SAIn ForceAct
National Electricity (South Australia) Act 1996
Div 3BEnforcement of access determinations
Start here
Get a plain-English read of Div 3B
Turn the raw legal text into a practical explanation grounded in National Electricity (South Australia) Act 1996.
Division 3B—Enforcement of access determinations
71ZA—Enforcement of access determinations
(1) If the Court is satisfied, on the application of a party to an access determination, that another party to the determination has engaged, is engaging, or is proposing to engage in conduct that constitutes a contravention of the determination, the Court may make all or any of the following orders:
(a) an order granting an injunction on such terms as the Court thinks appropriate—
(i) restraining the other party from engaging in the conduct; or
(ii) if the conduct involves refusing or failing to do something—requiring the other party to do that thing;
(b) an order directing the other party to compensate the applicant for loss or damage suffered as a result of the contravention;
(c) any other order that the Court thinks appropriate.
(2) The revocation of an access determination does not affect any remedy under subsection (1) in respect of a contravention of the determination that occurred when the determination was in force.
(3) If the Court has power under subsection (1) to grant an injunction restraining a person from engaging in particular conduct, or requiring a person to do anything, the Court may make any other orders (including granting an injunction) that it thinks appropriate against any other person who was involved in the contravention concerned.
(4) A reference in this section to a person involved in the contravention is a reference to a person who has—
(a) aided, abetted, counselled or procured the contravention; or
(b) induced the contravention, whether through threats or promises or otherwise; or
(c) been in any way (directly or indirectly) knowingly concerned in or a party to the contravention; or
(d) conspired with others to effect the contravention.
71ZB—Consent injunctions
On an application for an injunction under section 71ZA, the Court may grant an injunction by consent of all of the parties to the proceedings, whether or not the Court is satisfied that the section applies.
71ZC—Interim injunctions
The Court may grant an interim injunction pending determination of an application under section 71ZA.
71ZD—Factors relevant to granting a restraining injunction
The power of the Court to grant an injunction under section 71ZA restraining a person from engaging in conduct may be exercised whether or not—
(a) it appears to the Court that the person intends to engage again, or to continue to engage, in conduct of that kind; or
(b) the person has previously engaged in conduct of that kind; or
(c) there is an imminent danger of substantial damage to any person if the first mentioned person engages in conduct of that kind.
71ZE—Factors relevant to granting a mandatory injunction
The power of the Court to grant an injunction under section 71ZA requiring a person to do a thing may be exercised whether or not—
(a) it appears to the Court that the person intends to refuse or fail again, or to continue to refuse or fail, to do that thing; or
(b) the person has previously refused or failed to do that thing; or
(c) there is an imminent danger of substantial damage to any person if the first mentioned person refuses or fails to do that thing.
71ZF—Discharge or variation of injunction or other order
The Court may discharge or vary an injunction or order granted under this Division.
Division 4—Other civil proceedings
72—Obligations under Rules to make payments
(1) If, under the Rules—
(a) a relevant person is required to pay an amount to AEMO or another relevant person; or
(b) AEMO is required to pay an amount to a Registered participant,
and that amount is not paid within 28 days after it is due in accordance with the Rules, the relevant person to whom the amount is due, or AEMO (as the case requires), may recover that amount in a relevant court of competent jurisdiction as a civil debt payable to them.
(2) If, under the Rules, a relevant person is required to pay an amount to AEMO or another relevant person, or AEMO is required to pay an amount to a Registered participant, and the Rules do not specify a date for payment of that amount—
(a) that amount must be paid within the period of time specified in any notice to pay issued by the relevant person or AEMO (as the case requires) that specifies that amount; and
(b) the relevant person that issued the notice to pay, or AEMO (as the case requires), may, if that amount is not paid within 28 days after it is due in accordance with that notice, recover that amount in a relevant court of competent jurisdiction as a civil debt payable to them.
(3) Subsection (1) and (2) apply despite a relevant person or AEMO disputing, in accordance with the Rules, an amount to be paid under the Rules, or specified in a notice to pay, unless—
(a) the Rules otherwise provide; or
(b) the parties to the dispute agree otherwise; or
(c) a relevant Dispute resolution panel, in a civil claim Rule dispute in respect of the payment of an amount referred to in subsection (1) or (2), determines that the relevant subsection does not apply; or
(d) a relevant court of competent jurisdiction determines that subsection (1) or (2) does not apply.
civil claim Rule dispute means a dispute between relevant persons, or between AEMO and a relevant person, in relation to the payment of an amount under the Rules in respect of which the Rules provide that the dispute must be resolved in accordance with the Rules;
relevant Dispute resolution panel means a Dispute resolution panel appointed to hear and determine a civil claim Rule dispute;
relevant person means—
(a) a Registered participant; or
(b) a liable entity;
notice to pay includes a statement of payment, settlement statement, bill or invoice.
Division 5—Infringement notices
73—Definitions
tier 1 civil penalty provision means a civil penalty provision with a civil penalty determined under section 2AB(1)(c) or (d)(ii)(B);
tier 2 civil penalty provision means a civil penalty provision with a civil penalty determined under section 2AB(1)(b) or (d)(i) or (ii)(A);
tier 3 civil penalty provision means a civil penalty provision with a civil penalty determined under section 2AB(1)(a).
74—Power to serve a notice
(1) Subject to this section, the AER may serve an infringement notice on a person if the AER believes on reasonable grounds that the person has breached a civil penalty provision.
(1a) The AER must, however, serve an infringement notice not later than 12 months after the date on which the AER forms a belief that there has been a breach of a civil penalty provision.
(2) An infringement notice may be served on a person—
(a) if the person is a natural person—
(i) by delivering it personally to the person; or
(ii) by sending it by post addressed to the person to their usual or last known place of residence or business; or
(b) if the person is a body corporate—
(i) by delivering it personally to the registered office or usual or last known place of business of the body corporate; or
(ii) by sending it by post addressed to the body corporate to its registered office or usual or last known place of business.
75—Form of notice
An infringement notice must state—
(a) the date of the notice;
(b) that the alleged breach is a breach of the civil penalty provision;
(c) the nature, and a brief description, of the alleged breach;
(d) the date, time and place of the alleged breach;
(e) the infringement penalty for the alleged breach;
(f) the manner in which the infringement penalty may be paid;
(g) the time (being not less than 28 days after the date on which the notice is served) within which the infringement penalty must be paid;
(h) that, if the amount of the infringement penalty is paid before the end of the time specified in the notice, proceedings will not be instituted in respect of the alleged breach by the AER unless the notice is withdrawn before the end of that time in accordance with section 79;
(i) that the person is entitled to disregard the notice and defend any proceedings in respect of the civil penalty provision;
(j) any other particulars prescribed by the Regulations.
76—Infringement penalties
(1) The infringement penalty for a breach of a civil penalty provision is—
(a) in the case of a tier 3 civil penalty provision—
(i) if the breach is alleged to have been committed by a natural person—$6 790 or any lesser amount that is prescribed by the Regulations in relation to the civil penalty provision;
(ii) if the breach is alleged to have been committed by a body corporate—
(A) if the AER makes a determination under subsection (2)—$6 790 or any lesser amount that is prescribed by the Regulations in relation to the civil penalty provision; or
(B) in any other case—$33 900 or any lesser amount that is prescribed by the Regulations in relation to the civil penalty provision;
(b) in the case of a tier 1 or tier 2 civil penalty provision—
(i) if the breach is alleged to have been committed by a natural person—$13 600 or any lesser amount that is prescribed by the Regulations in relation to the civil penalty provision;
(ii) if the breach is alleged to have been committed by a body corporate—$67 800 or any lesser amount that is prescribed by the Regulations in relation to the civil penalty provision.
(2) In the case of a body corporate that is not a listed corporation or a body corporate that is subject to the infringement penalty by virtue only of being a related body corporate, the AER may, in a particular case, determine that the infringement penalty to be included in an infringement notice to be issued to the body corporate in relation to an alleged breach of a tier 3 civil penalty provision will be the amount applying under subsection (1)(a)(ii)(A) if the AER considers this to be an appropriate course of action after taking into account—
(a) the nature of the alleged breach; and
(b) the degree of financial impact on the body corporate if the higher infringement penalty under subsection (1)(a)(ii)(B) were to be imposed; and
(c) the extent to which the imposition of the higher infringement penalty would appear to be excessive in the circumstances; and
(d) any other matter considered relevant by the AER.
See Schedule 2 clause 37A, which provides for the amounts specified in this section to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER's website.
77—AER cannot institute proceedings while infringement notice on foot
On serving an infringement notice under this Division, the AER must not institute a proceeding in respect of the breach for which the infringement notice was served if—
(a) the time for payment stated in the infringement notice has not expired; and
(b) the infringement notice has not been withdrawn by the AER in accordance with section 79.
78—Late payment of penalty
The AER may accept payment of the infringement penalty even after the expiration of the time for payment stated in the infringement notice if—
(a) a proceeding has not been instituted in respect of the breach to which the infringement penalty relates; and
(b) the infringement notice has not been withdrawn by the AER in accordance with section 79.
79—Withdrawal of notice
(1) The AER may withdraw an infringement notice at any time before the end of the time for payment specified in the notice by serving a withdrawal notice on the person served with the infringement notice.
(2) A withdrawal notice may be served on a person—
(a) if the person is a natural person—
(i) by delivering it personally to the person; or
(ii) by sending it by post addressed to the person to their usual or last known place of residence or business; or
(b) if the person is a body corporate—
(i) by delivering it personally to the registered office or usual or last known place of business of the body corporate; or
(ii) by sending it by post addressed to the body corporate to its registered office or usual or last known place of business.
(3) An infringement notice may be withdrawn even if the infringement penalty has been paid.
80—Refund of infringement penalty
If an infringement notice is withdrawn in accordance with section 79, the amount of any infringement penalty paid must be refunded by the AER.
81—Payment expiates breach of civil penalty provision
No proceedings may be taken by the AER against a person on whom an infringement notice was served in respect of an alleged breach of a civil penalty provision if—
(a) the infringement penalty is—
(i) paid within the time for payment stated in the notice; and
(ii) not withdrawn by the AER within the time for payment stated in the notice in accordance with section 79; or
(b) the infringement penalty is accepted in accordance with section 78.
82—Payment not to have certain consequences
The payment of an infringement penalty under this Division is not and must not be taken to be an admission of a breach of a civil penalty provision or an admission of liability for the purpose of any proceeding instituted in respect of the breach.
83—Conduct in breach of more than one civil penalty provision
(1) If the conduct of a person constitutes a breach of 2 or more civil penalty provisions, an infringement notice may be served on the person under this Division in relation to the breach of any one or more of those provisions.
(2) However, the person is not liable to pay more than one infringement penalty in respect of the same conduct.
Clause 39 of Schedule 2 to this Law sets out further provisions in relation to double jeopardy.
85—Offences and breaches by corporations
(1) If a corporation contravenes an offence provision or breaches a civil penalty provision, each officer of the corporation is to be taken to have contravened the offence provision or to have breached the civil penalty provision if the officer knowingly authorised or permitted the contravention or breach.
(2) An officer of a corporation may be proceeded against under an offence provision or civil penalty provision pursuant to this section whether or not the corporation has been proceeded against under the provision.
