{"id":"nsw:act-2015-005","name":"Electricity Network Assets (Authorised Transactions) Act 2015","slug":"electricity-network-assets-authorised-transactions-act-2015","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"5 of 2015","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":174719,"registerId":"nsw-nsw:act-2015-005-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [Electricity Network Assets (Authorised Transactions) Act 2015](/view/html/inforce/current/act-2015-005).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> > (1) This Act commences on the date of assent to this Act, except as provided by subsection (2).\n> \n> > (2) Schedule 6 (Ownership restrictions in floated transaction companies) commences on a day to be appointed by proclamation.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation—key definitions","content":"#### 3 Interpretation—key definitions\n\n3 Interpretation—key definitions\n\n> Note—\n> \n> Schedule 1 contains other interpretative provisions.\n> \n> In this Act—\n> \n> associated electricity network land means land (including an interest in land) that is vested in any of the following agencies and designated by the Treasurer by order in writing as associated electricity network land for the purposes of this Act—\n> \n> > (a) (Repealed)\n> \n> > (b) Property and Development NSW,\n> \n> > (c) Transport for NSW,\n> \n> > (d) RailCorp,\n> \n> > (d1) Sydney Trains,\n> \n> > (d2) Sydney Metro,\n> \n> > (e) a council under the [Local Government Act 1993](/view/html/inforce/current/act-1993-030),\n> \n> > (f) any other public sector agency prescribed by the regulations for the purposes of this definition.\n> \n> authorised transaction means a transfer of electricity network assets authorised by Part 2.\n> \n> electricity network assets means—\n> \n> > (a) the assets, rights and liabilities of an electricity network SOC, and\n> \n> > (b) associated electricity network land.\n> \n> electricity network SOC means TransGrid, Ausgrid and Endeavour Energy constituted as statutory State owned corporations under the [Energy Services Corporations Act 1995](/view/html/inforce/current/act-1995-095).\n> \n> Note—\n> \n> Essential Energy is not an electricity network SOC for the purposes of this Act.\n> \n> network infrastructure assets—see section 4.\n> \n> **s 3:** Am 2017 No 12, Sch 1.3; 2017 No 22, Sch 2.9; 2018 No 18, Sch 2.6; 2020 No 30, Sch 4.15; 2024 No 27, Sch 2.4.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Network infrastructure assets","content":"#### 4 Network infrastructure assets\n\n4 Network infrastructure assets\n\n> > (1) In this Act, network infrastructure assets means the following assets that are wholly owned by an electricity network SOC and form part of or are used in connection with the operation of the distribution system, transmission system or street lighting system of the electricity network SOC—\n> > \n> > > (a) electricity power lines and their supporting or protective structures and conduits,\n> > \n> > > (b) associated equipment,\n> > \n> > > (c) street lighting structures,\n> > \n> > > (d) buildings,\n> > \n> > > (e) plant and machinery (excluding motor vehicles),\n> > \n> > > (f) any freehold or leasehold interest in land.\n> \n> > (2) Freehold or leasehold interests in land that are wholly owned by an electricity network SOC and held for the purpose of their forming part of or being used in connection with the operation of the distribution system, transmission system or street lighting system of the electricity network SOC in the future are also network infrastructure assets for the purposes of this Act.\n> \n> > (3) Assets that are not required for the purposes of the operation, in the ordinary course, of the distribution, transmission or street lighting system concerned are not network infrastructure assets for the purposes of this Act.\n> \n> > (4) In this section—\n> > \n> > associated equipment means the following—\n> > \n> > > (a) electricity substations,\n> > \n> > > (b) electricity switchyards,\n> > \n> > > (c) transformers,\n> > \n> > > (d) capacitors,\n> > \n> > > (e) reactive plant,\n> > \n> > > (f) protection equipment, including circuit breakers,\n> > \n> > > (g) monitoring equipment,\n> > \n> > > (h) network communications equipment,\n> > \n> > > (i) customer connection assets (excluding meters).","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"The authorised transactions","content":"# Part 2 The authorised transactions\n\nPart 2 The authorised transactions","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Authorisation for transfer of electricity network assets","content":"#### 5 Authorisation for transfer of electricity network assets\n\n5 Authorisation for transfer of electricity network assets\n\n> > (1) This Act authorises the transfer of electricity network assets to the private sector or to any public sector agency, subject to the following conditions—\n> > \n> > > (a) network infrastructure assets can only be transferred to the private sector by lease,\n> > \n> > > (b) the initial term of a lease of network infrastructure assets to the private sector must not exceed 99 years (without limiting any option to renew for any additional term or terms),\n> > \n> > > (c) the private sector interest in the State’s electricity network assets (calculated as provided by this Part) must not exceed 49%.\n> \n> > (2) For the removal of doubt, this Act does not authorise the transfer of any assets, rights or liabilities of Essential Energy.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Calculation of private sector interest","content":"#### 6 Calculation of private sector interest\n\n6 Calculation of private sector interest\n\n> > (1) The private sector interest in the State’s electricity network assets is to be calculated for the purposes of this Part as follows—\n> > \n> > > (a) for each transacted electricity network SOC the asset value of the SOC is to be multiplied by the level of the interest of the private sector in the transacted business of the SOC on completion of the relevant authorised transaction, to arrive at an amount that is the private sector interest in the assets of the SOC,\n> > \n> > > (b) the amounts calculated under paragraph (a) for all transacted electricity network SOCs are to be summed to arrive at an amount that is the total private sector interest in the assets of transacted electricity network SOCs,\n> > \n> > > (c) the amount arrived at under paragraph (b), expressed as a percentage of the total of the asset values of the 3 electricity network SOCs and of Essential Energy, is the private sector interest in the State’s electricity network assets.\n> \n> > (2) The level of the interest of the private sector in the transacted business of a SOC is—\n> > \n> > > (a) the share to which a person other than a public sector agency is entitled, as at the completion of the relevant authorised transaction, of the distributed profits from the operation of the transacted business of the SOC (unless the share referred to in paragraph (b) is greater), or\n> > \n> > > (b) the share of the assets of the transacted business of the SOC to which a person other than a public sector agency is entitled, as at the completion of the relevant authorised transaction, on a winding up of an entity that controls or operates the business.\n> \n> > (3) In this section—\n> > \n> > asset value of a SOC means the amount of the forecast closing regulatory asset base of the SOC for the 2014–15 regulatory year as set out in the final determination of the Australian Energy Regulator (published on 30 April 2015), being—\n> > \n> > > (a) for Ausgrid—$14,752.3 million, or\n> > \n> > > (b) for Endeavour Energy—$5,944.3 million, or\n> > \n> > > (c) for Essential Energy—$7,187.4 million, or\n> > \n> > > (d) for TransGrid—$6,241.5 million.\n> > \n> > relevant authorised transaction for a SOC means the authorised transaction that results in the SOC becoming a transacted electricity network SOC.\n> > \n> > transacted business of a SOC means the business of a SOC that becomes a business controlled and operated by the private sector as a result of an authorised transaction.\n> > \n> > transacted electricity network SOC means an electricity network SOC the business of which becomes a business controlled and operated by the private sector as a result of an authorised transaction.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Protection of State’s interest in transferred network infrastructure assets","content":"#### 7 Protection of State’s interest in transferred network infrastructure assets\n\n7 Protection of State’s interest in transferred network infrastructure assets\n\n> > (1) A public sector agency must not transfer any network retained interest held by the public sector agency.\n> \n> > (2) This section does not prevent—\n> > \n> > > (a) the granting or enforcement of a security interest over any network retained interest, or\n> > \n> > > (b) the conferral or enforcement of a security interest over any interest in a network infrastructure assets lease, being a security interest that arises by operation of law, or\n> > \n> > > (c) a transfer by or at the direction or under the authority of a liquidator, receiver, receiver and manager, administrator or the like in the course of a winding-up, receivership or other external administration, or\n> > \n> > > (d) a transfer by way of lease (a new lease) created by a sublease under, or surrender and regrant of, an existing network infrastructure assets lease (the existing lease) where the transfer does not result in the level of the public sector’s interest in the entity that is the lessee under the new lease being less than it was for the existing lease, or\n> > \n> > > (e) any transfer to a public sector agency, or\n> > \n> > > (f) a transfer authorised by the regulations.\n> \n> > (3) In this section—\n> > \n> > network infrastructure assets lease means a lease of assets comprising or including network infrastructure assets.\n> > \n> > network retained interest means any interest of a public sector agency in—\n> > \n> > > (a) a network infrastructure assets lease (other than as the lessor of a transacted distribution system or transacted transmission system), or\n> > \n> > > (b) a public sector agency that is a lessee of such a lease or that is a partner in a partnership that is a lessee of such a lease.\n> > \n> > transfer includes surrender.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Electricity price guarantee","content":"#### 8 Electricity price guarantee\n\n8 Electricity price guarantee\n\n> > (1) The Treasurer must ensure that an authorised network operator of a transacted distribution system or transacted transmission system provides a guarantee (its electricity price guarantee) to the effect that—\n> > \n> > > (a) the authorised network operator’s total network charges for the financial year ending 30 June 2019 will be lower than the network operator’s total network charges for the financial year ending 30 June 2014, and\n> > \n> > > (b) the authorised network operator will promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to price, quality, safety, reliability and security of supply of electricity, and\n> > \n> > > (c) the authorised network operator will comply with any Efficiency Benefit Sharing Scheme developed by the AER for the sharing of efficiency gains and losses between network operators and their customers that is applicable to the network operator.\n> \n> > (2) The Treasurer is to request the Price Commissioner to provide the following reports—\n> > \n> > > (a) a report, for each proposed authorised transaction, as to whether the amount of the private sector investment for the purpose of acquiring an interest in electricity network assets pursuant to the authorised transaction (including costs incurred for that purpose) is likely to result in an increase in network charges,\n> > \n> > > (b) an annual report, for each completed authorised transaction, on compliance by the authorised network operator with its obligations under its electricity price guarantee.\n> \n> > (3) A public sector agency must comply with any reasonable request by the Price Commissioner that the agency provide information to the Price Commissioner for the purposes of reports under this section (with any dispute as to the reasonableness of a request to be decided by the Secretary of the Cabinet Office).\n> \n> > (4) The Price Commissioner is not subject to control or direction by or on behalf of the Government in connection with any report of the Price Commissioner.\n> \n> > (5) An authorised network operator must within 2 months after the end of each financial year provide to the Price Commissioner such information as the Price Commissioner may reasonably require to enable the Price Commissioner to report on compliance by the authorised network operator with its obligations under its electricity price guarantee.\n> \n> > (6) In this section—\n> > \n> > network charges means revenue collected by a network operator in respect of regulated services provided by the network operator.\n> > \n> > Price Commissioner means the person engaged by the Secretary of the Cabinet Office as a consultant to provide services as the NSW Electricity Price Commissioner.\n> > \n> > regulated services means the following direct control network services (within the meaning of the [National Electricity (NSW) Law](/view/html/inforce/current/act-1997-20a))—\n> > \n> > > (a) a standard control service or prescribed transmission service,\n> > \n> > > (b) any other service prescribed by the regulations.