National Electricity (South Australia) Act 1996

Subdivision 3—Market monitoring information notices and market monitoring information orders 18EC Definitions 18ED Urgent notices and urgent orders 18EE Content of notices and orders 18EF Notices and orders may be made for both past and future information 18EG Making and serving notices and orders 18EH AER must consult before making order 18EI Publication of orders 18EJ Opportunity to be heard before notice served 18EK Compliance with notice 18EL Compliance with order 18EM Certification of compliance by statutory declaration 18EN Subdivision does not limit powers under Division 3

Subdivision 4—Miscellaneous 18EO Wholesale market monitoring guidelines 18EP Review of wholesale market monitoring powers Division 1B—Rate of return instrument Subdivision 1—Preliminary 18F Definitions 18G Rate of return instrument has force of law 18H Rate of return instrument is binding on AER and network service providers Subdivision 2—Requirement to make rate of return instrument 18I AER to make rate of return instrument 18J Content of rate of return instrument Subdivision 3—Consultation requirements 18K Process for making rate of return instrument 18L Other matters AER must have regard to in making instrument 18M Requirements before publishing draft instrument 18N Consumer reference group 18O Publication of draft instrument and other information 18P Report about draft instrument by independent panel 18Q Publication of explanatory information 18R Failure to comply does not affect validity Subdivision 4—Publication, review and other matters 18S Publication of rate of return instrument 18T Commencement and duration of instrument 18U Review and replacement of instrument 18V Application of instrument 18W Rate of return instrument may apply for this Law and the National Gas Law Subdivision 5—Confidentiality of information 18X Confidentiality 18Y Disclosure of information given in confidence Division 1C—Retailer Reliability Obligation—AER compliance regime 18Z Definitions 18ZA Obligation of AER to monitor compliance 18ZB Obligation of regulated entities to establish arrangements to monitor compliance 18ZC Obligation of regulated entities to keep records 18ZD Obligation of regulated entities to provide information and data about compliance 18ZE Compliance audits by AER 18ZF Compliance audits by regulated entities 18ZG Carrying out compliance audit 18ZH Use of information 18ZI Reliability Compliance Procedures and Guidelines

Division 1D—AER trial waiver functions 18ZJ Definitions 18ZK Interpretative matters 18ZL Trial waiver 18ZM Conditions of trial waiver 18ZN Consultation on trial waiver 18ZO Publication etc of trial waiver 18ZP Duration of trial waiver 18ZQ Extension of trial waiver 18ZR Compliance with trial waiver 18ZS Revocation of trial waiver 18ZT Other matters Division 2—Search warrants 19 Definitions 20 Authorised person 20A Identity cards 20B Return of identity cards 21 Search warrant 22 Announcement of entry and details of warrant to be given to occupier or other person at premises 23 Announcement before entry 24 Copies of seized documents 25 Retention and return of seized documents or things 26 Extension of period of retention of documents or things seized 27 Obstruction of person authorised to enter Division 3—General information gathering powers 28 Power to obtain information and documents in relation to performance and exercise of functions and powers Division 4—Regulatory information notices and general regulatory information orders 28A Definitions 28B Meaning of contributing service 28C Meaning of general regulatory information order 28D Meaning of regulatory information notice 28E Division does not limit operation of information gathering powers under Division 3 Subdivision 2—Serving and making of regulatory information instruments 28F Service and making of regulatory information instruments 28G Additional matters to be considered for related provider regulatory information instruments 28H AER must consult before publishing a general regulatory information order 28I Publication requirements for general regulatory information orders 28J Opportunity to be heard before regulatory information notice is served Subdivision 3—Form and content of regulatory information instruments 28K Form and content of regulatory information instrument 28L Further provision about the information that may be specified in a regulatory information instrument 28M Further provision about manner in which information must be provided to AER or kept Subdivision 4—Compliance with regulatory information instruments 28N Compliance with regulatory information notice that is served 28O Compliance with general regulatory information order 28OA Confidentiality issues 28OB Disclosure of information given to AER in compliance with regulatory information instrument 28P Exemptions from compliance with general regulatory information order 28Q Assumptions where there is non-compliance with regulatory information instrument Subdivision 5—General 28R Providing to AER false and misleading information 28S Person cannot rely on duty of confidence to avoid compliance with regulatory information instrument 28T Legal professional privilege not affected 28U Protection against self-incrimination Division 5—Network service provider performance reports 28V Preparation of network service provider performance reports Division 6—Disclosure of confidential information held by AER 28W Authorised disclosure of information given to the AER in confidence 28X Disclosure with prior written consent is authorised 28Y Disclosure for purposes of court and tribunal proceedings and to accord natural justice 28YA Disclosure of information to Energy Security Board 28Z Disclosure of information given to the AER with confidential information omitted 28ZA Disclosure of information given in confidence does not identify anyone 28ZAA Disclosure of information in an aggregated form 28ZAB Disclosure of information that has entered the public domain 28ZB Disclosure of information authorised if detriment does not outweigh public benefit

Division 7—Miscellaneous matters 28ZC Consideration by the AER of submissions made to it under this Law 28ZD Use of information provided under a notice under section 28 or a regulatory information instrument 28ZE AER to inform certain persons of decisions not to investigate breaches, institute proceedings or serve infringement notices 28ZF AER Guidelines 28ZG AER must report to MCE if it does not make network revenue or pricing determination within time 28ZH Single documentation 28ZI Use of information Part 4—Functions and powers of the Australian Energy Market Commission 29 Functions and powers of the AEMC 30 Delegations 31 Confidentiality 32 AEMC must have regard to national electricity objective 32A Targets statement for greenhouse gas emissions targets 33 AEMC must have regard to MCE statements of policy principles in relation to Rule making and reviews Division 2—Rule making functions and powers of the AEMC 34 Rule making powers 35 Rules relating to MCE or Ministers of participating jurisdictions require MCE consent 36 AEMC must not make Rules that create criminal offences or impose civil penalties for breaches 37 Documents etc applied, adopted and incorporated by Rules to be publicly available Division 3—Committees, panels and working groups of the AEMC 38 The Reliability Panel 39 Establishment of committees and panels (other than the Reliability Panel) and working groups Division 4—MCE directed reviews 41 MCE directions 42 Terms of reference 43 Notice of MCE directed review 44 Conduct of MCE directed review Division 5—Other reviews 45 Reviews by AEMC 46 AEMC must publish and make available up to date versions of Rules 47 Fees 48 Confidentiality of information Part 5—Role of AEMO under National Electricity Law 49 AEMO's statutory functions 49A AEMO's power to carry out statutory functions 49B Delegation Division 2—AEMO's adoptive jurisdiction functions 50 Application of this Division 50A AEMO to account to relevant Minister for performance of adoptive functions Subdivision 2—AEMO's additional advisory functions 50B Additional advisory functions Subdivision 3—AEMO's declared network functions 50C AEMO's declared network functions 50D Network agreement 50E Connection agreements 50F Augmentation 50G AEMO to have qualified exemption for performing statutory functions 50H Resolution of dispute arising from attempt to negotiate a network agreement or augmentation connection agreement 50J General principles governing determinations Division 3—Information etc to be provided to Ministers 51 Ministerial request 51A Compliance with request 51B Quarterly report Division 4—Fees and charges 52 AEMO fees and charges Division 5—Information gathering 53 Information gathering powers 53A Making and publication of general market information order 53B Service of market information notice 53C Compliance with market information instrument 53D Use of information 53E Providing false or misleading information Division 6—Protected information Subdivision 1—AEMO's obligation to protect information 54 Protected information Subdivision 2—Disclosure of protected information held by AEMO 54A Authorised disclosure of protected information 54B Disclosure with prior written consent 54C Disclosure required or permitted by law etc 54CA Authorised disclosure to particular entities for data sharing purposes 54CB Disclosure of protected information by officer or employee of, or consultant to, AEMO 54D Disclosure for purposes of court and tribunal proceedings 54E Disclosure of document with omission of protected information 54F Disclosure of non-identifying information 54FA Disclosure of information in an aggregated form 54G Disclosure of protected information for safety, proper operation of the market etc 54H Disclosure of protected information authorised if detriment does not outweigh public benefit Division 7—AEMO's statutory funds 55 Definitions 55A AEMO's Rule funds 55B Payments into and out of Rule funds 55C Investment Part 5A—Functions and powers of Minister of this participating jurisdiction 57A Functions and powers of Minister of this participating jurisdiction Part 5B—Functions and powers of Tribunal 57B Functions and powers of Tribunal under this Law Part 6—Proceedings under the National Electricity Law 59 Instituting civil proceedings under this Law Division 1A—Enforceable undertakings 59A Enforceable undertakings Division 2—Proceedings by the AER in respect of this Law, the Regulations and the Rules 60 Time limit within which AER may institute proceedings 61 Proceedings for breaches of a provision of this Law, the Regulations or the Rules that are not offences 61A Proceedings for declaration that a person has breached a conduct provision 61B Actions for damages by persons for breach of conduct provisions 62 Additional Court orders 63 Orders for disconnection in certain circumstances where there is no breach 64 Matters for which there must be regard in determining amount of civil penalty 65 Breach of a civil penalty provision is not an offence 66 Breaches of civil penalty provisions involving continuing failure 67 Conduct in breach of more than one civil penalty provision 67A Conduct in breach of reliability obligation civil penalty provision 68 Persons involved in breach of civil penalty provision or conduct provision 68A Attempt to breach civil penalty provision 69 Civil penalties payable to the Commonwealth Division 2A—Proceedings before, and awards etc of, Dispute resolution panels 69A Commercial Arbitration Acts apply to proceedings before Dispute resolution panels Division 3—Judicial review of decisions and determinations under this Law, the Regulations and the Rules 70 Applications for judicial review 71 Appeals on questions of law from decisions or determinations of Dispute resolution panels Division 3A—Merits review and other non-judicial review 71A Definitions Subdivision 3—Tribunal review of information disclosure decisions 71S Application for review 71T Exclusion of public in certain cases 71U Determination in the review 71V Tribunal must be taken to have affirmed decision if decision not made within time 71W Assistance from AER or AEMO Subdivision 4—General 71X Costs in a review 71Y Amount of costs Division 3B—Enforcement of access determinations 71ZA Enforcement of access determinations 71ZB Consent injunctions 71ZC Interim injunctions 71ZD Factors relevant to granting a restraining injunction 71ZE Factors relevant to granting a mandatory injunction 71ZF Discharge or variation of injunction or other order Division 4—Other civil proceedings 72 Obligations under Rules to make payments Division 5—Infringement notices 73 Definitions 74 Power to serve a notice 75 Form of notice 76 Infringement penalties 77 AER cannot institute proceedings while infringement notice on foot 78 Late payment of penalty 79 Withdrawal of notice 80 Refund of infringement penalty 81 Payment expiates breach of civil penalty provision 82 Payment not to have certain consequences 83 Conduct in breach of more than one civil penalty provision 85 Offences and breaches by corporations 86 Corporations also in breach if officers and employees are in breach Part 7—The making of the National Electricity Rules 87 Definitions Subdivision 2—Rule making tests 88 Application of national electricity objective 88A AEMC must take into account form of regulation factors in certain cases 88B AEMC must take into account revenue and pricing principles in certain cases 88C AEMC must take into account innovative trial principles in certain cases 89 AEMC must have regard to certain matters in relation to the making of jurisdictional derogations Division 2—Minister initiated National Electricity Rules Subdivision 1—Initial Rules made by South Australian Minister 90 South Australian Minister to make initial National Electricity Rules 90A South Australian Minister to make further Rules relating to distribution determinations consumer advocacy and other matters 90AB South Australian Minister to make initial Rules relating to consumer data right and further Rules relating to disclosure of data 90B South Australian Minister to make initial Rules related to AEMO's functions under this Law 90BA South Australian Minister may make consequential Rules relating to rate of return instrument 90C South Australian Minister to make initial Rules related to smart meters 90D South Australian Minister may make initial Rules relating to implementation of NERL and NERR 90DA South Australian Minister to make initial Rules relating to regulatory sandboxing 90E South Australian Minister to make initial Rules relating to Energy Consumers Australia 90EA South Australian Minister to make initial Rules relating to Retailer Reliability Obligation 90EB South Australian Minister to make initial Rules relating to stand‑alone power systems 90EC South Australian Minister to make initial Rules relating to Ministerial reliability instrument 90ED South Australian Minister may make initial Rules relating to national electricity objective 90EE South Australian Minister to make initial Rules relating to data access 90EF South Australian Minister to make initial Rules relating to wholesale market monitoring matters 90EG South Australian Minister to make initial Rules relating to orderly exit management 90EH South Australian Minister to make initial Rules relating to credit support for RoLR events Subdivision 2—Rules made by Minister from time to time 90F South Australian Minister may make Rules on recommendation of MCE and Energy Security Board Division 3—Procedure for the making of a Rule by the AEMC 91 Initiation of making of a Rule 91A AEMC may make more preferred Rule in certain cases 91B AEMC may make Rules that are consequential to a Rule request 92 Contents of requests for Rules 92A Waiver of fee for Rule requests 93 Consolidation of 2 or more Rule requests 94 Initial consideration of request for Rule 94A AEMC may request further information from Rule proponent in certain cases 95 Notice of proposed Rule 96 Publication of non-controversial or urgent final Rule determination 96AA Publication of final Rule determination for trial Rule 96A "Fast track" Rules where previous public consultation by electricity market regulatory body or an AEMC review 97 Right to make written submissions and comments 98 AEMC may hold public hearings before draft Rule determination 99 Draft Rule determinations 100 Right to make written submissions and comments in relation to draft Rule determination 101 Pre-final Rule determination hearings 102 Final Rule determinations 102A Proposal to make more preferable Rule 103 Making of Rule 104 Operation and commencement of Rule 104A Extension of trial Rule 104B AEMC may impose requirements on proponent of trial project on making trial Rule 104C AEMC may revoke trial Rule on recommendation of AER 104D Special provision for revocation of trial Rule 105 Rule that is made to be published on website and made available to the public 106 Evidence of the National Electricity Rules Division 4—Miscellaneous provisions relating to Rule making by the AEMC 107 Extensions of periods of time in Rule making procedure 107A AEMC may extend period of time for making of final Rule determination for further consultation 108 AEMC may publish written submissions and comments unless confidential 108A AEMC must publicly report on Rules not made within 12 months of public notification of requests 108B Subsequent rule making by AEMC Part 8—Safety and security of the National Electricity System 109 Definitions 110 Appointment of jurisdictional system security coordinator 111 Jurisdictional system security coordinator to prepare jurisdictional load shedding guidelines 112 AEMO to develop load shedding procedures for each participating jurisdiction 113 Exchange of information 114 AEMO to ensure maintenance of supply of sensitive loads 115 Shedding and restoring of loads 115A Determination of customer load shedding arrangement 116 Actions that may be taken to ensure safety and security of national electricity system 117 AEMO to liaise with Minister of this jurisdiction and others during an emergency 118 Obstruction and non-compliance Part 8AA—Orderly exit management Division 1—Preliminary 118AA Definitions 118AB Application of Part to jurisdiction

