Electricity Supply Industry Restructuring (Savings and Transitional Provisions) Act 1995
In ForceTAS
Jurisdiction
Tasmania
Act Number
49 of 1995
Collection
act
Plain English Summary
6/10 complexity
This Act smooths the legal transition from the old Hydro‑Electric Commission regime into the restructured electricity supply framework. It preserves existing licences, appointments and by‑laws for limited periods (so operators can continue while applying for new licences), allows the HEC to finish authorised construction, and keeps existing price and tariff arrangements in force temporarily. It also imposes continuing water‑management duties on the HEC (minimum releases, reservoir levels, compensation for salinity) and sets a process for converting historic water entitlements into statutory authorisations.
This Act provides saving, transitional and continuing provisions tied to the restructuring of Tasmania's electricity supply industry, and preserves certain ongoing water management obligations and project completion rights. Mechanically the Act does the following.
Creates short-term presumptions to bridge the old Hydro‑Electric Commission regime and the new Electricity Supply Industry Act 1995 regime. Persons lawfully carrying on operations immediately before commencement are taken to hold a presumptive licence under the ESI Act for the same operations or for operations authorised by regulation (s 4(1)). The presumptive licence can be conditioned by regulation (s 4(3)) and terminates after six months unless a licence application is made, or on final decision of a licence application (s 4(2)). The Hydro‑Electric Corporation (HEC) is taken to be appointed as system controller on commencement, for 12 months (s 5(1)-(2)). Appointments of electricity officers and authorised officers made under the former Act are carried across for 12 months unless revoked earlier (s 9(1)-(4)).
Preserves and adapts pre‑existing regulatory instruments, by-laws and tariffs. Regulations that were in force under the former Hydro‑Electric Commission Act 1944 continue as regulations under the ESI Act (s 6(1)). By‑laws remain in force as regulations except where specifically treated as continuing tariffs, and those tariff by‑laws remain treated as statutory rules for certain transitional purposes under the Government Prices Oversight Act 1995 until a specified relevant date (s 6(2)-(6)). The Act requires continued reading of continued regulations subject to necessary adaptations for operation under the ESI Act (s 6(8)).
Authorises certain pre‑existing contractual arrangements between HEC and large customers, for the purpose of Commonwealth trade practices law. Contracts entered into before commencement that restrict re‑supply or discriminate on the basis of re‑supply, in relation to customers with rights to draw at 50 megawatts or above, are declared authorised for the purposes of section 51 of the Trade Practices Act 1974 (s 7(1)-(3)).
Current sections
Direct links to the current provisions in Electricity Supply Industry Restructuring (Savings and Transitional Provisions) Act 1995.
HEC means the Hydro-Electric Corporation formerly known as the Hydro-Electric Commission;
land includes –
(a) an estate or interest in land (including an easement); and
(b) a right or power over or in respect of land;
owner of land means –
(a) if the land has been alienated from the Crown by the grant of an estate in fee simple or another estate or interest conferring a right to possession of the land, the person who holds the relevant estate or interest; or
(b) in any other case, the Minister, authority or person responsible for the management of the land;
(1) A person who was, immediately before the commencement of this Act, lawfully carrying on operations in the electricity supply industry is taken to be licensed under the ESI Act to carry on regulated operations in the electricity supply industry if –
(a) the person was carrying on operations of the same kind immediately before the commencement of this Act; or
(b) the person is authorised by regulation to carry on the operations.
(2) A presumptive licence under subsection (1) terminates 6 months after the commencement of this Act if the person makes no application for a licence under the ESI Act within that period and, if an application is made for a licence under that Act, the presumptive licence terminates when the application is finally decided.
(3) The regulations may prescribe conditions to which a presumptive licence under this section is subject.
5
Presumptive appointment as system controller
5 Presumptive appointment as system controller
(1) On the commencement of this Act, the HEC is taken to have been appointed under the ESI Act as the system controller for all power systems operated by it immediately before the commencement of this Act.
(2) An appointment under this section continues for 12 months after the commencement of this Act.
6
Regulations and by-laws
6 Regulations and by-laws
(1) A regulation in force under the former Act immediately before the commencement of this Act continues in force, subject to amendment or revocation under the ESI Act or this Act, as a regulation under the ESI Act .
(2) Subject to subsections (3) and (4) , a by-law in force under the former Act immediately before the commencement of this Act continues in force, subject to amendment or revocation under the ESI Act or this Act, as a regulation under the ESI Act .
(3) A by-law fixing charges for electricity in force under the former Act immediately before the commencement of this Act continues in force as an electricity tariff under the ESI Act until it is superseded by an electricity tariff published under the ESI Act .
(4) A by-law fixing charges for electricity that continues in force under subsection (3) or an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC is to be regarded as a tariff by-law for the purposes of the Hydro-Electric Commission (Contributions) Act 1980 .
(a) a by-law fixing charges for electricity that continues in force under subsection (3) or an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC is, before the relevant date, to be regarded as a statutory rule; and
(b) on and after the relevant date, an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC is not to be regarded as a statutory rule.
(6) Until the relevant date, section 47(3) , (3A) , (4) , (5) , (6) and (7) of theActs Interpretation Act 1931 applies to an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC as if the tariff were regulations within the meaning of that Act.
(8) A regulation or by-law that continues in force under this section must be read subject to any adaptations and modifications that are necessary for its continued operation under the ESI Act .
(9) In this section, relevant date means the date when the first order affecting the prices that may be charged by the HEC for electricity takes effect under the Government Prices Oversight Act 1995 .
7
Contracts
7 Contracts
(1) This section applies to a customer who has contractual rights (which may be aggregate rights arising under 2 or more separate contracts) to draw electricity from a power system at a rate of 50 megawatts or above.
(2) If, before the commencement of this Act, the HEC entered into a contract for the supply of electricity to a customer to which this section applies –
(a) on conditions prohibiting or restricting the re-supply of the electricity; or
(b) on conditions providing for price discrimination according to whether the electricity is, or is not, to be re-supplied –
the contractual conditions and anything done to enforce the conditions are, for the purposes of section 51 of theTrade Practices Act 1974 of the Commonwealth, authorised by this Act.
(3) If, before the commencement of this Act, the HEC entered into contracts with one or more customers to which this section applies and it appears from comparison of the conditions of the contracts that there is price discrimination according to whether the electricity is, or is not, re-supplied, the contractual conditions and anything done to enforce the conditions are, for the purposes of section 51 of theTrade Practices Act 1974 of the Commonwealth, authorised by this Act.
8
Permits, licences, authorisations and approvals
8 Permits, licences, authorisations and approvals
(1) Subject to subsection (2) , if a permit, licence, authorisation or approval was in force under the former Act immediately before the commencement of this Act, and the ESI Act contains provision for a similar kind of permit, licence, authorisation or approval, it continues in force, subject to the ESI Act , as if granted under the corresponding provision of the ESI Act .
(2) Unless renewed under the ESI Act , a permit, licence, authorisation or approval that continues in force under subsection (1) expires –
(a) at the end of the term for which it was granted or last renewed; or
(b) one year after the commencement of this Act –
whichever is the earlier.
9
Electricity officers and authorised officers
9 Electricity officers and authorised officers
(1) An officer appointed by the HEC to exercise powers under section 58 of the former Act is, on the commencement of this Act, taken to have been appointed an electricity officer for the purposes of the ESI Act .
(2) An appointment under subsection (1) expires, unless revoked earlier by the HEC, 12 months after the commencement of this Act.
(3) A person appointed by the HEC to exercise powers for the purposes of regulations under section 61 or 62 of the former Act is, on the commencement of this Act, taken to have been appointed as an authorised officer for the purposes of the ESI Act .
(4) An appointment under subsection (3) expires, unless revoked earlier by the Regulator, 12 months after the commencement of this Act.
