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House of Assembly - Fifty-First Parliament, Third Session (51-3)
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NATIONAL GAS (SOUTH AUSTRALIA) (NATIONAL GAS LAW—AUSTRALIAN ENERGY MARKET OPERATOR) AMENDMENT BILL

Introduction and First Reading

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts) (12:01): Obtained leave and introduced a bill for an act to amend the National Gas (South Australia) Act 2008. Read a first time.

Second Reading

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts) (12:02): 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 again delivering on a key energy commitment through new legislation to improve the governance arrangements for the Australian energy sector, for the benefit of South Australians and all Australians.

In April 2007, the Council of Australian Governments (COAG) agreed to establish a single, industry-funded national energy market operator, to be called the Australian Energy Market Operator (AEMO), for both electricity and gas to strengthen the national character of energy market governance. This Bill and the accompanying amendments to the National Electricity (South Australia) Act 1996 implement this commitment.

These amendments seek to realise these gains with minimal changes to the existing regulatory frameworks. AEMO will perform a range of new functions which include the publication of the Gas Statement of Opportunities (GSOO).

These amendments deal with the functions currently performed by the Gas Market Company (GMC), Queensland Gas Retail Market Operator (GRMO), the South Australian operations of the Retail Energy Market Company (REMCo) and Victorian Energy Networks Corporation's (VENCorp) gas specific functions along with the new GSOO function. The remaining new functions, common to both electricity and gas, such as Fees and Cost Recovery; Information Gathering; Protected Information; and Immunities are dealt with in the second reading speech on amendments to the National Electricity (South Australia) Act 1996.

Gas Statement of Opportunities

A major new AEMO function will be the preparation of the GSOO. The GSOO proposal has been developed by the gas industry through the Ministerial Council on Energy's Gas Market Leaders Group (GMLG). It is intended to perform a similar role for the gas market as the electricity Statement of Opportunities (SOO) performs for the National Electricity Market.

The content of the GSOO is defined in s91D of the National Gas Law (NGL). It is intended that it will provide a 10 year outlook, consistent with the electricity SOO, and a longer term view to a 20 year horizon of the gas sector with a focus on the ability of the sector to meet anticipated demand. It is proposed that AEMO will publish this statement from January 2010.

AEMO will be empowered to use new market information powers to support the preparation of the GSOO. In this regard the information gathering regime for the production of the GSOO will restrict the use of Market Information Orders and Market Information Notices to the classes of people currently required to provide information to the gas Bulletin Board. This will ensure all key market participants are captured and that the GSOO can be produced in a timely manner.

Wholesale and Retail Market Rules and Procedures

Jurisdictional market operators are currently responsible for operating retail gas markets in Queensland, New South Wales, the Australian Capital Territory, Victoria and South Australia. The retail markets are each supported by jurisdictional retail market rules. Additionally VENCorp operates a wholesale gas market in Victoria, supported by the Market System and Operation Rules (MSOR).

The amendments to the NGL transfer these retail market operator functions to AEMO and include broad empowering provisions for the National Gas Rules (NGR) to accommodate the current jurisdictional retail market rules into the new national governance structure by establishing Retail Market Procedures. The current jurisdictional retail market rules provide detailed technical processes to manage the transfer of retail gas customers. They will be transferred to the national framework essentially unchanged, except where necessary to apply the national governance framework, and will be administered by AEMO. The Victorian MSOR will largely be incorporated into the NGR to support the Declared System Function. Existing Western Australian retail gas market operations are not affected by these amendments.