Division 2—Mandatory operation direction 118AC Generating units that may be subject to mandatory operation direction 118AD Mandatory operation direction 118AE Registered participant must comply with mandatory operation direction 118AF Minister to make information public 118AG AEMO to make information public 118AH Voluntary agreement 118AI Mandatory operation direction applies to affiliates 118AJ Amendment of mandatory operation direction 118AK Termination of mandatory operation direction 118AL Closure of generating unit after mandatory operation period 118AM Compliance with obligations after closure of generating unit

Division 3—Information and reporting 118AN AEMO and AER may disclose information 118AO Information must be given to AER 118AP AER may request other information 118AQ Information disclosure 118AR Annual performance report Division 4—Financial matters Subdivision 1—Financial vehicle 118AS Establishment and functions of financial vehicle Subdivision 2—Orderly exit management fund 118AT Establishment of orderly exit management fund 118AU Payments into orderly exit management fund 118AV Payments from orderly exit management fund 118AW Payments where mandatory operation direction not made 118AX Payments where voluntary agreement made Subdivision 3—Payments to and by MOD generators 118AY Ministerial order 118AZ Excluded matter Subdivision 4—Orderly exit management cost recovery mechanism 118AZA Orderly exit management contributions 118AZB Public notice of orderly exit management contributions 118AZC Orderly exit management payments by distribution network service providers 118AZD Cost recovery by distribution network service providers

Division 5—Miscellaneous 118AZE Minister not required to take certain actions before making mandatory operation direction 118AZF No liability for enactment or operation of Part 118AZG Review of Part 118AZH Consultation between NSW and ACT Part 8A—Smart metering services Division 1—Interpretation 118A Definitions Division 2—Ministerial pilot metering determinations 118B Ministerial pilot metering determinations 118C Consultation with interested persons required before making Ministerial pilot metering determination Division 4—Provisions applicable to Ministerial smart metering determinations 118F Compliance with Ministerial smart metering determinations 118G Minister of participating jurisdiction must consult with other participating jurisdiction Ministers 118H Content of Ministerial smart metering determinations 118I Publication and giving of Ministerial smart metering determinations 118J When Ministerial smart metering determinations take effect 118K AEMC must publish Ministerial smart metering determination it receives on its website Part 9—Immunities 119 Immunity of AEMO and network service providers 120 Immunity in relation to failure to supply electricity 120A Immunity in relation to use of computer software 120B Immunity from liability—dispute resolution 121 Immunity from personal liability of AEMC officials 122 Immunity from personal liability of Reliability Panel Part 10—Access Disputes Division 1—Interpretation and application 123 Definitions 124 Part does not limit how disputes about access may be raised or dealt with Division 2—Notification of access dispute 125 Notification of access dispute 126 Withdrawal of notification 127 Parties to an access dispute Division 3—Access determinations 128 Determination of access dispute 129 AER may require parties to mediate, conciliate or engage in an alternative dispute resolution process 130 Access determination must give effect to network revenue or pricing determination 131 AER may terminate access dispute in certain cases 132 AER must terminate access dispute if there is genuine competition 133 Restrictions on access determinations 134 Access determination need not require the provision of an electricity network service Division 4—Variation of access determinations 135 Variation of access determinations Division 5—Compliance with access determinations 136 Compliance with access determination Division 6—Access dispute hearing procedure 137 Hearing to be in private 138 Right to representation 139 Procedure of AER 140 Particular powers of AER in a hearing 141 Disclosure of information 142 Power to take evidence on oath or affirmation 143 Failing to attend as a witness 144 Failing to answer questions etc 145 Intimidation etc 146 Party may request AER to treat material as confidential 147 Costs 148 Outstanding costs are a debt due to party awarded the costs Division 7—Joint access dispute hearings 149 Definition 150 Joint dispute hearing 151 Consulting the parties 152 Constitution and procedure of AER for joint dispute hearings 153 Record of proceedings etc Division 8—Miscellaneous matters 154 Correction of access determinations for clerical mistakes etc 155 Subsequent network service provider bound by access determinations 156 Regulations about the charges to be paid by parties to access dispute for AER's costs in dispute hearing Part 11—General 157 Preventing or hindering access 158 Failure to make a decision under this Law or the Rules within time does not invalidate the decision 159 Penalty privilege 160 Court may grant relief from liability Schedule 1—Subject matter for the National Electricity Rules Schedule 2—Miscellaneous provisions relating to interpretation 1 Displacement of Schedule by contrary intention Part 2—General 2 Law to be construed not to exceed legislative power of Legislature 2A Changes of drafting practice not to affect meaning 3 Every section to be substantive enactment 4 Material that is, and is not, part of Law 5 References to particular Acts and to enactments 6 References taken to be included in Act or Law citation etc 7 Interpretation best achieving Law's purpose 8 Use of extrinsic material in interpretation 9 Compliance with forms Part 3—Terms and references 10 Definitions 11 Provisions relating to defined terms and gender and number 12 Meaning of may and must etc 13 Words and expressions used in statutory instruments 14 References to Minister 15 Production of records kept in computers etc 16 References to this jurisdiction to be implied 17 References to officers and holders of offices 18 Reference to certain provisions of Law Part 4—Functions and powers 19 Performance of statutory functions 20 Power to make instrument or decision includes power to amend or repeal 21 Matters for which statutory instruments may make provision 22 Presumption of validity and power to make 23 Appointments may be made by name or office 24 Acting appointments 25 Powers of appointment imply certain incidental powers 26 Delegation 27 Exercise of powers between enactment and commencement Part 5—Distance and time 28 Matters relating to distance and time Part 6—Service of documents 29 Service of documents and meaning of service by post etc 30 Meaning of service by post etc Part 6A—Evidentiary matters Division 1—Publication on websites 31AA Definitions 31AB Publication of relevant AER decisions on websites Division 2—Evidentiary certificates 31AC Definitions 31AD Evidentiary certificates—AER 31AE Evidentiary certificates—AEMC 31AF Evidentiary certificates—AEMO

Part 6B—Commencement of this Law and Statutory instruments 31AH Time of commencement of this Law or a provision of this Law 31AI Time of commencement of a Rule Part 7—Effect of repeal, amendment or expiration 31 Time of Law, the Regulations or Rules ceasing to have effect 32 Repealed Law, Regulation or Rule provisions not revived 33 Saving of operation of repealed Law, Regulation or Rule provisions 34 Continuance of repealed provisions 35 Law and amending Acts to be read as one Part 8—Offences under this Law 36 Penalty at end of provision 37 Penalty other than at end of provision 37A Indexation of civil penalty amounts 37B Indexation of criminal penalties 38 Indictable offences and summary offences 39 Double jeopardy 40 Aiding and abetting, attempts etc Part 9—Instruments under this Law 41 Schedule applies to statutory instruments 41A Rate of return instrument construed not to exceed the legislative power of the Legislature of this jurisdiction or the powers conferred by this Law 41B Reliability instrument construed not to exceed the legislative power of the Legislature of this jurisdiction or the powers conferred by this Law 42 National Electricity Rules to be construed so as not to exceed the legislative power of the Legislature of this jurisdiction or the powers conferred by this Law 43 Invalid Rules 43A Invalid rate of return instrument Schedule 3—Savings and transitionals Part 1—General 1 Definitions Part 2—General savings provision 2 Saving of operation of old National Electricity Law Part 3—National Electricity Code changes 3 Current Code change and derogation proposals to be dealt with under this Law 4 Current jurisdictional derogation proposals to be made under this Law 4A Transitional arrangements relating to additional Minister initiated Rules Part 4—Registration 5 Code participants deemed to be Registered participants 6 Exemptions Part 5—References to the National Electricity Code and specific provisions or terms 7 References to the National Electricity Code 8 References to provisions of the National Electricity Code 9 References to Code participants Part 6—Investigations and proceedings 10 Investigations into breaches and possible breaches of the Code 10A AER may conduct investigations into breaches or possible breaches of NEL not investigated by NECA 10B AER may bring proceedings in relation to breaches of National Electricity Code in the Court Part 7—Funds 11 Civil penalties fund Part 8—Other 12 Continuation of Reliability Panel 13 Jurisdictional system security coordinator 14 Rights under certain change of law provisions in agreements or deeds not to be triggered 15 Certain undertakings to cease effect on commencement day Part 9—Tasmanian participation in the national electricity market 16 Jurisdictional derogations relating to Tasmania's entry into national electricity market 17 Definition of national electricity system to permit Tasmania to participate in national electricity market before commissioning of Basslink 18 Operation and effect of Rule 6A.21.2 of the National Electricity Rules Part 10—Transitional provisions related to AEMO amendments 19 Definitions 20 Interaction between this Part and jurisdictional transitional arrangements 21 Recovery of costs of transition 22 Transitional special project expenditure 23 Interpretation of obsolete references Part 11—Application of National Energy Retail Law amendments 24 Application of National Energy Retail Law amendments Part 12—Transitional provision related to ECA amendments 25 Transitional provision—AEMO's consumer advocacy funding obligation Part 13—Information publication 26 Information publication Part 14—Transitional provision related to AER wholesale market reporting functions 27 Transitional provision related to AER wholesale market reporting functions Part 15—Transitional provision related to AEMC rule making powers 28 AEMC rule making powers Part 16—Transitional provisions for rate of return instrument 29 Definitions 30 Making first rate of return instrument if review not completed before commencement 31 Making first rate of return instrument if review completed before commencement 32 Application of this Law to particular decisions Part 17—Savings and transitional provisions related to Ministerial Council on Energy amendments 33 Definitions 34 References to Ministerial Council on Energy 35 Rights under certain change of law provisions in agreements or deeds not to be triggered 36 Rights under contracts etc 37 Saving of decisions etc Part 18—Transitional provisions related to national electricity objective amendments 38 Definitions 39 When amended objective takes effect for particular matters 40 Application of national electricity objective to particular matters in progress on start day 41 Administrative guidance about decisions under clause 40(3) 42 Administrative guidance about value of greenhouse gas emissions 43 Validation of things done in relation to Rules before commencement Legislative history

The Parliament of South Australia enacts as follows: 1—Short title This Act may be cited as the National Electricity (South Australia) Act 1996. 3—Interpretation (1) In this Act— National Electricity (South Australia) Law means the provisions applying because of section 6 of this Act; National Electricity (South Australia) Regulations means the provisions applying because of section 7 of this Act. (2) Words and expressions used in the National Electricity (South Australia) Law and in this Act have the same respective meanings in this Act as they have in that Law. (3) Subsection (2) does not apply to the extent that the context or subject matter otherwise indicates or requires. 4—Crown to be bound This Act, the National Electricity (South Australia) Law and the National Electricity (South Australia) Regulations bind the Crown, not only in right of South Australia but also, so far as the legislative power of the Parliament permits, the Crown in all its other capacities. 5—Extra-territorial operation It is the intention of the Parliament that the operation of this Act, the National Electricity (South Australia) Law and the National Electricity (South Australia) Regulations should, so far as possible, include operation in relation to the following: (a) land situated outside South Australia, whether in or outside Australia; (b) things situated outside South Australia, whether in or outside Australia; (c) acts, transactions and matters done, entered into or occurring outside South Australia, whether in or outside Australia; (d) things, acts, transactions and matters (wherever situated, done, entered into or occurring) that would, apart from this Act, be governed or otherwise affected by the law of the Commonwealth, another State, a Territory or a foreign country.

Part 2—National Electricity (South Australia) Law and National Electricity (South Australia) Regulations 6—Application in South Australia of National Electricity Law The National Electricity Law set out in the Schedule to this Act, as in force for the time being— (a) applies as a law of South Australia; and (b) as so applying may be referred to as the National Electricity (South Australia) Law. 7—Application of regulations under National Electricity Law The regulations in force for the time being under Part 4 of this Act— (a) apply as regulations in force for the purposes of the National Electricity (South Australia) Law; and (b) as so applying may be referred to as the National Electricity (South Australia) Regulations. 8—Interpretation of some expressions in National Electricity (South Australia) Law and National Electricity (South Australia) Regulations (1) In the National Electricity (South Australia) Law and the National Electricity (South Australia) Regulations— the jurisdiction or this jurisdiction means the State of South Australia; Legislature of this jurisdiction means the Parliament of South Australia; the National Electricity Law or this Law means the National Electricity (South Australia) Law; Supreme Court means the Supreme Court of South Australia. (2) The Acts Interpretation Act 1915 does not apply to the National Electricity (South Australia) Law or the National Electricity (South Australia) Regulations.