Continuing obligations related to water management
Part 4 Continuing obligations related to water management
Division 1
The Huon and Serpentine Rivers
Division 1 The Huon and Serpentine Rivers
14
The HEC's obligations
14 The HEC's obligations
(1) The HEC –
(a) must maintain a release valve with a capacity of not less than 2 832 litres per second so that water may be released down the Huon River from the structures that were established under the Hydro-Electric Commission (Power Development) Act 1967 ; and
(b) must release water into the Huon River as required by –
(c) must not allow the conserved waters of the Serpentine River to rise to more than 308·46 metres above sea level or to fall to less than 306·93 metres above sea level, or a lower level authorised under subsection (3) .
(3) The Governor may, by order published in the Gazette, authorise the HEC to allow the conserved waters of the Serpentine River to fall to a level that is not less than 305·41 metres above sea level.
(1) An owner or occupier of land on, or in the valley of, the Huon River who suffers loss from an increase in the salinity of the waters of the Huon River or of the underground waters affected by it because the river's flow has been diminished by –
(b) the Lawrenny Water Trust, being the body corporate and politic by that name created by letters patent under the seal of the State on 11 February 1960 (as notified in the Gazette on 16 March 1960);
(1) A person is an entitlement holder, in respect of land to which section 16(2)(b) of this Act applied immediately before the 2011 transition day, if –
(a) an order has not been made under section 16D(2) in respect of the land; and
(b) the person –
(i) was the owner of the land immediately before the 2011 transition day; or
(ii) if the land has been transferred on or after the 2011 transition day, is receiving the benefit of the water entitlement agreement made in respect of the land.
(2) If an order has been made under section 16D(2) in respect of land to which section 16(2)(b) of this Act applied immediately before the 2011 transition day, a person is an entitlement holder in respect of the land if the person is the holder of a valid authorisation –
is taken to have been validly made under that section if approved by the Water Minister as such an agreement before the commencement day, whether or not the agreement was made during or after the 2011 transition period.
(3) For the avoidance of doubt, an agreement that –
(a) was in force immediately before the commencement day; and
(b) on and after the commencement day, is taken to be a water entitlement agreement –
remains in force, on the same terms and conditions, on the commencement day.
(4) Subject to section 16E , the amount of water to be made available under section 16B(1) to an entitlement holder is the amount specified in the water entitlement agreement, as fixed by order under section 16D(2) , that applies to the entitlement holder.
(5) Despite subsection (4) , a water entitlement agreement is not capable of providing for the suspension, relinquishment, phased reduction or extinction (by any means) of the HEC's obligation under section 16B(1) and a term of any such agreement purporting to make such provision is, to that extent, void and unenforceable.
16D
Orders providing for supply of certain water entitlements
16D Orders providing for supply of certain water entitlements
(ii) prescribe conditions relating to the discharge of the HEC's obligation under section 16B(1) ;
(iii) set limitations on the HEC's obligation under section 16B(1) .
(4) The order –
(a) may be made at any time during or after the 2011 transition period; and
(b) is, as far as practicable, to incorporate the matters relevantly agreed or awarded under section 16C ; and
(c) is not to prescribe anything repugnant to the matters relevantly agreed or awarded under section 16C ; and
(d) may be of general application or apply differently according to persons, matters, limitations or restrictions, whether as to time, circumstance or otherwise, specified in the order.
(5) To avoid doubt –
(a) the Water Minister's powers extend to the making of the order; and
(b) the order may, consistently with this section –
(c) the order has effect according to its terms; and
(d) in the event of any inconsistency between a term of the order and an enactment other than this section made before the order, the term of the order is not invalidated or rendered nugatory by the inconsistency.
(a) the amount of water that the HEC must make available to the entitlement holder under section 16B(1) is the same amount as it was obliged to make available to the entitlement holder under section 16(1) of this Act immediately before the 2011 transition day; and
Notwithstanding the repeal of the construction Acts, the HEC may, in accordance with the regulations, continue and complete any work or activities that were authorised by any of those Acts.
19
Regulations
19 Regulations
(1) The Governor may make regulations for the purposes of this Act.
(2) Regulations may be made so as to apply differently according to matters, limitations or restrictions, whether as to time, circumstance or otherwise, specified in the regulations.
(3) The regulations may –
(a) provide that a contravention of, or a failure to comply with, any of the regulations is an offence; and
(b) in respect of such an offence, provide for the imposition of a fine not exceeding 10 penalty units and, in the case of a continuing offence, a further fine not exceeding one penalty unit for each day during which the offence continues.
(4) The regulations may authorise any matter to be from time to time determined, applied or regulated by the Minister or an officer or person nominated in the regulations.
(5) The regulations may contain provisions of a savings or transitional nature consequent on the enactment of this Act or complementary legislation.
(6) A provision referred to in subsection (5) may take effect on and from the day on which this Act commences or a later day.
(a) the administration of this Act is assigned to the Minister for Energy; and
(b) the department responsible to the Minister for Energy in relation to the administration of this Act is the Office of Energy Planning and Conservation.
| PART 1 |
| Hydro–Electric Commission Act 1944 |
| Loan (Hydro–Electric Commission) Act 1957 |
| Electric Power Development (Loan Agreement) Act 1968 |
| |
| PART 2 |
| Hydro–Electric Commission (Mersey–Forth Power Development) Act 1963 |
| Hydro–Electric Commission (Miena Dam) Act 1964 |
| Hydro–Electric Commission (Lower Derwent Power Development and Miena Dam) Act 1966 |
| Hydro–Electric Commission (Power Development) Act 1967 |
| Hydro–Electric Commission (Pieman River Power Development) Act 1971 |
| Hydro–Electric Commission (Doubts Removal) Act 1972 |
| Hydro–Electric Commission (Power Development) Act 1974 |
| Gordon River Hydro–Electric Power Development Act 1982 |
| Hydro–Electric Commission (Doubts Removal) Act 1982 |
| Hydro–Electric Commission (Power Development) Act 1983 |
Source text: opening excerpt
Sourced from Tasmanian Legislation Online (legislation.tas.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
1 Short title
1 Short title
This Act may be cited as the Electricity Supply Industry Restructuring (Savings and Transitional Provisions) Act 1995 .
2 Commencement
2 Commencement
The provisions of this Act commence on a day or days to be proclaimed.
3 Interpretation
3 Interpretation
In this Act –
complementary legislation means –
(a) the Electricity Supply Industry Act 1995 ; and
(b) the Hydro-Electric Corporation Act 1995 ; and
(c) the HEC Enterprises Corporation Act 1995 ;
construction Acts means the Acts referred to in Part 2 of Schedule 1 ;
[Section 3 Amended by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
ESI Act means the Electricity Supply Industry Act 1995 ;
former Act means the Hydro-Electric Commission Act 1944 ;
HEC means the Hydro-Electric Corporation formerly known as the Hydro-Electric Commission;
land includes –
(a) an estate or interest in land (including an easement); and
(b) a right or power over or in respect of land;
owner of land means –
(a) if the land has been alienated from the Crown by the grant of an estate in fee simple or another estate or interest conferring a right to possession of the land, the person who holds the relevant estate or interest; or
Provides continuity for permits, licences, authorisations and approvals issued under the former Act where the ESI Act contains a similar provision, subject to expiry rules including the earlier of the instrument term or one year from commencement if not renewed (s 8(1)-(2)).
Creates ongoing water management obligations on HEC for specified rivers and entitlement holders. For the Huon River and Serpentine River the HEC must maintain a specified release valve capacity and release water as required by agreement with the Minister or, in default, by Governor’s determination; it must observe specified conserved water levels for the Serpentine (s 14(1)-(3)). Owners and occupiers who suffer salinity damage because of diminished flow from specified works are entitled to compensation assessed on the Land Acquisition Act 1993 basis (s 15(1)-(2)). For the Lake River and River Ouse the Act, as amended, establishes an entitlement framework: entitlement holders and the Lawrenny Water Trust are identified; the HEC must make water available to entitlement holders and that obligation is a condition of its special licence under the Water Management Act 1999 (ss 16A, 16B). The Act sets out processes for water entitlement agreements, ministerial approval, quantification and transitional supply, and for orders conferring authorisations to take water under the Irrigation Clauses Act 1973 or the Water Management Act 1999 (ss 16C-16E, 16D(2)).
