{"id":"national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations-2025","name":"National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025","slug":"national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations","collection":"regulation","jurisdiction":"sa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":236176,"registerId":"sa-national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations-2025-current","compilationNumber":null,"startDate":"2026-04-06","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025","content":"South Australia\nNational Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025\nunder the National Electricity (South Australia) Act 1996\n\nContents\nPart 1—Preliminary\n1\tShort title\n2\tCommencement\n3\tObject\n4\tInterpretation\n5\tModification of related Law and Rules\n6\tGoverning law of a FERM contract\nPart 2—Firm Energy Target and guidelines\n7\tDeclaration of target\n8\tMinister's guidelines\nPart 3—Scheme entities\nDivision 1—Appointment\n9\tAppointment\nDivision 2—Scheme entity functions\n10\tScheme administration functions\n11\tScheme regulation functions\n12\tScheme financial functions\nDivision 3—Related provisions\n13\tEstablishment of entities\n14\tPrinciples\n15\tScheme Regulator may request provision of information\n16\tObligation on regulated entities to provide information\n17\tAnnual reports\n18\tSuspension or removal of scheme entities\n19\tResignation from appointment\n20\tReplacement of Financial Vehicle (novation of contracts)\nPart 4—Fund\n21\tEstablishment of Fund\nPart 5—Commitments and arrangements to achieve Firm Energy Target\nDivision 1—Notice of intention\n22\tNotice of intention\nDivision 2—Negotiated contracts\n23\tNegotiated contracts\nDivision 3—Scheme tenders\n24\tScheme tenders\nDivision 4—Transitional and novated contracts\n25\tTransitional contracts\n26\tDeemed contracts\nPart 6—Contributions\n27\tAnnual contribution determinations\n28\tVariation of contribution determinations\n29\tContribution notices\n30\tInitial contribution notices\nPart 7—FERM cost recovery scheme\n31\tRecovery and allocation of amounts through pricing\n32\tRecords\nPart 8—Related obligations on market participants\n33\tReliability and market liquidity obligations\nPart 9—Civil penalty regime\n34\tCivil penalties\nPart 10—Application of Orderly Exit Management Framework\n35\tApplication of Orderly Exit Management Framework\nPart 11—Miscellaneous\n36\tDelegations\n37\tGuidelines made by Scheme Regulator\n38\tVariation of licence conditions\n39\tApplication of Competition and Consumer Act 2010 of Commonwealth\n40\tCompetition authorisation\n41\tExclusion of operation of Corporations Act\n42\tReview\nLegislative history\n\nPart 1—Preliminary\n1—Short title\nThese regulations may be cited as the National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025.\n2—Commencement\nThese regulations come into operation on the day on which they are made.\n3—Object\nThe primary object of these regulations is to establish a scheme and a fund for the purposes of providing long duration dispatchable electricity capacity to ensure secure, reliable and affordable electricity supply for the State.\n4—Interpretation\n\t(1)\tIn these regulations—\nAct means the National Electricity (South Australia) Act 1996;\nappointing authority, in relation to a scheme entity, means—\n\t(a)\tthe Minister; or\n\t(b)\tthe Scheme Administrator; or\n\t(c)\tanother person or body acting under regulation 9(5),\nthat has appointed the scheme entity under regulation 9;\nauthorised fund expenditures means a matter specified in a particular paragraph under regulation 21(8);\ncapacity commitment means—\n\t(a)\tan indication by a recognised electricity entity in an NOI to provide long duration dispatchable electricity capacity at a specified level over a commitment period; or\n\t(b)\ta commitment by a long duration capacity provider to provide long duration dispatchable electricity capacity at a specified level under a FERM contract;\ncontribution determination means a contribution determination made under regulation 27 (including as varied under regulation 28);\ncontribution notice means a contribution notice under regulation 29;\ndeemed FERM contract means a contract to which regulation 26 applies;\nexisting designated electricity entity means a person—\n\t(a)\twho is registered by AEMO as a Generator or Integrated Resource Provider; or\n\t(b)\twho falls within another category of Registered participants brought within the ambit of this definition by a determination made by the Minister;\nFERM contract means a contract under Part 5 for the provision of long duration dispatchable electricity capacity (including a deemed FERM contract);\nFERM Scheme Amount means—\n\t(a)\tan amount payable by a TNSP under a contribution notice or initial contribution notice; or\n\t(b)\tan amount to be returned to a TNSP under a contribution notice;\nFinancial Vehicle means a person or body appointed to carry out scheme financial functions;\nFirm Energy Target—see regulation 7;\nFund means the Fund established under Part 4;\ninitial contribution notice means an initial contribution notice under regulation 30;\nlong duration capacity provider means a person—\n\t(a)\twho is—\n\t(i)\tan existing designated electricity entity capable of providing long duration dispatchable electricity capacity; or\n\t(ii)\ta new designated electricity entity expected to be capable of providing long duration dispatchable electricity capacity; and\n\t(b)\twho is recognised by the Minister from time to time as being an entity suitable to be a participant in the scheme after taking into account any criteria specified in the Minister's guidelines;\nlong duration dispatchable electricity capacity means dispatchable electricity capacity with a minimum of 8 hours of continuous rated output;\nMinister's guidelines means the guidelines made by the Minister under regulation 8;\nNER means the National Electricity Rules;\nnew designated electricity entity means a person—\n\t(a)\twho is required or intends to be registered by AEMO as a Generator or Integrated Resource Provider (other than, for the purposes of this paragraph, an existing designated electricity entity); or\n\t(b)\twho is recognised by the Minister as being equivalent to a new designated electricity entity on account of the substantial replacement of existing assets;\nNOI means a notice of intention under regulation 22;\nOEM functions means functions under Part 8AA of the National Electricity (South Australia) Law as applying in this jurisdiction;\nrecognised electricity entity means an existing designated electricity entity that falls within the definition of long duration capacity provider;\nregulated entity means a Market Participant or other person to whom the scheme applies but does not include a scheme entity;\nrelevant day, in relation to a transitional FERM contract or a deemed FERM contract—see regulation 25 or 26;\nthe scheme means the scheme established by these regulations (other than Part 10) in relation to the provision of long duration dispatchable electricity capacity;\nscheme administration functions—see regulation 10;\nScheme Administrator means a person or body appointed to carry out scheme administration functions;\nscheme entity means a person or body appointed under regulation 9 (including a person or body appointed under regulation 9(5));\nscheme financial functions—see regulation 12;\nscheme functions means—\n\t(a)\tany scheme administration functions; or\n\t(b)\tany scheme regulation functions; or\n\t(c)\tany scheme financial functions;\nscheme regulation functions—see regulation 11;\nScheme Regulator means a person or body appointed to carry out scheme regulation functions;\nScheme Regulator's guidelines means the guidelines made by the Scheme Regulator under regulation 37;\nscheme regulatory year means a regulatory year in respect of which a TNSP proposes—\n\t(a)\tto recover a FERM Scheme Amount from its Transmission Customers; or\n\t(b)\tto return a FERM Scheme Amount to its Transmission Customers;\nTNSP means a transmission network service provider who owns, controls or operates a transmission system within the State;\ntransitional FERM contract means a contract entered into under regulation 25;\ntransition period means the period commencing on the commencement of these regulations and ending on 31 December 2026.\n\t(2)\tA reference in these regulations to a scheme entity performing a particular function will be taken to include a reference to any scheme entity that has been appointed to perform that function.\n\t(3)\tA reference in these regulations to the performance of a function includes a reference to the exercise of a power or the discharge of a duty related to that function.\n\t(4)\tA reference in these regulations to a Market Customer is a reference to a Market Customer who operates within the South Australian region of the NEM.\n\t(5)\tWords and expressions used in the National Electricity (South Australia) Law or the NER and in these regulations have the same respective meanings in these regulations as they have in that Law or the NER.