Electricity Supply Industry Act 1995
An Act to promote efficiency and competition in the electricity supply industry, to provide for a safe and efficient system of electricity generation, transmission, distribution and supply, to provide for the safety of electrical installations, equipment and appliances, to enforce proper standards in the performance of electrical work, to protect the interests of consumers of electricity and for related purposes
[Royal Assent 4 October 1995]
Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:
PART 1 - Preliminary
1. Short title
    This Act may be cited as the Electricity Supply Industry Act 1995 .
2. Commencement
    The provisions of this Act commence on a day or days to be proclaimed.
3. Interpretation
    In this Act, unless the contrary intention appears –
        AEMO (Australian Energy Market Operator) has the same meaning as in the National Electricity Rules;
        approved financial risk contract means a contract that –
                (a) is an approved type of contract; and
                (b) is in an approved standard form in relation to that type of contract; and
                (c) contains prices calculated in accordance with the approved methodology in respect of contracts that are in that approved standard form;
        approved methodology means a methodology approved under section 43G ;
        approved standard form means a standard form approved under section 43G ;
        approved type of contract means a type of contract approved under section 43G ;
        AER means the Australian Energy Regulator established by section 44AE of the Competition and Consumer Act 2010 of the Commonwealth;
        Aurora Energy means Aurora Energy Pty Ltd (ABN 85 082 464 622);
        Aurora Retail means Aurora Energy in its capacity as the holder of a retailer authorisation;
        Australian Energy Market Agreement means the Australian Energy Market Agreement made between the Commonwealth, State and Territory Governments on 30 June 2004 and all amendments to that Agreement;
        authorised officer means a person appointed under section 84 as an authorised officer;
        authorised retailer means a person who is the holder of a retailer authorisation;
        Basslink means the interconnection between the electricity grids of the States of Tasmania and Victoria by means of –
                (a) a high voltage, direct current, submarine cable across Bass Strait; and
                (b) converter stations in those States; and
                (c) direct current connecting lines to those converter stations; and
                (d) alternating current transmission connections to the transmission systems of those States; and
                (e) related infrastructure;
        Bass Strait Islands means those islands in the State of Tasmania known as King Island and Flinders Island;
        Bass Strait Islands tariff retailer means –
                (a) the holder of a licence issued under section 19A(2) ; and
                (b) the holder of a licence issued in accordance with section 19A(6) ;
        Code means the Tasmanian Electricity Code, as amended or substituted from time to time, issued under Division 9 of Part 3 ;
        Competition Code has the same meaning as in the Competition Policy Reform (Tasmania) Act 1996 ;
        connection means a physical link between a distribution system and a customer's premises to allow the flow of electricity;
        contestable customer means a customer who is determined by or under the regulations to be a contestable customer;
        customer means a person to whom electricity is sold for premises by a retailer or who proposes to purchase electricity for premises from a retailer;
        customer retail services means the sale of electricity by a retailer to a customer at premises;
        decision includes a direction or order;
        disconnect electricity supply includes a procedure to interrupt or discontinue the electricity supply to the electrical installation, or premises, of a customer;
        distribution of electricity means the carrying of electricity between different points using a distribution network;
        distribution network has the meaning given by section 3A ;
        distributor, in relation to premises, means an electricity entity that holds a licence to distribute electricity by way of the distribution network by which electricity may be supplied to the premises;
        electrical installation means a set of wires and associated fittings, equipment and accessories that forms part of a power system and includes a set of wires and associated fittings, equipment and accessories in premises to which a power system is connected;
        electricity means electrical energy generated, transmitted or supplied in trade or commerce (including electricity generated by a person engaged in trade or commerce for the person's own commercial use);
        electricity entity means a person licensed to carry on operations in the electricity supply industry under this Act and includes (where the context requires) a person who has been licensed to carry on operations in the electricity supply industry under this Act whose licence has been cancelled or has expired;
        electricity generating plant has the meaning given by section 3A ;
        electricity infrastructure means anything used for, or in connection with, the generation, transmission or distribution of electricity including –
                (a) electricity generating plant; and
                (b) structures and equipment to hold water, or to direct, monitor or control the flow of water, for the purposes of hydro-electric generation; and
                (c) powerlines; and
                (d) substations for converting, transforming or controlling electricity; and
                (e) equipment for metering, monitoring or controlling electricity;
        electricity officer means a person appointed under this Act as an electricity officer;
        electricity supply industry means the industry involved in the generation, transmission, distribution, supply and sale of electricity;
        energy Minister means the Minister assigned the administration of Division 1 of Part 3 ;
        extra high voltage means a nominal voltage of 88 kilovolts or above;
        generation of electricity means the operation of any kind of electricity generating plant including, in the case of hydro-electric power generation, the accumulation and release of water for the purpose of driving the generating plant and all incidental and related operations;
        high voltage means a nominal voltage of 1 kilovolt or above but less than 88 kilovolts;
        Jurisdictional Regulator has the same meaning as in the National Electricity Rules;
        land includes –
                (a) an estate or interest in land (including an easement); or
                (b) a right or power over or in respect of land;
        licence means a licence issued under section 19 or 19A ;
        load following swap means a type of contract that allows a retailer to manage financial risks associated with the purchase of a specified quantity of electricity over the duration of the contract, where that quantity is allocated to trading intervals, within the meaning of the National Electricity Rules, in proportion to the Tasmanian net system load profile, within the meaning of the NEM Metrology Procedures made in accordance with the National Electricity Rules;
        low voltage means a nominal voltage of less than 1 kilovolt;
        mainland Tasmania means all parts of Tasmania other than any off-shore island of Tasmania (except for Bruny Island);
        market retail contract has the meaning it has in the National Energy Retail Law (Tasmania);
        National Electricity Law means the National Electricity Law contained in the schedule (as amended from time to time) to the National Electricity (South Australia) Act 1996 of South Australia;