Part 4—Making of regulations and rules under National Electricity Law 10—Definitions National Electricity Law means the National Electricity Law set out in the Schedule to this Act as in force for the time being. 11—General regulation-making power for National Electricity Law (1) The Governor may make such regulations as are contemplated by, or necessary or expedient for the purposes of, the National Electricity Law. (2) Regulations under this Part may— (b) vary according to the persons, times, places or circumstances to which they are expressed to apply. (3) Regulations under this Part may be made only on the unanimous recommendation of the Ministers of the participating jurisdictions. (5) Section 10 of the Legislative Instruments Act 1978 does not apply to a regulation under this Part. 12—Specific regulation-making power (1) Without limiting the generality of section 11, the regulations may deal with matters of a transitional nature— (a) relating to the transition from the application of provisions of the old National Electricity Law to the application of provisions of the new National Electricity Law; or (b) on account of any amendments made from time to time to the new National Electricity Law. (2) Any provision of the regulations that deals with a matter of a transitional nature under subsection (1)(a) may be expressed to take effect from a time that is earlier than the beginning of the day on which the regulations containing the provision are made, not being a time earlier than the commencement of this subsection. (2a) Any provision of the regulations that deals with a matter of a transitional nature under subsection (1)(b) may be expressed to take effect from a time that is earlier than the beginning of the day on which the regulations containing the provision are made, not being a time earlier than the commencement of the relevant amendment. (3) If a provision of a regulation is expressed to take effect from a time that is earlier than the beginning of the day on which the regulations containing the provision are made, the provision must also provide that the provision does not operate so as— (a) to prejudicially affect the rights of a person (other than a participating jurisdiction or the AEMC, the AER, AEMO (including when its name was NEMMCO) or AEMO T) existing before the date of making of those regulations; or (b) to impose liabilities on any person (other than a participating jurisdiction or the AEMC, the AER, AEMO (including when its name was NEMMCO) or AEMO T) in respect of anything done or omitted to be done before the date of making of those regulations. matters of a transitional nature includes matters of an application or savings nature; new National Electricity Law means the National Electricity Law set out in the Schedule to this Act as in force from time to time after the commencement of this subsection, or the Rules as in force from time to time after the commencement of this subsection; old National Electricity Law means the National Electricity Law set out in the Schedule to this Act as in force from time to time before the commencement of this subsection, or the Code as defined by that Law and in force from time to time before the commencement of this subsection. 13—Making of rules The Legislative Instruments Act 1978 does not apply to Rules made under the National Electricity Law.

Part 5—General 14—Freedom of information The following are exempt agencies for the purposes of the Freedom of Information Act 1991: (b) AEMO; (c) an agent of AEMO with respect to functions performed under the Rules. 15—Conferral of functions and powers on Commonwealth bodies (1) Clause 2 of Schedule 2 of the National Electricity Law will have effect in relation to the operation of any provision of this Act, or any regulation made under this Act, as if the provision or regulation formed part of the National Electricity Law. (2) Subsection (1) does not limit the effect that a provision or regulation would validly have apart from the subsection. 15A—Regulation‑making power for the purposes of the National Electricity (South Australia) Law The Governor may make such regulations as are contemplated by the National Electricity (South Australia) Law as being made under this Act as the application Act of this jurisdiction. 15B—Regulation‑making power for purposes of scheme and fund in relation to electricity capacity (1) The Governor may, by regulation, establish a scheme or a fund (or both) for the purposes of providing long duration dispatchable electricity capacity to ensure secure, reliable and affordable electricity supply for the State. (2) Without limiting the matters that may be the subject of regulations under this section, the regulations may make provisions— (a) establishing bodies and providing for the appointment of persons to perform functions in respect of the scheme; and (b) imposing duties and obligations on market participants (within the meaning of the National Electricity Rules), including to provide or procure capacity; and (c) enabling the Minister to issue directions and make declarations and guidelines in respect of the scheme; and (d) enabling the Minister to make rules (the rules) in respect of the scheme; and (e) enabling the Minister or another entity conferred with functions under the scheme to delegate their functions to another entity; and (f) creating offences for contravention of the scheme; and (g) providing for, or for the calculation of, penalties (whether civil or criminal) in connection with the scheme; and (h) imposing fees and charges on, and providing for the making of financial contributions by, market participants (within the meaning of the National Electricity Rules) in respect of the scheme, including for the purposes of recovering the costs of the scheme; and (i) requiring market participants (within the meaning of the National Electricity Rules) to make contributions to the fund (including in accordance with any scheme); and (j) specifying the purposes for which money in the fund may be expended (including for the purposes of any scheme); and (k) providing for dispute resolution, review and appeal mechanisms and the conferral of jurisdiction on a court, tribunal or other body to hear and determine proceedings for the purposes of such mechanisms; and (l) modifying the application of, or disapplying a provision of, the National Electricity (South Australia) Law or the National Electricity Rules to the extent reasonably necessary to enable the operation of the scheme or the fund (or both); and (m) imposing or varying conditions on licences issued under Part 3 Division 1 of the Electricity Act 1996, despite any provision of that Act. (3) The regulations and the rules may— (a) be of general or limited application; and (b) make different provision according to the matters or circumstances to which they are expressed to apply; and (c) make provisions of a saving or transitional nature consequent on the making of regulations or rules under this section; and (d) provide that a matter or thing in respect of which regulations or rules may be made is to be determined according to the discretion of the Minister or another entity; and (e) apply, incorporate, adopt or make reference to, wholly or partially and with or without modification, a code, standard, policy or other document prepared or published by the Minister or another entity. (4) If a code, standard or other document is referred to or incorporated in the regulations or the rules— (a) a copy of the code, standard or other document must be kept available for public inspection, without charge and during ordinary office hours, at an office or offices specified in the regulations or rules (as the case requires); and (b) evidence of the contents of the code, standard or other document may be given in any legal proceedings by production of a document apparently certified by the Minister to be a true copy of the code, standard or other document.

Part 6—Transfer of economic regulation of electricity distribution to AER—local provisions 16—Interpretation (1) In this Part, unless the contrary intention appears— EPO means the Electricity Pricing Order made by the Treasurer under section 35B of the Electricity Act 1996 on 11 October 1999, as varied from time to time under that Act; ESCoSA means the Essential Services Commission established under the Essential Services Commission Act 2002; ESCoSA distribution determination means the 2005-2010 Electricity Distribution Price Determination made by ESCoSA in April 2005, as varied from time to time; ETSA Utilities has the same meaning as in the EPO; National Electricity Law means the National Electricity Law set out in the Schedule to this Act as in force from time to time; NEC means the National Electricity Code; network services has the same meaning as in the Electricity Act 1996; relevant Amendment Act means the National Electricity (South Australia) (National Electricity Law—Miscellaneous Amendments) Amendment Act 2007; relevant day means the day on which the relevant Amendment Act comes into operation; small customer has the same meaning as in the Electricity Act 1996. (2) A reference in this Part to the National Electricity Law includes a reference to the old National Electricity Law. 17—Provision of information and assistance by ESCoSA (1) Despite any other Act or law, ESCoSA is authorised, on its own initiative or at the request of the AER— (a) to provide the AER with such information (including information given in confidence) in the possession or control of ESCoSA that is reasonably required by the AER for the purposes of this Part or the National Electricity Law; and (b) to provide the AER with such other assistance as is reasonably required by the AER to perform or exercise a function or power under this Part or the National Electricity Law. (2) Despite any other Act or law, ESCoSA may authorise the AER to disclose information provided under subsection (1) even if the information was given to ESCoSA in confidence. (3) Nothing done, or authorised to be done, by ESCoSA in acting under subsection (1) or (2)— (a) constitutes a breach of, or default under, an Act or other law; or (b) constitutes a breach of, or default under, a contract, agreement, understanding or undertaking; or (c) constitutes a breach of a duty of confidence (whether arising by contract, in equity or by custom) or in any other way; or (d) constitutes a civil or criminal wrong; or (e) terminates an agreement or obligation or fulfils any condition that allows a person to terminate an agreement or obligation, or gives rise to any other right or remedy; or (f) releases a surety or any other obligee wholly or in part from an obligation. 18—Price determinations (1) The ESCoSA distribution determination continues in operation for the purposes of the law of the State despite the amendments to the National Electricity (South Australia) Law effected by the relevant Amendment Act until the end of the regulatory period specified by that determination. (2) ESCoSA— (a) will continue to be responsible for the operation, administration and enforcement of the ESCoSA distribution determination; and (b) will cease to be responsible to make a further distribution determination in respect of ETSA Utilities from the relevant day. (3) In connection with the operation of subsections (1) and (2)(a), the National Electricity Law, the Rules, the NEC and the EPO, as in force from time to time before the commencement of this subsection, will be taken to continue to apply with respect to the ESCoSA distribution determination (and the amendments effected by the relevant Amendment Act will be disregarded). (4) On or after the relevant day, the AER must, when acting under the National Electricity (South Australia) Law— (a) comply with the requirements under subsection (5); and (b) give effect to the provisions of the EPO (as in force from time to time). (5) The requirements under this subsection are as follows: (a) the AER must, in making a distribution determination or approving a pricing proposal for the purposes of the Rules, ensure that the prices charged to small customers for network services in relation to distribution services in the State are not subject to variation on the basis of location; (b) the AER must only approve a distribution loss factor that has been calculated for the purposes of the Rules by ETSA Utilities if the distribution loss factor— (i) has been calculated on a State‑wide basis by reference to voltage level and proximity of a customer's metering point to a transformer; and (ii) is not related to the relative length of a distribution line involved in supplying electricity to the customer; (c) the AER must determine any transmission loss factor using a single virtual transmission node for small customers that has been calculated for the purposes of the Rules by the holder of a licence under the Electricity Act 1996 authorising the operation of a transmission network on a State‑wide basis; (d) the AER must ensure that any method of allocation agreed with ETSA Utilities in relation to transmission use of system costs paid by ETSA Utilities requires the allocation of those costs to ETSA Utilities' small customers on a State‑wide basis that ensures that the rates charged with respect to all such small customers are not subject to variation on the basis of location. (6) In connection with the operation of subsections (4) and (5)— (a) the EPO will be taken to continue to apply as if the AER were the Regulator under the EPO; and (b) for the avoidance of doubt, in the event of an inconsistency between the operation or effect of subsection (5) and the EPO, subsection (5) prevails. (7) Subsections (4), (5) and (6) apply until the EPO is varied or revoked so that it no longer applies to distribution determinations. (8) This section applies despite any provision to the contrary in the National Electricity Law or the Rules (and, to the extent of any inconsistency between such a provision and the operation or effect of this section, this section prevails).

Part 7—AEMO's additional advisory functions 19—AEMO's additional advisory functions (1) Subdivision 2 of Division 2 of Part 5 of the National Electricity (South Australia) Law applies to, and in relation to, South Australia. (2) For the purposes of the National Electricity (South Australia) Law, declared power system means a system for the generation, transmission and distribution of electricity in South Australia and includes part of such a system.

Part 8—Validation of instruments and decisions of AER 20—Validation of instruments and decisions made by AER (1) This section applies to an instrument or decision made by the AER if— (a) the instrument or decision was made— (i) on or after the time that the amendments of the National Electricity Law by the Statutes Amendment (National Energy Retail Law) Act 2011 were enacted; but (ii) before the time (the application time) that the amendments started to apply under this Act as a law of South Australia; and (b) had the amendments started so to apply the making of the instrument or decision would have been authorised by or under one of the following laws (the authorising law): (i) the National Electricity (South Australia) Law; (ii) the National Electricity (South Australia) Regulations; (iii) this Act; (iv) an instrument made or having effect under this Act; and (c) in a case in which the making of the instrument or decision would be so authorised subject to the satisfaction of any conditions or other requirements (for example, consultation or publication requirements)—the AER has done anything that would, if the amendments had started so to apply, be required under the authorising law for the instrument or decision to be so authorised. (2) For the purposes of the authorising law— (a) the instrument or decision is taken to be valid; and (b) the instrument or decision has effect from the application time— (i) as varied, and unless revoked, by any other instrument or decision to which this section applies; and (ii) subject to that law as so applying. (3) For the purposes of this section— (a) guidelines are an example of an instrument; and (b) the following are examples of decisions: (i) appointments; (ii) determinations; (iii) approvals. 21—AER—authorisation of preparatory steps (a) the AER is required to do something (a preparatory step) before making a decision or making an instrument under one of the following (the authorising law): (i) the National Electricity (South Australia) Law; (ii) the National Electricity (South Australia) Regulations; (iii) this Act; (iv) an instrument made or having effect under this Act; and (b) the preparatory step would have been required under the authorising law if the amendments of the National Electricity Law made by the Statutes Amendment (National Energy Retail Law) Act 2011 had started to apply under this Act as a law of South Australia; and (c) the AER takes the preparatory step— (i) on or after the time that the amendments were enacted; but (ii) before the time that the amendments started to apply under this Act as a law of South Australia. (2) For the purposes of the authorising law, the AER is taken to have complied with the requirement to take the preparatory step. Schedule—National Electricity Law

