New South Wales: National Electricity (NSW)

National Electricity (NSW) Law No 20a of 1997 Editorial note. The National Electricity Law is applied and modified as a law of NSW by the NSW National Electricity (New South Wales) Act 1997. This version is the Law as it currently applies in NSW. Part 1 Preliminary 1 Citation This Law may be referred to as the National Electricity (NSW) Law. 2 Definitions (1) In this Law— access determination means a determination of the AER under Part 10; access dispute has the meaning given by section 2A; additional advisory functions—AEMO's additional advisory functions are as set out in section 50B(1); additional Minister initiated Rules means Rules made under Part 7 Division 2 (other than section 90) by the Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia; adoptive jurisdiction means (according to context)— (a) a participating jurisdiction for which AEMO is authorised to exercise its additional advisory functions; or (b) a participating jurisdiction for which AEMO is authorised to exercise its declared network functions; AEMC means the Australian Energy Market Commission established by section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia; AEMC initiated Rule means a Rule of the kind referred to in section 91(2); AEMO amendments means— (a) the amendments to this Law made by the National Electricity (South Australia) (National Electricity Law—Australian Energy Market Operator) Amendment Act 2009; and (b) the amendments to the Rules made by the National Electricity (South Australia) (National Electricity Rules—Australian Energy Market Operator) Amendment Rules 2009; AER means the Australian Energy Regulator established by section 44AE of the Competition and Consumer Act 2010 of the Commonwealth; AER economic regulatory decision means a decision (however described) of the AER under this Law or the Rules performing or exercising an AER economic regulatory function or power; AER economic regulatory function or power means a function or power performed or exercised by the AER under this Law or the Rules (other than making a rate of return instrument) that relates to— (a) the economic regulation of services provided by— (i) a regulated distribution system operator by means of, or in connection with, a distribution system; or (ii) a regulated transmission system operator or AEMO by means of, or in connection with, a transmission system; or (b) the preparation of a network service provider performance report; or (c) the making of a transmission determination or distribution determination; or (d) an access determination; Note— The application of a rate of return instrument under this Law is an AER economic regulatory function or power. See section 18V(2). AER market liquidity obligation functions means the functions conferred on the AER under section 15(1)(eba); AER trial waiver functions means the functions conferred on the AER under Part 3 Division 1D; AER wholesale market monitoring functions— the AER wholesale market monitoring functions are as set out in section 18C(1); AER wholesale market reporting functions— the AER wholesale market reporting functions are as set out in section 18C(2); annual turnover has the same meaning as in section 2(1) of Schedule 2 to the Competition and Consumer Act 2010 of the Commonwealth; application Act means an Act of a participating jurisdiction that applies, as a law of that jurisdiction, this Law or any part of this Law; associate in relation to a person has the same meaning it would have under Division 2 of Part 1.2 of the Corporations Act 2001 of the Commonwealth if sections 13, 16(2) and 17 did not form part of that Act; augmentation of a transmission or distribution system means work to enlarge the system or to increase its capacity to transmit or distribute electricity; augmentation connection agreement means an agreement for connecting an augmentation to a declared shared network; Australian Energy Market Operator or AEMO means Australian Energy Market Operator Limited (ACN 072 010 327); Note— Before its change of name, AEMO was known as NEMMCO. CDR data has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth; CDR provisions has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth; changeover date means 1 July 2009 or some other date fixed as the changeover date by Ministerial Gazette notice; civil monetary liability means a liability for damages, compensation or any other monetary amount that can be recovered by way of civil proceedings but does not include a liability for a civil penalty or an infringement penalty under this Law or a liability for the costs of a proceeding; civil penalty—see section 2AB; civil penalty provision—see section 2AA(1); conduct provision—see section 2AA(2); connection service means a connection service within the meaning of the Rules; constituent components, in relation to a relevant regulatory decision, means the matters that constitute the elements or components of the relevant regulatory decision and on which that relevant regulatory decision is based and includes— (a) matters that go to the making of the relevant regulatory decision; and (b) decisions made by the AER for the purposes of the relevant regulatory decision; Court means— (a) where this Law applies as a law of the Commonwealth, the Federal Court; (b) where this Law applies as a law of a participating jurisdiction that is a State or a Territory, the Supreme Court of that jurisdiction; data holder has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth; derogation means a jurisdictional derogation or participant derogation; declared network functions—AEMO's declared network functions are as set out in section 50C(1); declared power system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction; declared shared network of an adoptive jurisdiction means the adoptive jurisdiction's declared transmission system excluding any part of it that is a connection asset within the meaning of the Rules; declared transmission system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction and includes any augmentation of the defined declared transmission system; declared transmission system operator of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction; designated energy sector means an energy sector designated under section 56AC of the Competition and Consumer Act 2010 of the Commonwealth; direct control network service has the meaning given by section 2B; Dispute resolution panel means a person or panel of persons appointed under the Rules to hear and determine a rule dispute; distribution determination means a determination of the AER under the Rules that regulates any 1 or more of the following— (a) the terms and conditions for the provision of electricity network services that are the subject of economic regulation under the Rules including the prices an owner, controller or operator of a distribution system charges or may charge for those services; (b) the revenue an owner, controller or operator of a distribution system earns or may earn from the provision by that owner, controller or operator of