\n5—Modification of related Law and Rules\nThe National Electricity (South Australia) Law and the NER are modified to the extent necessary to enable the operation of the scheme and the Fund.\n6—Governing law of a FERM contract\nThe governing law of any FERM contract is the law of South Australia.\nPart 2—Firm Energy Target and guidelines\n7—Declaration of target\n\t(1)\tFor the purposes of section 15B(2)(c) of the Act, the Minister may make a declaration prescribing the quantity of long duration dispatchable electricity capacity that the State requires over a specified period (the Firm Energy Target).\n\t(2)\tThe Minister may at any time—\n\t(a)\tvary the Firm Energy Target; or\n\t(b)\testablish a new Firm Energy Target that is to apply in relation to an ensuing specified period.\n\t(3)\tThe Minister must ensure that the Firm Energy Target is published on a website determined by the Minister.\n8—Minister's guidelines\n\t(1)\tFor the purposes of section 15B(2)(c) of the Act, the Minister may make binding guidelines in respect of the scheme, including guidelines with respect to—\n\t(a)\tthe notice of intention process under Part 5 Division 1; and\n\t(b)\tthe conduct of a scheme tender under Part 5 Division 3, including procedural requirements and eligibility and assessment criteria to be used for the purposes of a scheme tender; and\n\t(c)\tcontractual terms, commercial arrangements and other requirements that are to apply to FERM contracts; and\n\t(d)\trequirements relating to a reliability obligation or a market liquidity obligation under Part 8; and\n\t(e)\tany other matter that is—\n\t(i)\tcontemplated by these regulations as being the subject of guidelines for the purposes of the scheme; or\n\t(ii)\tconsidered by the Minister as being necessary or expedient for the purposes of the scheme.\n\t(2)\tThe Minister must ensure that any guidelines made by the Minister under this regulation are published on a website determined by the Minister.\nPart 3—Scheme entities\nDivision 1—Appointment\n9—Appointment\n\t(1)\tThe Minister may appoint a person or body to carry out—\n\t(a)\tscheme administration functions (a Scheme Administrator); or\n\t(b)\tscheme regulation functions (a Scheme Regulator).\n\t(2)\tThe Minister may—\n\t(a)\tappoint 2 or more persons or bodies as a Scheme Administrator or Scheme Regulator; and\n\t(b)\tdivide various functions between persons or bodies appointed under subregulation (1), including so as to allow 1 entity to perform the functions of another entity referred to in that subregulation,\nas provided in the relevant instrument or instruments of appointment or as otherwise determined by the Minister from time to time.\n\t(3)\tThe Scheme Administrator may appoint a person or body to carry out scheme financial functions (the Financial Vehicle) and, in so acting, the Financial Vehicle will be a trustee in—\n\t(a)\tadministering the Fund; and\n\t(b)\tentering into, or becoming a party to, FERM contracts.\n\t(4)\tThe trust arising on account of subregulation (3)—\n\t(a)\tis a statutory trust; and\n\t(b)\tis not subject to the operation of the Trustee Act 1936.\n\t(5)\tIn addition, the appointing authority (being the Minister or the Scheme Administrator) may authorise a person or body appointed as a scheme entity under this regulation to appoint another person or body to undertake any scheme function that has been conferred on the person or body by the initial appointment.\n\t(6)\tA person or body appointed under subregulation (5)—\n\t(a)\tmay perform functions specified in the instrument of appointment that has been conferred on the scheme entity that made the appointment; and\n\t(b)\tin so doing will be—\n\t(i)\tsubject to the direction and control of the scheme entity that made the appointment; and\n\t(ii)\ttaken to be a scheme entity for the purposes of these regulations.\n\t(7)\tIn the performance of a function under these regulations, a person or body appointed under this regulation is not, except as otherwise provided by these regulations, subject to the direction or control of the Minister.\n\t(8)\tThe appointment of a person or body under this regulation may be made on any terms or conditions determined by the relevant appointing authority.\nDivision 2—Scheme entity functions\n10—Scheme administration functions\n\t(1)\tThe scheme administration functions are—\n\t(a)\tto implement and administer the scheme including (without limitation) to establish governance and financial arrangements for the purposes of the scheme; and\n\t(b)\tto conduct a scheme tender at the request of the Minister and in accordance with any relevant Minister's guidelines; and\n\t(c)\tto develop a tender model, processes and systems; and\n\t(d)\tto prepare tender and contractual documentation; and\n\t(e)\tto advise the Financial Vehicle in relation to the contractual management of FERM contracts to the extent considered appropriate by the Scheme Administrator; and\n\t(f)\tat the direction of the Minister, to develop a risk management framework for the scheme to protect the financial interests of South Australian electricity consumers—\n\t(i)\tin connection with the risks associated with FERM contracts; and\n\t(ii)\totherwise in connection with the functions of the Financial Vehicle; and\n\t(g)\tto provide information to the Scheme Regulator in connection with the contribution determination processes associated with the scheme; and\n\t(h)\tany other functions conferred on a Scheme Administrator for the purposes of the scheme.\n\t(2)\tA risk management framework under subregulation (1)(f) is binding on the Financial Vehicle.\n\t(3)\tThe Scheme Administrator may amend or substitute a risk management framework under subregulation (1)(f) from time to time and must do so at the direction of the Minister.\n11—Scheme regulation functions\n\t(1)\tThe scheme regulation functions are—\n\t(a)\tto oversee the operation and performance of the scheme including (without limitation)—\n\t(i)\tto prepare and provide to the Minister an annual report on the operation and performance of the scheme, in accordance with any requirements of the Minister; and\n\t(ii)\tsubject to subregulation (3), to audit the performance of entities performing the scheme administration functions or the scheme financial functions to the extent determined to be necessary, appropriate or advisable by a Scheme Regulator or at the direction of the Minister; and\n\t(iii)\tto review and approve any risk management framework, or any amended or substituted risk management framework, developed for the purposes of the scheme; and\n\t(b)\tto oversee and monitor compliance with the provisions of the scheme by scheme entities and regulated entities; and\n\t(c)\tin relation to Part 5 Division 1—\n\t(i)\tto review a recognised electricity entity's NOI to ensure that the entity has acted in accordance with the Minister's guidelines and other relevant requirements applying under these regulations; and\n\t(ii)\tto obtain further information about a recognised electricity entity about a capacity commitment provided in an NOI (to such extent as is reasonably necessary in the circumstances); and\n\t(iii)\tto publish the results of any process undertaken under regulation 22 (to such extent as the Scheme Regulator thinks fit); and\n\t(d)\tto determine assessable costs under a FERM contract in accordance with the Scheme Regulator's guidelines when considered by the Scheme Regulator to be reasonably required to protect the long-term financial interests of South Australian electricity consumers; and\n\t(e)\tto issue contribution determinations, contribution notices and initial contribution notices for the purposes of the scheme; and\n\t(f)\tto administer the civil penalty scheme established by these regulations; and\n\t(g)\tany other functions conferred on a Scheme Regulator for the purposes of the scheme.\n\t(2)\tAn annual report under subregulation (1)(a) may be included in the Scheme Regulator's annual report under regulation 17.\n\t(3)\tA Scheme Regulator may appoint an independent person to carry out—\n\t(a)\tan audit envisaged by subregulation (1)(a)(ii); or\n\t(b)\tan audit of the activities of a Scheme Regulator under the scheme.\n12—Scheme financial functions\n\t(1)\tThe scheme financial functions are—\n\t(a)\tto administer the Fund, including by managing the receipt and expenditure of funds in accordance with the scheme; and\n\t(b)\tto enter into FERM contracts with long duration capacity providers in circumstances prescribed by these regulations; and\n\t(c)\tto monitor and enforce contractual performance and compliance by long duration capacity providers in respect of FERM contracts; and\n\t(d)\tto provide information to the Scheme Regulator in connection with the contribution determination processes associated with the scheme, which may include—\n\t(i)\tcompiling information that has been provided by other scheme entities for this purpose; and\n\t(ii)\tproviding forecasts of the Financial Vehicle's financial liabilities under the scheme;; and\n\t(e)\tany other functions conferred on the Financial Vehicle under these regulations.\n\t(2)\tThe trust assets of the Financial Vehicle acting as a trustee under these regulations are the Fund and the FERM contracts to which the Financial Vehicle is a party.