(3) Nothing in this section affects the liability of a corporation for a contravention of an offence provision or for a breach of a civil penalty provision.
86—Corporations also in breach if officers and employees are in breach
If an officer or employee of a corporation commits an act, which is within the scope of the actual or apparent authority of the officer or employee, that would, if that act were committed by the corporation, constitute a breach of a provision of this Law, the Regulations or the Rules, the corporation is taken to have contravened that provision.
Part 7—The making of the National Electricity Rules
87—Definitions
AEMC initiated Rule means a Rule of the kind referred to in section 91(2);
AEMC Rule review means a review conducted by the AEMC under Division 5 of Part 4;
electricity market regulatory body means—
(a) the AER;
(b) AEMO;
(c) the Reliability Panel;
market initiated proposed Rule means a request for a Rule, including a trial Rule, made under section 91(1) in respect of which the AEMC publishes a notice under section 95;
more preferable Rule has the meaning given by section 91A;
non-controversial Rule means a Rule that is unlikely to have a significant effect on the national electricity market;
proposed Rule means—
(a) a market initiated proposed Rule; or
(b) a proposal for an AEMC initiated Rule; or
(c) a proposed more preferable Rule;
publish means—
(a) in relation to a notice required to be published under this Part (except section 90 or 103)—publish in the South Australian Government Gazette and on the AEMC's website;
(ab) in relation to a decision under section 94(2)—publish on the AEMC's website and make available at the offices of the AEMC;
(b) in relation to a proposed Rule referred to in section 95 and any other documents prescribed by the Regulations in relation to a proposed Rule referred to in section 95—publish on the AEMC's website and make available at the offices of the AEMC;
(c) in relation to a draft Rule determination or final Rule determination—publish on the AEMC's website and make available at the offices of the AEMC;
(ca) in relation to a notice setting out requirements imposed under section 104B—publish on the AEMC's website;
(d) in relation to any submissions or comments received by the AEMC under this Part—subject to section 108, publish on the AEMC's website and make available at the offices of the AEMC;
(e) in relation to a report prepared under section 108A—publish on the AEMC's website and make available at the offices of the AEMC;
trial Rule means a Rule for the purposes of a trial project;
urgent Rule means a Rule relating to any matter or thing that, if not made as a matter of urgency, will result in that matter or thing imminently prejudicing or threatening—
(a) the effective operation or administration of the wholesale exchange operated and administered by AEMO; or
(b) the safety, security or reliability of the national electricity system.
Subdivision 2—Rule making tests
88—Application of national electricity objective
(1) The AEMC may only make a Rule if it is satisfied that the Rule will or is likely to contribute to the achievement of the national electricity objective.
(2) For the purposes of subsection (1), the AEMC may give such weight to any aspect of the national electricity objective as it considers appropriate in all the circumstances, having regard to any relevant MCE statement of policy principles.
88A—AEMC must take into account form of regulation factors in certain cases
In addition to complying with sections 88 and 88B, the AEMC must take into account the form of regulation factors and any other matter the AEMC considers relevant—
(a) in making a Rule that—
(i) specifies an electricity network service as a direct control network service or negotiated network service; or
(ii) confers a function or power on the AER to specify under a network revenue or pricing determination an electricity network service (to which the relevant determination applies) as—
(A) a direct control network service; or
(B) a negotiated network service; or
(b) in revoking a Rule that has been made or is in force that—
(i) specifies an electricity network service as a direct control network service or negotiated network service; or
(ii) confers a function or power on the AER to specify under a network revenue or pricing determination an electricity network service (to which the relevant determination applies) as—
(A) a direct control network service; or
(B) a negotiated network service.
88B—AEMC must take into account revenue and pricing principles in certain cases
In addition to complying with sections 88 and 88A, the AEMC must take into account the revenue and pricing principles in making a Rule for or with respect to any matter or thing specified in items 15 to 24 and 25 to 26J of Schedule 1 to this Law.
88C—AEMC must take into account innovative trial principles in certain cases
In addition to complying with sections 88 to 88B, the AEMC must take into account the innovative trial principles in making a trial Rule.
89—AEMC must have regard to certain matters in relation to the making of jurisdictional derogations
In making a jurisdictional derogation, the AEMC must have regard to whether—
(a) the derogation provides for the orderly transfer of the regulation of the electricity industry in a participating jurisdiction under jurisdictional electricity legislation to the regulation of that industry under the national electricity legislation; or
(b) the derogation continues existing regulatory arrangements applying to the electricity industry in a participating jurisdiction and the Minister of the participating jurisdiction requesting the derogation has notified, in writing, the AEMC that he or she considers it necessary and appropriate that the existing regulatory arrangements continue; or
(c) the derogation is necessary to exempt, on an ongoing basis, generating, transmission or distribution systems or other facilities owned, controlled or operated in the participating jurisdiction to which the derogation relates from complying with technical standards relating to connection to the national electricity system set out in the Rules because those systems or facilities, by reason of their design or construction, are unable to comply with those standards.
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
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia may make Rules for or with respect to any matter or thing referred to in section 34 and Schedule 1 to this Law.
(2) As soon as practicable after making Rules under subsection (1), the Minister referred to in that subsection must—
(3) The notice referred to in subsection (2)(a) must state the date on which the Rules commence operation.
(4) The Rules made under subsection (1) may only be made on the recommendation of the MCE.
(5) If the Minister referred to in subsection (1) makes Rules under that subsection, the Minister cannot make another Rule under that subsection.
90A—South Australian Minister to make further Rules relating to distribution determinations consumer advocacy and other matters
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia may make Rules—
(a) for or with respect to any matter or thing referred to in—
(i) items 14A and 14B of Schedule 1 to this Law; and
(ii) items 25 to 26H of Schedule 1 to this Law; and
(iii) items 26I and 26J of Schedule 1 to this Law as they relate to distribution determinations and access determinations relating to access disputes about access to electricity network services provided by means of a distribution system;
(iv) items 26K, 30A to 30D and 34A to 34C of Schedule 1 to this Law;
(b) for or with respect to any matter or thing contemplated by, or is necessary or expedient for the purposes of the items of Schedule 1 to this Law referred to in paragraph (a);
(c) that revoke or amend a Rule as a consequence of the enactment of the Australian Energy Market Commission Establishment (Consumer Advocacy Panel) Amendment Act 2007 of South Australia.
(2) Despite anything to the contrary in this Law, the Minister referred to in subsection (1) may make a Rule under this section that is a derogation without a request from any person.
(3) Section 34(3) applies to the making of Rules under subsection (1) as if the Rules being made under subsection (1) were Rules being made by the AEMC.
(4) As soon as practicable after making Rules under subsection (1), the Minister referred to in that subsection must—
(7) If the Minister referred to in subsection (1) makes Rules under that subsection, the Minister cannot make another Rule under that subsection.
90AB—South Australian Minister to make initial Rules relating to consumer data right and further Rules relating to disclosure of data
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(a) for or with respect to the implementation of the CDR provisions relating to a designated energy sector, including the disclosure of CDR data; and
(b) for or with respect to the recovery of costs incurred by AEMO in the carrying out of functions under section 49(1)(fa); and
(c) for or with respect to access to and disclosure of metering data and NMI Standing Data; and
(d) that revoke or amend a Rule as a consequence of the enactment of the consumer data right amendments.
(3) Section 34(3) applies to Rules made under subsection (1) in the same way as it applies to Rules made by the AEMC.
(4) As soon as practicable after making Rules under this section, the South Australian Minister must—
consumer data right amendments means the amendments made to this Law by the National Electricity (South Australia) (Consumer Data Right) Amendment Act 2022.
90B—South Australian Minister to make initial Rules related to AEMO's functions under this Law
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules on any 1 or more of the following subjects:
(a) AEMO's statutory functions (including the additional advisory functions and the declared network functions);
(b) the subject matter of a new head of power added to Schedule 1 by the AEMO amendments;
(c) any other subject contemplated by, or consequential on, the AEMO amendments.
(3) Rules in the nature of a derogation may be made under subsection (1) even though there may not have been a request for a derogation.
(4) Section 34(3) applies to Rules made under subsection (1) in the same way as it applies to Rules made by the AEMC.
(5) As soon as practicable after making Rules under subsection (1), the South Australian Minister must—
(a) publish in the South Australian Government Gazette notice of the making of the Rules stating the date of commencement of the Rules or, if different Rules commence at different times, the various dates of commencement; and
90BA—South Australian Minister may make consequential Rules relating to rate of return instrument
(1) The South Australian Minister may make Rules that revoke or amend a Rule if the revocation or amendment is consequential on the enactment of the Statutes Amendment (National Energy Laws) (Binding Rate of Return Instrument) Act 2018.
(2) Without limiting subsection (1), the South Australian Minister may make a rule providing that the rate of return on capital under a rate of return instrument in force at the start of a regulatory period applies throughout the period.
(3) Section 34(3) applies to Rules made under this section in the same way it applies to Rules made by the AEMC.
(4) As soon as practicable after making Rules under this section, the South Australian Minister must—
(a) the date on which the Rules commence operation; and
(6) Rules may only be made under this section on the recommendation of the MCE.
(7) Once the first Rules have been made under subsection (1), no further Rules can be made under that subsection.
regulatory period means the period specified in a network revenue or pricing determination to be the regulatory period;
South Australian Minister means the Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia.
90C—South Australian Minister to make initial Rules related to smart meters
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules for or with respect to either or both of the following subjects:
(a) the smart meter amendments;
(b) any other subject contemplated by, or consequential on, the smart meter amendments.
(3) Section 34(3) applies to Rules made under subsection (1) in the same way as it applies to Rules made by the AEMC.
(4) As soon as practicable after making Rules under subsection (1), the South Australian Minister must—
(a) publish in the South Australian Government Gazette notice of the making of the Rules stating the date of commencement of the Rules or, if different Rules commence at different times, the various dates of commencement; and
(5) Once the first Rules have been made under subsection (1), no further Rules can be made under that subsection.
90D—South Australian Minister may make initial Rules relating to implementation of NERL and NERR
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules for or with respect to the following:
(a) retail support obligations between regulated distribution system operators and retailers;
(b) credit support arrangements between regulated distribution system operators and retailers;
(c) connection services;
(d) any other matter consequential on the making of the National Energy Retail Law or the National Energy Retail Rules or on the application of that Law or those Rules in a participating jurisdiction.
(2) The South Australian Minister may make Rules that amend the Rules made under subsection (1) for any purpose that is necessary or consequential on the application of the National Energy Retail Law or the National Energy Retail Rules in a participating jurisdiction.
(3) Rules in the nature of a derogation may be made under this section even though there may not have been a request for a derogation.
(4) Section 34(3) applies to Rules made under this section in the same way as it applies to Rules made by the AEMC.
(5) As soon as practicable after making Rules under this section, the South Australian Minister must—
(6) The notice referred to in subsection (5)(a) must state—
(7) Rules may only be made under this section on the recommendation of the MCE.
(8) Rules cannot be made under this section once any one of the participating jurisdictions applies the National Energy Retail Law as a law of that jurisdiction.
90DA—South Australian Minister to make initial Rules relating to regulatory sandboxing
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(i) the regulatory sandboxing amendments; and
(ii) any other subject contemplated by, or necessary or expedient for the regulatory sandboxing amendments; and
(b) that revoke or amend a Rule as a consequence of the enactment of the regulatory sandboxing amendments.
