consequential.

14—Amendment of section 57A—Functions and powers of Ministers of this participating jurisdiction

This amendments is consequential.

15—Amendment of section 69A—Commercial Arbitration Acts apply to proceedings before Dispute resolution panels

16—Amendment of section 71—Appeals on questions of law from decisions or determinations of Dispute resolution panels

These amendments are technical or consequential.

17—Amendment of section 71A—Definitions

Various definitions are repealed or amended relating to the repeal of Part 6 Division 3A Subdivision 2.

18—Repeal of Part 6 Division 3A Subdivision 2

Part 6 Division 3A Subdivision 2 is repealed.

19—Amendment of section 71X—Costs in a review

20—Amendment of section 71Y—Amount of costs

21—Repeal of sections 71YA and 71Z

These amendments are consequential.

22—Amendment of section 87—Definitions

The requirement to publish in a newspaper circulating generally throughout Australia is removed.

23—Amendment of Schedule 2—Miscellaneous provisions relating to interpretation

This amendment is technical.

24—Amendment of Schedule 3—Savings and transitionals

Transitional provisions relating to the changes to the definition of MCE are inserted.

Part 4—Amendment of National Energy Retail Law

25—Amendment of section 2—Interpretation

Amendments that are substantially similar to the amendments to the National Electricity Law are made to the National Energy Retail Law. However, the amendments relating to the repeal of Part 6 Division 3A Subdivision 2 ('limited merits review') of the National Electricity Law are not replicated here as they are not relevant. Likewise, the amendments relating to Commercial Arbitration Acts are not relevant in the National Energy Retail Law.

26—Substitution of section 9

9—Participating jurisdictions

27—Amendment of section 10—Ministers of participating jurisdictions

28—Amendment of section 214—Disclosure of confidential information authorised if detriment does not outweigh public benefit

29—Amendment of section 230—Notice of MCE directed review

30—Amendment of section 235—Definitions

31—Amendment of section 320—Law and the Rules to be construed not to exceed legislative power of Legislature

32—Amendment of Schedule 1—Savings and transitionals

Part 5—Amendment of National Gas Law

33—Amendment of section 2—Definitions

Amendments that are substantially similar to the amendments to the National Electricity Law are made to the National Gas Law.

34—Substitution of section 21

21—Participating jurisdictions

35—Amendment of section 22—Ministers of participating jurisdictions

36—Amendment of section 28—Manner in which AER must perform AER economic regulatory functions or powers

37—Amendment of section 51—Publication requirements for general regulatory information orders

38—Repeal of section 68C

39—Amendment of section 81—Notice of MCE directed review

40—Amendment of section 87—Functions and powers of Minister of this participating jurisdiction under this Law

41—Amendment of section 91FA—Making and publication of general market information order

42—Amendment of section 91GH—Disclosure of protected information authorised if detriment does not outweigh public benefit

43—Amendment of section 117—Advice by service provider that light regulation services should cease to be light regulation services

44—Amendment of section 244—Definitions

45—Repeal of Chapter 8 Part 5 Division 2

46—Amendment of section 268—Costs in a review

47—Amendment of section 269—Amount of costs

48—Repeal of sections 269A and 270

49—Repeal of section 270A

50—Substitution of sections 270B

270B—Commercial Arbitration Acts to apply to proceedings before Dispute resolution panels

51—Amendment of section 270C—Appeals on questions of law from decisions or determinations of Dispute resolution panels

52—Amendment of section 290—Definitions

53—Amendment of section 295—Initiation of making of a Rule

54—Amendment of Schedule 2—Miscellaneous provisions relating to interpretation

55—Amendment of Schedule 3—Savings and transitionals

Debate adjourned on motion of Hon. I.K. Hunter.