electricity network services that are the subject of economic regulation under the Rules; distribution reliability standard means a standard imposed by or under the Rules or jurisdictional electricity legislation relating to the reliability or performance of a distribution system; distribution service standard means a standard relating to the standard of services provided by a regulated distribution system operator by means of, or in connection with, a distribution system imposed— (a) by or under jurisdictional electricity legislation; or (b) by the AER in accordance with the Rules; distribution system means the apparatus, electric lines, equipment, plant and buildings used to convey or control the conveyance of electricity that the Rules specify as, or as forming part of, a distribution system and includes a regulated stand-alone power system to the extent provided by the Rules; distribution system safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to— (a) the safe distribution of electricity in that jurisdiction; or (b) the safe operation of a distribution system in that jurisdiction; draft Rule determination means a determination of the AEMC under section 99; ECA amendments means the amendments to this Law made by the Statutes Amendment (Energy Consumers Australia) Act 2014 of South Australia; effective competition, for Part 3 Division 1A—see section 18B; electricity contract, for Part 3 Division 1A—see section 18A; electricity network service means a service provided by means of, or in connection with, a transmission system or distribution system; electricity services means services that are necessary or incidental to the supply of electricity to consumers of electricity, including— (a) the generation of electricity; (b) electricity network services; (c) the sale of electricity; end user means a person who acquires electricity for consumption purposes, and includes a retail customer; Energy Consumers Australia or ECA means the company incorporated, or to be incorporated, by the name Energy Consumers Australia Limited; energy ombudsman has the same meaning as in the National Energy Retail Law; Energy Security Board means the Board established by the MCE on 14 July 2017 to provide the MCE with advice for the purposes of— (a) whole-of-system oversight for energy security and reliability of the national electricity market; and (b) improving long-term planning for the national electricity market; Federal Court means the Federal Court of Australia; final Rule determination means a determination of the AEMC under section 102; financial risk management product, for Part 3 Division 1A—see section 18A; form of regulation factors has the meaning given by section 2F; general market information order means an order under section 53(1)(a) requiring information from persons of a class specified in the order; general regulatory information order has the meaning given by section 28C; infrastructure planner has the same meaning as in the Electricity Infrastructure Investment Act 2020. initial National Electricity Rules means the National Electricity Rules made under section 90; innovative trial principles—see section 7B; interconnected national electricity system means the interconnected transmission and distribution system in this jurisdiction and in the other participating jurisdictions used to convey and control the conveyance of electricity to which are connected— (a) generating systems and other facilities; and (b) loads settled through the wholesale exchange operated and administered by AEMO under this Law and the Rules; jurisdictional derogation means a Rule made at the request of a Minister of a participating jurisdiction that— (a) exempts, in a specified case or class of cases, a person or a body performing or exercising a function or power, or conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or a class of such a person or body, or AEMO, from complying with a provision, or a part of a provision, of the Rules in the participating jurisdiction to which the derogation relates; or (b) modifies or varies the application of a provision of the Rules (with or without substitution of a provision of the Rules or a part of a provision of the Rules) to a person or a body performing or exercising a function or power, or conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or a class of such a person or body, or AEMO, in the participating jurisdiction to which the derogation relates; jurisdictional electricity legislation means an Act of a participating jurisdiction (other than national electricity legislation), or any instrument made or issued under or for the purposes of that Act, that regulates the generation, transmission, distribution, supply or sale of electricity in that jurisdiction; jurisdictional regulator means— (a) if this Law is applied as a law of the State of New South Wales— (i) the Independent Pricing and Regulatory Tribunal of New South Wales established by section 5(1) of the Independent Pricing and Regulatory Tribunal Act 1992 of New South Wales; or (ii) if the functions or powers of the Independent Pricing and Regulatory Tribunal of New South Wales under this Law are transferred to the AER by or under a law of New South Wales, the AER; (b) if this Law is applied as a law of the State of Victoria— (i) the Essential Services Commission established by section 7(1) of the Essential Services Commission Act 2001 of Victoria; or (ii) if the functions or powers of that Essential Services Commission under this Law are transferred to the AER by or under a law of Victoria, the AER; (c) if this Law is applied as a law of the State of Queensland— (i) the Queensland Competition Authority established by section 7 of the Queensland Competition Authority Act 1997 of Queensland; or (ii) if the functions or powers of the Queensland Competition Authority under this Law are transferred to the AER by or under a law of Queensland, the AER; (d) if this Law is applied as a law of the State of South Australia— (i) the Essential Services Commission established by section 4(1) of the Essential Services Commission Act 2002 of South Australia; or (ii) if the functions or powers of that Essential Services Commission under this Law are transferred to the AER by or under a law of South Australia, the AER; (e) if this Law is applied as a law of the Australian Capital Territory— (i) the Independent Competition and Regulatory Commission for the Australian Capital Territory established by section 5(1) of the Independent Competition and Regulatory Commission Act 1997 of the Australian Capital Territory; or (ii) if the functions or powers of the Independent Competition and Regulatory Commission for the Australian Capital Territory under this Law are transferred to the AER by or under a law of the Australian Capital Territory, the AER; (f) if a person or body referred to in paragraphs (a) to (e) is abolished under an Act of a participating jurisdiction and another person or body is established under an Act of that participating jurisdiction with functions and powers that correspond to the functions and powers of