\n\t(3)\tThe Financial Vehicle must, in connection with the operation of subregulation (1)(c), notify the Scheme Regulator if the Financial Vehicle becomes aware that a long duration capacity provider has failed to comply with a capacity commitment under a FERM contract.\nDivision 3—Related provisions\n13—Establishment of entities\nThe Minister may, for the purposes of the scheme, establish a body (including a company established under the Corporations Act 2001 of the Commonwealth) that may be appointed as a scheme entity.\n14—Principles\nIn the performance of a function under these regulations, a scheme entity must—\n\t(a)\tact independently and in the long-term financial interests of South Australian electricity consumers; and\n\t(b)\tact in a commercially reasonable and prudent way.\n15—Scheme Regulator may request provision of information\n\t(1)\tThe Scheme Regulator may, by written notice, request a prescribed entity to give the Scheme Regulator information the Scheme Regulator reasonably requires for the performance of its scheme regulation functions.\n\t(2)\tA notice under this regulation may be in a form determined by the Scheme Regulator.\n\t(3)\tA prescribed entity must comply with a request under this regulation within a period specified by the Scheme Regulator in the notice.\n\t(4)\tNothing in this regulation limits or derogates from—\n\t(a)\tany power under another law to require the provision of information; or\n\t(b)\tany other requirement under another law relating to the provision of information.\n\t(5)\tIn this regulation—\nprescribed entity means—\n\t(a)\tthe Scheme Administrator or Financial Vehicle; or\n\t(b)\ta regulated entity.\n16—Obligation on regulated entities to provide information\n\t(1)\tA prescribed entity must give to the Scheme Regulator, in the manner and form required by the Scheme Regulator, information relating to the compliance of the prescribed entity with the requirements of the scheme.\n\t(2)\tNothing in this regulation limits or derogates from—\n\t(a)\tany other power under another law to require the provision of information; or\n\t(b)\tany other requirement under another law relating to the provision of information.\n\t(3)\tIn this regulation—\nprescribed entity means—\n\t(a)\tthe Scheme Administrator or Financial Vehicle; or\n\t(b)\ta regulated entity.\n17—Annual reports\n\t(1)\tEach scheme entity must prepare an annual report.\n\t(2)\tSubject to this regulation, an annual report—\n\t(a)\tmust be prepared by 31 August in each year; and\n\t(b)\tmust report on the activities of the scheme entity for the financial year ending on the preceding 30 June; and\n\t(c)\tmust include any other information, or provide a report in relation to any other matter, specified by the Minister's guidelines for inclusion in an annual report; and\n\t(d)\texcept in the case of the Scheme Regulator—must, immediately after it has been finalised by the scheme entity, be furnished to the Scheme Regulator.\n\t(3)\tThe Scheme Regulator must incorporate the annual reports received under subregulation (2)(d) into a consolidated annual report, which will include the Scheme Regulator's annual report, and furnish it to the Minister by 30 November, or another date determined or agreed by the Minister, in each year.\n\t(4)\tThe Minister must ensure that an annual report furnished to the Minister under this regulation is published on a website determined by the Minister.\n18—Suspension or removal of scheme entities\n\t(1)\tThe appointing authority may, by notice in writing to a scheme entity, suspend or terminate the appointment of the scheme entity under this Part.\n\t(2)\tAn appointing authority may not take action against a scheme entity under subregulation (1) unless the appointing authority is satisfied, on the basis of an audit that has been undertaken under regulation 11(1)(a)(ii), that the scheme entity has, in the performance of its functions, displayed incompetence, misconduct or incapacity to act under these regulations.\n\t(3)\tBefore suspending or terminating the appointment of a scheme entity under this regulation, the appointing authority must—\n\t(a)\tadvise the scheme entity in writing that action under this regulation to suspend or terminate the appointment is being contemplated and the basis on which this course of action is being considered; and\n\t(b)\tprovide the scheme entity with a reasonable opportunity to make submissions and consider the submissions received.\n\t(4)\tNothing in this regulation limits the operation of regulation 9.\n19—Resignation from appointment\nA scheme entity may resign from an appointment under this Part by providing 6 months notice to the appointing authority or as agreed to by the appointing authority.\n20—Replacement of Financial Vehicle (novation of contracts)\n\t(1)\tThis regulation applies if there is a change in the person or body appointed as the Financial Vehicle (a relevant change).\n\t(2)\tA FERM contract to which the Financial Vehicle is a party will, on the day on which a relevant change occurs (the relevant day), be taken to be a contract between the person or body which becomes the Financial Vehicle (the relevant entity) and the other party to the contract at that time.\n\t(3)\tIn connection with subregulation (2) but subject to subregulation (4), on and from the relevant day—\n\t(a)\tthe rights and liabilities of the person who has ceased to be the Financial Vehicle (the former party) under the contract vest in and attach to the relevant entity as the Financial Vehicle in substitution for the former party; and\n\t(b)\tthe former party is wholly released and discharged from the contract; and\n\t(c)\ta reference in the contract to the former party as a party to the contract will be taken to be a reference to the relevant entity as a party to the contract.\n\t(4)\tSubregulation (3) operates subject to any agreement between the former party and the relevant entity about rights or liabilities, or other relevant matters, under a contract to which this regulation applies.\n\t(5)\tThe former party must arrange for any relevant trust assets to be to be transferred to the relevant entity in connection with a relevant change and the operation of this regulation.\nPart 4—Fund\n21—Establishment of Fund\n\t(1)\tA fund is established for the purposes of the scheme (the Fund).\n\t(2)\tThe Fund will be administered by the Financial Vehicle.\n\t(3)\tThe Fund must be kept at an ADI.\n\t(4)\tThe Fund will consist of—\n\t(a)\tany money paid by a TNSP under a contribution notice or an initial contribution notice; and\n\t(b)\tany money paid by a long duration capacity provider under a FERM contract; and\n\t(c)\tany money advanced by a scheme entity for payment into the Fund; and\n\t(d)\tany money advanced by the Treasurer for payment into the Fund; and\n\t(e)\tany money appropriated by Parliament for payment into the Fund; and\n\t(f)\tany money received as voluntary contributions to the Fund made by a person or body; and\n\t(g)\tany amount paid as a civil penalty under regulation 34; and\n\t(h)\tincome and accretions from investment of money from the Fund; and\n\t(i)\tother money paid into the Fund under or for the purposes of these regulations.\n\t(5)\tMoney advanced under subregulation (4)(c) or (d) may be in the nature of a loan.\n\t(6)\tA loan under subregulation (4)(d) may be made to the Financial Vehicle, or on some other basis determined by the Treasurer.\n\t(7)\tA loan may be made on any terms and conditions—\n\t(a)\tagreed between the relevant parties; or\n\t(b)\tdetermined by the Treasurer.\n\t(8)\tThe Fund will be applied towards—\n\t(a)\tpayments to a long duration capacity provider under a FERM contract; and\n\t(b)\tmoney otherwise required to meet the financial liabilities of the Financial Vehicle in respect of scheme financial functions; and\n\t(c)\tcosts incurred by scheme entities in the performance of their functions under these regulations, including costs associated with the administration and implementation of the scheme, to the extent authorised by the Minister; and\n\t(d)\tcosts incurred by the Minister in paying a scheme entity to act under these regulations; and\n\t(e)\ta FERM Scheme Amount payable to a TNSP; and\n\t(f)\tpayments due under the terms or conditions of a loan under this regulation; and\n\t(g)\tthe repayment of any money advanced or applied by the Treasurer, the Minister, an administrative unit or other State Government authority for the purposes of these regulations; and\n\t(h)\tother costs associated with the implementation of the scheme authorised by the Minister; and\n\t(i)\tother money required to be paid from the Fund under these regulations.\n\t(9)\tSubject to subregulation (10), a payment of money under this regulation may include—\n\t(a)\tthe reimbursement of an amount that has already been paid; and\n\t(b)\ta payment towards any liability or costs that have already been incurred; and\n\t(c)\ta payment to a third party in connection with the operation or effect of these regulations.