These changes include a national process for amending Procedures, including the Wholesale and Retail Market Procedures, as well as a common dispute resolution mechanism. The new process for amending the gas Procedures will be included in the NGR. It is based on current processes for amending the Bulletin Board Procedures in Part 18, Division 4 of the NGR which will be removed in favour of the common Procedure change provisions. The provisions will require AEMO to conduct appropriate consultation on proposed changes to the Procedures, although to provide flexibility it is not proposed to prescribe the mechanism by which this would occur. Additionally a new provision in the NGR will allow AEMO to make urgent amendments to the Procedures, where failure to make the amendment in a timely manner would prejudice or threaten the operation of the gas markets, the supply of natural gas or the response to a gas emergency. The common Procedure change process recognises the expertise of the market operator at the technical and operational level and is designed to allow the procedures to be amended efficiently by the market operator and to retain industry engagement in the process. Operationally, it is intended that industry advisory bodies, similar to those in jurisdictions, will continue to be an important part of the change processes.

The proposed amendments to the NGR include the new common dispute resolution framework to apply to disputes between gas market participants and AEMO about the application and interpretation of the former MSOR and the Retail Market Procedures and any other matters that are currently subject to dispute processes under existing jurisdictional retail market rules. The proposed framework is based on Chapter 7 of the MSOR, incorporating a number of revisions to that chapter proposed following consultation by VENCorp in the Victorian market. The dispute resolution framework adopts a two stage approach intended to allow parties to resolve disputes informally in the first instance, with the help of the Adviser on mutual agreement of the parties, prior to assembling an expert dispute resolution panel. It should be noted that a new provision has been inserted into the NGR which requires the Australian Energy Regulator to appoint the Adviser as is currently done under Chapter 8 of the NER.

Declared System Functions

AEMO will take over the functions currently performed by VENCorp, which is a state owned entity within Victoria.

VENCorp's principal gas functions are the operation of the Victorian Wholesale Gas Market and related gas transmission system for the principal gas transmission system in Victoria.

The VENCorp gas functions are described generically in the Law in a manner that facilitates their application by a jurisdiction through its application legislation.

The VENCorp gas transmission system functions are described as 'declared system functions' that will apply only where the jurisdiction has invoked the relevant part of the NGL. Currently it is intended that only Victoria will apply these provisions in its application legislation.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause provides for the short title of the measure.

2—Commencement

The measure will be brought into operation by proclamation.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of National Gas (South Australia) Act 2008

4—Amendment of section 12—Specific regulation-making power

The regulation-making power under the Act is to be amended so that the regulations may deal with matters of a transitional nature on account of any amendments made from time to time to the National Gas Law. A comparable provision may be found in the National Electricity (South Australia) Act 1996. Consequential changes must also be made on account of the new functions to be conferred on AEMO.

5—Insertion of sections 20, 21 and 22

Proposed new section 20 is consistent with section 14 of the National Electricity (South Australia) Act 1996. Proposed new section 21 is necessary to ensure the smooth transmission of functions between REMCo and AEMO, especially in the period between 2 relevant changeover dates that are to apply for the purposes of the law in South Australia. Proposed new section 22 is necessary in view of the fact that AEMO is not due to assume all of REMCo's functions in South Australia on the day on which the NGL amendments come into operation.

Part 3—Amendment of National Gas Law

6—Amendment of section 2—Definitions

This clause provides new definitions for the definition section (section 2) of the National Gas Law.

7—Amendment of section 3—Meaning of civil penalty provision

This clause amends section 3 of the National Gas Law to add to the meaning of civil penalty provision.

8—Amendment of section 4—Meaning of conduct provision

This clause amends section 4 of the National Gas Law to add to the meaning of conduct provision.

9—Amendment of section 8—Meaning of service provider

This clause provides that AEMO is not taken to be a service provider merely because AEMO is controlling or operating all, or part, of a pipeline or scheme pipeline.

10—Amendment of section 22—Ministers of participating jurisdictions

This clause changes the reference to the name of the National Gas Access (WA) Act 2009.

11—Amendment of section 27—Functions and powers of the AER

This clause provides AER with additional powers in relation to compliance programs and breaches referred by AEMO.

12—Amendment of section 55—Further provision about manner in which information must be provided to AER or kept

This clause makes technical amendments to the AER's information gathering powers.

13—Amendment of section 74—Subject matter for National Gas Rules

This clause amends section 74, outlining the subject matter for National Gas Rules and including AEMO as a relevant body.