\n> > \n> > total network charges for a period means the total revenue collected by a network operator at any time (whether or not during the period concerned) in respect of regulated services provided by the network operator during that period.\n> \n> **s 8:** Am 2023 No 35, Sch 4.9.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Independent review of economic impact report","content":"#### 9 Independent review of economic impact report\n\n9 Independent review of economic impact report\n\n> As soon as reasonably practicable after the commencement of this Act, the Treasurer must commission and publish an independent review of the Deloitte Access Economics report entitled “Economic Impact of State Infrastructure Strategy—Rebuilding NSW” published in November 2014.","sortOrder":10},{"sectionNumber":"10","sectionType":"section","heading":"Post-transaction independent review","content":"#### 10 Post-transaction independent review\n\n10 Post-transaction independent review\n\n> Within 12 months after completion of the last authorised transaction under this Act, the Treasurer is to commission and publish an independent review that—\n> \n> > (a) reviews the powers of the Price Commissioner under this Act (with the review to include consultation with stakeholders), and\n> \n> > (b) determines whether network charges have increased as a result of the authorised transactions.","sortOrder":11},{"sectionNumber":"11","sectionType":"section","heading":"Payment and application of proceeds of transactions","content":"#### 11 Payment and application of proceeds of transactions\n\n11 Payment and application of proceeds of transactions\n\n> > (1) The proceeds of the transfer of electricity network assets to the private sector pursuant to an authorised transaction (the transaction proceeds) belong to and are payable directly to the State.\n> \n> > (2) The transaction proceeds include any payment to a public sector agency that is a periodic lease payment under a lease of electricity network assets to the private sector pursuant to an authorised transaction.\n> \n> > (3) The transaction proceeds paid to the State are to be paid in such proportions as the Treasurer directs into—\n> > \n> > > (a) the Restart NSW Fund (the Restart Fund) established under the [Restart NSW Fund Act 2011](/view/html/inforce/current/act-2011-032), and\n> > \n> > > (b) the Residual Liabilities Fund established under this Part.\n> \n> > (4) The following deductions are authorised to be made from the transaction proceeds—\n> > \n> > > (a) deduction of such amounts as the Treasurer approves to repay debt and satisfy other liabilities of a public sector agency in respect of electricity network assets transferred for the purposes of an authorised transaction,\n> > \n> > > (b) deduction of such amounts as the Treasurer approves to reimburse public sector agencies for payments made by them in respect of any tax, duty, fee or charge imposed by any Act or law of the State or any other jurisdiction in connection with a transaction arrangement,\n> > \n> > > (c) deduction of such amounts as the Treasurer approves to satisfy any liability of a public sector agency arising under or in connection with a transaction arrangement,\n> > \n> > > (d) deduction of such amounts as the Treasurer approves to meet expenses reasonably incurred by public sector agencies for the purposes of an authorised transaction.\n> \n> > (5) The transaction proceeds do not include any amount certified by the Treasurer as paid or payable to a public sector agency as a tax, duty, fee or charge imposed by any Act or law of the State in connection with a transaction arrangement.\n> \n> > (6) The deductions authorised to be made from the transaction proceeds may be made before payment of the transaction proceeds into the Restart Fund or Residual Liabilities Fund, or may be made by payment from either or both of those Funds.\n> \n> > (7) The requirements of this section do not affect the validity of a transaction arrangement.","sortOrder":12},{"sectionNumber":"12","sectionType":"section","heading":"Residual Liabilities Fund","content":"#### 12 Residual Liabilities Fund\n\n12 Residual Liabilities Fund\n\n> > (1) There is to be established in the Special Deposits Account a fund called the Electricity Network Residual Liabilities Fund (the Residual Liabilities Fund), which is to be administered by the Treasurer.\n> \n> > (2) There is payable into the Residual Liabilities Fund—\n> > \n> > > (a) such amount as the Treasurer directs to be paid out of the transaction proceeds under section 11, and\n> > \n> > > (b) interest and any other amounts accruing from time to time from the investments of the Residual Liabilities Fund.\n> \n> > (3) There is payable from the Residual Liabilities Fund such amounts as the Treasurer directs from time to time—\n> > \n> > > (a) for payment in discharge of any liabilities of a public sector agency that arise in connection with an authorised transaction or electricity network assets (residual transaction liabilities), or\n> > \n> > > (b) for payment to the Consolidated Fund or the Restart Fund, or\n> > \n> > > (c) for payment of expenses incurred in relation to the administration of the Residual Liabilities Fund.\n> \n> > (4) For the purposes of this section, assets, rights and liabilities do not cease to be electricity network assets when they are transferred to the private sector for the purposes of an authorised transaction.\n> \n> > (5) The Treasurer may invest money in the Residual Liabilities Fund in any way that the Treasurer considers appropriate.\n> \n> **s 12:** Am 2018 No 70, Sch 3.17 \\[1\\].","sortOrder":13},{"sectionNumber":"Part 3","sectionType":"part","heading":"Facilitating the authorised transactions","content":"# Part 3 Facilitating the authorised transactions\n\nPart 3 Facilitating the authorised transactions","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Treasurer’s functions","content":"#### 13 Treasurer’s functions\n\n13 Treasurer’s functions\n\n> The Treasurer has and may exercise all such functions as are necessary or convenient for the purposes of an authorised transaction. The functions conferred on the Treasurer by any other provision of this Act do not limit the Treasurer’s functions under this section.","sortOrder":15},{"sectionNumber":"14","sectionType":"section","heading":"Manner of effecting authorised transaction","content":"#### 14 Manner of effecting authorised transaction\n\n14 Manner of effecting authorised transaction\n\n> > (1) An authorised transaction is to be effected as directed by the Treasurer and can be effected in any manner considered appropriate by the Treasurer.\n> \n> > (2) There are no limitations as to the nature of the transactions or arrangements that can be entered into or used for the purposes of an authorised transaction.\n> \n> > (3) Electricity network assets can be transferred pursuant to this Act whether or not the land in, on or over which they are situated is owned by the owner of the assets.\n> > \n> > Note—\n> > \n> > Section 51 of the ES Act provides that electricity works are owned separately from the land in, on or over which they are situated and ownership of land in, on or over which electricity works are situated does not constitute ownership of those works.\n> \n> > (4) The provisions of this Act for the establishment of various kinds of transaction entity do not limit the nature of the entities or arrangements that can be used for the purposes of an authorised transaction.","sortOrder":16},{"sectionNumber":"15","sectionType":"section","heading":"Transaction SOCs","content":"#### 15 Transaction SOCs\n\n15 Transaction SOCs\n\n> > (1) A statutory State owned corporation may be established under this Act as a transaction SOC for the purposes of an authorised transaction.\n> \n> > (2) The Governor may by order published in the Gazette—\n> > \n> > > (a) create a corporation under a corporate name specified in the order, and\n> > \n> > > (b) specify the functions of the corporation, and\n> > \n> > > (c) direct that the corporation is established as a statutory State owned corporation and as a transaction SOC.\n> \n> > (3) On the day on which the order takes effect—\n> > \n> > > (a) a corporation is constituted with the corporate name and functions specified in the order, and\n> > \n> > > (b) the [State Owned Corporations Act 1989](/view/html/inforce/current/act-1989-134) is amended by inserting in Schedule 5 the corporate name specified in the order (to establish the corporation as a statutory State owned corporation under that Act), and\n> > \n> > > (c) the State owned corporation thereby established is a transaction SOC for the purposes of this Act.\n> \n> > (4) The portfolio Minister of a SOC established under this section is the Minister administering the [Energy Services Corporations Act 1995](/view/html/inforce/current/act-1995-095).\n> \n> > (5) Schedule 2 has effect with respect to a transaction SOC. The provisions of that Schedule are in addition to and (except to the extent to which that Schedule otherwise provides) do not derogate from the provisions of the [State Owned Corporations Act 1989](/view/html/inforce/current/act-1989-134).","sortOrder":17},{"sectionNumber":"16","sectionType":"section","heading":"Transaction companies","content":"#### 16 Transaction companies\n\n16 Transaction companies\n\n> > (1) The Treasurer may for the purposes of an authorised transaction establish, or direct the establishment of, companies as transaction companies in any of the following ways—\n> > \n> > > (a) the formation or acquisition by or on behalf of the State or a SOC of a company limited by shares, so that all the issued shares in the company are held by or on behalf of the State or a SOC (or both),\n> > \n> > > (b) the formation or acquisition of a company as a wholly owned subsidiary company of a transaction company,\n> > \n> > > (c) the conversion of an electricity network SOC or transaction SOC into a company limited by shares as provided by Schedule 3.\n> \n> > (2) A transaction company that is a public sector agency may be converted from one kind of company to any other kind of company.\n> \n> > (3) Except by express agreement with the Treasurer—\n> > \n> > > (a) a transaction company is not and does not represent the State, and\n> > \n> > > (b) the debts, liabilities and obligations of a transaction company are not guaranteed by the State.\n> \n> > (4) The Treasurer may act for or on behalf of the State, a SOC or a transaction company that is a public sector agency in connection with the rights, privileges and benefits, and the duties, liabilities and obligations, of the State, a SOC or a transaction company as the holder of shares or other securities in or issued by a transaction company.\n> \n> > (5) Shares and other securities in or issued by a transaction company that is a public sector agency may be issued or transferred in accordance with the directions of the Treasurer. The Treasurer may on behalf of the State, a SOC or a transaction company that is a public sector agency, enter into and carry out transaction arrangements for the issue or transfer of shares and other securities in or issued by a transaction company.\n> \n> > (6) If an electricity network SOC becomes a transaction company by being converted into a company under this section, a reference in this Act to the electricity network SOC includes a reference to that transaction company.\n> \n> > (7) The provisions of this section are declared to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act in relation to the provisions of the Corporations legislation generally.","sortOrder":18},{"sectionNumber":"17","sectionType":"section","heading":"Functions of electricity network SOCs and transaction entities","content":"#### 17 Functions of electricity network SOCs and transaction entities\n\n17 Functions of electricity network SOCs and transaction entities\n\n> > (1) Each electricity network SOC and transaction entity has and may exercise all such functions as are necessary or convenient for the purposes of an authorised transaction.\n> \n> > (2) The functions conferred by this section are in addition to any other functions that an electricity network SOC or a transaction entity has apart from this section and those other functions do not prevent or otherwise limit the exercise of the additional functions conferred by this section.\n> \n> > (3) The Treasurer may act for or on behalf of an electricity network SOC or a transaction entity in the exercise of any of its functions for the purposes of an authorised transaction while it is a public sector agency.","sortOrder":19},{"sectionNumber":"18","sectionType":"section","heading":"Direction and control of electricity network SOCs and transaction entities","content":"#### 18 Direction and control of electricity network SOCs and transaction entities\n\n18 Direction and control of electricity network SOCs and transaction entities\n\n> > (1) Each electricity network SOC and transaction entity is subject to the direction and control of the Treasurer in the exercise of any of its functions for the purposes of an authorised transaction while it is a public sector agency.\n> \n> > (2) The Treasurer may give directions for the purposes of an authorised transaction to an electricity network SOC or transaction entity, and to the directors and other officers of an electricity network SOC or transaction entity. Any such directions must be complied with by the electricity network SOC, the transaction entity or the directors or other officers concerned.