South Australia: Electricity Act 1996 (SA)

South Australia Electricity Act 1996 An Act to regulate the electricity supply industry; to make provision for safety and technical standards for electrical installations; and for other purposes. Contents Part 1—Preliminary 1 Short title 3 Objects 4 Interpretation 5 Crown bound 6 Other statutory requirements not affected Part 2—Administration Division 1—Essential Services Commission 6A Functions and powers of Commission Division 3—Technical Regulator 7 Technical Regulator 8 Functions of Technical Regulator 9 Delegation 10 Technical Regulator's power to require information 11 Obligation to preserve confidentiality 14 Annual report Division 4—Advisory committees 14A Consumer advisory committee 14B Technical advisory committee 14C Other advisory committees Part 3—Electricity supply industry Division A1—Declaration as regulated industry 14D Declaration as regulated industry Division A2—Application of provisions 14E Application of provisions Division 1—Licensing of electricity entities 15 Requirement for licence 16 Application for licence 17 Consideration of application 17A Licences may be held jointly 18 Authority conferred by licence 19 Term of licence 20 Licence fees and returns 21 Licence conditions 22 Licences authorising generation of electricity 23 Licences authorising operation of transmission or distribution network 24 Licences authorising retailing 24A Licences authorising system control 24B Licence conditions and national energy laws 25 Offence to contravene licence conditions 27 Variation of licence 28 Transfer of licence 28A Consultation with consumer bodies 28B Notice of licence decisions 29 Surrender of licence 30 Register of licences 30A Licence is not personal property for the purposes of Commonwealth Act Division 2—System controller 31 Functions and powers of system controller 34 Remuneration of system controller 35 Obligation to preserve confidentiality Division 2A—Price regulation 35A Price regulation by Commission 35B Initial electricity pricing order Division 3—Standard terms and conditions for sale or supply 36 Standard terms and conditions for sale or supply Division 3AA—Special provisions relating to small customers 36AA Provision for standing contract with small customers 36AB Provision for default contract with small customers Division 3AB—Feed‑in mechanisms 36AC Interpretation 36AD Feeding electricity into networks—requirements on holder of licence authorising retailing 36AE Feeding electricity into networks—requirements on holder of licence authorising operation of distribution network Division 3AC—Contestable services 36AF Contestable services Division 3A—Protection of property in infrastructure 36A Electricity infrastructure does not merge with land 36B Prevention of dismantling of electricity infrastructure in execution of judgment Division 4—Suspension or cancellation of licences 37 Suspension or cancellation of licences Division 5—Commission's powers to take over operations 38 Power to take over operations 39 Appointment of operator Part 4—Electricity entities' powers and duties Division 1—Electricity officers 41 Appointment of electricity officers 42 Conditions of appointment 43 Electricity officer's identity card 44 Production of identity card Division 1A—General investigative powers of electricity officers 44A General investigative powers of electricity officers Division 2—Powers and duties relating to infrastructure 45 Entry on land to conduct surveys etc 46 Acquisition of land 47 Power to carry out work on public land 48 Entry for purposes related to infrastructure 48A Easements and access to infrastructure for data transmission and telecommunications Division 3—Powers relating to installations 49 Entry to inspect etc electrical installations 50 Entry to read meters etc 51 Entry to disconnect supply 52 Disconnection of supply if entry refused Division 4—Powers and duties in emergencies 53 Electricity entity may cut off electricity supply to avert danger 54 Emergency legislation not affected Part 5—Clearance of vegetation from powerlines Division 1—Duties and powers in relation to vegetation clearance 55 Duties in relation to vegetation clearance 55AA Powers of electricity entity in relation to vegetation clearance Division 2—Vegetation clearance schemes in prescribed areas Subdivision 1—Content and nature of schemes 55A Vegetation clearance schemes Subdivision 2—Disputes about schemes 55B Vegetation clearance scheme dispute 55C Circumstances in which Technical Regulator not obliged to determine dispute 55D Determinations 55E Principles to be taken into account 55F Conduct of proceedings 55G Giving of relevant documents to Technical Regulator 55H Power to obtain information and documents 55I Confidentiality of information 55J Termination of proceedings for determination 55K Procedure for giving determination 55L Costs Subdivision 3—Enforcement of schemes 55M Enforcement as contract Subdivision 4—Resolution of disputes under schemes 55N Resolution of dispute by intervention of Technical Regulator Division 3—Miscellaneous 56 Role of councils in relation to vegetation clearance not within prescribed areas 57 Power to enter for vegetation clearance purposes 58 Regulations in respect of vegetation clearance Part 5A—Undergrounding of powerlines 58A Program for undergrounding of powerlines Part 6—Safety and technical issues 59 Requirements relating to electrical installation connection and meter installation 60 Responsibility of owner or operator of infrastructure or installation 60A Responsibility to ensure correct polarity and phase relationship 60B Safety, reliability, maintenance and technical management plans 61 Electrical installation work 61A Unsafe installation of electrical equipment 61B Design of electrical installations 62 Power to require rectification etc in relation to infrastructure, installations or equipment 62A Public warning statements 62B Immunity from liability 63 Reporting of accidents etc Part 6A—Regulation of NERL retailers 63AA Application of Part 63AB Compliance with certain code provisions under Essential Services Commission Act 2002 and requirements of regulations 63AC Participation in ombudsman scheme 63AD Compliance with customer concessions scheme and performance of community service obligations 63AE NERL retailers annual administration fee Part 7—Enforcement Division A1—Warning notices and assurances 63A Warning notices 63B Assurances 63BA Register of warning notices and assurances 63BB Offence to act contrary to assurance 63BC Enforcement orders in relation to assurances Division A2—Injunctions 63C Injunctions Division A3—Enforcement notices 63D Enforcement notices Division 1—Appointment of authorised officers 64 Appointment of authorised officers 65 Conditions of appointment 66 Authorised officer's identity card 67 Production of identity card Division 2—Authorised officers' powers 68 Power of entry 69 General investigative powers of authorised officers 70 Disconnection of electricity supply 71 Power to require disconnection of cathodic protection system 72 Power to make infrastructure, installation or equipment safe 73 Power to require information or documents Division 3—Related matters 74 Self‑incrimination Part 8—Reviews 75 Review of decisions by Commission or Technical Regulator 76 Review by Tribunal 77 Minister's power to intervene Part 9—Miscellaneous 80 Power of exemption 80A Register of exemptions 81 Obligation to comply with conditions of exemption 81A Delegation by Minister 82 Application and issue of warrant 83 Urgent situations 84 Unlawful interference with electricity infrastructure or electrical installation 85 Unlawful taking of electricity, interference with meters or positioning of lines 86 Erection of buildings in proximity to powerline 87 Notice of work that may affect electricity infrastructure 88 Impersonation of officials etc 89 Obstruction 90 False or misleading information 91 Statutory declarations 91A Protection from liability 91B Offences 92 General defence 93 Offences by bodies corporate 93A Imputing conduct to bodies corporate 94 Continuing offence 94A Order for payment of profit from contravention 94B Energy productivity shortfalls 96 Evidence 97 Service 98 Regulations Schedule 2—Transitional provisions 1 Continuation of certain arrangements Legislative history The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Electricity Act 1996. 