{"id":"BILL-WA-AAD909496801557748258DEE00244B96","name":"Electricity Industry Amendment (Capital Charges) Bill 2026","slug":"electricity-industry-amendment-capital-charges-bill-2026","collection":"bill","jurisdiction":"wa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":"2026-05-06","administeringDepartment":null,"currentVersion":{"id":446170,"registerId":"BILL-WA-AAD909496801557748258DEE00244B96:current","compilationNumber":null,"startDate":"2026-05-06","status":"in_force","reasons":null,"registeredAt":"2026-05-08T16:47:42.446Z"},"sections":[{"sectionNumber":"retrieval-0001","sectionType":"document_chunk","heading":"Document excerpt 1","content":"# Electricity Industry Amendment (Capital Charges) Bill 2026\n\n65—1 page i\nWestern Australia\nElectricity Industry Amendment (Capital\nCharges) Bill 2026\nContents\nPart 1 — Preliminary\n1. Short title 2\n2. Commencement 2\nPart 2 — Amendments commencing\non day after Royal Assent\n3. Electricity Industry Act 2004 amended 3\n4. Part 9C inserted 3\nPart 9C — Capital Charges Scheme\n129U. Objective of Part 3\n129V. Terms used 3\n129W. Capital charges for access to services 4\n129X. Adjustment mechanisms 5\n129Y. Modification of regulations to implement or\nfacilitate additional circumstances 6\n129Z. Code may also deal with certain matters 6\n129ZA. Relationship between regulations and\nCode 7\n129ZB. Recommendation of Minister 7\n129ZC. Coordinator’s review 8\n129ZD. Disclosure of information to Coordinator 8\n5. Part 12 inserted 9\nPart 12 — Transitional provisions for Electricity\nIndustry Amendment (Capital Charges)\nAct 2026\n147. Terms used 9\n148. Transitional regulations 9\n149. Minister may deal with transitional matters 10\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nContents\npage ii\nPart 3 — Amendments commencing\nwith Electricity Industry\nAmendment (Distributed Energy\nResources) Act 2024 Part 3\n6. Electricity Industry Act 2004 amended 12\n7. Section 129W amended 12\n8. Section 129Y amended 12\n9. Section 129Z amended 12\n10. Section 129ZA deleted 13\n11. Section 149 amended 13\n\npage 1\nWestern Australia\nLEGISLATIVE ASSEMBLY\nElectricity Industry Amendment (Capital\nCharges) Bill 2026\nA Bill for\nAn Act to amend the Electricity Industry Act 2004.\nThe Parliament of Western Australia enacts as follows:\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 1 Preliminary\ns. 1\npage 2\nPart 1 — Preliminary1\n1. Short title2\nThis is the Electricity Industry Amendment (Capital Charges)3\nAct 2026.4\n2. Commencement5\nThis Act comes into operation as follows —6\n(a) Part 1 — on the day on which this Act receives the7\nRoyal Assent (assent day);8\n(b) Part 3 —9\n(i) if the Electricity Industry Amendment10\n(Distributed Energy Resources) Act 202411\nsection 53 comes into operation on or before12\nassent day — on the day after assent day; or13\n(ii) otherwise — immediately after the Electricity14\nIndustry Amendment (Distributed Energy15\nResources) Act 2024 section 53 comes into16\noperation;17\n(c) the rest of the Act — on the day after assent day.18\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nAmendments commencing on day after Royal Assent Part 2\ns. 3\npage 3\nPart 2 — Amendments commencing on day after Royal1\nAssent2\n3. Electricity Industry Act 2004 amended3\nThis Part amends the Electricity Industry Act 2004.4\n4. Part 9C inserted5\nAfter section 129T insert:6\n7\nPart 9C — Capital Charges Scheme8\n129U. Objective of Part9\n(1) The objective of this Part is to establish a scheme to10\nsupport connections to certain transmission systems11\nthat is consistent with the State electricity objective.12\n(2) To achieve this objective, this Part aims to —13\n(a) increase certainty for charges for access to14\nservices provided by means of the systems by15\nproviding for the imposition of capital charges;16\nand17\n(b) ensure that, over a certain period, the network18\nservice providers who operate the systems do19\nnot earn more revenue than would have been20\npermitted under Part 8 if this Part had not come21\ninto operation.22\n129V. Terms used23\n(1) In this Part —24\nadjustment mechanism has the meaning given in25\nsection 129X(1);26\ncapital charge has the meaning given in27\nsection 129W(2);28\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 2 Amendments commencing on day after Royal Assent\ns. 4\npage 4\nrelevant network means —1\n(a) any transmission system that is part of the2\nSouth West interconnected