118AYMinisterial order

118AY Ministerial order

118AY Ministerial order

(1) Following the making of a mandatory operation direction, the Minister must, by 1 or more written orders made in accordance with the Rules, direct that the payments set out in the order—

(a) be made by the financial vehicle to a MOD generator; or

(b) be made—

(i) by the financial vehicle to a MOD generator; and

(ii) by a MOD generator to the financial vehicle.

(2) A payment order may specify the payments a MOD generator is to receive for the following—

(a) the reasonable costs directly related to operating and maintaining the relevant MOD generating unit and, in accordance with the Rules, a fair margin on those costs;

(b) a risk management margin, including risks associated with the relevant MOD generating unit being inoperable for 1 or more periods of time;

(c) other costs prescribed by the Rules.

(3) Payments for subsection (2) must be determined by the AER in accordance with the Rules.

(4) The Rules may make provision for the following—

(a) the period of time in which payments under a payment order must be made, including periods before or after the applicable mandatory operation period;

(b) additional matters to be dealt with in a payment order;

(c) circumstances in which the Minister must amend a payment order;

(d) other matters that may be addressed in a generator payment instrument.

(5) A MOD generator does not, by complying with a payment order, incur liability for breach of contract, breach of confidence or any other civil wrong.

(6) A person subject to a payment order must comply with the order.

Note—

This subsection is a civil penalty provision: See the definition of civil penalty provision in section 2AA(1).

(7) The Minister may amend a payment order by revoking the order and making a new order.