3—Objects The objects of this Act are— (a) to promote efficiency and competition in the electricity supply industry; and (b) to promote the establishment and maintenance of a safe and efficient system of electricity generation, transmission, distribution and supply; and (c) to establish and enforce proper standards of safety, reliability and quality in the electricity supply industry; and (d) to establish and enforce proper safety and technical standards for electrical installations (including such standards relating to the design of electrical installations); and (e) to protect the interests of consumers of electricity. 4—Interpretation (1) In this Act, unless the contrary intention appears— AEMO means the Australian Energy Market Operator Limited (ACN 072 010 327); annual electricity consumption level means a level of consumption of electricity determined in accordance with the regulations (and the regulations may, for that purpose, make provision for the estimation or agreement of the level in specified circumstances); authorised officer means a person appointed under Part 7 as an authorised officer; bush fire means a fire that originates in, or spreads through, forest, scrub, grass or other vegetation; bushfire risk area—see subsection (4); Commission means the Essential Services Commission established under the Essential Services Commission Act 2002; condition includes a limitation or restriction; contravention includes a failure to comply; council means a council within the meaning of the Local Government Act 1999 and includes the Outback Areas Community Development Trust; council officer means a person authorised by a council to exercise powers conferred on a council officer under this Act; customer means a person who has a supply of electricity available from a transmission or distribution network for consumption by that person and includes— (a) the occupier for the time being of a place to which electricity is supplied; and (b) where the context requires, a person seeking an electricity supply; and (c) a person of a class declared by regulation to be customers; disconnect electricity supply includes a procedure to interrupt or discontinue the electricity supply to a customer; electrical equipment means any electrical appliance or wires, fittings, equipment or accessories beyond an electrical outlet at which fixed wiring terminates; electrical installation means a set of wires and associated fittings, equipment and accessories installed in a place for the conveyance, control, measurement or use of electricity that is, or is to be, or has been, supplied for consumption in the place, including anything declared by regulation to be or form part of an electrical installation, but does not include— (a) electricity infrastructure owned or operated by an electricity entity; or (b) any wires, fittings, equipment or accessories connected to and beyond any electrical outlet at which fixed wiring terminates (other than any such outlet used to connect sections of fixed wiring); or (c) anything declared by regulation not to be or form part of an electrical installation; electricity entity means a person licensed under Part 3 to carry on operations in the electricity supply industry and includes (where the context requires) a person who has been licensed to carry on operations in the electricity supply industry under that Part whose licence has been suspended or cancelled or has expired; electricity infrastructure means— (a) electricity generating plant; and (b) powerlines; and (c) substations for converting, transforming or controlling electricity; and (d) equipment for metering, monitoring or controlling electricity; and (e) any wires, equipment or other things (including tunnels and cavities) used for, or in connection with, the generation, transmission, distribution or supply of electricity; and (f) anything declared by regulation to form part of electricity infrastructure, but does not include anything declared by regulation not to form part of electricity infrastructure; electricity officer means a person appointed under Part 4 as an electricity officer; electricity supply industry means the industry involved in the generation, transmission, distribution, supply or sale of electricity or other operations of a kind prescribed by regulation; employing authority means the person designated by proclamation as being the employing authority for the purposes of this definition; generation of electricity means the operation of any kind of electricity generating plant and all incidental and related operations, but does not include anything declared by regulation not to be generation of electricity; install includes place; internal switching manual means an internal manual relating to switching that— (a) the holder of a licence authorising the generation of electricity; or (b) the holder of a licence authorising the operation of a transmission or distribution network; or (c) the holder of a licence authorising system control over a power system; or (d) a person exempted from the requirement to hold a licence of a kind referred to in paragraphs (a) to (c), is required (under the conditions of the licence or exemption) to prepare and maintain in accordance with the regulations for the purposes of safety in connection with switching relevant to the operations of the licence holder or person; land includes— (a) an estate or interest in land (including an easement); or (b) a right or power over or in respect of land; National Electricity Rules means the National Electricity Rules as defined in the National Electricity (South Australia) Law; National Electricity (South Australia) Law—see the Schedule of the National Electricity (South Australia) Act 1996; National Energy Retail Rules means the National Energy Retail Rules as defined in the National Energy Retail Law (South Australia); naturally occurring vegetation means vegetation that has not been planted or nurtured by any person; NERL retailer means— (a) a person who is the holder of a retailer authorisation under the National Energy Retail Law (South Australia); or (b) an exempt seller within the meaning of the National Energy Retail Law (South Australia); network services means— (a) the transmission and distribution of electricity between electricity entities and from electricity entities to customers (including connection to a transmission or distribution network); and (b) controlling and regulating the quality of electricity; non‑bushfire risk area means a part of the State not within the bushfire risk area; nurture, in relation to vegetation, means actively assist the growth of the vegetation; occupier of land or a place means a person who has or is entitled to possession or control of the land or place; operations includes activities; powerline means— (a) a set of cables for the transmission or distribution of electricity and their supporting or protective structures, conduits and equipment; and (b) associated equipment for the transmission or distribution of electricity, but does not include a telecommunications cable or associated equipment; power system means a system for the generation, transmission and distribution of electricity or a part of such a system; principles of vegetation clearance means the regulations dealing with the clearance of vegetation from, or the planting or nurturing of vegetation near, public and private powerlines; private land means— (a) land