1—Citation This Law may be referred to as the National Electricity Law. 2—Definitions (1) In this Law— access determination means a determination of the AER under Part 10; access dispute has the meaning given by section 2A; additional advisory functions—AEMO's additional advisory functions are as set out in section 50B(1); additional Minister initiated Rules means Rules made under Part 7, Division 2 (other than section 90) by the South Australian Minister; adoptive jurisdiction means (according to context)— (a) a participating jurisdiction for which AEMO is authorised to exercise its additional advisory functions; or (b) a participating jurisdiction for which AEMO is authorised to exercise its declared network functions; AEMC means the Australian Energy Market Commission established by section 5 of the Australian Energy Market Commission Establishment Act 2004 of South Australia; AEMC initiated Rule means a Rule of the kind referred to in section 91(2); AEMO amendments means— (a) the amendments to this Law made by the National Electricity (South Australia) (National Electricity Law—Australian Energy Market Operator) Amendment Act 2009; and (b) the amendments to the Rules made by the National Electricity (South Australia) (National Electricity Rules—Australian Energy Market Operator) Amendment Rules 2009; AER means the Australian Energy Regulator established by section 44AE of the Competition and Consumer Act 2010 of the Commonwealth; AER economic regulatory decision means a decision (however described) of the AER under this Law or the Rules performing or exercising an AER economic regulatory function or power; AER economic regulatory function or power means a function or power performed or exercised by the AER under this Law or the Rules (other than making a rate of return instrument) that relates to— (a) the economic regulation of services provided by— (i) a regulated distribution system operator by means of, or in connection with, a distribution system; or (ii) a regulated transmission system operator or AEMO by means of, or in connection with, a transmission system; or (b) the preparation of a network service provider performance report; or (c) the making of a transmission determination or distribution determination; or (d) an access determination; The application of a rate of return instrument under this Law is an AER economic regulatory function or power. See section 18V(2). AER market liquidity obligation functions means the functions conferred on the AER under section 15(1)(eba); AER trial waiver functions means the functions conferred on the AER under Part 3 Division 1D; AER wholesale market monitoring functions—the AER wholesale market monitoring functions are as set out in section 18C(1); AER wholesale market reporting functions—the AER wholesale market reporting functions are as set out in section 18C(2); annual turnover has the same meaning as in section 2(1) of Schedule 2 to the Competition and Consumer Act 2010 of the Commonwealth; application Act means an Act of a participating jurisdiction that applies, as a law of that jurisdiction, this Law or any part of this Law; associate in relation to a person has the same meaning it would have under Division 2 of Part 1.2 of the Corporations Act 2001 of the Commonwealth if sections 13, 16(2) and 17 did not form part of that Act; augmentation of a transmission or distribution system means work to enlarge the system or to increase its capacity to transmit or distribute electricity; augmentation connection agreement means an agreement for connecting an augmentation to a declared shared network; Australian Energy Market Operator or AEMO means Australian Energy Market Operator Limited (ACN 072 010 327); Before its change of name, AEMO was known as NEMMCO. CDR data has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth; CDR provisions has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth; changeover date means 1 July 2009 or some other date fixed as the changeover date by Ministerial Gazette notice; civil monetary liability means a liability for damages, compensation or any other monetary amount that can be recovered by way of civil proceedings but does not include a liability for a civil penalty or an infringement penalty under this Law or a liability for the costs of a proceeding; civil penalty—see section 2AB; civil penalty provision—see section 2AA(1); conduct provision—see section 2AA(2); connection service means a connection service within the meaning of the Rules; constituent components, in relation to a relevant regulatory decision, means the matters that constitute the elements or components of the relevant regulatory decision and on which that relevant regulatory decision is based and includes— (a) matters that go to the making of the relevant regulatory decision; and (b) decisions made by the AER for the purposes of the relevant regulatory decision; Court means— (a) where this Law applies as a law of the Commonwealth, the Federal Court; (b) where this Law applies as a law of a participating jurisdiction that is a State or a Territory, the Supreme Court of that jurisdiction; data holder has the same meaning as in the Competition and Consumer Act 2010 of the Commonwealth; derogation means a jurisdictional derogation or participant derogation; declared network functions—AEMO's declared network functions are as set out in section 50C(1); declared power system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction; declared shared network of an adoptive jurisdiction means the adoptive jurisdiction's declared transmission system excluding any part of it that is a connection asset within the meaning of the Rules; declared transmission system of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction and includes any augmentation of the defined declared transmission system; declared transmission system operator of an adoptive jurisdiction has the meaning given by the application Act of that jurisdiction; designated energy sector means an energy sector designated under section 56AC of the Competition and Consumer Act 2010 of the Commonwealth; direct control network service has the meaning given by section 2B; Dispute resolution panel means a person or panel of persons appointed under the Rules to hear and determine a rule dispute; distribution determination means a determination of the AER under the Rules that regulates any 1 or more of the following: (a) the terms and conditions for the provision of electricity network services that are the subject of economic regulation under the Rules including the prices an owner, controller or operator of a distribution system charges or may charge for those services; (b) the revenue an owner, controller or operator of a distribution system earns or may earn from the provision by that owner, controller or operator of electricity network services that are the subject of economic regulation under the Rules; distribution reliability standard means a standard imposed by or under the Rules or jurisdictional electricity legislation relating to the reliability or performance of a distribution system; distribution service standard means a standard relating to the standard of services provided by a regulated distribution system operator by means of, or in connection with, a distribution system imposed— (a) by or under jurisdictional electricity legislation; or (b) by the AER in accordance with the Rules; distribution system means the apparatus, electric lines, equipment, plant and buildings used to convey or control the conveyance of electricity that the Rules specify as, or as forming part of, a distribution system and includes a regulated stand‑alone power system to the extent provided by the Rules; distribution system safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to— (a) the safe distribution of electricity in that jurisdiction; or (b) the safe operation of a distribution system in that jurisdiction; draft Rule determination means a determination of the AEMC under section 99; ECA amendments means the amendments to this Law made by the Statutes Amendment (Energy Consumers Australia) Act 2014 of South Australia; effective competition, for Part 3 Division 1A—see section 18B; electricity contract, for Part 3 Division 1A—see section 18A; electricity network service means a service provided by means of, or in connection with, a transmission system or distribution system; electricity services means services that are necessary or incidental to the supply of electricity to consumers of electricity, including— (a) the generation of electricity; (b) electricity network services; (c) the sale of electricity; end user means a person who acquires electricity for consumption purposes, and includes a retail customer; Energy Consumers Australia or ECA means the company incorporated, or to be incorporated, by the name Energy Consumers Australia Limited; energy ombudsman has the same meaning as in the National Energy Retail Law; Energy Security Board means the Board established by the MCE on 14 July 2017 to provide the MCE with advice for the purposes of— (a) whole‑of‑system oversight for energy security and reliability of the national electricity market; and (b) improving long‑term planning for the national electricity market; Federal Court means the Federal Court of Australia; final Rule determination means a determination of the AEMC under section 102; financial risk management product, for Part 3 Division 1A—see section 18A; form of regulation factors has the meaning given by section 2F; general market information order means an order under section 53(1)(a) requiring information from persons of a class specified in the order; general regulatory information order has the meaning given by section 28C; initial National Electricity Rules means the National Electricity Rules made under section 90; innovative trial principles—see section 7B; interconnected national electricity system means the interconnected transmission and distribution system in this jurisdiction and in the other participating jurisdictions used to convey and control the conveyance of electricity to which are connected— (a) generating systems and other facilities; and (b) loads settled through the wholesale exchange operated and administered by AEMO under this Law and the Rules; jurisdictional derogation means a Rule made at the request of a Minister of a participating jurisdiction that— (a) exempts, in a specified case or class of cases, a person or a body performing or exercising a function or power, or conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or a class of such a person or body, or AEMO, from complying with a provision, or a part of a provision, of the Rules in the participating jurisdiction to which the derogation relates; or (b) modifies or varies the application of a provision of the Rules (with or without substitution of a provision of the Rules or a part of a provision of the Rules) to a person or a body performing or exercising a function or power, or conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or a class of such a person or body, or AEMO, in the participating jurisdiction to which the derogation relates; jurisdictional electricity legislation means an Act of a participating jurisdiction (other than national electricity legislation), or any instrument made or issued under or for the purposes of that Act, that regulates the generation, transmission, distribution, supply or sale of electricity in that jurisdiction; jurisdictional regulator means— (a) if this Law is applied as a law of the State of New South Wales— (i) the Independent Pricing and Regulatory Tribunal of New South Wales established by section 5(1) of the Independent Pricing and Regulatory Tribunal Act 1992 of New South Wales; or (ii) if the functions or powers of the Independent Pricing and Regulatory Tribunal of New South Wales under this Law are transferred to the AER by or under a law of New South Wales, the AER; (b) if this Law is applied as a law of the State of Victoria— (i) the Essential Services Commission established by section 7(1) of the Essential Services Commission Act 2001 of Victoria; or (ii) if the functions or powers of that Essential Services Commission under this Law are transferred to the AER by or under a law of Victoria, the AER; (c) if this Law is applied as a law of the State of Queensland— (i) the Queensland Competition Authority established by section 7 of the Queensland Competition Authority Act 1997 of Queensland; or (ii) if the functions or powers of the Queensland Competition Authority under this Law are transferred to the AER by or under a law of Queensland, the AER; (d) if this Law is applied as a law of the State of South Australia— (i) the Essential Services Commission established by section 4(1) of the Essential Services Commission Act 2002 of South Australia; or (ii) if the functions or powers of that Essential Services Commission under this Law are transferred to the AER by or under a law of South Australia, the AER; (e) if this Law is applied as a law of the Australian Capital Territory— (i) the Independent Competition and Regulatory Commission for the Australian Capital Territory established by section 5(1) of the Independent Competition and Regulatory Commission Act 1997 of the Australian Capital Territory; or (ii) if the functions or powers of the Independent Competition and Regulatory Commission for the Australian Capital Territory under this Law are transferred to the AER by or under a law of the Australian Capital Territory, the AER; (f) if a person or body referred to in paragraphs (a) to (e) is abolished under an Act of a participating jurisdiction and another person or body is established under an Act of that participating jurisdiction with functions and powers that correspond to the functions and powers of the person or body referred to in paragraphs (a) to (e), that other person or body; (g) if the functions and powers of a person or body referred to in paragraphs (a) to (e) are transferred to another person or body established under an Act of the relevant participating jurisdiction, that other person or body; (h) any other person or body established under an Act of a participating jurisdiction that is prescribed by the Regulations as a jurisdictional regulator of that jurisdiction; jurisdictional system security coordinator means a person appointed under section 110; liable entity—see section 14D; listed corporation has the meaning given by section 9 of the Corporations Act 2001 of the Commonwealth; market information instrument means a general market information order or a market information notice; market information notice means a notice under section 53(1)(b) requiring information from the person to whom the notice is addressed; market liquidity obligation means the obligation imposed by Rules made under Schedule 1 item 6G and includes matters related to the obligation; market monitoring information notice, for Part 3 Division 1A—see section 18EC; market monitoring information order, for Part 3 Division 1A—see section 18EC; MCE means the group of Ministers (constituting or forming part of a Ministerial Council, Standing Council of Ministers or similar body (however described)) responsible for energy matters at a national level comprising 9 Ministers as follows: (a) 1 Minister from the Commonwealth; (b) 1 Minister from each State (totalling 6 Ministers); (c) 1 Minister from each Territory (totalling 2 Ministers), acting in accordance with its own procedures; MCE directed review means a review conducted by the AEMC under Division 4 of Part 4; MCE statement of policy principles means a statement of policy principles issued by the MCE under section 8; Ministerial Gazette notice means a notice in the South Australian Government Gazette published by the South Australian Minister on the recommendation of the MCE; Ministerial pilot metering determination means a determination made under section 118B; Ministerial smart metering determination means— (b) a Ministerial pilot metering determination; Minister of a participating jurisdiction means a Minister who is a Minister of a participating jurisdiction within the meaning of section 6; monitored market, for Part 3 Division 1A—see section 18A; National Electricity Code means the code of conduct called the National Electricity Code approved, in accordance with section 6(1) of the old National Electricity Law, as the initial Code for the purposes of that Law, and as amended from time to time in accordance with its terms and the old National Electricity Law; national electricity legislation means— (a) the National Electricity (South Australia) Act 1996 of South Australia and Regulations in force under that Act; and (b) the National Electricity (South Australia) Law; and (c) an Act of a participating jurisdiction (other than South Australia) that applies, as a law of that jurisdiction, any part of— (i) the Regulations referred to in paragraph (a); or (ii) the National Electricity Law set out in the Schedule to the Act referred to in paragraph (a); and (d) the National Electricity Law set out in the Schedule to the Act referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia); and (e) the Regulations referred to in paragraph (a) as applied as a law of a participating jurisdiction (other than South Australia); national electricity market means— (a) the wholesale exchange operated and administered by AEMO under this Law and the Rules; and (b) the national electricity system; national electricity objective means the objective set out in section 7; National Electricity Rules or Rules means— (a) the initial National Electricity Rules; and (ab) additional Minister initiated Rules; and (b) Rules made by the AEMC under this Law, including Rules that amend or revoke— (i) the initial National Electricity Rules or additional Minister initiated Rules; or (ii) Rules made by it; national electricity system means— (a) the generating systems and other facilities owned, controlled or operated in the participating jurisdictions connected to the interconnected national electricity system; and (b) the interconnected national electricity system; and (c) regulated stand‑alone power systems; National Energy Retail Law means the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 of South Australia; National Energy Retail Rules has the same meaning as in the National Energy Retail Law; National Gas Law means the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008 of South Australia; National Gas Rules has the same meaning as in the National Gas Law; national transmission grid means the transmission systems that form part of the interconnected national electricity system; National Transmission Planner means AEMO acting in the performance of NTP functions; negotiated network service has the meaning given by section 2C; NEMMCO means National Electricity Market Management Company Limited (ACN 072 010 327); NEMMCO becomes AEMO (without change of corporate identity). A reference to NEMMCO is a reference to AEMO before its change of name. network agreement means the agreement required by section 50D(1); network revenue or pricing determination means a distribution determination or a transmission determination; network service provider means a Registered participant registered for the purposes of section 11(2) that owns, controls or operates a transmission system or distribution system that forms part of the interconnected national electricity system or that owns, controls or operates a regulated stand‑alone power system; network service provider performance report means a report prepared by the AER under section 28V; network service user means a user who is provided with an electricity network service; NTP functions means the functions described in section 49(2); offence provision means a provision of this Law the breach or contravention of which by a person exposes that person to a finding of guilt by a court; officer has the same meaning as officer has in relation to a corporation under section 9 of the Corporations Act 2001 of the Commonwealth; old National Electricity Law means the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 of South Australia as in force from time to time before the commencement of section 12 of the National Electricity (South Australia) (New National Electricity Law) Amendment Act 2005 of South Australia; participant derogation means a Rule made at the request of a person who is conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant), or AEMO, that— (a) exempts, in a specified case or class of cases, that person or a class of person of which that person is a member, or AEMO, from complying with a provision, or a part of a provision, of the Rules, including a jurisdictional derogation; or (b) modifies or varies the application of a provision of the Rules, including a jurisdictional derogation, (with or without substitution of a provision of the Rules or a part of a provision of the Rules) to that person or class of person of which that person is a member, or AEMO; participating jurisdiction means a jurisdiction that is a participating jurisdiction within the meaning of section 5; power system security means the safe scheduling and dispatch, and operation and control, of the national electricity system (other than regulated stand‑alone power systems); prospective network service user means a person who seeks or wishes to be provided with an electricity network service; protected information has the meaning given by section 54(1); rate of return instrument—see section 18I(2); Registered participant means a person who is registered as such by AEMO under this Law and the Rules or is registered as such by AEMO otherwise in accordance with the Rules; regulated distribution system operator means an owner, controller or operator of a distribution system— (a) who is a Registered participant; and (b) whose revenue from, or prices that are charged for, the provision of electricity network services are regulated under a distribution determination; regulated network service provider means— (a) a regulated distribution system operator; or (b) a regulated transmission system operator; regulated stand‑alone power system—see section 6B; regulated transmission system operator means an owner, controller or operator of a transmission system— (a) who is a Registered participant; and (b) whose revenue from, or prices that are charged for, the provision of electricity network services are regulated under a transmission determination; Regulations means the regulations made under Part 4 of the National Electricity (South Australia) Act 1996 of South Australia that apply as a law of this jurisdiction; regulatory information instrument means a general regulatory information order or a regulatory information notice; regulatory information notice has the meaning given by section 28D; regulatory obligation or requirement has the meaning given by section 2D; regulatory payment has the meaning given by section 2E; relevant agreement, for Part 3 Division 1A—see section 18A; relevant court means any court of this jurisdiction; relevant regulatory decision means— (a) a network revenue or pricing determination that specifies a period to be a regulatory period for the purposes of the determination; or (b) any other determination (including a distribution determination or transmission determination) or decision of the AER that is prescribed by the Regulations to be a relevant regulatory decision, but does not include a decision of the AER made under Part 3 Division 6; reliability obligation civil penalty provision—see section 2AA(1a); reliability obligations means the obligations that apply to a liable entity under sections 14P(1) and (3) and 14R(2); Reliability Panel means the panel of persons established by the AEMC under section 38; retail customer means a person to whom electricity is sold by a retailer, and supplied in respect of connection points, for the premises of the person, and includes a person (or a person who is of a class of persons) prescribed by the Rules for the purposes of this definition; retailer means a person who is the holder of a retailer authorisation issued under the National Energy Retail Law in respect of the sale of electricity; Retailer Reliability Obligation means— (a) Part 2A of this Law; and (b) the provisions of the Rules that relate to Part 2A of this Law; revenue and pricing principles means the principles set out in section 7A; Rule dispute means a dispute between persons in relation to a matter or thing arising under the Rules in respect of which the Rules provide that the dispute must be resolved in accordance with the Rules; shared network capability service means a service described in section 50D(1) as a shared network capability service; shared transmission service means a service classified under the Rules as a shared transmission service; smart meter amendments means the amendments to this Law made by section 5 of the National Electricity (South Australia) (Smart Meters) Amendment Act 2009 of South Australia; South Australian Minister means the Minister of the Crown in right of South Australia who administers Part 2 of the National Electricity (South Australia) Act 1996 of South Australia; statutory functions, in relation to AEMO, means functions or powers conferred under— (a) this Law or the Rules; or (b) the National Gas Law, the National Gas Rules, or related subordinate legislation; superseded jurisdictional rules means— (a) legislation (including subordinate legislation) of a participating jurisdiction regulating the electricity industry in that jurisdiction that— (i) was in force immediately before the changeover date; and (ii) is superseded by the AEMO amendments; and (b) a licence condition governing the activities of the licensee in, or in relation to, an electricity market in a participating jurisdiction— (i) in force immediately before the changeover date; and (ii) superseded by the AEMO amendments; and (c) a guideline, code, standard or other instrument governing the operation or regulation of an electricity market in a participating jurisdiction— (i) made or issued by the jurisdictional regulator; and (ii) in force immediately before the changeover date; and (iii) superseded by the AEMO amendments; Territory means the Australian Capital Territory or the Northern Territory; transmission determination means a determination of the AER under the Rules that regulates any 1 or more of the following: (a) the terms and conditions for the provision of electricity network services that are the subject of economic regulation under the Rules including the prices an owner, controller or operator of a transmission system charges or may charge for those services; (b) the revenue an owner, controller or operator of a transmission system earns or may earn from the provision by that owner, controller or operator of electricity network services that are the subject of economic regulation under the Rules; transmission reliability standard means a standard imposed by or under the Rules or jurisdictional electricity legislation relating to the reliability or performance of a transmission system; transmission service standard means a standard relating to the standard of services provided by a regulated transmission system operator by means of, or in connection with, a transmission system imposed— (a) by or under jurisdictional electricity legislation; or (b) by the AER in accordance with the Rules; transmission system means the apparatus, electric lines, equipment, plant and buildings used to convey or control the conveyance of electricity that the Rules specify as, or forming part of, a transmission system; transmission system safety duty means a duty or requirement under an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, relating to— (a) the safe transmission of electricity in that jurisdiction; or (b) the safe operation of a transmission system in that jurisdiction; trial project means a project— (a) that— (i) the AER is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial waiver for a trial project); or (ii) the AEMC is satisfied is genuinely innovative taking into account the innovative trial principles (in relation to a trial Rule for the purposes of a trial project); and (b) that tests an approach in relation to the supply of, or demand for, electricity; trial Rule—see section 87; trial waiver—see section 18ZL; Tribunal means the Australian Competition Tribunal referred to in the Competition and Consumer Act 2010 of the Commonwealth and includes a member of the Tribunal or a Division of the Tribunal performing functions of the Tribunal; VENCorp means the Victorian Energy Networks Corporation continued under Part 8 of the Gas Industry Act 2001 of Victoria until the AEMO amendments came into force; wholesale electricity market means any wholesale market for electricity regulated under this Law and the Rules. (2) A reference in this Law to an end user includes a reference to a prospective end user. 2A—Meaning of access dispute An access dispute is— (a) a dispute between a network service user (or prospective network service user) and a network service provider about an aspect of access to an electricity network service specified by the Rules to be an aspect to which Part 10 applies; or (b) without limiting paragraph (a)—a dispute between a retail customer (or other person specified by the Rules) and a regulated distribution system operator about an aspect of access to a connection service specified by the Rules to be an aspect to which Part 10 applies. 2AA—Meaning of civil penalty provision and conduct provision (1) A civil penalty provision is— (a) a provision of this Law specified in the Table at the foot of this subsection; or (ba) a reliability obligation civil penalty provision; or (c) a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a civil penalty provision.