14—Insertion of Chapter 2, Parts 6 and 7

This clause inserts a Chapter into the National Gas Law, relating to the role of AEMO under the National Gas Law.

Part 6—Role of AEMO under National Gas Law

Division 1—General

91A—AEMO's statutory functions

This clause outlines AEMO's functions and provides that AEMO must have regard to the national gas objective in carrying them out.

91AB—AEMO's power to carry out statutory functions

This section gives AEMO the power to do all things necessary or convenient for or in connection with its statutory functions.

91AC—Delegation

This clause allows the delegation powers given to AEMO.

Division 2—AEMO's declared system functions

Subdivision 1—Preliminary

91B—Application of this Division

This clause outlines the application of Division 2 of Part 6.

91BA—AEMO's declared system functions

This clause outlines AEMO's declared system functions, the circumstances under which AEMO may trade in natural gas and enables AEMO to suspend a declared wholesale gas market (subject to the Rules).

91BB—AEMO to account to relevant Minister for performance of declared system functions

This clause requires AEMO to provide information about the performance of its declared system functions with respect to a jurisdiction if the Minister of that jurisdiction requests so in writing.

Subdivision 2—Power of direction

91BC—AEMO's power of direction

This clause provides AEMO with the power to make certain directions to participants in relation to reliability of supply, security or public safety, and provides for penalties for non-compliance with a direction.

91BD—Protection from liability

This clause prevents civil liability flowing from good faith compliance or purported compliance with a direction.

Subdivision 3—AEMO's relationship with transmission system service providers and facility owners

91BE—Service envelope agreement between AEMO and transmission pipeline service provider

This clause outlines the need for, and requirements of, transmission pipeline service providers to make a service envelope agreement with AEMO for the control, operation, safety, security and reliability of the declared transmission system, and provides the conditions under which a determination may be made by AER in relation to a dispute over a service envelope agreement.

91BF—Interconnection with facilities

This clause prohibits the connection, to the declared transmission system, of a facility, including; pipelines, gas storage facilities, gas fired electricity generators or other plant or equipment.

91BG—Operating agreement between AEMO and facility owner

This clause enables AEMO to require that an operating agreement be made with an owner of a facility before permitting that facility to be connected to a declared transmission system, and provides the conditions under which a determination may be made by AER in relation to a dispute over an operating agreement.

91BH—General principles governing determinations

This clause provides the general principles governing the nature of a determination by AER under this Division.

Subdivision 4—Declared wholesale gas market

91BI—Market participation

This clause lists the classes of person who participate in a declared wholesale gas market in a registrable capacity.

91BJ—Registration required for market participation

This clause outlines the requirement that, and conditions under which, market participants are to be registered.

91BK—Certificates of registration etc

This clause provides for certificates in relation to the registration or exemption from registration of market participants.

Subdivision 5—Wholesale Market Procedures

91BL—Wholesale Market Procedures

This clause enables AEMO to, in accordance with the Rules, make Wholesale Market Procedures.

91BM—Nature of Wholesale Market Procedures

This clause outlines the requirements around making the Wholesale Market Procedures.

91BN—Compliance with Wholesale Market Procedures

This clause outlines the need for AEMO and applicable parties to comply with a Wholesale Market Procedure.

Subdivision 6—Ownership of gas in declared transmission system

91BO—Ownership of gas

This clause requires AEMO to make rules, as part of the Wholesale Market Procedures, for determining the ownership of gas in the declared transmission system and for resolving disputes about ownership.

91BP—Title to gas

This clause requires anyone injecting, or tendering to inject, gas into the transmission system to have title to that gas and for the gas to be free of encumbrance at the point of injection.

Subdivision 7—Immunity

91BQ—Immunity

This clause grants immunity from civil liability for failures by protected persons to allow or make available injections in, or withdrawals out of, the declared transmission system where as a result of accident or cause beyond the protected person's control. Protected persons are AEMO and service providers for the whole or a part of the declared transmission system.