Allows completion of construction works authorised under the repealed construction Acts, subject to regulations (s 18).
Provides regulation‑making power and penalty ceilings for regulations (s 19), and repeals the Acts specified in Schedule 1 (s 20 and Schedule 1). Administrative responsibility is assigned to the Minister for Energy until an administrative arrangement is made (s 21).
The Act therefore functions primarily as a transitional and savings instrument. It preserves continuity of licences, appointments, regulatory instruments and certain contractual and water entitlements, while imposing time limits and procedural paths for bringing arrangements into the new regulatory framework under the ESI Act and relevant water legislation. Key decision points are allocated to the Governor, the Water Minister and the Regulator under the ESI Act, with specific timelines for expiry or conversion of pre‑existing instruments (see in particular ss 4, 5, 6, 8, 9, 14, 16B-16E).
Main concepts
The Act organises a defined set of legal mechanics. The main concepts and legal constructs to track are:
Presumptive licence and its limits. A person lawfully carrying on electricity supply industry operations immediately before commencement is "taken to be licensed" to carry on the same or regulation‑authorised operations (s 4(1)). This is a statutory fiction to bridge to the ESI Act, not a permanent grant of rights. The fiction expires in six months unless a licence application is lodged (s 4(2)). The regulations may prescribe conditions (s 4(3)); any such conditions will affect the scope of carried‑over rights.
Presumptive system controller appointment. The HEC is taken to have been appointed system controller under the ESI Act for all power systems it operated immediately before commencement (s 5(1)). That appointment lasts for 12 months (s 5(2)). This allocates operational control continuity while permitting later formal appointment under the ESI Act.
Continuation and adaptation of subordinate instruments. Regulations and by‑laws made under the former Act continue as regulations under the ESI Act (s 6(1)-(2)). By‑laws that were price‑fixing continue as electricity tariffs until superseded (s 6(3)). The Act requires reading continued subordinate instruments with necessary adaptations to operate under the ESI Act (s 6(8)). For specified purposes the tariffs are treated as statutory rules under the Government Prices Oversight Act until a defined relevant date (s 6(5)-(6)); after that date electricity tariffs published under the ESI Act are not statutory rules under the Government Prices Oversight Act (s 6(5)(b)).
Authorisation of certain pre‑existing contracting practices. Contracts entered into by HEC before commencement with large customers (drawing rights at 50 MW or above) that restrict re‑supply or set price discrimination based on resale are declared authorised for the purposes of Commonwealth trade practices law (s 7(2)-(3)). This is a narrow, retrospective carve‑out tied to particular customers and existing contracts.
Continuity of permits and approvals. Permits, licences, authorisations and approvals under the former Act that have equivalents in the ESI Act continue in force as if granted under the equivalent provision, but expire at their term end or one year after commencement unless renewed under the ESI Act (s 8(1)-(2)).
Carrying forward of officer appointments. Persons appointed under particular sections of the former Act are taken to have been appointed as electricity officers or authorised officers under the ESI Act, with appointments expiring after 12 months unless earlier revoked (s 9(1)-(4)).
Water release and conservation obligations. For the Huon River, the HEC must maintain a release valve with a specified minimum capacity and release water as required by agreement with the Water Minister or, lacking agreement, by Governor’s determination; the HEC must maintain certain conserved water levels for the Serpentine River, subject to a Governor’s order authorising a lower level (s 14(1)-(3)). Income, expenditure or loss resulting from required releases is shared between HEC and the Minister in proportions determined by the Governor (s 14(2)).
Compensation for salinity damage. Owners or occupiers of land on or in the Huon valley who suffer loss from increased salinity as a result of specified conservation works or their management are entitled to compensation from HEC, assessed on the Land Acquisition Act 1993 basis (s 15(1)-(2)).
Water entitlement framework for Lake River and River Ouse. The amended Division defines entitlement holders, makes the HEC obliged to supply water to entitlement holders, transforms water entitlement agreements made under the former scheme into valid agreements if approved by the Water Minister, requires the Water Minister to make orders conferring authorisations to take water and fixing quantities, and provides transitional supply rules pending such orders (ss 16A, 16B, 16C, 16D, 16E). Importantly, water entitlement agreements cannot lawfully provide for suspension, phased reduction or extinction of HEC obligations (s 16C(5)).
Relationship of orders and subordinate legislation rules. Orders made by the Water Minister under s 16D(2) are statutory rules for the Rules Publication Act 1953 but are not subordinate legislation for the Subordinate Legislation Act 1992 (s 16D(6)). The Act also contains a general regulation power and an explicit maximum penalty for regulation contraventions (s 19).
Repeals and savings. The Act repeals a list of specific construction Acts and other Hydro‑Electric Commission legislation found in Schedule 1 (s 20 and Schedule 1), while saving the right to complete authorised construction works (s 18).
These concepts are drafted to achieve legal continuity during a restructuring, to protect certain entitlements and to create mechanisms by which rights and obligations can be quantified, converted or made subject to the new ESI and water management regimes. Each of these mechanisms includes time limits, decision nodes and limitations, which shape transitional incentives and compliance tasks for affected parties.
Who it affects
The Act identifies a bounded set of stakeholders who bear rights, duties or transitional burdens. Below is an itemised map, referencing the Act’s provisions.
Hydro‑Electric Corporation (HEC). The HEC is the central actor throughout the Act. It is taken to be the system controller on commencement (s 5(1)), must maintain and operate specified water release infrastructure and obey constraints on water levels (s 14(1)-(3)), must make water available to Lake River and River Ouse entitlement holders as a condition of its special licence under the Water Management Act (s 16B(1)-(2)), and must continue and complete construction projects authorised by repealed construction Acts subject to regulations (s 18). The HEC is liable for compensation to owners and occupiers suffering salinity loss (s 15).
Persons who were lawfully carrying on electricity supply industry operations immediately before commencement. These persons are treated as presumptively licensed under the ESI Act to carry on regulated operations of the same kind or operations authorised by regulation (s 4(1)). They face the burden of applying for formal licences under the ESI Act within six months to avoid termination of the presumptive licence (s 4(2)).
Customers with contractual rights to draw electricity at a rate of 50 megawatts or above. Contracts entered into by HEC before commencement that restrict re‑supply or discriminate on resale are declared authorised for the purpose of the Trade Practices Act 1974 s 51 (s 7(1)-(3)). This group benefits from a statutory authorisation that validates certain pre‑existing contractual conduct under Commonwealth competition law.
Owners and occupiers of land on, or in the valley of, the Huon River. If they suffer loss from increased salinity because the river flow has been diminished by specified conservation works or their use or management, they are entitled to compensation from HEC under s 15(1)-(2).
Entitlement holders in respect of land connected to the Lake River and River Ouse. The statutory definition and amendments identify entitlement holders (including, for some land, owners or transferees receiving water entitlement agreement benefits) and the Lawrenny Water Trust (s 16A, s 16AB). Entitlement holders are entitled to supply from HEC (s 16B) and must look to ministerial orders and water entitlement agreements for quantified entitlements (ss 16C-16D, 16E).
Water Minister and Governor. The Water Minister has specific order‑making and approval powers under ss 16C and 16D to confer authorisations to take water and to approve agreements, and to fix amounts and conditions. The Governor has a role in determining Huon water release requirements in default of agreement and may make orders authorising lower conserved water levels for Serpentine (s 14(1)(b)(ii), s 14(3)). The Governor also makes regulations generally under s 19(1).
Regulator under the ESI Act. The Regulator is referenced in definitions and is the office under which certain regulatory adaptations and appointments will operate, for example the transfer of by‑laws to regulations under the ESI Act and the continued appointment of authorised officers expiring 12 months after commencement unless revoked by the Regulator (s 6(1)-(2), s 9(3)-(4)).
