Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to amend the law relating to the Australian energy market, and for related purposes
Administered by: Resources, Energy and Tourism
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 12 Feb 2009
Introduced HR 12 Feb 2009
Table of contents.

 

2009  

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

AUSTRALIAN ENERGY MARKET AMENDMENT (AEMO AND OTHER MEASURES) BILL 2009

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

(Circulated by authority of the Minister for Resources and Energy the Hon Martin Ferguson MP)

 


AUSTRALIAN ENERGY MARKET AMENDMENT (AEMO AND OTHER MEASURES) BILL 2009

 

 

GENERAL OUTLINE         

1.            The purpose of this Bill is to make minor consequential amendments to existing Commonwealth legislation as a result of co-operative energy reform legislation being passed in other jurisdictions.

2.            The Bill amends the Renewable Energy (Electricity) Act 2000 and the Trade Practices Act 1974 to replace references to the National Energy Market Management Company Limited ACN 072 101 327 (NEMMCO) with the Australian Energy Market Operator Limited ACN 072 101 327 (AEMO).  It is proposed that AEMO will commence operations on 1 July 2009.  The Bill also amends the Administrative Decisions (Judicial Review) Act 1977, Australian Energy Market Act 2004, and the Trade Practices Act 1974 to reflect a change in name of Western Australian gas legislation. 

Establishment of AEMO

3.                    In order to strengthen the national character of energy market governance, the Council of Australian Governments has agreed to establish a national energy market operator, AEMO.

4.                  Although AEMO will be a company limited by guarantee, it is proposed that 'statutory' functions will be conferred on it by way of amendments to the National Electricity Law (a schedule to the National Electricity (South Australia) Act 1998) (NEL) and the National Gas Law (a schedule to the National Gas (South Australia) Act 2008) (NGL).

5.                  The NEL and the NGL form part of a complementary scheme of regulation in which they are 'templates' enacted by South Australian law and adopted and applied (as amended from time to time) by South Australia and other participating jurisdictions. 

6.                  Upon its establishment AEMO will assume the responsibilities and functions of existing electricity and gas market operators, including the National Electricity Market Management Company Limited ACN 072 101 327 (NEMMCO).  Accordingly, references to NEMMCO in Commonwealth legislation, being the Renewable Energy (Electricity) Act 2000 and the Trade Practices Act 1974, need to be replaced with references to AEMO.

Amending references to Western Australian gas legislation

7.                  Western Australia is moving to become a participating jurisdiction in the national framework for regulating access to gas pipeline services. In 2008 a Bill to apply the 'National Gas Access Law' (namely, key elements of the NGL's gas access regime) in Western Australia, was introduced into the Western Australian Parliament.  However, the Parliament was prorogued before the Bill was passed.  It is now anticipated the legislation applying the National Gas Access Law will commence in the first half of 2009 (the WA Application Act).  As a consequence of the delay, Western Australia has elected to change the title of its Application Act.

8.                  The Commonwealth Act applying the NGL and NEL to the Commonwealth's offshore area is the Australian Energy Market Act 2004 (the AEM Act).  It was amended in 2007 (by the Australian Energy Market Amendment (Gas Legislation) Act 2007) to clarify that services provided by pipelines that cross both the Commonwealth's jurisdiction and that of Western Australia will have one regulatory regime apply to them.  The relevant provisions in the AEM Act necessarily refer to the WA Application Act. 

9.                  This Bill therefore corrects references to the WA Application Act, from the National Gas Access (Western Australia) Act 2008 to the National Gas Access (WA) Act 2009.  There are also consequential amendments to references to the WA Application Act in the Administrative Decisions (Judicial Review) Act 1977 and the Trade Practices Act 1974.

Financial impact statement

10.              This Bill will have no financial impact.


NOTES ON CLAUSES

 

Preliminary

Clause 1:  Short title

1.                  Clause 1 is a formal provision specifying the short title of the Bill. The Act will be called the Australian Energy Market Amendment (AEMO and Other Measures) Act 2009.  

Clause 2:  Commencement

2.                  This clause provides that sections 1 to 3 of this Act will commence on the day this Act receives Royal Assent.  It also provides that the amendments to references to the WA Application Act contained in Schedule 1 will commence on the day after this Act received Royal Assent. 

3.                  The clause further provides that the amendments which replace references to 'NEMMCO' with 'AEMO' contained in Schedule 1 will commence on a date to be fixed by Proclamation.

Clause 3:  Schedule(s)

4.                  This clause provides that each Act specified in Schedule 1 of this Bill is amended as set out in the Schedule (subject to the commencement provisions above).

Schedule 1

 

Administrative Decisions (Judicial Review) Act 1977

Item 1

5.                  This item corrects the reference in the Administrative Decisions (Judicial Review) Act 1977 to the WA Application Act.  The amended clause will refer to the year of enactment of the WA Application Act as 2009 rather than 2008, and will refer to 'WA' in the title of the Act rather than 'Western Australia': National Gas Access (WA) Act 2009.

 

Australian Energy Market Act 2004

 

Items 2, 3, 4, 5, 6

6.                  These items correct the references in the Australian Energy Market Act 2004 to the WA Application Act.  The amended clauses will refer to the year of enactment of the WA Application Act as 2009 rather than 2008, and will refer to 'WA' in the title of the Act rather than 'Western Australia': National Gas Access (WA) Act 2009.

Renewable Energy (Electricity) Act 2000

 

Item 7

7.                  This item inserts a new definition into the definitions section of the Renewable Energy (Electricity) Act 2000.  The definition references the term 'AEMO' as defined in the NEL.

 

Item 8

8.                  This item deletes the definition of NEMMCO from the definitions section of the Renewable Energy (Electricity) Act 2000.

Items 9, 10, 11

9.                  These items replace references to 'NEMMCO' in the Renewable Energy (Electricity) Act 2000 with references to 'AEMO'.


Trade Practices Act 1974

Item 12

10.              This item corrects the reference in the Trade Practices Act 1974 to the WA Application Act.  The amended clause will refer to the year of enactment of the WA Application Act as 2009 rather than 2008, and will refer to 'WA' in the title of the Act rather than 'Western Australia': National Gas Access (WA) Act 2009.

Item 13

11.              This item replaces the reference to the 'National Electricity Market Management Company' in the Trade Practices Act 1974 with a reference to the 'Australian Energy Market Operator'. 

Item 14

12.              This item amends the definition of 'National Gas Law' in s 44B of the Trade Practices Act 1974.  It deletes paragraph (c) of that definition, which refers to the "National Gas Access (Western Australia) Law (within the meaning of the National Gas Access (Western Australia) Act 2008 of Western Australia) as in force from time to time" and inserts a new paragraph (c) which refers to "the Western Australian Gas Legislation".  This is because "Western Australian Gas Legislation" is already defined in s 4(1) of the Trade Practices Act 1974.