\n> \n> > (3) Directions to a transaction entity (or its directors and other officers) can only be given and are only required to be complied with while the transaction entity is a public sector agency.\n> \n> > (4) The power to give directions under this section extends to directions with respect to the way in which an electricity network SOC or transaction entity is to conduct its business and other affairs.\n> \n> > (5) Action taken by an electricity network SOC or transaction SOC to comply with a direction of the Treasurer under this Act does not require the approval of the voting shareholders or portfolio Minister of the corporation.\n> \n> > (6) Anything done or omitted to be done by a director or other officer of an electricity network SOC or transaction entity in compliance or purported compliance with a direction given by the Treasurer under this Act does not subject the director or officer personally to any action, liability, claim or demand.\n> \n> > (7) The provisions of this section are declared to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act in relation to the provisions of the Corporations legislation generally.","sortOrder":20},{"sectionNumber":"Part 4","sectionType":"part","heading":"Arrangements for transfer of staff","content":"# Part 4 Arrangements for transfer of staff\n\nPart 4 Arrangements for transfer of staff","sortOrder":21},{"sectionNumber":"19","sectionType":"section","heading":"Interpretation","content":"#### 19 Interpretation\n\n19 Interpretation\n\n> In this Part, networks employee means an employee of an electricity network SOC and includes a person who was an employee of an electricity network SOC immediately before the person’s employment was transferred under this Part to the employment of another public sector agency.","sortOrder":22},{"sectionNumber":"20","sectionType":"section","heading":"Transfers within public sector","content":"#### 20 Transfers within public sector\n\n20 Transfers within public sector\n\n> > (1) The Treasurer may, for the purposes of an authorised transaction, by order in writing transfer the employment of a networks employee to the employment of another public sector agency.\n> \n> > (2) A transfer of employment under this section does not require the consent of the person transferred.\n> \n> > (3) An employee whose employment is transferred under this section is (until other provision is duly made under any Act or law) to be employed in accordance with any relevant statutory provisions, awards, agreements and determinations that would have applied to the employee had the employee remained an employee of the electricity network SOC concerned.\n> \n> > (4) The Treasurer may negotiate and enter into agreements or industrial instruments concerning workplace relations for or on behalf of a public sector agency in connection with the operation of this section.","sortOrder":23},{"sectionNumber":"21","sectionType":"section","heading":"Transfers to private sector employment","content":"#### 21 Transfers to private sector employment\n\n21 Transfers to private sector employment\n\n> > (1) The Treasurer may, for the purposes of an authorised transaction, by order in writing transfer the employment of a networks employee (a transferred employee) to the employment of a private sector entity (the new employer).\n> \n> > (2) A transfer of employment under this section does not require the consent of the networks employee transferred.\n> \n> > (3) The employment of a transferred employee with the new employer is to be on the same terms and conditions as applied to the employee as a networks employee immediately before the transfer of employment.","sortOrder":24},{"sectionNumber":"22","sectionType":"section","heading":"Arrangements for transferred employees","content":"#### 22 Arrangements for transferred employees\n\n22 Arrangements for transferred employees\n\n> > (1) On the transfer by order under this Part of an employee’s employment from one employer (the current employer) to another employer (the new employer) the provisions of this section have effect.\n> \n> > (2) If the employee is an apprentice or trainee under the [Apprenticeship and Traineeship Act 2001](/view/html/inforce/current/act-2001-080)—\n> > \n> > > (a) the new employer must apply under section 20 of that Act for approval to the transfer of the apprenticeship or traineeship to the new employer, and\n> > \n> > > (b) consent to the transfer is not required to be given by the apprentice or trainee or the current employer (despite section 20 (4) of the [Apprenticeship and Traineeship Act 2001](/view/html/inforce/current/act-2001-080)).\n> \n> > (3) An employee is not entitled in respect of the same period of service to claim a benefit under this Act and another law or instrument.\n> \n> > (4) The Treasurer may in connection with the operation of Schedule 4 give a certificate in writing as to the extent of the accrued rights to annual leave, extended or long service leave or sick leave that are retained by the employee under that Schedule, and such a certificate is evidence of the matters certified.\n> \n> > (5) Nothing in the [Long Service Leave Act 1955](/view/html/inforce/current/act-1955-038) prevents payment in connection with the transfer under this Act of the employment of an employee to the employment of a private sector entity of the monetary value of long service leave in lieu of an entitlement to that leave accrued as a networks employee before the transfer of the employee’s employment.","sortOrder":25},{"sectionNumber":"23","sectionType":"section","heading":"Operation of other laws and entitlements","content":"#### 23 Operation of other laws and entitlements\n\n23 Operation of other laws and entitlements\n\n> The following provisions apply in relation to the transfer of a person’s employment under this Part—\n> \n> > (a) the transfer has effect despite any other law, contract or instrument under a law,\n> \n> > (b) the transfer does not constitute a retrenchment, redundancy or termination of employment at the initiative of the Crown or any other public sector agency,\n> \n> > (c) the person transferred is not entitled to any payment or other benefit by reason only of having ceased to be an employee of a public sector agency as a result of the transfer,\n> \n> > (d) a public sector agency is not required to make any payment to the transferred person in relation to the transferred person’s accrued rights in respect of annual leave, sick leave or extended or long service leave.","sortOrder":26},{"sectionNumber":"24","sectionType":"section","heading":"Operation of Commonwealth law","content":"#### 24 Operation of Commonwealth law\n\n24 Operation of Commonwealth law\n\n> A provision of this Part (including a provision to the extent that it imposes or continues a term or condition of employment) has no effect to the extent of any inconsistency with any provision of the [Fair Work Act 2009](http://www.legislation.gov.au/) of the Commonwealth or of any instrument under that Act.","sortOrder":27},{"sectionNumber":"Part 5","sectionType":"part","heading":"Arrangements for transfer of assets and functions","content":"# Part 5 Arrangements for transfer of assets and functions\n\nPart 5 Arrangements for transfer of assets and functions","sortOrder":28},{"sectionNumber":"25","sectionType":"section","heading":"Vesting orders","content":"#### 25 Vesting orders\n\n25 Vesting orders\n\n> The Treasurer may make vesting orders under Schedule 5 for the purposes of an authorised transaction.","sortOrder":29},{"sectionNumber":"26","sectionType":"section","heading":"Severance of fixtures","content":"#### 26 Severance of fixtures\n\n26 Severance of fixtures\n\n> > (1) The Treasurer may by order in writing for the purposes of an authorised transaction direct that specified assets to which this section applies are (if they are fixtures) severed from the land on, under or above which they are situated.\n> \n> > (2) The effect of such an order is that the assets concerned are deemed to be severed from the land concerned and may be dealt with as personal property separate from the land for the purposes of an authorised transaction.\n> \n> > (3) This section applies to assets designated by the Treasurer by order in writing to be assets to which this section applies. Assets may be designated as assets to which this section applies only if they are owned by an electricity network SOC (whether or not the land concerned is owned by an electricity network SOC or another public sector agency).\n> \n> > (4) The severance of an asset from land under this section does not affect the right of the asset to be situated on, under or above that land and does not affect any right to drain water or sewage from the asset across and through the land or to use any means of drainage of water or sewage from the asset across and through the land.","sortOrder":30},{"sectionNumber":"27","sectionType":"section","heading":"Grant of relevant authorisations","content":"#### 27 Grant of relevant authorisations\n\n27 Grant of relevant authorisations\n\n> > (1) The Treasurer may by order in writing given to the relevant administering agency direct the grant of a specified relevant authorisation to a person who becomes or who it is proposed will become the new operator of any electricity network assets pursuant to an authorised transaction.\n> \n> > (2) Such a direction (a grant direction) operates to grant the specified relevant authorisation on such terms and conditions and subject to such endorsements as may be specified in the direction, and so operates—\n> > \n> > > (a) without the need for any action by the relevant administering agency, and\n> > \n> > > (b) without the need for the making or determination of any application for the relevant authorisation, and\n> > \n> > > (c) despite any requirement of or restriction imposed by a relevant law in relation to the grant of a relevant authorisation.\n> \n> > (3) A grant direction may only direct the grant of a relevant authorisation that—\n> > \n> > > (a) operates to transfer or replace a relevant authorisation that is currently in force, and\n> > \n> > > (b) is subject to terms, conditions or endorsements that are the same (or to substantially the same effect) as those to which that relevant authorisation is subject.\n> \n> > (4) A grant direction may direct the grant of more than one relevant authorisation to transfer or replace an existing relevant authorisation.\n> \n> > (5) The Treasurer is to consult with the relevant administering agency before giving a grant direction for a relevant authorisation.\n> \n> > (6) The Treasurer may direct the relevant administering agency to give effect to a grant direction by formally granting, and issuing the appropriate documentation for, the relevant authorisation concerned. The relevant administering agency must comply with the Treasurer’s direction within the period specified in the direction.\n> \n> > (7) Anything done by an electricity network SOC or other public sector agency in compliance with a condition or endorsement of a relevant authorisation in relation to electricity network assets of which a person is the new operator is taken to have been done by the new operator for the purposes of any corresponding condition or endorsement of a relevant authorisation granted to the new operator pursuant to this section.\n> \n> > (8) A relevant authorisation granted to an electricity network SOC or to the new operator of electricity network assets may not be suspended or cancelled on the ground of the conversion of the electricity network SOC or new operator to a company or on the ground of any change that has occurred in the officers or shareholders of the company as a result of that conversion or pursuant to a transaction arrangement.\n> \n> > (9) In this section—\n> > \n> > grant includes issue and transfer.\n> > \n> > new operator of electricity network assets means—\n> > \n> > > (a) a public sector agency to which any electricity network assets are transferred for the purposes of an authorised transaction, or\n> > \n> > > (b) a person (or the nominee of a person) who becomes the owner, controller or operator of a transacted distribution system or transacted transmission system pursuant to an authorised transaction.\n> > \n> > relevant administering agency, in relation to a relevant authorisation, means the public sector agency or public official having the function of granting the relevant authorisation.\n> > \n> > relevant authorisation means a licence, permit, consent, entitlement, accreditation, exemption or other authorisation held by an electricity network SOC, or held by another public sector agency as a result of being granted pursuant to this section.","sortOrder":31},{"sectionNumber":"28","sectionType":"section","heading":"Acquisition of land","content":"#### 28 Acquisition of land\n\n28 Acquisition of land\n\n> > (1) Land (including an interest in land) may be acquired for the purposes of an authorised transaction by agreement or by compulsory process in accordance with the [Land Acquisition (Just Terms Compensation) Act 1991](/view/html/inforce/current/act-1991-022).