(2) section 34(3) applies to Rules made under subsection (1) in the same way as it applies to Rules made by the AEMC.
(3) As soon as practicable after making Rules under this section, the South Australian Minister must—
(5) Rules may only be made under subsection (1) on the recommendation of the MCE.
regulatory sandboxing amendments means the amendments made to this Law by the Statutes Amendment (National Energy Laws) (Regulatory Sandboxing) Act 2022.
90E—South Australian Minister to make initial Rules relating to Energy Consumers Australia
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(a) for or with respect to Energy Consumers Australia (including provisions for its funding); and
(b) for or with respect to any other subject contemplated by, or consequential on, the ECA amendments; and
(c) that revoke or amend a Rule as a consequence of the enactment of the ECA amendments.
90EA—South Australian Minister to make initial Rules relating to Retailer Reliability Obligation
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(i) the Retailer Reliability Obligation amendments; and
(ii) any other subject contemplated by, or consequential on, the Retailer Reliability Obligation amendments; and
(b) that revoke or amend a Rule as a consequence of the enactment of the Retailer Reliability Obligation amendments.
(2) Rules may be made under subsection (1) only on the recommendation of the MCE.
(3) For the purposes of subsection (1), a reference in section 34(1) to the national electricity system is taken to be a reference to the national electricity system or a local electricity system (as the context requires).
(4) Rules in the nature of a derogation may be made under subsection (1) even though there may not have been a request for a derogation.
(5) Rules made under subsection (1) may be differential Rules.
(6) Section 34(3) applies to Rules made under subsection (1) in the same way as it applies to Rules made by the AEMC.
(7) If the Minister makes Rules under subsection (1), the Minister cannot make another Rule under that subsection.
(b) does not have effect with respect to 1 or more of those systems;
(a) an electricity system in this jurisdiction prescribed or declared in or under the application Act of this jurisdiction to be a local electricity system; and
(b) the generating systems and other facilities owned, controlled or operated in this jurisdiction connected to that local electricity system;
Retailer Reliability Obligation amendments means the amendments made to this Law by the National Electricity (South Australia) (Retailer Reliability Obligation) Amendment Act 2019.
90EB—South Australian Minister to make initial Rules relating to stand‑alone power systems
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(a) for or with respect to the stand‑alone power system amendments; and
(b) for or with respect to any other subject contemplated by, or necessary or expedient for, the stand‑alone power system amendments; and
(c) that revoke or amend a Rule as a consequence of the enactment of the stand‑alone power system amendments.
stand‑alone power system amendments means the amendments made to this Law by the Statutes Amendment (National Energy Laws) (Stand-Alone Power Systems) Act 2021.
90EC—South Australian Minister to make initial Rules relating to Ministerial reliability instrument
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(i) the Ministerial reliability instrument amendments; and
(ii) any other subject contemplated by, or necessary or expedient for, the Ministerial reliability instrument amendments; and
(b) that revoke or amend a Rule as a consequence of the enactment of the Ministerial reliability instrument amendments.
(3) For the purposes of subsection (1), a reference in section 34(1) to the national electricity system is taken to be a reference to the national electricity system or a local electricity system (as the context requires).
(4) Rules in the nature of a derogation may be made under subsection (1) even though there may not have been a request for a derogation.
(5) Rules made under subsection (1) may be differential Rules.
(6) As soon as practicable after making Rules under this section, the South Australian Minister must—
(7) The notice referred to in subsection (6)(a) must state—
(8) Rules may only be made under subsection (1) on the recommendation of the MCE.
(9) Once the first Rules have been made under subsection (1), no further Rules can be made under that subsection.
(10) In this section—
(b) does not have effect with respect to 1 or more of those systems;
(a) an electricity system in this jurisdiction prescribed or declared in or under the application Act of this jurisdiction to be a local electricity system; and
(b) the generating systems and other facilities owned, controlled or operated in this jurisdiction connected to that local electricity system;
Ministerial reliability instrument amendments means the amendments made to this Law by the National Electricity (South Australia) (Ministerial Reliability Instrument) Amendment Act 2023.
90ED—South Australian Minister may make initial Rules relating to national electricity objective
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia may, within 9 months after the commencement of this section—
(a) make Rules for or with respect to any matter or thing necessary or expedient to implement the amended objective; and
(b) make Rules for or with respect to any other subject contemplated by, or necessary or expedient for implementing, the amended objective; and
(c) make Rules that revoke or amend a Rule as a consequence of the enactment of the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Act 2023 of South Australia.
(2) Rules in the nature of a derogation may be made under subsection (1) even though there may not have been a request for a derogation.
(3) Section 34(3) applies to the making of Rules under subsection (1) as if the Rules being made under subsection (1) were Rules being made by the AEMC.
(4) As soon as practicable after making Rules under subsection (1), the Minister referred to in that subsection must—
(7) If the Minister referred to in subsection (1) makes Rules under that subsection, the Minister cannot make another Rule under that subsection.
amended objective means the national electricity objective as in force on the commencement of this section.
90EE—South Australian Minister to make initial Rules relating to data access
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia (the South Australian Minister) may make Rules—
(a) for or with respect to the data access amendments; and
(b) that revoke or amend a Rule as a consequence of the enactment of the data access amendments.
(3) Rules in the nature of a derogation may be made under subsection (1) even though there may not have been a request for a derogation.
(4) As soon as practicable after making Rules under subsection (1), the South Australian Minister must—
(7) Once the first Rules have been made under subsection (1), no further Rules can be made under that subsection.
data access amendments means the amendments made to this Law by the Statutes Amendment (National Energy Laws) (Data Access) Act 2025.
90EF—South Australian Minister to make initial Rules relating to wholesale market monitoring matters
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia may make Rules for the following:
(a) the making of—
(i) market monitoring information orders; and
(ii) wholesale market monitoring guidelines;
(b) the way the AER consults—
(i) on the wholesale market monitoring guidelines under section 18EO(3); and
(ii) the public, under section 18EH, before making a market monitoring information order.
90EG—South Australian Minister to make initial Rules relating to orderly exit management
(1) The Minister in right of the Crown of South Australia administering Part 2 of the National Electricity (South Australia) Act 1996 of South Australia may make Rules for matters or things necessary or expedient for the following:
(a) the making of mandatory operation directions under Part 8AA Division 2;
(b) the information that must be given to the AER, or otherwise disclosed, under Part 8AA Division 3;
(c) the functions of the financial vehicle under section 118AS;
(d) the administration of the OEM fund under Part 8AA Division 4 Subdivision 2;
(e) payments to and by MOD generators under section 118AY;
(f) the orderly exit management cost recovery mechanism under Part 8AA Division 4 Subdivision 4.
90EH—South Australian Minister to make initial Rules relating to credit support for RoLR events
(1) The South Australian Minister may make Rules for or with respect to AEMO credit support requirements in relation to RoLR events.
(2) Section 34(3) applies to Rules made under this section in the same way it applies to Rules made by the AEMC.
(3) As soon as practicable after making Rules under this section, the South Australian Minister must—
(4) The notice must state—
(a) the date on which the Rules commence operation; and
(5) Rules under this section may only be made on the recommendation of the MCE.
(6) Once the first Rules have been made under this section, no further Rules can be made under this section.
RoLR event has the same meaning as in Part 6 of the National Energy Retail Law.
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
(1) The South Australian Minister may make Rules recommended by the MCE in accordance with subsection (2).
(2) The MCE may only recommend the making of Rules under subsection (1) if—
(a) the Rules are for or with respect to any matter or thing referred to in section 34 and Schedule 1 to this Law; and
(b) the Energy Security Board has recommended to the MCE that it recommend the making of the Rules under subsection (1).
(3) For the purposes of subsection (2), references in section 34(1) to the national electricity system will be taken to be references to the national electricity system or a local electricity system (as the context requires).
(4) The Energy Security Board may only make a recommendation for the purposes of subsection (2)(b) in relation to Rules if—
(a) the Rules are in connection with any of the following:
(i) energy security and reliability of the NEM or long‑term planning for the NEM;
(ii) energy security and reliability of a local electricity system or long‑term planning for a local electricity system; and
(b) the Energy Security Board is satisfied that the Rules are consistent with the national electricity objective; and
(c) the Energy Security Board has undertaken consultation on the Rules in accordance with any requirements determined by the MCE.
(5) In considering whether Rules are consistent with the national electricity objective, the Energy Security Board must regard the reference in the national electricity objective to the national electricity system as a reference to—
(a) the national electricity system; or
(b) 1 or more, or all, of the local electricity systems; or
(c) all or any combination of the electricity systems referred to in paragraphs (a) and (b),
as the Energy Security Board considers appropriate in the circumstances, having regard to the nature, scope or operation of the Rules.
(6) Rules in the nature of a derogation may be made under this section even though there may not have been a request for a derogation.
(7) Rules made under subsection (1) may be differential Rules.
(8) Section 34(3) applies to Rules made under subsection (1) in the same way as that section applies to Rules made by the AEMC.
(9) As soon as practicable after making Rules under this section, the South Australian Minister must—
(10) The notice referred to in subsection (9)(a) must state—
(11) In this section—
(b) does not have effect with respect to 1 or more of those systems,
but is not a jurisdictional derogation, participant derogation or Rule that has effect with respect to an adoptive jurisdiction for the purpose of section 91(8);
(a) an electricity system in this jurisdiction prescribed or declared in or under the application Act of this jurisdiction to be a local electricity system; and
(b) the generating systems and other facilities owned, controlled or operated in this jurisdiction connected to that local electricity system.
Division 3—Procedure for the making of a Rule by the AEMC
91—Initiation of making of a Rule
(1) The AEMC may make a Rule at the request of any person, the MCE or the Reliability Panel.
Section 34 and Schedule 1 to this Law specify the subject matter for Rules.
(2) The AEMC must not make a Rule without a request under subsection (1) unless—
(a) it considers the Rule corrects a minor error in the Rules; or
(b) it considers the Rule involves a non-material change to the Rules; or
(c) the Rule is in respect of any matter that is prescribed by the Regulations as a matter on which it may make a Rule on its own initiative.
(3) A Minister of a participating jurisdiction, after consulting with the Ministers of the other participating jurisdictions, may request the AEMC to make a jurisdictional derogation in respect of the jurisdiction of which he or she is a Minister.
(4) The Reliability Panel may only request the AEMC to make a Rule that relates to its functions.
Section 38(2) describes the functions of the Reliability Panel.
(5) A person conferred a right, or on whom an obligation is imposed, under the Rules (including a Registered participant) may request the AEMC to make a participant derogation that relates to, as the case requires—
(a) that person; or
(b) a class of person of which that person is a member.
(6) AEMO may itself, or on behalf of itself and a Registered participant or a class of Registered participant, request the AEMC to make a participant derogation that relates to (as the case requires)—
(a) it; or
(b) it and the Registered participant; or
(c) it and the class of Registered participant.
(7) A request for a Rule regulating AEMO's declared network functions may only be made by—
(a) AEMO; or
(b) a declared transmission system operator that is a party to a network agreement with AEMO; or
(c) a Minister of an adoptive jurisdiction.