91BR—Immunity in dealing with an emergency

This clause excludes civil monetary liability from attaching to AEMO or AEMO officers in dealing with an emergency in good faith.

Division 3—Information etc to be provided to Ministers

91C—Ministerial request

This clause enables MCE or Ministers of participating jurisdictions to ask AEMO for information.

91CA—Compliance with request

This clause requires AEMO to comply with a request under this Division, and mandates that protected information may only be disclosed under such a request if authorised under this Law or the Rules.

91CB—Quarterly report

This clause requires AEMO to report quarterly to MCE on requests made under this Division, summarising each request and by whom it was made.

Division 4—Gas statement of opportunities

91D—Object and content of gas statement of opportunities

This clause outlines the object and content of the gas statement of opportunities.

91DA—AEMO's obligation in regard to gas statement of opportunities

This clause provides that AEMO must prepare, periodically review, revise, and publish the gas statement of opportunities in accordance with the Rules.

Division 5—Fees and charges

91E—AEMO fees and charges

This clause enables AEMO to determine and levy fees and charges, on a non-profit basis to enable costs over time to approximate revenue.

Division 6—Information gathering

91F—Information gathering powers

This clause enables AEMO to make orders, either to persons or a class of persons, requiring the provision of certain information in relation to specified functions.

91FA—Making and publication of general market information order

This clause provides the conditions for making a general market information order, including consultation and publication requirements.

91FB—Service of market information notice

This clause provides the conditions for making a market information order to a person, including consultation and publication requirements.

91FC—Compliance with market information instrument

This clause outlines the need for, and conditions surrounding, compliance with a market information order and protects a person for civil liability for compliance.

91FD—Use of information

This clause enables AEMO to use any information obtained for any purpose connected with the exercise of AEMO's statutory functions, subject to this Law, and the Rules, Regulations and Procedures.

91FE—Providing false or misleading information

This clause provides penalties for knowingly providing false or misleading information in response to a market information order.

Division 7—Protected information

Subdivision 1—AEMO's obligation to protect information

91G—Protected information

This clause requires AEMO to prevent information given to it in confidence or in connection with its statutory duties from being used or disclosed in a way contrary to this Law, the Rules, Procedures or Regulations.

Subdivision 2—Disclosure of protected information held by AEMO

91GA—Authorised disclosure of protected information

This clause authorises AEMO to disclose protected information in accordance with this Subdivision.

91GB—Disclosure with prior written consent

This clause authorises AEMO to disclose protected information if it has the written consent of the person from whom the information was obtained.

91GC—Disclosure required or permitted by law etc

This clause authorises AEMO to disclose protected information under certain laws or to certain bodies and the use of that information in connection with the performance of functions or exercise of powers of that body.

91GD—Disclosure for purposes of court and tribunal proceedings

This clause authorises AEMO to disclose protected information for the purposes of court or tribunal proceedings.

91GE—Disclosure of document with omission of protected information

This clause enables AEMO to disclose documentation with both protected and unprotected information by omitting the protected information.

91GF—Disclosure of non-identifying information

This clause enables AEMO to disclose protected information provided the information and its disclosure cannot lead to the identification of the person to whom that information relates.

91GG—Disclosure of protected information for safety, proper operation of the market etc

This clause enables AEMO to disclose protected information when necessary for the safety, reliability, security and supply of gas or a pipeline, for the proper operation of a regulated gas market or where the information is in the public domain.

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

This clause enables, and outlines the conditions under which, AEMO to disclose protected information if disclosure would not detriment the person who has given it or a person from whom that person received it, or where the public benefit of disclosure outweighs that detriment.

Division 8—Obligation to make payments

91H—Obligations under Rules or Procedures to make payments

This clause outlines the obligation and timeframes under which a registered participant, or AEMO, must make payments owed under the Rules or Procedures.

Division 9—AEMO's statutory funds

91J—Definitions

This clause defines Rule fund in this Division.