Holders of permits, licences, authorisations and approvals under the former Act. Those instruments continue where the ESI Act contains similar provisions, but they will expire at term end or one year after commencement unless renewed under the ESI Act (s 8(1)-(2)).
Persons appointed as electricity officers or authorised officers under the former Act. They continue as electricity officers or authorised officers under the ESI Act for 12 months unless earlier revoked (s 9(1)-(4)).
Parties to contracts made by HEC that restrict redistribution or create price discrimination. Those contracts, if made before commencement and affecting large customers, are statutorily authorised for the purposes of the Trade Practices Act (s 7).
Public bodies referenced by interaction clauses: the Minister for Energy (administration assigned until further order, s 21), the agency responsible for publishing statutory rules under the Rules Publication Act 1953, and bodies under the Government Prices Oversight Act 1995 affected by tariff treatment (s 6(5)-(7)).
Who pays and who decides. The HEC carries financial responsibilities for compensation (s 15) and shared income/loss from water releases as determined by the Governor (s 14(2)). The Governor and Water Minister make substantive decisions on water release levels, the fixing of quantities, authorisations to take water, and regulations (ss 14, 16C-16D, 19). The Regulator and Minister for Energy handle administration and regulatory follow‑through (ss 3, 21). Those carrying on electricity operations must act to secure licences under the ESI Act (s 4).
Timelines and expiries create practical incentives. Presumptive licences have a six month window to be converted by application (s 4(2)). Presumptive appointments as system controller and continued officer appointments last 12 months, producing discrete windows for formal reappointment or replacement (ss 5(2), 9(2), 9(4)). Permits that continue in force under s 8 must be renewed within one year or at their term end. These timings structure short‑term compliance activity for many affected parties.
Key duties and rights
This section summarises the Act’s operative duties and rights with precise references to the statutory text. Focused attention to these provisions will identify enforceable obligations and entitlements.
Duty to apply for licences to retain activity. Persons lawfully carrying on electricity supply industry operations immediately before commencement are taken to be licensed under the ESI Act for the same operations (s 4(1)), but the presumptive licence terminates six months after commencement if no application for a licence under the ESI Act is made within that period (s 4(2)). Regulations may impose conditions on a presumptive licence (s 4(3)). Practically, the duty is to lodge an application promptly to preserve legal authority to continue operations beyond the six month period.
System controller continuity duty. The HEC is taken to have been appointed system controller for the power systems it operated prior to commencement (s 5(1)). That taken appointment continues for 12 months (s 5(2)). The HEC therefore has a duty to exercise system controller functions for that period under the ESI Act regime until the role is reallocated or confirmed.
Continuation and adaptation of subordinate instruments. Regulations and by‑laws under the former Act continue as regulations under the ESI Act (s 6(1)-(2)). A by‑law fixing charges for electricity continues as an electricity tariff until superseded (s 6(3)). The Act requires that any continued regulation or by‑law be read subject to necessary adaptations for operation under the ESI Act (s 6(8)). The practical duty is to review existing subordinate instruments for compatibility with the ESI Act and make or seek adaptations or revocations as needed.
Tariff regulatory treatment. For Government Prices Oversight Act purposes a continuing by‑law or an electricity tariff published under the ESI Act is to be regarded as a statutory rule before the relevant date; on and after the relevant date an electricity tariff published under the ESI Act is not to be regarded as a statutory rule (s 6(5)). Until the relevant date certain Acts Interpretation Act 1931 provisions apply to electricity tariffs as if they were regulations (s 6(6)). The Governor may make an order specifying maximum prices under the GPO Act without further amendment to this Act or complementary legislation (s 6(7)). Those clauses allocate rights to set and to review tariffs in defined windows.
Contractual authorisations for large customers. Contracts entered into by HEC before commencement with customers who may draw at 50 MW or above, which prohibit or restrict re‑supply or provide for price discrimination based on re‑supply, are, for the purposes of s 51 of the Trade Practices Act 1974 of the Commonwealth, authorised by this Act (s 7(2)-(3)). The right is limited: it covers pre‑existing contracts and customers meeting the specified draw threshold.
Continuity and expiry of permits and approvals. A permit, licence, authorisation or approval in force under the former Act continues as if granted under the ESI Act if the ESI Act contains provision for a similar kind of instrument (s 8(1)). Such instruments expire at the end of their term or one year after commencement, whichever is earlier, unless renewed under the ESI Act (s 8(2)). The duty on holders is to seek renewal under the ESI Act within the year or before term expiry.
Continuation of appointments. Persons appointed by the HEC under specific sections of the former Act are taken to have been appointed electricity officers or authorised officers under the ESI Act (s 9(1), (3)). Those appointments expire 12 months after commencement unless revoked earlier by the HEC or by the Regulator as applicable (s 9(2), (4)). The duty is on appointing bodies to reappoint or replace those officers within the 12 month window as necessary.
HEC water release obligations, infrastructure and levels. The HEC must maintain a release valve with capacity not less than 2 832 litres per second and release water into the Huon River as required by agreement with the Water Minister or, in default, by Governor’s determination (s 14(1)(a)-(b)). The HEC must not allow the conserved waters of the Serpentine River to rise above or fall below specific levels except where authorised by the Governor (s 14(1)(c)-(3)). Any income, expenditure or loss from releases under s 14(1)(b) is to be shared between the HEC and the Minister in proportions determined by the Governor (s 14(2)). These are direct operational duties on HEC, with Governor and Minister decision nodes.
Compensation right for salinity loss. Owners or occupiers of land on or in the Huon valley who suffer loss from increased salinity due to conservation works or their use or management are entitled to compensation from HEC assessed on the Land Acquisition Act 1993 basis (s 15(1)-(2)). This creates a private right to monetary redress against HEC, with valuation mechanics borrowed from the Land Acquisition Act.
Water entitlements for Lake River and River Ouse. The amendments create definitional and procedural rights: entitlement holders and the Lawrenny Water Trust are recognised (s 16A); HEC must make water available to entitlement holders (s 16B), and that obligation is a condition of its special licence under the Water Management Act 1999 (s 16B(2)). Water entitlement agreements made under the former regime are taken to be valid if approved by the Water Minister as such (s 16C(2)). The amount of water to be made available is the amount specified in the water entitlement agreement as fixed by order under s 16D(2), subject to transitional rules and to the prohibition on contractual terms that suspend or extinguish the HEC obligation (s 16C(4)-(5)). The Water Minister must, by order, confer authorisations to take water and may fix amounts, appoint water districts, set conditions and impose limitations (s 16D(2)-(3)). Until orders take effect the amount of water that HEC must make available is the same as it was obliged to provide under the previous s 16(1) immediately before the 2011 transition day, and entitlement holders are taken to hold authorisations under the Irrigation Clauses Act or the Water Management Act to take that water (s 16E).
Regulation making power and penalties. The Governor may make regulations for the purposes of the Act (s 19(1)). Regulations may create offences with fines of up to 10 penalty units and a continuing offence fine of up to 1 penalty unit per day (s 19(3)). Regulations can delegate determination powers to Ministers or nominated officers (s 19(4)). Regulations may contain savings or transitional provisions and may take effect from commencement (s 19(5)-(6)). The duty is to comply with regulations once made, recognising the specified maximum penalties.
These duties and rights are time‑bounded, conditional and often subject to later ministerial or gubernatorial decisions. Practitioners should map which duties are immediately operative, which require later administrative action to be quantified, and which provide private rights that create causes of action.
Penalties and enforcement
The Act itself sets a limited and narrowly framed enforcement architecture. It relies heavily on the ESI Act, related water legislation, ministerial orders and existing compensation mechanisms to produce enforceable outcomes. Key enforcement features are as follows.