\n> \n> > (2) Land may be acquired under this section only by an electricity network SOC, a transaction entity or the Electricity Assets Ministerial Holding Corporation (each an acquiring authority for the purposes of this section) and only if the acquiring authority has determined the land to be—\n> > \n> > > (a) land on which electricity network assets of an electricity network SOC were situated on the date of assent to this Act and continue to be situated, or\n> > \n> > > (b) land that on the date of assent to this Act was used or occupied by an electricity network SOC for or in connection with the exercise of any function of the electricity network SOC and continues to be so used or occupied, or\n> > \n> > > (c) land that adjoins land referred to in paragraph (a) or (b) and that is or may be required to be used or occupied in connection with the use of electricity network assets.\n> \n> > (3) In the case of land used (but not occupied) by an electricity network SOC for or in connection with the exercise of any function of the electricity network SOC, such as land used for the purposes of access, the power conferred by this section to acquire the land is limited to a power to acquire an interest in the land sufficient to allow that use of the land to continue.\n> \n> > (4) The Treasurer may direct a public sector agency as to how the public sector agency must exercise any function of the agency in connection with the acquisition of land from the agency under this section. If a public sector agency fails to exercise a function in compliance with a direction under this section within 1 month after it is given, the Treasurer may exercise the function for or on behalf of the agency to give effect to the direction.\n> \n> > (5) A public sector agency is not entitled to compensation under the [Land Acquisition (Just Terms Compensation) Act 1991](/view/html/inforce/current/act-1991-022) as the owner of land acquired pursuant to this section.\n> \n> > (6) Land acquired under this section is deemed to be an asset of an electricity network SOC for the purposes of this Act and the acquiring authority is deemed to be an electricity network SOC for the purposes of this Act while it holds the land.\n> \n> Note—\n> \n> Land acquired pursuant to this section is an electricity network asset for the purposes of an authorised transaction whether or not it was an electricity network asset before it was acquired.","sortOrder":32},{"sectionNumber":"29","sectionType":"section","heading":"Adjustment of electricity network SOC objectives and functions","content":"#### 29 Adjustment of electricity network SOC objectives and functions\n\n29 Adjustment of electricity network SOC objectives and functions\n\n> > (1) The Treasurer may by direction in writing to an electricity network SOC adjust the objectives and functions of the electricity network SOC in such manner as the Treasurer considers appropriate to ensure that the objectives and functions of the electricity network SOC remain appropriate, having regard to—\n> > \n> > > (a) the capacity of the electricity network SOC to give effect to or exercise its existing objectives and functions following the transfer of any of its electricity network assets for the purposes of an authorised transaction, and\n> > \n> > > (b) the objectives and functions that would be appropriate for any remaining electricity network assets of the electricity network SOC.\n> \n> > (2) The objectives and functions of an electricity network SOC may be adjusted under this section by being limited or dispensed with but not by being broadened.","sortOrder":33},{"sectionNumber":"Part 6","sectionType":"part","heading":"Operation of transacted distribution and transmission systems","content":"# Part 6 Operation of transacted distribution and transmission systems\n\nPart 6 Operation of transacted distribution and transmission systems","sortOrder":34},{"sectionNumber":"30","sectionType":"section","heading":"Terminology for transacted systems","content":"#### 30 Terminology for transacted systems\n\n30 Terminology for transacted systems\n\n> > (1) When electricity network assets comprising a distribution or transmission system are transferred to the private sector for the purposes of an authorised transaction, the distribution system or transmission system becomes, and may be referred to in this or any other Act as, a transacted distribution system or transacted transmission system.\n> \n> > (2) For the purposes of this or any other Act—\n> > \n> > > (a) an entity that controls or operates a transacted distribution system or transacted transmission system may be referred to as an authorised distributor (for a distribution system) or an authorised transmission operator (for a transmission system), and\n> > \n> > > (b) authorised distributors and authorised transmission operators may be referred to as authorised network operators, and\n> > \n> > > (c) the public sector agency that is the lessor of electricity network assets comprising a transacted distribution system or transacted transmission system may be referred to as the lessor or the owner of the transacted distribution system or transacted transmission system.\n> \n> > (3) A reference (however expressed) in any Act or statutory rule to the distribution system, transmission system or electricity works of a network operator is (in the context of the controller or operator of a transacted distribution system or transacted transmission system) a reference to the distribution system, transmission system or electricity works controlled or operated by the network operator.","sortOrder":35},{"sectionNumber":"31","sectionType":"section","heading":"Rights of lessor","content":"#### 31 Rights of lessor\n\n31 Rights of lessor\n\n> > (1) Ownership of electricity network assets by the lessor of a transacted distribution system or transacted transmission system is to be treated as ownership by the Crown for the purposes of any provision of an Act that confers a right, privilege or immunity on the Crown as an owner of land or other assets.\n> \n> > (2) The lessor of a transacted distribution system or transacted transmission system is not a distributor, transmission operator or network operator for the purposes of the ES Act or the regulations under that Act except for the purposes of the following provisions (the relevant provisions) of that Act—\n> > \n> > > (a) section 44 (Acquisition of land),\n> > \n> > > (b) section 45 (Erection and placement of electricity works),\n> > \n> > > (c) section 50 (Charges for placement of electricity works),\n> > \n> > > (d) section 51 (Ownership of electricity works),\n> > \n> > > (e) section 53 (Protection of certain electricity works),\n> > \n> > > (f) section 85 (Transfer of staff, assets, rights and liabilities),\n> > \n> > > (g) such other provisions as may be prescribed by the regulations under this Act.\n> \n> > (3) For the purposes of the application of the relevant provisions to the lessor of a transacted distribution system or transacted transmission system, the lessor is considered to have the functions of an authorised distributor or authorised transmission operator.","sortOrder":36},{"sectionNumber":"32","sectionType":"section","heading":"Functions of authorised network operators","content":"#### 32 Functions of authorised network operators\n\n32 Functions of authorised network operators\n\n> > (1) A reference in any Act to the functions of a network operator includes—\n> > \n> > > (a) in the case of an authorised distributor—the functions of establishing, maintaining and operating facilities for the distribution of electricity, or\n> > \n> > > (b) in the case of an authorised transmission operator—the functions (its electricity functions) of establishing, maintaining and operating facilities for the transmission of electricity and the functions (its telecommunications functions) of utilising and developing its facilities for the transmission of electricity to carry out telecommunications services.\n> \n> > (2) Divisions 2, 2A and 3 of Part 5 of the ES Act apply to and in respect of the exercise by an authorised transmission operator of its telecommunications functions as if the references in those Divisions to electricity works included references to telecommunications works.\n> > \n> > Note—\n> > \n> > An authorised transmission operator, may, for example, for the purposes of exercising its telecommunications function, exercise powers of entry under, and in accordance with, Division 3 of Part 5 of the ES Act.\n> \n> > (3) Any power or right that an authorised transmission operator has under an affected easement with respect to the exercise of its electricity functions is taken to extend to the exercise of the authorised transmission operator’s telecommunications functions.\n> \n> > (4) Section 44 of the ES Act authorises an authorised transmission operator to acquire land by agreement or compulsorily for the purposes of the exercise of its electricity functions (whether or not the land acquired may also be used for the purposes of its telecommunications functions) but that section does not authorise it to acquire land compulsorily solely for the purposes of the exercise of its telecommunications functions.\n> \n> > (5) In this section—\n> > \n> > affected easement means any easement (whether created statutorily or otherwise)—\n> > \n> > > (a) that was an affected easement under section 6C of the [Energy Services Corporations Act 1995](/view/html/inforce/current/act-1995-095) immediately before the commencement of this section, or\n> > \n> > > (b) that is acquired compulsorily after that commencement.","sortOrder":37},{"sectionNumber":"33","sectionType":"section","heading":"Liability of authorised network operators","content":"#### 33 Liability of authorised network operators\n\n33 Liability of authorised network operators\n\n> > (1) If an authorised network operator of a transacted distribution system or transacted transmission system contravenes a provision of the ES Act or the regulations under that Act in the course of or in connection with the operation of the distribution or transmission system, each authorised network operator of the distribution or transmission system is taken to have contravened the same provision.\n> \n> > (2) An authorised network operator may be proceeded against and convicted under a provision pursuant to this section whether or not any other authorised network operator of the distribution or transmission system has been proceeded against or convicted under that provision.\n> \n> > (3) This section does not affect any liability imposed on an authorised network operator for an offence actually committed by the authorised network operator.","sortOrder":38},{"sectionNumber":"34","sectionType":"section","heading":"Authorised network operators as public bodies","content":"#### 34 Authorised network operators as public bodies\n\n34 Authorised network operators as public bodies\n\n> > (1) The regulations may provide that a reference in a specified provision of any other Act or an instrument made under any other Act to a public authority includes, or does not include, a reference to the owner, controller or operator of a transacted distribution system or transacted transmission system.\n> \n> > (2) In this section, public authority includes statutory authority, statutory body, public utility undertaking, government agency and other public bodies.","sortOrder":39},{"sectionNumber":"35","sectionType":"section","heading":"Modification of ES Act provisions conferring functions on network operators","content":"#### 35 Modification of ES Act provisions conferring functions on network operators\n\n35 Modification of ES Act provisions conferring functions on network operators\n\n> The regulations may modify any provision of the ES Act that confers a function on a network operator for the purposes of adapting the application of the provision to or in respect of the functions of the owner, controller or operator of a transacted distribution system or transacted transmission system.","sortOrder":40},{"sectionNumber":"36","sectionType":"section","heading":"Land acquisition functions","content":"#### 36 Land acquisition functions\n\n36 Land acquisition functions\n\n> > (1) The land acquisition functions of the lessor of a transacted distribution system or transacted transmission system cannot be exercised by the lessor in the lessor’s own right but can be exercised by another network operator of the distribution or transmission system on behalf of the lessor, and the other network operator has full power and authority to exercise those functions on behalf of the lessor.\n> \n> > (2) The following provisions apply to the exercise of land acquisition functions by a network operator of a transacted distribution system or transacted transmission system on behalf of the lessor—\n> > \n> > > (a) the exercise of any such function by a network operator on behalf of the lessor is subject to any agreement between the network operator and the lessor concerning the exercise of those functions and to any agreement between network operators as to which of them is to exercise the function on behalf of the lessor in a particular case,\n> > \n> > > (b) land (including an interest in land) that is acquired in the exercise of land acquisition functions by a network operator is acquired on behalf of and vests in the lessor,\n> > \n> > > (c) the lessor has no liability in connection with the exercise of any land acquisition function on its behalf by a network operator (other than a liability to the network operator arising under an agreement between the lessor and the network operator as to the exercise of those functions) and any such liability that the lessor would otherwise have becomes instead a liability of the network operator,\n> > \n> > > (d) the lessor cannot be made a party to any proceedings in connection with the exercise of any land acquisition function on its behalf by a network operator (other than proceedings in connection with an agreement between the lessor and the network operator as to the exercise of those functions).