alienated or contracted to be alienated from the Crown in fee simple; or (b) land occupied under a lease or licence from the Crown; or (c) land dedicated to a particular purpose and placed under the care, control and management of any person (whether or not that person is a Minister, agency or instrumentality of the Crown), except any such land vested in, or under the care, control or management of, a council and dedicated to, or held for, a public purpose; private powerline means a powerline— (a) designed to convey electricity at a prescribed voltage or less; and (b) situated on, above or under private land for the purpose only of supplying electricity to some point on that land; public powerline means any powerline except a private powerline; regulated entity means— (a) an electricity entity; or (b) a NERL retailer; retailing of electricity means the sale of electricity to customers, but does not include an activity declared by regulation not to be retailing of electricity; small customer means a customer with an annual electricity consumption level less than the number of MW.h per year specified by regulation for that purpose, or any customer classified by regulation as a small customer; supply of electricity means the delivery of electricity to a customer; system controller means a person licensed under Part 3 to exercise system control over a power system; Technical Regulator means the person holding the office of Technical Regulator under Part 2; telecommunications means the transmission of telephonic, radio, computer, television or other signals; transmission or distribution network means the whole or a part of a system for the transmission or distribution of electricity, but does not include anything declared by regulation not to be a transmission or distribution network or part of a transmission or distribution network; Tribunal means the South Australian Civil and Administrative Tribunal established under the South Australian Civil and Administrative Tribunal Act 2013; vegetation clearance scheme means a vegetation clearance scheme agreed or determined under Part 5. (2) A reference in this Act to a powerline, a network, infrastructure or other property of an entity includes a reference to a powerline, a network, infrastructure or other property that is not owned by the entity but is operated by the entity. (3) A proclamation made for the purposes of the definition of employing authority— (a) may apply by reference to a specified person, or by reference to the person for the time being holding or acting in a specified office or position; and (b) may, from time to time as the Governor thinks fit, be varied or substituted by a new proclamation. (4) For the purposes of this Act, the regulations may designate an area of the State to be the bushfire risk area. 5—Crown bound (1) This Act binds the Crown. (2) Nothing in this Act renders the Crown in any of its capacities liable to be prosecuted for an offence. (3) For the purposes of this section, a reference to the Crown extends— (a) not only to the Crown in right of this State but also (so far as the legislative power of the State permits) to the Crown in any other capacity; and (b) to an instrumentality of the Crown, and to an officer or employee of the Crown and any contractor or other person who carries out functions on behalf of the Crown. 6—Other statutory requirements not affected This Act is in addition to and does not derogate from the provisions of the National Electricity (South Australia) Act 1996, the Environment Protection Act 1993 or any other Act. Part 2—Administration Division 1—Essential Services Commission 6A—Functions and powers of Commission (1) The Commission has (in addition to the Commission's functions and powers under the Essential Services Commission Act 2002)— (a) the licensing, price regulation and other functions and powers conferred by this Act; and (b) if the Commission is appointed under the National Electricity Rules as the body to perform or exercise certain functions and powers—those functions and powers; and (c) any other functions and powers conferred by regulation under this Act. (2) If regulated entities are required (whether by licence condition or otherwise) to participate in an ombudsman scheme, the Commission must, in performing licensing functions under this Act, liaise with the ombudsman appointed under the scheme. (3) Without limiting subsection (1), the Governor may, by regulation, confer functions and powers on the Commission, or vary the functions and powers of the Commission, as the Governor considers necessary or expedient for the purposes of the National Electricity (South Australia) Law, National Electricity Rules, National Energy Retail Law (South Australia) and National Energy Retail Rules. (4) In performing functions under this Act, the Commission must (in addition to having regard to factors specified in this Act or the Essential Services Commission Act 2002) have regard to the provisions of the National Electricity Rules and National Energy Retail Rules and the need to avoid duplication of, or inconsistency with, regulatory requirements under those Rules. Division 3—Technical Regulator 7—Technical Regulator (1) There is to be a Technical Regulator. (2) The Technical Regulator is to be appointed by the Minister and is an agency of the Crown. (3) The office of Technical Regulator may be held in conjunction with a position in the Public Service. (4) The Minister may assign an employee in the Public Service to act as the Technical Regulator— (a) during a vacancy in the office of Technical Regulator; or (b) when the Technical Regulator is absent from, or unable to discharge, official duties. 8—Functions of Technical Regulator The Technical Regulator has the following functions: (a) the monitoring and regulation of safety and technical standards in the electricity supply industry; and (b) the monitoring and regulation of safety and technical standards with respect to electrical installations; and (c) the administration of the provisions of this Act relating to the clearance of vegetation from powerlines; and (ca) the monitoring and investigation of major interruptions to the electricity supply in the State and the provision of reports relating to such interruptions in accordance with any requirements prescribed by the regulations; and (d) any other functions prescribed by regulation or assigned to the Technical Regulator by or under this or any other Act. 9—Delegation (1) The Technical Regulator may delegate powers to a person or body of persons that is, in the Technical Regulator's opinion, competent to exercise the relevant powers. (2) A delegation under this section— (a) must be in writing; and (b) may be conditional or unconditional; and (c) is revocable at will; and (d) does not prevent the delegator from acting in any matter. 10—Technical Regulator's power to require information (1) The Technical Regulator may, by written notice, require a person to give the Technical Regulator, within a time stated in the notice (which must be reasonable), information in the person's possession that the Technical Regulator reasonably requires for the performance of the Technical Regulator's functions (whether under this Act or any other Act). (2) A person required to give information under this section must provide the information within the time stated in the notice. Maximum penalty: $20 000. (3) Subject to subsection (4), a natural person is not required to give information under this section if the information would tend to incriminate the person of an offence. (4) If a natural person is required to give information under this section relating to the safety of electricity infrastructure, an electrical installation or electrical equipment, and the information would tend to incriminate the person of an offence, the person must nevertheless give the information, but the information so given will not be admissible in evidence against the person in proceedings for an offence (other than an offence relating to the making of a false or misleading statement or declaration). 