(8) The AEMC may only make a Rule that has effect with respect to an adoptive jurisdiction if satisfied that the proposed Rule is compatible with the proper performance of AEMO's declared network functions.
(9) The AEMC may only make a Rule that affects the allocation of powers, functions and duties between AEMO and a declared transmission system operator if—
(a) AEMO consents to the making of the Rule; or
(b) the Rule is requested by the Minister of the relevant adoptive jurisdiction.
91A—AEMC may make more preferred Rule in certain cases
The AEMC may make a Rule that is different (including materially different) from a market initiated proposed Rule (a more preferable Rule) if the AEMC is satisfied that, having regard to the issue or issues that were raised by the market initiated proposed Rule (to which the more preferable Rule relates), the more preferable Rule will or is likely to better contribute to the achievement of the national electricity objective.
91B—AEMC may make Rules that are consequential to a Rule request
(1) Despite section 91(2), the AEMC may, having regard to a request to make a Rule under section 91(1), make a Rule under this Law, the National Gas Law or the National Energy Retail Law that is necessary or consequential, or corresponds, to the Rule.
(2) For the purposes of this Part, the AEMC must treat a Rule it may make under subsection (1) as if it were part of the Rule to be made on that request.
92—Contents of requests for Rules
(1) A request for the making of a Rule—
(a) must contain the information prescribed by the Regulations or the Rules (or both); and
(ab) must, subject to section 92A, be accompanied by the fee prescribed by the Regulations (if any); and
(b) may be accompanied by a draft of the Rule to be made.
(2) A request for the making of a participant derogation must specify a date on which the participant derogation, if made, will expire.
(3) A request for the making of a jurisdictional derogation may specify a date on which the jurisdictional derogation, if made, will expire.
92A—Waiver of fee for Rule requests
The AEMC may waive the payment of any fee prescribed by the Regulations for the purposes of section 92.
93—Consolidation of 2 or more Rule requests
(1) If the AEMC considers it necessary or desirable that 2 or more requests for the making of a Rule should be dealt with together, the AEMC may—
(a) treat those requests as 1 request for the purposes of this Part (a consolidated Rule request); or
(b) treat any later request as a submission in relation to the earliest Rule request.
(2) For the purposes of this Part, the AEMC may treat a consolidated Rule as being received by it on the day it receives either the first or last of the Rule requests forming part of the consolidated Rule request.
94—Initial consideration of request for Rule
(1) Subject to this Part, as soon as practicable after receiving a request for the making of a Rule, the AEMC must consider whether—
(a) the request for the Rule appears to—
(i) contain the information prescribed by the Regulations or the Rules (or both); and
(ii) not be misconceived or lacking in substance; and
(b) the subject matter of the request appears to be for or with respect to a matter in respect of which the AEMC may make a Rule under this Law; and
Section 34 and Schedule 1 to this Law specify the subject matter for Rules.
(c) the subject matter of the request appears to relate to the subject matter of—
(i) a Rule made, or a request for the making of a Rule under section 91(1) not proceeded with, in the 12 months immediately before the date of receipt of the request; or
(ii) another request for the making of a Rule under section 91(1) in respect of which the AEMC is taking action under this Part; and
(d) in the case of a request for a trial Rule—the subject matter of the request appears to relate to the subject matter of—
(i) a trial waiver granted by the AER; or
(ii) an application for a trial waiver that has been received by the AER (but that has not been granted at the time of the request for the trial Rule).
(2) If the AEMC considers that—
(a) in the case of a request for the making of any Rule—having regard to the matters set out in subsection (1), it should not take any action under this Division in respect of the request; or
(b) in the case of a request for the making of a trial Rule—it should not take any action under this Division in respect of the request on the basis that—
(i) the trial project to which the request relates—
(A) is unlikely to be carried out; or
(B) offers no reasonable prospect of leading to better services and outcomes for consumers of electricity; or
(ii) the trial Rule requested—
(A) is unnecessary to enable the trial project to be undertaken (including, for example, because the trial project could be undertaken under a trial waiver); or
(B) is unlikely to enable the trial project to be undertaken; or
(C) should be the subject of a request for a Rule other than a trial Rule,
the AEMC must make a decision to that effect and inform the person or body, in writing, that requested the Rule of that decision.
(3) Despite subsection (1) or (2), the AEMC may make a decision to the effect that it should not take any action under this Division in respect of the request for the making of the Rule if the person or body that made the request has not complied with a notice in accordance with section 94A.
(4) In making a decision under subsection (3), the AEMC must have regard to any representation it receives under section 94A(4).
(5) A decision under subsection (2) or (3) must—
(a) set out the reasons for the decision; and
(b) be given to the person or body that made the request without delay; and
(c) in the case where the decision was made only because of the matters set out in subsection (1)(c)—be published.
(6) Subject to this Part, if the AEMC considers that, having regard to the matters set out in subsection (1), it should take action under this Division in respect of the request for the making of the Rule, the AEMC must publish notice of the request for the making of a Rule in accordance with section 95.
(7) The AEMC must, as soon as practicable after receiving a request for the making of a trial Rule, consult with AEMO on the matter.
94A—AEMC may request further information from Rule proponent in certain cases
(a) receives a request for the making of a Rule under section 91(1); and
(b) considers, having regard to the nature and content of the request, that further information is required from the person or body that has made the request to assist it to understand the request's purpose or content.
(2) The AEMC may, by notice in writing, request the person or body that made the request under section 91(1) to provide the AEMC further information.
(3) A notice under subsection (2) must specify—
(a) the kind of information the AEMC requires from the person or body; and
(b) the time within which that information must be provided to the AEMC.
(4) A person or body given a notice under this section may make a written representation to the AEMC as to why it cannot provide the information specified in the notice within the time specified in the notice.
95—Notice of proposed Rule
(a) considers that it should take action under this Division in respect of a request for the making of a Rule; or
(b) forms an intention to make an AEMC initiated Rule.
(1a) The AEMC must publish—
(a) notice of the request or intention (as the case requires); and
(b) a draft of the proposed Rule; and
(c) any other document prescribed by the Regulations.
(2) A notice published under this section must—
(a) invite written submissions and comments from any person or body in relation to the proposed Rule by the date specified in the notice by the AEMC, being a date that is not less than 4 weeks from the date the notice is published; and
(b) contain any other information prescribed by the Regulations.
(3) Nothing in this Division is to be taken as requiring the AEMC to publish notices under this section in the same order as it—
(a) considers that it should take action under this Division in respect of a request for the making of a Rule; or
(b) forms an intention to make an AEMC initiated Rule.
96—Publication of non-controversial or urgent final Rule determination
(1) Subject to this section, if the AEMC considers that—
(a) an AEMC initiated Rule is a non-controversial Rule; or
(b) a request for a Rule is a request for a non-controversial Rule; or
(c) a request for a Rule is a request for an urgent Rule,
the AEMC may make the relevant Rule in accordance with this Division (except sections 98 to 101) and as if the period of time within which the final Rule determination in respect of the relevant Rule must be published were 8 weeks from the date of publication of the notice under section 95.
(2) Before making a Rule as set out in subsection (1), the AEMC must include in a notice under section 95 a statement to the effect that the AEMC may make the relevant Rule if the AEMC does not receive a written request, and reasons, not to do so from any person or body within 2 weeks of publication of that notice.
(3) The AEMC must not make a Rule in accordance with this section if, following publication of a notice under section 95 containing a statement to the effect set out in subsection (2)—
(a) the AEMC receives a written request not to do so; and
(b) the reasons set out in that request are not, in its opinion, misconceived or lacking in substance.
(4) If the AEMC is of the opinion that the reasons given by a person or body in a written request for it not to make the non-controversial Rule or urgent Rule are misconceived or lacking in substance, the AEMC must—
(a) make a decision to that effect; and
(b) give the person or body its reasons, in writing, for that decision without delay.
(5) If the AEMC is of the opinion that the reasons given by a person or body in a written request for it not to make the non-controversial Rule or urgent Rule, are not misconceived or lacking in substance, the AEMC must publish a notice to the effect that it will make the relevant Rule in accordance with this Division (other than this section).
96AA—Publication of final Rule determination for trial Rule
(1) If the AEMC considers that a request for a Rule is a request for a trial Rule, the AEMC may make the relevant Rule in accordance with this Division (except sections 98 to 101) and as if the period of time within which the final Rule determination in respect of the relevant Rule must be published were 10 weeks from the date of publication of the notice under section 95.
(2) Sections 96 and 96A do not apply to a request for a trial Rule.
96A—"Fast track" Rules where previous public consultation by electricity market regulatory body or an AEMC review
(a) an electricity market regulatory body has—
(i) made a request for the making of a Rule under section 91(1); and
(ii) consulted with the public on the nature and content of the request before making that request; or
(b) a person or the MCE has made a request for the making of a Rule under section 91(1) on the basis of—
(i) a recommendation for the making of a Rule contained in a MCE directed review; or
(ii) a conclusion for the making of a Rule contained in an AEMC Rule review.
(2) The AEMC may take action under this Division in respect of the request without complying with section 95(2)(a) or 98 if it is of the opinion that—
(a) in the case where the request has been made by an electricity market regulatory body in the circumstances described in subsection (1)(a)—the consultation conducted by the electricity market regulatory body was adequate, having regard to—
(i) the nature and content of that request; and
(ii) the kind of consultation conducted by the electricity market regulatory body;
(b) in the case where the request has been made by a person or the MCE in the circumstances described in subsection (1)(b)—
(i) the request reflects, or is consistent with, the relevant recommendation contained in the MCE directed review or relevant conclusion in the AEMC Rule review (as the case requires); and
(ii) there was adequate consultation with the public by the AEMC on the content of the relevant recommendation or relevant conclusion during the MCE directed review or AEMC Rule review (as the case requires).
(3) To avoid doubt—
(a) section 94 applies to a request for the making of a Rule to which this section applies; and
(b) section 97 does not apply to a request for the making of a Rule to which this section applies.
97—Right to make written submissions and comments
Any person or body, within the period specified in a notice under section 95, may make a written submission or comment in relation to the proposed Rule to which the notice relates.
98—AEMC may hold public hearings before draft Rule determination
(1) The AEMC may (but need not), at any time after publication of a notice under section 95 and before making a draft Rule determination, hold a hearing in relation to any proposed Rule.
(2) Notice of a hearing held under this section must—
(b) contain the information prescribed by the Regulations (if any).
99—Draft Rule determinations
(1) The AEMC must make a draft Rule determination before making a final Rule determination in relation to the proposed Rule.
(1a) Subject to this Part, the AEMC must, within 10 weeks after the date specified in a notice under section 95, publish—
(a) the draft Rule determination; and
(b) notice of the making of the draft Rule determination.
(1b) In the case of a proposed Rule to which section 96A applies, the AEMC must publish the draft Rule determination and notice of the making of the draft Rule determination within 5 weeks after the date notice under section 95(1a) is published.