\n> \n> > (3) A network operator of a transacted distribution system or transacted transmission system cannot exercise a land acquisition function in its own right (and can only exercise that function on behalf of the lessor as provided by this section) if the function relates to land of which the lessor of the transacted distribution system or transacted transmission system will become the owner.\n> \n> > (4) The approval of the Minister under section 44 (3) of the ES Act in respect of the acquisition of land on behalf of the lessor of a transacted distribution system or transacted transmission system is not to be given unless the Minister is satisfied that all reasonable steps have been taken to enter into an agreement with the owner of the land to acquire the land and those steps have not resulted in any such agreement.\n> \n> > (5) In this section, land acquisition functions means any of the following functions to the extent that they may be exercised for the purposes of or in connection with the functions of a network operator—\n> > \n> > > (a) functions under section 44 (Acquisition of land) of the ES Act,\n> > \n> > > (b) any function that concerns the creation, assurance or extinguishment of an interest in land.","sortOrder":41},{"sectionNumber":"37","sectionType":"section","heading":"Protection of electricity works","content":"#### 37 Protection of electricity works\n\n37 Protection of electricity works\n\n> > (1) Section 53 of the ES Act applies in respect of electricity works that form part of a transacted distribution system or transacted transmission system as if—\n> > \n> > > (a) a reference in that section to the commencement of the [Electricity Supply Amendment (Protection of Electricity Works) Act 2006](/view/html/repealed/current/act-2006-028) were a reference to the completion of the authorised transaction as a result of which the electricity works form part of that transacted distribution system or transacted transmission system, and\n> > \n> > > (b) a reference to the network operator included a reference to a network operator after the completion of that authorised transaction.\n> \n> > (2) Section 53 of the ES Act does not apply to prevent an action lying by the owner of a transacted distribution system or transacted transmission system against a network operator that controls or operates the system.","sortOrder":42},{"sectionNumber":"38","sectionType":"section","heading":"Licensing","content":"#### 38 Licensing\n\n38 Licensing\n\n> > (1) The Treasurer may for the purposes of an authorised transaction request the Minister under the ES Act to grant a licence referred to in section 13 or 93A of that Act to an entity nominated by the Treasurer as the new operator of a transacted distribution system or transacted transmission system.\n> \n> > (2) The Minister under the ES Act is to grant a licence in accordance with the Treasurer’s request. The licence is to be granted on terms and conditions approved by the Treasurer and as may be required by or under the ES Act.\n> \n> > (3) Clauses 2, 3 and 4 of Schedule 2 to the ES Act do not apply in respect of the grant of a licence pursuant to a request under this section.\n> \n> **s 38:** Am 2016 No 27, Sch 2.14.","sortOrder":43},{"sectionNumber":"39","sectionType":"section","heading":"Boundaries of distribution districts","content":"#### 39 Boundaries of distribution districts\n\n39 Boundaries of distribution districts\n\n> > (1) The boundaries of the distribution district for a transacted distribution system cannot be varied under section 84 of the ES Act except with the consent in writing of the authorised distributor.\n> \n> > (2) If the boundaries of the distribution district for a transacted distribution system are varied under section 84 of the ES Act, the power of the Minister under section 85 (Transfer of staff, assets, rights and liabilities) of the ES Act to order the transfer of staff, assets, rights or liabilities of a distributor includes the power to order the transfer of staff, assets, rights or liabilities of the owner or controller of the distribution system concerned.","sortOrder":44},{"sectionNumber":"40","sectionType":"section","heading":"Land tax","content":"#### 40 Land tax\n\n40 Land tax\n\n> > (1) The exception provided for a sublessee in section 21C of the [Land Tax Management Act 1956](/view/html/inforce/current/act-1956-026) does not apply to a sublessee under an authorised transaction sublease and the sublessee is liable for land tax accordingly.\n> \n> > (2) An authorised transaction sublease is a sublease entered into for the purposes of an authorised transaction.","sortOrder":45},{"sectionNumber":"41","sectionType":"section","heading":"Planning laws","content":"#### 41 Planning laws\n\n41 Planning laws\n\n> > (1) For the purposes of any environmental planning instrument, the supply of electricity by an authorised network operator is a public utility undertaking carried on by the authorised network operator as an electricity supply authority.\n> \n> > (2) For the purposes of any relevant planning law provision, the carrying out of development by or on behalf of an authorised network operator for the purpose of an electricity transmission or distribution network (within the meaning of [State Environmental Planning Policy (Infrastructure) 2007](/view/html/repealed/current/epi-2007-0641)) constitutes the carrying out of that development by the authorised network operator as an electricity supply authority and public authority.\n> \n> > (3) After a distribution system or transmission system becomes a transacted distribution system or transacted transmission system, a reference in an environmental planning instrument to the former network operator is to be read as a reference to the authorised network operator that operates the transacted distribution system or transacted transmission system.\n> \n> > (4) In this section—\n> > \n> > environmental planning instrument has the same meaning as in the Planning Act.\n> > \n> > former network operator means the electricity network SOC that was the network operator of the distribution or transmission system concerned before the authorised network operator became the network operator.\n> > \n> > Planning Act means the [Environmental Planning and Assessment Act 1979](/view/html/inforce/current/act-1979-203).\n> > \n> > relevant planning law provision means—\n> > \n> > > (a) any provision of an environmental planning instrument that permits specified development to be carried out with or without development consent, or\n> > \n> > > (b) any provision of an environmental planning instrument that deals with the obligations of a public authority in connection with the carrying out of development by or on behalf of the public authority that may be carried out without development consent (including the carrying out of an activity to which Part 5 of the Planning Act applies).","sortOrder":46},{"sectionNumber":"42","sectionType":"section","heading":"Coastal protection","content":"#### 42 Coastal protection\n\n42 Coastal protection\n\n> Nothing done for the purposes of an authorised transaction requires the concurrence of the Minister under section 38 or 39 of the [Coastal Protection Act 1979](/view/html/repealed/current/act-1979-013).","sortOrder":47},{"sectionNumber":"Part 7","sectionType":"part","heading":"Operation of other laws","content":"# Part 7 Operation of other laws\n\nPart 7 Operation of other laws","sortOrder":48},{"sectionNumber":"43","sectionType":"section","heading":"State taxes","content":"#### 43 State taxes\n\n43 State taxes\n\n> > (1) In this section—\n> > \n> > relevant matter means any of the following—\n> > \n> > > (a) any transaction arrangement,\n> > \n> > > (b) a vesting of assets, rights or liabilities by operation of Schedule 5 (Vesting of assets, rights and liabilities) and anything certified by the Treasurer as having been done in consequence of such a vesting (for example, the transfer or registration of an interest in land),\n> > \n> > > (c) the issue, disposal or purchase of shares or other securities or interest in or issued by an entity for the purposes of an authorised transaction,\n> > \n> > > (d) any matter connected with the corporate conversion of an electricity network SOC or transaction SOC for the purposes of an authorised transaction,\n> > \n> > > (e) any transaction, agreement or other arrangement (a post-completion arrangement) occurring within 2 years after completion of an authorised transaction and certified by the Treasurer to have been entered into in connection with the transfer of electricity network assets to the private sector pursuant to the authorised transaction,\n> > \n> > > (f) such other matters for the purposes of an authorised transaction as may be prescribed by the regulations.\n> > \n> > State tax means application, transfer or registration fees, duty under the [Duties Act 1997](/view/html/inforce/current/act-1997-123) or any other tax, duty, fee or charge imposed by any Act or law of the State.\n> \n> > (2) State tax is not payable by a public sector agency in relation to a relevant matter.\n> \n> > (3) The Treasurer may by order in writing direct that subsection (2) does not apply to a public sector agency either generally or in respect of a particular relevant matter or class of relevant matters.\n> \n> > (4) State tax is not payable by a person or body (other than a public sector agency) in relation to a relevant matter to such extent (if any) as the Treasurer may direct by order in writing, either generally or in a particular case.\n> \n> > (5) The Treasurer may by order in writing limit the application of this section in respect of a particular post-completion arrangement by imposing conditions on the application of this section to the arrangement.\n> \n> > (6) An order may be made by the Treasurer under this section before or after the liability to pay the State tax concerned accrues.\n> \n> > (7) The Treasurer must give a copy of an order under this section to the Chief Commissioner of State Revenue.","sortOrder":49},{"sectionNumber":"44","sectionType":"section","heading":"General relationship of Act with other State legislation","content":"#### 44 General relationship of Act with other State legislation\n\n44 General relationship of Act with other State legislation\n\n> > (1) None of the following provisions operate to prevent, restrict or otherwise limit the carrying out of a transaction arrangement or the exercise of a function for the purposes of an authorised transaction—\n> > \n> > > (a) any provision of the [State Owned Corporations Act 1989](/view/html/inforce/current/act-1989-134),\n> > \n> > > (b) any provision of the [Energy Services Corporations Act 1995](/view/html/inforce/current/act-1995-095),\n> > \n> > > (c) any provision of the constitution of a statutory SOC or a subsidiary of a statutory SOC.\n> \n> > (2) In the event of any inconsistency between the provisions of this Act or the regulations and a provision of any other State legislation that is prescribed by the regulations as an inconsistent provision for the purposes of this section, the provisions of this Act or the regulations (as the case may be) prevail to the extent of the inconsistency.\n> \n> > (3) The requirements of any other Act (whether enacted before or after this Act) for the approval by resolution of either or both Houses of Parliament (or by Act) of any act that constitutes the transfer of electricity network assets for the purposes of an authorised transaction is satisfied by the enactment of this Act.","sortOrder":50},{"sectionNumber":"45","sectionType":"section","heading":"Part 6 of Government Sector Finance Act 2018","content":"#### 45 Part 6 of Government Sector Finance Act 2018\n\n45 Part 6 of [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055)\n\n> Part 6 of the [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055) does not apply to any transaction arrangement.\n> \n> **s 45:** Subst 2018 No 70, Sch 3.17 \\[2\\].","sortOrder":51},{"sectionNumber":"46","sectionType":"section","heading":"Release of information by Auditor-General","content":"#### 46 Release of information by Auditor-General\n\n46 Release of information by Auditor-General\n\n> Section 38 (Secrecy) of the [Government Sector Audit Act 1983](/view/html/inforce/current/act-1983-152) does not apply to or in respect of a report or communication that the Treasurer authorises the Auditor-General to make to a person for the purposes of an authorised transaction or for the purposes of the audit (before or after the completion of an authorised transaction) of records relating to electricity network assets transferred pursuant to an authorised transaction.