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Energy Legislation Amendment (Electricity Outage Emergency

Response and Other Matters) Bill 2023

Introduction Print

EXPLANATORY MEMORANDUM

General

The main purposes of the Bill are to amend the Electricity Industry Act 2000 to provide the Secretary to the Department of Energy, Environment and Climate Action with a power to direct distribution businesses to assist in emergency response and recovery to mitigate the impacts of prolonged electricity outages and improve community outcomes and to make technical changes to the Victorian Energy Efficiency Target Act 2007 and the Essential Services Commission Act 2001 to ensure strong compliance and enforcement of the Victorian Energy Upgrades program.

The Bill amends the Victorian Energy Efficiency Target Act 2007 to enhance its operation and effectiveness by allowing for the Minister to directly set fees for the Victorian Energy Upgrades program instead of having these fees prescribed under regulations.

The Bill also amends the Essential Services Commission Act 2001 to clarify the powers of the Essential Services Commission in relation to proceedings for civil penalty requirement breaches against the Victorian Energy Efficiency Target Act 2007, including civil penalty requirement breaches in relation to the Victorian Energy Upgrades program.

Clause Notes

Part 1—Preliminary

sets out the purposes of the Bill, which are—

 to amend the Electricity Industry Act 2000 to empower the Department Head of the Department of

601107 BILL LA INTRODUCTION 16/5/2023

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Energy, Environment and Climate Action to give directions to distribution companies to mitigate the effects on their customers of disruptions to the distribution or supply of electricity that are Class 2 emergencies under the Emergency Management Act 2013; and

 to amend the Victorian Energy Efficiency Target Act 2007 in relation to the payment of fees; and

 to amend the Essential Services Commission Act 2001 in relation to the amendments being made to that Act by the Victorian Energy Efficiency Target Amendment Act 2022 for the enforcement of the Victorian Energy Efficiency Target Act 2007 by the Essential Services Commission.

Clause 2 is the commencement provision. Subclause (1) provides for the Act, other than Part 3, to come into operation on the day after the day on which the Bill receives Royal Assent.

Subclause (2) provides for Part 3 of the Act to come into operation on 1 November 2023, which aligns with the default commencement date of the Victorian Energy Efficiency Target Amendment Act 2022.

Part 2—Amendment of Electricity Industry Act 2000

Clause 3 inserts new Part 6AB into the Electricity Industry Act 2000, which contains new sections 109D to 109M. New sections 109D to 109M provide that the Department Head of the Department of Energy, Environment and Climate Action may, by written direction, direct distribution companies to do things during, or following an electricity outage emergency.

New section 109D defines various words and expressions for the purposes of Part 6AB, including—

affected customer supply information, which is defined to mean information relating to the supply of electricity at the premises of an affected customer, including—

 the address of the premises at which an affected customer is supplied electricity; and

 information as to whether electricity is being supplied to the meter at the premises of an affected customer; and

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 information as to whether an affected customer is a life support customer;

affected customer, which is defined to mean a deemed customer of a distribution company that is or has been affected by the disruption to the distribution or supply of electricity to them by an electricity outage emergency;

Class 2 emergency, which has the same meaning as in the Emergency Management Act 2013;

deemed customer, of a distribution company, which is defined to mean a retail customer who is deemed to have entered into a contract with the distribution company under section 40A of the Electricity Industry Act 2000;

electricity outage emergency, which is defined to mean a Class 2 emergency that is due to the disruption to the distribution or supply of electricity in the State or part of the State.

New section 109E gives the Department Head the power to give a written direction to a distribution company to do a specified thing. The intention is to provide a broad power for the Department Head to direct distribution companies to do a range of activities to mitigate against the significant adverse impact of an electricity outage emergency on affected customers. The Department Head will be able to direct distribution companies to undertake a variety of activities appropriate and responsive to the circumstances of a particular electricity outage emergency, with the type of activities that may be specified changing over time as emergency response management evolves. The new power will also recognise that some activities and relief support may need to be provided for some time after the electricity outage emergency has ceased.

New section 109E(1) provides that the Department Head may give a written direction to a distribution company (an emergency direction) to do a specified thing if the Department Head—

 is satisfied that an electricity outage emergency is occurring or has occurred within 2 months before the date that the direction is proposed to be given; and

 is of the opinion that giving the direction is reasonably necessary to mitigate against the significant adverse effect of the electricity outage emergency on affected customers.