(2) A draft Rule determination must contain—
(a) the reasons of the AEMC as to whether or not it should make the proposed Rule, including—
(i) in the case where the proposed Rule is not a proposed more preferable Rule, the reasons of the AEMC as to whether it is satisfied the proposed Rule will or is likely to contribute to the achievement of the national electricity objective; and
(ii) in the case of a proposed more preferable Rule, the reasons of the AEMC as to whether it is satisfied the proposed more preferable Rule will or is likely to better contribute to the achievement of the national electricity objective than the market initiated Rule request to which the more preferable Rule relates; and
(iii) if the AEMC is required to take into account the form of regulation factors or the revenue and pricing principles, the reasons of the AEMC taking those factors or principles (as the case requires) into account; and
(iv) the reasons of the AEMC having regard to any relevant MCE statement of policy principles; and
(v) the reasons of the AEMC having regard to any other matters the AEMC considers relevant; and
(b) if the AEMC determines to make a Rule, a draft of the Rule to be made; and
(c) any other matters that are prescribed by the Regulations.
(3) The draft of the Rule to be made need not be the same as the draft of the proposed Rule to which the notice under section 95 relates.
(4) A notice referred to in subsection (1a) must—
(a) invite written submissions and comments from any person or body in relation to the determination within a period specified by the AEMC, being a period not less than 6 weeks from the date of publication of the notice; and
(b) include a statement to the effect that any interested person or body may request, in writing within one week after the publication of the notice, the AEMC to hold a hearing in accordance with section 101; and
(c) contain any other information prescribed by the Regulations.
100—Right to make written submissions and comments in relation to draft Rule determination
Any person or body, within the period specified in a notice under section 99(1a)(b), may make a written submission or comment in relation to a draft Rule determination to which the notice relates.
101—Pre-final Rule determination hearings
(1) The AEMC may (but need not), at any time after publication of a notice under section 99(1a)(b) and before making a final Rule determination, hold a hearing in relation to a draft Rule determination.
(1a) In addition, any person or body may request, in writing, within 1 week after the publication of a notice under section 99(1a)(b), the AEMC to hold a hearing in relation to a draft Rule determination.
(2) Despite subsection (1), the AEMC may decide not to a hold a hearing in relation to a draft Rule determination.
(2a) Without limiting the reasons why the AEMC may decide not to hold a hearing in relation to a draft Rule determination, the AEMC may decide not to hold a hearing if—
(a) the person or body that requests the AEMC to hold a hearing does not make a written submission or comment in accordance with section 100; and
(b) no other person or body requests the AEMC to hold a hearing.
(3) If the AEMC decides not to hold a hearing after a request under subsection (2), it must give the person or body that requested the hearing its reasons, in writing, for declining that person's or body's request.
(4) If the AEMC decides to hold a hearing, or agrees to hold a hearing after a request under subsection (1a), the AEMC must—
(a) appoint a date (being not later than 3 weeks after the date of publication of the notice under section 99), time and place for the holding of the hearing; and
(b) publish a notice of that date, time and place.
102—Final Rule determinations
(1) Subject to section 102A, the AEMC must make a final Rule determination as to whether to make a proposed Rule.
(1a) Subject to this Part, the AEMC must, within 6 weeks after the period for written submissions or comments in relation to the draft Rule determination ends, publish—
(a) the final Rule determination; and
(b) notice of the making of the final Rule determination.
(2) A final Rule determination must contain—
(a) the reasons of the AEMC as to whether or not it should make a Rule, including—
(i) in the case where the Rule to be made is not a more preferable Rule, the reasons of the AEMC as to whether it is satisfied the Rule will or is likely to contribute to the achievement of the national electricity objective; and
(ii) in the case where the Rule to be made is a more preferable Rule, the reasons of the AEMC as to whether it is satisfied the more preferable Rule to be made will or is likely to better contribute to the achievement of the national electricity objective than the market initiated Rule request to which the more preferable Rule relates; and
(iii) if the AEMC is required to take into account the form of regulation factors or the revenue and pricing principles, the reasons of the AEMC taking those factors or principles (as the case requires) into account; and
(iiia) if the AEMC is required to take into account the innovative trial principles, the reasons of the AEMC taking those principles into account; and
(iv) the reasons of the AEMC having regard to any relevant MCE statement of policy principles; and
(v) the reasons of the AEMC having regard to any other matters the AEMC considers relevant; and
(b) any other matters that are prescribed by the Regulations.
(3) A notice referred to in subsection (1a) must contain the information prescribed by the Regulations.
102A—Proposal to make more preferable Rule
(1) If, in view of the response to a draft Rule determination, the AEMC proposes to make a more preferable Rule, the AEMC may—
(a) make, and publish notice of, a draft Rule determination in respect of the proposed more preferable Rule; or
(b) make, and publish notice of, a final Rule determination for the proposed more preferable Rule.
(2) The final Rule determination, or further draft Rule determination, and the related notice, must be published within 6 weeks after the end of the period for submissions or comments on the earlier draft Rule determination.
103—Making of Rule
(1) Subject to this section, if the AEMC, in its final Rule determination, determines to make a Rule, the AEMC must make the relevant Rule as soon as practicable after the publication of the final Rule determination.
(2) Notice of the making of the Rule must be published in the South Australian Government Gazette as soon as practicable after the making of the Rule.
(3) The Rule that is made in accordance with subsection (1) need not be the same as the draft of the proposed Rule to which a notice under section 95 relates or the draft of a Rule contained in a draft Rule determination.
(4) In the case of—
(a) a participant derogation; or
(b) a jurisdictional derogation where the request for the derogation specified a date on which the derogation will expire,
the AEMC must not make the derogation unless that derogation specifies a date on which it will expire.
(5) The AEMC must not make a trial Rule unless the date on which the Rule will expire (which must be no more than 5 years after the date on which the trial Rule commences operation) is specified in the Rule.
104—Operation and commencement of Rule
A Rule made under section 103 commences operation on the day the relevant notice is published in the South Australian Government Gazette or on any day after that day that is provided for in the relevant notice or the Rule.
104A—Extension of trial Rule
(1) Subject to this section, the AEMC may, on request, extend, by notice, the date on which a trial Rule will expire (the expiry date) to a later date, being a date that falls not more than the period prescribed by the Regulations after the expiry date.
(2) Before extending the expiry date of a trial Rule, the AEMC—
(a) must have regard to the innovative trial principles; and
(b) must consult with the AER; and
(c) if the AEMC considers that the trial Rule, or the trial project to which the trial Rule relates, may impact on AEMO's operation of the national electricity system and national electricity market—must consult with AEMO; and
(d) may consult with any other person.
(3) A request under subsection (1) must—
(a) be made to the AEMC at least 60 days before the expiry date; and
(b) specify the length of the extension required.
(4) A notice under subsection (1) must—
(b) specify the later date referred to in subsection (1).
(5) The expiry date of a trial Rule may only be extended once under subsection (1).
104B—AEMC may impose requirements on proponent of trial project on making trial Rule
(1) The AEMC may, in connection with making a trial Rule, by notice, impose requirements on a person or body that proposes to undertake the trial project (a proponent) to which the trial Rule relates.
(2) Without limiting subsection (1), the AEMC may impose a requirement that 1 or more reports be submitted to the AER in relation to the trial project.
(3) A notice under subsection (1) must—
(b) comply with any other requirements prescribed by the Regulations.
(4) A proponent to which requirements imposed under this section apply must comply with those requirements.
(5) If a proponent breaches subsection (4) and, as a result of the breach, the AER recommends that a trial Rule be revoked before the date on which the Rule will expire, the AEMC may—
(a) revoke the trial Rule; or
(b) vary or revoke a requirement imposed on the proponent, or impose further requirements on the proponent.
104C—AEMC may revoke trial Rule on recommendation of AER
(1) The AEMC may, on the recommendation of the AER, revoke a trial Rule in accordance with this Part.
(2) This section is in addition to, and does not limit, section 104B.
104D—Special provision for revocation of trial Rule
(1) Division 1 Subdivision 2, Division 3 and Division 4 do not apply to the revocation of a trial Rule by the AEMC under section 104B(5)(a) or 104C(1).
(2) As soon as practicable after revoking a trial Rule under section 104B(5)(a) or 104C(1), the AEMC must—
(a) publish notice of the revocation, specifying the date on which the revocation takes effect, on its website; and
(b) publish reasons for the revocation on its website.
105—Rule that is made to be published on website and made available to the public
On publication of a notice in accordance with section 103(2), the AEMC must, without delay—
(a) publish the Rule on its website; and
(b) make copies of the Rule available to the public at its offices.
106—Evidence of the National Electricity Rules
A document purporting to be a copy of—
(a) the National Electricity Rules; or
(b) the initial National Electricity Rules; or
(c) an amendment to the initial National Electricity Rules or the National Electricity Rules,
endorsed with a certificate to which the seal of the AEMC has been duly affixed certifying the document is such a copy, is evidence that the document is such a copy.
Division 4—Miscellaneous provisions relating to Rule making by the AEMC
107—Extensions of periods of time in Rule making procedure
(1) Despite anything to the contrary in this Part, the AEMC may, by notice, extend a period of time specified in Division 3 if the AEMC considers that a request for a Rule raises issues of sufficient complexity or difficulty or there is a material change in circumstances such that it is necessary that the relevant period of time specified in Division 3 be extended.
(2) A notice under subsection (1) must—
(b) set out the period of time specified in Division 3 to be extended; and
(c) specify a new period of time to apply in the place of the period of time specified in Division 3.
(2a) A notice under subsection (1) may be published at the same time as a notice under section 95.
(3) The AEMC may only extend a period of time under this section before the expiry of that time.
107A—AEMC may extend period of time for making of final Rule determination for further consultation
(a) a person or body raises an issue in—
(i) a submission or comment in relation to a draft Rule determination; or
(ii) a hearing held under section 98 or 101; and
(b) the AEMC considers the issue raised by the person or body requires further public consultation in relation to the proposed Rule or draft Rule determination.
(2) Despite anything to the contrary in this Part and without limiting section 107, the AEMC may, by notice, extend the period of time specified in section 102 within which it must make a final Rule determination.
(3) A notice under subsection (2) must—
(b) specify a new period of time to apply in the place of the period of time specified in section 102; and
(c) specify the issue on which the AEMC requires further public submissions and comments; and
(d) invite written submissions and comments from any person or body by the date specified in the notice.
(4) The new period of time must not have the effect of extending the relevant period of the time specified in section 102 by more than 4 weeks.
(5) The AEMC may only extend the period of time under this section before the expiry of the time specified in section 102.
(6) Any person or body, within the period specified in a notice under subsection (2) may make a written submission or comment in relation to the issue specified in the notice.
108—AEMC may publish written submissions and comments unless confidential
(1) Subject to this section, the AEMC may publish any information in any written submission or comment given to it under this Part unless—
(a) the person or body who gave the information, claims, when giving it to the AEMC, that it contains confidential information; and
(b) the AEMC decides that the written submission or comment contains confidential information.
(2) A written submission or comment given to the AEMC under this Part that has been claimed under this section to contain confidential information, and that the AEMC has decided contains confidential information, may be published if that information is omitted.
(3) If information is omitted from a published written submission or comment given to the AEMC under this Part as being confidential information, a note to that effect must be included in the submission or comment at the place in the submission or comment from which the information is omitted.
See also section 31 of this Law and section 24 of the Australian Energy Market Commission Establishment Act 2004 of South Australia.