Table Provision Section heading Section 11(1), (2), (3) and (4) Electricity market activities in this jurisdiction Regulated transmission system operator must comply with transmission determination Regulated distribution system operator must comply with distribution determination Section 14P(1) and (3) Obligation to report net contract position Section 18ZC(1) and (2) Obligation of regulated entities to keep records Obligation of regulated entities to provide information and data about compliance Section 18ZF(1) and (3) Compliance audits by regulated entities Compliance with regulatory information notice that is served Compliance with general regulatory information order Section 50D(1) Network agreement Section 50F(1), (4) and (5) Augmentation Section 53C(3) and (4) Compliance with market information instrument Compliance with access determination Section 157(1) Preventing or hindering access (1a) A reliability obligation civil penalty provision is section 14R(2). (2) A conduct provision is a provision of this Law (other than an offence provision) or the Rules that is prescribed by the Regulations to be a conduct provision. 2AB—Civil penalty amounts for breaches of civil penalty provisions (1) Subject to this section, the civil penalty for a breach of a civil penalty provision is— (a) in the case of a breach of a civil penalty provision, other than a provision prescribed under paragraph (b), (c) or (d)— (i) if the breach is by a natural person— (A) an amount not exceeding $33 900; plus (B) an amount not exceeding $3 390 for every day during which the breach continues; (A) an amount not exceeding $170 000; plus (B) an amount not exceeding $17 000 for every day during which the breach continues; or (b) in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph— (i) if the breach is by a natural person— (A) an amount not exceeding $287 000; plus (B) an amount not exceeding $14 400 for every day during which the breach continues; (A) an amount not exceeding $1 435 000; plus (B) an amount not exceeding $71 800 for every day during which the breach continues; or (c) in the case of a breach of a civil penalty provision prescribed by the Regulations for the purposes of this paragraph— (i) if the breach is by a natural person—an amount not exceeding $500 000; (ii) if the breach is by a body corporate—an amount not exceeding the greater of the following: (A) $10 000 000; (B) if the Court can determine the value of any benefit reasonably attributable to the breach of the civil penalty provision that the body corporate, and any body corporate related to the body corporate, has obtained, directly or indirectly—3 times the value of that benefit; (C) if the Court cannot determine the value of the benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate breached, or began breaching, the civil penalty provision; or (d) in the case of a breach of a reliability obligation civil penalty provision— (i) if the breach is by a natural person—an amount not exceeding $1 435 000; (A) an amount not exceeding $1 435 000 for a breach that relates to a reliability gap period; or (B) an amount that applies under paragraph (c)(ii), as if the reliability obligation civil penalty provision were prescribed by the Regulations for the purposes of paragraph (c), for a breach that relates to a second or subsequent reliability gap period. See section 67A, which deals with conduct that constitutes a breach of a reliability obligation civil penalty provision on 2 or more occasions in relation to the same reliability gap period. See Schedule 2 clause 37A, which provides for the amounts specified in this subsection to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER's website. (2) Subsection (1)(c)(ii)(B) or (C) will only apply in a particular case (including by operation of subsection (1)(d)(ii)(B)) if the AER, in applying for an order under section 61(2)(a), requests that those provisions be applied in that particular case. 2B—Meaning of direct control network service A direct control network service is an electricity network service— (a) the Rules specify as a service the price for which, or the revenue to be earned from which, must be regulated under a distribution determination or transmission determination; or (b) if the Rules do not do so, the AER specifies, in a distribution determination or transmission determination, as a service the price for which, or the revenue to be earned from which, must be regulated under the distribution determination or transmission determination. 2C—Meaning of negotiated network service A negotiated network service is an electricity network service— (a) that is not a direct control network service; and (b) that— (i) the Rules specify as a negotiated network service; or (ii) if the Rules do not do so, the AER specifies as a negotiated network service in a distribution determination or transmission determination. 2D—Meaning of regulatory obligation or requirement (1) A regulatory obligation or requirement is— (a) in relation to the provision of an electricity network service by a regulated network service provider— (i) a distribution system safety duty or transmission system safety duty; or (ii) a distribution reliability standard or transmission reliability standard; or (iii) a distribution service standard or transmission service standard; or (b) an obligation or requirement under— (i) this Law or Rules; or (ia) the National Energy Retail Law or the National Energy Retail Rules; or (ii) an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that levies or imposes a tax or other levy that is payable by a regulated network service provider; or (iii) an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act, that regulates the use of land in a participating jurisdiction by a regulated network service provider; or (iv) an Act of a participating jurisdiction or any instrument made or issued under or for the purposes of that Act that relates to the protection of the environment; or (v) an Act of a participating jurisdiction, or any instrument made or issued under or for the purposes of that Act (other than national electricity legislation or an Act of a participating jurisdiction or an Act or instrument referred to in subparagraphs (ii) to (iv)), that materially affects the provision, by a regulated network service provider, of electricity network services that are the subject of a distribution determination or transmission determination. (2) A regulatory obligation or requirement does not include an obligation or requirement to pay a fine, penalty or compensation— (a) for a breach of— (i) a distribution system safety duty or transmission system safety duty; or (ii) a distribution reliability standard or transmission reliability standard; or (iii) a distribution service standard or transmission service standard; or (b) under this Law or the Rules, the National Energy Retail Law or the National Energy Retail Rules or an Act or an instrument referred to in subsection (1)(b)(ii) to (v). Notes—