11—Obligation to preserve confidentiality (1) The Technical Regulator must preserve the confidentiality of information gained by the Technical Regulator under this Act (including information gained by an authorised officer under Part 7) that— (a) could affect the competitive position of an electricity entity or other person; or (b) is commercially sensitive for some other reason. (1a) Despite subsection (1), the Technical Regulator may disclose confidential information in the following circumstances: (a) as reasonably required in connection with the administration or enforcement of this Act (including to the Minister, the Commission and persons assisting the Commission) or as otherwise related to the performance of the Technical Regulator's functions (whether under this Act or any other Act); (b) to a person concerned in the administration or enforcement of another law of the State, or a law of the Commonwealth or another State or a Territory of the Commonwealth, for purposes related to the administration or operation of that other law; (c) to a government agency or instrumentality of this State, the Commonwealth or another State or Territory of the Commonwealth for purposes related to the performance of its functions (or to a person acting on behalf of such a government agency or instrumentality); (d) with the consent of the person who gave the information or to whom the information relates; (e) as required by a court or tribunal constituted by law; (f) as authorised by the Minister. (2) Information classified by the Technical Regulator as confidential is not liable to disclosure under the Freedom of Information Act 1991. 14—Annual report (1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's operations under this Act during that financial year. (3) The Minister must cause a copy of the report to be laid before both Houses of Parliament within 12 sitting days after his or her receipt of the report. Division 4—Advisory committees 14A—Consumer advisory committee The Commission must establish an advisory committee comprising representatives of consumers (the consumer advisory committee)— (a) to provide advice to the Commission in relation to the performance of the Commission's functions under the Act; and (b) to provide advice to the Commission, either on its own initiative or at the request of the Commission, on any other matter relating to the electricity supply industry. 14B—Technical advisory committee The Technical Regulator must establish an advisory committee (the technical advisory committee) including representatives of— (a) electricity entities; and (b) contractor and employee associations involved in the electricity supply industry; and (c) local government, to provide advice to the Technical Regulator, either on its own initiative or at the request of the Technical Regulator, on any matter relating to the functions of the Technical Regulator. 14C—Other advisory committees The Minister, the Commission or the Technical Regulator may establish other advisory committees to provide advice on specified aspects of the administration of this Act. Part 3—Electricity supply industry Division A1—Declaration as regulated industry 14D—Declaration as regulated industry The electricity supply industry is declared to be a regulated industry for the purposes of the Essential Services Commission Act 2002. Division A2—Application of provisions 14E—Application of provisions (1) Divisions 1, 3 and 4 do not apply to a NERL retailer. (2) Division 3AB applies to a NERL retailer (despite the fact that it does not hold a licence under this Act). (3) If a NERL retailer fails to comply with a provision of Division 3AB, the NERL retailer is guilty of an offence. Maximum penalty: $1 000 000. (4) An offence against subsection (3) may be prosecuted as an indictable offence or a summary offence at the discretion of the prosecutor but, if prosecuted as a summary offence, the maximum penalty that may be imposed is a fine not exceeding $20 000. Division 1—Licensing of electricity entities 15—Requirement for licence (1) A person must not carry on operations in the electricity supply industry for which a licence is required unless the person holds a licence under this Part authorising the relevant operations. Maximum penalty: $1 000 000. (2) The operations in the electricity supply industry for which a licence is required are— (a) generation of electricity; or (b) operation of a transmission or distribution network; or (c) retailing of electricity; or (ca) system control over a power system; or (d) other operations for which a licence is required by the regulations. (3) Nothing in this section requires AEMO to hold a licence. 16—Application for licence (1) An application for the issue of a licence must— (a) be made to the Commission in a form approved by the Commission; and (b) contain the information specified in the form. (2) The applicant must pay to the Commission an application fee fixed by the Minister of an amount that the Minister considers appropriate to meet the reasonable costs of determining the application. (3) The Commission may, as the Commission considers appropriate, accept a single application from an applicant in respect of different operations of the applicant or operations of the applicant at different locations or may require separate applications. (4) The applicant must give the Commission further relevant information requested by the Commission. 17—Consideration of application (1) The Commission must consider an application for the issue of a licence and may, subject to this Division, issue, or refuse to issue, the licence. (2) The Commission must have regard to the general factors specified in Part 2 of the Essential Services Commission Act 2002 and, subject to this section, may only issue a licence if satisfied that— (a) the applicant is a suitable person to hold the licence; and (ac) the issue of the licence will not result in the same person holding both a licence authorising the operation of a distribution network and a licence authorising retailing of electricity; and (b) in the case of a licence authorising the generation of electricity—the generating plant (or proposed generating plant) will generate electricity of the appropriate quality for the relevant transmission or distribution network; and (c) in the case of a licence authorising the operation of a transmission or distribution network—the network has (or the proposed network will have) the necessary capacity for transmitting or distributing electricity safely; and (d) in the case of a licence authorising retailing of electricity—the applicant will be able to meet reasonably foreseeable obligations under contracts for the sale of electricity; and (da) in the case of a licence authorising system control over a power system—the applicant will be able to adequately exercise system control functions; and (e) in the case of a licence authorising other operations in the electricity supply industry for which a licence is required under the regulations—the applicant meets any special requirements imposed by the regulations for the holding of the licence; and (f) in the case of a licence of any class—the grant of the licence would be consistent with criteria (if any) prescribed by regulation for a licence of the relevant class. (3) In deciding whether an applicant is a suitable person to hold a licence, the Commission may consider— (a) the applicant's previous commercial and other dealings and the standard of honesty and integrity shown in those dealings; and (b) the financial, technical and human resources available to the applicant; and (c) the officers and, if applicable, major shareholders of the applicant and their previous commercial and other dealings