Sch 3to this Law has effect.

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