{"id":"nsw:sl-1998-0672","name":"National Electricity (New South Wales) (Savings and Transitional) Regulation 1998","slug":"national-electricity-new-south-wales-savings-and-transitional-regulation-1998","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"672 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":179188,"registerId":"nsw-nsw:sl-1998-0672-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 Regulation","content":"#### 1 Name of Regulation\n\n1 Name of Regulation\n\n> This Regulation is the [National Electricity (New South Wales) (Savings and Transitional) Regulation 1998](/view/html/inforce/current/sl-1998-0672).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Regulation commences on 13 December 1998.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> In this Regulation:\n> \n> 1995 Act means the [Electricity Supply Act 1995](/view/html/inforce/current/act-1995-094).\n> \n> 1997 Act means the [National Electricity (New South Wales) Act 1997](/view/html/inforce/current/act-1997-020).\n> \n> appointed day means 13 December 1998.\n> \n> protected contract means a contract referred to in clause 6 (1) (a), (b), (c) or (d), not being a contract that has ceased to be a protected contract as referred to in clause 6 (2).\n> \n> Treasurer’s certificate means a certificate issued by the Treasurer in accordance with clause 7.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Notes","content":"#### 4 Notes\n\n4 Notes\n\n> The explanatory note and table of contents do not form part of this Regulation.","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"Preservation of limitations of liability arising under NSW wholesale market for electricity","content":"# Part 2 Preservation of limitations of liability arising under NSW wholesale market for electricity\n\nPart 2 Preservation of limitations of liability arising under NSW wholesale market for electricity","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Transitional arrangements with respect to certain liabilities affecting electricity generators","content":"#### 5 Transitional arrangements with respect to certain liabilities affecting electricity generators\n\n5 Transitional arrangements with respect to certain liabilities affecting electricity generators\n\n> > (1) This clause applies to and in relation to any contract for the supply of electricity that was entered into by Pacific Power or by an electricity generator (within the meaning of the [Energy Services Corporations Act 1995](/view/html/inforce/current/act-1995-095)) before the appointed day, other than a protected contract.\n> \n> > (2) Despite clause 2 of Schedule 2 to the 1997 Act:\n> > \n> > > (a) section 78 of the National Electricity (NSW) Law applies, and\n> > \n> > > (b) section 83 of the [Electricity (Pacific Power) Act 1950](/view/html/repealed/current/act-1950-022) does not apply,\n> > \n> > for the purposes of any contract to which this clause applies and of any proceedings arising out of, or calling into question any provision of, a contract to which this clause applies.\n> \n> > (3) This clause does not affect the operation of clause 2 of Schedule 2 to the 1997 Act with respect to a protected contract.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Protected contracts","content":"#### 6 Protected contracts\n\n6 Protected contracts\n\n> > (1) The following contracts are protected contracts for the purposes of this Regulation:\n> > \n> > > (a) the contract known as the Capral Aluminium Smelter Contract between Delta Electricity and Capral Aluminium Limited (ACN 004 213 692), being the contract that arises from the agreements between those parties (or their predecessors in title) dated 30 March 1966 and 21 June 1993, together with:\n> > > \n> > > > (i) any variations of contract agreed to before the appointed day, and\n> > > \n> > > > (ii) such variations of contract agreed to after the appointed day as are the subject of a Treasurer’s certificate,\n> > \n> > > (b) the contract known as the BHP Port Kembla Slab and Plate Products Contract between Delta Electricity and BHP Steel (AIS) Pty Ltd (ACN 000 019 625), being the contract that arises from the agreements between those parties (or their predecessors in title) dated 24 May 1955, 27 November 1958 and 1 December 1969, together with:\n> > > \n> > > > (i) any variations of contract arising from the Combined Port Kembla and Newcastle Supplementary Agreement No 1 of 1998 between Delta Electricity, BHP Steel (AIS) Pty Ltd (ACN 000 019 625) and The Broken Hill Proprietary Company Limited (ACN 004 028 077) dated 19 June 1998, and\n> > > \n> > > > (ii) any other variations of contract agreed to before the appointed day, and\n> > > \n> > > > (iii) such variations of contract agreed to after the appointed day as are the subject of a Treasurer’s certificate,\n> > \n> > > (c) the contract known as the BHP Newcastle Rod and Bar Products Contract between Delta Electricity and The Broken Hill Proprietary Company Limited (ACN 004 028 077), being the contract that arises from the agreement between those parties (or their predecessors in