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Electricity Act 1996
Div 5Commission's powers to take over operations
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Division 5—Commission's powers to take over operations
38—Power to take over operations
(1) If—
(a) an electricity entity contravenes a condition of its licence or any other requirement of this Act, or an electricity entity's licence ceases, or is to cease, to be in force; and
(b) it is necessary, in the Commission's opinion, to take over the entity's operations (or some of them) to ensure an adequate supply of electricity to customers,
the Governor may make a proclamation under this section.
(2) Before a proclamation is made under this section, the Commission must give the electricity entity a reasonable opportunity to make written representations giving reasons why the proclamation should not be made.
(3) A proclamation under this section—
(a) authorises the Commission to take over the electricity entity's operations or a specified part of the electricity entity's operations; and
(b) may contain ancillary directions (and may, in particular, contain directions about how the costs of carrying on the operations, and revenue generated from the operations, are to be dealt with).
(4) A direction under subsection (3)(b) operates to the exclusion of rights that are inconsistent with it.
39—Appointment of operator
(1) When a proclamation is made under this Part, the Commission must appoint a suitable person (who may, but need not, be an electricity entity) to take over the relevant operations on agreed terms and conditions.
(2) A person appointed to take over an electricity entity's operations is referred to in this section as the operator.
(2a) The operator must comply with any applicable provisions of the National Electricity (South Australia) Law and the National Electricity Rules.
(3) The electricity entity must facilitate the take over of the relevant operations by the operator.
(4) The operator may have access to the electricity infrastructure and other property of the electricity entity for the purposes of carrying on the relevant operations.
(5) A person must not obstruct the operator's access to property or the exercise by the operator of the operator's responsibilities under this Part.
Maximum penalty: $250 000.
(6) A person must comply with reasonable directions given by the operator in the exercise of the operator's responsibilities under this Part.
Maximum penalty: $250 000.