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New section 109E(2) provides a non-exhaustive list of the kind of things the Department Head may specify to be done by a distribution company in a direction, including—

 under subsection (2)(a)—the giving of specified information to the Department Head. Without limiting what information may be specified, it may include—

 the location where the distribution or supply of electricity to deemed customers of the distribution company has been disrupted;

 the estimated time within which the distribution or supply of electricity to the affected customers is likely to be restored;

 details as to the severity of the disruptions to the distribution or supply of electricity to affected customers;

 affected customer supply information (as defined in new section 109D);

 any information that is prescribed in regulations made under the Electricity Industry Act 2000;

 under subsection (2)(b)—assisting, in specified ways, with specified payment schemes administered by the State that may be accessed by affected customers in or following an electricity outage emergency;

 under subsection (2)(c)—providing specified relevant customer information for the administration of a payment scheme referred to in subsection (2)(b);

 under subsection (2)(d)—providing affected customers with specified information about emergency relief programs and schemes that are available to them, which may include payment schemes referred to in subsection (2)(b) or other relief programs or schemes administered by the Commonwealth or other entities;

 under subsection (2)(e)—providing specified logistical support and assistance to providers of specified relief programs being accessed or that may be accessed by affected customers. This could include assisting with

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the provision of generators at community hubs that may be accessed by affected customers;

 under subsection (2)(f)—requiring specified persons (being officers, employees or agents of the distribution company) to attend specified places to provide specified information to affected customers. The type of information includes, but is not limited to information about—

 the restoration of the distribution or supply of electricity to premises of affected customers by the distribution company; and

 the safety of affected customers. This could include, for instance, information about how an affected customer can remain safe by staying in their home or leaving their home, the location of community hubs, contact details to obtain assistance, location of an electricity disruption and fallen power lines, the expected time of return to service of power; and

 programs and schemes administered by the State or the Commonwealth or other entities that are available to be accessed by affected customers in or following an electricity outage emergency;

 under subsection (2)(g)—any other thing that that is prescribed in regulations made under the Electricity Industry Act 2000.

The list of matters set out in new section 109E(2) is not intended to limit the broad scope of the power in new section 109E(1) or the types of things that the Department Head may specify in a direction.

New section 109E(3) broadly defines relevant customer information that may be requested from a distribution company for purposes of new section 109E(2)(c). This includes names and addresses, occupant numbers, whether there is electricity at a premises and other kinds of information prescribed by regulations made under the Electricity Industry Act 2000.

New section 109F provides for things the Department Head must consider and do before giving an emergency direction, and for consultation by the Department Head.

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New section 109F(1) provides that before giving an emergency direction, the Department Head must consider whether the distribution company has the capacity and resources to do the things proposed to be specified in the emergency direction, and that the Department Head must consider alternatives (if any) to the things proposed to be specified in the direction and the feasibility of those alternatives.

New section 109F(2) provides that the Department Head, before giving an emergency direction, may consult with any person that the Department Head considers appropriate. Without limiting the persons that the Department Head may consult with, new section 109F(2) provides that the persons the Department Head may consult include the Australian Energy Market Operator, Energy Safe Victoria, and retailers, generation companies, transmission companies and distribution companies.

New section 109G provides for when an emergency direction has effect. New section 109G(1) provides that an emergency direction takes effect on the day specified in the emergency direction, or, if a date is not specified, on the day that it is given to the distribution company. New section 109G(2) provides that an emergency direction ceases effect after 14 days, unless revoked or extended.

New section 109H provides the Department Head may extend the effect of an emergency direction. New section 109H(1) provides that, before an emergency direction ceases effect, the Department Head, may, by written notice given to the distribution company that is subject to the direction, extend the direction for a period not exceeding 14 days.

New section 109H(2) provides that an emergency direction may be extended more than once. However, new section 109H(3) provides that an emergency direction cannot be extended so that the total period of days that the direction is in effect exceeds 60 days.

New section 109I(1) provides that a distribution company given an emergency direction under new Part 6AB must comply with the direction. New section 109I(2) provides that new section 109I(1) is a civil penalty requirement for the purposes of the Essential Services Commission Act 2001.

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New section 109J provides that if there is an inconsistency between a direction given under section 96 of the Electricity Industry Act 2000 and an emergency direction, the direction given under section 96 will prevail to the extent of the inconsistency.

New section 109K provides for the maintenance of a register of emergency directions. New section 109K(1) provides that the Department Head must maintain a register of emergency directions. New section 109K(2) provides that the register must include certain information in respect of every direction. New section 109K(3) provides that the Department Head must cause the register maintained under subsection (1) to be published on the Department's internet site.

New section 109L provides for the disclosure of information related to affected customers to public sector entities. New section 109L(1) provides that the Department Head may disclose to a public sector entity information related to affected customers given to the Department Head under an emergency direction if the Department Head is of the opinion that the disclosure is reasonably necessary to enable the public sector entity to perform functions and exercise powers to mitigate against the significant adverse impact of an electricity outage emergency on those affected customers.

New section 109L(2) defines public sector entity for the purposes of the section.

New section 109M provides that the Department Head, by instrument, may delegate a power of the Department Head under new Part 6AB (other than the power of delegation under the section) to a person employed in the Department.

Clause 4 makes consequential amendments to the Electricity Industry Act 2000 relating to the use of the term "Energy Safe Victoria" in proposed new section 109F. Subclause (1) inserts a new definition of Energy Safe Victoria in section 3 of the Electricity Industry Act 2000 and subclause (2) repeals section 105(4) of the Electricity Industry Act 2000 which sets out a definition of Energy Safe Victoria for the purposes of section 105. The effect of these 2 amendments will be to have the definition of Energy Safe Victoria in section 3 defining that term as it is used in proposed new section 109F and current section 105.