Regulation‑based penalty ceiling. The Act authorises the Governor to make regulations and explicitly permits regulations to create offences with fines not exceeding 10 penalty units, and for continuing offences a further fine not exceeding one penalty unit per day (s 19(3)(a)-(b)). The Act does not itself attach a fine to most of its substantive provisions; rather it delegates creation of offences and penalties to regulations.
Administrative expiry and termination as enforcement levers. The Act creates automatic expiries and terminations that operate as de facto enforcement mechanisms if qualifying administrative steps are not taken. For example, presumptive licences terminate six months after commencement unless a licence application is made under the ESI Act (s 4(2)). Permits continued under s 8 expire at the end of their term or one year after commencement if not renewed under the ESI Act (s 8(2)). Presumptive appointments as system controller and continued electricity officer and authorised officer appointments expire after 12 months unless revoked earlier (ss 5(2), 9(2), 9(4)). These timed expiries compel parties to take administrative action or lose legal status.
Orders and statutory rules with publication obligations. Orders made by the Water Minister under s 16D(2) are statutory rules for the purposes of the Rules Publication Act 1953 (s 16D(6)(a)). This subjects such orders to the publication and notice regime of the Rules Publication Act, enabling public visibility and the normal rule publication processes. However, s 16D(6)(b) provides that the orders are not subordinate legislation for the Subordinate Legislation Act 1992, which may affect the availability of certain parliamentary or statutory oversight procedures and the applicable challenge routes or timelines.
Compensation as a private enforcement remedy. Section 15 creates an entitlement to compensation for owners or occupiers on or in the Huon valley who suffer salinity loss because of specified works or their management. The compensation is to be assessed on the Land Acquisition Act 1993 basis (s 15(2)). This creates a private, enforceable monetary right against the HEC. The Act does not prescribe a detailed procedure for claim, so claimants will likely follow the Land Acquisition Act process or seek statutory or equitable remedies consistent with the compensation entitlement.
Role of the Regulator and permitting regime under the ESI Act. The Act cross‑references the ESI Act for licensing and for the office of Regulator (s 3). Enforcement of many ongoing operational duties will therefore occur under the ESI Act’s compliance and enforcement framework once licensing transitions are complete. The Act’s preservation of by‑laws and tariffs as regulations under the ESI Act (s 6(1)-(3)) shifts enforcement of operational regulatory obligations to the ESI framework.
Governor and Water Minister decision power. The Governor and the Water Minister hold decision rights that have practical enforcement consequences. The Governor may make determinations in default of agreement about water releases for the Huon River (s 14(1)(b)(ii)), and may authorise lower conserved water levels for the Serpentine River (s 14(3)). The Water Minister must confer authorisations to take water by order, fix amounts, and may impose conditions or limits on HEC’s obligations (s 16D(2)-(3)). Those orders and determinations reshape rights and duties and are enforceable as statutory instruments, subject to publication requirements per s 16D(6)(a).
Limits on review or invalidation. Section 16D(5)(d) states that the order has effect according to its terms and, in the event of inconsistency between a term of the order and an enactment other than this section made before the order, the term of the order is not invalidated or rendered nugatory by the inconsistency. This clause creates a statutory precedence for the order within the scope of the Division, potentially narrowing some avenues for inconsistency-based invalidation.
Absence of other specific civil penalties. Apart from s 19’s delegated penalty power and the s 15 compensation entitlement, the Act does not itself create a wide array of novel civil penalties or criminal sanctions. Enforcement for many operational matters will flow from the ESI Act, water statutes and the content of regulations made under s 19 or under the complementary Acts.
In practice, enforcement will be a mix of regulatory action under the ESI Act and water statutes, private compensation claims under s 15, and compliance driven by administrative expiry rules embedded in the transitional devices. Practitioners should examine the regulations that are or will be made under s 19 and the orders under s 16D for the full picture of penalties and enforcement mechanisms that will apply to specific obligations.
How it interacts with other laws
The Act intentionally cross‑references and operates alongside a number of other statutes. The interplay is explicit in the text and affects jurisdictional competence, rights conversion and administrative processes.
Electricity Supply Industry Act 1995 (ESI Act). The Act is a savings and transitional instrument designed to operate with the ESI Act, repeatedly taking persons and instruments into the ESI Act framework (s 3 definition of ESI Act; ss 4, 5, 6, 8, 9). Presumptive licensing (s 4), presumptive appointment as system controller (s 5), conversion of regulations and by‑laws (s 6) and conversion of permits and approvals (s 8) are all expressly linked into the ESI Act. The Regulator is the office under the ESI Act (s 3). Practically, the ESI Act’s licensing, compliance and enforcement infrastructure will govern these matters once the transitional periods expire.
Hydro‑Electric Commission Act 1944 (former Act) and construction Acts. The Act repeals the former Act and a list of construction Acts in Schedule 1 (s 20). However the Act preserves the effect of specific subordinate instruments made under the former Act by continuing regulations and by‑laws as regulations under the ESI Act (s 6(1)-(2)). It also permits the HEC to continue and complete works authorised by the construction Acts despite their repeal (s 18).
Trade Practices Act 1974 (Commonwealth). The Act provides a limited statutory authorisation for pre‑existing HEC contracts with large customers that restrict re‑supply or create price discrimination, for the purposes of s 51 of the Trade Practices Act (s 7(2)-(3)). This is an express cross‑jurisdictional carve‑out, recognising that without this provision the conduct might otherwise be challenged under Commonwealth competition law.
Government Prices Oversight Act 1995 and Acts Interpretation Act 1931. The Act treats certain continuing by‑laws fixing electricity charges and electricity tariffs published under the ESI Act as statutory rules for the purposes of the Government Prices Oversight Act until a relevant date (s 6(5)). It also applies certain Acts Interpretation Act 1931 s 47 provisions to electricity tariffs as if they were regulations until the relevant date (s 6(6)). These interactions affect how tariffs are classified, published and reviewed under price oversight procedures.
Hydro‑Electric Commission (Contributions) Act 1980. A by‑law fixing charges for electricity or an electricity tariff by the HEC is to be regarded as a tariff by‑law for the purposes of the Hydro‑Electric Commission (Contributions) Act 1980 (s 6(4)). This situates tariff instruments within the contribution regime created by that Act.
Land Acquisition Act 1993. Compensation entitlements for salinity loss are to be assessed on the basis specified in the Land Acquisition Act 1993 (s 15(2)). This ties valuation and potentially compensation procedure to the acquisition framework.
Water Management Act 1999 and Irrigation Clauses Act 1973. The Act makes multiple express links to water laws. The Water Minister administering the Water Management Act is referenced in the Huon/Serpentine provisions (s 14(1)(b)(i) and s 14(4) defines Minister). For Lake River and River Ouse entitlements the HEC’s obligation to supply is taken to be a condition of its special licence under the Water Management Act 1999 (s 16B(2)). The Water Minister must, by order, confer authorisations to take water under the Irrigation Clauses Act or the Water Management Act (s 16D(2)). The Act also contemplates appointment of water districts under the Water Management Act by order (s 16D(3)(b)(i)). These cross‑references import the licensing and resource management machinery of the water statutes into the water‑entitlement regime created or preserved by this Act.
Rules Publication Act 1953 and Subordinate Legislation Act 1992. Orders under s 16D are statutory rules for the Rules Publication Act 1953 (s 16D(6)(a)), so they must be published as statutory rules. However they are explicitly not subordinate legislation for the Subordinate Legislation Act 1992 (s 16D(6)(b)). This distinction affects oversight, tabling requirements and potential procedural challenges.
Administrative Arrangements Act 1990. The Act assigns administration to the Minister for Energy until administration is otherwise allocated by order made under the Administrative Arrangements Act 1990 (s 21). This situates departmental responsibility and the chain of executive accountability.
Complementary legislation group. The Act defines "complementary legislation" to include the ESI Act, the Hydro‑Electric Corporation Act 1995 and the HEC Enterprises Corporation Act 1995 (s 3). These Acts together form the statutory ecosystem into which the transitional measures operate.