the person or body referred to in paragraphs (a) to (e), that other person or body; (g) if the functions and powers of a person or body referred to in paragraphs (a) to (e) are transferred to another person or body established under an Act of the relevant participating jurisdiction, that other person or body; (h) any other person or body established under an Act of a participating jurisdiction that is prescribed by the Regulations as a jurisdictional regulator of that jurisdiction; jurisdictional system security coordinator means a person appointed under section 110; liable entity—see section 14D; listed corporation has the meaning given by section 9 of the Corporations Act 2001 of the Commonwealth; market information instrument means a general market information order or a market information notice; market information notice means a notice under section 53(1)(b) requiring information from the person to whom the notice is addressed; market liquidity obligation means the obligation imposed by Rules made under Schedule 1 item 6G and includes matters related to the obligation; market monitoring information notice, for Part 3 Division 1A—see section 18EC; market monitoring information order, for Part 3 Division 1A—see section 18EC; MCE means the group of Ministers (constituting or forming part of a Ministerial Council, Standing Council of Ministers or similar body (however described)) responsible for energy matters at a national level comprising 9 Ministers as follows— (a) 1 Minister from the Commonwealth; (b) 1 Minister from each State (totalling 6 Ministers); (c) 1 Minister from each Territory (totalling 2 Ministers), acting in accordance with its own procedures; MCE directed review means a review conducted by the AEMC under Division 4 of Part 4; MCE statement of policy principles means a statement of policy principles issued by the MCE under section 8; Ministerial Gazette notice means a notice in the South Australian Government Gazette published by the South Australian Minister on the recommendation of the MCE; Ministerial pilot metering determination means a determination made under section 118B; Ministerial smart metering determination means— (a) (Repealed) (b) a Ministerial pilot metering determination; Minister of a participating jurisdiction means a Minister who is a Minister of a participating jurisdiction within the meaning of section 6; monitored market, for Part 3 Division 1A—see section 18A; National Electricity Code means the code of conduct called the National Electricity Code approved, in accordance with section 6(1) of the old National Electricity Law, as the initial Code for the purposes of that Law, and as amended from time to time in accordance with its terms and the old National Electricity Law; national electricity legislation means— (a) the National Electricity (South Australia) Act 1996 of South Australia and Regulations in force under that Act; and (b) the National Electricity (South Australia) Law; and (c) an Act of a participating jurisdiction (other than South Australia) that applies, as a law of that jurisdiction, any part of— (i) the Regulations referred to in paragraph (a); or (ii) the National Electricity Law set out in the Schedule to the Act referred to in paragraph (a); and (d) the National Electricity Law set out in the Schedule to the Act referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia); and (e) the Regulations referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia); national electricity market means— (a) the wholesale exchange operated and administered by AEMO under this Law and the Rules; and (b) the national electricity system; national electricity objective means the objective set out in section 7; National Electricity Rules or Rules means— (a) the initial National Electricity Rules; and (ab) additional Minister initiated Rules; and (ac) section 27/41 rules, except in Parts 4 and 7; and (b) Rules made by the AEMC under this Law, including Rules that amend or revoke— (i) the initial National Electricity Rules or additional Minister initiated Rules; or (ii) Rules made by it; national electricity system means— (a) the generating systems and other facilities owned, controlled or operated in the participating jurisdictions connected to the interconnected national electricity system; and (b) the interconnected national electricity system; and (c) regulated stand-alone power systems; National Energy Retail Law means the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 of South Australia; National Energy Retail Rules has the same meaning as in the National Energy Retail Law; National Gas Law means the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008 of South Australia; National Gas Rules has the same meaning as in the National Gas Law; national transmission grid means the transmission systems that form part of the interconnected national electricity system; National Transmission Planner means AEMO acting in the performance of NTP functions; negotiated network service has the meaning given by section 2C; NEMMCO means National Electricity Market Management Company Limited (ACN 072 010 327); Note— NEMMCO becomes AEMO (without change of corporate identity). A reference to NEMMCO is a reference to AEMO before its change of name. network agreement means the agreement required by section 50D(1); network revenue or pricing determination means a distribution determination or a transmission determination; network service provider means a Registered participant registered for the purposes of section 11(2) that owns, controls or operates a transmission system or distribution system that forms part of the interconnected national electricity system or that owns, controls or operates a regulated stand-alone power system; network service provider performance report means a report prepared by the AER under section 28V; network service user means a user who is provided with an electricity network service; NTP functions means the functions described in section 49(2); offence provision means a provision of this Law the breach or contravention of which by a person exposes that person to a finding of guilt by a court; officer has the same meaning as officer has in relation to a corporation under section 9 of the Corporations Act 2001 of the Commonwealth; old National Electricity Law means the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia as in force from time to time before the commencement of section 12 of the National Electricity (South Australia) (New National Electricity Law) Amendment Act 2005 of South Australia; participant derogation means a Rule made at the request of a person who is conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or AEMO, that— (a) exempts, in a specified case or class of cases, that person or a class of person of which that person is a member, or AEMO, from complying with a provision, or a part of a provision, of the Rules, including a jurisdictional derogation; or (b) modifies or varies the application of a provision of the Rules, including a jurisdictional derogation, (with or without substitution of a