108A—AEMC must publicly report on Rules not made within 12 months of public notification of requests
(a) publishes a notice under section 95 in respect of a request for the making of a Rule; but
(b) does not make a final Rule determination in respect of that request within 12 months after the publication of that notice (the report trigger date).
(2) The AEMC must prepare a report on the request as soon as practicable after the report trigger date.
(3) A report prepared under this section must—
(a) contain the reasons why the final Rule determination has not been made within 12 months after the publication of the notice under section 95; and
(b) specify when the AEMC considers it will make the final Rule determination; and
(c) be published.
108B—Subsequent rule making by AEMC
Nothing in Division 2 Subdivision 2 is to be taken to affect the power of the AEMC to make Rules (in accordance with this Law and the Regulations) for or with respect to any matter or thing referred to in section 34 and Schedule 1 to this Law (whether before or after Rules have been made under that Division).
Part 8—Safety and security of the National Electricity System
109—Definitions
AEMO load shedding procedures means procedures developed under section 112;
jurisdictional load shedding guidelines means guidelines prepared under section 111;
sensitive loads means the loads or classes of loads specified as such in jurisdictional load shedding guidelines.
110—Appointment of jurisdictional system security coordinator
(1) A Minister of this jurisdiction may, for the purposes of this Law and the Rules, appoint a person to be the jurisdictional system security coordinator for this jurisdiction.
(2) An appointment under subsection (1) must be in writing.
(3) AEMO is eligible for appointment as a jurisdictional system security coordinator for 1 or more participating jurisdictions.
(4) In its capacity as a jurisdictional system security coordinator for a participating jurisdiction, AEMO is subject to direction by the Minister for the relevant jurisdiction with respect to—
(a) jurisdictional load shedding guidelines; and
(b) the order in which loads are to be shed or restored; and
(c) the classification of loads as sensitive; and
(d) the sensitive loads that are not to be shed or restored without the Minister's approval.
111—Jurisdictional system security coordinator to prepare jurisdictional load shedding guidelines
(1) The jurisdictional system security coordinator must, subject to the Rules, prepare, maintain, and if necessary, update guidelines in relation to the shedding, and restoration, of loads in this jurisdiction for—
(a) the purpose of enabling AEMO to maintain power system security; or
(b) reasons of public safety.
(2) The guidelines must specify—
(a) loads or classes of loads as sensitive loads; and
(b) requirements in relation to the shedding and restoration of loads that AEMO must comply with, in accordance with the Rules, in the event that it is necessary to do so for AEMO to maintain power system security, or for reasons of public safety.
(3) The guidelines must also specify the following lists—
(a) a list of sensitive loads or classes of sensitive loads in this jurisdiction—
(i) to be shed and restored and the order in which those loads are to be shed or restored in the event that it is necessary to do so for AEMO to maintain power system security, or for reasons of public safety; and
(ii) which must not be shed, or the restoration of which must not be prevented, without the prior approval of the jurisdictional system security coordinator; and
(b) a list of loads or classes of loads (other than sensitive loads) to be shed and restored in this jurisdiction and the order in which those loads are to be shed or restored in the event that it is necessary to do so for AEMO to maintain power system security, or for reasons of public safety.
(4) If AEMO is not the jurisdictional system security coordinator, the coordinator must give a copy of the jurisdictional load shedding guidelines and any updated guidelines to AEMO.
(5) The jurisdictional load shedding guidelines must reflect the terms of any relevant agreement or determination about load shedding under section 115A.
112—AEMO to develop load shedding procedures for each participating jurisdiction
(1) AEMO must, in accordance with the Rules, develop, maintain, and if necessary, update procedures in relation to the manner in which loads or classes of loads (including sensitive loads) will be shed or restored—
(a) in this jurisdiction in accordance with the jurisdictional load shedding guidelines; and
(b) as between participating jurisdictions.
(2) AEMO (if not the jurisdictional system security coordinator) must give to the jurisdictional system security coordinator a copy of the AEMO load shedding procedures, and any updated procedures, applicable to this jurisdiction.
(3) The procedures must be consistent with the relevant jurisdictional load shedding guidelines.
113—Exchange of information
(1) For the purpose of enabling AEMO to maintain power system security, or for reasons of public safety, the relevant authorities may exchange information about loads and load shedding in the participating jurisdictions.
(2) A relevant authority must pass on information about loads and load shedding to the Minister of a particular participating jurisdiction so far as the information may be necessary—
(a) to enable the Minister—
(i) to manage the safety and security of those parts of the national electricity system in the participating jurisdiction; or
(ii) to manage the safety and security of a gas system in the participating jurisdiction; or
(b) for reasons of public safety.
(3) The Minister may give information received under subsection (2) to other Ministers or officials responsible for public safety, or power system or gas system safety or security, in a participating jurisdiction.
(4) A person to whom information is disclosed under subsection (3) must not further disclose the information unless the further disclosure is to a Minister or officials responsible for public safety, or power system or gas system safety or security in a participating jurisdiction.
information includes confidential information relating to loads or classes of loads given to AEMO by a Registered participant;
information about loads and load shedding means information about—
(a) loads and classes of loads in a particular participating jurisdiction; and
(b) the possibility or probability that the supply of electricity will prove insufficient to meet the loads or some other reason for load shedding may arise; and
(c) the loads to be shed in the event of insufficiency of supply or for any other reason in accordance with—
(i) the Rules; or
(ii) jurisdictional load shedding guidelines; or
(iii) AEMO load shedding procedures;
relevant authority means—
(a) AEMO; or
(b) a jurisdictional system security coordinator.
114—AEMO to ensure maintenance of supply of sensitive loads
AEMO must use its reasonable endeavours to ensure that the national electricity system (other than regulated stand‑alone power systems) is operated in a manner that maintains the supply to sensitive loads.
115—Shedding and restoring of loads
(1) Subject to subsection (2), if AEMO considers that it is necessary for loads to be shed in this jurisdiction to maintain power system security, or for reasons of public safety, AEMO may direct the shedding or restoration of loads (including sensitive loads) in this jurisdiction in accordance with the AEMO load shedding procedures developed for this jurisdiction.
(2) AEMO must use reasonable endeavours to obtain the approval of the jurisdictional system security coordinator before directing the shedding, or preventing the restoration of, sensitive loads or a class of sensitive loads that the jurisdictional system security coordinator has listed in the jurisdictional load shedding guidelines as requiring the coordinator's approval before—
(a) those loads or classes of loads may be shed; or
(b) the restoration of those loads or classes of loads may be prevented.
(3) The jurisdictional system security coordinator must not unreasonably withhold the approval referred to in subsection (2).
(4) Subsections (2) and (3) are inapplicable where AEMO is itself the jurisdictional system security coordinator.
115A—Determination of customer load shedding arrangement
(1) AEMO may, with the approval of the Minister of a participating jurisdiction, enter into an agreement with a Registered participant to determine the arrangements to apply to customer load shedding in the relevant participating jurisdiction where the available supply of electricity is, or is likely to become, less than sufficient for the reasonable requirements of the community.
(2) If AEMO is unable to reach agreement with a Registered participant about load shedding arrangements within 6 months after AEMO offers to enter into an agreement with the Registered participant for that purpose, the Minister may determine those arrangements.
(3) The Minister must, at least 14 days before arrangements take effect under subsection (2), give the Registered participant and AEMO written notice of the arrangements.
(4) The Minister may appoint a person to review and advise the Minister on any proposed arrangements under this section.
(5) In determining load shedding arrangements, the Minister must take into account the need to—
(a) protect the national electricity system; and
(b) ensure the safe and effective supply of electricity; and
(c) ensure that the available supply of electricity is fairly distributed to the community; and
(d) increase the available supply of electricity; and
(e) regulate the use of the available supply of electricity, having regard to the needs of the community.
(6) AEMO must publish any arrangements determined under this section on its website.
116—Actions that may be taken to ensure safety and security of national electricity system
(1) AEMO may, if it considers that it is necessary—
(a) to maintain power system security; or
(b) for reasons of public safety,
direct a Registered participant, or authorise a person to direct a Registered participant, or subject to subsection (2), authorise a person, to take one or more relevant actions in accordance with the Rules.
(2) A person authorised under subsection (1) must not take any relevant action unless the person has directed the Registered participant to take the action and the Registered participant has failed to take the action within a reasonable period.
(2a) A direction under this section should, if practicable, be consistent with load shedding arrangements agreed or determined under section 115A.
(3) AEMO does not incur any civil monetary liability for any relevant action taken by a Registered participant in accordance with a direction given by it under this section unless the direction is given in bad faith.
(4) A person who directs a Registered participant to take a relevant action, or who takes a relevant action in accordance with an authorisation under subsection (1), does not incur any civil monetary liability for the action taken by the Registered participant or by the person unless the person gives the direction, or takes the relevant action, in bad faith.
(5) A Registered participant does not incur any civil monetary liability for a relevant action taken in accordance with a direction given to it under this section unless that action is taken in bad faith
relevant action means—
(a) to switch off, or re-route, a generator;
(b) to call equipment into service;
(c) to take equipment out of service;
(d) to commence operation or maintain, increase or reduce active or reactive power output;
(e) to shut down or vary operation;
(f) to, in accordance with the Rules and any procedures made in accordance with the Rules in relation to load shedding, shed or restore load;
(g) to do any other act or thing necessary to be done to maintain power system security or for reasons of public safety.
117—AEMO to liaise with Minister of this jurisdiction and others during an emergency
(1) AEMO must, if required to do so by reason, or as a result, of an emergency direction, liaise with—
(a) a Minister or the jurisdictional system security coordinator of this jurisdiction; or
(b) if the Minister or jurisdictional system security coordinator has nominated another person as the person with whom AEMO must liaise, that person.
emergency direction means any direction given or issued, or order given, under or in accordance with any legislation of this jurisdiction, or instrument made under or for the purposes of that legislation, during an emergency in this jurisdiction.
118—Obstruction and non-compliance
(1) A person must not, without reasonable excuse, obstruct or hinder a person in the exercise of a power under section 116.
(a) in the case of a natural person—$34 000;
(b) in the case of a body corporate—$170 000.
See Schedule 2 clause 37B, which provides for criminal penalty amounts 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) A person must not, without reasonable excuse, fail to comply with a direction under section 116.
(a) in the case of a natural person—$34 000;
(b) in the case of a body corporate—$170 000.
See Schedule 2 clause 37B, which provides for criminal penalty amounts to be adjusted every 3 years to reflect movements in the consumer price index. The adjusted amounts are published on the AER's website.