        National Electricity Market means the wholesale electricity market operated and administered by AEMO under the National Electricity Rules;
        National Electricity Rules has the same meaning as in the National Electricity Law;
        National Energy Retail Law (Tasmania) has the meaning it has in the National Energy Retail Law (Tasmania) Act 2012 ;
        National Energy Retail Regulations (Tasmania) has the meaning it has in the National Energy Retail Law (Tasmania) Act 2012 ;
        National Energy Retail Rules means the National Energy Retail Rules, within the meaning of the National Energy Retail Law (Tasmania), as modified in their application in this jurisdiction under the National Energy Retail Law (Tasmania) Act 2012 ;
        NEM entry time means the time at which section 6 of the Electricity - National Scheme (Tasmania) Act 1999 commences;
        network services means –
                (a) the transmission and distribution of electricity between electricity entities and from electricity entities to customers; and
                (b) controlling and regulating the quality of electricity;
        non-contestable customer means a small customer who is not a contestable customer;
        officer means –
                (a) in relation to a body corporate, an officer within the meaning of the Corporations Act;
                (b) in relation to an organisation that is not incorporated, a person with executive or administrative authority in the organisation;
        operations includes activities;
        power system means a system for the generation, transmission or distribution of electricity;
        powerline means –
                (a) a set of cables for the transmission or distribution of electricity and their supporting or protective structures; and
                (b) associated equipment for the transmission or distribution of electricity;
        prepayment meter system has the same meaning as in the National Energy Retail Law (Tasmania);
        price includes a tariff and a charge;
        public land means land –
                (a) belonging to the Crown, an Agency, within the meaning of the State Service Act 2000 or an instrumentality of the Crown; or
                (b) belonging to a local authority;
        regulated offer retailer means an authorised retailer who is declared to be a regulated offer retailer in an order made under section 38B(1) ;
        regulations means regulations made and in force under this Act;
        Regulator means the person appointed as the Regulator under section 5 ;
        retailer means a person who sells, or proposes to sell, for premises, electricity to a customer;
        retailer authorisation has the meaning it has in the National Energy Retail Law (Tasmania);
        reviewable decision means any direction, decision or determination under this Act, the regulations or the Code, other than –
                (a) a decision of the Regulator or the Minister to make an order, approval or determination under Division 4 , 4A or 5A of Part 3 ; or
                (b) a direction, decision or determination declared by this Act, the regulations or the Code not to be reviewable;
        small customer means a customer who is a small customer under the National Energy Retail Law (Tasmania);
        standard retail contract has the meaning it has in the National Energy Retail Law (Tasmania);
        standing offer prices has the meaning it has in the National Energy Retail Law (Tasmania);
        subsidiary has the same meaning as in the Corporations Act;
        supply of electricity means the delivery of electricity to the electrical installation of a customer;
        transmission of electricity means the carrying of electricity between different points using a transmission system;
        transmission system has the same meaning as in the National Electricity Rules;
        workplace health and safety Secretary means the Secretary of the department responsible for the administration of the Work Health and Safety Act 2012 .
3A. Meaning of distribution network and electricity generating plant
        (1) In this Act, a reference to distribution network is a reference to the apparatus, electric lines, equipment, plant, and buildings, used to convey or control the conveyance of electricity, that the National Electricity Rules specify as, or as forming part of, a distribution system.
        (2) . . . . . . . .
        (3) An electricity generating plant is a facility or plant that is or could be used to generate electricity, and includes all equipment at that facility or plant.
        (4) The Regulator may declare that any equipment, or any equipment of a specified class, is to be treated as part of a specified distribution network, transmission system or electricity generating plant for the purposes of the Act, the regulations and the Code generally or for the purposes of a specified provision of the Act, the regulations or the Code.
        (5) While a declaration under subsection (4) has effect, any equipment to which the declaration applies –
                (a) forms part of the specified distribution network, transmission system or electricity generating plant for the specified purpose; and
                (b) does not form part of any other distribution network, transmission system or electricity generating plant for the specified purpose.
        (6) In subsections (3) , (4) and (5) –
            equipment means powerlines, substations, plant, structures or other equipment;
            specified means specified in the relevant declaration made under subsection (4) .
        (7) The Regulator may amend or revoke a declaration under subsection (4) .
        (8) A declaration under subsection (4) or an amendment or revocation of such a declaration –
                (a) is to be made by notice published in the Gazette; and
                (b) is not a statutory rule for the purposes of the Rules Publication Act 1953 .
4. Crown to be bound
    This Act binds the Crown in right of Tasmania and, so far as the legislative power of Parliament permits, in all its other capacities.
PART 2 - Administration
Division 1 - The Regulator
5. The Regulator
        (1) The office of the Regulator is established.
        (2) The Regulator, within the meaning of the Economic Regulator Act 2009 , is appointed as the Regulator.
6. Regulator's functions and powers
        (1) The Regulator's functions are –
                (a) to administer the licensing system for electricity entities established by this Act; and
                (ab) to monitor and provide reports in relation to the development of competition in respect of the electricity supply industry; and
                (b) to monitor and regulate technical standards in the electricity supply industry; and
                (ba) to monitor and enforce the compliance of electricity entities with their licence conditions; and
                (c) to perform and exercise the functions and powers of Jurisdictional Regulator in respect of Tasmania under the National Electricity Rules; and
                (ca) to issue, maintain, administer and enforce the Code; and
                (d) to carry out the other functions assigned to the Regulator under this Act, the regulations and the Code.
        (2) In exercising powers and functions under this Act, other than the powers and functions referred to in subsection (1)(c) , the Regulator's objectives are–
                (a) to promote efficiency and competition in the electricity supply industry; and
                (b) to establish and maintain a safe and efficient system of electricity generation, transmission, distribution and supply; and
                (c) to establish and enforce proper standards of safety, security, reliability and quality in the electricity supply industry; and
                (d) to protect the interests of consumers of electricity.