\n\t(10)\tNothing in this regulation allows—\n\t(a)\tthe payment of money in respect of a liability incurred before the commencement of these regulations; or\n\t(b)\tthe payment of money into, or the application of money from, the Fund in connection with OEM functions\n\t(11)\tAny money not immediately required for the purposes of the Fund may be invested by the Financial Vehicle in any form of investment that is consistent with the Financial Vehicle's responsibility to act in a prudent way and that is authorised by the Minister for the purposes of this subregulation.\nPart 5—Commitments and arrangements to achieve Firm Energy Target\nDivision 1—Notice of intention\n22—Notice of intention\n\t(1)\tThe Minister may direct the Scheme Regulator to issue a request (an NOI request) to recognised electricity entities to submit a notice of intention (an NOI) to the Scheme Regulator in accordance with this regulation.\n\t(2)\tA recognised electricity entity who receives an NOI request must submit an NOI within the time specified in the NOI request and in accordance with any relevant requirements specified by the Minister's guidelines.\n\t(3)\tAn NOI must—\n\t(a)\tbe submitted in a form specified by the Minister's guidelines; and\n\t(b)\tin respect of a period specified in the NOI request (a commitment period) indicate—\n\t(i)\tthe recognised electricity entity's intention in respect of the provision of long duration dispatchable electricity capacity; and\n\t(ii)\tthe level of long duration dispatchable electricity capacity that the recognised electricity entity intends to provide in the NEM during the commitment period; and\n\t(c)\tinclude any other information specified by the Minister's guidelines.\n\t(4)\tA recognised electricity entity who has indicated an intention to provide long duration dispatchable electricity capacity in the NEM over the relevant commitment period must provide that capacity during that commitment period at the level indicated in the NOI.\n\t(5)\tThe Scheme Regulator may exempt a recognised electricity entity from the operation of subregulation (4) after taking into account any provision made by the Minister's guidelines.\n\t(6)\tA recognised electricity entity must, by notice in writing to the Scheme Regulator—\n\t(a)\trevise an NOI that has been submitted under this regulation if the entity has indicated in the NOI that the entity intends to withdraw from or exit the NEM or otherwise cease to provide long duration dispatchable electricity capacity during the commitment period to which the NOI relates but then changes its plans in this regard; or\n\t(b)\tseek the Scheme Regulator's approval to revise an NOI that has been submitted under this regulation if the entity wishes to change the level of long duration dispatchable electricity capacity that the recognised electricity entity intends to provide in the NEM during the relevant commitment period.\n\t(7)\tThe Scheme Regulator must provide a report to the Minister with respect to—\n\t(a)\tthe NOIs submitted by recognised electricity entities under this regulation; or\n\t(b)\tany revisions made under subregulation (6).\nDivision 2—Negotiated contracts\n23—Negotiated contracts\n\t(1)\tThis regulation applies if—\n\t(a)\ta recognised electricity entity has indicated in an NOI that the entity intends to withdraw from or exit the NEM or otherwise cease to provide long duration dispatchable electricity capacity during the commitment period to which the NOI relates; or\n\t(b)\ta recognised electricity entity provides advice that the entity is, or is expected to be, in breach of a capacity commitment indicated in an NOI.\n\t(2)\tThe Minister may, on account of the circumstances specified in subregulation (1), direct the Scheme Administrator to enter into negotiations with the recognised electricity entity for the provision of long duration dispatchable electricity capacity.\n\t(3)\tThe Scheme Administrator may, at the end of negotiations under subregulation (2) and after taking into account any requirements specified by the Minister's guidelines or in a direction of the Minister under this regulation, and after consulting with the Minister, recommend to the Financial Vehicle that a contract be entered into with the recognised electricity entity for the provision of long duration dispatchable electricity capacity.\n\t(4)\tThe Financial Vehicle may, on the basis of a recommendation under subregulation (3), enter into a contract with the recognised electricity entity for the provision of long duration dispatchable electricity capacity.\n\t(5)\tThe Financial Vehicle must ensure that any contract entered into under this regulation is consistent with any relevant requirements or terms specified by the Minister's guidelines or in a direction of the Minister under this regulation.\n\t(6)\tA recognised electricity entity who is a party to a contract under this regulation must comply with a capacity commitment specified in the contract in accordance with the terms of the contract.\n\t(7)\tIf a recognised electricity entity enters into a contract under this regulation—\n\t(a)\tany capacity commitment under the relevant NOI ceases to apply; and\n\t(b)\tthe recognised electricity entity will be taken not to have breached any capacity commitment under the NOI.\nDivision 3—Scheme tenders\n24—Scheme tenders\n\t(1)\tThe Minister may from time to time direct the Scheme Administrator to undertake a competitive tender process to assist in meeting the Firm Energy Target or otherwise for the purposes of the scheme.\n\t(2)\tIn connection with subregulation (1)—\n\t(a)\tthe tender process must be undertaken in accordance with any relevant requirements specified by the Minister's guidelines or in a direction of the Minister under this regulation; and\n\t(b)\ta long duration capacity provider who meets any eligibility criteria specified by the Minister's guidelines or in a direction of the Minister under this regulation is eligible to participate in the tender process; and\n\t(c)\ta long duration capacity provider participating in the tender process must submit a response and otherwise act in accordance with any relevant requirements specified by the Minister's guidelines or in a direction of the Minister under this regulation; and\n\t(d)\tvarious types of contracts may be offered as a result of a tender process, as provided by the Minister's guidelines or in a direction of the Minister under this regulation.\n\t(3)\tThe Scheme Administrator may, at the conclusion of the tender process and after taking into account any requirements specified by the Minister's guidelines or in a direction of the Minister under this regulation, enter into negotiations with any successful tenderer for the provision of long duration dispatchable electricity capacity.\n\t(4)\tThe Scheme Administrator may, after taking into account any requirements specified by the Minister's guidelines or in a direction of the Minister under this regulation, and after consulting with the Minister, recommend to the Financial Vehicle that a contract be entered into with the relevant entity for the provision of long duration dispatchable electricity capacity.\n\t(5)\tThe Financial Vehicle may, on the basis of a recommendation under subregulation (4), enter into a contract with the relevant entity for the provision of long duration dispatchable electricity capacity.\n\t(6)\tA long duration capacity provider who is a party to a contract under this regulation must comply with a capacity commitment specified in the contract in accordance with the terms of the contract.\n\t(7)\tThe Scheme Administrator must, at the conclusion of a tender process undertaken under this regulation, publish a notice setting out the outcomes of the tender process in accordance with the Minister's guidelines or in a direction of the Minister under this regulation.\nDivision 4—Transitional and novated contracts\n25—Transitional contracts\n\t(1)\tThe Minister may, during the transition period, enter into a contract with 1 or more long duration capacity providers to provide long duration dispatchable electricity capacity in order to assist in meeting the Firm Energy Target or otherwise for the purposes of the scheme.\n\t(2)\tA contract entered into under this regulation will be for a term agreed between the Minister and the long duration capacity provider (which may be a term that extends beyond the end of the transition period).\n\t(3)\tA contract entered into under this regulation will, on a day determined by the Minister (the relevant day), be taken to be a contract between the Financial Vehicle and the long duration capacity provider who is the other party to the contract.\n\t(4)\tIn connection with subregulation (3) but subject to subregulation (5), on and from the relevant day—\n\t(a)\tthe rights and liabilities of the Minister under the contract vest in and attach to the Financial Vehicle in substitution for the Minister; and\n\t(b)\tthe Minister is wholly released and discharged from the contract; and\n\t(c)\ta reference in the contract to the Minister as a party to the contract will be taken to be a reference to the Financial Vehicle as a party to the contract.\n\t(5)\tSubregulation (4)(a) and (b) do not apply to or in relation to a right or liability of the Minister specified by the Minister by notice in writing to the Financial Vehicle and the other party to the contract (and the Minister is not released or discharged from any such liability).