91JA—AEMO's Rule funds

This clause vests existing Rule funds in AEMO and makes AEMO responsible for the administration of Rule funds.

91JB—Payments into and out of Rule funds

This clause requires certain payments under the Rules and Procedures, including income from investment of money in a Rule fund, to be paid into that Rule fund, and requires payments out of a Rule fund to only be made in accordance with the Rules and Procedures or to pay liabilities or expenses of the Rule fund.

91JC—Investment

This clause enables AEMO to invest money held in a Rule fund subject to the exercise of care, diligence and skill.

Division 10—Immunity

91K—Immunity from liability

This clause grants immunity from civil monetary liability to AEMO and its officers and employees for any act or omission in the course of their duties, unless in bad faith or through negligence, and provides for a monetary limit to be set for liability in the event of negligence.

91KA—Supply interruption or disconnection in compliance with AEMO's direction

This clause grants immunity from civil monetary liability to a distributor who interrupts or disconnects the supply of natural gas to an end user in compliance with an AEMO direction, unless in bad faith or through negligence, and provides for a monetary limit to be set for liability in the event of negligence.

91KB—Immunity in relation to use of computer software

This clause grants immunity to AEMO, former gas market operators and their officers, employees and agents for loss suffered as a consequence of the use of computer software to operate a gas market.

91KC—Immunity from liability—dispute resolution

This clause grants immunity from civil monetary liability to arbitrators, mediators, managers and facilitators of dispute resolution processes, unless done in bad faith.

Part 7—Regulation of retail gas markets

Division 1—Registration

91L—Retail gas markets

This clause defines retail gas market and regulated retail gas market.

91LA—Retail market participation

This clause outlines who is a registrable market participant.

91LB—Registration required for market participation

This clause requires, unless exempt, market participants to be registered and exempts AEMO from registration for performing statutory functions.

91LC—Certificates of registration etc

This clause provides for certificates of registration or exemption to be made.

Division 2—Retail Market Procedures

91M—Retail Market Procedures

This clause allows AEMO to make Retail Market Procedures in accordance with the Rules.

91MA—Nature of Retail Market Procedures

This clause outlines the nature of a Retail Market Procedure, directed at the regulation of a retail gas market, and prevents Retail Market Procedures from creating an offence or providing for criminal or civil liability.

91MB—Compliance with Retail Market Procedures

This clause requires, and outlines the conditions for, compliance with Retail Market Procedures.

15—Amendment of section 98—Initial classification decision to be made as part of recommendation

This clause replaces pipeline classification criterion with jurisdictional determination criteria.

16—Substitution of heading to Chapter 7, Part 1

This clause makes consequential amendments as a result of AEMO becoming the Bulletin Board operator.

17—Substitution of sections 217 and 218

217—AEMO to be Bulletin Board operator

This clause gives AEMO responsibility for the operation of the Natural Gas Services Bulletin Board.

218—AEMO's obligation to maintain Bulletin Board

This clause outlines AEMO's obligations in relation to maintaining the Bulletin Board.

18—Amendment of section 219—AEMO's other functions as operator of Natural Gas Services Bulletin Board

This clause makes consequential amendments to section 219 as a result of AEMO becoming the Bulletin Board operator.

19—Repeal of section 220

This clause repeals section 220. It is no longer necessary due to proposed new section 91AB.

20—Repeal of section 221

This clause repeals section 221. It is no longer necessary due to the new arrangements that are to apply by virtue of AEMO assuming responsibility for the operation of the Bulletin Board.

21—Amendment of section 222—Fees for services provided

This clause makes consequential amendments to section 222 as a result of AEMO becoming the Bulletin Board operator.

22—Amendment of section 223—Obligation to give information to AEMO

This clause makes consequential amendments to section 223 as a result of AEMO becoming the Bulletin Board operator.

23—Amendment of section 225—Giving AEMO false or misleading information

This clause makes consequential amendments to section 225 as a result of AEMO becoming the Bulletin Board operator.