        (3) The Regulator has power to do all things necessary or convenient to be done in connection with, incidental to or related to the performance and exercise of the Regulator's functions and powers.
        (4) In performing and exercising his or her functions and powers, the Regulator is to take into account the provisions of the National Electricity Rules and the desirability of avoiding duplication of, or inconsistency with, regulatory arrangements under the National Electricity Rules.
        (5) In performing and exercising his or her functions and powers, other than the functions and powers referred to in subsection (1)(c) , the Regulator is to take into account the policy that it is desirable for the businesses of electricity entities and authorised retailers to be financially sustainable.
        (6) . . . . . . . .
7. Enforcement of Act by Regulator
        (1) If the Regulator is satisfied that an electricity entity has contravened this Act or the conditions of the licence held by the electricity entity, the Regulator may impose on the electricity entity a monetary penalty not exceeding –
                (a) 5 000 penalty units for the first day on which the contravention occurs; and
                (b) a further fine not exceeding 200 penalty units for each subsequent day on which the contravention continues.
        (2) If there is more than one electricity entity that may be taken to have contravened this Act in respect of a single event, the Regulator may take any action under this section in respect of one or more such electricity entities as the Regulator thinks fit.
        (3) A decision of the Regulator under this section may be subject to administrative review under Part 9 .
8. Administrative fairness and independence
        (1) In exercising powers and functions under this Act, the Regulator must not unfairly discriminate between electricity entities that are authorised to provide similar services, between authorised retailers, between customers for electricity or between other persons.
        (2) In exercising powers and functions under this Act, the Regulator is not subject to the direction of the Minister or any other person.
        (3) Subsection (2) does not apply in respect of the directions of the Minister properly contained in a notice under section 9 , section 36 or the directions given in accordance with regulations for the purposes of Division 4 or 4A of Part 3 .
9. Special reports to Minister
    The Regulator must report to the Minister on subjects on which the Minister requires a report as and when required by the Minister.
10. Annual report
    The annual report made by the Regulator, within the meaning of the Economic Regulator Act 2009 , under that Act is to include a report on the performance and exercise of the Regulator's functions and powers under this Act.
10A. State of the industry report
        (1) The Regulator may prepare a report on the state of the electricity supply industry (the state of the industry report).
        (2) The Regulator is to prepare a state of the industry report –
                (a) on the Regulator's own initiative; or
                (b) if directed to do so by the energy Minister and the Minister assigned the administration of the Economic Regulator Act 2009 .
        (3) A direction under subsection (2)(b) to prepare a state of the industry report may include the terms of reference for that state of the industry report.
        (4) The Regulator is to cause a copy of the state of the industry report to be –
                (a) laid before each House of Parliament within 7 sitting-days after preparing it; and
                (b) made available to members of the public in such a manner as the Regulator considers appropriate.
10B. Network reliability report
        (1) At least once in every 3-year period, the Regulator is to conduct a review into the reliability of network services.
        (2) After conducting a review under subsection (1) , the Regulator is to prepare a report on the findings of the review (the network reliability report).
        (3) The Regulator is to conduct a review under subsection (1) –
                (a) on the Regulator's own initiative; or
                (b) if directed to do so by the energy Minister and the Minister assigned the administration of the Economic Regulator Act 2009 .
        (4) A direction under subsection (3)(b) to conduct a review under subsection (1) may include the terms of reference for the network reliability report that is to be prepared in respect of the review.
        (5) The Regulator is to cause a copy of the network reliability report to be –
                (a) laid before each House of Parliament within 7 sitting-days after preparing it; and
                (b) made available to members of the public in such a manner as the Regulator considers appropriate.
10C. Price comparison report
        (1) In this section –
            pricing Minister means the Minister assigned the administration of Division 4 of Part 3 .
        (2) The Regulator –
                (a) may prepare a report into the comparison of electricity prices available to small customers across Australian jurisdictions (the price comparison report); and
                (b) is to prepare a report into the comparison between the prices of a prepayment meter system and all other relevant retail electricity prices for small customers in Tasmania (the prepayment price comparison report).
        (3) The Regulator is to prepare a price comparison report –
                (a) on the Regulator's own initiative; or
                (b) if directed to do so by the pricing Minister and the Minister assigned the administration of the Economic Regulator Act 2009 .
        (4) A direction under subsection (3)(b) to prepare a price comparison report may include the terms of reference for that report.
        (5) The Regulator is to prepare a prepayment price comparison report annually.
        (6) The Regulator is to cause a copy of each report prepared under subsection (2) to be –
                (a) laid before each House of Parliament within 7 sitting-days after preparing it; and
                (b) made available to members of the public in such a manner as the Regulator considers appropriate.
Division 2 - Executive and advisory committees
11. Executive committees
        (1) An executive committee may be established by regulation to exercise specified powers and functions as a delegate of the Regulator.
        (2) A regulation establishing an executive committee to exercise specified powers and functions operates as a delegation of the relevant powers and functions to the committee (which is revocable only as provided in the regulation itself or by a later regulation).
        (3) The members of an executive committee are appointed and hold office on terms and conditions determined by the Minister.
        (4) A committee established under this section –
                (a) is responsible to the Regulator for the proper exercise of its powers and functions; and
                (b) is subject to control and direction by the Regulator; and
                (c) must report on the exercise of delegated powers and functions as required by the Regulator.
12. Advisory committees
        (1) The Minister or the Regulator may establish an advisory committee to advise the Minister or the Regulator (or both) on specified aspects of the administration of this Act.
        (2) The members of an advisory committee established under this section by the Minister are appointed and hold office on such terms and conditions as the Minister determines.
        (3) The members of an advisory committee established under this section by the Regulator are appointed and hold office on such terms and conditions as the Regulator determines.