system that is3\nregulated under Part 8; and4\n(b) any other transmission system prescribed by the5\nregulations.6\n(2) If a term used in this Part is given a meaning in7\nsection 103, it has the same meaning in this Part.8\n(3) The regulations may prescribe a transmission system as9\na relevant network only if the system is regulated under10\nPart 8.11\n129W. Capital charges for access to services12\n(1) In this section —13\nrelated entity, of a person —14\n(a) means a related body corporate as defined in15\nthe Corporations Act 2001 (Cth) section 9; and16\n(b) includes any other person prescribed by the17\nregulations.18\n(2) A person is required to pay a capital charge to a19\nnetwork service provider if —20\n(a) the person enters into, or modifies, an access21\nagreement in the circumstances, if any,22\nprescribed by the regulations and, under the23\naccess agreement, the person has access to24\nservices provided by the network service25\nprovider by means of a relevant network; or26\n(b) an additional circumstance, if any, specified in27\nthe Code exists in which the person has access28\nto services provided by the network service29\nprovider by means of a relevant network.30\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nAmendments commencing on day after Royal Assent Part 2\ns. 4\npage 5\n(3) The regulations may make provision for or in relation1\nto the following —2\n(a) the amount of the capital charge, including —3\n(i) a method for calculating the amount;4\nand5\n(ii) indexation of the amount;6\n(b) the circumstances in which the capital charge is7\npayable, including eligibility criteria for8\ndetermining which persons or classes of9\npersons are required to pay the capital charge;10\n(c) different capital charge amounts payable in11\ndifferent circumstances, including by reference12\nto the following —13\n(i) a relevant network;14\n(ii) a network service provider;15\n(iii) the rate at which the person may16\ntransfer electricity into or out of a17\nrelevant network.18\n(4) Without limiting subsection (2)(b), an additional19\ncircumstance may include a person, or a related entity20\nof the person —21\n(a) making an application to enter into or modify22\nan access agreement that provides for access to23\nthe services; or24\n(b) having access to the services under, or in25\naccordance with, any other contract or26\nagreement or a determination made by way of27\narbitration.28\n129X. Adjustment mechanisms29\n(1) If a regulation made under this Part prescribes30\ncircumstances in which a person is required to pay a31\ncapital charge, the regulation must also provide for a32\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 2 Amendments commencing on day after Royal Assent\ns. 4\npage 6\nrequirement (an adjustment mechanism) designed to1\nensure that, over a certain period, a network service2\nprovider does not earn more revenue than would have3\nbeen permitted under Part 8 if this Part had not come4\ninto operation.5\n(2) Without limiting subsection (1), the regulations may6\nmake provision for or in relation to the following —7\n(a) the way in which an adjustment mechanism8\nmust be implemented or facilitated;9\n(b) the period during which an adjustment10\nmechanism applies, including a method for11\ndetermining the period;12\n(c) authorising the Authority to determine or13\nimplement an adjustment mechanism.14\n129Y. Modification of regulations to implement or15\nfacilitate additional circumstances16\n(1) If the Code specifies an additional circumstance under17\nsection 129W(2)(b), the Code may modify a regulation18\nmade under this Part to the extent necessary for the19\npurposes of adapting the application of the regulation20\nto or in relation to the circumstance.21\n(2) This section has effect despite section 129ZA.22\n129Z. Code may also deal with certain matters23\n(1) In this section —24\nrelevant instrument means —25\n(a) an instrument published or approved under the26\nCode; and27\n(b) any type of contract or agreement specified in28\nthe Code under which a person has access to29\nservices provided by means of a relevant30\nnetwork.31\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nAmendments commencing on day after Royal Assent Part 2\ns. 4\npage 7\n(2) Without limiting section 104B or 105, the Code may1\nmake provision for or in relation to the following —2\n(a) the way in which a capital charge is payable,3\nincluding payment by instalments, the