16COrder in Council for establishment of f‑factor scheme

16C Order in Council for establishment of f‑factor scheme

(1) The Governor in Council, by Order published in the Government Gazette, for the purpose of reducing the risk of fire starts and reducing the risk of loss or damage caused by fire starts, may confer functions and powers, or impose duties, on the AER to make—

(a) a determination for the purpose of providing incentives for Distribution Network Service Providers to reduce the risk of fire starts and reduce the risk of loss or damage caused by fire starts;

(b) a determination for each year of the first distribution determination period specifying an amount that is to be treated as a positive pass through amount or a negative pass through amount for the purposes of Chapter 6 of the National Electricity Rules.

(2) Without limiting subsection (1), an Order under that subsection may—

(a) specify how the AER is to make, publish, implement and administer an f‑factor scheme determination and an f‑factor amount determination;

(b) specify the kinds of fire starts to be covered by an f‑factor scheme determination or require the AER to determine the kinds of fire starts to be covered by an f‑factor scheme determination;

(c) require the AER, before making an f‑factor scheme determination, to consult with one or more of the following—

(i) the Minister;

(ii) a Distribution Network Service Provider;

(iii) a relevant entity;

(iv) any other person whose interests are affected and who is specified as a person with whom the AER must consult;

(d) require the AER, when consulting with persons referred to in paragraph (c), to comply with specified consultation procedures;

(e) require the AER to include benchmarks or targets for Distribution Network Service Providers as part of an f‑factor scheme determination;

(f) require the AER to assess the performance of Distribution Network Service Providers in relation to any benchmarks or targets included as part of an f‑factor scheme determination and for the purpose of making an f‑factor amount determination;

(g) specify any benchmarks, targets, incentives, rewards or penalties for inclusion in an f‑factor scheme determination that will apply to Distribution Network Service Providers and for the purpose of making f‑factor amount determinations;

(h) require the AER, in making an f‑factor scheme determination, to have regard to specified criteria, including—

(i) the need to ensure that the benefits to consumers likely to result from the making of an f‑factor scheme determination are sufficient to warrant the determination's benchmarks, targets, incentives, rewards or penalties for Distribution Network Service Providers;