\n> \n> **s 46:** Am 2018 No 70, Sch 4.29\\[1\\].","sortOrder":52},{"sectionNumber":"47","sectionType":"section","heading":"Conveyancing Act","content":"#### 47 Conveyancing Act\n\n47 Conveyancing Act\n\n> Section 52A of the [Conveyancing Act 1919](/view/html/inforce/current/act-1919-006) does not apply to a contract entered into for the purposes of an authorised transaction.","sortOrder":53},{"sectionNumber":"48","sectionType":"section","heading":"Protection against breach of contractual and other obligations","content":"#### 48 Protection against breach of contractual and other obligations\n\n48 Protection against breach of contractual and other obligations\n\n> > (1) The following matters and things are protected by this section—\n> > \n> > > (a) the operation of this Act (including any regulation or order under this Act),\n> > \n> > > (b) the transfer of electricity network assets for the purposes of an authorised transaction,\n> > \n> > > (c) the entering into or performance of obligations under a transaction, agreement or other arrangement for the purposes of an authorised transaction,\n> > \n> > > (d) a disclosure of information by, on behalf of or with the consent of a public sector agency for the purposes of an authorised transaction,\n> > \n> > > (e) anything else done or omitted to be done under or for the purposes of this Act or an authorised transaction.\n> \n> > (2) None of the matters or things protected by this section are to be regarded as—\n> > \n> > > (a) a breach of contract or confidence or otherwise as a civil wrong, or\n> > \n> > > (b) a breach of any instrument (including, without limitation, any provision prohibiting, restricting or regulating the assignment or transfer of assets, rights or liabilities) or as requiring any act to be done under an instrument, or\n> > \n> > > (c) giving rise to any right or remedy by a party to a contract or other instrument, or as causing or permitting the termination of, or exercise of rights under, any contract or other instrument, or\n> > \n> > > (d) an event of default under any contract or other instrument, or\n> > \n> > > (e) giving rise to a breach of or an offence against a provision of an Act that prohibits or restricts the disclosure of information, or\n> > \n> > > (f) releasing a surety or other obligee wholly or in part from an obligation.\n> \n> > (3) This section does not affect rights and obligations that arise under a transaction, agreement or other arrangement entered into for the purposes of an authorised transaction.\n> \n> > (4) In this section—\n> > \n> > instrument means an instrument (other than an instrument made under this Act) or any other document that creates, modifies or extinguishes rights or liabilities (or would do so if lodged, filed or registered in accordance with any law), and includes any judgment, order, process or other instrument issued by a court or tribunal.","sortOrder":54},{"sectionNumber":"49","sectionType":"section","heading":"Compensation not payable","content":"#### 49 Compensation not payable\n\n49 Compensation not payable\n\n> > (1) Compensation is not payable by or on behalf of the State—\n> > \n> > > (a) because of the enactment or operation of this Act, or for any consequence of that enactment or operation, or\n> > \n> > > (b) because of any statement or conduct relating to the enactment of this Act.\n> \n> > (2) This section does not extend to compensation payable under a transaction arrangement to a party to the transaction arrangement in connection with the performance of obligations under the transaction arrangement.\n> \n> > (3) In this section—\n> > \n> > compensation includes damages or any other form of monetary compensation.\n> > \n> > conduct includes any act or omission, whether unconscionable, misleading, deceptive or otherwise.\n> > \n> > operation of this Act includes the operation of any notice or order under this Act and any agreement entered into under or for the purposes of this Act.\n> > \n> > statement includes a representation of any kind—\n> > \n> > > (a) whether made verbally or in writing, and\n> > \n> > > (b) whether negligent, false, misleading or otherwise.\n> > \n> > the State means the Crown within the meaning of the [Crown Proceedings Act 1988](/view/html/inforce/current/act-1988-070), and includes a public sector agency and an officer, employee or agent of the Crown or a public sector agency.","sortOrder":55},{"sectionNumber":"50","sectionType":"section","heading":"Leases of electricity network assets","content":"#### 50 Leases of electricity network assets\n\n50 Leases of electricity network assets\n\n> > (1) The provisions of an electricity network assets lease (or of any agreement or arrangement entered into in connection with such a lease) dealing with the following matters have effect according to their terms despite any law or rule to the contrary—\n> > \n> > > (a) the term of the lease,\n> > \n> > > (b) the existence or exercise of an option under the lease,\n> > \n> > > (c) the payment of any amount by way of a premium for the lease and the retention of any such amount by the lessor or the State,\n> > \n> > > (d) the circumstances or conditions under which the lease may be terminated by the lessor or lessee,\n> > \n> > > (e) the application or operation of section 122, 130 or 133B of the [Conveyancing Act 1919](/view/html/inforce/current/act-1919-006) to or in respect of the lease (or any lease under the lease),\n> > \n> > > (f) the application of a security provided in relation to the lease,\n> > \n> > > (g) the payment of a sum that is in the nature of a penalty,\n> > \n> > > (h) the ownership of, or the vesting or forfeiture of ownership of, any real or personal property on termination of the lease or on the occurrence of some other specified event or other thing,\n> > \n> > > (i) the pre-payment of amounts payable by way of rent under the lease and the retention of any such amounts by the lessor or the State,\n> > \n> > > (j) the continuance of the lease despite the occurrence of unintended or unforeseen circumstances,\n> > \n> > > (k) the continuance of the obligation to pay rent despite the occurrence of unintended or unforeseen circumstances,\n> > \n> > > (l) the amount payable in consequence of a breach or early termination of the lease, expiry of the lease or exercise of any option to extend the lease,\n> > \n> > > (m) the liability of the lessor or lessee in relation to the leased assets,\n> > \n> > > (n) the non-refundability of any payment made on account of rent, premium, option fee, outgoings, security deposit or otherwise,\n> > \n> > > (o) the operation of any set-off.\n> \n> > (2) A provision of an electricity network assets lease (or of any agreement or arrangement entered into in connection with such a lease) that confers rights or obligations on the State is enforceable by or against the State even though the State is not a party to the lease, agreement or arrangement.\n> \n> > (3) An electricity network assets lease may include provision for the removal by the lessee of any fixture severable from the land leased.\n> \n> > (4) A scheme of arrangement, receivership, winding up or other external administration of a company is to be carried out in a manner that gives effect to this section.\n> \n> > (5) A variation of an electricity network assets lease that varies the land to which the lease relates and that is made pursuant to a provision of the lease or another transaction arrangement—\n> > \n> > > (a) can be registered under the [Real Property Act 1900](/view/html/inforce/current/act-1900-025) (despite section 55A (4) of that Act), and\n> > \n> > > (b) does not have the effect of surrendering or regranting the lease.\n> \n> > (6) A certificate given by the Treasurer to the effect that a variation of lease is a variation to which subsection (5) applies is evidence of the matters certified.\n> \n> > (7) In this section—\n> > \n> > electricity network assets lease means—\n> > \n> > > (a) a lease of electricity network assets entered into for the purposes of an authorised transaction, or\n> > \n> > > (b) a lease of electricity network assets that the Treasurer designates by order in writing as an electricity network assets lease for the purposes of this section, or\n> > \n> > > (c) a sublease under a lease referred to in paragraph (a) or (b).","sortOrder":56},{"sectionNumber":"Part 8","sectionType":"part","heading":"Miscellaneous","content":"# Part 8 Miscellaneous\n\nPart 8 Miscellaneous","sortOrder":57},{"sectionNumber":"51","sectionType":"section","heading":"Functions of Electricity Assets Ministerial Holding Corporation","content":"#### 51 Functions of Electricity Assets Ministerial Holding Corporation\n\n51 Functions of Electricity Assets Ministerial Holding Corporation\n\n> > (1) The functions of the Electricity Assets Ministerial Holding Corporation include—\n> > \n> > > (a) to hold, on behalf of the Crown, electricity network assets acquired by it or transferred to it, and\n> > \n> > > (b) to carry on any activities or business that relate to any electricity network assets held by it, including demanding, collecting and receiving charges, levies, rates and fees, and\n> > \n> > > (c) such other functions for the purposes of an authorised transaction under this Act as may be prescribed by the regulations.\n> \n> > (2) There is to be established in the Special Deposits Account a fund called the Electricity Assets Ministerial Holding Corporation Fund (the EAMHC Fund), which is to be administered by the Treasurer.\n> \n> > (3) There is payable into the EAMHC Fund—\n> > \n> > > (a) all money received by the Corporation in the exercise of its functions under this or any other Act, and\n> > \n> > > (b) all money standing to the credit of any working account established for the Corporation under section 13A of the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) on the commencement of this section.\n> \n> > (4) There is payable from the EAMHC Fund such amounts as the Treasurer directs from time to time for—\n> > \n> > > (a) payment of expenditure by the Corporation in the exercise of its functions under this or any other Act, or\n> > \n> > > (b) payment of expenses incurred in relation to the administration of the EAMHC Fund, or\n> > \n> > > (c) payment to the Consolidated Fund.\n> \n> > (5) The Treasurer may invest money in the EAMHC Fund in any way that the Treasurer considers appropriate.\n> \n> **s 51:** Am 2018 No 70, Sch 3.17 \\[3\\].","sortOrder":58},{"sectionNumber":"52","sectionType":"section","heading":"Functions of New South Wales Treasury Corporation","content":"#### 52 Functions of New South Wales Treasury Corporation\n\n52 Functions of New South Wales Treasury Corporation\n\n> > (1) New South Wales Treasury Corporation (TCorp) has the object of providing financial services for the purposes of an authorised transaction at the direction of the Treasurer.\n> \n> > (2) The Treasurer may direct TCorp to do any one or more of the following for the purposes of an authorised transaction on terms and conditions determined by the Treasurer—\n> > \n> > > (a) provide borrowings (including by the lending of money) to or for the benefit of a private sector entity,\n> > \n> > > (b) effect a derivative arrangement for the benefit of or on behalf of a private sector entity,\n> > \n> > > (c) participate in any other arrangement or transaction approved by the Treasurer for the purposes of an authorised transaction.\n> \n> > (3) TCorp is authorised and required to comply with a direction of the Treasurer under this section.\n> \n> > (4) Words and expressions used in this section that are defined in the [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055) have the same meanings as in that Act.\n> \n> **s 52:** Am 2018 No 70, Sch 3.17 \\[4\\] \\[5\\].","sortOrder":59},{"sectionNumber":"53","sectionType":"section","heading":"Delegation","content":"#### 53 Delegation\n\n53 Delegation\n\n> The Treasurer may delegate to the Secretary of the Treasury, or to any other Government sector employee prescribed by the regulations, any function of the Treasurer under this Act except this power of delegation.","sortOrder":60},{"sectionNumber":"54","sectionType":"section","heading":"Act to bind State and other jurisdictions","content":"#### 54 Act to bind State and other jurisdictions\n\n54 Act to bind State and other jurisdictions\n\n> > (1) This Act binds the State and, in so far as the legislative power of the Parliament of New South Wales permits, the other States, the Territories and the Commonwealth.\n> \n> > (2) Without limiting subsection (1), this Act has effect despite any privilege or immunity of the Crown in any of its capacities.\n> \n> > (3) This Act does not make any State or Territory, the Commonwealth, or the Crown in any of its capacities, liable to be prosecuted for an offence.\n> \n> > (4) A reference in this section to a State, Territory or the Commonwealth includes a reference to the Government of the State, Territory or Commonwealth.","sortOrder":61},{"sectionNumber":"55","sectionType":"section","heading":"Extraterritorial operation of Act","content":"#### 55 Extraterritorial operation of Act\n\n55 Extraterritorial operation of Act\n\n> > (1) It is the intention of the Parliament of New South Wales that the operation of this Act should, as far as possible, include operation in relation to the following—\n> > \n> > > (a) things situated in or outside the territorial limits of the State,\n> > \n> > > (b) acts, transactions and matters done, entered into or occurring in or outside the territorial limits of the State,\n> > \n> > > (c) things, acts, transactions and matters (wherever situated, done, entered into or occurring) that would, apart from this Act, be governed or otherwise affected by the law of another State, a Territory, the Commonwealth or a foreign country.