Electricity Supply Industry (Network Performance Requirements) Regulations 2007

Electricity Supply Industry (Network Performance Requirements) Regulations 2007

I, the Governor in and over the State of Tasmania and its Dependencies in the Commonwealth of Australia, acting with the advice of the Executive Council, make the following regulations under the Electricity Supply Industry Act 1995 .

W. J. E. COX

Governor

By His Excellency's Command,

D. E. LLEWELLYN

Minister for Energy

1.   Short title

These regulations may be cited as the Electricity Supply Industry (Network Performance Requirements) Regulations 2007 .

2.   Commencement

These regulations take effect on the day on which their making is notified in the Gazette.

3.   Interpretation

(1)  In these regulations –

planned power system means power system planning as defined in Australian Standard AS 1852-603 entitled "International Electrotechnical Vocabulary, Chapter 603 – Generation, Transmission and Distribution of Electricity – Power System Planning and Management" published by Standards Australia on 17 June 1988, as amended or substituted from time to time.

(2)  Unless the contrary intention appears, an expression used in these regulations that is defined in the National Electricity Rules has the same meaning in these regulations as in those rules.

4.   Object of regulations

The object of these regulations is to specify, for the prescribed transmission service, the minimum network performance requirements that a planned power system of a Transmission Network Service Provider must meet in order to satisfy the reliability limb of the regulatory test in the National Electricity Rules.

Note 1: As Tasmania is a participating jurisdiction in the National Electricity Market; the operation of its power systems is governed by the National Electricity Rules. Those rules require that any proposed augmentation to the transmission system by a transmission network service provider – in this case Transend – must satisfy the regulatory test set by the Australian Energy Regulator. The regulatory test has two alternative limbs: a market benefits limb and a reliability limb. To satisfy the latter, Transend must be able to demonstrate that the proposed augmentation will meet the minimum network performance requirements specified in these regulations.

Note 2: Minimum network performance requirements means minimum network performance requirements within the meaning of the National Electricity Rules.

Note 3: Regulatory test, prescribed transmission service and Transmission Network Service Provider are defined in the National Electricity Rules.

5.   Minimum network performance requirements

(1)  A planned power system of a Transmission Network Service Provider must meet the following minimum network performance requirements:

(a) in respect of an intact transmission system –

(i) no more than 25 MW of load is to be capable of being interrupted by a credible contingency event; and

(ii) no more than 850 MW of load is to be capable of being interrupted by a single asset failure; and

(iii) load that is interrupted by a single asset failure is not to be capable of resulting in a black system; and

(iv) the unserved energy to load that is interrupted consequent on damage to a network element resulting from a credible contingency event is not to be capable of exceeding 300 MW.h at any time; and

(v) the unserved energy to load that is interrupted by a single asset failure is not to be capable of exceeding 3 000 MW.h at any time;

(b) in respect of a transmission system that is not an intact transmission system, the active energy exposed to interruption by a credible contingency event is not to be capable of exceeding 18 000 MW.h at any time.

(2)  For the purpose of meeting the requirements under subregulation (1) , a Transmission Network Service Provider may use load shedding –

(a) to control network load after a non-credible contingency event; or

(b) as specified in a contract, agreement or arrangement entered into by the Transmission Network Service Provider and a Transmission Customer.

(3)  For the purpose of calculating unserved energy under subregulation (1) , any replacements or repairs undertaken must be taken to not exceed –

(a) 48 hours to repair a transmission line; or

(b) 8 days to replace a transformer; or

(c) 18 days to replace an autotransformer.

(4)  In this regulation –

intact transmission system means a transmission system from which no network element has been removed for maintenance, replacement or repair;

single asset means –

(a) one double transmission line circuit that contains 2 three-phase circuits; or

(b) one circuit breaker as defined in Australian Standard AS 1852-441 entitled "International Electrotechnical Vocabulary, Chapter 441 – Switchgear, Controlgear and Fuses" published by Standards Australia on 7 June 1985, as amended or substituted from time to time; or

(c) one substation busbar;

single asset failure means one single incident (other than a credible contingency event) that results in the failure of one single asset to perform its intended function;

unserved energy means unserved energy as defined in the Australian Standard AS 1852-604 entitled "International Electrotechnical Vocabulary, Chapter 604 – Generation, Transmission and Distribution of Electricity – Operation" published by Standards Australia on 17 June 1988, as amended or substituted from time to time.