and the standard of honesty and integrity shown in those dealings (including breaches of statutory and other legal obligations); and (d) other matters prescribed by regulation. (4) If— (a) a person carries on or proposes to carry on operations for which a licence is required as agent of another person; and (b) the agent makes application for the issue of such a licence on the agent's own behalf and on behalf of the principal; and (c) the Commission is satisfied that the criteria for the issue of the licence are met in relation to the agent, the Commission may, at the Commission's discretion, dispense with the requirement that the Commission be satisfied that the criteria are met in relation to the principal and issue the licence to the agent and the principal to be held by them jointly. (5) If an applicant for the issue of a licence is a Registered participant, as defined in the National Electricity (South Australia) Law, the Commission may, in determining the application, in order to avoid duplication of, or inconsistency with, regulatory requirements under the National Electricity Rules, dispense with a requirement under this section that the Commission be satisfied as to a particular matter. 17A—Licences may be held jointly (1) A licence may be held jointly by two or more persons. (2) If a licence is held jointly by two or more persons, those persons are jointly and severally liable to meet requirements imposed under this Act or the Essential Services Commission Act 2002. 18—Authority conferred by licence (1) A licence authorises the person named in the licence to carry on operations in the electricity supply industry in accordance with the terms and conditions of the licence. (2) The operations authorised by a licence need not be all of the same character or at the same location but may consist of a combination of different operations or operations at different locations. 19—Term of licence A licence may be issued for an indefinite period or for a term specified in the licence. 20—Licence fees and returns (1) A person is not entitled to the issue of a licence unless the person first pays to the Commission the annual licence fee, or the first instalment of the annual licence fee, as the case may require. (2) The holder of a licence issued for a term of two years or more must— (a) in each year lodge with the Commission, before the date prescribed for that purpose, an annual return containing the information required by the Commission by condition of the licence or by written notice; and (b) in each year (other than a year in which the licence is due to expire) pay to the Commission, before the date prescribed for that purpose, the annual licence fee, or the first instalment of the annual licence fee, as the case may require. (3) The annual licence fee for a licence is the fee fixed, from time to time, by the Minister in respect of that licence as an amount that the Minister considers to be a reasonable contribution towards administrative costs. (4) An annual licence fee may, if the Commission so determines, be paid in equal instalments at intervals fixed by the Commission. (5) If the holder of a licence fails to lodge the annual return or pay the annual licence fee (or an instalment of the annual licence fee) in accordance with this section, the Commission may, by written notice, require the holder to make good the default and, in addition, to pay to the Commission the amount prescribed as a penalty for default. (6) An annual licence fee (including any instalment of an annual licence fee or any penalty for default) payable under this section is recoverable as a debt due to the Crown. (7) In this section— administrative costs means— (a) the costs of administration of this Act; and (b) any costs of administration of the Essential Services Commission Act 2002 relating to the electricity supply industry; and (c) the costs of AEMO relating to the electricity supply industry that are designated by the Minister as being appropriate for recovery under this section; and (d) other costs prescribed by regulation; holder of a licence includes the holder of a licence that has been suspended. 21—Licence conditions (1) The Commission must make a licence subject to conditions determined by the Commission— (a) requiring compliance with applicable codes or rules made under the Essential Services Commission Act 2002 as in force from time to time; and (b) requiring compliance with specified technical or safety requirements or standards; and (c) relating to the electricity entity's financial or other capacity to continue operations under the licence; and (e) requiring the electricity entity to have all or part of the operations authorised by the licence audited and to report the results of the audit to the Commission; and (f) requiring the electricity entity to notify the Commission about changes to officers and, if applicable, major shareholders of the entity; and (g) requiring the electricity entity to provide, in the manner and form determined by the Commission, such other information as the Commission may from time to time require; and (h) requiring the electricity entity to comply with the requirements of any scheme approved and funded by the Minister for the provision by the State of customer concessions or the performance of community service obligations by electricity entities. (2) The Commission must make a licence subject to further conditions that the Commission is required by regulation to impose on the issue of such a licence. (3) The Commission may make a licence subject to further conditions considered appropriate by the Commission. (4) The Commission must provide to the Minister any information that the Minister requires for the purposes of the administration of a scheme for the provision by the State of customer concessions, or the performance of community service obligations, relating to the sale or supply of electricity. 22—Licences authorising generation of electricity (1) The Commission must make a licence authorising the generation of electricity subject to conditions determined by the Commission— (a) requiring compliance with directions of the system controller; and (b) requiring the electricity entity not to do anything affecting the compatibility of the entity's electricity generating plant with any transmission or distribution network so as to prejudice public safety or the security of the power system of which the generating plant forms a part; and (c) requiring the electricity entity— (i) to prepare, maintain and periodically revise a safety, reliability, maintenance and technical management plan dealing with matters prescribed by regulation; and (ii) to obtain the approval of the Technical Regulator— (A) to the plan (prior to the commencement of the operation of the generating plant to which the plan relates); and (B) to any revision of the plan; and (iii) to comply with the plan as approved from time to time; and (iv) to audit from time to time the entity's compliance with the plan and report the results of those audits to the Technical Regulator; and (d) requiring the electricity entity to provide to AEMO such information as it may reasonably require for the performance of its functions; and (e) requiring the electricity entity— (i) to grant to each electricity entity holding a licence authorising the operation of a transmission or distribution network rights to use or have access to the entity's electricity generating plant that are necessary for the purpose of ensuring the proper integrated operation of the State's power system and the proper carrying on of the operations authorised by the entity's licence; and (ii) in the absence of agreement as to the terms on which such rights are to be granted, to comply with any determination of the Commission as to those terms; and (iii) to comply with any code provisions in force from time to time under the Essential Services Commission Act 2002 establishing a scheme for the resolution of disputes in relation to such rights; and (f) requiring the electricity entity to maintain insurance against any liability for causing a bushfire and to provide the Commission with a certificate of the insurer or the insurance broker by whom the insurance was arranged certifying (in a manner approved by the Commission) that the insurance is adequate and appropriate given the nature of the operations carried on under the entity's licence and the risks entailed in those operations. (1a) In addition, it is a condition of a licence authorising the generation of electricity that the holder of the licence— (a) prepare and maintain an internal switching manual in accordance with the regulations; and (b) comply with any other requirements relating to switching prescribed in the regulations. (2) This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the generation of electricity. 