Division 3 - Delegation
13. Delegation
    The Regulator may delegate powers to a person or body of persons that is, in the Regulator's opinion, competent to exercise the relevant powers.
Division 4 - Regulator's power of direction
14. Regulator's power of direction
        (1) The Regulator may, for the purposes of this Act, give directions to an electricity entity.
        (2) A direction under this section must be given in writing.
Division 5 - Power to obtain information
15. Regulator's power to require information
        (1) The Regulator may, by written notice, require a person to give the Regulator, within a time stated in the notice (which must be reasonable), information in the person's possession that the Regulator reasonably requires for the administration of this Act, the regulations, the Code and the National Electricity Rules.
        (2) A person required to give information under this section must provide the information within the time stated in the notice.
        Penalty: For a body corporate a fine not exceeding 100 penalty units and for a natural person a fine not exceeding 50 penalty units.
        (3) A person may not be compelled to give information under this section if the information might tend to incriminate the person of an offence.
        (4) A requirement to provide information under this section is not reviewable.
Division 6 - Confidential information
16. Obligation to preserve confidentiality
        (1) The Regulator 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 the Regulator as confidential is not liable to disclosure under the Right to Information Act 2009 .
        (3) A classification of information by the Regulator as confidential (or not confidential) is not reviewable.
Division 7 - Conferral of Regulator's functions and powers on AER
16A. Conferral agreement
    On behalf of the State, the Minister may enter into an agreement with the Commonwealth in respect of the performance and exercise of any or all of the functions and powers of the Regulator under this Act, the regulations or the Code by the AER.
16B. Conferral notice
        (1) If the Minister has entered into an agreement under section 16A , the Minister may specify, by notice published in the Gazette, the functions and powers of the Regulator under this Act, the regulations or the Code that are to be performed and exercised by the AER.
        (2) A notice under subsection (1) –
                (a) is to be consistent with the agreement made under section 16A ; and
                (b) may provide for all matters relating to the conferral of the functions and powers of the Regulator on the AER.
        (3) The Minister may amend or repeal a notice under subsection (1) by notice published in the Gazette.
        (4) A notice under subsection (1) or (3) takes effect –
                (a) on a day, or at a time, specified in it; or
                (b) on the happening of an event specified in it; or
                (c) if no day, time or event is so specified in it, on the day it is published in the Gazette.
        (5) A notice under subsection (1) or (3) must not specify a day, time or event for the purposes of subsection (4)(a) or (b) that is earlier than the time at which the notice would take effect if no day, time or event were so specified.
        (6) A notice under subsection (1) or (3) is not a statutory rule for the purposes of the Rules Publication Act 1953 .
16C. Conferral of transmission pricing functions and powers
        (1) On the taking effect of a notice referred to in section 16B in respect of the conferral on the AER of a function or power of the Regulator, that function or power –
                (a) is conferred on the AER; and
                (b) at the discretion of the AER, may be performed or exercised by the AER.
        (2) The AER may do all things necessary or convenient to be done in connection with, or incidental to, the performance or exercise of a function or power conferred on it by subsection (1) .
        (3) A function or power conferred on the AER by subsection (1) may be performed or exercised by the Regulator.
        (4) Despite subsection (3) , the Regulator may not perform or exercise a function or power conferred on the AER by subsection (1) in relation to any matter if –
                (a) the AER is performing or exercising that function or power in respect of that matter; or
                (b) the AER has performed or exercised that function or power in respect of that matter; or
                (c) the Regulator believes that the AER intends to perform or exercise that function or power in respect of that matter.
        (5) Despite section 16 , any other provision of this Act, any other Act and any other law, the Regulator is authorised, on his, her or its own initiative or at the request of the AER –
                (a) to provide the AER with such information (including information given in confidence) in the possession or control of the Regulator that is reasonably required by the AER for the purposes of performing and exercising the functions and powers conferred on it by this section; and
                (b) to provide the AER with such other assistance as is reasonably required by the AER for the purposes of performing and exercising those functions and powers.
        (5A) Despite section 16 , any other provision of this Act, any other Act and any other law, the Regulator may authorise the AER to disclose information provided under subsection (5) even if the information was given to the Regulator in confidence.
        (5B) Nothing done, or authorised to be done, by the Regulator when acting under subsection (5) or (5A) –
                (a) constitutes a breach of, or default under, this Act, another Act or another law; or
                (b) constitutes a breach of, or default under, a contract, agreement, understanding or undertaking; or
                (c) constitutes a breach of a duty of confidence (whether arising by contract, in equity or by custom) or in any other way; or
                (d) constitutes a civil or criminal wrong; or
                (e) terminates an agreement or obligation or fulfils any condition that allows a person to terminate an agreement or obligation, or gives rise to any other right or remedy; or
                (f) releases a person wholly or in part from an obligation.
        (6) Except as otherwise specified in a notice referred to in section 16B , the provisions of this Act, the regulations and the Code apply to the AER in the performance and exercise by it of functions and powers conferred on it by this section as if it were the Regulator.
16D. Termination of conferral agreement
    On the termination of an agreement referred to in section 16A –
            (a) all notices under section 16B in respect of the conferral on the AER of a function or power of the Regulator are revoked; and
            (b) the conferral of that function or power on the AER ceases to have effect; and
            (c) the AER is no longer entitled to perform or exercise that function or power.
PART 3 - The Electricity Supply Industry
Division 1 - Licensing of electricity entities
Subdivision 1 - Issue of licences
17. 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 Act authorising the relevant operations.
        Penalty: For a body corporate a fine not exceeding 1 000 penalty units and for a natural person a fine not exceeding 500 penalty units.
        (2) The operations in the electricity supply industry for which a licence is required are –
                (a) generation of electricity; or
                (b) transmission of electricity; or
                (c) distribution of electricity; or
                (d) the retailing of electricity in the Bass Strait Islands; or
                (e) other operations for which a licence is required by the regulations.