charging4\nof interest on capital charge amounts and the5\nuse of guarantees as security;6\n(b) the maintenance and keeping of records of7\nrevenue earned by a network service provider8\nfrom a capital charge, including the method of9\nmaintaining and keeping the records;10\n(c) the way in which an adjustment mechanism11\nmust be implemented or facilitated;12\n(d) a requirement for a relevant instrument to13\nfacilitate or otherwise provide for a requirement14\nunder this Part;15\n(e) any other matter prescribed by the regulations.16\n129ZA. Relationship between regulations and Code17\nIf there is a conflict or inconsistency between18\nregulations made under this Part and the Code, the19\nregulations prevail to the extent of the conflict or20\ninconsistency.21\n129ZB. Recommendation of Minister22\n(1) Regulations may only be made under this Part on the23\nrecommendation of the Minister.24\n(2) The Minister may make the recommendation only if25\nthe Minister is satisfied that the regulations are26\nconsistent with —27\n(a) the objective of this Part; and28\n(b) the State electricity objective.29\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 2 Amendments commencing on day after Royal Assent\ns. 4\npage 8\n129ZC. Coordinator’s review1\n(1) The Coordinator must review and report on whether2\nthe scheme established by this Part is consistent with3\nthe objective of this Part and the State electricity4\nobjective —5\n(a) as soon as practicable after the 5th anniversary6\nof the day on which this Part comes into7\noperation; and8\n(b) after that, at intervals of not more than 5 years.9\n(2) The Coordinator must, as soon as practicable after10\npreparing the report, provide the report to the Minister.11\n129ZD. Disclosure of information to Coordinator12\n(1) The Authority must, on the request of the Coordinator,13\ndisclose to the Coordinator any information necessary14\nto enable the Coordinator to perform the Coordinator’s15\nfunctions under section 129ZC.16\n(2) If information is disclosed under this section —17\n(a) no civil or criminal liability is incurred for the18\ndisclosure; and19\n(b) the disclosure is not —20\n(i) a breach of any duty of confidentiality21\nor secrecy imposed by law; or22\n(ii) a breach of professional ethics or23\nstandards or any principles of conduct24\napplicable to a person’s employment; or25\n(iii) unprofessional conduct.26\n27\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nAmendments commencing on day after Royal Assent Part 2\ns. 5\npage 9\n5. Part 12 inserted1\nAfter section 146 insert:2\n3\nPart 12 — Transitional provisions for Electricity4\nIndustry Amendment (Capital Charges) Act 20265\n147. Terms used6\nIn this Part —7\namendment Act means the Electricity Industry8\nAmendment (Capital Charges) Act 2026;9\ncommencement day means the day on which the10\namendment Act section 4 comes into operation;11\npublication day, in relation to transitional regulations,12\nmeans the day on which the transitional regulations are13\npublished in accordance with the Interpretation14\nAct 1984 section 41(1)(a);15\ntransitional event means the following —16\n(a) the enactment or coming into operation of the17\namendment Act;18\n(b) the coming into operation of regulations made19\nunder Part 9C, as inserted by the amendment20\nAct;21\ntransitional matter means a matter of a transitional,22\nsavings or application nature;23\ntransitional regulations means regulations made under24\nsection 148.25\n148. Transitional regulations26\n(1) The regulations may make provision for and in relation27\nto transitional matters arising in connection with a28\ntransitional event.29\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 2 Amendments commencing on day after Royal Assent\ns. 5\npage 10\n(2) Transitional regulations may provide that a specified1\nstate of affairs is taken to have existed, or not to have2\nexisted, earlier than publication day, but not earlier3\nthan commencement day.4\n(3) If transitional regulations contain a provision referred5\nto in subsection (2), the provision does not operate so6\nas to —7\n(a) affect in a manner prejudicial to any person8\n(other than the State or a public authority), the9\nrights of that person existing before publication10\nday; or11\n(b) impose liabilities on any person (other than the12\nState or a public authority) in respect of13\nanything done or omitted to be done before14\npublication day.15\n149. Minister may deal