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Clause 5 is a statute law revision amendment. It provides that in section 119(1A)(b) of the Electricity Industry Act 2000, circumstance is substituted with "circumstances". This amendment corrects a grammatical error by providing for the plural form of the word.

Part 3—Amendment of Victorian Energy Efficiency Target Act 2007

The amendments made in this Part of the Bill rectify an error introduced by the Victorian Energy Efficiency Target Amendment Act 2022, which allowed certain fees, such as the fees for applications of renewal of accreditation and to vary conditions of accreditation, to be prescribed by regulation rather than fixed by the Minister under section 73 of the Victorian Energy Efficiency Target Act 2007. These amendments ensure there is a consistent approach to setting fees throughout the Victorian Energy Efficiency Target Act 2007.

Clause 6 amends section 9A(2)(b) of the Victorian Energy Efficiency Target Act 2007 to replace the reference to prescribed fees with a reference to fees fixed under section 73 of the Victorian Energy Efficiency Target Act 2007.

Clause 7 amends section 13D(3) of the Victorian Energy Efficiency Target Act 2007 to replace the reference to prescribed fees with a reference to fees fixed under section 73 of the Victorian Energy Efficiency Target Act 2007.

Clause 8 amends section 26A(2)(d) of the Victorian Energy Efficiency Target Act 2007 to replace the reference to prescribed fees with a reference to fees fixed under section 73 of the Victorian Energy Efficiency Target Act 2007.

Clause 9 amends section 26B(1)(d) of the Victorian Energy Efficiency Target Act 2007 to replace the reference to prescribed fees with a reference to fees fixed under section 73 of the Victorian Energy Efficiency Target Act 2007.

Clause 10 amends section 76C(2)(b) of the Victorian Energy Efficiency Target Act 2007 to replace the reference to prescribed fees with a reference to fees fixed under section 73 of the Victorian Energy Efficiency Target Act 2007.

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Part 4—Amendment of Essential Services Commission Act 2001 The Victorian Energy Efficiency Target Amendment Act 2022 was passed in 2022 and amended the Victorian Energy Efficiency Target Act 2007 to—

 provide that the Victorian Energy Efficiency Target Act 2007 was relevant legislation for the purposes of the Essential Services Commission Act 2001, and that the Victorian Energy Efficiency Target scheme was a regulated industry; and

 apply the enforcement and civil penalty framework contained in the Essential Services Commission Act 2001 to specified provisions of the Victorian Energy Efficiency Target Act 2007.

The purpose of the amendments in this Part of this Bill are to clarify beyond doubt that the Essential Services Commission (ESC) can exercise its powers and functions under Part 7 of the Essential Services Commission Act 2001 in relation to powers and functions conferred on the ESC by the Victorian Energy Efficiency Target Act 2007.

This Part also clarifies the application of sections 60A and 60B of the Essential Services Commission Act 2001 to criminal proceedings for offences against the Victorian Energy Efficiency Target Act 2007. However, as section 70 of the Victorian Energy Efficiency Target Act 2007 has existing similar provisions to sections 60A and 60B in relation to offences (rather than offences and civil penalty requirements), the Bill will clarify that the application of sections 60A and 60B will only extend to civil penalty requirements and not offences against the Victorian Energy Efficiency Target Act 2007. It is intended that offences against the Victorian Energy Efficiency Target Act 2007 will continue to rely on section 70 of that Act, while civil penalty requirements will rely on sections 60A and 60B of the Essential Services Commission Act 2001.

Clause 11 amends section 10D of the Essential Services Commission Act 2001 to clarify that Part 7 and sections 60A and 60B of the Essential Services Commission Act 2001 will apply to the functions of the ESC referred to in section 10(k), that is, those functions conferred on the Commission by the Victorian Energy Efficiency Target Act 2007.

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Clause 12 amends section 60A of the Essential Services Commission Act 2001 to exclude offences against the Victorian Energy Efficiency Target Act 2007. It is intended that section 70 of the Victorian Energy Efficiency Target Act 2007 will be used in relation to offences against the Victorian Energy Efficiency Target Act 2007.

Clause 13 amends section 60B the Essential Services Commission Act 2001 to exclude offences, and proceedings for offences, against the Victorian Energy Efficiency Target Act 2007. It is intended that section 70 of the Victorian Energy Efficiency Target Act 2007 will be used in relation to offences, and proceedings for offences, against the Victorian Energy Efficiency Target Act 2007.

Part 5—Repeal of this Act

Clause 14 provides that the Act will be repealed on 1 November 2024. The note to this provision clarifies that in accordance with the operation of section 15(1) of the Interpretation of Legislation Act 1984, the repeal of the Act does not affect the continuing operation of the amendments made by it.