        (3) The regulations may provide that licences are not required in such circumstances as are specified in the regulations.
18. Application for licence
        (1) An application for a licence –
                (a) must be made to the Regulator in a form approved by the Regulator and contain the information specified in the form; and
                (b) must identify the applicant's officers and, if applicable, its major shareholders; and
                (c) must –
                        (i) if authority for generation of electricity is sought, contain details of the generating plant or proposed generating plant, identify the transmission system or distribution network to which the generating plant is to be connected and describe how the connection is to be made; and
                        (ii) if authority to operate a transmission system is sought, contain details of the transmission system or proposed transmission system and, if the transmission system is to be connected to another transmission system, details of the proposed connection; and
                        (iii) if authority to operate a distribution network is sought, contain details of the distribution network or proposed distribution network (including details of the area to be served by the distribution network); and
                        (iv) if authority for retailing electricity in the Bass Strait Islands is sought, contain details of the business or proposed business; and
                        (v) if authority is sought to carry out other operations in the electricity supply industry for which a licence is required under the regulations, contain details of the proposed operations and the other information required under the regulations; and
                (d) must be accompanied by the application fees required under the regulations.
        (2) The applicant must give the Regulator further relevant information requested by the Regulator.
19. Consideration of application
        (1) The Regulator must consider an application for the issue of a licence and may issue, or refuse to issue, the licence.
        (2) The Regulator may only issue a licence if satisfied that –
                (a) the applicant is a suitable person to hold the licence; and
                (b) . . . . . . . .
                (c) 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 system or distribution network; and
                (d) in the case of a licence authorising the operation of a transmission system, the transmission system has (or the proposed transmission system will have) the necessary capacity for transmitting electricity safely; and
                (e) in the case of a licence authorising the operation of a distribution network, the distribution network has (or the proposed distribution network will have) the necessary capacity for distributing electricity safely; and
                (f) . . . . . . . .
                (fa) . . . . . . . .
                (g) 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
                (h) 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.
        (2A) . . . . . . . .
        (3) In deciding whether an applicant is a suitable person to hold a licence, the Regulator 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.
19A. Bass Strait Islands power system
        (1) In this section –
            Bass Strait Islands power system means the system for generation and distribution of electricity in the Bass Strait Islands.
        (2) On the day on which this section comes into operation, the Regulator must issue –
                (a) a licence to the Hydro-Electric Corporation to carry on, in relation to the Bass Strait Islands, the operations in the electricity supply industry referred to in section 17(2)(a) ; and
                (b) a licence to the Hydro-Electric Corporation to carry on, in relation to the Bass Strait Islands, the operations in the electricity supply industry referred to in section 17(2)(c) ; and
                (c) a licence to the Hydro-Electric Corporation to carry on the operations in the electricity supply industry referred to in section 17(2)(d) .
        (3) Section 19 , section 21 , section 27(1) and (3) , section 29 and section 30 do not apply in relation to a licence issued under subsection (2) .
        (4) On the day on which this section comes into operation, section 4 of the Electricity Supply Industry Restructuring (Savings and Transitional Provisions) Act 1995 ceases to apply in relation to the Hydro-Electric Corporation in respect of regulated operations, in an electricity supply industry referred to in section 17(2)(a) , (c) or (d) , carried on in relation to the Bass Strait Islands.
        (5) The Regulator, with the approval of the Treasurer and the Minister, may –
                (a) by notice in writing to the Hydro-Electric Corporation, revoke a licence issued under subsection (2) ; or
                (b) by notice in writing to the holder of a licence issued in accordance with subsection (6) , revoke the licence.
        (6) If a licence that is revoked under subsection (5) is –
                (a) a licence to carry on operations in an electricity supply industry that is referred to in section 17(2)(a) , the Regulator may issue to a person under section 19 a licence, to carry on such operations in relation to the Bass Strait Islands, that is subject to the condition specified in section 19B(2) ; or
                (b) a licence to carry on operations in an electricity supply industry that is referred to in section 17(2)(c) , the Regulator may issue to a person under section 19 a licence, to carry on such operations in relation to the Bass Strait Islands, that is subject to the condition specified in section 19B(2) and the condition specified in section 19B(3) ; or
                (c) a licence to carry on operations in an electricity supply industry that is referred to in section 17(2)(d) , the Regulator may issue to a person under section 19 a licence, to carry on such operations in relation to the Bass Strait Islands, that is subject to the condition specified in section 19B(2) .
        (7) Nothing in subsection (6) is to be taken to prevent the Regulator issuing under section 19 a licence that is not subject to the condition specified in section 19B(2) or the condition specified in section 19B(3) .
        (8) The Regulator may only issue a licence in accordance with subsection (6) with the approval of the Treasurer and the Minister and the applicant for the licence.
19B. Conditions of, and liabilities in respect of, certain licences in relation to Bass Strait Islands
        (1) This section applies to –
                (a) a licence issued under section 19A(2) ; and
                (b) a licence issued in accordance with section 19A(6) .
        (2) Without limiting the conditions to which a licence to which this section relates may be subject under this Act, such a licence is subject to the condition that it only authorises the carrying on in the Bass Strait Islands of the operations in an electricity supply industry to which the licence relates.
        (3) It is a condition of a licence to which this section relates, issued in respect of the electricity supply industry referred to in section 17(2)(c) , that the holder of the licence must –
                (a) continuously monitor the operation of the Bass Strait Islands power system; and
                (b) control the input of electricity and the loads placed on the Bass Strait Islands power system to ensure that –
                        (i) the integrity of the Bass Strait Islands power system is maintained; and
                        (ii) the Bass Strait Islands power system operates efficiently, reliably and safely; and
                (c) perform the functions in relation to the Bass Strait Islands that are assigned to the holder of the licence under the regulations or the Code; and
                (d) exercise the powers in relation to the Bass Strait Islands that the holder of the licence is required to exercise under the regulations or the Code.