title) dated 13 August 1959, together with:\n> > > \n> > > > (i) any variations of contract arising from the Combined Port Kembla and Newcastle Supplementary Agreement No 1 of 1998 between Delta Electricity, BHP Steel (AIS) Pty Ltd (ACN 000 019 625) and The Broken Hill Proprietary Company Limited (ACN 004 028 077) dated 19 June 1998, and\n> > > \n> > > > (ii) any other variations of contract agreed to before the appointed day, and\n> > > \n> > > > (iii) such variations of contract agreed to after the appointed day as are the subject of a Treasurer’s certificate,\n> > \n> > > (d) the contract known as the Tomago Aluminium Smelter Contract between Macquarie Generation and Tomago Aluminium Company Pty Ltd (ACN 001 862 228), being the contract that arises from the agreements between those parties (or their predecessors in title) dated 23 August 1979, 27 April 1981 and 23 January 1991, together with:\n> > > \n> > > > (i) any variations of contract agreed to before the appointed day, and\n> > > \n> > > > (ii) such variations of contract agreed to after the appointed day as are the subject of a Treasurer’s certificate.\n> \n> > (2) A protected contract that becomes subject to a variation of contract for which a Treasurer’s certificate has not been issued ceases to be a protected contract:\n> > \n> > > (a) in the case of a variation of contract that extends the period for which the protected contract will remain in force, on the date on which the protected contract would have ceased to be in force but for the variation, and\n> > \n> > > (b) in the case of a variation of contract that is expressed to have effect on and from a specified date, on that specified date, and\n> > \n> > > (c) in any other case, on the date on which the variation of contract is agreed to,\n> > \n> > or, in the case of a variation of contract of a kind referred to in 2 or more of paragraphs (a), (b) and (c), on the earlier or earliest of the dates ascertained in accordance with those paragraphs.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Treasurer’s certificates","content":"#### 7 Treasurer’s certificates\n\n7 Treasurer’s certificates\n\n> > (1) The Treasurer may issue a certificate with respect to any variation of contract that is proposed to be agreed to with respect to a protected contract.\n> \n> > (2) Such a certificate is not to be issued if the Treasurer is of the opinion that the variation of contract:\n> > \n> > > (a) extends the period for which the protected contract will remain in force, or\n> > \n> > > (b) substantially affects the operation of, or rights and liabilities under, the protected contract.","sortOrder":8},{"sectionNumber":"Part 3","sectionType":"part","heading":"Winding up of NSW wholesale market for electricity","content":"# Part 3 Winding up of NSW wholesale market for electricity\n\nPart 3 Winding up of NSW wholesale market for electricity","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Continuation of unamended Act for purposes of winding up","content":"#### 8 Continuation of unamended Act for purposes of winding up\n\n8 Continuation of unamended Act for purposes of winding up\n\n> > (1) Subject to this Part, the provisions of the 1995 Act that are amended or repealed by the 1997 Act (as those provisions were in force immediately before the appointed day) continue to have effect for the purpose only of dealing with matters arising out of the wholesale market for electricity formerly regulated by that Act.\n> \n> > (2) In particular, for the purpose referred to in subclause (1):\n> > \n> > > (a) any authorisation in force under the 1995 Act immediately before the appointed day remains in force:\n> > > \n> > > > (i) subject to the same conditions (whether arising by operation of that Act or otherwise) as those to which it was subject immediately before the appointed day, and\n> > > \n> > > > (ii) despite any condition that purports to terminate the authorisation as a consequence of the commencement of the 1997 Act or the national electricity market referred to in the 1997 Act, and\n> > \n> > > (b) the person who, immediately before the repeal of section 77 of the 1995 Act, was the Market and System Operator under that Act continues to be the Market and System Operator, and\n> > \n> > > (c) any rules, procedures and conditions of wholesale market operation that were in force under section 78 of the 1995 Act immediately before the appointed day continue to have effect in accordance with their terms as if that section had not been repealed, and\n> > \n> > > (d) any powers that, immediately before the appointed day, were exercisable by the Market and System Operator under section 79 of the 1995 Act with respect to the imposition of management fees continue to be exercisable by the Market and System Operator, and\n> > \n> > > (e) any powers that, immediately before the appointed day, were exercisable by the Minister under Schedule 1 to the 1995 Act in connection with a contravention of the requirements of that Act or the regulations under that Act, or the conditions of an authorisation in force under that Act, continue to be exercisable by the Minister, and\n> > \n> > > (f) any right of appeal that, immediately before the appointed day, existed under section 95 of the 1995 Act in connection with a decision by the Minister of the kind referred to in paragraph (e) continues to exist.