provision of the Rules or a part of a provision of the Rules) to that person or class of person of which that person is a member, or AEMO; participating jurisdiction means a jurisdiction that is a participating jurisdiction within the meaning of section 5; power system security means the safe scheduling and dispatch, and operation and control, of the national electricity system (other than regulated stand-alone power systems); prospective network service user means a person who seeks or wishes to be provided with an electricity network service; protected information has the meaning given by section 54(1); rate of return instrument—see section 18I(2); Registered participant means a person who is registered as such by AEMO under this Law and the Rules or is registered as such by AEMO otherwise in accordance with the Rules; regulated distribution system operator means an owner, controller or operator of a distribution system— (a) who is a Registered participant; and (b) whose revenue from, or prices that are charged for, the provision of electricity network services are regulated under a distribution determination; regulated network service provider means— (a) a regulated distribution system operator; or (b) a regulated transmission system operator; regulated stand-alone power system—see section 6B; regulated transmission system operator means an owner, controller or operator of a transmission system— (a) who is a Registered participant; and (b) whose revenue from, or prices that are charged for, the provision of electricity network services are regulated under a transmission determination; Regulations means the regulations made under Part 4 of the National Electricity (South Australia) Act 1996 of South Australia that apply as a law of this jurisdiction; regulatory information instrument means a general regulatory information order or a regulatory information notice; regulatory information notice has the meaning given by section 28D; regulatory obligation or requirement has the meaning given by section 2D; regulatory payment has the meaning given by section 2E; relevant agreement, for Part 3 Division 1A—see section 18A; relevant court means any court of this jurisdiction; relevant regulatory decision means— (a) a network revenue or pricing determination that specifies a period to be a regulatory period for the purposes of the determination; or (b) any other determination (including a distribution determination or transmission determination) or decision of the AER that is prescribed by the Regulations to be a relevant regulatory decision, but does not include a decision of the AER made under Part 3 Division 6; reliability obligation civil penalty provision—see section 2AA(1a); reliability obligations means the obligations that apply to a liable entity under sections 14P(1) and (3) and 14R(2); Reliability Panel means the panel of persons established by the AEMC under section 38; retail customer means a person to whom electricity is sold by a retailer, and supplied in respect of connection points, for the premises of the person, and includes a person (or a person who is of a class of persons) prescribed by the Rules for the purposes of this definition; retailer means a person who is the holder of a retailer authorisation issued under the National Energy Retail Law in respect of the sale of electricity; Retailer Reliability Obligation means— (a) Part 2A of this Law; and (b) the provisions of the Rules that relate to Part 2A of this Law; Rule dispute means a dispute between persons in relation to a matter or thing arising under the Rules in respect of which the Rules provide that the dispute must be resolved in accordance with the Rules; revenue and pricing principles means the principles set out in section 7A; section 27/41 rule means a provision included in the Rules by operation of a regulation under the Electricity Infrastructure Investment Act 2020, section 27 or 41, or both. shared network capability service means a service described in section 50D(1) as a shared network capability service; shared transmission service means a service classified under the Rules as a shared transmission service; smart meter amendments means the amendments to this Law made by section 5 of the National Electricity (South Australia) (Smart Meters) Amendment Act 2009 of South Australia; statutory functions, in relation to AEMO, means functions or powers conferred under— (a) this Law or the Rules; or (b) the National Gas Law, the National Gas Rules, or related subordinate legislation; superseded jurisdictional rules means— (a) legislation (including subordinate legislation) of a participating jurisdiction regulating the electricity industry in that jurisdiction that— (i) was in force immediately before the changeover date; and (ii) is superseded by the AEMO amendments; and (b) a licence condition governing the activities of the licensee in, or in relation to, an electricity market in a participating jurisdiction— (i) in force immediately before the changeover date; and (ii) superseded by the AEMO amendments; and (c) a guideline, code, standard or other instrument governing the operation or regulation of an electricity market in a participating jurisdiction— (i) made or issued by the jurisdictional regulator; and (ii) in force immediately before the changeover date; and (iii) superseded by the AEMO amendments; Territory means the Australian Capital Territory or the Northern Territory; transmission determination means a determination of the AER under the Rules that regulates any 1 or more of the following— (a) the terms and conditions for the provision of electricity network services that are the subject of economic regulation under the Rules including the prices an owner, controller or operator of a transmission system charges or may charge for those services; (b) the revenue an owner, controller or operator of a transmission system earns or may earn from the provision by that owner, controller or operator of electricity network services that are the subject of economic regulation under the Rules; transmission reliability standard means a standard imposed by or under the Rules or jurisdictional electricity legislation relating to the reliability or performance of a transmission system; transmission service standard means a standard relating to the standard of services provided by a regulated transmission system operator by means of, or in connection with, a transmission system imposed— (a) by or under jurisdictional electricity legislation; or (b) by the AER in accordance with the Rules; transmission system means the apparatus, electric lines, equipment, plant and buildings used to convey or control the conveyance of electricity that the Rules specify as, or forming part of, a transmission system; transmission system safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to— (a) the safe transmission of electricity in that jurisdiction; or (b) the safe operation of a transmission system in that jurisdiction; trial project means a project— (a) that— (i) the AER is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial waiver for a trial project); or (ii) the AEMC is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial Rule for the purposes of a trial project); and (b) that tests an approach in relation to the supply of, or demand for, electricity; trial Rule—see section 87; trial waiver—see section 18ZL; Tribunal means the Australian Competition Tribunal referred to in the Competition and Consumer Act 2010 of the Commonwealth and includes a member of the Tribunal or a Division of the Tribunal performing functions of the Tribunal; VENCorp means the Victorian Energy Networks Corporation continued under Part 8 of the Gas Industry Act 2001 of Victoria until the AEMO amendments came into force; wholesale electricity market means any wholesale market for electricity regulated under this Law and the Rules. (2) A reference in this Law to an end user includes a reference to a prospective end user. 2A Meaning of access dispute An access dispute is— (a) a dispute between a network service user (or prospective network service user) and a network service provider about an aspect of access to an electricity network service specified by the Rules to be an aspect to which Part 10 applies; or (b) without limiting paragraph (a)—a dispute between a retail customer (or other person specified by the Rules) and a regulated distribution system operator about an aspect of access to a connection service specified by the Rules to be an aspect to which Part 10 applies. 2AA Meaning of civil penalty provision and conduct provision (1) A civil penalty provision is— (a) a provision of this Law specified in the Table at the foot of this subsection; or (b) (Repealed) (ba) a reliability obligation civil penalty provision; or (bb) a section 27/41 rule that is declared by the provision or another provision to be a civil penalty provision; or (c) a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a civil penalty provision. Table Provision Section heading Section 11(1), (2), (3) and (4) Electricity market activities in this jurisdiction Section 14A Regulated transmission system operator must comply with transmission determination Section 14B Regulated distribution system operator must comply with distribution determination Section 14P(1) and (3) Obligation to report net contract position Section 18ZC(1) and (2) Obligation of regulated entities to keep records Section 18ZD Obligation of regulated entities to provide information and data about compliance Section 18ZF(1) and (3) Compliance audits by regulated entities Section 28N Compliance with regulatory information notice that is served Section 28O Compliance with general regulatory information order Section 50D(1) Network agreement Section 50F(1), (4) and (5) Augmentation Section 53C(3) and (4 Compliance with market information instrument Section 136 Compliance with access determination Section 157(1) Preventing or hindering access (1a) A reliability obligation civil penalty provision is section 14R(2). (2) A conduct provision is a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a conduct provision. 2AB Civil penalty amounts for breaches of civil penalty provisions (1) Subject to this section, the civil penalty for a breach of a civil penalty provision is— (a) in the case of a breach of a civil penalty provision, other than a provision prescribed under paragraph (b), (c) or (d)— (i) if the breach is by a natural person— (A) an amount not exceeding $33 900; plus (B) an amount not exceeding $3 390 for every day during which the breach continues; (ii) if the breach is by a body corporate— (A) an amount not exceeding $170 000; plus (B) an amount not exceeding $17 000 for every day during which the breach continues; or (b) in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph— (i) if the breach is by a natural person— (A) an amount not exceeding $287 000; plus (B) an amount not exceeding $14 400 for every day during which the breach continues; (ii) if the breach is by a body corporate— (A) an amount not exceeding $1 435 000; plus (B) an amount not exceeding $71 800 for every day during which the breach continues; or (c) in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph— (i) if the breach is by a natural person—an amount not exceeding $500 000; (ii) if the breach is by a body corporate—an amount not exceeding the greater of the following— (A) $10 000 000; (B) if the Court can determine the value of any benefit reasonably attributable to the breach of the civil penalty provision that the body corporate, and any body corporate related to the body corporate, has obtained, directly or indirectly—3 times the value of that benefit; (C) if the Court cannot determine the value of the benefit—10% of the annual turnover of the body corporate during the 12-month period ending at the end of the month in which the body corporate breached, or began breaching, the civil penalty provision; or (d) in the case of a breach of a reliability obligation civil penalty provision— (i) if the breach is by a natural person—an amount not exceeding $1 435 000; (ii) if the breach is by a body corporate— (A) an amount not exceeding $1 435 000 for a breach that relates to a reliability gap period; or (B) an amount that applies under paragraph (c)(ii), as if the reliability obligation civil penalty provision were prescribed by the Regulations for the purposes of paragraph (c), for a breach that relates to a second or subsequent reliability gap period. Note— See section 67A, which deals with conduct that constitutes a breach of a reliability obligation civil penalty provision on 2 or more occasions in relation to the same reliability gap period. Note— See Schedule 2 clause 37A, which provides for the amounts specified in this subsection to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER's website. (2) Subsection (1)(c)(ii)(B) or (C) will only apply in a particular case (including by operation of subsection (1)(d)(ii)(B)) if the AER, in applying for an order under section 61(2)(a), requests that those provisions be applied in that particular case. (3) Despite subsection (1), the civil penalty for a breach of a civil penalty provision that is a section 27/41 rule is— (a) if the provision is declared to be a tier 3 civil penalty provision—the amounts specified in subsection (1)(a)(i) and (ii); or (b) if the provision is declared to be a tier 2 civil penalty provision—the amounts specified in subsection (1)(b)(i) and (ii); or (c) if the provision is declared to be a tier 1 civil penalty provision—the amounts specified in subsection (1)(c)(i) and (ii). 2B Meaning of direct control network service A direct control network service is an electricity network service— (a) the Rules specify as a service the price for which, or the revenue to be earned from which, must be regulated under a distribution determination or transmission determination; or (b) if the Rules do not do so, the AER specifies, in a distribution determination or transmission determination, as a service the price for which, or the revenue to be earned from which, must be regulated under the distribution determination or transmission determination. 