24—Amendment of section 226—Immunity of persons giving information to AEMO

This clause makes consequential amendments to section 226 as a result of AEMO becoming the Bulletin Board operator.

25—Substitution of Chapter 7, Part 3

Part 3—BB Procedures

227—BB Procedures

This clause enables AEMO to make BB Procedures.

228—Nature of BB Procedures

This clause outlines the nature of a BB Procedure, directed at the regulation of the Natural Gas Services Bulletin Board, and prevents BB Procedures from creating an offence or providing for criminal or civil liability.

228A—Compliance with BB Procedures

This clause mandates compliance with BB Procedures, provides that an applicable access agreement overrules a BB Procedure and allows AEMO to direct in writing compliance with a BB Procedure.

26—Amendment of section 229—Instituting civil proceedings under this Law

This clause makes consequential amendments to section 229 to include the Procedures.

27—Amendment of section 230—Time limits within which proceedings may be instituted

This clause makes consequential amendments to section 230 to include the Procedures.

28—Amendment of heading to Chapter 8, Part 2

This clause makes consequential amendments to the heading of Chapter 8, Part 2, to include the Procedures.

29—Amendment of section 231—AER proceedings for breaches of this Law, Regulations or the Rules that are not offences

This clause makes consequential amendments to section 231 to include the Procedures.

30—Substitution of section 243

243—Applications for judicial review of AEMO's decisions

This clause allows judicial review of AEMO decisions or determinations under this Law, the Rules or Procedures.

31—Amendment of section 244—Definitions

This clause alters the definitions for this Part to include AEMO's ability to make a decision to disclose information under section 91GH.

32—Amendment of heading to Chapter 8, Part 5, Division 3

This clause makes consequential amendments as a result of AEMO's ability to make a decision to disclose information under section 91GH.

33—Amendment of section 263—Application for review

This clause makes consequential amendments as a result of AEMO's ability to make a decision to disclose information under section 91GH.

34—Amendment of section 265—Determination in the review

This clause makes consequential amendments as a result of AEMO's ability to make a decision to disclose information under section 91GH.

35—Amendment of section 266—Tribunal must be taken to have affirmed decision if decision not made within time

This clause makes consequential amendments as a result of AEMO's ability to make a decision to disclose information under section 91GH.

36—Substitution of section 267

267—Assistance from AER or AEMO

This clause makes consequential amendments as a result of AEMO's ability to make a decision to disclose information under section 91GH.

37—Insertion of Chapter 8, Part 5A

Part 5A—Dispute resolution under the Rules

270A—Interpretation

This clause defines references to procedural Parts or review provisions of jurisdictional commercial arbitration acts according to the jurisdiction in which the Law is applied and a rule dispute is heard and determined.

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

This clause provides the manner in which the jurisdictional commercial arbitration acts are to apply to proceedings before dispute resolution panels.

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

This clause enables appeals on questions of law from decisions or determinations of dispute resolution panels and decisions that are classified under the Rules as an appealable decision.

38—Amendment of section 290—Definitions

This clause makes consequential amendments as a result of AEMO taking over the role of certain other bodies.

39—Insertion of section 294A

294A—South Australian Minister to make initial Rules and Procedures related to AEMO's functions under this Law

This clause enables, and outlines the conditions on which, the South Australian Minister to make initial Rules and Procedures, upon recommendation by MCE.

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

This clause limits the persons who may initiate the making of a new Rule by the AEMC and outlines limits to the AEMC's rule-making power.

41—Amendment of section 308—Draft Rule determination

This rule specifies that the draft of the Rule to be made need not be the same as the draft of the proposed Rule to which the notice under section 303 relates.

42—Amendment of section 310—Pre-final Rule determination hearing may be held

This clause makes technical amendments to section 310.

43—Substitution of section 312

312—Proposal to make more preferable Rule

This clause enables the AEMC to make a draft or final Rule determination with respect to what it considers to be a more preferable Rule, in view of the response to a draft Rule determination.