\n> \n> > (3) The matters in respect of which any management fees referred to in subclause (2) (d) may be charged include:\n> > \n> > > (a) any functions exercised by the Market and System Operator under clause 2A of Schedule 2 to the 1997 Act, and\n> > \n> > > (b) any functions exercised by the Market and System Operator under the rules, procedures and conditions of wholesale market operation referred to in subclause (2) (c).\n> \n> > (4) This clause does not affect the operation of any provision of the 1995 Act other than those referred to in subclause (1).\n> \n> > (5) This clause ceases to have effect on the day on which the Minister causes notice to be published in the Gazette that the System Control Fund, the Market Operations Fund and the Market Settlements Fund have been wound up as referred to in clause 2A of Schedule 2 to the 1997 Act.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Effect of repeal or expiry of rules, procedures and conditions of wholesale market operation","content":"#### 9 Effect of repeal or expiry of rules, procedures and conditions of wholesale market operation\n\n9 Effect of repeal or expiry of rules, procedures and conditions of wholesale market operation\n\n> The repeal or expiry in accordance with their terms of any rules, procedures and conditions of wholesale market operation under section 78 of the 1995 Act:\n> \n> > (a) does not affect their previous operation, or anything duly suffered, done or commenced under them, and\n> \n> > (b) does not affect any right, privilege, obligation or liability acquired, accrued or incurred under them.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Recovery of management fees","content":"#### 10 Recovery of management fees\n\n10 Recovery of management fees\n\n> Section 103 of the 1995 Act applies to the recovery by the Market and System Operator (or by any person on behalf of, or in the name of, the Market and System Operator) of any management fee imposed under section 79 of the 1995 Act, whether before or after the appointed day, in the same way as it applies to the recovery by the Minister of a monetary penalty imposed under that Act.","sortOrder":12},{"sectionNumber":"Part 4","sectionType":"part","heading":"Miscellaneous","content":"# Part 4 Miscellaneous\n\nPart 4 Miscellaneous","sortOrder":13},{"sectionNumber":"11","sectionType":"section","heading":"Modification of IPART Determination No 5.3 of 1997","content":"#### 11 Modification of IPART Determination No 5.3 of 1997\n\n11 Modification of IPART Determination No 5.3 of 1997\n\n> In Determination No 5.3 of 1997 made by the Independent Pricing and Regulatory Tribunal and published in Gazette No 93 of 22 August 1997 at pages 6609–6621, footnote 1 on page 6617 is taken to read “Fees for market operations and ancillary services charged by TransGrid in accordance with the [Electricity Supply Act 1995](/view/html/inforce/current/act-1995-094) or by NEMMCO in accordance with the National Electricity Code.” for the purpose of using factor “F” in the formula for regulating gross margins (as set out on that page) for any period occurring after the appointed day.","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"National electricity market to commence 1.00am New South Wales summer time","content":"#### 12 National electricity market to commence 1.00am New South Wales summer time\n\n12 National electricity market to commence 1.00am New South Wales summer time\n\n> Until 1.00am (New South Wales summer time) on the appointed day:\n> \n> > (a) the 1995 Act, and any other Act amended by the 1997 Act, continue to have effect as if the 1997 Act had not been enacted, and\n> \n> > (b) the National Electricity Law applied by the 1997 Act, the amendments made by the 1997 Act and the savings and transitional provisions effected by the 1997 Act and by this Regulation (this clause excepted) do not have effect.","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Continuation of IPART Determinations Nos 2.2 and 10 of 1996, Nos 5.3 and 5.4 of 1997 and No 6 of 1998","content":"#### 13 Continuation of IPART Determinations Nos 2.2 and 10 of 1996, Nos 5.3 and 5.4 of 1997 and No 6 of 1998\n\n13 Continuation of IPART Determinations Nos 2.2 and 10 of 1996, Nos 5.3 and 5.4 of 1997 and No 6 of 1998\n\n> > (1) Each of the following determinations made by the Independent Pricing and Regulatory Tribunal continues to have effect until the end of 31 January 2000, and is to be read accordingly, despite any provision to the contrary contained in any such determination:\n> > \n> > > (a) Determination No 2.2 of 1996 published in Gazette No 43 of 4 April 1996 at pages 1616–1623, as modified by the determination referred to in paragraph (c),\n> > \n> > > (b) (Repealed)\n> > \n> > > (c) Determination No 5.3 of 1997 published in Gazette No 93 of 22 August 1997 at pages 6609–6621, as modified in accordance with clause 11,\n> > \n> > > (d) Determination No 5.4 of 1997 published in Gazette No 93 of 22 August 1997 at pages 6622–6628, except in so far as it modifies Determination No 10 of 1996 published in Gazette No 1 of 3 January 1997 at pages 29–34,\n> > \n> > > (e) Determination No 6 of 1998 published in Gazette No 171 of 11 December 1998 at pages 9661–9662.