1	See also section 7A(2)(b).

2	The RoLR cost recovery scheme is dealt with under Part 6 of the National Energy Retail Law.

2E—Meaning of regulatory payment A regulatory payment is a sum that a regulated network service provider has been required or allowed to pay to a network service user or an end user for a breach of, as the case requires— (a) a distribution reliability standard or transmission reliability standard; or (b) a distribution service standard or transmission service standard, because it was efficient for the regulated network service provider (in terms of the provider's overall business) to pay that sum. See also section 7A(2)(b). 2F—Form of regulation factors The form of regulation factors are— (a) the presence and extent of any barriers to entry in a market for electricity network services; (b) the presence and extent of any network externalities (that is, interdependencies) between an electricity network service provided by a network service provider and any other electricity network service provided by the network service provider; (c) the presence and extent of any network externalities (that is, interdependencies) between an electricity network service provided by a network service provider and any other service provided by the network service provider in any other market; (d) the extent to which any market power possessed by a network service provider is, or is likely to be, mitigated by any countervailing market power possessed by a network service user or prospective network service user; (e) the presence and extent of any substitute, and the elasticity of demand, in a market for an electricity network service in which a network service provider provides that service; (f) the presence and extent of any substitute for, and the elasticity of demand in a market for, electricity or gas (as the case may be); (g) the extent to which there is information available to a prospective network service user or network service user, and whether that information is adequate, to enable the prospective network service user or network service user to negotiate on an informed basis with a network service provider for the provision of an electricity network service to them by the network service provider. 2G—Related bodies corporate For the purposes of this Law, 2 or more bodies corporate are related to each other if they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth. 3—Interpretation generally

Schedule 2 to this Law applies to this Law, the Regulations and the Rules and any other statutory instrument made under this Law. 4—Savings and transitionals

Schedule 3 to this Law has effect. 5—Participating jurisdictions (1) The following jurisdictions are participating jurisdictions for the purposes of this Law— (a) the State of South Australia; and (b) the Commonwealth, a Territory or a State (other than South Australia) if there is in force, as part of the law of that jurisdiction, a law that applies this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Electricity (South Australia) Act 1996 of South Australia or by some other law). (2) If a law of a participating jurisdiction referred to in subsection (1)(b) ceases to be in force, the jurisdiction ceases to be a participating jurisdiction. (3) If, at any time, all participating jurisdictions agree that a specified jurisdiction will cease to be a participating jurisdiction on a specified date, the jurisdiction ceases to be a participating jurisdiction on that date. (4) A notice must be published in the South Australian Government Gazette of the date on which a jurisdiction ceases to be a participating jurisdiction under subsection (2) or (3). (5) If the legislature of a participating jurisdiction enacts a law that, in the unanimous opinion of the Ministers of the other participating jurisdictions, is inconsistent with this Law, those other participating jurisdictions may give notice to the Minister of the first-mentioned participating jurisdiction to the effect that, if the inconsistent law remains in force as an inconsistent law for more than 6 months after the notice is given, the other participating jurisdictions may declare that the jurisdiction has ceased to be a participating jurisdiction. (6) A jurisdiction ceases to be a participating jurisdiction on publication in the South Australian Government Gazette of a declaration made by the Ministers of the other participating jurisdictions in accordance with subsection (5). 6—Ministers of participating jurisdictions (1) The Ministers of the participating jurisdictions are— (a) the South Australian Minister; and (b) the Ministers of the Crown in right of the other participating jurisdictions administering the laws of those jurisdictions that apply this Law or any part of this Law (whether by a law that corresponds to Part 2 of the National Electricity (South Australia) Act 1996 of South Australia or by some other law). 6A—Nominated distributors (1) The regulations under the application Act of a participating jurisdiction (a local regulation) may— (a) nominate an entity, being an entity that is licensed or otherwise authorised under the jurisdictional electricity legislation of that jurisdiction to operate a distribution system but that is not a regulated distribution system operator (within the meaning of this Law) in respect of that distribution system, as an entity to which this section applies (the nominated distributor); and (b) apply to the nominated distributor specified provisions of the Rules that relate to the following matters: (i) the provision of connection services to retail customers; (ii) retail support obligations between regulated distribution system operators and retailers; (iii) credit support arrangements between regulated distribution system operators and retailers. (2) The application of any such specified provisions of the Rules to the nominated distributor is subject to such modifications as may be specified in the local regulation. (3) The nominated distributor— (a) must comply with the Rules to the extent that the Rules are applied by the local regulation to the nominated distributor; and (b) may, to the extent that the Rules apply to the nominated distributor, be proceeded against under this Law for any breach of those Rules. (4) A nomination of an entity by a local regulation may be made for— (a) the whole or a specified part of the geographical area of a jurisdiction; or (b) the whole or a specified part of a distribution system that is owned, controlled or operated by the entity, or for both. (5) The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette. 6B—Regulated stand‑alone power systems (1) The regulations under the application Act of a participating jurisdiction (a local regulation) may provide that the following form part of the national electricity system (a regulated stand‑alone power system): (a) a particular stand‑alone power system, which consists of a distribution system owned, controlled or operated, or proposed to be owned, controlled or operated, by a regulated distribution system operator; (b) a stand‑alone power system, which consists of a distribution system owned, controlled or operated, or proposed to be owned, controlled or operated, by a regulated distribution system operator, that belongs to a particular class of stand‑alone power systems. (2) Without limiting subsection (1), the local regulation may provide that a particular stand‑alone power system, or a class of stand‑alone power systems, forms part of the national electricity system by reference to— (a) the particular geographic area in which the stand‑alone power system, or class of stand‑alone power systems, is or will be located; or (b) the regulated distribution system operator that owns, controls or operates, or proposes to own, control or operate, the stand‑alone power system or class of stand‑alone power systems; or (c) whether the stand‑alone power system, or class of stand‑alone power systems, complies with any requirements specified by the Rules. (3) The local regulation may modify the application of a specified provision of this Law or the Rules for and with respect to a regulated stand‑alone power system or a class of regulated stand‑alone power systems. (4) A regulated distribution system operator that owns, controls or operates a regulated stand‑alone power system— (a) must comply with the Rules to the extent that the Rules are applied by the local regulation to the regulated stand‑alone power system; and (b) may, to the extent that the Rules apply to the regulated stand‑alone power system, be proceeded against under this Law for any breach of those Rules. (5) The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette. stand‑alone power system means a system that— (a) generates and distributes electricity; and (b) does not form part of the interconnected national electricity system. 7—National electricity objective The objective of this Law is to promote efficient investment in, and efficient operation and use of, electricity services for the long term interests of consumers of electricity with respect to— (a) price, quality, safety, reliability and security of supply of electricity; and (b) the reliability, safety and security of the national electricity system; and (c) the achievement of targets set by a participating jurisdiction— (i) for reducing Australia's greenhouse gas emissions; or (ii) that are likely to contribute to reducing Australia's greenhouse gas emissions. The AEMC must publish targets in a targets statement: see section 32A. 7AA—Regulations may prescribe matters for national electricity objective Without limiting Part 4 of the National Electricity (South Australia) Act 1996 of South Australia, the Regulations may make provision about a matter relating to the achievement of targets mentioned in section 7(c) of this Law. 7A—Revenue and pricing principles (1) The revenue and pricing principles are the principles set out in subsections (2) to (7). (2) A regulated network service provider should be provided with a reasonable opportunity to recover at least the efficient costs the operator incurs in— (a) providing direct control network services; and (b) complying with a regulatory obligation or requirement or making a regulatory payment. (3) A regulated network service provider should be provided with effective incentives in order to promote economic efficiency with respect to direct control network services the operator provides. The economic efficiency that should be promoted includes— (a) efficient investment in a distribution system or transmission system with which the operator provides direct control network services; and (b) the efficient provision of electricity network services; and (c) the efficient use of the distribution system or transmission system with which the operator provides direct control network services. (4) Regard should be had to the regulatory asset base with respect to a distribution system or transmission system adopted— (a) in any previous— (i) as the case requires, distribution determination or transmission determination; or (ii) determination or decision under the National Electricity Code or jurisdictional electricity legislation regulating the revenue earned, or prices charged, by a person providing services by means of that distribution system or transmission system; or (b) in the Rules. (5) A price or charge for the provision of a direct control network service should allow for a return commensurate with the regulatory and commercial risks involved in providing the direct control network service to which that price or charge relates. (6) Regard should be had to the economic costs and risks of the potential for under and over investment by a regulated network service provider in, as the case requires, a distribution system or transmission system with which the operator provides direct control network services. (7) Regard should be had to the economic costs and risks of the potential for under and over utilisation of a distribution system or transmission system with which a regulated network service provider provides direct control network services. 7B—Innovative trial principles The following principles (the innovative trial principles) must be taken into account in determining whether a trial project is genuinely innovative in connection with granting a trial waiver or making a trial Rule relating to a trial project: (a) whether the trial project is focused on developing new or materially improved approaches to the use or supply of, or demand for, electricity; (b) whether the trial project is likely to contribute to the achievement of the national electricity objective; (c) whether the trial project is able to demonstrate a reasonable prospect of giving rise to materially improved services and outcomes for consumers of electricity; (d) whether the trial project maintains adequate consumer protections, including whether the trial project may involve risks to consumers and (if so), how those risks might be mitigated; (e) whether the trial project is unable to proceed under the existing regulatory framework; (f) whether the trial project has moved beyond research and development stages but is not yet established, or of sufficient maturity, size or otherwise commercially ready, to attract investment; (g) whether the trial project may negatively impact AEMO's operation of the national electricity system and national electricity market and, if there are impacts, how those impacts can be mitigated; (h) whether the trial project may impact on competition in a competitive sector of the national electricity market; (i) any other principle prescribed by the Regulations. 8—MCE statements of policy principles (1) Subject to this section, the MCE may issue a statement of policy principles in relation to any matters that are relevant to the exercise and performance by the AEMC of its functions and powers in— (a) making a Rule; or (b) conducting a review under section 45. (2) Before issuing a statement of policy principles, the MCE must be satisfied that the statement is consistent with the national electricity objective. (3) As soon as practicable after issuing a statement of policy principles, the MCE must give a copy of the statement to the AEMC. (4) The AEMC must publish the statement in the South Australian Government Gazette and on its website as soon as practicable after it is given a copy of the statement. 9—National Electricity Rules to have force of law The National Electricity Rules have the force of law in this jurisdiction. 10—Application of this Law and Regulations to coastal waters of this jurisdiction (1) This Law and the Regulations apply in the coastal waters of this jurisdiction. The Rules apply in this jurisdiction by operation of this Law. adjacent area has the same meaning as in the Petroleum (Submerged Lands) Act 1967 of the Commonwealth; coastal waters of this jurisdiction means any sea that is on the landward side of the adjacent area of this jurisdiction but is not within the limits of this jurisdiction. 10A—Corporations Act displacement (1) The Regulations may declare a relevant provision to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth in relation to the provisions of Chapter 5 of that Act. relevant provision means a provision of the Rules that relates to any of the following: (a) the application by AEMO of money in any security deposit fund; (b) the functions of AEMO under procedures relating to defaults by retailers; (c) the application (or drawing on) of credit support held by a regulated distribution system operator in respect of a retailer who is the subject of a RoLR event within the meaning of Part 6 of the National Energy Retail Law. Part 2—Participation in the National Electricity Market

Division 1—Registration 11—Electricity market activities in this jurisdiction (1) A person must not engage in the activity of owning, controlling or operating, in this jurisdiction, a generating system connected to the interconnected national electricity system or directly or indirectly connected to a regulated stand‑alone power system unless— (b) the person is the subject of a derogation that exempts the person, or is otherwise exempted by AEMO, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules. Subsection (1) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (2) A person must not engage in the activity of owning, controlling or operating, in this jurisdiction, a transmission system or distribution system that forms part of the interconnected national electricity system or that forms part of, or is directly or indirectly connected to, a regulated stand‑alone power system unless— (b) the person is the subject of a derogation that exempts the person, or is otherwise exempted by the AER, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules. Subsection (2) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (3) A person, other than AEMO, must not engage in the activity of operating or administering, in this jurisdiction, a wholesale exchange for electricity. Subsection (3) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (4) A person must not engage in, in this jurisdiction, the activity of purchasing electricity directly through a wholesale exchange unless— (b) the person is the subject of a derogation that exempts the person, or is otherwise exempted by AEMO, from the requirement to be a Registered participant in relation to that activity under this Law and the Rules. Subsection (4) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). 12—Registration or exemption of persons participating in national electricity market (1) A person engaged or proposing to engage in an activity referred to in section 11(1), (2) or (4) may request AEMO to register that person as a Registered participant in relation to that activity for the purposes of this Law and the Rules. (2) A person engaged or proposing to engage in an activity referred to in section 11(1) or (4) may request AEMO to exempt that person from registering as a Registered participant in relation to that activity for the purposes of this Law and the Rules. (3) A request under subsection (1) or (2) must be in accordance with the Rules. (4) On receipt of a request under subsection (1) to be registered as a Registered participant, AEMO may, subject to the Rules, register the person in such categories of registration as are specified in the Rules. (5) On receipt of a request under subsection (2) to be exempted from being registered as a Registered participant, AEMO may, subject to the Rules, grant the person the exemption. (6) Registration as a Registered participant under subsection (4) or an exemption granted under subsection (5) may be subject to such terms and conditions as AEMO considers appropriate in accordance with the Rules. 13—Exemptions for transmission system or distribution system owners, controllers and operators (1) A person engaged or proposing to engage in the activity referred to in section 11(2) may request the AER to exempt that person from registering as a Registered participant in relation to that activity for the purposes of this Law and the Rules. (2) A request under subsection (1) must be in accordance with the Rules. (3) On receipt of a request under subsection (1), the AER may, subject to the Rules, grant the person the exemption. (4) An exemption granted under subsection (3) may be subject to such terms and conditions as the AER considers appropriate in accordance with the Rules. 14—Evidence of registration or exemption (1) A certificate signed by an authorised officer certifying that a person named in the certificate is a Registered participant, or has been granted an exemption from registration under section 12 or 13 is evidence of the registration or exemption. A certificate may be in respect of a Registered participant registered in accordance with section 12 and the Rules, or in accordance with the Rules alone. authorised officer means— (a) for issuing a certificate that a person is a Registered participant or exempted from registration under section 12—AEMO's CEO or a person authorised by AEMO's CEO to issue certificates under this section; or (b) for issuing a certificate that a person is exempted from registration under section 13—a member of the AER. Division 2—Regulated network service providers 14A—Regulated transmission system operator must comply with transmission determination A regulated transmission system operator must comply with a transmission determination that applies to the electricity network services provided by that operator. Section 14A is a civil penalty provision: See the definition of civil penalty provision in section 2AA(1). 14B—Regulated distribution system operator must comply with distribution determination A regulated distribution system operator must comply with a distribution determination that applies to the electricity network services provided by that operator. Section 14B is a civil penalty provision: See the definition of civil penalty provision in section 2AA(1).