44—Insertion of section 328A

328A—Disclosure of information that has entered the public domain

This clause authorises the AER to disclose information given to it in confidence, in compliance with this Law or the Rules or voluntarily, if the information is already in the public domain.

45—Amendment of section 329—Disclosure of confidential information authorised if detriment does not outweigh public benefit

This clause makes consequential amendments as a result of the insertion of section 328A.

46—Amendment of section 332—Failure to make a decision under this Law or the Rules within time does not invalidate the decision

This clause alters the definition of regulatory scheme decision maker to include AEMO.

47—Amendment of Schedule 1—Subject matter for the National Gas Rules

This clause amends the subject matter for the National Gas Rules to include AEMO's new role and powers and dispute resolution processes.

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

This clause makes consequential amendments as a result of AEMO's role as the Bulletin Board operator and ability to issue evidentiary certificates.

49—Amendment of Schedule 3—Savings and transitionals

Part 11—Transitional provisions related to AEMO's new functions and its assumption of role of former gas market operators

Division 1—Preliminary

54—Definitions

This clause provides definitions for Part 11.

Division 2—General provisions

55—Saving operation of superseded jurisdictional rules

This clause provides that, subject to this Schedule, the new rules do not act retrospectively by affecting the previous proper operation of, or penalties or proceedings and acquisition of rights, privileges or liabilities in relation to, the superseded jurisdictional rules.

56—Transitional provisions governing accrued and accruing rights, liabilities etc

This clause provides that references to or actions taken under the superseded rules are to be taken to be a reference to the corresponding current rules, and that rights or liabilities accruing, or liabilities, penalties or obligations incurred, under the superseded rules continue under the corresponding provisions of the current rules.

57—Investigations

This clause enables the AER to commence and continue an investigation into a possible breach of the superseded rules as if it were a breach of this Law and exercise all its corresponding powers.

58—Proceedings for breach of superseded jurisdictional rules

This clause enables the AER to commence and continue proceedings with respect to a breach of the superseded rules, with those proceedings being subject to any conditions provided by the superseded rules.

59—Dispute resolution

This clause provides that disputes arising from circumstances occurring before the changeover date are to be dealt with as a rule dispute, except for disputes arising from circumstances occurring in Queensland or Victoria, which are to be dealt with in accordance with the superseded jurisdictional rules.

60—Registered participants

This clause provides for the automatic registration of certain persons, or persons of a class, specified in the Regulations.

61—Instruments made by former gas market operators

This clause provides for instruments made by former gas market operators in force at the changeover date to continue in force subject to amendment by AEMO and provided the instruments could have been made under the current rules.

62—Rule change proposals

This clause provides for a rule change proposal under the superseded rules to be treated as a request for the making of a Rule or Procedure (as the case requires), and enables AEMO to dispense with particular steps in the process if no equivalent step existed, or has already been taken, under the superseded rules.

63—Incompatibility between request for the making of Rule or Procedure and Minister-initiated Rule or Procedure

This clause enables AEMC or AEMO (as the case requires) to reject a request to make a Rule or Procedure where it is to be revoked under a Minister-initiated Rule or Procedure that has been made but is not yet in operation. This clause also enables AEMC or AEMO to treat a request for an amendment of a Rule or Procedure, that is to be amended by a Minster-initiated Rule or Procedure, as a request relating to that Rule as amended.

64—Natural Gas Services Bulletin Board

This clause provides for the continuation of the Natural Gas Services Bulletin Board, under AEMO, in the same form.

65—Publication of notices etc

This clause provides that notices published by AEMO on the website of a former gas market operator fulfil publication of notice requirements.

66—Rights under change of law provisions not to be triggered by amendments to this Law etc

This clause provides that rights under change of law provisions are not to be triggered by amendments to this Law.

Division 3—Transfer of assets and liabilities of GMC and AEMO T

67—Transfer of assets and liabilities

This clause provides for the transfer, by instrument in writing from the NSW Minister, of any of GMC's assets to AEMO and the ability, where done in error, for the NSW Minister to 'claw back' such assets.