        (4) In performing, in relation to the Bass Strait Islands, the functions or powers referred to in subsection (3) , the holder of a licence to which this section relates has, in addition to the powers referred to in subsection (3) , any other power imposed or conferred on the holder of the licence by the regulations or the Code.
        (5) The holder of a licence to which this section relates is not liable for an act or omission, in relation to the Bass Strait Islands, that is done, or omitted to be done, in good faith, by –
                (a) the holder of the licence; or
                (b) an employee or agent of the holder of the licence –
        in the exercise or performance, or the purported exercise or performance, of a power or function, referred to in subsection (3) or (4) , of the holder of the licence.
        (6) An employee or agent of the holder of a licence to which this section relates is not personally liable for an act, or omission, in relation to the Bass Strait Islands, that is done, or omitted to be done, in good faith, in the exercise or performance, or the purported exercise or performance, of a power or function, referred to in subsection (3) or (4) , of the holder of the licence.
Subdivision 2 - Terms and conditions of licence
20. Authority conferred by licence
        (1) A licence authorises the electricity entity that holds the licence to carry on operations in the electricity supply industry for which a licence is required 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 but may consist of a combination of different operations for which a licence is required.
21. Term of licence
        (1) A licence is granted for a term (not exceeding 10 years) stated in the licence.
        (2) The term of a licence is, subject to the conditions of the licence, renewable.
        (3) An application for renewal of a licence must be made, in writing, to the Regulator at least 3 months, but not more than 6 months, before the end of the licence term (but the Regulator may grant an exemption from this requirement in an appropriate case).
        (4) The Regulator must not unreasonably refuse an application for renewal of a licence.
22. Conditions of licence
        (1) A licence is subject to the following conditions:
                (a) conditions determined by the Regulator on the issue or amendment of the licence;
                (b) a condition that the electricity entity must comply with standards, codes and requirements stated in the licence or prescribed by regulation;
                (c) a condition that the electricity entity must comply with this Act and any regulation that applies to the electricity entity;
                (d) a condition that the electricity entity must comply with the provisions of the Code, other than any provisions specifically exempted from the operation of this paragraph in the licence;
                (e) a condition that the electricity entity must comply with directions or requirements given or made by the Regulator under this Act, the regulations or the Code;
                (f) a condition that the electricity entity must comply with –
                        (i) any award made under the Energy Ombudsman Act 1998 ; and
                        (ii) any decision of any court in respect of a matter that could have been the subject of a complaint under the Energy Ombudsman Act 1998 or resulted from proceedings commenced on the recommendation of the Ombudsman under that Act; and
                        (iii) any decision of any tribunal, board or other person in respect of a matter that could have been the subject of a complaint under the Energy Ombudsman Act 1998 or resulted from the referral of that matter to the tribunal, board or other person by the Ombudsman under that Act;
                (g) a condition that the electricity entity must pay periodic and other fees and charges fixed by or in accordance with the licence;
                (h) in respect of a licence authorising the transmission, distribution or retailing of electricity, a condition that the electricity entity cannot use any prescribed expression or logo or any expression or logo of a prescribed class –
                        (i) as part of the trading name of the entity; or
                        (ii) in any way to promote the entity or its products;
                (i) a condition that the electricity entity become a member of any relevant prescribed body;
                (j) in respect of a licence authorising the generation of electricity, a condition that the electricity entity publish information relating to the electricity entity's energy production capability of the kind prescribed in the regulations.
        (2) Without limiting subsection (1) , the conditions of a licence that the Regulator may determine may include conditions of a prescribed kind.
        (3) The Regulator must not determine as a condition of a licence authorising the generation of electricity issued to the Hydro-Electric Corporation a condition that relates to a matter referred to in section 36(1) .
23. Matters to be included in licence
    A licence must –
            (a) state the name of the electricity entity that holds the licence; and
            (b) state the operations in the electricity supply industry that are authorised by the licence (including, where relevant, the geographic location of the operations); and
            (c) state the term of the licence; and
            (d) contain the conditions determined by the Regulator.
Subdivision 3 - Special licence obligations
24.
. . . . . . . .
24A. Licence condition relating to system security capability
    If a licence authorises an electricity entity to operate a transmission system, it is a condition of the licence that the electricity entity must ensure that it has the capability to maintain the security of the system on mainland Tasmania.
25.
. . . . . . . .
26. Obligation to supply
        (1) . . . . . . . .
        (2) An electricity entity is not obliged to supply electricity to a customer if–
                (a) the supply would overload the power system or prejudice in some other way the supply of electricity to other customers; or
                (b) the supply would result in contravention of the conditions of the electricity entity's licence; or
                (c) the supply would result in risk of fire or some other risk to life or property; or
                (d) the supply is or needs to be interrupted–
                        (i) in an emergency; or
                        (ii) in circumstances beyond the electricity entity's control; or
                        (iii) for carrying out work on electricity infrastructure; or
                        (iv) to comply with a direction to the electricity entity under this Act; or
                (e) the electricity entity is exempted from the obligation by regulation.
Subdivision 4 - Miscellaneous
27. Notice of licence decisions and limitations on review and appeal
        (1) The Regulator must give an applicant for the grant or renewal of a licence written notice of the Regulator's decision on the application.
        (2) The Regulator must give the holder of a licence written notice of any decision by the Regulator affecting the terms or conditions of the licence.
        (3) A decision by the Regulator on an application for the grant or renewal of a licence is reviewable under this Act on application by the applicant but is not reviewable on the application of any other person.
        (4) A decision by the Regulator affecting the terms or conditions of a licence is reviewable under this Act on application by the electricity entity that holds the licence but is not reviewable on the application of any other person.
28. Amendment of licence
        (1) The Regulator may amend the terms or conditions of an electricity entity's licence.