23—Licences authorising operation of transmission or distribution network (1) The Commission must make a licence authorising the operation of a transmission or distribution network subject to conditions determined by the Commission— (a) requiring compliance with directions of the system controller; and (b) requiring the electricity entity not to do anything affecting the compatibility of the entity's transmission or distribution network with any electricity generating plant or transmission or distribution network so as to prejudice public safety or the security of the power system of which the transmission or distribution network forms a part; and (c) requiring the electricity entity— (i) to prepare, maintain and periodically revise a safety, reliability, maintenance and technical management plan dealing with matters prescribed by regulation; and (ii) to obtain the approval of the Technical Regulator— (A) to the plan (prior to the commencement of the operation of the transmission or distribution system to which the plan relates); and (B) to any revision of the plan; and (iii) to comply with the plan as approved from time to time; and (iv) to audit from time to time the entity's compliance with the plan and report the results of those audits to the Technical Regulator; and (d) requiring the electricity entity to provide to AEMO such information as it may reasonably require for the performance of its functions; and (e) requiring the electricity entity to maintain specified accounting records and to prepare accounts according to specified principles; and (f) requiring the electricity entity to inform persons seeking or in receipt of network services of the terms on which the services are provided (including the charges for the services) and of any changes in those terms; and (g) requiring the electricity entity to carry out work to locate powerlines underground in accordance with a program established under Part 5A; and (h) requiring the electricity entity to comply with— (i) specified provisions for or relating to the granting to other electricity entities of rights to use or have access to the entity's transmission or distribution network (on non-discriminatory terms) for the transmission or distribution of electricity by the other entities; and (ii) any scheme that the Commission may establish by a code made under the Essential Services Commission Act 2002 for the resolution of disputes in relation to such rights; and (i) requiring the electricity entity to comply with— (i) specified provisions for or relating to the granting to all electricity entities and customers of a class specified in the condition of rights to use or have access to the entity's transmission or distribution network (on non-discriminatory terms) to obtain electricity from the network; and (ii) any scheme that the Commission may establish by a code made under the Essential Services Commission Act 2002 for the resolution of disputes in relation to such rights; and (j) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002) establishing a scheme— (i) for other bodies to use or have access to the entity's transmission or distribution network for telecommunications purposes (subject to requirements as to technical feasibility and preservation of visual amenity); and (ii) for the resolution of disputes in relation to such use or access by a person other than the Commission who is appointed by the Commission; and (k) requiring the electricity entity to participate in an ombudsman scheme— (i) that applies to the electricity supply industry and to other regulated industries (within the meaning of the Essential Services Commission Act 2002) prescribed by regulation; and (ii) the terms and conditions of which are approved by the Commission; and (l) requiring the electricity entity to maintain insurance against any liability for causing a bushfire and to provide the Commission with a certificate of the insurer or the insurance broker by whom the insurance was arranged certifying (in a manner approved by the Commission) that the insurance is adequate and appropriate given the nature of the operations carried out under the entity's licence and the risks entailed in those operations; and (m) in the case of a licence authorising the operation of a transmission network— (i) requiring the business of the operation of the transmission network authorised by the licence to be kept separate from any other business of the electricity entity or any other person in the manner and to the extent specified in the conditions; and (ii) requiring the electricity entity— (A) to grant to each electricity entity holding a licence authorising the generation of electricity or the operation of a distribution network rights to use or have access to the entity's transmission network that are necessary for the purpose of ensuring the proper integrated operation of the State's power system and the proper carrying on of the operations authorised by the entity's licence; and (B) in the absence of agreement as to the terms on which such rights are to be granted, to comply with any determination of the Commission as to those terms; and (C) to comply with any code provisions in force from time to time under the Essential Services Commission Act 2002 establishing a scheme for the resolution of disputes in relation to such rights; and (n) in the case of a licence authorising the operation of a distribution network— (i) requiring the business of the operation of the distribution network authorised by the licence to be kept separate from any other business of the electricity entity or any other person in the manner and to the extent specified in the conditions; and (ii) requiring the electricity entity— (A) to grant to each electricity entity holding a licence authorising the generation of electricity or the operation of a transmission network rights to use or have access to the entity's distribution network that are necessary for the purpose of ensuring the proper integrated operation of the State's power system and the proper carrying on of the operations authorised by the entity's licence; and (B) in the absence of agreement as to the terms on which such rights are to be granted, to comply with any determination of the Commission as to those terms; and (C) to comply with any code provisions in force from time to time under the Essential Services Commission Act 2002 establishing a scheme for the resolution of disputes in relation to such rights; and (iii) requiring the electricity entity to establish customer consultation processes of a specified kind; and (iv) requiring or relating to standard contractual terms and conditions to apply to the supply of electricity to small customers or customers of a prescribed class; and (v) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002) imposing minimum standards of service for customers that are at least equivalent to the actual levels of service for such customers prevailing during the year prior