with transitional matters16\n(1) In this section —17\nexisting instrument means a relevant instrument18\npublished, approved or entered into before19\ncommencement day;20\nrelevant instrument has the meaning given in21\nsection 129Z(1).22\n(2) Transitional regulations may authorise the Minister to,23\nby order published in accordance with the24\nInterpretation Act 1984 section 41(1)(a) —25\n(a) determine how any matter in progress26\nimmediately before a day (not earlier than27\ncommencement day) specified in the order is to28\nbe treated on and after that day; and29\n(b) amend an existing instrument to facilitate or30\nprovide for, or as a consequence of, a31\ntransitional matter.32\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nAmendments commencing on day after Royal Assent Part 2\ns. 5\npage 11\n(3) The Code may provide for how anything done or in1\nprogress or required to be done under an existing2\ninstrument in relation to a transitional matter is to be3\ntreated from a day, not earlier than commencement4\nday, specified in the Code.5\n6\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 3 Amendments commencing with Electricity Industry\nAmendment (Distributed Energy Resources) Act 2024 Part 3\ns. 6\npage 12\nPart 3 — Amendments commencing with Electricity1\nIndustry Amendment (Distributed Energy Resources)2\nAct 2024 Part 33\n6. Electricity Industry Act 2004 amended4\nThis Part amends the Electricity Industry Act 2004.5\n7. Section 129W amended6\nIn section 129W(2)(b) delete “Code” and insert:7\n8\nelectricity system and market rules9\n10\n8. Section 129Y amended11\n(1) In section 129Y(1):12\n(a) delete “Code specifies” and insert:13\n14\nelectricity system and market rules specify15\n16\n(b) delete “Code” (2nd occurrence) and insert:17\n18\nrules19\n20\n(2) Delete section 129Y(2).21\n9. Section 129Z amended22\n(1) In section 129Z(1) in the definition of relevant instrument:23\n(a) in paragraph (a) delete “Code; and” and insert:24\n25\nelectricity system and market rules; and26\n27\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nAmendments commencing with Electricity Industry\nAmendment (Distributed Energy Resources) Act 2024 Part 3\nPart 3\ns. 10\npage 13\n(b) in paragraph (b) delete “Code” and insert:1\n2\nrules3\n4\n(2) In section 129Z(2) delete “Code” and insert:5\n6\nelectricity system and market rules7\n8\nNote: The heading to amended section 129Z is to read:9\nElectricity system and market rules may also deal with certain10\nmatters11\n10. Section 129ZA deleted12\nDelete section 129ZA.13\n11. Section 149 amended14\n(1) In section 149(1) delete the definition of relevant instrument15\nand insert:16\n17\nrelevant instrument —18\n(a) has the meaning given in section 129Z(1); and19\n(b) includes an instrument that was a relevant20\ninstrument under section 129Z(1) as in force21\nimmediately before the day on which the22\nElectricity Industry Amendment (Distributed23\nEnergy Resources) Act 2024 section 53 came24\ninto operation.25\n26\n\nElectricity Industry Amendment (Capital Charges) Bill 2026\nPart 3 Amendments commencing with Electricity Industry\nAmendment (Distributed Energy Resources) Act 2024 Part 3\ns. 11\npage 14\n(2) In section 149(3):1\n(a) delete “Code” (1st occurrence) and insert:2\n3\nelectricity system and market rules4\n5\n(b) delete “Code.” and insert:6\n7\nrules.8\n9","sortOrder":0}],"analysis":{"summary":{"status_summary":"The Electricity Industry Amendment (Capital Charges) Bill 2026 is at the second reading stage in the Western Australian Legislative Assembly.","complexity_score":5,"likely_questions":["When will capital charges start being applied, and will there be transitional relief for existing access agreements?","How will the capital charge amount be calculated, and will it vary by network location or connection size?","What exactly is the adjustment mechanism, and how will it ensure network service providers do not exceed the Part 8 revenue cap?","Who is eligible to be required to pay - only new connections, or also modifications to existing agreements, and what about related entities?","Will the capital charge increase the total cost of connecting to the grid, or will it replace other charges to remain revenue neutral overall?"],"complexity_factors":["Multiple commencement dates split across Part 2 and Part 3, contingent on another Act's provisions","Extensive delegation to regulations and to the Code (later electricity system and