The Act is therefore an integrating instrument. It transfers or preserves rights and instruments from an older legislative architecture into a newer one, while defining specific exceptions and conversion procedures by referencing appropriate water, pricing and administrative statutes. Practitioners will need to sequence compliance activities across the ESI Act, water statutes and price oversight regimes, and to monitor orders and regulations made under s 16D and s 19 for operational detail and enforcement consequences.
Amendment history
The Act text includes in‑line editorial notes indicating a number of subsequent amendments and repeals. The Act itself records the following changes in the notes attached to its provisions.
No. 45 of 1999, Schedule 6, applied 1 January 2000. That instrument amended subsections of s 14. The marginal notes indicate amendments to s 14(1) and s 14(2) and the insertion of s 14(4), which supplies a definitional cross‑reference that "Minister" means the Minister administering the Water Management Act 1999 (see s 14 notes).
No. 64 of 2000, s 15, applied 14 November 2000. The notes show that s 3 (interpretation) and multiple subsections were amended by this Act, and that Part 3 and several sections were repealed by No. 64 of 2000 (the marginal notes for Part 3 state "Part 3 Repealed by No. 64 of 2000, s. 15, Applied:14 Nov 2000"). Specific references in s 3 show amendments via the 2000 Act.
No. 17 of 2011, s 4, applied 6 July 2011. That amendment substituted Division 2 of Part 4 dealing with Lake River and River Ouse. The Act notes that Division 2 of Part 4 was replaced by No. 17 of 2011 s 4, inserting ss 16A-16E and repealing former s 16 (see the marginal notes preceding s 16A and the note that s 16 was repealed by No. 17 of 2011).
No. 24 of 2019, applied 2 September 2019. The Act includes multiple annotations showing that No. 24 of 2019 amended the Division 2 provisions further. The notes indicate insertions of s 16AB (s 5 of No. 24 of 2019), amendments to s 16A and s 16C (s 4 and s 6 of No. 24 of 2019), and amendments to s 16D (s 7 of No. 24 of 2019). The 2019 amendments adjust definitions, validate water entitlement agreements, substitute and clarify quantification rules, and refine the Minister’s order‑making powers in that Division.
Repeals and subsequent statutory architecture. The Act’s Schedule 1 identifies the specific Hydro‑Electric Commission and construction Acts repealed by s 20. Those repeals are savingsed by the Act’s own provisions on completion of construction projects (s 18) and on the conversion of subordinate instruments (s 6). Marginal notes record that multiple sections were repealed by No. 64 of 2000 (for example the entire Part 3 and various sections).
What these amendment notes concretely show is that the water entitlement and supply provisions have been the focus of later legislative refinements, particularly in 2011 and 2019, with the 2019 amendments clarifying validation and ministerial processes for water entitlement agreements and orders. The 1999 and 2000 amendments adjusted the Huon/Serpentine provisions and repealed earlier sections respectively. The Act therefore has been maintained as a living transitional instrument, with the Division 2 water entitlements revised to reflect later policy and administrative design.
Practitioners should treat the marginal notes as the canonical amendment markers in the provided text, and consult the consolidated version for precise operative wording as of the latest amendment indicated in the text (including the 2019 changes to ss 16A-16D and the 2011 insertion of the Division). The Act’s own cross‑references and amendment notes make clear that the legislative architecture is integrated with the ESI Act and the Water Management Act, and that several time‑limited transitional devices were introduced and then adjusted across the amendment history.
Litigation history
The statutory text provided contains no references to judicial decisions or litigation history. There are no cases named in the Act. The Act’s marginal notes do not cite judicial interpretation or reported authority.
Consequently, within the boundaries of the provided source, there is no internal record of judicial contestation, declaratory relief or appellate rulings relating to its provisions. The Act creates private rights of compensation (s 15), ministerial and gubernatorial orders (ss 14, 16D), and statutory procedural rules (s 19), all of which are potentially justiciable in appropriate tribunals or courts. However the Act itself does not record any decisions or outcomes in litigation.
For advisory or litigation planning purposes, practitioners will need to search external case law databases and tribunal records to identify any judicial interpretation, challenges to ministerial orders under s 16D, disputes over compensation quantification under s 15 in light of the Land Acquisition Act 1993 valuation rules, or contested application of the ESI Act licensing regime to presumptively licensed persons under s 4. The Act’s text suggests potential litigation issues, including:
the scope and effect of s 7’s authorisation of pre‑existing contracts for large customers under Commonwealth competition law, and whether that statutory authorisation would be relied upon in any trade practices litigation;
the construction and enforceability of orders made under s 16D, given that such orders are statutory rules for the Rules Publication Act but not subordinate legislation under the Subordinate Legislation Act, and the consequent procedural and review implications; and
claims for compensation under s 15 and the application of the Land Acquisition Act 1993 to determine compensation entitlements.
Because the Act contains no embedded litigation history, any assessment of how courts have treated these provisions must be based on external research. The Act itself does not constrain private enforcement remedies aside from the time limits and process it establishes.
Gotchas
The Act contains several provisions and drafting features that give rise to practical hazards or traps for practitioners and clients. These are concrete, law‑driven points to watch, supported by the statutory text.
Limited window for conversion of presumptive licences. The statutory fiction of a presumptive licence terminates six months after commencement if no application for a licence under the ESI Act is made within that period (s 4(2)). Failure to apply within the window will result in loss of the presumptive legal authority to carry on regulated operations. The Act permits regulations to attach conditions to presumptive licences (s 4(3)), so operations that continue under a presumptive licence may face immediate regulatory obligations.
Short term for system controller and officer appointments. The HEC’s taken appointment as system controller lasts only 12 months (s 5(2)). Likewise, appointments of electricity officers and authorised officers taken to be made under the ESI Act expire 12 months after commencement unless revoked earlier (s 9(2), (4)). Entities must reappoint or ensure lawful continuance under the ESI Act within these tight windows or risk regulatory gaps in operational control and enforcement powers.
Tariff classification and the "relevant date" complexity. A by‑law fixing electricity charges continues as an electricity tariff until superseded (s 6(3)). For Government Prices Oversight Act purposes a continuing by‑law or a published electricity tariff is treated as a statutory rule before the "relevant date", and after the relevant date an electricity tariff published under the ESI Act is not to be regarded as a statutory rule (s 6(5)). The Act does not itself define the relevant date in the text included, so parties must identify the relevant date to know the applicable oversight regime and publication requirements. Until that relevant date certain Acts Interpretation Act provisions apply to tariffs as if they were regulations (s 6(6)), which may affect procedural requirements and legal challenge windows.
Contractual authorisation is narrow and retrospective. Section 7 authorises certain HEC contract terms for the purposes of Commonwealth trade practices law, but it applies only to customers who had rights to draw electricity at 50 MW or above and to contracts entered into before commencement (s 7(1)-(3)). New contracts, or contracts with customers below the threshold, are not covered. Practitioners should not assume a broad immunity from competition law.
Water entitlement agreements cannot extinguish HEC obligation. Section 16C(5) makes clear that a water entitlement agreement cannot validly provide for suspension, relinquishment, phased reduction or extinction of HEC’s obligation to make water available under s 16B(1). Any agreement purporting to do so is void and unenforceable to that extent. Parties cannot contract the HEC out of its obligation in whole or in part by private agreement.
Ministerial orders can be programmed to override other enactments and are not subordinate legislation. Section 16D(5)(d) provides that an order has effect according to its terms and that inconsistency with a pre‑existing enactment does not invalidate the order. Section 16D(6)(a) makes the order a statutory rule for the Rules Publication Act but s 16D(6)(b) disapplies the Subordinate Legislation Act 1992. This combination means orders can have broad effect and may be subject to a different oversight and review regime than ordinary subordinate legislation, which has implications for judicial review or parliamentary tabling processes.
