Hydro-Electric Corporation Amendment Act 2000

Hydro-Electric Corporation Amendment Act 2000

An Act to amend the Hydro-Electric Corporation Act 1995

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

1.   Short title

This Act may be cited as the Hydro-Electric Corporation Amendment Act 2000 .

2.   Commencement

This Act commences on the day on which this Act receives the Royal Assent.

3.   Principal Act

In this Act, the Hydro-Electric Corporation Act 1995 is referred to as the Principal Act.

4.    Section 3 amended (Interpretation)

Section 3 of the Principal Act is amended as follows:

(a) by inserting the following definitions after the definition of Corporation :

Basslink means the interconnection between the electricity grids of the States of Tasmania and Victoria by means of –

(a) a high voltage, direct current, submarine cable across Bass Strait; and

(b) converter stations in those States; and

(c) direct current connecting lines to those converter stations; and

(d) alternating current transmission connections to the transmission networks of those States; and

(e) related infrastructure;

derivative means –

(a) an arrangement in relation to which the following conditions are satisfied:

(i) under the arrangement a party to the arrangement must, or may be required to, provide at some future time consideration to a person;

(ii) the amount or value of that consideration is ultimately determined, derived from or varies by reference to (wholly or in part) the value or amount of something else (of any nature whatsoever and whether or not deliverable), including but not limited to an asset, an interest rate, exchange rate or other rate, an index and a commodity; and

(b) anything prescribed in the regulations to be a derivative –

but does not include an arrangement or other thing prescribed in the regulations as not being a derivative;

(b) by inserting the following definitions after the definition of land :

National Electricity Law is the National Electricity Law established by the National Electricity (South Australia) Act 1996 and adopted by participating jurisdictions, within the meaning of that Law, as a consequence of the National Electricity Market Legislation Agreement dated 9 May 1996 between the States of New South Wales, Victoria, Queensland and South Australia and the Australian Capital Territory;

National Electricity Market means the market for wholesale electricity operating under the National Electricity Code as established under the National Electricity Law;

(c) by omitting " Government Business Enterprises Act 1995 ." from the definition of subsidiary and substituting " Government Business Enterprises Act 1995 ;";

(d) by inserting the following definition after the definition of subsidiary :

transmission network has the same meaning as in the Electricity Supply Industry Act 1995 .

5.    Section 5 amended (Functions and powers of Corporation)

Section 5 of the Principal Act is amended by omitting subsection (2) and substituting the following subsections:

(2)  The Corporation has the following powers:

(a) to construct, maintain and operate electricity infrastructure necessary for the generation of electricity;

(b) to do all things necessary or convenient for, or related to, the generation of electricity, including the sale or trade of electricity;

(c) to acquire and trade in, and facilitate the acquisition of and trading in, electricity;

(d) to participate in the National Electricity Market;

(e) to develop, construct, operate and own Basslink and to participate in the development, construction, operation and ownership of Basslink and to use Basslink;

(f) to enter into agreements in respect of the development, construction, operation and ownership of Basslink;

(g) to do all things necessary or convenient for, or related to –

(i) its development, construction, operation and ownership of Basslink and its participation in the development, construction, operation and ownership of Basslink; and

(ii) its participation in the National Electricity Market;

(h) to provide consultancy services in respect of electricity, environmental science, engineering or any other area of expertise in which the Corporation considers it has competence;

(i) to carry out investigations, research and development.

(3)  Without limiting its powers under subsection (2)(b) , (c) and (g) , the Corporation under that subsection may, in accordance with any relevant Treasurer's Instructions issued under the Government Business Enterprises Act 1995 , enter into trading and financial arrangements that concern, or are in the nature of, derivatives or electricity generated from renewable or other energy sources.

6.    Section 7 amended (Limitations on Corporation's powers)

Section 7 of the Principal Act is amended by inserting after subsection (7) the following subsections:

(8)  If an agreement entered into under section 5(2)(f) in respect of Basslink provides to the effect that the Corporation may acquire the whole or a part of Basslink –

(a) subsection (2) does not apply in respect of –

(i) the acquisition of land necessary for the acquisition of the whole or part of Basslink under that agreement; and

(ii) any subsequent dealing in or disposal of that land; and

(b) section 10(7) of the Government Business Enterprises Act 1995 does not apply in respect of the disposal of that land or the whole or part of Basslink acquired under that agreement; and

(c) the Corporation may only acquire or dispose of the whole or a part of Basslink if –

(i) both the Minister and the Minister to whom the administration of the Government Business Enterprises Act 1995 is assigned have agreed, in writing, to that acquisition or disposal; and

(ii) the Minister has tabled in both Houses of Parliament a notice that specifies that the Corporation intends to acquire or dispose of the whole or a part of Basslink, that the Ministers referred to in subparagraph (i) have agreed to the acquisition or disposal and the reasons for their agreement.

(9)  Before agreeing to an acquisition of the whole or part of Basslink under subsection (8)(c)(i) , the Minister and the Minister to whom the administration of the Government Business Enterprises Act 1995 is assigned must be satisfied that the acquisition is consistent with the protection of the operational and financial interests of the Corporation.

(10)  For the purposes of subsection (8) , a notice is tabled in a House of Parliament if –

(a) it is laid before that House; or

(b) if that House is not sitting at the relevant time –

(i) it is provided to the Clerk of that House; and

(ii) it is published in the Gazette.

[Second reading presentation speech made in:

House of Assembly on 1 JUNE 2000

Legislative Council on 20 JUNE 2000]