16YOrder modifying regulatory arrangements relating to declared transmission system augmentations and related services

16Y Order modifying regulatory arrangements relating to declared transmission system augmentations and related services (1) Subject to this Division, the Minister, by Order published in the Government Gazette, may do any one or more of the following— (a) specify, for the purposes of the Order— (i) the carrying out of, or operation of, an augmentation of the declared transmission system as a specified augmentation; (ii) services provided or to be provided in relation to or by means of a specified augmentation as specified augmentation services; (iii) non-network services as specified non‑network services; (b) provide that Subdivision 3 of Division 2 of Part 5 of the Law, or a specified provision of that Subdivision, does not apply as a law in Victoria in respect of— (c) modify the application of a specified provision of Subdivision 3 of Division 2 of Part 5 of the Law as it applies as a law in Victoria in respect of— (d) provide that a specified provision of the Rules does not apply in respect of— (e) modify the application of a specified provision of the Rules to— (f) provide that a specified definition in the Rules (including Chapter 10 of the Rules) does not apply in respect of— (g) modify the application of a specified definition in the Rules (including Chapter 10 of the Rules) to— (h) deem a service specified in the Order as— (i) an ancillary service, an inertia network service, a prescribed transmission service, a system strength service or any other service defined under the Law or in the Rules, or any other kind of service for the purposes of the Law or the Rules; (ii) a service for the provision of reserve under the Rules; (i) regulate— (j) specify a provision of the Order, or a provision of the Law or Rules modified by the Order, as a civil penalty provision for the purposes of the Law. (2) Without limiting subsection (1)(d), (e), (f), (g) or (i), an Order under subsection (1) may do any one or more of the following— (a) modify the application of standards, procedures or guidelines published under the Rules to— (b) modify the application of a specified provision of the Rules to the provision of reserve in respect of— (c) specify matters or things that are to apply in relation to— (d) specify a test, examination or assessment to apply in relation to a specified augmentation or specified augmentation services in place of the regulatory investment test for transmission (an ***alternative regulatory investment test***); (e) specify guidelines for the purposes of an alternative regulatory investment test; (f) provide that augmentation related costs or non-network services costs may be recovered through charges for services specified in the Order; (g) provide that augmentation related costs or non-network services costs may be recovered as a pass through event subject to, and in accordance with, Chapter 6A of the Rules; S. 16Y(2)(h) amended by No. 38/2025 s. 24(1)(a). (h) provide for the recovery by VicGrid of any costs it incurs— (i) in respect of a specified augmentation; (ii) in the provision of, or in acquiring or utilising, specified augmentation services or specified non-network services; S. 16Y(2)(h)(iii) amended by No. 38/2025 s. 24(1)(b). (iii) as a result of the making of the Order or VicGrid complying with a requirement under the Order; S. 16Y(2)(i) amended by No. 38/2025 s. 24(2). (i) require VicGrid to carry out a declared network function or a function referred to in section 16X(2)(b) in relation to— S. 16Y(2)(j) amended by No. 38/2025 s. 24(3). (j) require VicGrid to procure or conduct a tender for— S. 16Y(2)(ja) inserted by No. 15/2024 s. 6(1), amended by No. 38/2025 s. 24. (ja) require AEMO to assist VicGrid in the performance of any of VicGrid's functions specified in the Order; (k) require a declared transmission system operator or prospective declared transmission system operator to— (i) plan the carrying out of a specified augmentation; (ii) carry out a specified augmentation; (iii) operate a specified augmentation; (iv) facilitate the planning, carrying out or operation of a specified augmentation; S. 16Y(2)(l) amended by No. 38/2025 s. 24(5). (l) require VicGrid, a declared transmission system operator, a prospective declared transmission system operator or a provider of specified augmentation services or specified non-network services to enter into agreements relating to— S. 16Y(2)(m) amended by No. 38/2025 s. 24(6). (m) specify terms and conditions, or the kinds of terms and conditions, that must or may, or must not, be included in an agreement entered into by VicGrid, a declared transmission system operator, a prospective declared transmission system operator or a provider of specified augmentation services or specified non-network services relating to— S. 16Y(2)(n) amended by No. 38/2025 s. 24(7). (n) prohibit VicGrid, a declared transmission system operator, a prospective declared transmission system operator or a provider of specified augmentation services or specified non-network services from, other than as specified in the Order, entering into an agreement of a specified kind relating to— (o) require the ESC to, under section 29(1A) of the **Electricity Industry Act 2000**, vary a licence issued under that Act to a declared transmission system operator, or vary the conditions of the licence, to give effect to any matter specified in the Order. (3) For the purposes of subsection (2)(m), the terms and conditions, or the kinds of terms and conditions, that must or may be included in an agreement entered into by a party to the agreement may include a term or condition that requires the party to reduce any fees or charges the party imposes on a customer of its services as a result of a breach of a term or condition of the agreement by that party. (4) Without limiting subsection (1), an Order under that subsection may— (a) disapply, or modify the application of a provision of, the Law as a consequence of a provision of the Order that disapplies or modifies the application of another provision of the Law in respect of— (i) a specified augmentation; or (ii) specified augmentation services; or (b) disapply, or modify the application of a provision of, the Rules as a consequence of a provision of the Order that disapplies or modifies the application of another provision of the Rules in respect of— (i) a specified augmentation; or (ii) specified augmentation services; or (5) An Order under subsection (1) may— (a) be of limited or general application; (b) differ according to time, place or circumstances; S. 16Y(5)(c) amended by No. 38/2025 s. 24(8). (c) confer functions and powers on, or leave any matter or thing to be decided by, VicGrid; (d) apply, adopt or incorporate any matter contained in any document, whether— (i) wholly or partially or as amended by the Order; or (ii) as existing at the time the Order is made or at any time before then; or (iii) as existing from time to time; (e) contain provisions of a savings or transitional nature on the making of the Order; (f) provide for any matter that is incidental to a matter set out in the Order or necessary to give effect to a matter set out in the Order. S. 16Y(6) inserted by No. 15/2024 s. 6(2). (6) For the purposes of an Order under subsection (1)— S. 16Y(6)(a) amended by No. 38/2025 s. 24(9)(a). (a) costs incurred by VicGrid— (i) in respect of a specified augmentation; or (ii) in the provision of, or in acquiring or utilising, specified augmentation services or specified non-network services; or S. 16Y(6)(a)(iii) amended by No. 38/2025 s. 24(9)(a)(i). (iii) as a result of the making of the Order or VicGrid complying with a requirement of the Order— include costs for the provision of assistance by AEMO in respect of those matters; and S. 16Y(6)(b) amended by No. 38/2025 s. 24(9)(b). (b) the amount of those costs is the amount of the costs incurred by AEMO in providing the assistance. S. 16Z inserted by No. 10/2020 s. 4.