Part 2A—Retailer Reliability Obligation Division 1—General 14C—Definitions contract position day—see section 14K(4)(b)(i); forecast reliability gap—see section 14G(1); forecast reliability gap period—see section 14G(2); Ministerial reliability gap and Ministerial reliability gap period—see section 14JA(1)(b); net contract position—see section 14O(3); one‑in‑two year peak demand forecast, for a region during a specified period, means the peak demand forecast in accordance with the Rules— (a) to occur for the region during the period; and (b) where the likelihood is that the forecast amount will be exceeded once in any two‑year period; peak demand, for a period in a region, means the maximum electricity demanded, in megawatts, in the region during the period, determined in accordance with the Rules; region means a region of the national electricity market determined under the Rules; reliability gap period, in relation to a T‑1 reliability instrument, means the forecast reliability gap period stated in the instrument; reliability instrument means a T‑3 reliability instrument or a T‑1 reliability instrument; reporting day—see section 14K(4)(b)(ii); T‑1 cut‑off day—see section 14G(4); T‑1 reliability instrument means a reliability instrument for a forecast reliability gap made by the AER under section 14K that relates to the T‑1 cut‑off day for the forecast reliability gap; T‑3 cut‑off day—see section 14G(3); T‑3 reliability instrument means— (a) a reliability instrument for a forecast reliability gap made by the AER under section 14K that relates to the T‑3 cut‑off day for the forecast reliability gap; or (b) a reliability instrument for a Ministerial reliability gap period made by a Minister of a participating jurisdiction under section 14JA; trading interval means a period prescribed by the Rules to be a trading interval for the wholesale exchange; wholesale exchange means the wholesale exchange for electricity operated and administered by AEMO under this Law and the Rules. 14D—Meaning of liable entity for a region (1) Each of the following is a liable entity for a region: (a) a person who is a Registered participant mentioned in section 11(4)(a); (b) a person mentioned in section 11(4)(b) prescribed by the Rules to be a liable entity for the reliability obligations; (c) another person who has elected, under section 14E, to assume responsibility for the reliability obligations of a person mentioned in paragraph (a). (2) However, a person mentioned in subsection (1)(a) is not a liable entity for a region— (a) if the person is a Registered participant mentioned in subsection (1)(a) who is prescribed by the Rules not to be a liable entity for the reliability obligations; or (b) to the extent a person mentioned in subsection (1)(c) has elected to assume the person's responsibility for the reliability obligations for the region. 14E—Process for non‑liable persons to opt in to reliability obligations (1) This section applies to a person— (a) if— (i) the person purchases electricity supplied in a region from a liable entity; and (ii) the person's annual consumption of electricity is more than the threshold prescribed by the Rules for this section; or (b) prescribed by the Rules to be eligible to make an election under this section. (2) The person may elect to assume all or some of the liable entity's responsibility for the reliability obligations in relation to the electricity purchased for the period stated in the election. (3) An election under subsection (2) must— (a) state the extent to which the person has elected to assume the liable entity's responsibility; and (b) be made in the manner, form and timeframes required by the Rules. Division 2—Reliability forecasts and instruments 14F—Annual forecast for reliability gaps Each year, AEMO must— (a) perform the functions stated in the Rules for the purposes of forecasting for the occurrence of reliability gaps in future years; and (b) prepare and publish, in the manner, form and timeframes required by the Rules, information about the forecasting. 14G—Meaning of forecast reliability gap, forecast reliability gap period, T‑3 cut‑off day and T‑1 cut‑off day (1) A forecast reliability gap occurs when the amount of electricity forecast for a region, in accordance with the Rules, does not meet the reliability standard to an extent that, in accordance with the Rules, is material and a reference in this Part to a forecast reliability gap includes, where the context requires, a reference to a Ministerial reliability gap. (2) A forecast reliability gap period is the period during which a forecast reliability gap is forecast to occur and a reference in this Part to a forecast reliability gap period includes, where the context requires, a reference to a Ministerial reliability gap period. (3) The T‑3 cut‑off day for a forecast reliability gap is the day that is 3 years before the day the forecast reliability gap period for the forecast reliability gap starts. (4) The T‑1 cut‑off day for a forecast reliability gap is the day that is 1 year before the day the forecast reliability gap period for the forecast reliability gap starts. reliability standard means the standard prescribed by the Rules for the reliability of electricity for the national electricity market. 14H—Rules must provide timetable for reliability forecasts, requests and instruments (1) The Rules must provide for timeframes for the following matters in relation to a forecast reliability gap: (a) the period, that ends at least the stated number of days before the T‑3 cut‑off day and T‑1 cut‑off day, during which— (i) AEMO must make a request under section 14I; and (ii) the AER must decide whether to make a reliability instrument under section 14K; (b) the period— (i) ending on or before the T‑1 cut-off day, during which the contract position day must be set; and (ii) ending on or after the T‑1 cut-off day, during which the reporting day must be set; (c) the periods that apply for the matters mentioned in paragraph (a) or (b) if AEMO corrects a request under section 14J. (2) Also, the Rules must provide for 1 or more ways to determine whether a request for the AER to make a T‑1 reliability instrument under section 14I is related to a T‑3 reliability instrument. (3) For subsection (2), a prescribed way may include the extent to which the reliability gap period and trading intervals stated in a request for the AER to make a T‑1 reliability instrument must be the same as, or may be different to, the forecast reliability gap period and trading intervals stated in the T‑3 reliability instrument. (4) In addition, for subsection (2), in the case of a T‑3 reliability instrument made by a Minister of a participating jurisdiction, a prescribed way may include the extent to which the reliability gap period and trading intervals stated in a request for the AER to make a T‑1 reliability instrument must be the same as, or may be different to, any Ministerial reliability gap period or trading intervals stated in the T‑3 reliability instrument. 14I—AEMO must request reliability instrument (1) This section applies if— (a) AEMO is satisfied a forecast reliability gap is forecast to occur in a region; and (b) AEMO has published the information about the forecast that AEMO is required to publish under section 14F(b). (2) Subject to subsection (3), AEMO must request the AER to consider making a reliability instrument for the region in relation to the forecast reliability gap. (3) AEMO must make a request under subsection (2) for a T‑1 reliability instrument for a region only if the AER has made a related T‑3 reliability instrument or the Minister of the participating jurisdiction in which the region is located has made a related T‑3 reliability instrument. (4) A request under subsection (2)— (a) is made by giving a written notice about the request to the AER; and (b) must be made within the period required by the Rules; and (c) must state the following information about the forecast reliability gap: (i) the region in which the forecast reliability gap is forecast to occur; (ii) the first and last days of the forecast reliability gap period; (iii) for a request for a T‑3 reliability instrument—the trading intervals, during the forecast reliability gap period, for which liable entities may be required to hold net contract positions that are sufficient to meet their share of the one-in-two year peak demand forecast for the forecast reliability gap period; The trading intervals between 4pm and 8pm each weekday during the forecast reliability gap. (iv) for a request for a T‑1 reliability instrument—the trading intervals, during the forecast reliability gap period, for which liable entities will be required to hold net contract positions that are sufficient to meet their share of the one-in-two year peak demand forecast for the forecast reliability gap period if the T‑1 reliability instrument is made; The trading intervals between 4pm and 8pm each weekday during the forecast reliability gap. (v) AEMO's one‑in‑two year peak demand forecast for the forecast reliability gap period. (5) A request under subsection (2)— (a) may only apply to 1 forecast reliability gap period; and (b) may be made on more than 1 occasion in a year for different forecast reliability gap periods in the same region or in different regions. 14J—AEMO may correct request for reliability instrument (1) This section applies if a request under section 14I contains— (a) a material miscalculation of figures; or (b) a material mistake in the description of a person, period, thing or matter referred to in the request; or (c) a defect in form. (2) AEMO may correct the request by giving a written notice about the correction, and a correct request, to the AER. 14JA—Minister may make T‑3 reliability instrument (1) Subject to this section, a Minister of a participating jurisdiction may make a T‑3 reliability instrument for a region if— (a) the geographical area of the participating jurisdiction constitutes the whole or a part of the region; and (b) it appears to the Minister, on reasonable grounds, that there is a real risk during a period specified in the instrument (a Ministerial reliability gap period) that the supply of electricity to all or part of the region may be disrupted to a significant degree (a Ministerial reliability gap) on 1 or more occasions during the Ministerial reliability gap period. (2) Before making a T‑3 reliability instrument under subsection (1), the Minister must consult with AEMO and the AER in relation to the instrument the Minister proposes to make. (3) The regulations under the application Act of a participating jurisdiction (a local regulation) may provide for requirements (including procedures and any methodology) that must be complied with by the Minister in determining whether there is a real risk that the supply of electricity to all or part of a region may be disrupted to a significant degree. (4) A T‑3 reliability instrument under subsection (1) must state— (a) the date on which it takes effect; and (b) the region to which it applies; and (c) the first and last days of the Ministerial reliability gap period; and (d) the trading intervals during the Ministerial reliability gap period for which liable entities may be required to hold net contract positions that are sufficient to meet their share of the one‑in‑two year peak demand forecast for the Ministerial reliability gap period; and (e) AEMO's one‑in‑two year peak demand forecast for the Ministerial reliability gap period. (5) A Minister of a participating jurisdiction may vary or revoke a T‑3 reliability instrument made by the Minister under subsection (1). (6) As soon as practicable after making or varying a T‑3 reliability instrument under this section, the relevant Minister must— (a) publish a copy of the instrument or variation in accordance with any requirements of the local regulations; and (b) publish notice of the making or variation of the instrument in the South Australian Government Gazette. (7) The following provisions apply to a T‑3 reliability instrument under subsection (1): (a) the first day of a Ministerial reliability gap period specified in the instrument under subsection (4)(c) may not be earlier than 3 years after the day on which the instrument is made; (b) despite any other provision of this Part, a T‑3 reliability instrument under subsection (1) that relates to 1 or more days occurring in the period commencing on 1 December 2025 and ending on 31 December 2026 may be made at any time before 1 December 2023. (8) The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette. 14K—AER may make reliability instrument for a region (a) AEMO makes a request under section 14I in relation to a forecast reliability gap for a region; and (b) where AEMO's request is for a T‑1 reliability instrument for the region, the AER has made a related T‑3 reliability instrument or the Minister of the participating jurisdiction in which the region is located has made a related T‑3 reliability instrument for the region. (2) The AER must, within the period required by the Rules— (a) consider the request; and (b) decide whether or not to make a reliability instrument for the region in relation to the forecast reliability gap. (3) The AER may decide to make a reliability instrument only— (a) if the AER is satisfied— (i) a forecast reliability gap is forecast, in accordance with the Rules, to occur in the region; and (ii) it is appropriate in the circumstances, having regard to the criteria stated in the Rules, to make the reliability instrument; and (b) for the region, forecast reliability gap period and trading intervals as stated in AEMO's request, without modification. (4) A reliability instrument must state— (a) the information mentioned in section 14I(4)(c), as stated in AEMO's request; and (b) for a T‑1 reliability instrument— (i) the day (the contract position day) on which liable entities are required under section 14R to hold a sufficient net contract position for the reliability gap period; and (ii) the day (the reporting day) on which liable entities must report their net contract position as at the contract position day under section 14P. (5) The reliability instrument takes effect when it is published on the AER's website. (6) The AER must publish its decision to make or refuse to make a reliability instrument, and the reasons for the decision, on the AER's website before— (a) in the case of a T‑3 reliability instrument—the T‑3 cut-off day or an earlier day prescribed by the Rules; or (b) in the case of a T‑1 reliability instrument—the T‑1 cut-off day or an earlier day prescribed by the Rules. (7) If a request made under section 14I was corrected under section 14J, a reference in this section to the request is a reference to the request as corrected. 14L—Reliability instrument has force of law (1) A reliability instrument has the force of law in this jurisdiction. (2) An Act of this jurisdiction regulating the making of subordinate legislation does not apply to a reliability instrument. 14M—Failure to comply with consultation obligation does not affect validity (1) This section applies if the Rules require the AER to undertake stated consultation before making a reliability instrument under section 14K. (2) Failure to comply with the obligation does not invalidate or otherwise affect a reliability instrument. Division 3—Reliability obligations 14N—Application of Division (1) This Division applies to a person if— (a) the AER made a T‑1 reliability instrument for a forecast reliability gap in a region; and (b) the person is a liable entity for the region to which the instrument applies; and (c) the person is a liable entity on— (i) the contract position day; or (ii) in circumstances for which a later day is prescribed by the Rules—the later day. (2) In this Division— (a) a reference to a matter is a reference to the matter for the region to which the T‑1 reliability instrument applies; and (b) a reference to the reliability gap period is a reference to the forecast reliability gap period stated in the T‑1 reliability instrument; and (c) a reference to the stated trading intervals is a reference to the trading intervals stated in the T‑1 reliability instrument; and (d) a reference to the contract position day or the reporting day is a reference to the contract position day or reporting day stated in the T‑1 reliability instrument. 14O—Meaning of qualifying contract and net contract position (1) A qualifying contract of a liable entity is a contract or other arrangement to which the liable entity is a party— (a) that— (i) is directly related to the purchase or sale, or price for the purchase or sale, of electricity from the wholesale exchange during a stated period; and (ii) the liable entity entered into to manage its exposure in relation to the volatility of the spot price; or (b) of another type prescribed by the Rules to be a qualifying contract. (2) However, a qualifying contract does not include a contract or arrangement mentioned in subsection (1)(a) that is prescribed by the Rules to be an excluded contract for the reliability obligations. (3) A liable entity's net contract position during a particular period is— (a) the number of megawatts of electricity to which the liable entity's qualifying contracts under subsection (1) relate for the period; and (b) adjusted in accordance with the Rules to account for the likelihood that, despite the qualifying contracts, the liable entity retains exposure in relation to the volatility of the spot price during the period. spot price means the price for electricity purchased from the wholesale exchange in a region determined in accordance with the Rules. 14P—Obligation to report net contract position (1) The liable entity must give the AER a report about the liable entity's net contract position for the stated trading intervals during the reliability gap period as at the contract position day— (a) that complies with subsection (2); and (b) on or before the reporting day stated in the T‑1 reliability instrument. Subsection (1) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). (2) The report must— (a) include the information required under the Rules; and (b) be prepared and given in the manner and form required by the Rules. (3) The liable entity must not provide information in a report the liable entity knows is false or misleading in a material particular. Subsection (3) is a civil penalty provision: See the definition of "civil penalty provision" in section 2AA(1). 14Q—Adjustment of net contract position after contract position day A liable entity may adjust the liable entity's net contract position for a stated trading interval during a reliability gap period after the contract position day for the purposes of sections 14R and 14S in accordance with the Rules. 14R—Obligation to have contracted sufficiently for one-in-two year peak demand forecast (1) This section applies if the peak demand is more than the one-in-two year peak demand forecast for the reliability gap period during a stated trading interval in the reliability gap period. (2) The liable entity must comply with the obligation that the liable entity's net contract position for the trading interval is not less than the liable entity's share of the one-in-two year peak demand forecast for the trading interval determined in accordance with the Rules. Subsection (2) is a reliability obligation civil penalty provision: See the definition of "reliability obligation civil penalty provision" in section 2AA(1a). (3) For subsection (2), the liable entity's net contract position for a trading interval is— (a) if the liable entity has adjusted its net contract position under the Rules—the liable entity's net contract position for the trading interval as at the day provided under the Rules; or (b) otherwise—the liable entity's net contract position for the trading interval as at the contract position day. 14S—Obligation to maintain net contract position The Rules may require a liable entity to maintain its net contract position for the stated trading intervals in the reliability gap period during the period that— (a) starts on the contract position day; and (b) ends when the reliability gap period ends.