Part 8AA—Orderly exit management
Division 1—Preliminary
118AA—Definitions
affiliate, of a Registered participant, means the following:
(a) a related body corporate of the Registered participant;
(b) a related entity of the Registered participant;
(c) a person involved in a joint venture with—
(i) the Registered participant; or
(ii) another affiliate of the Registered participant;
authorised deposit‑taking institution means an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth;
contribution determination—see section 118AZB(1);
contribution order—see section 118AZC(1);
distribution network service provider has the meaning given by the Rules;
early closure proposal means—
(a) a notice given to AEMO, after 31 December 2020, in accordance with the Rules that a Registered participant, registered as a Generator, expects a relevant generating unit to cease supplying electricity—
(i) earlier than the expected closure date previously notified to AEMO; and
(ii) within 7 years of the date of the notice to AEMO; or
(b) an application by a Registered participant for a notice exemption for a relevant generating unit;
financial vehicle means the entity established by the Minister under section 118AS;
generator payment instrument means a payment order made under section 118AY(1)(b);
mandatory operation direction—see section 118AD(1);
mandatory operation period—see section 118AD(2)(e);
Minister means the Minister of the participating jurisdiction in which the relevant generating unit, to which an early closure proposal applies, is located;
MOD generating unit means a relevant generating unit subject to a mandatory operation direction;
notice exemption means an exemption given to a Registered participant by the AER, in accordance with the Rules, from the requirement to notify AEMO of the intended closure date of a relevant generating unit at least 42 months before the intended closure date;
OEM payments—see section 118AZC(1);
orderly exit management fund means the fund established by the financial vehicle in accordance with section 118AT;
payment order means an order made under section 118AY(1);
related body corporate has the same meaning as in the Corporations Act 2001 of the Commonwealth;
related entity has the same meaning as in the Corporations Act 2001 of the Commonwealth;
relevant generating unit means a thermal power turbine and related plant used in the production of electricity that, in accordance with the Rules, is classified as a scheduled generating unit;
Rules obligations means the obligations imposed on a Registered participant by a Rule made under section 118AD(3)(c);
voluntary agreement means a voluntary agreement under section 118AH.
118AB—Application of Part to jurisdiction
(1) This Part does not apply in a participating jurisdiction unless a regulation, made by the Governor of the participating jurisdiction acting on the recommendation of the Minister, is in force specifying for the jurisdiction—
(a) the date from which this Part applies; and
(b) the extent to which this Part applies; and
(c) the way the financial vehicle is to be established.
(2) An agreement made between the Minister and a Registered participant before this Part applies in the participating jurisdiction may be prescribed by a regulation made under this section as a voluntary agreement.
Division 2—Mandatory operation direction
118AC—Generating units that may be subject to mandatory operation direction
The Minister may issue a mandatory operation direction for a relevant generating unit if the relevant Registered participant has submitted an early closure proposal for the unit.
118AD—Mandatory operation direction
(1) The Minister may issue a mandatory operation direction requiring a Registered participant to operate 1 or more relevant generating units if the Minister is satisfied that giving the direction is necessary—
(a) for the national electricity system or a region within the national electricity system—
(i) to maintain power system security; or
(ii) to maintain system reliability; or
(b) for reasons of public safety.
(2) A mandatory operation direction must be given in writing and include the following:
(a) the Registered participant to whom the direction applies;
(b) the relevant generating units to which the direction applies;
(c) the way the relevant generating units must be operated;
(d) the generating capacity that must be supplied by a relevant generating unit or a group of specified units;
(e) the period (a mandatory operation period) for which a relevant generating unit must be operated, being—
(i) if the Registered participant submitted an early closure proposal for the generating unit prior to the commencement of this Part—a period of not more than 3 years after the closure date specified in the early closure proposal; or
(ii) if the Registered participant submitted an early closure proposal for the generating unit after the commencement of this Part—a period ending no later than the expected closure date previously notified to AEMO;
(f) the date the mandatory operation period commences;
(g) the circumstances in which the Minister must consider amending the direction.
(3) The Rules may—
(a) prescribe additional matters that must be included in a mandatory operation direction; and
(b) prescribe the circumstances, or the types of circumstance, that may be specified under subsection (2)(g); and
(c) prescribe obligations that must be complied with by a Registered participant who receives a mandatory operation direction; and
(d) make provision for the insurances that must be maintained in respect of a MOD generating unit; and
(e) make provision for the advice the Minister obtains from AEMO, including the following:
(i) the scope of advice;
(ii) matters that must be included in the advice;
(iii) the way the advice must be given.
(4) Before issuing a mandatory operation direction, the Minister—
(a) must obtain advice from AEMO on the following:
(i) the impact, or likely impact, of the closure of the relevant generating unit on—
(A) the security of the power system; and
(B) the reliability of the national electricity system;
(ii) alternatives to issuing the direction; and
(b) must be satisfied there are no reasonably practicable alternatives to issuing the direction; and
(c) may obtain advice from the AER in accordance with the Rules; and
(d) may obtain and consider other information the Minister considers to be relevant; and
(e) must give the Registered participant to whom the direction applies and the AER a draft of the proposed direction and an opportunity to comment on the proposed direction.
(5) The Minister is not required to consider a comment made more than the prescribed number of days after a draft of the proposed direction is given to the Registered participant and the AER under subsection (4)(e).
maintenance of system reliability includes managing the risk of low probability events that may have a high impact;
prescribed number of days means—
(a) 20 business days; or
(b) the number of business days prescribed by the Rules.
118AE—Registered participant must comply with mandatory operation direction
(1) A Registered participant who receives a mandatory operation direction must comply with—
(a) the direction; and
(b) the Rules obligations.
(2) A Registered participant does not incur liability for breach of contract, breach of confidence or another civil wrong by complying with a mandatory operation direction, including the Rules obligations.
(3) Despite subsection (1), the Rules may prescribe—
(a) circumstances in which a Registered participant is not required to comply with a mandatory operation direction; and
(b) the information a Registered participant who is not required to comply with a mandatory operation direction must give the AER.
118AF—Minister to make information public
(1) The Minister must, when issuing a mandatory operation direction, make the following information publicly available in accordance with the Rules:
(a) the reasons the Minister is satisfied, under section 118AD(1), that giving the direction is necessary;
(b) a list of the energy projects considered before making the direction.
(2) The Minister must make the following information available in the way and at the time prescribed by the Rules:
(a) the advice received from AEMO under section 118AD(4)(a)(ii);
(b) other information prescribed by the Rules.
energy project includes the following:
(a) energy generation projects;
(b) energy storage projects;
(c) energy transmission projects.
118AG—AEMO to make information public
AEMO must make the advice given to the Minister under section 118AD(4)(a)(i) publicly available within 60 days after the advice is given to the Minister.
118AH—Voluntary agreement
(1) Before issuing a mandatory operation direction, the Minister must negotiate in good faith to seek agreement with the Registered participant for continued operation of the relevant generating units.
(2) If the Minister is satisfied, on reasonable grounds, that a Registered participant is not negotiating in good faith, the Minister may terminate the negotiations and issue a mandatory operation direction.
(3) The Minister does not fail to negotiate in good faith with a Registered participant only because the Minister takes 1 or more steps under section 118AD(4)—
(a) before or during the negotiations; or
(b) without the knowledge of the Registered participant.
(4) The Minister must, within 28 days after entering into a voluntary agreement, make publicly available the Minister's reasons for entering into the agreement.
Section 118AO requires a Registered participant to give certain information to the Minister and the AER at certain times, including at the direction of the Minister or the AER.
118AI—Mandatory operation direction applies to affiliates
(1) A mandatory operation direction, including the Rules obligations, applies to an affiliate of a Registered participant in the same way as the direction applies to the Registered participant if the affiliate provides services for 1 or more relevant generating units subject to the mandatory operation direction.
(2) An affiliate of a Registered participant provides services for a relevant generating unit if the affiliate supplies, contracts for or otherwise arranges the supply of the following for the operation or maintenance of the relevant generating unit:
(a) fuel, equipment and other goods;
(b) labour, labour hire and other services.
(3) An affiliate of a Registered participant does not incur liability for breach of contract, breach of confidence or any other civil wrong, by complying with a mandatory operation direction, including the Rules obligations.
118AJ—Amendment of mandatory operation direction
(1) The Minister may amend a mandatory operation direction by revoking the direction and issuing a new direction in accordance with section 118AD.
(2) When issuing a new mandatory operation direction under this section, the Minister is not required to comply with section 118AD(4)(a) to (d), 118AF(1)(b) or (2) or 118AG.
(3) The Rules may make provision for matters to be included in a mandatory operation direction reissued under this section.
118AK—Termination of mandatory operation direction
(1) The Minister may terminate a mandatory operation direction by giving the Registered participant subject to the direction and the AER written notice specifying—
(a) that the direction is terminated; and
(b) the date, not less than 3 months after the date of the notice, on which the termination takes effect.
(2) The Minister may terminate a mandatory operation direction—
(a) by agreement with the Registered participant subject to the direction; or
(b) if the Minister is satisfied, in accordance with the Rules, that effective compliance with the direction is no longer possible; or
(c) if the Minister otherwise determines on reasonable grounds that the direction should be terminated; or
(d) in circumstances prescribed by the Rules.
(3) The AER must, as soon as practicable after receiving a notice under subsection (1), publish the notice on its website.
(4) A Registered participant is not entitled to compensation, other than as provided for in the Rules, because of the termination of a mandatory operation direction.
118AL—Closure of generating unit after mandatory operation period
Immediately after the mandatory operation period applying to a MOD generating unit ends or is terminated under section 118AK—
(a) the Registered participant that operates the generating unit must cease operating the generating unit; and
(b) the Registered participant's registration under section 12 in relation to the generating unit ends.
118AM—Compliance with obligations after closure of generating unit
A Registered participant who is or was subject to a mandatory operation direction must, in accordance with the Rules, keep in place arrangements to ensure the Registered participant can, on the closure of a MOD generating unit—
(a) comply with all of the Registered participant's obligations associated with the generating unit; and
(b) meet all liabilities associated with the generating unit including liabilities arising from closing the unit.
Division 3—Information and reporting
118AN—AEMO and AER may disclose information
(1) The Minister may, for the purposes of this Part, direct AEMO and the AER to provide information and reports to the following:
(a) the Minister;
(b) each other.
(2) The Minister may disclose information obtained under this Part to the AER.
(3) AEMO and the AER are authorised to disclose information for the purposes of this Part.
(4) AEMO may disclose information to the AER about the technical performance and reliability of a relevant generating unit subject to a mandatory operation direction.
118AO—Information must be given to AER
(1) A Registered participant must give the AER prescribed information as follows:
(a) for a Registered participant who submits an early closure proposal after the commencement of this Part—when submitting the early closure proposal;
(b) for a Registered participant who submitted an early closure proposal after 31 December 2020 and before the commencement of this Part—within 28 days after being directed by the Minister or the AER to provide the information.
(2) Subsection (1)(a) does not apply to an early closure proposal for which the closure date is no more than 30 days earlier than the expected closure date previously notified to AEMO.
(3) The AER must—
(a) give a copy of the information received under this section to the Minister; and
(b) in accordance with the Rules, give a copy of the information received under this section to AEMO.
(4) The Minister or the AER may direct a Registered participant to provide—
(a) additional prescribed information; or
(b) an update of prescribed information previously provided to the AER.
(5) A Registered participant who receives a direction under subsection (4) must provide the information to—
(a) the Minister; and
(b) the AER.
(6) The Rules may make provision for the way information must be provided under this section.
prescribed information means information prescribed by the Rules.
Subsections (1) and (5) are civil penalty provisions: See the definition of civil penalty provision in section 2AA(1).
118AP—AER may request other information
(1) The AER may, by written notice, request a Registered participant to give the AER the following information:
(a) information the AER reasonably requires for its functions under this Part;
(b) other information prescribed by the Rules.
(2) A notice under this section may—
(a) be given in the form determined by the AER; and
(b) specify the way in which the information must be given.
(3) A Registered participant who receives a request under this section must comply with the request.