\n> \n> > (2) Without limiting subsection (1), it is the intention of the Parliament of New South Wales that the provisions of this Act have an operation in relation to the things, acts, transactions and matters referred to in that subsection even if the rules of private international law (whether at general law or as provided by legislation) would require the application of a law other than this Act instead of the provisions of this Act.","sortOrder":62},{"sectionNumber":"56","sectionType":"section","heading":"Construction of Act and instruments so as not to exceed legislative power","content":"#### 56 Construction of Act and instruments so as not to exceed legislative power\n\n56 Construction of Act and instruments so as not to exceed legislative power\n\n> > (1) Unless a contrary intention appears, if a provision of this Act or an instrument made under this Act—\n> > \n> > > (a) would, apart from this section, have an invalid application, but\n> > \n> > > (b) also has at least one valid application,\n> > \n> > it is the intention of the Parliament of New South Wales that the provision is not to have the invalid application, but is to have every valid application.\n> \n> > (2) Despite subsection (1), the provision is not to have a particular valid application if—\n> > \n> > > (a) apart from this section, it is clear, taking into account the provision’s context and the purposes or objects underlying this Act, that the provision was intended to have that valid application only if every invalid application, or a particular invalid application, of the provision had also been within the legislative power of the Parliament of New South Wales, or\n> > \n> > > (b) the provision’s operation in relation to that valid application would be different in a substantial respect from what would have been its operation in relation to that valid application if every invalid application, or a particular invalid application, of the provision had been within the legislative power of the Parliament of New South Wales.\n> \n> > (3) Subsection (2) does not limit the cases in which a contrary intention may be taken to appear for the purposes of subsection (1).\n> \n> > (4) This section is in addition to, and not in derogation of, section 31 of the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015).\n> \n> > (5) In this section—\n> > \n> > application means an application in relation to—\n> > \n> > > (a) one or more particular persons, things, matters, places, circumstances or cases, or\n> > \n> > > (b) one or more classes (however defined or determined) of persons, things, matters, places, circumstances or cases.\n> > \n> > invalid application, in relation to a provision, means an application because of which the provision exceeds the legislative power of the Parliament of New South Wales.\n> > \n> > valid application, in relation to a provision, means an application which, if it were the provision’s only application, would be within the legislative power of the Parliament of New South Wales.","sortOrder":63},{"sectionNumber":"57","sectionType":"section","heading":"Orders","content":"#### 57 Orders\n\n57 Orders\n\n> > (1) An order made under a provision of this Act takes effect at the beginning of the day on which it is made, unless the order otherwise provides.\n> \n> > (2) An order cannot provide for the order to take effect earlier than the beginning of the day on which it is made (but can provide for the order to take effect at a time on the day on which it is made that is earlier than the time at which it is made).\n> \n> > (3) A document purporting to be an order made under a provision of this Act is, unless the contrary is established, taken to be such an order and to have been properly made.\n> \n> > (4) A certificate purporting to be signed by the Treasurer or an officer prescribed by the regulations certifying that an order specified or referred to in the certificate is an order made under a specified provision of this Act is admissible in evidence in any legal proceedings and is evidence of the matters certified.\n> \n> > (5) A provision of another Act that results from an amendment made by this Act and that provides for the making of an order is deemed for the purposes of this section to be a provision of this Act (and the order is deemed to be an order made under a provision of this Act).","sortOrder":64},{"sectionNumber":"58","sectionType":"section","heading":"Service or giving of documents","content":"#### 58 Service or giving of documents\n\n58 Service or giving of documents\n\n> > (1) A document that is authorised or required by this Act or the regulations to be served on or given to any person may be served or given—\n> > \n> > > (a) in the case of a natural person—\n> > > \n> > > > (i) by delivering it to the person personally, or\n> > > \n> > > > (ii) by sending it by post to the address specified by the person for the giving or service of documents or, if no such address is specified, the residential or business address of the person last known to the person giving or serving the document, or\n> > > \n> > > > (iii) by sending it by facsimile transmission to the facsimile number of the person, or\n> > \n> > > (b) in the case of a body corporate—\n> > > \n> > > > (i) by leaving it with a person apparently of or above the age of 16 years at, or by sending it by post to, the head office, a registered office or a principal office of the body corporate or to an address specified by the body corporate for the giving or service of documents, or\n> > > \n> > > > (ii) by sending it by facsimile transmission to the facsimile number of the body corporate.\n> \n> > (2) Nothing in this section affects the operation of any provision of a law or of the rules of a court authorising a document to be served on a person in any other manner.","sortOrder":65},{"sectionNumber":"59","sectionType":"section","heading":"Regulations","content":"#### 59 Regulations\n\n59 Regulations\n\n> The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":66},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Interpretative provisions","content":"# Schedule 1 Interpretative provisions\n\nSchedule 1 Interpretative provisions","sortOrder":67},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"Provisions concerning transaction SOCs","content":"# Schedule 2 Provisions concerning transaction SOCs\n\nSchedule 2 Provisions concerning transaction SOCs\n\n(Section 15)","sortOrder":79},{"sectionNumber":"Schedule 3","sectionType":"schedule","heading":"Corporate conversion of electricity network SOCs and transaction SOCs","content":"# Schedule 3 Corporate conversion of electricity network SOCs and transaction SOCs\n\nSchedule 3 Corporate conversion of electricity network SOCs and transaction SOCs\n\n(Section 16)\n\n**sch 3:** Am 2018 No 70, Sch 4.29\\[2\\].","sortOrder":85},{"sectionNumber":"Schedule 4","sectionType":"schedule","heading":"Employment guarantees","content":"# Schedule 4 Employment guarantees\n\nSchedule 4 Employment guarantees","sortOrder":89},{"sectionNumber":"Schedule 5","sectionType":"schedule","heading":"Vesting of assets, rights and liabilities","content":"# Schedule 5 Vesting of assets, rights and liabilities\n\nSchedule 5 Vesting of assets, rights and liabilities\n\n(Section 25)","sortOrder":113},{"sectionNumber":"Schedule 6","sectionType":"schedule","heading":"Ownership restrictions in floated transaction companies","content":"# Schedule 6 Ownership restrictions in floated transaction companies\n\nSchedule 6 Ownership restrictions in floated transaction companies","sortOrder":124},{"sectionNumber":"Schedule 7","sectionType":"schedule","heading":"Savings, transitional and other provisions","content":"# Schedule 7 Savings, transitional and other provisions\n\nSchedule 7 Savings, transitional and other provisions\n\n**sch 7:** Am 2015 No 58, Sch 2.8; 2018 No 70, Schs 3.17 \\[6\\], 4.29\\[3\\] \\[4\\]; 2023 No 38, Sch 2.1\\[1\\] \\[2\\].","sortOrder":154},{"sectionNumber":"Division 1","sectionType":"division","heading":"Electricity network SOCs","content":"## Division 1 Electricity network SOCs\n\nDivision 1 Electricity network SOCs","sortOrder":158},{"sectionNumber":"Division 2","sectionType":"division","heading":"Ministerial Holding Corporations","content":"## Division 2 Ministerial Holding Corporations\n\nDivision 2 Ministerial Holding Corporations","sortOrder":165},{"sectionNumber":"Division 3","sectionType":"division","heading":"Transacted distribution and transmission systems","content":"## Division 3 Transacted distribution and transmission systems\n\nDivision 3 Transacted distribution and transmission systems","sortOrder":174},{"sectionNumber":"Schedule 8","sectionType":"schedule","heading":null,"content":"# Schedule 8\n\nSchedule 8 (Repealed)\n\n**sch 8:** Rep 1987 No 15, sec 30C.","sortOrder":176}],"analysis":{"summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act was originally designed to facilitate a specific, time-limited privatisation program for NSW electricity network assets. However, the high number of amendments over nearly a decade (12 versions between 2015 and 2024) suggests the Act has been repeatedly expanded or modified beyond its original transaction-enabling purpose, likely to address ongoing management of the privatised assets, adjust protections, and respond to unforeseen issues arising from the long-term lease arrangements."},"complexity_factors":["Deals with complex commercial transactions involving major public infrastructure assets worth billions of dollars","Intersects with multiple areas of law: corporate law, administrative law, employment law, energy regulation, and constitutional law","Involves interaction with federal energy market laws and national regulatory frameworks (e.g., National Electricity Law)","Has been amended at least 12 times since 2015, creating a layered and evolving legal framework","Broad ministerial discretion provisions create uncertain legal boundaries","Not all provisions have commenced, meaning parts of the Act are dormant and the full legal picture is incomplete","Involves government-to-private transfer structures (leases rather than outright sales) that are legally intricate","Responsible to the Treasurer rather than an energy-specific minister, reflecting its financial rather than purely regulatory character"],"plain_english_summary":"## Electricity Network Assets (Authorised Transactions) Act 2015 (NSW)\n\n**What is this law about?**\nThis NSW law was created to enable and regulate the transfer (sale or long-term lease) of electricity network infrastructure — think powerlines, poles, substations and the grid that delivers electricity to your home or business — from government ownership to private operators.\n\n**Who does it affect?**\n- **NSW electricity consumers (that's most of us):** The privatisation (or long-term leasing) of these assets affects who runs the poles and wires delivering your power, which can influence service standards and, indirectly, your electricity bills.\n- **Government-owned energy companies** (like Ausgrid and Endeavour Energy): These organisations were the subject of the transactions this law enabled.\n- **Private investors and businesses** who bid for and took over operation of these network assets.\n- **Employees** of the network businesses, as the law included worker protections during the transition.\n\n**Why does it matter to you?**\nThis Act gave the NSW Government the legal authority to carry out a major privatisation program — leasing out the electricity distribution networks (the poles and wires) for 99 years to private companies. It set the rules for how those deals could be structured, what protections applied (e.g., for workers and consumers), and how the money raised had to be spent (on infrastructure like schools and hospitals under the 'Rebuilding NSW' program).\n\n**Key points:**\n- ✅ Authorised the government to enter into long-term leases of electricity assets without needing separate approval for each deal\n- ✅ Set conditions to protect electricity consumers and workers during the changeover\n- ✅ Required proceeds to be invested back into public infrastructure\n- ✅ Gave ministers broad powers to do what was needed to complete the transactions\n- ⚠️ The Act has been amended many times since 2015, suggesting the deals and their ongoing management are complex and evolving\n\n**In plain terms:** This is the legal rulebook that allowed the NSW Government to hand over control of the electricity poles and wires to private companies for up to 99 years, while setting some guardrails to protect the public in the process."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act as presented includes multiple amendment notes and staged commencement provisions indicating that its scope has been adjusted since original enactment. The text records amendments to definitions and citations (s3 amendment notes) and a provision deferring the commencement of Schedule 6 until proclamation (s2(2)). Specific substantive changes are recorded in amendment notes to section 8 (Price Commissioner provisions amended 2023) and in schedules (for example Schedule 3 and Schedule 4 have amendment notes). These in-text amendment annotations show that the statutory scope and certain mechanisms have been modified over time (see s3 notes, s2(2), s8 note, sch 3 and sch 4 amendment notes)."