        (2) An amendment may only be made –
                (a) with the electricity entity's agreement; or
                (b) after giving the electricity entity reasonable notice of the proposed amendment and allowing the entity a reasonable opportunity to make representations about the proposed amendment.
29. Transfer of licence
        (1) A licence may be transferred with the Regulator's agreement.
        (2) The Regulator may impose conditions on the transfer of a licence, or amend the terms and conditions of the licence on its transfer.
30. Surrender of licence
        (1) An electricity entity may, by written notice given to the Regulator, surrender its licence.
        (2) The notice must be given to the Regulator at least 6 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 Regulator may, by agreement with the electricity entity, shorten the required period of notice.
31. Register of licences
        (1) The Regulator must keep a register of the licences issued to 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, on payment of a fee fixed by the Regulator, inspect the Register.
Division 2 - . . . . . . . .
32.
. . . . . . . .
33.
. . . . . . . .
34.
. . . . . . . .
34A.
. . . . . . . .
35.
. . . . . . . .
Division 3 - Special provisions relating to Hydro-Electric Corporation
36. Ministerial notice relating to Basslink
        (1) After consulting with the Hydro-Electric Corporation, the Minister may establish, by written notice provided to the Hydro-Electric Corporation, principles to be followed by the Hydro-Electric Corporation in relation to –
                (a) the exercise by it of any rights it has under any agreement specified in that notice –
                        (i) to make, revise or amend; or
                        (ii) to request the making, revising or amending of; or
                        (iii) to control, approve or direct the content of –
                network dispatch offers under the National Electricity Rules in relation to Basslink; and
                (b) the making available by the Hydro-Electric Corporation of any moneys that –
                        (i) are payable to the Hydro-Electric Corporation under any agreement specified in that notice; and
                        (ii) are calculated by reference to, or relate to, moneys received or receivable under the National Electricity Rules in respect of the transfer of electricity from Victoria to Tasmania by means of Basslink.
        (2) A notice under subsection (1) may provide for any other matter related to, or necessary or convenient to be included in respect of, a matter referred to in that subsection including, but not limited to –
                (a) the day by which, in each year during which the notice is in force, the Hydro-Electric Corporation must prepare and provide a draft compliance plan under section 37 ; and
                (b) the functions of the Regulator in respect of the compliance by the Hydro-Electric Corporation with the principles established in the notice and a compliance plan under section 37 ; and
                (c) terms of reference and objectives for the Regulator in performing his or her functions; and
                (d) matters and information required to be included in a compliance plan under section 37 ; and
                (e) disclosure of information by the Hydro-Electric Corporation; and
                (f) the manner in which moneys referred to in subsection (1)(b) are to be made available; and
                (g) any process to be followed by the Hydro-Electric Corporation in giving effect to the principles established in the notice.
        (3) The Minister, by written notice provided to the Hydro-Electric Corporation, may amend or revoke a notice under subsection (1) or this subsection.
        (4) The Minister is to provide a copy of a notice under subsection (1) or (3) to the Regulator.
        (5) A notice under subsection (1) or (3) –
                (a) takes effect on the day on which it is provided to the Hydro-Electric Corporation or on a later day specified in it; and
                (b) is not a statutory rule for the purposes of the Rules Publication Act 1953 .
37. Compliance plan
        (1) In each year during which a notice under section 36(1) is in force, the Hydro-Electric Corporation must prepare and provide a draft compliance plan to the Minister on or before the day specified in the notice.
        (2) The draft compliance plan is to –
                (a) specify details as to the manner in which, and when, the Hydro-Electric Corporation proposes to comply with the principles established in the notice under section 36(1) ; and
                (b) contain any matters and information required by that notice to be included in the compliance plan.
        (3) On receipt of a draft compliance plan, the Minister may do any one or more of the following:
                (a) require the Hydro-Electric Corporation to provide further information;
                (b) require the Hydro-Electric Corporation to provide to the Minister within the time specified by the Minister an amended draft compliance plan;
                (c) amend the draft compliance plan or the amended draft compliance plan;
                (d) approve the draft compliance plan or an amended draft compliance plan as the compliance plan.
        (4) If the Hydro-Electric Corporation fails to provide a draft compliance plan to the Minister by the day it is required to do so, the Minister may determine a compliance plan for the Hydro-Electric Corporation.
        (5) The compliance plan –
                (a) takes effect when the Hydro-Electric Corporation receives –
                        (i) notice of its approval under subsection (3)(d) ; or
                        (ii) notice of its determination under subsection (4) and a copy of the compliance plan; and
                (b) has effect until a further compliance plan so approved or determined by the Minister takes effect.
        (6) The Hydro-Electric Corporation must –
                (a) comply with the compliance plan; and
                (b) publish the compliance plan on its website.
        (7) Each year the Hydro-Electric Corporation must –
                (a) have its compliance with the compliance plan audited by a person approved by the Regulator; and
                (b) provide a copy of the report of that person on the audit to the Regulator.
37A.
. . . . . . . .
Division 4 - Retailing of electricity to certain customers
Subdivision 1 - Retailing generally
38. Only Aurora Retail may retail electricity to non-contestable customers on mainland Tasmania
        (1) A person other than Aurora Retail must not sell, or offer to sell, electricity to a non-contestable customer at premises situated on mainland Tasmania.
        Penalty: In the case of –
                (a) a body corporate, a fine not exceeding 1 000 penalty units; or
                (b) an individual, a fine not exceeding 500 penalty units.
        (2) Subsection (1) does not apply, in relation to a non-contestablecustomer who is a move-in customer, within the meaning of the National Energy Retail Law (Tasmania), until 3 months after the non-contestable customer becomes such a customer.