68—Transfer of AEMO T's assets and liabilities

This clause enables the South Australian Minister to transfer the entirety of AEMO T's assets and liabilities to AEMO by Ministerial Gazette notice.

69—Effect of relevant transfer order

This clause outlines the effect of a transfer or claw-back order under section 67 and a Ministerial Gazette notice under section 68.

70—Continued effect of certain acts by GMC or AEMO T

This clause provides that any acts or omissions by GMC or AEMO T in relation to assets or liabilities transferred to AEMO, and still in effect at the time of transfer, are taken to be done by AEMO.

71—Continuation of proceedings

This clause provides for proceedings by or against GMC or AEMO T, which are commenced before 1 July 2009, to be continued and completed by or against AEMO.

72—Validity and effect of things done under this Division

This clause outlines the limits to the validity and effect of things done under this Division, and requires AEMO to keep GMC and AEMO T's books for 7 years and allow access to them by GMC and AEMO T.

73—Evidence of transfer

This clause provides for written notice, by the NSW Minister or South Australian Minister (as the case requires), of the transfer of assets or liabilities to GMC or AEMO T to be conclusive evidence of that transfer.

74—Obsolete references

This clause provides for a reference in a document to GMC or to AEMO T, in connection with an asset or liability transferred to AEMO, to taken to be a reference to AEMO.

Division 4—Acceptance of transfer from former gas market operators and AEMO T

75—Parties to transfer must do anything necessary to perfect transfer

This clause requires AEMO to accept any assets or liabilities to be transferred to it from GMC or AEMO T, and requires AEMO, AEMO T and GMC to take any steps necessary to perfect that transfer.

76—Corporations Act displacement

This clause provides for any provision in this Part that is inconsistent with the Corporations Act 2001 (Cth) to be a Corporations legislation displacement provision, resulting in the Corporations Act 2001 not applying to the extent of any inconsistency.

Division 5—Fees and charges

77—AEMO's fees and charges

This clause requires AEMO, for 2 years, to continue recovering fees and charges on the same bases as was done by the former gas market operator whose functions have been assumed, and for the third year to continue in the same manner subject to a review by AEMO.

78—Establishment expenditure

This clause enables AEMO to recover its establishment costs, over a period of 4 years from the changeover date, as a component of the participant fees payable by users and non-scheme pipeline users.

79—Expenditure on gas statement of opportunities

This clause provides for expenditure on the gas statement of opportunities made before, or within 3 years after, the commencement date to be treated as expenditure on a major gas project, and for costs to be recovered on the same bases as under section 78 of this Schedule.

Division 6—Information

80—Transferred information

This clause provides that AEMO must deal with information acquired from AEMC T and GMC on the same bases as was required by AEMO T or GMC, and must allow AEMO T and GMC representatives access to that information.

81—Calculations

This clause requires calculations made by AEMO T or GMC still in effect at the changeover date to be taken to have made by AEMO.

Division 7—Deferral of relevant legislative innovations in Queensland

82—Queensland Minister's power to defer commencement of relevant legislative innovations

This clause provides for the Queensland Minister to defer the commencement in Queensland of specified parts or provisions of the relevant legislative innovations.

Division 8—Special transitional provisions for South Australia

83—Definitions

This clause provides definitions for this Division of this Schedule.

84—Transitional contracts

This clause provides for contracts prescribed in the appendices to the South Australian Retail Market Rules in force at the changeover date to continue in force under the corresponding provisions of the Retail Market Procedures, with references to REMCo taken as references to AEMO.

85—Contractual provisions for dispute resolution

This clause provides for contractual provisions for dispute resolutions to take precedence over any provisions in this Law or the Rules.

86—Risk allocation

This clause provides for certain clauses of the Retail Market Procedures to take precedence over certain provisions of this Law and the Rules to the extent of any inconsistency.

Debate adjourned on motion of Mr Williams.

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