market rules) for key details such as charge amounts, eligibility, and adjustment mechanisms","Interaction with existing Part 8 revenue regulation and the State electricity objective requiring reconciliation of new charges with old caps","Transitional provisions allow retroactive treatment of matters and ministerial amendment of existing instruments, adding uncertainty","Part 3 amendments fundamentally change the relationship between regulations and the Code, affecting the hierarchy of rules"],"plain_english_summary":"The Bill inserts a Capital Charges Scheme into WA’s Electricity Industry Act allowing network service providers (e.g. Western Power) to levy upfront or ongoing capital charges on people who connect to or modify access to specified transmission networks. It aims to fund connections while capping total network revenue to what would have been allowed under Part 8, but leaves charge amounts, eligibility and adjustment mechanics to future regulations and market rules, shifting practical impact onto connection applicants, providers and regulators and creating ongoing regulatory discretion and periodic review."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Bill stays within the stated original purpose: creating a statutory framework to impose capital charges on parties accessing specified transmission systems and to ensure revenue neutrality relative to the existing Part 8 regime. The amendments in Part 3 are chiefly technical — replacing references to the \"Code\" with \"electricity system and market rules\" and removing the provision that regulations prevail over the Code — and do not materially expand the substantive policy scope beyond establishing the capital charges scheme and associated transitional and governance mechanisms. Any broadening (for example, prescribing additional transmission systems as \"relevant networks\") is left to subordinate regulations and is consistent with the Bill's core objective rather than representing an intrinsic expansion of purpose."},"complexity_factors":["Introduces a new Part 9C with 14 sections (129U–129ZD) setting up a new charging scheme","Multiple delegated powers: regulations to set amounts, eligibility, indexation, differential charging and implementation details (129W(3), 129X(2), 129Z(2))","Mandatory adjustment mechanism with cross-reference to existing Part 8 revenue framework (129X), requiring complex accounting/timing rules","Interplay between primary legislation, delegated regulations and the electricity system and market rules (earlier references to \"Code\" replaced) creating a multi‑layered legal hierarchy","Ministerial gatekeeping: regulations may only be made on Minister's recommendation with required consistency checks (129ZB)","Coordinator oversight and Authority disclosure duties with liability protections (129ZC–129ZD)","Transitional powers able to treat states of affairs as having existed or not existed and to amend existing instruments (Part 12, sections 148–149)","References to external frameworks and statutes (Part 8 revenue rules, Corporations Act definition of related body corporate), increasing cross‑statute complexity","Deletion of the regulation‑prevails clause (129ZA) in later amendments, changing conflict resolution approach between instruments","Conditional commencements and staged commencement dependence on other legislation (section 2), which can produce different operational versions of the scheme"],"plain_english_summary":"**What this Bill does (mechanically)\n\n- Inserts a new Part 9C into the Electricity Industry Act 2004 that creates a \"Capital Charges Scheme\" for certain transmission networks (sections 129U–129ZD).  The scheme:  \n  - allows regulations to require a person who obtains access to services on a \"relevant network\" to pay a \"capital charge\" to the network service provider (section 129W);  \n  - requires any regulation that prescribes circumstances for a capital charge to include an \"adjustment mechanism\" so the network service provider does not earn more revenue, over a specified period, than it would have under the existing Part 8 revenue framework if the new Part had not existed (section 129X); and  \n  - gives the Minister a gatekeeping role for regulations (regulations only by Minister's recommendation and they must be consistent with the Part's objective and the State electricity objective) (section 129ZB).  \n- Gives the Coordinator (an independent officeholder under the Act) a statutory review role: review the scheme for consistency with its objective and the State electricity objective within 5 years and then at least every 5 years (section 129ZC).  \n- Requires the ERA/Authority to disclose information to the Coordinator on request and protects disclosing parties from civil/criminal liability for so doing (section 129ZD).  \n- Provides extensive regulation-making power over the amount, timing, payment mechanics, eligibility and indexation of capital charges; and allows the Code (or, as later amended, the electricity system and market rules) to set detailed operational matters such as instalment arrangements, record‑keeping and implementing adjustment mechanisms (sections 129W, 129X and 129Z).  \n- Adds transitional powers allowing transitional regulations and Ministerial orders to manage the transition of existing instruments and matters in progress when the new scheme starts (Part 12, sections 147–149).  \n- Part 3 of the Bill (which commences with provisions of the Distributed Energy Resources amendments) replaces references to the \"Code\" with \"electricity system and market rules\" and deletes a provision that previously said regulations prevail over the Code (amendments to sections 129W, 129Y, 129Z, 129ZA and 149).\n\nWho is affected\n\n- Network service providers operating the defined \"relevant networks\" (explicitly includes transmission systems forming part of the South West Interconnected System regulated under Part 8 and any other transmission systems prescribed in regulations) will be the recipients of capital charges where imposed (section 129V).  \n- Parties who enter into, or modify, access agreements that give access to services over a relevant network — typically connecting parties such as new large generators, storage projects or major customers, and possibly related entities as defined or prescribed — may be required to pay capital charges (section 129W).  \n- The ERA/Authority and the Coordinator are given operational and oversight roles. The Minister controls whether regulations proceed by way of a required recommendation (section 129ZB).  \n- Existing access arrangements, contracts, and operational rules may be adjusted under transitional regulations or Ministerial orders to accommodate the new charging regime (Part 12, section 149).\n\nWhy it matters (stated purpose and practical effects)\n\n- Stated purpose (section 129U): establish a scheme to support connections to certain transmission systems, increase certainty about charges for access to network services by enabling capital charges, and ensure that network service providers do not over‑recover revenue relative to what would have been allowed under the existing Part 8 regime.\n\n- Practical effects and mechanics:  \n  - Creates a new, potentially up-front or periodic, payment obligation (the capital charge) that connectors or access‑holders may face. The detail (who pays, how much, when, indexation, eligibility and distinctions by network/NSP/transfer rates) is to be set by regulations and the electricity system and market rules (sections 129W and 129Z).  \n  - Requires an adjustment mechanism to avoid double recovery of the same costs — the regulations must provide a mechanism so that, over the defined period, network service providers do not receive more revenue than they would have under the Part 8 revenue rules absent this Part (section 129X).  \n  - Gives the Minister significant control over whether the delegated regulations are made (ministerial recommendation) and requires the regulations to be consistent with statutory objectives (section 129ZB).  \n  - Builds in periodic review by the Coordinator and an information‑sharing duty on the Authority to support oversight (sections 129ZC and 129ZD).\n\nTesting the stated purpose against costs, incentives and trade‑offs\n\n- Who pays: the connecting or access‑holding parties identified in regulations (section 129W). Upfront capital charges shift costs onto new entrants or parties changing access arrangements rather than being recovered only through regulated network tariffs spread across all users.  \n- Who decides: the Parliament sets the enabling framework; the Minister must recommend regulations (section 129ZB); the regulations and the electricity system and market rules will set detailed rules (sections 129W, 129X, 129Z). The Authority and Coordinator have operational and review roles (sections 129X, 129ZC, 129ZD).  \n- Incentives and private behaviour: capital charges create stronger price signals for connecting parties — they may deter some connections or change how projects are designed (size, dispatch profile, location) to reduce charge exposure. Differential charges by network, NSP or transfer rate (allowed by section 129W(3)(c)) create incentives to seek locations, configurations or contractual forms that attract lower charges.  \n- Revenue neutrality mechanism: the required adjustment mechanism (section 129X) aims to prevent double recovery by NSPs; implementing that in practice will require clear accounting, timing rules and enforcement in the regulations and/or rules. The success of that mechanism depends on the detail (how past or future regulated revenue is adjusted, netting, timing, interest/discounting).  \n- Administrative and compliance costs: the Bill delegates much of the detailed design to regulations and the electricity system and market rules (sections 129W(3), 129X(2), 129Z(2)). This raises the compliance burden for affected businesses who must track and interpret both regulations and market rules and potentially finance guarantees, instalments and record‑keeping (section 129Z(2)(a)–(b)).  \n- Discretion and capture risks: extensive regulation‑making power, the ability to prescribe classes of payers and different charge levels, and Ministerial control over whether regulations are even made (section 129ZB) concentrate decision rights in the executive and the regulator. That concentration creates ordinary regulatory‑design risks (stakeholders seeking advantageous classifications or carve‑outs). The statutory requirement that regulations be consistent with the Part's objective and the State electricity objective imposes an objective test but leaves substantial room for detailed policy choices in subordinate instruments.  \n- Regulatory complexity and legal interactions: the Bill creates interaction points between primary legislation, delegated regulations and the electricity system and market rules (sections 129W, 129Y, 129Z). Part 3 replaces earlier references to the \"Code\" with \"electricity system and market rules\" and deletes the earlier clause saying regulations prevail over the Code — that changes how inconsistencies will be resolved (see amendments to sections 129W, 129Y, 129Z and deletion of 129ZA). Implementation will therefore require careful drafting of the regulations and market rules to avoid gaps or conflicts.  \n- Transition and grandfathering: transitional regulations and Ministerial orders may adjust existing agreements and instruments to fit the new scheme (Part 12, sections 148–149). The Bill permits limited retrospective treatment for transition purposes but protects private rights and liabilities that existed before the transitional regulation publication day (section 148(2)–(3)).\n\nNet effect in plain terms\n\n- The Bill establishes a legal framework that lets the Government and regulator impose capital charges on parties accessing specified transmission systems, sets a statutory requirement to avoid double recovery by network businesses over time, vests the Minister with a formal gatekeeping role on the regulations, and builds in oversight and transition mechanisms. The detailed rules (who exactly pays, how much, timing, adjustments, and operational processes) are left to regulations and the electricity system and market rules.\n\nKey sections to check when this is implemented\n\n- Section 129W (scope of who pays and delegation to regulations on amounts and eligibility);  \n- Section 129X (mandatory adjustment mechanism to avoid double recovery);  \n- Section 129ZB (Minister must recommend regulations and must be satisfied of consistency with objectives);  \n- Section 129ZC / 129ZD (Coordinator review and Authority disclosure);  \n- Part 12 (transitional regulation powers and Ministerial orders)."}},"importantCases":[],"_links":{"self":"/api/acts/electricity-industry-amendment-capital-charges-bill-2026","history":"/api/acts/electricity-industry-amendment-capital-charges-bill-2026/history","analysis":"/api/acts/electricity-industry-amendment-capital-charges-bill-2026/analysis","conflicts":"/api/acts/electricity-industry-amendment-capital-charges-bill-2026/conflicts","importantCases":"/api/acts/electricity-industry-amendment-capital-charges-bill-2026/important-cases","documents":"/api/acts/electricity-industry-amendment-capital-charges-bill-2026/documents"}}