\n\t(6)\tThe parties to a contract entered into under this regulation may vary or extend the contract, including after the end of the transition period, subject to the qualification that, on and from the relevant day, the Financial Vehicle must consult with the Minister before a variation or extension (if any) is made.\n\t(7)\tA long duration capacity provider who is a party to a contract under this regulation must comply with a capacity commitment specified in the contract in accordance with the terms of the contract.\n\t(8)\tSubregulation (7) does not apply to any capacity commitment excluded from the operation of that subregulation by the Minister under the terms of the contract.\n26—Deemed contracts\n\t(1)\tThis regulation applies to any contract between the Minister and another party for the provision of long duration dispatchable electricity capacity entered into before the commencement of these regulations which is declared by the Minister, by notice in the Gazette, to be a contract that is subject to the operation of this section (including such a contract as varied or extended at any time).\n\t(2)\tAn existing designated electricity entity who is a party to a contract to which this regulation applies is taken to be a long duration capacity provider for so long as they remain a party to the contract.\n\t(3)\tA contract to which this regulation applies will, on a day determined by the Minister (the relevant day), be taken to be a contract between the Financial Vehicle and the existing designated electricity entity who is the other party to the contract.\n\t(4)\tIn connection with subregulation (3) but subject to subregulation (5), on and from the relevant day—\n\t(a)\tthe rights and liabilities of the Minister under the contract vest in and attach to the Financial Vehicle in substitution for the Minister; and\n\t(b)\tthe Minister is wholly released and discharged from the contract; and\n\t(c)\ta reference in the contract to the Minister as a party to the contract will be taken to be a reference to the Financial Vehicle as a party to the contract.\n\t(5)\tSubregulation (4)(a) and (b) do not apply to or in relation to—\n\t(a)\ta liability incurred by the Minister before the commencement of these regulations; or\n\t(b)\ta right or liability specified by the Minister by notice in writing to the Financial Vehicle and the other party to the contract,\n(and the Minister is not released or discharged from any such liability).\n\t(6)\tThe parties to a contract to which this regulation applies may vary or extend the contract, subject to the qualification that, on and from the relevant day, the Financial Vehicle must consult with the Minister before a variation or extension (if any) is made.\n\t(7)\tAn existing designated electricity entity who is a party to a contract to which this regulation applies must comply with a capacity commitment specified in the contract in accordance with the terms of the contract.\n\t(8)\tSubregulation (7) does not apply to any capacity commitment excluded from the operation of that subregulation by the Minister under the terms of the contract.\nPart 6—Contributions\n27—Annual contribution determinations\n\t(1)\tThe Scheme Regulator must, before 1 March in each year, in respect of each TNSP, make a determination (a contribution determination) as to the amount of money that is to be paid into or out of the Fund for the following regulatory year (the relevant regulatory year).\n\t(2)\tA contribution determination must specify—\n\t(a)\tthe amount (if any) that is to be recovered from each TNSP for the relevant regulatory year; and\n\t(b)\tthe amount (if any) that is to be returned to each TNSP for the relevant regulatory year; and\n\t(c)\ta minimum prudent cash balance to be retained in the Fund.\n\t(3)\tIn making a contribution determination, the Scheme Regulator—\n\t(a)\twill consult with the scheme entities to the extent specified by the Scheme Regulator's guidelines; and\n\t(b)\tmust take into account the following:\n\t(i)\tthe need to limit the variability in contribution determinations within a regulatory year (if relevant);\n\t(ii)\tthe need to limit the variability in contribution determinations from year to year;\n\t(iii)\tthe equitable allocation of amounts payable under the contribution determination between TNSPs (after applying any principles, methodologies or approaches specified by the Scheme Regulator's guidelines);\n\t(iv)\tthe need for the Financial Vehicle to be able to meet its liabilities as they fall due;\n\t(v)\tthe extent to which there is surplus money in the Fund after taking into account payments that must be made from the Fund in relation to the relevant regulatory year;\n\t(vi)\tinformation provided by the other scheme entities in connection with the making of the determination; and\n\t(c)\twill take into account any other matter specified in the Scheme Regulator's guidelines; and\n\t(d)\tmay take into account any other matter considered relevant by the Scheme Regulator.\n\t(4)\tTo the extent to which subregulation (3)(b)(v) applies, the Scheme Regulator may apply (in whole or in part) a surplus by doing 1 or both of the following:\n\t(a)\treducing the amount payable by a TNSP under the scheme in a particular regulatory year;\n\t(b)\treturning an amount to a TNSP in a particular regulatory year,\nwith any amount under this subregulation being applied on an equitable basis between the TNSPs to which the scheme applies (and after applying any principles, methodologies or approaches specified by the Scheme Regulator's guidelines).\n\t(5)\tThe extent to which the Scheme Regulator acts under subregulation (4) is at the discretion of the Scheme Regulator having regard to the minimum prudent cash balance to be retained in the Fund and any other matter considered relevant by the Scheme Regulator.\n\t(6)\tThe Scheme Regulator may require a TNSP to provide information specified by the Scheme Regulator for the purposes of making a contribution determination.\n\t(7)\tA TNSP must comply with a request under subregulation (6) within a period specified by the Scheme Regulator.\n\t(8)\tThe Scheme Regulator must ensure that a contribution determination made under this regulation is published on a website determined by the Scheme Regulator.\n28—Variation of contribution determinations\n\t(1)\tThe Scheme Regulator may, by further determination, vary a contribution determination if it appears to the Scheme Regulator—\n\t(a)\tthat the Financial Vehicle will not be able to meet its liabilities as they fall due; or\n\t(b)\tthat the cash balance of the Fund has fallen, or is likely to fall, below the minimum prudent cash balance specified in the contribution determination.\n\t(2)\tThe Scheme Regulator must ensure that a contribution determination, as varied under this regulation, is published on a website determined by the Scheme Regulator.\n29—Contribution notices\n\t(1)\tThe Scheme Regulator may, after making a contribution determination, by written notice served on a TNSP (a contribution notice), provide advice about the effect of the contribution determination on the TNSP.\n\t(2)\tA contribution notice must specify—\n\t(a)\tthe amount (if any) to be paid by the TNSP under the contribution determination (which may include the amount being paid in instalments); and\n\t(b)\tthe amount of money (if any) that is to be returned to the TNSP; and\n\t(c)\tthe date or dates by which any payment must be made by the TNSP; and\n\t(d)\tthe date or dates by which any money that is to be returned to the TNSP must be paid; and\n\t(e)\tthe way in which each payment must be made; and\n\t(f)\tany other matter specified in the Scheme Regulator's guidelines.\n\t(3)\tA TNSP must comply with the requirements of a contribution notice.\n\t(4)\tA payment by a TNSP under a contribution notice must be made to the Financial Vehicle for payment into the Fund.\n\t(5)\tA payment to a TNSP under a contribution notice must be made by the Financial Vehicle from money standing to the credit of the Fund.\n\t(6)\tThe amount to be paid by a TNSP under a contribution notice is recoverable by the Financial Vehicle as a debt in a court of competent jurisdiction (and once recovered is payable into the Fund).\n\t(7)\tIf the Scheme Regulator has varied a contribution determination under regulation 28, this may be reflected by the variation of a contribution notice or by the issuing of a new or additional contribution notice.\n30—Initial contribution notices\n\t(1)\tThe Scheme Regulator must, at the direction of the Minister, by 1 or more written notices served on a TNSP (initial contribution notices), require the TNSP to pay an amount in order to—\n\t(a)\tmake payments to long duration capacity providers who are required under a transitional FERM contract or deemed FERM contract to provide long duration dispatchable electricity capacity;\n\t(b)\tcover the costs of the administration and implementation of the scheme during the transition period;\n\t(c)\tenable a minimum prudent cash balance to be established or maintained in the Fund.