Compensation assessment link to Land Acquisition Act. Compensation for salinity loss is to be assessed on the Land Acquisition Act 1993 basis (s 15(2)). That provides a valuation methodology but may also import procedural complexity, including valuation techniques and time periods. Claimants and respondents need to understand Land Acquisition Act mechanics when quantifying damages or negotiating settlements.
Repeals do not terminate construction completion rights but do require regulation compliance. Section 18 allows HEC to continue and complete works authorised by repealed construction Acts "in accordance with the regulations". The right to complete is not unconditional; regulations may impose controls. Projects that had regulatory approvals under repealed Acts must now operate with regulatory scrutiny under new regulations made under this Act.
Disparate expiry rules for permits. Instruments continued under s 8 continue but expire either at the end of their term or one year after commencement, whichever is earlier (s 8(2)). Parties holding long tenure instruments that are not promptly renewed may see them lapse earlier than anticipated.
Delegation and regulation‑making. Section 19(4) permits regulations to authorise matters to be determined by the Minister or nominated officers. This can create operational delegation chains and discretionary administrative points that need careful contract and operational design attention.
Definitions with practical effect. The Act’s interpretation section contains detailed definitions that shape who is an "owner" (including the Minister or authority for unalienated Crown land) and what the "former Act" and "complementary legislation" are (s 3). Practitioners should trace land ownership or management status against the definition of owner when advising on entitlements or compensation.
These "gotchas" are not speculative policy critiques, they are practical legal features that will influence operational choices, timing, contract drafting, regulatory strategy and dispute risk. They highlight the importance of mapping the transitional timelines, identifying which instruments need to be renewed or converted, and understanding the special status of ministerial orders and tariff classification under the Act.
How to comply
This section sets out a practical compliance checklist and sequencing for the principal affected parties. It organises immediate actions, medium term steps and monitoring tasks, referencing the statutory deadlines and decision nodes.
Immediate (within days to weeks)
Identify whether operations were lawfully carried on immediately before the Act’s commencement. If so, determine whether you are covered by the presumptive licence (s 4(1)). Document the nature of the previous activity, the operative instruments under the former Act, and whether the operation is of the "same kind" or authorised by regulation.
Lodge licence applications under the ESI Act if you wish to retain authority to carry on regulated operations beyond the six month presumptive licence window. The presumptive licence terminates six months after commencement if no application is made (s 4(2)). Prepare and submit complete applications early to avoid operational gaps.
For HEC: confirm and document system controller functions and ensure continuity of operational protocols for the 12 month presumptive period (s 5(1)-(2)). Ensure that operational staff, control room procedures and contractual commitments reflect the carried‑over system controller status.
For HEC: immediate review of water release obligations and infrastructure. Confirm that the Huon River release valve capacity (2 832 litres per second) is maintained and that procedures are in place to implement water releases under any existing agreement with the Water Minister, or to respond to a Governor’s determination in default (s 14(1)(a)-(b)). Review record keeping for income and expenditure from releases, since sharing arrangements are to be determined by the Governor (s 14(2)).
For holders of permits, licences or approvals under the former Act: compile an inventory of instruments and their expiry dates, and note which instruments have equivalents under the ESI Act to benefit from the continuity provision (s 8(1)). Prioritise renewal applications where the instrument term ends or will otherwise expire within the one year transitional window (s 8(2)).
Short to medium term (1-12 months)
Submit regulatory licence and permit renewals or conversion applications to the ESI Act Regulator. Many transitional devices expire at six months or 12 months; take action early to secure continuity (ss 4(2), 5(2), 9(2), 9(4), 8(2)).
If you hold appointments as an electricity officer or authorised officer under the former Act, liaise with the HEC or the Regulator to secure reappointment or new appointment under the ESI Act before the 12 month expiry (s 9).
For HEC and affected entitlement holders: engage with the Water Minister about water entitlement agreements and orders under ss 16C-16D. If a water entitlement agreement exists or is to be negotiated, seek Water Minister approval per s 16C(2) to validate the agreement, and press for timely orders under s 16D(2) to confer authorisations to take water and fix amounts under the relevant water statute.
For entitlement holders relying on transitional supply: document the pre‑2011 obligations and amounts to ensure the entitlement under s 16E is properly evidenced while awaiting a s 16D order. Ensure authorisations under the Irrigation Clauses Act 1973 or the Water Management Act are in place or seek confirmation from the Water Minister (s 16E).
For parties to pre‑existing HEC contracts affecting large customers: review contract terms that would otherwise restrict re‑supply or result in price discrimination, and confirm whether the contract falls within s 7’s authorisation (rights to draw at 50 MW or above and contracts entered into before commencement). If so, ensure contractual performance aligns with any ESI Act provisions that may apply going forward, and document reliance on the statutory authorisation where necessary.
For owners or occupiers of land in the Huon valley who believe they may suffer salinity loss: compile evidence of loss (scientific assessments, water quality records, crop or stock impacts, property valuation impacts) in anticipation of a compensation claim under s 15. Understand that compensation is assessed on the Land Acquisition Act 1993 basis (s 15(2)), so obtain valuation advice consistent with that Act’s methodology.
Ongoing monitoring and governance
Monitor the Rules Publication Act registry for orders made under s 16D(2), which will be statutory rules subject to publication (s 16D(6)(a)). Once orders are published, review their terms for quantities, conditions, water district appointments and limitations.
Track regulations made under s 19. The Governor’s regulations may create offences and conditions for continued operation; read regulations for any conditions attached to presumptive licences under s 4(3), penalties (s 19(3)), and delegated determination powers (s 19(4)).
For HEC and affected parties: establish procedures to allocate and document shared income and expenditure from required water releases under s 14(2), including accounting controls in case the Governor fixes sharing proportions. Maintain records of decisions and interactions with the Water Minister and the Governor.
Maintain a schedule of expiry dates. Presumptive and carried‑over rights have fixed expiry windows (six months for presumptive licences, 12 months for system controller and officer appointments, one year for continued permits) and should be calendared and assigned to responsible officers.
Review tariffs and price oversight treatment. Identify the "relevant date" referenced in s 6(5) for Government Prices Oversight Act treatment and ensure compliance with publication and price oversight obligations up to and after that date. Confirm whether electricity tariffs are to be treated as statutory rules or not on and after the relevant date.
Legal risk and review paths. Recognise that orders under s 16D are statutory rules for publication but not subordinate legislation under the Subordinate Legislation Act (s 16D(6)), which may affect review pathways. Seek legal advice early if a ministerial order appears inconsistent with other statutes or poses practical issues.
Practical checklist for key actors
HEC: apply for ESI Act licences, maintain release valve and operational protocols, document water releases, engage with Water Minister on entitlements and orders, prepare for compensation exposure under s 15, and plan for completion of construction works under s 18 in accordance with any regulations.
Entitlement holders: assemble evidence of pre‑existing entitlements, obtain Water Minister approval or seek orders under s 16D, and ensure authorisations under Irrigation Clauses Act or Water Management Act are secured.
Operators previously authorised by the former Act: inventory former instruments, apply for ESI Act equivalents, and renew permits within the one year window where applicable.
Large customers with pre‑existing contracts: confirm whether contracts are within s 7’s authorisation and document reliance; review future contract drafts to reflect the ESI Act regime.
Landowners in the Huon valley: monitor water quality, document loss, and be prepared to pursue compensation under s 15 with valuation advice tied to the Land Acquisition Act.
Compliance under this Act is primarily administrative and time sensitive. The dominant practical risks are missing statutory windows leading to licence or appointment lapses, failing to secure ministerial orders that quantify entitlements, and inadequate record keeping to support compensation claims. Address these by assigning responsible officers, creating a compliance calendar keyed to the statutory expiries and orders, and by seeking approvals and renewals early.