Subsection (3) is a civil penalty provision: See the definition of civil penalty provision in section 2AA(1).
118AQ—Information disclosure
(1) When the Minister issues a mandatory operation direction, the Minister must publish a notice that includes the following information:
(a) the Registered participant to whom the direction was issued;
(b) the relevant generating units to which the notice applies;
(c) the way the relevant generating units must be operated;
(d) the generating capacity that must be supplied by the relevant generating units;
(e) the period for which the relevant generating units must be operated;
(f) the circumstances in which the Minister must consider amending the direction;
(g) information prescribed by the Rules.
(2) If the Minister enters into a voluntary agreement the Minister must publish a notice containing information prescribed by the Rules.
(3) A notice under this section must be published as follows:
(a) in the Gazette;
(b) in the other ways determined by the Minister.
118AR—Annual performance report
(1) A Registered participant subject to a mandatory operation direction must, in accordance with the Rules, prepare an annual report setting out the following:
(a) the Registered participant's compliance with the direction;
(b) the technical condition of each relevant generating unit to which the direction applies;
(c) the duration, scope and cost of forecast maintenance for each relevant generating unit to which the direction applies;
(d) financial information prescribed by the Rules;
(e) information, prescribed by the Rules, about the fuel used in each relevant generating unit;
(f) other information prescribed by the Rules.
(2) The annual report prepared under this section must, as provided for in the Rules, be given to the following:
(a) the Minister;
(b) the AER;
(c) the financial vehicle.
Subsections (1) and (2) are civil penalty provisions: See the definition of civil penalty provision in section 2AA(1).
Division 4—Financial matters
Subdivision 1—Financial vehicle
118AS—Establishment and functions of financial vehicle
(1) The Minister must, within a reasonable time after a regulation is made under section 118AB, establish the financial vehicle in the way prescribed by the regulation.
(2) The financial vehicle has the following functions:
(a) functions set out in this Division;
(b) functions prescribed by the Rules.
(3) The financial vehicle must act in a commercially reasonable and prudent way.
Subdivision 2—Orderly exit management fund
118AT—Establishment of orderly exit management fund
(1) The financial vehicle must establish a fund called the orderly exit management fund.
(2) Money in the orderly exit management fund must be paid into an account kept with an authorised deposit-taking institution.
(3) The Rules may make provision for or with respect to the administration of the orderly exit management fund.
118AU—Payments into orderly exit management fund
The following money must be paid into the orderly exit management fund:
(a) all money received by the financial vehicle under a contribution order or a generator payment instrument;
(b) interest paid on money in the fund;
(c) all money appropriated by the Parliament of a participating jurisdiction, or advanced by the Treasurer of a participating jurisdiction, for payment into the fund;
(d) all money borrowed by the financial vehicle;
(e) other money required to be paid into the fund under the Regulations, the Rules or another law of a participating jurisdiction.
118AV—Payments from orderly exit management fund
(1) The following payments may be made from the orderly exit management fund:
(a) money required for the functions and obligations of the financial vehicle under this Part;
(b) money required for the functions and obligations of AEMO and the AER under this Part;
(c) money required to be paid from the fund by the Regulations, the Rules or another law of a participating jurisdiction.
(2) If, in the opinion of the financial vehicle, the orderly exit management fund contains more money than is required to make reasonably anticipated payments under subsection (1), the excess money in the fund must be—
(a) held as a credit against future OEM payments; or
(b) on the expiry of a mandatory operation direction—be returned to electricity consumers in the way provided for by the Rules.
118AW—Payments where mandatory operation direction not made
(1) This section applies if the Minister is satisfied there is a reasonably practicable alternative to issuing a mandatory operation direction.
(2) The Minister may direct the financial vehicle to make payments from the orderly exit management fund to meet reasonable costs associated with the reasonably practicable alternative.
(3) The Rules may make provision for payments under this section.
reasonably practicable alternative means the reasonably practicable alternative on which the Minister bases a decision to not issue a mandatory operation direction to a Registered participant.
118AX—Payments where voluntary agreement made
If the Minister makes a voluntary agreement, the Minister may direct the financial vehicle to make payments from the orderly exit management fund in accordance with the agreement.
Subdivision 3—Payments to and by MOD generators
118AY—Ministerial order
(1) Following the making of a mandatory operation direction, the Minister must, by 1 or more written orders made in accordance with the Rules, direct that the payments set out in the order—
(a) be made by the financial vehicle to a MOD generator; or
(b) be made—
(i) by the financial vehicle to a MOD generator; and
(ii) by a MOD generator to the financial vehicle.
(2) A payment order may specify the payments a MOD generator is to receive for the following:
(a) the reasonable costs directly related to operating and maintaining the relevant MOD generating unit and, in accordance with the Rules, a fair margin on those costs;
(b) a risk management margin, including risks associated with the relevant MOD generating unit being inoperable for 1 or more periods of time;
(c) other costs prescribed by the Rules.
(3) Payments for subsection (2) must be determined by the AER in accordance with the Rules.
(4) The Rules may make provision for the following:
(a) the period of time in which payments under a payment order must be made, including periods before or after the applicable mandatory operation period;
(b) additional matters to be dealt with in a payment order;
(c) circumstances in which the Minister must amend a payment order;
(d) other matters that may be addressed in a generator payment instrument.
(5) A MOD generator does not, by complying with a payment order, incur liability for breach of contract, breach of confidence or any other civil wrong.
(6) A person subject to a payment order must comply with the order.
(7) The Minister may amend a payment order by revoking the order and making a new order.
MOD generator means a Registered participant subject to a mandatory operation direction.
118AZ—Excluded matter
A generator payment instrument is, under the Corporations Act 2001 of the Commonwealth, section 5F(1)(d), declared, for that Act, Chapter 7, to be an excluded matter.
Subdivision 4—Orderly exit management cost recovery mechanism
118AZA—Orderly exit management contributions
(1) The orderly exit management contributions to be made by a distribution network service provider comprise—
(a) amounts determined by the AER for payments under a payment order; and
(b) amounts determined by the Minister for payments made—
(i) to a Registered participant under a voluntary agreement; and
(ii) under section 118AW; and
(c) amounts determined by the Minister to meet—
(i) costs incurred by AEMO and the AER for advice, assessments, determinations, information and reports and other functions under this Part; and
(ii) the financial vehicle's reasonable exercise of functions under this Part; and
(d) amounts provided for in the Rules.
(2) The Rules may make provision for—
(a) the process the AER must follow when determining amounts for payments under a payment order; and
(b) the process the Minister must follow when determining amounts under subsection (1)(c).
118AZB—Public notice of orderly exit management contributions
(1) The AER must, in accordance with section 118AZA, determine the orderly exit management contribution to be paid by a distribution network service provider (a contribution determination) for a financial year and make the determination publicly available—
(a) by no later than the date prescribed by the Rules; or
(b) if the Rules do not prescribe a date for paragraph (a)—at least 5 months before the beginning of the financial year for which the contribution is due.
(2) The Rules may provide for the process to be followed by the AER when making a contribution determination.
(3) If the AER does not make a contribution determination as required by subsection (1) the Minister may make the contribution determination and make it publicly available.
(4) A contribution determination must be made publicly available as follows:
(a) by publication in the Gazette;
(b) in the other ways determined by the AER or the Minister.
118AZC—Orderly exit management payments by distribution network service providers
(1) The financial vehicle may, by written order (a contribution order), direct a distribution network service provider to make payments to the orderly exit management fund (OEM payments) in accordance with the contribution determination applying to the distribution network service provider.
(2) A contribution order must specify the following:
(a) the distribution network service provider required to make the OEM payments;
(b) the amount of each OEM payment;
(c) the date by which each OEM payment must be made;
(d) the way each OEM payment must be made;
(e) that each OEM payment must be made to the financial vehicle for payment into the orderly exit management fund;
(f) matters prescribed by the Rules.
(3) The Rules may provide for the way an OEM payment may be recovered by the financial vehicle from a distribution network service provider, including the period of time over which the payment may be recovered.
(4) An OEM payment is recoverable by the financial vehicle as a debt in a court of competent jurisdiction.
118AZD—Cost recovery by distribution network service providers
The Rules may make provision for a distribution network service provider to—
(a) recover the following from electricity consumers:
(i) an amount equivalent to the OEM payments made by the distribution network service provider under section 118AZC;
(ii) an amount payable under another law of a participating jurisdiction;
(iii) an amount payable as a condition of a licence or authority held in a participating jurisdiction; and
(b) refund an amount, or part of an amount, paid by electricity consumers.
Division 5—Miscellaneous
118AZE—Minister not required to take certain actions before making mandatory operation direction
(1) The Minister is not required to comply with sections 118AD(4)(a) to (d), 118AF(2)(a) and 118AH before issuing a mandatory operation direction for a relevant generating unit if, on the application of this Part in the participating jurisdiction, there are less than 30 months before the expected early closure date of the generating unit.
(2) The Minister is not required to comply with section 118AH before issuing a mandatory operation direction for a relevant generating unit if—
(a) there are less than 30 months before the expected early closure date of the generating unit; and
(b) the Minister is of the opinion that the anticipated closure of the relevant generating unit represents an unacceptable risk to—
(i) power system security; or
(ii) national electricity system reliability.
expected early closure date, of a generating unit, means the early closure date for the generating unit as previously notified to AEMO in an early closure proposal.
118AZF—No liability for enactment or operation of Part
No action, claim or demand lies, or may be made or allowed by or in favour of a person, against the Crown, the Minister or another person exercising functions under this Part, including a rule made under this Part, for or in relation to any damage, loss or injury sustained or alleged to be sustained because of—
(a) the enactment of this Part or its operation; or
(b) anything done, or purporting to be done, under this Part or a rule made under this Part.
118AZG—Review of Part
(1) The AEMC must periodically review this Part to determine whether the policy objectives of the Part remain valid and whether the terms of the Part remain appropriate for securing those objectives.
(2) Reviews under this section must consider the following matters:
(a) the contribution of the OEM framework to the orderly exit of generating units from the market;
(b) the contribution of the OEM framework to mitigating disruption in the market from the early exit of generating units from the market;
(c) options for improving the administrative efficiency of the OEM framework;
(d) the cost of the OEM framework;
(e) matters prescribed by the Rules.
(3) Reviews under this section are to be undertaken as follows:
(a) the first review must be undertaken as soon as possible after the period of 5 years from the commencement of this Part;
(b) each subsequent review must commence 5 years after the commencement of the immediately preceding review.
(4) A report on the outcome of each review is to be given to the MCE within 12 months after the commencement of the review.
(5) Each member of the MCE from a mandatory operation jurisdiction must table a report under this section in each House of the jurisdiction's Parliament within 3 months after the report is given to the MCE.
(6) With the prior approval of the MCE, the AEMC may postpone a review, for a period of up to 5 years, if it is satisfied the review is unlikely to be of value.
mandatory operation jurisdiction means a participating jurisdiction to which this Part applies;
OEM framework means this Part and Rules made under this Part.
118AZH—Consultation between NSW and ACT
The relevant Minister of New South Wales must consult with the relevant Minister of the Australian Capital Territory—
(a) before seeking advice from AEMO under section 118AD(4)(a); and
(b) before entering into a voluntary agreement or issuing a mandatory operation direction.