\n> \n> > (2) Each of the following determinations made by the Independent Pricing and Regulatory Tribunal continues to have effect until the end of 30 June 2000, and is to be read accordingly, despite any provision to the contrary contained in any such determination:\n> > \n> > > (a) Determination No 10 of 1996 published in Gazette No 1 of 3 January 1997 at pages 29–34, as modified by the determination referred to in paragraph (b),\n> > \n> > > (b) Determination No 5.4 of 1997 (item 4 (Monopoly Fees) excepted) published in Gazette No 93 of 22 August 1997 at pages 6622–6628, to the extent to which it modifies the determination referred to in paragraph (a).\n> \n> > (3) A provision of a determination referred to in subclause (2) ceases to have effect, despite this clause, if the Independent Pricing and Regulatory Tribunal so declares by notice published in the Gazette.\n> \n> **cl 13:** Ins 30.6.1999. Am 28.1.2000.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Transitional arrangements with respect to certain liabilities affecting electricity supply authorities","content":"#### 14 Transitional arrangements with respect to certain liabilities affecting electricity supply authorities\n\n14 Transitional arrangements with respect to certain liabilities affecting electricity supply authorities\n\n> For the purposes of clause 1 (2) and (3) of Schedule 2 to the 1997 Act, 31 January 2000 is prescribed in place of 30 June 1999.\n> \n> **cl 14:** Ins 30.6.1999.","sortOrder":17}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Based on the available metadata, the regulation has remained unchanged since 28 January 2000, suggesting its original transitional scope was narrow and time-limited by design — consistent with a standard savings and transitional instrument that was never intended to evolve beyond its bridging function."},"complexity_factors":["Transitional and savings regulations are inherently cross-referential — they only make sense when read alongside the legislation they are bridging (the National Electricity (New South Wales) Act and the national electricity rules)","The regulation sits within a multi-jurisdictional national electricity framework, requiring understanding of both NSW and Commonwealth-level regulatory architecture","The actual substantive provisions are not present in the provided text, making full analysis impossible and adding interpretive uncertainty","Age of the instrument (1998) means it references legislation and structures that may have since been significantly amended or repealed, complicating practical application"],"plain_english_summary":"This regulation managed the legal transition when New South Wales joined the national electricity market, preserving existing rights and obligations so contracts, licences and proceedings didn’t fall into legal limbo. It primarily affects NSW electricity participants — generators, network operators, retailers and regulators — by bridging old state rules to the new national framework. Publicly available text appears to show only metadata, not substantive provisions."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Regulation is savings and transitional in nature: it preserves existing liability limitations, protects specified long-term contracts (subject to Treasurer certification for later variations) and keeps designated 1995 Act provisions in force for winding-up and fee recovery (see clauses 5, 6, 7 and 8). It also extends limited operation of certain IPART determinations for set periods (clause 13). The instrument does not expand substantive regulatory scope beyond these transitional preservations."},"complexity_factors":["Extensive cross-references to other statutes and instruments (Electricity Supply Act 1995, National Electricity (NSW) Law, National Electricity (New South Wales) Act 1997 and the National Electricity Code).","Lists and identification of specific historic contracts as \"protected contracts\" (clause 6) with bespoke treatment.","Discretion vested in the Treasurer to certify post-commencement contract variations (clause 7) creates case-by-case outcomes.","Temporal and conditional transitional rules: continuation of pre-1998 provisions for winding-up until Ministerial Gazette notice (clause 8) and fixed continuations of IPART determinations to specified dates (clause 13).","Savings and non-derogation drafting (clauses 5, 8 and 9) preserving past rights, liabilities and fee-recovery mechanisms, which requires reading the instrument together with prior regulatory instruments."],"plain_english_summary":"This Regulation, commencing 13 December 1998, preserves pre‑existing liability rules and select contractual protections when New South Wales joined the national electricity market. It keeps certain provisions of the 1995 Act operative for winding‑up the old NSW wholesale market.