\n\t(2)\tAn initial contribution notice must specify—\n\t(a)\tthe amount to be paid by the TNSP (which may include the amount being paid in instalments); and\n\t(b)\tthe date or dates by which a payment must be made by the TNSP; and\n\t(c)\tthe way in which each payment must be made; and\n\t(d)\tany other matter specified by the Scheme Regulator's guidelines.\n\t(3)\tIn determining the requirements to be included in an initial contribution notice, the Scheme Regulator—\n\t(a)\tmust take into account the following:\n\t(i)\tthe equitable allocation of amounts payable between TNSPs (after applying any principles, methodologies or approaches specified by the Scheme Regulator's guidelines); and\n\t(ii)\tthe need for the Financial Vehicle to be able to meet its liabilities as they fall due; and\n\t(b)\tmay take into account any other matter considered relevant by the Scheme Regulator.\n\t(4)\tA TNSP must comply with the requirements of an initial contribution notice.\n\t(5)\tA payment by a TNSP under an initial contribution notice must be paid to the Financial Vehicle for payment into the Fund.\n\t(6)\tThe amount to be paid by a TNSP under an initial contribution notice is recoverable by the Financial Vehicle as a debt in a court of competent jurisdiction (and once recovered is payable into the Fund).\n\t(7)\tAn initial contribution notice may be issued under this regulation before a contribution determination is made under regulation 27.\n\t(8)\tDespite a preceding subregulation, the Minister may issue an initial contribution notice under this regulation instead of the Scheme Regulator if the Minister so determines and in such a case, for the purposes of subregulation (3)—\n\t(a)\ta reference to the Scheme Regulator will be taken to include a reference to the Minister; and\n\t(b)\tthe Minister may apply any principles, methodologies or approaches determined by the Minister rather than as specified by the Scheme Regulator's guidelines.\nPart 7—FERM cost recovery scheme\n31—Recovery and allocation of amounts through pricing\n\t(1)\tWhen a TNSP is determining prices for a scheme regulatory year in accordance with the requirements of the NER, the TNSP must—\n\t(a)\trecover a FERM Scheme Amount from Transmission Customers; or\n\t(b)\treturn a FERM Scheme Amount to Transmission Customers,\nor both.\n\t(2)\tA FERM Scheme Amount (in whole or in part) must be passed on or returned in a scheme regulatory year by adjusting, in addition to the adjustment under clause 6A.23.3(h) of the NER, the annual service revenue requirement for prescribed common transmission services by adding or subtracting the FERM Scheme Amount as relevant).\n\t(3)\tAn amount—\n\t(a)\tto be recovered from Transmission Customers in respect of a FERM Scheme Amount; or\n\t(b)\tto be returned to Transmission Customers in respect of a FERM Scheme Amount,\nwill be incorporated into the TNSP's prices to be charged for prescribed common transmission services for each scheme regulatory year, as published by the TNSP in accordance with clause 6A.24.2(c) of the NER for the following financial year.\n\t(4)\tIf—\n\t(a)\ta TNSP receives an initial contribution notice; or\n\t(b)\ta contribution notice is varied or a new or additional contribution notice is issued under regulation 29(7),\nthe TNSP may republish its prices for prescribed common transmission services in order to recover the FERM Scheme Amount under the relevant notice in the same scheme regulatory year, including where the prices for prescribed common transmission services have already been determined for that scheme regulatory year in accordance with the requirements of the NER.\n\t(5)\tThe TNSP must adjust the amount that would otherwise be recovered from or returned to Transmission Customers in a scheme regulatory year in respect of a FERM Scheme Amount to account for any over or under recovery of the FERM Scheme Amount in the previous scheme regulatory year.\n\t(6)\tAdjustments under subregulation (5) must be calculated by the TNSP so as to ensure that there is no systemic over or under recovery over time.\n\t(7)\tIn order to comply with subregulation (6), the TNSP must, subject to any requirements in the Scheme Regulator's guidelines, ensure that the TNSP is able, as relevant, to—\n\t(a)\trecover from Transmission Customers no more or no less than the FERM Scheme Amounts it incurs; and\n\t(b)\treturn to Transmission Customers no more or no less than the FERM Scheme Amounts it receives; and\n\t(c)\tadjust for the time cost of money based on the allowed rate of return in the relevant transmission determination of the relevant scheme regulatory year.\n\t(8)\tFor the avoidance of doubt, a FERM Scheme Amount is to be treated as outside the TNSP's maximum allowed revenue under clause 6A.3 of the NER.\n\t(9)\tNothing in this regulation prevents a Co-ordinating Network Service Provider from recovering a FERM Scheme Amount on behalf of a TNSP in accordance with the NER.\n32—Records\n\t(1)\tA TNSP must keep records of the manner in which it has—\n\t(a)\trecovered a FERM Scheme Amount; and\n\t(b)\treturned a FERM Scheme Refund Amount; and\n\t(c)\tcalculated an adjustment for over and under recovery.\n\t(2)\tA TNSP must keep any other records or information required by the Scheme Regulator's guidelines.\n\t(3)\tA TNSP must, at the request of the Scheme Regulator, provide records or information kept for the purposes of this regulation within a period specified by the Scheme Regulator.\nPart 8—Related obligations on market participants\n33—Reliability and market liquidity obligations\n\t(1)\tTo support or facilitate the scheme's purpose—\n\t(a)\ta Market Customer is required to act in accordance with any reliability obligation; and\n\t(b)\ta recognised electricity entity, or a new designated electricity entity who is a party to a contract under regulation 24, is required to act in accordance with any market liquidity obligation.\n\t(2)\tFor subregulation (1)—\n\t(a)\tthe reliability obligation is an obligation to undertake certain contracting activities, and to take related steps, in the NEM by purchasing a certain number of contracts, or having a certain net contracting position, over a particular period, in accordance with requirements specified by the Minister's guidelines; and\n\t(b)\tthe market liquidity obligation is an obligation to undertake certain contracting activities, and to take related steps, in the NEM by offering a certain number of contracts, or having a certain net contracting position, over a particular period, in accordance with requirements specified by the Minister's guidelines.\n\t(3)\tThe Minister's guidelines may (without limitation) may make provision for—\n\t(a)\tthe application of an obligation as it applies to certain Market Customers, recognised electricity entities, or new designated electricity entities who are parties to contracts under regulation 24, or in relation to certain contracts or contracting positions; and\n\t(b)\tthe nature of an obligation; and\n\t(c)\tthe transfer of an obligation to another a person; and\n\t(d)\tany other matter that is considered by the Minister as being necessary or expedient for the purposes of this regulation.\n\t(4)\tThe Minister may—\n\t(a)\tby notice in writing to a person who would otherwise be required to comply with an obligation under this regulation and to the Scheme Regulator, exempt the person from the need to comply with the obligation; and\n\t(b)\tby subsequent notice in writing to the relevant person and to the Scheme Regulator, revoke an exemption under this subregulation.\n\t(5)\tThe Scheme Regulator's guidelines may (without limitation) make provision for reporting requirements in connection with the operation of this regulation.\n\t(6)\tA person who is required to comply with an obligation under this regulation must comply with any reporting requirements that apply in relation to the person under subregulation (5).\nPart 9—Civil penalty regime\n34—Civil penalties\n\t(1)\tFor the purposes of section 15B(2)(g) of the Act, this regulation makes provision for civil penalties in connection with the scheme.\n\t(2)\tThe provisions of the National Electricity (South Australia) Law (the Law) that relate to the creation and imposition of civil penalties are applied for the purposes of the scheme with the following modifications:\n\t(a)\tsection 2AA of the Law (as it applies under this regulation) is modified so that a civil penalty provision includes a relevant regulation, and the other provisions of the Law that refer to a civil penalty provision will be taken to include a reference to a relevant regulation;\n\t(b)\tsection 2AB of the Law (as it applies under this regulation) is modified so that—\n\t(i)\tthe designated tier 1 regulations are taken to be civil penalty provisions prescribed by the Regulations under section 2AB(1)(c); and\n\t(ii)\tthe designated tier 2 regulations are taken to be civil penalty provisions prescribed by the Regulations under section 2AB(1)(b);\n\t(c)\tsection 61 of the Law (as it applies under this regulation) is modified so that an application to the Court in respect of a breach of a relevant regulation may be made by the Scheme Regulator on behalf of the State (as if a breach of a relevant regulation were a breach of the Regulations);\n\t(d)\tsections 62 and 64 of the Law (as they apply under this regulation) are modified so that a reference to a breach of the Regulations includes a breach of a relevant regulation;\n\t(e)\tsection 69 of the Law (as it applies under this regulation) is modified so that a civil penalty with respect to a breach of a relevant regulation is payable to the State for payment into the Fund;\n\t(f)\tPart 6 Division 5 of the Law (as it applies under this regulation) is modified so that—\n\t(i)\ta reference to a tier 1 civil penalty provision includes a reference to a designated tier 1 regulation; and\n\t(ii)\ta reference to a tier 2 civil penalty provision includes a reference to a designated tier 2 regulation; and\n\t(iii)\ta reference to the AER were a reference to the Scheme Regulator;\n\t(g)\tSchedule 2 clause 37A of the Law (as it applies under this regulation) is modified so that a reference to a civil penalty amount includes a reference to a civil penalty amount payable with respect to a breach of a relevant regulation.