Statutes Amendment (National Energy Laws) (Data Access) Bill

Second Reading

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (16:56): I move:

That this bill be now read a second time.

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

Leave granted.

In June 2017 the Independent Review into the Future Security of the National Electricity Market (the Finkel Review) recommended that the Energy Security Board (ESB), in collaboration with the Australian Energy Regulator (AER), should develop a data strategy for the National Electricity Market. It regarded a data strategy as a critical governance requirement in the context of rapid change and digitalisation in the market.

The ESB commenced work on the data strategy in 2019. It used a range of key inputs, including an in-depth legal review of data regulation within Australian energy frameworks and a review of case studies in international data reforms.

In July 2021 the ESB released its Final Recommendations on the Data Strategy with a proposed reform pathway comprising two stages.

The first stage includes initial incremental legislative improvements (Initial Reforms), implemented immediately, to remove key barriers in accessing existing Australian Energy Market Operator (AEMO) data.

The second stage involves a more significant overhaul of the energy data framework, supporting agreed new Energy Data Policy Principles, aligned with wider national data reforms and fit-for-purpose in a digitalised future.

On 10 January 2024 the Commonwealth Government advised that Energy Ministers agreed to an Initial Reforms legislative package and progressing it to the South Australian Parliament. This package includes amendments to the National Electricity Law (NEL) and National Gas Law (NGL) and associated amendments to the regulations under these pieces of legislation.

The Statutes Amendment (National Energy Laws) (Data Access) Bill 2024 proposes to amend the NEL and NGL to allow AEMO to share protected data safely with trusted ‘prescribed¹¹ bodies.

The NEL and the NGL currently provides that the disclosure of protected information by AEMO to certain bodies, including market bodies and jurisdictional regulators is authorised. These bodies have prescribed statutory functions either specific to the energy industry or work with energy data for public purposes. There is a high level of confidence in the recipient as to the security and protection of the data.

In line with that criterion, the Bill amends the NEL and NGL, to expands this list of prescribed bodies to each department responsible for the administration of the application Act of a participating jurisdiction; the Ministers of the participating jurisdiction; the Australian Bureau of Statistics; and the Clean Energy Regulator.

The Bill also adds new provisions to the NEL and the NGL, allowing AEMO to disclose protected information to relevant entities for a data sharing purpose—including the delivery of government services; .informing government planning, policy, or programs; and research in relation to energy. The Bill defines various relevant entities, including Australian university researchers who are conducting research in relation to energy, and Energy Consumers Australia. Bodies that have been defined as relevant entities have been included as they are public bodies and researchers who can create clear benefits for energy consumers through greater access to data but require clear data protection obligations to ensure security.

The Bill will ensure that policy makers, planners, and researchers have better access to protected data that AEMO already holds. It will facilitate their effective decision making in a timely manner.

This protected data has significant value, particularly as it includes data from consumer meters and distributed energy resources (DER). DER are renewable energy units or systems that are located at houses or businesses to provide them with power. An example of DER is rooftop solar PV units. The data is critical to better understanding how different consumer behaviours and needs are changing and being impacted by the energy transition. This informs forecasting, investments, new services, and consumer protections.

AEMO has indicated to jurisdictional energy departments that this data could support jurisdictional bodies and their programs. For example, AEMO's metering and DER data sets could be linked to jurisdiction-specific program data for quantitative evaluation of program and policy impacts. This is a frequent request from jurisdictions which is usually delayed or not achieved due to competing priorities and lack of standard arrangements within AEMO.

AEMO has also indicated that this data could support research or public benefit. For example, energy accounting, de-identified key datasets, net zero aspirations, energy reporting.

Data security is a clear risk that the Bill needs to manage, to support confidence in data sharing for AEMO and wider stakeholders.

Those bodies that the Bill allows AEMO to disclose protected information to for a data sharing purpose have only limited existing data protection requirements. Thus, the Bill sets out explicit and transparent data protection conditions for them. These protections include restricted data sharing purposes and AEMO imposed conditions, with proposed civil penalties for breaches. The AER will be the enforcement body for these protections.

Existing protection obligations will constrain those bodies that the Bill adds to the list of those that AEMO can already disclose protected information to.

These obligations align with AEMO's protection capabilities. Bodies on this list have strong incentives to manage data conservatively and effectively. The existing list of bodies already access protected data from AEMO.

Additionally, there are a range of complementary non-legislative controls which AEMO will need to implement. These are aimed at reducing uncertainty for users, improving transparency and trust in data sharing, and increasing efficient in implementation. They include publishing common data sharing terms and guidelines; a public register of data sharing agreements; and potentially accreditation requirements.

Finally, the Bill will also create a power for the South Australian Minister to make rules for or with respect to the data access amendments; and that revoke or amend a Rule because of the enactment of the data access amendments. The South Australian Minister will have the power to make those rules once only. The Australian Energy Market Commission may make later amendments.

I commend the Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of National Electricity Law

4—Amendment of section 49—AEMO's statutory functions

Certain functions are conferred on AEMO.

5—Amendment of section 53D—Use of information

Provision is made in relation to the use of information by AEMO.

6—Amendment of section 54—Protected information

Certain matters relating to protected information are provided for.

7—Amendment of section 54C—Disclosure required or permitted by law etc

Provision is made in relation to the disclosure of information in accordance with the National Electricity Law.

8—Insertion of sections 54CA and 54CB

New sections 54CA and 54CB are inserted:

54CA—Authorised disclosure to particular entities for data sharing purposes

This section authorises AEMO to disclose protected information to certain entities if the disclosure is for a data sharing purpose.

54CB—Disclosure of protected information by officer or employee of, or consultant to, AEMO

This section authorises the disclosure of protected information by a person in the ordinary course of carrying out functions as an officer or employee of, or consultant to, AEMO.

9—Insertion of section 90EE

New section 90EE is inserted

90EE—South Australian Minister to make initial Rules relating to data access

The South Australian Minister is authorised to make initial Rules relating to data access.

Part 3—Amendment of National Gas Law

10—Amendment of section 91A—AEMO’s statutory functions

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

11—Amendment of section 91FD—Use of information

12—Amendment of section 91G—Protected information

13—Amendment of section 91GC—Disclosure required or permitted by law etc

14—Insertion of sections 91GCA and 91GCB

91GCA—Authorised disclosure to particular entities for data sharing purposes

91GCB—Disclosure of protected information by officer or employee of, or consultant to, AEMO

Debate adjourned on motion of Hon. L.A. Henderson.