(b) in any other case, the Minister, authority or person responsible for the management of the land;
[Section 3 Amended by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
regulated operations means operations in the electricity supply industry for which a licence is required under the ESI Act ;
Regulator means the person holding office as the Regulator under the ESI Act ;
[Section 3 Amended by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
Part 2 Transitional Provisions
Part 2 Transitional Provisions
4 Presumptive licensing
4 Presumptive licensing
(1) A person who was, immediately before the commencement of this Act, lawfully carrying on operations in the electricity supply industry is taken to be licensed under the ESI Act to carry on regulated operations in the electricity supply industry if –
(a) the person was carrying on operations of the same kind immediately before the commencement of this Act; or
(b) the person is authorised by regulation to carry on the operations.
(2) A presumptive licence under subsection (1) terminates 6 months after the commencement of this Act if the person makes no application for a licence under the ESI Act within that period and, if an application is made for a licence under that Act, the presumptive licence terminates when the application is finally decided.
(3) The regulations may prescribe conditions to which a presumptive licence under this section is subject.
5 Presumptive appointment as system controller
5 Presumptive appointment as system controller
(1) On the commencement of this Act, the HEC is taken to have been appointed under the ESI Act as the system controller for all power systems operated by it immediately before the commencement of this Act.
(2) An appointment under this section continues for 12 months after the commencement of this Act.
6 Regulations and by-laws
6 Regulations and by-laws
(1) A regulation in force under the former Act immediately before the commencement of this Act continues in force, subject to amendment or revocation under the ESI Act or this Act, as a regulation under the ESI Act .
(2) Subject to subsections (3) and (4) , a by-law in force under the former Act immediately before the commencement of this Act continues in force, subject to amendment or revocation under the ESI Act or this Act, as a regulation under the ESI Act .
(3) A by-law fixing charges for electricity in force under the former Act immediately before the commencement of this Act continues in force as an electricity tariff under the ESI Act until it is superseded by an electricity tariff published under the ESI Act .
(4) A by-law fixing charges for electricity that continues in force under subsection (3) or an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC is to be regarded as a tariff by-law for the purposes of the Hydro-Electric Commission (Contributions) Act 1980 .
(5) For the purposes of the Government Prices Oversight Act 1995 –
(a) a by-law fixing charges for electricity that continues in force under subsection (3) or an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC is, before the relevant date, to be regarded as a statutory rule; and
(b) on and after the relevant date, an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC is not to be regarded as a statutory rule.
(6) Until the relevant date, section 47(3) , (3A) , (4) , (5) , (6) and (7) of theActs Interpretation Act 1931 applies to an electricity tariff published under the ESI Act fixing prices and conditions for the sale of electricity by the HEC as if the tariff were regulations within the meaning of that Act.
(7) Notwithstanding section 36(3)(b) of theGovernment Prices Oversight Act 1995 , an order may be made specifying maximum prices for electricity under section 36 of that Act without amendment to this Act or the complementary legislation.
(8) A regulation or by-law that continues in force under this section must be read subject to any adaptations and modifications that are necessary for its continued operation under the ESI Act .
(9) In this section, relevant date means the date when the first order affecting the prices that may be charged by the HEC for electricity takes effect under the Government Prices Oversight Act 1995 .
7 Contracts
7 Contracts
(1) This section applies to a customer who has contractual rights (which may be aggregate rights arising under 2 or more separate contracts) to draw electricity from a power system at a rate of 50 megawatts or above.
(2) If, before the commencement of this Act, the HEC entered into a contract for the supply of electricity to a customer to which this section applies –
(a) on conditions prohibiting or restricting the re-supply of the electricity; or
(b) on conditions providing for price discrimination according to whether the electricity is, or is not, to be re-supplied –
the contractual conditions and anything done to enforce the conditions are, for the purposes of section 51 of theTrade Practices Act 1974 of the Commonwealth, authorised by this Act.
(3) If, before the commencement of this Act, the HEC entered into contracts with one or more customers to which this section applies and it appears from comparison of the conditions of the contracts that there is price discrimination according to whether the electricity is, or is not, re-supplied, the contractual conditions and anything done to enforce the conditions are, for the purposes of section 51 of theTrade Practices Act 1974 of the Commonwealth, authorised by this Act.
8 Permits, licences, authorisations and approvals
8 Permits, licences, authorisations and approvals
(1) Subject to subsection (2) , if a permit, licence, authorisation or approval was in force under the former Act immediately before the commencement of this Act, and the ESI Act contains provision for a similar kind of permit, licence, authorisation or approval, it continues in force, subject to the ESI Act , as if granted under the corresponding provision of the ESI Act .
(2) Unless renewed under the ESI Act , a permit, licence, authorisation or approval that continues in force under subsection (1) expires –
(a) at the end of the term for which it was granted or last renewed; or
(b) one year after the commencement of this Act –
whichever is the earlier.
9 Electricity officers and authorised officers
9 Electricity officers and authorised officers
(1) An officer appointed by the HEC to exercise powers under section 58 of the former Act is, on the commencement of this Act, taken to have been appointed an electricity officer for the purposes of the ESI Act .
(2) An appointment under subsection (1) expires, unless revoked earlier by the HEC, 12 months after the commencement of this Act.
(3) A person appointed by the HEC to exercise powers for the purposes of regulations under section 61 or 62 of the former Act is, on the commencement of this Act, taken to have been appointed as an authorised officer for the purposes of the ESI Act .
(4) An appointment under subsection (3) expires, unless revoked earlier by the Regulator, 12 months after the commencement of this Act.
Part 3
[Part 3 Repealed by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
10.
[Section 10 Repealed by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
11.
[Section 11 Repealed by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
12.
[Section 12 Repealed by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
13.
[Section 13 Repealed by No. 64 of 2000, s. 15, Applied:14 Nov 2000]
Part 4 Continuing obligations related to water management
Part 4 Continuing obligations related to water management
Division 1 The Huon and Serpentine Rivers
Division 1 The Huon and Serpentine Rivers
14 The HEC's obligations
14 The HEC's obligations
(1) The HEC –
(a) must maintain a release valve with a capacity of not less than 2 832 litres per second so that water may be released down the Huon River from the structures that were established under the Hydro-Electric Commission (Power Development) Act 1967 ; and
(b) must release water into the Huon River as required by –
(i) [Section 14 Subsection (1) amended by No. 45 of 1999, Sched. 6, Applied:01 Jan 2000] an agreement between the HEC and the Minister; or
(ii) [Section 14 Subsection (1) amended by No. 45 of 1999, Sched. 6, Applied:01 Jan 2000] in default of agreement, a determination made by the Governor after considering representations from both the HEC and the Minister; and
(c) must not allow the conserved waters of the Serpentine River to rise to more than 308·46 metres above sea level or to fall to less than 306·93 metres above sea level, or a lower level authorised under subsection (3) .
(2) [Section 14 Subsection (2) amended by No. 45 of 1999, Sched. 6, Applied:01 Jan 2000] Any income, expenditure or loss resulting from the release of water under subsection (1)(b) must be shared between the HEC and the Minister in proportions determined by the Governor.
(3) The Governor may, by order published in the Gazette, authorise the HEC to allow the conserved waters of the Serpentine River to fall to a level that is not less than 305·41 metres above sea level.
(4) [Section 14 Subsection (4) inserted by No. 45 of 1999, Sched. 6, Applied:01 Jan 2000] In this section,
Minister means the Minister administering the Water Management Act 1999 .
15 Entitlement to compensation
15 Entitlement to compensation
(1) An owner or occupier of land on, or in the valley of, the Huon River who suffers loss from an increase in the salinity of the waters of the Huon River or of the underground waters affected by it because the river's flow has been diminished by –
(a) works for the conservation of its waters that were carried out under the Hydro-Electric Commission (Power Development) Act 1967 ; or
(b) the use or management of those works –
is entitled to compensation for the loss from the HEC.
(2) The compensation is to be assessed on the same basis as compensation under the Land Acquisition Act 1993 .
Division 2 The Lake River and River Ouse
Division 2 The Lake River
This is an opening excerpt, not the complete document.