2C Meaning of negotiated network service A negotiated network service is an electricity network service— (a) that is not a direct control network service; and (b) that— (i) the Rules specify as a negotiated network service; or (ii) if the Rules do not do so, the AER specifies as a negotiated network service in a distribution determination or transmission determination. 2D Meaning of regulatory obligation or requirement (1) A regulatory obligation or requirement is— (a) in relation to the provision of an electricity network service by a regulated network service provider— (i) a distribution system safety duty or transmission system safety duty; or (ii) a distribution reliability standard or transmission reliability standard; or (iii) a distribution service standard or transmission service standard; or (b) an obligation or requirement under— (i) this Law or Rules; or (ia) the National Energy Retail Law or the National Energy Retail Rules; or (ii) an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that levies or imposes a tax or other levy that is payable by a regulated network service provider; or (iii) an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that regulates the use of land in a participating jurisdiction by a regulated network service provider; or (iv) an Act of a participating jurisdiction or any instrument made or issued under or for the purposes of that Act that relates to the protection of the environment; or (v) an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act (other than national electricity legislation or an Act of a participating jurisdiction or an Act or instrument referred to in subparagraphs (ii) to (iv)), that materially affects the provision, by a regulated network service provider, of electricity network services that are the subject of a distribution determination or transmission determination. (2) A regulatory obligation or requirement does not include an obligation or requirement to pay a fine, penalty or compensation— (a) for a breach of— (i) a distribution system safety duty or transmission system safety duty; or (ii) a distribution reliability standard or transmission reliability standard; or (iii) a distribution service standard or transmission service standard; or (b) under this Law or the Rules, the National Energy Retail Law or the National Energy Retail Rules or an Act or an instrument referred to in subsection (1)(b)(ii) to (v). Note— 1 See also section 7A(2)(b). 2 The RoLR cost recovery scheme is dealt with under Part 6 of the National Energy Retail Law. 2E Meaning of regulatory payment A regulatory payment is a sum that a regulated network service provider has been required or allowed to pay to a network service user or an end user for a breach of, as the case requires— (a) a distribution reliability standard or transmission reliability standard; or (b) a distribution service standard or transmission service standard, because it was efficient for the regulated network service provider (in terms of the provider's overall business) to pay that sum. Note— See also section 7A(2)(b). 2F Form of regulation factors The form of regulation factors are— (a) the presence and extent of any barriers to entry in a market for electricity network services; (b) the presence and extent of any network externalities (that is, interdependencies) between an electricity network service provided by a network service provider and any other electricity network service provided by the network service provider; (c) the presence and extent of any network externalities (that is, interdependencies) between an electricity network service provided by a network service provider and any other service provided by the network service provider in any other market; (d) the extent to which any market power possessed by a network service provider is, or is likely to be, mitigated by any countervailing market power possessed by a network service user or prospective network service user; (e) the presence and extent of any substitute, and the elasticity of demand, in a market for an electricity network service in which a network service provider provides that service; (f) the presence and extent of any substitute for, and the elasticity of demand in a market for, electricity or gas (as the case may be); (g) the extent to which there is information available to a prospective network service user or network service user, and whether that information is adequate, to enable the prospective network service user or network service user to negotiate on an informed basis with a network service provider for the provision of an electricity network service to them by the network service provider. 2G Related bodies corporate For the purposes of this Law, 2 or more bodies corporate are related to each other if they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth. 3 Interpretation generally Schedule 2 to this Law applies to this Law, the Regulations and the Rules and any other statutory instrument made under this Law. 4 Savings and transitionals Schedule 3 to this Law has effect. 5 Participating jurisdictions (1) The following jurisdictions are participating jurisdictions for the purposes of this Law— (a) the State of South Australia; and (b) the Commonwealth, a Territory or a State (other than South Australia) if there is in force, as part of the law of that jurisdiction, a law that applies this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Electricity (South Australia) Act 1996 of South Australia or by some other law). (2) If a law of a participating jurisdiction referred to in subsection (1)(b) ceases to be in force, the jurisdiction ceases to be a participating jurisdiction. (3) If, at any time, all participating jurisdictions agree that a specified jurisdiction will cease to be a participating jurisdiction on a specified date, the jurisdiction ceases to be a participating jurisdiction on that date. (4) A notice must be published in the South Australian Government Gazette of the date on which a jurisdiction ceases to be a participating jurisdiction under subsection (2) or (3). (5) If the legislature of a participating jurisdiction enacts a law that, in the unanimous opinion of the Ministers of the other participating jurisdictions, is inconsistent with this Law, those other participating jurisdictions may give notice to the Minister of the first-mentioned participating jurisdiction to the effect that, if the inconsistent law remains in force as an inconsistent law for more than 6 months after the notice is given, the other participating jurisdictions may declare that the jurisdiction has ceased to be a participating jurisdiction. (6) A jurisdiction ceases to be a participating jurisdiction on publication in the South Australian Government Gazette of a declaration made by the Ministers of the other participating jurisdictions in accordance with subsection (5). 