\n\t(3)\tIn this regulation—\ndesignated tier 1 regulation means any of the following:\n\t(a)\tregulation 22(2);\n\t(b)\tregulation 22(4);\n\t(c)\tregulation 23(6);\n\t(d)\tregulation 24(6);\n\t(e)\tregulation 25(7);\n\t(f)\tregulation 26(7);\n\t(g)\tregulation 29(3);\n\t(h)\tregulation 30(4);\n\t(i)\tregulation 31;\n\t(j)\tregulation 33(1);\ndesignated tier 2 regulation means any of the following:\n\t(a)\tregulation 15(3) (in relation to a regulated entity);\n\t(b)\tregulation 16(1) (in relation to a regulated entity);\n\t(c)\tregulation 27(7);\n\t(d)\tregulation 32;\n\t(e)\tregulation 33(6);\nrelevant regulation means a designated tier 1 regulation or designated tier 2 regulation.\nPart 10—Application of Orderly Exit Management Framework\n35—Application of Orderly Exit Management Framework\nFor the purposes of section 118AB of the National Electricity (South Australia) Law—\n\t(a)\tthe whole of Part 8AA of that Law applies in South Australia on and from the day on which these regulations come into operation; and\n\t(b)\tthe financial vehicle for the purposes of that Part (the OEMF financial vehicle) is to be established (as the Minister thinks fit)—\n\t(i)\tif the Scheme Administrator has appointed a Financial Vehicle under regulation 9(3)—by the Minister conferring, by notice in the Gazette, the functions referred to in section 118AS of the National Electricity (South Australia) Law on the Financial Vehicle; or\n\t(ii)\tin any case—by the Minister establishing a body (including a company established under the Corporations Act 2001 of the Commonwealth) and, by notice in the Gazette, identifying that body as the financial vehicle for the purposes of Part 8AA.\nPart 11—Miscellaneous\n36—Delegations\n\t(1)\tFor the purposes of section 15B(2)(e) of the Act, the Minister may delegate any of the Minister's functions—\n\t(a)\tto a scheme entity; or\n\t(b)\tto another specified body or person (including a person for the time being holding or acting in a specified office or position).\n\t(2)\tA delegation under this regulation—\n\t(a)\tmay be absolute or conditional; and\n\t(b)\tdoes not derogate from the power of the Minister to act in any particular matter; and\n\t(c)\tis revocable at will by the Minister.\n37—Guidelines made by Scheme Regulator\n\t(1)\tThe Scheme Regulator may make guidelines in respect of the processes and methods that will apply for making or varying contribution determinations and related matters, or that will otherwise apply with respect of the scheme, including guidelines with respect to—\n\t(a)\tconsultation processes in connection with making a contribution determination; and\n\t(b)\tthe collection any payment of money under a contribution notice or an initial contribution notice; and\n\t(c)\tthe roles and responsibilities of scheme entities in connection with the contribution determination processes; and\n\t(d)\tprinciples, methodologies or approaches that are to be applied in allocating amounts to TNSP's under a contribution determination; and\n\t(e)\tannual reporting requirements for scheme entities; and\n\t(f)\treporting requirements for regulated entities; and\n\t(g)\tany other matter that is—\n\t(i)\tcontemplated by these regulations as being the subject of guidelines made by the Scheme Regulator for the purposes of the scheme; or\n\t(ii)\tconsidered by the Scheme Regulator as being expedient in connection with the Scheme Regulator's functions under these regulations.\n\t(2)\tThe Scheme Regulator must ensure that any guidelines made by the Scheme Regulator under this regulation are published on a website determined by the Scheme Regulator.\n38—Variation of licence conditions\nFor the purposes of section 15B(2)(m) of the Act, it will be a condition of a TNSP's licence issued under Part 3 Division 1 of the Electricity Act 1996 that the TNSP will comply with the requirements of an initial contribution notice or contribution notice under these regulations.\n39—Application of Competition and Consumer Act 2010 of Commonwealth\nThe Competition and Consumer Act 2010 of the Commonwealth, section 44AAEC extends to and has effect for the purposes of these regulations.\n40—Competition authorisation\n\t(1)\tRelevant conduct is conduct that is specifically authorised by these regulations for the purposes of the Competition and Consumer Act 2010 of the Commonwealth and the Competition Code of South Australia.\n\t(2)\tConduct authorised by this regulation is authorised to the extent, if any, that it would otherwise contravene Part IV of the Competition and Consumer Act 2010 of the Commonwealth and the Competition Code of South Australia.\n\t(3)\tIn this regulation—\ngiving effect to a requirement includes—\n\t(a)\tcomplying with an obligation arising in connection with the requirement; and\n\t(b)\texercising or enforcing a right or power arising in connection with the requirement;\nrelevant conduct means the following conduct:\n\t(a)\tentering into negotiations, or entering into a contract, under regulation 23;\n\t(b)\tentering into negotiations, or entering into a contract, under regulation 24;\n\t(c)\tgiving effect to a requirement under a FERM contract;\n\t(d)\texercising a function in relation to, or giving effect to a requirement in relation to, any other matter under these regulations by a scheme entity.\n41—Exclusion of operation of Corporations Act\nThe performance by the Scheme Administrator of the scheme administration functions insofar as it relates to—\n\t(a)\tgiving advice or making a recommendation to the Financial Vehicle; or\n\t(b)\tdealing with a financial product by arranging for a recognised electricity entity or a successful tenderer to enter into a FERM contract,\nis declared to be an excluded matter for the purposes of section 5F of the Corporations Act 2001 of the Commonwealth in relation to sections 911A and 911B of that Act.\n42—Review\n\t(1)\tThe Minister must cause a review of the scheme to be carried out within 5 years after the commencement of these regulations.\n\t(2)\tThe Minister must publish the outcome of the review in such manner as the Minister determines to be appropriate.\nLegislative history\nNotes\n\t•\tFor further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes or www.legislation.sa.gov.au.\nPrincipal regulations\nYear\nNo\nReference\nCommencement\n2025\n104\nGazette 18.9.2025 p3857 \n18.9.2025: r 2\n","sortOrder":0}],"analysis":{"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":8,"scope_assessment":{"changed":true,"description":"These regulations move beyond a high‑level enabling power and establish a detailed operational scheme: they create new entities, a statutory Fund and trustee (Financial Vehicle), compulsory contribution powers on TNSPs with mandated recovery through transmission pricing, contract novation mechanisms transferring liabilities to the Financial Vehicle, and a bespoke civil‑penalty/enforcement regime. The instrument also modifies the National Electricity (SA) Law and the NER to enable scheme operation and applies the OEM framework in this jurisdiction (see regs 5, 7–9, 20, 21, 27–31, 34, 35)."