to the commencement of this section and take into account relevant national benchmarks developed from time to time, and requiring the entity to monitor and report on levels of compliance with those minimum standards; and (vi) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002) limiting the grounds on which the supply of electricity to customers may be disconnected and prescribing the process to be followed before the supply of electricity is disconnected; and (vii) requiring a specified process to be followed to resolve disputes between the electricity entity and customers as to the supply of electricity; and (viii) requiring the electricity entity to enter into and comply with an agreement (on terms approved from time to time by the Commission) with each person holding a licence authorising the retailing of electricity who provides services to the same customers as the entity as to the co-ordination of the provision of services to those customers; and (x) requiring the electricity entity— (A) to investigate, before it makes any significant expansion of the distribution network or the capacity of the distribution network, whether it would be cost effective to avoid or postpone such expansion by implementing measures for the reduction of demand for electricity from the network; and (B) to prepare and publish reports relating to such demand management investigations and measures. (1a) In addition, it is a condition of a licence authorising the operation of a transmission or distribution network that the holder of the licence— (a) prepare and maintain an internal switching manual in accordance with the regulations; and (b) comply with any other requirements relating to switching prescribed in the regulations. (2) A condition of an electricity entity's licence imposed under subsection (1)(h) is not to be taken to require the granting to other electricity entities of rights to use or have access to the entity's transmission or distribution network for the support or use of electricity infrastructure of the other entities. (5a) If an electricity entity fails, within a period of 90 days from a date specified by the Commission by written notice to the entity, to enter into an agreement with another electricity entity specified by the Commission as required by a condition of the entity's licence imposed under subsection (1)(n)(viii), the entities will, if the Commission so determines and notifies the entities in writing, be taken to have entered into such an agreement containing terms specified in the notice. (5b) The Commission may, by written notice to the electricity entities bound by— (a) an agreement entered into as required by conditions of their licences imposed under subsection (1)(n)(viii) and section 24(2)(h); or (b) an agreement imposed under subsection (5a), vary or substitute terms of the agreement. (6) This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the operation of a transmission or distribution network. 24—Licences authorising retailing (2) The Commission must make a licence authorising the retailing of electricity subject to conditions determined by the Commission— (a) requiring, if the holder of the licence is a related body corporate (within the meaning of the Corporations Act 2001 of the Commonwealth) in relation to the holder of a licence authorising the operation of a distribution network, the business of the retailing of electricity authorised by the licence to be kept separate from the business of the operation of the distribution network in the manner and to the extent specified in the conditions; and (b) if the electricity entity sells electricity to customers of a prescribed class, requiring the electricity entity to maintain specified accounting records and to prepare accounts according to specified principles; and (c) requiring the electricity entity to establish customer consultation processes of a specified kind; and (d) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002 on or before the prescribed date) relating to the provision of pricing information to enable small customers to compare competing offers in the retailing of electricity; and (da) requiring the electricity entity to include (in a print size and form prescribed by regulation) in each account for electricity charges sent to a small customer information prescribed by regulation, including information relating to— (i) the customer's electricity consumption during the preceding 12 months; and (ii) the entity's daily charges for electricity during the period to which the account relates; and (iii) obtaining advice through the Commission about reducing electricity consumption and about electricity consumer choices; and (iv) greenhouse gas emissions associated with the customer's electricity consumption; and (e) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002) relating to standard contractual terms and conditions to apply to the sale of electricity to small customers; and (h) requiring the electricity entity to enter into and comply with an agreement (on terms approved from time to time by the Commission) with each person holding a licence authorising the operation of a distribution network who provides services to the same customers as the entity as to the co-ordination of the provision of services to those customers; and (i) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002) imposing minimum standards of service for customers that are at least equivalent to the actual levels of service for such customers prevailing during the year prior to the commencement of this section and take into account relevant national benchmarks developed from time to time, and requiring the entity to monitor and report on levels of compliance with those minimum standards; and (j) requiring the electricity entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002) limiting the grounds on which the supply of electricity to customers may be discontinued or disconnected and prescribing the process to be followed before the supply of electricity is discontinued or disconnected; and (k) requiring a specified process to be followed to resolve disputes between the electricity entity and customers as to the sale of electricity; and (l) if the electricity entity sells electricity to customers with an annual electricity consumption level of less than 750MW.h per year, requiring the electricity entity to participate in an ombudsman scheme— (i) that applies to the electricity supply industry and to other regulated industries (within the meaning of the Essential Services Commission Act 2002) prescribed by regulation; and (ii) the terms and conditions of which are approved by the Commission; and (m) requiring the electricity entity— (i) to investigate strategies for achieving a reduction of greenhouse gas emissions to such targets as may be set by the Environment Protection Authority from time to time or such levels as may be binding on the entity from time to time, including strategies for promoting the efficient use of electricity and the sale, as far as is commercially and technically feasible, of electricity produced through cogeneration or from sustainable sources; and (ii) to prepare and publish annual reports on the implementation of such strategies. (4) This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the retailing of electricity. 24A—Licences authorising system control (1) The Commission must make a licence authorising system control over a power system subject to conditions determined by the Commission requiring the business of system control authorised by the licence to be kept separate from any other business of the electricity entity or any other person in the manner and to the extent specified in the conditions. (1a) In addition, it is a condition of a licence authorising system control over a power system that the holder of the licence— (a) prepare and maintain an internal switching manual in accordance with the regulations; and (b) comply with any other requirements relating to switching prescribed in the regulations. (2) This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising system control over a power system. 