6 Ministers of participating jurisdictions (1) The Ministers of the participating jurisdictions are— (a) the Minister of the Crown in right of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia; and (b) the Ministers of the Crown in right of the other participating jurisdictions administering the laws of those jurisdictions that apply this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Electricity (South Australia) Act 1996 of South Australia or by some other law). 6A Nominated distributors (1) The regulations under the application Act of a participating jurisdiction (a local regulation) may— (a) nominate an entity, being an entity that is licensed or otherwise authorised under the jurisdictional electricity legislation of that jurisdiction to operate a distribution system but that is not a regulated distribution system operator (within the meaning of this Law) in respect of that distribution system, as an entity to which this section applies (the nominated distributor); and (b) apply to the nominated distributor specified provisions of the Rules that relate to the following matters— (i) the provision of connection services to retail customers; (ii) retail support obligations between regulated distribution system operators and retailers; (iii) credit support arrangements between regulated distribution system operators and retailers. (2) The application of any such specified provisions of the Rules to the nominated distributor is subject to such modifications as may be specified in the local regulation. (3) The nominated distributor— (a) must comply with the Rules to the extent that the Rules are applied by the local regulation to the nominated distributor; and (b) may, to the extent that the Rules apply to the nominated distributor, be proceeded against under this Law for any breach of those Rules. (4) A nomination of an entity by a local regulation may be made for— (a) the whole or a specified part of the geographical area of a jurisdiction; or (b) the whole or a specified part of a distribution system that is owned, controlled or operated by the entity, or for both. (5) The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette. 6B Regulated stand-alone power systems (1) The regulations under the application Act of a participating jurisdiction (a local regulation) may provide that the following form part of the national electricity system (a regulated stand-alone power system)— (a) a particular stand-alone power system, which consists of a distribution system owned, controlled or operated, or proposed to be owned, controlled or operated, by a regulated distribution system operator; (b) a stand-alone power system, which consists of a distribution system owned, controlled or operated, or proposed to be owned, controlled or operated, by a regulated distribution system operator, that belongs to a particular class of stand-alone power systems. (2) Without limiting subsection (1), the local regulation may provide that a particular stand-alone power system, or a class of stand-alone power systems, forms part of the national electricity system by reference to— (a) the particular geographic area in which the stand-alone power system, or class of stand-alone power systems, is or will be located; or (b) the regulated distribution system operator that owns, controls or operates, or proposes to own, control or operate, the stand-alone power system or class of stand-alone power systems; or (c) whether the stand-alone power system, or class of stand-alone power systems, complies with any requirements specified by the Rules. (3) The local regulation may modify the application of a specified provision of this Law or the Rules for and with respect to a regulated stand-alone power system or a class of regulated stand-alone power systems. (4) A regulated distribution system operator that owns, controls or operates a regulated stand-alone power system— (a) must comply with the Rules to the extent that the Rules are applied by the local regulation to the regulated stand-alone power system; and (b) may, to the extent that the Rules apply to the regulated stand-alone power system, be proceeded against under this Law for any breach of those Rules. (5) The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette. (6) In this section— stand-alone power system means a system that— (a) generates and distributes electricity; and (b) does not form part of the interconnected national electricity system. 7 National electricity objective The objective of this Law is to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to— (a) price, quality, safety, reliability and security of supply of electricity; and (b) the reliability, safety and security of the national electricity system; and (c) the achievement of targets set by a participating jurisdiction— (i) for reducing Australia's greenhouse gas emissions; or (ii) that are likely to contribute to reducing Australia's greenhouse gas emissions. Note— The AEMC must publish targets in a targets statement: see section 32A. 7AA Regulations may prescribe matters for national electricity objective Without limiting Part 4 of the National Electricity (South Australia) Act 1996 of South Australia, the Regulations may make provision about a matter relating to the achievement of targets mentioned in section 7(c) of this Law. 7A Revenue and pricing principles (1) The revenue and pricing principles are the principles set out in subsections (2) to (7). (2) A regulated network service provider should be provided with a reasonable opportunity to recover at least the efficient costs the operator incurs in— (a) providing direct control network services; and (b) complying with a regulatory obligation or requirement or making a regulatory payment. (3) A regulated network service provider should be provided with effective incentives in order to promote economic efficiency with respect to direct control network services the operator provides. The economic efficiency that should be promoted includes— (a) efficient investment in a distribution system or transmission system with which the operator provides direct control network services; and (b) the efficient provision of electricity network services; and (c) the efficient use of the distribution system or transmission system with which the operator provides direct control network services. (4) Regard should be had to the regulatory asset base with respect to a distribution system or transmission system adopted— (a) in any previous— (i) as the case requires, distribution determination or transmission determination; or (ii) determination or decision under the National Electricity Code or jurisdictional electricity legislation regulating the revenue earned, or prices charged, by a person providing services by means of that distribution system or transmission system; or (b) in the Rules. (5) A price or charge for the provision of a direct control network service should allow for a return commensurate with the regulatory and commercial risks involved in providing the direct control network service to which that price or charge relates. (6) Regard should be had to the economic costs and risks of the potential for under and over investment by a regulated network service provider in, as the case requires, a distribution system or transmission system with which the operator provides direct control network services. (7) Regard should be had to the economic costs and risks of the potential for under and over utilisation of a distribution system or transmission system with which a regulated network service provider provides direct control network services. 