},"complexity_factors":["Creation of multiple new scheme entities with appointment, delegation and removal powers (Scheme Administrator, Scheme Regulator, Financial Vehicle) requiring inter‑entity coordination (regs 9, 13, 18, 19).","Extensive Ministerial discretion to declare/adjust the Firm Energy Target, issue binding guidelines, give directions and delegate functions (regs 7, 8, 36).","Financial Vehicle operates a statutory trust that holds the Fund and FERM contracts; novation rules transfer rights/liabilities from Minister or prior trustee to the Financial Vehicle (regs 9(3)–(4), 20, 25, 26, 21(2)–(4)).","Compulsory contribution mechanics on TNSPs, including initial notices, annual contribution determinations, variations and recovery as a debt, interacting with transmission pricing under the NER (regs 27–31, 38).","Rules for allocation, prudential minima and surplus handling give the Scheme Regulator broad judgment in contribution sizing and timing (regs 27(2)–(5), 28).","Complex contracting pathways: NOI process, negotiated contracts with exiting providers, competitive tenders, transitional and deemed contracts — each with different procedural and novation consequences (regs 22–26).","Reporting, audit and information powers on regulated entities and scheme entities, with potential civil penalties for specified breaches (regs 11, 15–17, 34).","Modification and interaction with existing legal frameworks (National Electricity (SA) Law, National Electricity Rules, Competition and Consumer Act, Corporations Act carve‑outs and OEM framework application) introduces cross‑jurisdictional compliance complexity (regs 5, 35, 39–41).","Civil penalty regime maps multiple obligations into tiered penalties and substitutes the Scheme Regulator for the AER in enforcement roles (reg 34).","Risk management framework is ministerially directed but binding on the Financial Vehicle, creating layered governance and operational constraints (regs 10(1)(f)–(2), 11(1)(a)(iii))."],"plain_english_summary":"These regulations create a state-run scheme and Fund to secure long‑duration (minimum 8‑hour) dispatchable electricity capacity. The Minister can set a Firm Energy Target and appoint a Scheme Administrator, Scheme Regulator and a Financial Vehicle to contract with capacity providers; the Financial Vehicle runs the Fund and FERM contracts and TNSPs can be required to contribute amounts that are recoverable from transmission customers (regs 7, 9, 12, 21, 27–31).\n\nThe instrument allows tenders, negotiated or transitional contracts and novation of pre‑existing contracts, imposes reporting and reliability/liquidity obligations on market participants, and provides for enforcement including civil penalties (regs 22–26, 33, 34)."},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Unable to assess scope change — the full text of the regulations was not retrievable. The title is consistent with a targeted regulatory instrument addressing two related energy market concerns (reliability obligations and generator exit processes), suggesting a focused rather than expanded scope, but this cannot be confirmed without the actual content."},"complexity_factors":["Score reflects only the complexity of what was actually provided (a 404 error page), not the legislation itself","The title suggests the actual regulations would likely score 7-9 due to: interaction with the National Electricity Law framework, technical energy market concepts, multiple regulatory bodies involved, and staged compliance obligations typical of exit management schemes","Cannot assess drafting complexity, cross-references, or definitional intricacy without the text"],"plain_english_summary":"The draft regulations appear intended to secure firm energy reliability and set rules for orderly exit of generators in South Australia under the National Electricity Law — aiming to avoid sudden supply shortfalls and maintain grid stability.\n\nThey would affect electricity generators, market bodies (AEMO, AER) and potentially consumers. The actual regulatory text could not be retrieved (404 error), so no substantive detail or legal analysis is available."},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation appears to be implementing the specific scheme contemplated by amendments to the National Electricity (South Australia) Act 1996 (specifically section 15B). The scope aligns with the stated object in regulation 3: establishing a scheme and fund for long duration dispatchable electricity capacity. While the regulations are comprehensive, they do not appear to have expanded beyond the original legislative intent of creating the FERM scheme and associated orderly exit management framework."},"complexity_factors":["Multiple interlocking scheme entities with overlapping functions (Scheme Administrator, Scheme Regulator, Financial Vehicle) and complex appointment/sub-delegation chains under regulation 9","Extensive cross-referencing to the National Electricity (South Australia) Law, National Electricity Rules (NER), and National Electricity (South Australia) Act 1996, requiring parallel reading of multiple statutes","27 defined terms in the interpretation section (regulation 4), many of which are themselves defined by reference to other defined terms or external documents","Complex novation provisions (regulations 20, 25, 26) transferring contractual rights and liabilities between the Minister and Financial Vehicle with conditional exceptions","Nested conditional logic in contribution determinations (regulation 27) requiring balancing of multiple competing factors including equitable allocation, variability limits, and prudent cash balances","Dual-tier civil penalty regime (regulation 34) with extensive modifications to the underlying National Electricity Law provisions","Statutory trust structure (regulation 9(3)-(4)) that explicitly excludes the operation of the Trustee Act 1936, creating specialised trust law","Transitional arrangements with time-bound operations (transition period ending 31 December 2026) creating parallel contractual frameworks","Multiple guideline-making powers (Minister under regulation 8, Scheme Regulator under regulation 37) creating delegated legislative layers not fully contained in the regulations","Interaction with Orderly Exit Management Framework (Part 10) which imports Part 8AA of the National Electricity (South Australia) Law by reference"],"plain_english_summary":"This legislation creates a new scheme called the **Firm Energy Reliability and Orderly Exit Management (FERM) Scheme** to ensure South Australia has enough reliable, long-lasting electricity supply.\n\n**What it does:**\n- **Sets a target** for how much \"long duration dispatchable electricity capacity\" the state needs—this means power sources that can run continuously for at least 8 hours on demand (like batteries, pumped hydro, or gas plants that don't depend on the sun or wind).\n- **Creates a special Fund** (managed by a \"Financial Vehicle\") that pays electricity providers to either keep existing power plants running longer than planned or build new reliable capacity.\n- **Establishes three key bodies** to run the scheme:\n  - **Scheme Administrator**: Runs tenders (competitive bidding processes) and negotiates contracts\n  - **Scheme Regulator**: Oversees compliance, audits performance, and sets financial contributions\n  - **Financial Vehicle**: Acts as a trustee managing the Fund and signing contracts with power providers\n\n**Who pays for it:**\n- **Transmission Network Service Providers (TNSPs)**—the companies that own the big power lines—must pay into the Fund through \"contribution notices.\"\n- These costs are then passed on to electricity customers through their power bills (specifically through adjustments to transmission charges).\n\n**How contracts work:**\n- **Notices of Intention (NOIs)**: Existing power generators must tell the government if they plan to shut down or stay open.\n- **Negotiated contracts**: If a generator plans to close, the government can negotiate to pay them to stay open longer.\n- **Tenders**: Competitive processes to find new providers of reliable capacity.\n- **Transitional contracts**: Contracts signed during the initial setup period (until end of 2026) that get handed over to the Financial Vehicle later.\n\n**Who it affects:**\n- **Electricity generators** (especially those with coal, gas, or large batteries)\n- **Transmission companies** (TNSPs)\n- **Electricity retailers and large customers** (who ultimately pay through transmission charges)\n- **South Australian households and businesses** (through potential impacts on electricity prices)\n\n**Why it matters:**\nSouth Australia has a lot of wind and solar power, which is intermittent (doesn't work when the wind isn't blowing or sun isn't shining). This scheme ensures there's enough \"firm\" power available for at least 8 hours at a time to keep the lights on during periods of low renewable generation. It also manages the \"orderly exit\" of old power plants so they don't all close at once, which could cause blackouts.\n\n**Other key features:**\n- **Civil penalties** for non-compliance (fines for breaking the rules)\n- **Reliability obligations**: Requires big electricity users to secure their own backup contracts\n- **Market liquidity obligations**: Requires certain generators to offer contracts into the market to help with price stability\n- **Competition law protection**: The scheme is authorised under competition law because it involves coordinated industry behaviour that would normally be illegal\n- **Review**: The scheme must be reviewed after 5 years"}},"importantCases":[],"_links":{"self":"/api/acts/national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations","history":"/api/acts/national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations/history","analysis":"/api/acts/national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations/analysis","conflicts":"/api/acts/national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations/conflicts","importantCases":"/api/acts/national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations/important-cases","documents":"/api/acts/national-electricity-south-australia-firm-energy-reliability-and-orderly-exit-management-regulations/documents"}}