},"complexity_factors":["Broad and recurring delegation of extensive powers to the Treasurer across multiple domains (transaction design, vesting, conversion, directions to agencies and corporations) (see ss13–16, 25–27, 53).","Multiple interlocking calculation and cap rules for private sector interest using fixed asset values and profit/asset-share metrics (s6).","Numerical and operational employment guarantees with defined staffing floors and apprenticeship rules (Schedule 4 cl3, cl15).","Detailed ownership‑restriction regime for floated entities with criminal sanctions, remedial court powers and extensive associative attribution rules (Schedule 6 Parts 1–5).","Numerous cross-references and overrides of other State statutes and regulatory regimes (ss35, 44, 50 and schedules), increasing interpretive complexity.","Special administrative mechanisms (vesting orders, Treasurer certificates, registration authority rules) that operate outside ordinary conveyancing or corporate processes (Schedule 5 cl3, cl9; Schedule 3 cl2).","Regulatory and institutional interactions across several bodies (Treasurer, AER, Price Commissioner, IPART, TCorp, registration authorities) with differing independence and roles (s8, Schedule 4 cl8, s52).","Significant use of delegated legislation and regulations to set key parameters (e.g. maximum ownership level by regulation, definitions, commencement of Schedule 6) (s2(2), Schedule 6 cl1(2))."],"plain_english_summary":"What this law does, in simple terms\n\n- Authorises the State of New South Wales to transfer its electricity network assets (the assets, rights and liabilities of TransGrid, Ausgrid and Endeavour Energy, plus certain designated land) either to private parties or to other public agencies (see s5 and s3). Essential Energy is explicitly excluded (s5(2), s3 note).\n\n- Sets the basic mechanics and limits for private participation: physical network infrastructure may only be transferred to the private sector by lease, the initial lease term cannot exceed 99 years (subject to renewal options), and the aggregate private sector interest in the State’s electricity network assets must not exceed 49% (s5(1)). The Act gives a precise method for calculating that private sector interest using pre-set asset values and defined shares of profits or assets (s6).\n\n- Centralises decision-making and implementation power in the Treasurer. The Treasurer has broad, express powers to decide how authorised transactions occur, to create transaction entities, to give directions to corporations and public sector agencies, to make vesting orders, to grant or direct the grant of licences and other authorisations, and to manage the proceeds (see ss13–16, 18, 25–27, 11). Many procedural matters are left to the Treasurer’s discretion and may be done by order (s57).\n\nWho pays and who receives the money\n\n- Proceeds from transfers to the private sector belong to and are payable directly to the State. The Treasurer directs how transaction proceeds are split between the Restart NSW Fund and a Residual Liabilities Fund; the Treasurer may also approve deductions from proceeds to repay public-sector debt, reimburse taxes or meet transaction-related expenses (s11, s12).\n\nProtections, guarantees and reviews intended to monitor prices and impacts\n\n- The law requires the Treasurer to secure an electricity price guarantee from any authorised private network operator, including a commitment that total network charges for the 2018–19 financial year will be lower than for 2013–14, and to promote efficient investment and compliance with applicable AER schemes (s8(1)). The Treasurer must ask the Price Commissioner for pre-transaction and annual post-transaction reports about likely or actual impacts on network charges, and the Price Commissioner is to be independent of government direction for the content of those reports (s8(2), (4)–(5)).\n\n- The Treasurer must commission an independent review of an earlier Deloitte report (s9) and must commission a post-transaction independent review within 12 months of completion of the last authorised transaction to (a) review the Price Commissioner’s powers and (b) determine whether network charges increased as a result of the authorised transactions (s10).\n\nEmployment and operational rules when assets move\n\n- The Act allows the Treasurer to transfer staff between public sector agencies or to private-sector employers without the transferred employee’s consent; transferred staff keep their prior terms and many employment protections are specified (ss20–22). Schedule 4 sets a 5-year employment-guarantee period (1 July 2015–30 June 2020) with specific rules on salaries, minimum full‑time equivalent staffing levels for each network (numeric staffing floors), restrictions on forced redundancies, maintenance of existing locations and relocation policies, apprenticeship guarantees and other worker protections (Schedule 4).\n\nHow assets, licences and land are handled administratively\n\n- The Treasurer may make vesting orders that have immediate effect to vest assets, rights and liabilities in designated transferees without further transfer instruments and may certify matters to registration authorities (Schedule 5). The Treasurer may direct severance of fixtures from land for transactional purposes (s26), and may direct the grant of licences or other authorisations to new operators, overriding usual administrative requirements where the grant replaces an existing authorisation (s27).\n\nLegal effect and limits on legal remedies\n\n- The Act contains provisions that override or modify other State laws to the extent necessary to carry out authorised transactions (s44). It protects transaction-related actions and disclosures from being treated as breaches of contract, confidence or giving rise to remedies in many circumstances (s48). It also provides that compensation is not payable merely because the Act was enacted or operated (s49), though compensation under transaction arrangements remains possible.\n\nOwnership rules and public-interest safeguards for floated entities\n\n- If a transaction involves an initial public offering, Schedule 6 can impose ownership restrictions (a maximum ownership level set by regulation), require member registers to remain within the State unless the Treasurer agrees, and create record-keeping and information‑gathering obligations. The Schedule creates criminal offences for deliberate acquisitions that would breach ownership limits, gives the Supreme Court powers to make remedial orders, and allows enforcement against directors who knowingly authorise contraventions (Schedule 6).\n\nWho decides, compliance burdens and where discretion lies (key mechanics)\n\n- The Treasurer controls most key choices: the form of transactions; creation, conversion and governance of transaction entities (transaction SOCs, transaction companies, Ministerial Holding Corporations); allocation and deduction of proceeds; directions to agencies and corporations; and certification or determination of assets that fall within the Act (ss13–16, 25, 11, Schedule 5 cl8). This concentrates executive discretion (multiple provisions cited above).\n\n- Compliance burdens fall on authorised network operators (price guarantees, reporting to the Price Commissioner, employment guarantees enforced by IPART (Schedule 4 cl8)), on floated transaction companies (ownership record-keeping and register location, Schedule 6), on public agencies to supply information on request (s8(3)), and on registration authorities to accept Treasurer certificates (Schedule 5 cl9).\n\nCosts, incentives and trade-offs (mechanical consequences rather than judgments)\n\n- The State receives transaction proceeds but can apply them to repay liabilities and fund specified State funds (s11–12). That creates an incentive to prioritise net cash receipts, subject to permitted deductions.\n\n- The 49% cap and lease-only route for network infrastructure (s5) constrain how private capital can be introduced: investors obtain long leases, not freehold, and cannot exceed the specified private share of the asset base as calculated by s6. That affects capital-raising structures and ownership strategies, and interacts with Schedule 6 ownership limits if there is an IPO.\n\n- Employment guarantees (Schedule 4) and minimum staffing levels (Schedule 4 cl3) impose quantifiable operating cost floors on operators for the guarantee period, which may change incentives for cost reductions, outsourcing or staffing models during that period.\n\n- The Treasurer’s broad powers to override or modify statutory processes (licencing, vesting, registration, taxes in some cases) and to issue non‑reviewable certificates in some conversion steps (Schedule 3 cl2(3)) reduce procedural barriers for transactions but increase the extent to which outcomes depend on executive directions (see ss25–28, Schedule 3).\n\nImplementation and legal risk notes grounded in the Act\n\n- The Act expressly displaces or modifies application of other State laws (e.g. State Owned Corporations Act, ES Act, certain taxation rules) where inconsistent (s44, s35, s43), and supplies mechanisms (vesting orders, Treasurer certificates) to achieve immediate effect (Schedule 5). At the same time, the Act preserves the AER regime and requires operators to promote efficient operation and comply with some AER schemes (s8(1)(b)–(c)).\n\n- The Price Commissioner’s reports are to be independent in content (s8(4)), and the Treasurer must commission independent reviews before and after transactions (ss9–10).\n\nKey source citations: s5 (authorisation and limits), s6 (calculation method), s11–12 (proceeds and Residual Liabilities Fund), s13–16, 18 (Treasurer powers and direction), s25–27 and Schedule 5 (vesting orders, licences, severance), s8 (electricity price guarantee and Price Commissioner), Schedule 4 (employment guarantees), Schedule 6 (ownership restrictions on floated companies), s43 (tax treatment), s48–49 (legal protections and compensation)."},"kimi_summary":{"_metrics":{"completionTokens":711},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The legislation appears to have maintained its original scope as a framework for leasing electricity network assets to the private sector with appropriate safeguards. The amendments noted in the text (2016-2024) appear to be technical updates and cross-referencing adjustments rather than substantive expansions of purpose."},"complexity_factors":["Multiple defined terms with nested definitions (e.g., 'electricity network assets' includes 'network infrastructure assets' which has 6 sub-categories plus 'associated equipment' with 9 further items)","Complex calculation methodology for 'private sector interest' involving regulatory asset base values, profit shares, and winding-up entitlements (section 6)","Extensive cross-referencing to other Acts: State Owned Corporations Act 1989, Energy Services Corporations Act 1995, Electricity Supply Act 1995, Corporations Act 2001, Government Sector Finance Act 2018, and multiple others","Conditional commencement provisions (Schedule 6 on ownership restrictions commences by proclamation, not automatic assent)","Multiple transaction structures permitted: direct leases, corporate conversions, establishment of transaction SOCs and transaction companies, vesting orders","Schedule 6 contains elaborate ownership restriction rules with 5 parts, 23 clauses, mathematical formulas for calculating stakes, and deeming provisions for associates and trusts","Employment guarantee provisions in Schedule 4 with complex formulas for calculating full-time equivalent employees and 23 separate protective clauses","Extensive savings and transitional provisions in Schedule 7 dealing with dissolution of statutory corporations, conversion to Ministerial Holding Corporations, and regulatory continuity"],"plain_english_summary":"**What this law does:**\n\nThis Act authorises the NSW Government to lease out major electricity network assets to private companies while keeping majority public ownership. It covers the privatisation of **TransGrid** (transmission), **Ausgrid** and **Endeavour Energy** (distribution) — but **not Essential Energy**.\n\n**Key features:**\n\n- **99-year leases maximum** — the physical infrastructure (power lines, substations, etc.) can only be transferred to private operators via long-term lease, not outright sale\n- **49% private ownership cap** — private sector interest in the state's electricity network assets cannot exceed 49%\n- **Price guarantees** — private operators must guarantee that network charges in 2018-19 will be lower than in 2013-14, and must promote efficient investment\n- **Employment protections** — 5-year job guarantees for existing staff, including no forced redundancies and maintenance of existing pay and conditions\n- **Proceeds management** — money from the leases goes to the **Restart NSW Fund** (for infrastructure) and a **Residual Liabilities Fund** (for future obligations)\n\n**Who it affects:**\n- Electricity workers whose jobs may transfer to private employers\n- NSW electricity consumers (through price guarantees)\n- Private investors bidding for leasehold interests\n- State government agencies managing the transition\n\n**Why it matters:**\nThis was the legal framework for one of NSW's largest infrastructure privatisation programs, designed to raise billions for infrastructure while maintaining public control of the physical assets and protecting consumers and workers during the transition."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/electricity-network-assets-authorised-transactions-act-2015","history":"/api/acts/electricity-network-assets-authorised-transactions-act-2015/history","analysis":"/api/acts/electricity-network-assets-authorised-transactions-act-2015/analysis","conflicts":"/api/acts/electricity-network-assets-authorised-transactions-act-2015/conflicts","importantCases":"/api/acts/electricity-network-assets-authorised-transactions-act-2015/important-cases","documents":"/api/acts/electricity-network-assets-authorised-transactions-act-2015/documents"}}