7B Innovative trial principles The following principles (the innovative trial principles) must be taken into account in determining whether a trial project is genuinely innovative in connection with granting a trial waiver or making a trial Rule relating to a trial project— (a) whether the trial project is focused on developing new or materially improved approaches to the use or supply of, or demand for, electricity; (b) whether the trial project is likely to contribute to the achievement of the national electricity objective; (c) whether the trial project is able to demonstrate a reasonable prospect of giving rise to materially improved services and outcomes for consumers of electricity; (d) whether the trial project maintains adequate consumer protections, including whether the trial project may involve risks to consumers and (if so), how those risks might be mitigated; (e) whether the trial project is unable to proceed under the existing regulatory framework; (f) whether the trial project has moved beyond research and development stages but is not yet established, or of sufficient maturity, size or otherwise commercially ready, to attract investment; (g) whether the trial project may negatively impact AEMO's operation of the national electricity system and national electricity market and, if there are impacts, how those impacts can be mitigated; (h) whether the trial project may impact on competition in a competitive sector of the national electricity market; (i) any other principle prescribed by the Regulations. 8 MCE statements of policy principles (1) Subject to this section, the MCE may issue a statement of policy principles in relation to any matters that are relevant to the exercise and performance by the AEMC of its functions and powers in— (a) making a Rule; or (b) conducting a review under section 45. (2) Before issuing a statement of policy principles, the MCE must be satisfied that the statement is consistent with the national electricity objective. (3) As soon as practicable after issuing a statement of policy principles, the MCE must give a copy of the statement to the AEMC. (4) The AEMC must publish the statement in the South Australian Government Gazette and on its website as soon as practicable after it is given a copy of the statement. 9 National Electricity Rules to have force of law The National Electricity Rules have the force of law in this jurisdiction. 10 Application of this Law and Regulations to coastal waters of this jurisdiction (1) This Law and the Regulations apply in the coastal waters of this jurisdiction. Note— The Rules apply in this jurisdiction by operation of this Law. (2) In this section— adjacent area has the same meaning as in the Petroleum (Submerged Lands) Act 1967 of the Commonwealth; coastal waters of this jurisdiction means any sea that is on the landward side of the adjacent area of this jurisdiction but is not within the limits of this jurisdiction. 10A Corporations Act displacement (1) The Regulations may declare a relevant provision to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth in relation to the provisions of Chapter 5 of that Act. (2) In this section— relevant provision means a provision of the Rules that relates to any of the following— (a) the application by AEMO of money in any security deposit fund; (b) the functions of AEMO under procedures relating to defaults by retailers; (c) the application (or drawing on) of credit support held by a regulated distribution system operator in respect of a retailer who is the subject of a RoLR event within the meaning of Part 6 of the National Energy Retail Law. Part 2 Participation in the National Electricity Market Division 1 Registration 11 Electricity market activities in this jurisdiction (1) A person must not engage in the activity of owning, controlling or operating, in this jurisdiction, a generating system connected to the interconnected national electricity system or directly or indirectly connected to a regulated stand-alone power system unless— (a) the person is a Registered participant in relation to that activity; or (b) the person is the subject of a derogation that exempts the person, or is otherwise exempted by AEMO, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules. Note— Subsection (1) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (2) A person must not engage in the activity of owning, controlling or operating, in this jurisdiction, a transmission system or distribution system that forms part of the interconnected national electricity system or that forms part of, or is directly or indirectly connected to, a regulated stand-alone power system unless— (a) the person is a Registered participant in relation to that activity; or (b) the person is the subject of a derogation that exempts the person, or is otherwise exempted by the AER, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules. Note— Subsection (2) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (3) A person, other than AEMO, must not engage in the activity of operating or administering, in this jurisdiction, a wholesale exchange for electricity. Note— Subsection (3) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (4) A person must not engage in, in this jurisdiction, the activity of purchasing electricity directly through a wholesale exchange unless— (a) the person is a Registered participant in relation to that activity; or (b) the person is the subject of a derogation that exempts the person, or is otherwise exempted by AEMO, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules. Note— Subsection (4) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). 12 Registration or exemption of persons participating in national electricity market (1) A person engaged or proposing to engage in an activity referred to in section 11(1), (2) or (4) may request AEMO to register that person as a Registered participant in relation to that activity for the purposes of this Law and the Rules. (2) A person engaged or proposing to engage in an activity referred to in section 11(1) or (4) may request AEMO to exempt that person from registering as a Registered participant in relation to that activity for the purposes of this Law and the Rules. (3) A request under subsection (1) or (2) must be in accordance with the Rules. (4) On receipt of a request under subsection (1) to be registered as a Registered participant, AEMO may, subject to the Rules, register the person in such categories of registration as are specified in the Rules. (5) On receipt of a request under subsection (2) to be exempted from being registered as a Registered participant, AEMO may, subject to the Rules, grant the person the exemption. (6) Registration as a Registered participant under subsection (4) or an exem