Note 1: Minimum network performance requirements means minimum network performance requirements within the meaning of the National Electricity Rules.

Note 2: Black system, busbar, credible contingency event, load, load shedding, network element, non-credible contingency event, transformer, Transmission Customer, transmission line, Transmission Network Service Provider and transmission system are defined in the National Electricity Rules.

6.   Approval of transmission system augmentations costing more than $15 million

(1)  This regulation applies if –

(a) a planned power system meeting the minimum network performance requirements referred to in regulation 5 involves the augmentation of a transmission system; and

(b) the present value of the cost of constructing, operating and maintaining the proposed augmentation is estimated to exceed $15 million.

(2)  The relevant Transmission Network Service Provider must apply to the Minister for approval of the proposed augmentation.

(3)  The Minister's approval is taken to be an additional minimum network performance requirement.

(4)  The application –

(a) is to be in a form provided or approved by the Minister; and

(b) must be supported by such evidence or information as the Minister requires.

(5)  After considering the application, the Minister may –

(a) approve the proposed augmentation if satisfied that its direct and indirect economic, social and environmental benefits outweigh its direct and indirect economic, social and environmental costs; or

(b) refuse to approve the proposed augmentation if not so satisfied.

(6)  The Minister is to notify the applicant in writing of his or her decision under subregulation (5) and, in the case of a refusal, the reasons for the refusal.

Note 1: Minimum network performance requirements means minimum network performance requirements within the meaning of the National Electricity Rules.

Note 2: Augmentation, Transmission Network Service Provider and transmission system are defined in the National Electricity Rules.

7.   Exemptions from regulations

(1)  A Transmission Network Service Provider may apply to the Minister for –

(a) an exemption from these regulations or a specified provision of these regulations; or

(b) the variation of an exemption previously granted by the Minister under this regulation.

(2)  The application –

(a) is to be in a form provided or approved by the Minister; and

(b) must be supported by such evidence or information as the Minister requires.

(3)  After considering the application, the Minister may –

(a) grant the exemption or variation, with or without any conditions he or she considers appropriate, if satisfied that the Transmission Network Service Provider –

(i) is doing all that it reasonably can to comply with these regulations; and

(ii) is unable to comply with these regulations because of circumstances beyond its control; or

(b) refuse to grant the exemption or variation if not so satisfied.

(4)  If subregulation (3)(a) applies, the Minister is to notify the applicant in writing of the grant of the exemption or variation, including any conditions, and the date on which it takes effect.

(5)  If subregulation (3)(b) applies, the Minister is to notify the applicant in writing of the refusal and the reasons for the refusal.

(6)  A Transmission Network Service Provider who has the benefit of an exemption under this regulation must comply with the conditions, if any, of the exemption.

Penalty:  Fine not exceeding 100 penalty units.

(7)  The Minister may revoke an exemption granted under subregulation (3)(a) if the Minister is no longer satisfied of the matters specified in that subregulation.

(8)  If subregulation (7) applies, the Minister is to notify the Transmission Network Service Provider in writing of –

(a) the revocation; and

(b) the reasons for the revocation; and

(c) the date on which the revocation takes effect.

Note 1: Transmission Network Service Provider is defined in the National Electricity Rules.

8.   Review of regulations

The Minister is to –

(a) review the operation of these regulations no later than 5 years after they take effect; and

(b) cause a report on the outcome of the review to be prepared no later than 3 months after the end of that 5-year period.

Displayed and numbered in accordance with the Rules Publication Act 1953.

Notified in the Gazette on 12 December 2007

These regulations are administered in the Department of Infrastructure, Energy and Resources.

EXPLANATORY NOTE

(This note is not part of the regulation)

(a) specify the minimum network performance requirements that a power system planned by a Transmission Network Service Provider must meet in order to satisfy the regulatory test in the National Electricity Rules; and

(b) provide for exemptions from those requirements; and

(c) provide for ancillary and incidental matters.