        (3) Subsection (1) does not apply in relation to –
                (a) a person to whom section 23 of the National Energy Retail Law (Tasmania) Act 2012 applies; or
                (b) a sale of electricity to which section 23 of the National Energy Retail Law (Tasmania) Act 2012 applies or an offer to sell such electricity; or
                (c) a person who is an exempt seller, within the meaning of the National Energy Retail Law (Tasmania), if the sale of electricity to which that subsection would otherwise apply is permitted, or not prohibited, by the terms of the exemption of the person.
        (4) A retailer authorisation under the National Energy Retail Law (Tasmania) is of no effect under that Law to the extent that it authorises, or purports to authorise, an authorised retailer to sell electricity to a customer in contravention of this section.
        (5) This section ceases to have effect immediately before 1 January 2014.
38A. Transitional provisions in relation to retail sales
        (1) A person must not, in the period commencing on 1 January 2014 and ending immediately before 1 April 2014, sell electricity to a transitional customer at premises situated on mainland Tasmania, unless the person is a designated retailer, within the meaning of the National Energy Retail Law (Tasmania), in respect of the premises.
        Penalty: In the case of –
                (a) a body corporate, a fine not exceeding 1 000 penalty units; or
                (b) an individual, a fine not exceeding 200 penalty units.
        (2) A person must not, in the period commencing on 1 April 2014 and ending on 30 June 2014, sell electricity to a transitional customer at premises situated on mainland Tasmania, unless the person is –
                (a) a regulated offer retailer (whether or not the person is the regulated offer retailer in respect of the premises); or
                (b) a designated retailer in respect of the premises under the National Energy Retail Law (Tasmania).
        Penalty: In the case of –
                (a) a body corporate, a fine not exceeding 1 000 penalty units; or
                (b) an individual, a fine not exceeding 200 penalty units.
        (3) Subsections (1) and (2) do not apply in relation to –
                (a) a person to whom section 23 of the National Energy Retail Law (Tasmania) Act 2012 applies; or
                (b) a sale of electricity to which section 23 of the National Energy Retail Law (Tasmania) Act 2012 applies or an offer to sell such electricity; or
                (c) a person who is an exempt seller, within the meaning of the National Energy Retail Law (Tasmania), if the sale of electricity to which that subsection would otherwise apply is permitted, or not prohibited, by the terms of the exemption of the person.
        (4) A retailer authorisation under the National Energy Retail Law (Tasmania) is of no effect under that Law to the extent that it authorises, or purports to authorise, an authorised retailer to sell electricity to a customer in contravention of this section.
        (5) The Minister, by order –
                (a) may specify conditions that must be satisfied before a transitional customer is permitted, during the period (in this section referred to as the transitional period) specified in the order to be the transitional period, to cease to be a customer of an authorised retailer and to become a customer of another authorised retailer; and
                (b) may specify that an authorised retailer must –
                        (i) at the request of another authorised retailer, provide, during the transitional period, the other authorised retailer with the information; and
                        (ii) establish and maintain, during the transitional period, systems of information management –
                necessary or convenient to enable the other authorised retailer to determine whether the conditions specified in the order in accordance with paragraph (a) have been satisfied in relation to a transitional customer.
        (6) Without limiting the generality of subsection (5) , an order under that subsection may contain any one or more of the following conditions:
                (a) a limit on the number of transitional customers who are permitted, in any period (a specified period), specified in the order, that occurs during the transitional period, to cease to be customers of an authorised retailer and to become customers of another authorised retailer;
                (b) conditions relating to the sequence in which, and the time at which, transitional customers are permitted to cease to be customers of an authorised retailer, and to become customers of another authorised retailer, after the end of a specified period that occurs during the transitional period.
        (7) The period specified in an order under subsection (5) to be the transitional period is to be a period that –
                (a) begins on 1 April 2014; and
                (b) ends on a date, specified in the order, that occurs before 1 January 2015.
        (8) Nothing in any law of Tasmania authorises or requires an authorised retailer to –
                (a) comply with a request by a transitional customer for electricity to be supplied to the premises of the customer; or
                (b) submit or comply with a request, under the Retail Market Procedures, for the transfer to the authorised retailer of a transitional customer –
        if the transfer of that customer to the authorised retailer would be inconsistent with a condition of an order made under subsection (5) .
        (9) In this section –
            regulated offer retailer in respect of the premises means the regulated offer retailer who is, by virtue of an order under section 38B , the regulated offer retailer in respect of the premises;
            Retail Market Procedures has the meaning it has in the National Electricity Rules;
            transitional customer, in relation to premises, means a person who –
                    (a) is, immediately before 1 January 2014, a non-contestable customer in relation to the premises; or
                    (b) if the person had been, immediately before 1 January 2014, a customer in relation to the premises, would have been a non-contestable customer, in relation to the premises, under the Electricity Supply Industry (Customer) Regulations 2012 , as in force immediately before 1 January 2014 –
            and includes a transitional prepayment meter customer;
            transitional prepayment meter customer, in relation to premises, means a person who is a customer to whom electricity is provided at the premises using a prepayment meter system.
38B. Regulated offer retailers
        (1) The Minister may, by order, declare an authorised retailer to be a regulated offer retailerin respect of premises.
        (2) The Minister may make more than one order under subsection (1) , but each such order is to relate to a different authorised retailer.
        (3) An authorised retailer may be declared in an order under subsection (1) to be a regulated offer retailer –
                (a) in respect of premises situated on mainland Tasmania or on a part of mainland Tasmania specified in the order; or
                (b) in respect of premises of a type of premises specified in the order; or
                (c) in respect of premises of a type of customer, specified in the order, for the premises; or
                (d) in respect of premises for a period specified in the order –
        or in respect of premises by virtue of a combination of the factors referred to in paragraphs (a) , (b) , (c) and (d) .
        (4) An authorised retailer may only be declared in an order under subsection (1) to be a regulated offer retailer if the retailer, any subsidiary of the retailer, or any related body corporate of the retailer, have between them more than 50,000 small customers at premises situated on mainland Tasmania.
        (5) For the avoidan