Division 4—AEMO as procurer of last resort 14T—AEMO may recover costs for procurer of last resort function (1) The Rules may provide for a cost recovery scheme that allows AEMO to recover the costs AEMO incurs as the procurer of last resort for a region. (2) AEMO is the procurer of last resort for a region if— (a) a T‑1 reliability instrument is made for a forecast reliability gap in a region; and (b) AEMO performs its function under the Rules of entering into contracts to secure the availability of electricity reserves in relation to the reliability gap period stated in the instrument in the region. (3) The cost recovery scheme under the Rules may provide for AEMO to recover the costs from the liable entities for the region who breach section 14R(2) or an obligation under the Rules mentioned in section 14S during the reliability gap period. (4) However, a liable entity is not liable to more than $100 000 000 under the cost recovery scheme in relation to a reliability gap period in a region.

Part 3—Functions and powers of the Australian Energy Regulator 15—Functions and powers of AER (1) The AER has the following functions and powers— (a) to monitor compliance by— (i) Registered participants and other persons with this Law, the Regulations and the Rules; and (ii) regulated network service providers with network revenue or pricing determinations; and (iii) AEMO with this Law, the Rules, the Regulations or a transmission determination; and (b) to investigate breaches or possible breaches of provisions of this Law, the Regulations or the Rules, including offences against this Law; and (ba) without limiting paragraphs (a) and (b), in relation to a person undertaking a trial project under a trial Rule or trial waiver, to monitor the conduct and outcomes of the trial project and investigate breaches or possible breaches by the person of— (i) this Law, the Regulations and the Rules; and (ii) in particular— (A) in the case of a person undertaking a trial project under a trial Rule—the trial Rule and any requirements imposed by the AEMC under section 104B; and (B) in the case of a person undertaking a trial project under a trial waiver—the trial waiver and any conditions to which the trial waiver is subject; and (c) to institute and conduct proceedings— (i) against persons under section 61 of this Law or section 44AAG of the Competition and Consumer Act 2010 of the Commonwealth; or (ii) in respect of Registered participants under section 63 of this Law; or (iii) against persons under section 68 of this Law; or (iv) in relation to offences against this Law; and (d) to institute and conduct appeals from decisions in proceedings referred to in paragraph (c); and (e) to exempt persons proposing to engage, or engaged, in the activity of owning, controlling or operating a transmission system or distribution system from being registered as Registered participants; and (ea) to prepare and publish reports on the financial and operational performance of network service providers in providing electricity network services; and (eb) to approve compliance programs of service providers relating to compliance by service providers with this Law or the Rules; and (eba) to implement and administer the market liquidity obligation in accordance with the Rules; and (ec) AER wholesale market monitoring functions and AER wholesale market reporting functions; and (ed) to make a rate of return instrument; and (f) AER economic regulatory functions or powers; and (fa) AER trial waiver functions; and (g) any other functions and powers conferred on it under this Law and the Rules. (2) The AER has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions. (3) However, the AER— (a) cannot make a transmission determination— (i) regulating the revenue AEMO earns or may earn; or (ii) regulating the price of electricity network services provided by AEMO unless the services are shared transmission services provided by means of, or in connection with, a declared shared network; and (b) cannot regulate by transmission determination or in any other way the price of any other service provided by AEMO, or the amount of any other charge made by AEMO. 16—Manner in which AER performs AER economic regulatory functions or powers (1) The AER must, in performing or exercising an AER economic regulatory function or power— (a) perform or exercise that function or power in a manner that will or is likely to contribute to the achievement of the national electricity objective; and (b) if the function or power performed or exercised by the AER relates to the making of a distribution determination or transmission determination, ensure that— (i) the regulated network service provider to whom the determination will apply; and (ii) any affected Registered participant; and (iii) if AEMO is affected by the determination—AEMO; and (iv) network service users or prospective network service users of the relevant services that the AER considers have an interest in the determination; and (v) any user or consumer associations or user or consumer interest groups that the AER considers have an interest in the determination, are, in accordance with the Rules— (vi) informed of material issues under consideration by the AER; and (vii) given a reasonable opportunity to make submissions in respect of the determination before it is made; and (c) in relation to making a relevant regulatory decision, specify— (i) the manner in which the constituent components of the decision relate to each other; and (ii) the manner in which that interrelationship has been taken into account in the making of the relevant regulatory decision. (2) In addition, the AER— (a) must take into account the revenue and pricing principles— (i) when exercising a discretion in making those parts of a distribution determination or transmission determination relating to direct control network services; or (ii) when making an access determination relating to a rate or charge for an electricity network service; and (b) may take into account the revenue and pricing principles when performing or exercising any other AER economic regulatory function or power, if the AER considers it appropriate to do so. (3) For the purposes of subsection (2)(a)(ii), a reference to a "direct control network service" in the revenue and pricing principles must be read as a reference to an "electricity network service". affected Registered participant means a Registered participant (other than the regulated network service provider to whom the distribution determination or transmission determination will apply) whose interests are affected by the distribution determination or transmission determination; user or consumer association means an association or body (whether incorporated or unincorporated)— (a) the members of which include more than 1 user, prospective user or end user; and (b) that represents and promotes the interests of those members in relation to the provision of electricity services; user or consumer interest group means an association or body (whether incorporated or unincorporated)— (a) that has, as an object or purpose, the object or purpose of representing and promoting the interests of users, prospective users or end users of electricity services; but (b) the members of which need not include a user, prospective user or end user. 17—Delegations Any delegation by the AER under section 44AAH of the Competition and Consumer Act 2010 of the Commonwealth extends to, and has effect for the purposes of, this Law, the Regulations and the Rules. 18—Confidentiality Section 44AAF of the Competition and Consumer Act 2010 of the Commonwealth has effect for the purposes of this Law, the Regulations and the Rules as if it formed part of this Law. See also Division 6.

Division 1A—Wholesale electricity markets—AER monitoring and reporting functions 18A—Definitions effective competition—see section 18B; electricity contract means an agreement, entered into by a Registered participant, however described and whether coming into existence before or after the commencement of this section, that relates to a wholesale electricity market and includes an agreement— (a) to supply electricity; or (b) to purchase electricity; or (c) for the transmission, distribution or storage of electricity; or (d) relating to fuel and other inputs used in the generation of electricity; or (e) relating to emissions produced or avoided in the generation of electricity; or (f) to supply a wholesale demand response service; financial risk management product means a contract or other arrangement, entered into by a Registered participant, to manage financial risk including, without limitation, risks associated with the following: (a) price volatility in a wholesale electricity market; (b) volatility in supply and demand in a wholesale electricity market; (c) volatility in the price of fuels and other inputs used in the generation of electricity; monitored market means— (a) a wholesale electricity market; and (b) a market for financial risk management products; and (c) a market prescribed by the Regulations; relevant agreement means— (a) an electricity contract; and (b) a financial risk management product. 18B—Meaning of effective competition For the purposes of this Division, the AER must, in assessing whether there is effective competition within a monitored market, have regard to— (a) whether there are active competitors in the market and whether those competitors hold a reasonably sustainable position in the market (or whether there is merely the threat of competition in the market); and (b) whether prices are determined on a long term basis by underlying costs rather than the existence of market power, even though a particular competitor may hold a substantial degree of market power from time to time; and (c) whether barriers to entry into the market are sufficiently low so that a substantial degree of market power may only be held by a particular competitor on a temporary basis; and (d) whether there is independent rivalry in all dimensions of the price, product or service offered in the market; and (e) any other matters that the AER considers relevant. 18C—AER wholesale market monitoring and reporting functions (1) The AER wholesale market monitoring functions are as follows: (a) to, in accordance with this Law and the Rules, regularly and systematically monitor and review the performance of monitored markets; (b) in connection with paragraph (a), to identify and analyse whether, in relation to a particular monitored market— (i) there is effective competition within the market; and (ii) there are features of the market that may be detrimental to effective competition within the market; and (iii) there are features of the market that may be impacting detrimentally on the efficient functioning of the market (and, if so, to assess the extent of the inefficiency); and (iv) there are features of the market that may be impacting detrimentally on the achievement of the national electricity objective; (c) other monitoring or analysing functions, conferred on the AER by the Rules, relating to the following matters within a monitored market: (i) offers; (ii) prices, including forecast and actual prices and bidding. (2) The AER wholesale market reporting functions are as follows: (a) to prepare, at least once every 2 years, a report on the results of the performance of the AER wholesale market monitoring functions; (b) to provide, as the AER thinks fit, advice on the results of the performance of the AER wholesale market monitoring functions to the MCE, including advice as to— (i) the AER's opinion (and reasons for the opinion) on whether those results identify, in relation to a monitored market, features of the market (whether systemic or otherwise) that— (A) may be detrimental to effective competition within the market; or (B) may be impacting detrimentally on the efficient functioning of the market, such that a legislative, regulatory or other response is required; and (ii) any limitations that the AER considers may restrict its ability to communicate with relevant persons about the results of the performance of the AER wholesale market monitoring functions; (c) other reporting requirements that relate to the AER wholesale market monitoring functions conferred on the AER by the Rules. (3) A report prepared under subsection (2)(a) must, in relation to a monitored market monitored during the period to which the report relates (which must be a period of at least 5 years), contain a discussion and analysis of— (a) the results of the performance of the AER wholesale market monitoring functions for the relevant period; and (b) features of the market that impact detrimentally on the efficient functioning of the market and the achievement of the national electricity objective, including (but not limited to)— (i) the presence of significant barriers to entry; or (ii) any other features of the industry structure that give rise to concerns that there may not be effective competition within the market; and (c) inefficiencies in the market, their causes and whether conditions in the market are such that the inefficiencies are likely to impact detrimentally in the long term on the efficient functioning of the market; and (d) the monitoring methodology applied and the results of indicators, tests and calculations performed; and (e) other matters of a long term nature relevant to effective competition within the market, including, for example, observations relating to planned increases in interconnector capacity and trends in demand for electricity and in the uptake of alternative sources of energy. (4) The AER must publish a report prepared under subsection (2)(a) on its website. (5) Before publishing a report prepared under subsection (2)(a) the AER must consult with relevant stakeholders. 18D—Information to be treated as confidential Information obtained by the AER under this Division is taken to have been given to the AER in confidence, whether or not a claim of confidentiality is made. 18E—Redaction of information (1) When obtaining a relevant agreement or information about a relevant agreement for the purposes of a function under this Division, the AER must consider a request to omit information that would identify a party to the agreement who is not a Registered participant. (2) The AER must grant the request unless satisfied that omitting the information is likely to materially affect the AER’s ability to undertake 1 or more functions under this Division.