\n\nAffected parties include electricity generators, NSW supply authorities, named smelter contract counterparties and the Treasurer. Counterparties bear costs or retain rights under surviving contracts; the Treasurer decides whether post‑appointed variations remain protected; specified IPART pricing determinations and fee‑recovery rules continue for limited transition periods."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The Regulation remains tightly focused on its original purpose: managing the specific transitional arrangements for NSW's entry into the national electricity market in December 1998. The amendments noted in clauses 13 and 14 (inserted in 1999 and 2000) merely extended temporary timelines and did not expand the substantive scope beyond the original savings and transitional intent."},"complexity_factors":["Heavy cross-referencing to multiple Acts (1995 Act, 1997 Act, Electricity (Pacific Power) Act 1950, Energy Services Corporations Act 1995) and external documents (IPART determinations, Gazette notices)","Nested conditional logic in clause 6(2) determining when protected contracts cease protection based on multiple overlapping triggers (extension of term, specified effective date, agreement date)","Specific named contracts with detailed identification requirements (ACN numbers, multiple agreement dates, predecessor in title provisions)","Temporal complexity with multiple fixed and contingent expiry dates (appointed day, Gazette notice publication, 31 January 2000, 30 June 2000)","Dual-layer transitional arrangements: preserving old law for some purposes while new law applies to others, with clause 8(4) explicitly limiting the preservation scope"],"plain_english_summary":"This Regulation was made to manage the messy transition when New South Wales switched from its old state-based electricity system to the new national electricity market in December 1998.\n\n**What it does:**\n\n*   **Protects four big industrial electricity contracts** (clauses 6–7): It shields specific long-term supply deals between NSW government generators and major industrial customers (Capral Aluminium, BHP Steel at Port Kembla, BHP at Newcastle, and Tomago Aluminium) from being overridden by new national laws. These \"protected contracts\" keep their special liability limits unless the NSW Treasurer approves changes that extend the contract term or substantially alter rights and liabilities.\n\n*   **Winds up the old NSW wholesale market** (clauses 8–10): It keeps the old *Electricity Supply Act 1995* alive temporarily just to settle outstanding matters from the former state wholesale market—things like finalising accounts, collecting management fees, and handling appeals. Once the relevant funds are wound up and the Minister publishes a notice, this temporary arrangement ends.\n\n*   **Fixes pricing rules** (clauses 11, 13): It tweaks how the Independent Pricing and Regulatory Tribunal (IPART) calculates regulated electricity prices, specifically updating a footnote about market operation fees and extending the life of several IPART pricing determinations until 2000.\n\n*   **Delays the national market start time** (clause 12): It ensures the national electricity market doesn't start until 1:00am NSW summer time on 13 December 1998, keeping the old system running right up to that moment.\n\n*   **Extends liability protection for electricity supply authorities** (clause 14): It pushes back a deadline from June 1999 to January 2000 for certain liability protections affecting public electricity authorities.\n\n**Who it affects:**\n\n*   NSW government-owned electricity generators (Delta Electricity, Macquarie Generation)\n*   Large industrial electricity users with long-term supply contracts\n*   The Market and System Operator managing the wind-down of the old wholesale market\n*   Energy regulators and pricing bodies\n\n**Why it matters:**\n\nWithout this Regulation, the switch to the national electricity market could have torn up decades-old contracts with major employers, created legal chaos over unpaid wholesale market debts, and left pricing regulators without clear authority. It provided legal certainty during a complex handover from state to national control of electricity trading."}},"importantCases":[],"_links":{"self":"/api/acts/national-electricity-new-south-wales-savings-and-transitional-regulation-1998","history":"/api/acts/national-electricity-new-south-wales-savings-and-transitional-regulation-1998/history","analysis":"/api/acts/national-electricity-new-south-wales-savings-and-transitional-regulation-1998/analysis","conflicts":"/api/acts/national-electricity-new-south-wales-savings-and-transitional-regulation-1998/conflicts","importantCases":"/api/acts/national-electricity-new-south-wales-savings-and-transitional-regulation-1998/important-cases","documents":"/api/acts/national-electricity-new-south-wales-savings-and-transitional-regulation-1998/documents"}}