24B—Licence conditions and national energy laws Despite the preceding provisions of this Part, the Commission is not to impose a condition on a licence if the Commission is satisfied that the condition would duplicate, or be inconsistent with, regulatory requirements under the National Electricity (South Australia) Act 1996, National Electricity Rules, National Energy Retail Law (South Australia) or National Energy Retail Rules. 25—Offence to contravene licence conditions (1) An electricity entity must not contravene a condition of its licence. Maximum penalty: $1 000 000. (2) An offence against subsection (1) may be prosecuted as an indictable offence or a summary offence at the discretion of the prosecutor but, if prosecuted as a summary offence, the maximum penalty that may be imposed for the offence is a fine not exceeding $20 000. 27—Variation of licence (1) The Commission may vary the terms or conditions of an electricity entity's licence by written notice to the entity as the Commission considers appropriate (but not so as to remove a condition that the Commission is required by this Act to impose on such a licence). (2) A variation may only be made— (a) on application by the electricity entity or with the electricity entity's agreement; or (b) after giving the electricity entity reasonable notice of the proposed variation and allowing the entity a reasonable opportunity to make representations about the proposed variation. 28—Transfer of licence (1) A licence may only be transferred with the Commission's agreement. (2) The Commission may impose conditions on the transfer of a licence, or vary the terms and conditions of the licence on its transfer. (3) The Commission must not agree to the transfer of a licence if the transferee would not be entitled to the issue of the licence. (4) An application for agreement to the transfer of a licence must— (a) be made by the transferor with the consent of the transferee to the Commission in a form approved by the Commission; and (b) contain the information specified in the form. (5) The applicant must pay to the Commission an application fee fixed by the Minister of an amount that the Minister considers appropriate to meet the reasonable costs of determining the application. (6) The applicant must give the Commission further relevant information requested by the Commission. 28A—Consultation with consumer bodies The Commission may, before issuing a licence, agreeing to the transfer of a licence or determining or varying conditions of a licence, consult with and have regard to the advice of— (a) the Commissioner for Consumer Affairs; and (b) the consumer advisory committee established under Part 2. 28B—Notice of licence decisions (1) The Commission must give an applicant for a licence, or for agreement to the transfer of a licence, written notice of the Commission's decision on the application. (2) The Commission must give the holder of a licence written notice of any decision by the Commission affecting the terms or conditions of the licence. 29—Surrender of licence (1) An electricity entity may, by written notice given to the Commission, surrender its licence. (2) The notice must be given to the Commission at least six months before the surrender is to take effect or, if the licence requires a longer period of notice, as required by the licence. (3) The Commission may, by agreement with the electricity entity, shorten the required period of notice. 30—Register of licences (1) The Commission must keep a register of the licences currently held by electricity entities under this Act. (2) The register must include— (a) the terms and conditions of each licence; and (b) other information required under the regulations. (3) A person may, without payment of a fee, inspect the Register. 30A—Licence is not personal property for the purposes of Commonwealth Act A licence under this Part is not personal property for the purposes of the Personal Property Securities Act 2009 of the Commonwealth. Division 2—System controller 31—Functions and powers of system controller (1) Subject to the regulations, a system controller for a power system has the function of monitoring and controlling the operation of the power system with a view to ensuring that the system operates safely and reliably. (2) A system controller for a power system has, in carrying out the system controller's functions under this Act— (a) power to issue directions to electricity entities that are engaged in the operation of the power system, or contribute electricity to, or take electricity from, the power system; and (b) the other powers conferred by regulation. (3) Without limiting subsection (2)(a), the directions may include directions— (a) to switch off or reroute a generator; (b) to call equipment into service; (c) to take equipment out of service; (d) to commence operation or maintain, increase or reduce active or reactive power output; (e) to shut down or vary operation; (f) to shed or restore customer loads. (4) If an electricity entity refuses or fails to comply with a direction of a system controller, the system controller may— (a) authorise a person to take the action required by the direction or to cause the action to be taken; and (b) give the electricity entity any directions the system controller considers necessary to facilitate the taking of the action. (5) Costs and expenses incurred in taking action or causing action to be taken under subsection (4) are recoverable from the electricity entity by the system controller as a debt in a court of competent jurisdiction. (6) The functions and powers of a system controller for a power system operated in the national electricity market, as defined in the National Electricity (South Australia) Law, may only be performed or exercised in a manner that is consistent with the National Electricity (South Australia) Law and the National Electricity Rules. 34—Remuneration of system controller A system controller will, in accordance with the regulations, be entitled to impose and recover charges in respect of the performance of the system controller's functions. 35—Obligation to preserve confidentiality (1) A system controller must preserve the confidentiality of information that— (a) could affect the competitive position of an electricity entity or other person; or (b) is commercially sensitive for some other reason. (2) Information classified by a system controller as confidential is not liable to disclosure under the Freedom of Information Act 1991. Division 2A—Price regulation 35A—Price regulation by Commission (1) The Commission may make a determination under the Essential Services Commission Act 2002 regulating prices, conditions relating to prices and price-fixing factors for— (a) the sale and supply of electricity to small customers; (ba) the feeding‑in of electricity into a distribution network under Division 3AB; (c) subject to the National Electricity (South Australia) Law and the National Electricity Rules—network services; (d) other goods and services in the electricity supply industry specified by the Minister by notice in the Gazette. (2) In making a determination, the Commission must (in addition to having regard to the factors specified in the Essential Services Commission Act 2002) have regard to the principle that the prices charged to small customers for network services in relation to the transmission network in South Australia and the distribution networks that are connected to it should be at the same rates for all small customers regardless of their location. (2a) In addition to the requirements of section 25(4) of the Essential Services Commission Act 2002, the Commission must, in acting