Electricity Supply Industry (Network Performance Requirements) Amendment Regulations 2013

Electricity Supply Industry (Network Performance Requirements) Amendment Regulations 2013

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 .

4 November 2013

PETER G. UNDERWOOD

Governor

By His Excellency's Command,

BRYAN GREEN

Minister for Energy and Resources

1.   Short title

These regulations may be cited as the Electricity Supply Industry (Network Performance Requirements) Amendment Regulations 2013 .

2.   Commencement

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

3.   Principal Regulations

In these regulations, the Electricity Supply Industry (Network Performance Requirements) Regulations 2007 are referred to as the Principal Regulations.

4.    Regulation 1 amended (Short title)

Regulation 1 of the Principal Regulations is amended by omitting "Performance" and substituting "Planning".

5.    Regulation 3 amended (Interpretation)

Regulation 3(1) of the Principal Regulations is amended by omitting the definition of planned power system and substituting the following definitions:

affected customer, in relation to –

(a) a proposed augmentation of a part of a Provider's relevant transmission system; or

(b) an exempted augmentation –

means a customer, of the Provider, who receives from the Provider a prescribed transmission service that would not be likely to meet the service standards set out in regulation 5 if the proposed augmentation were not to proceed or if the exempted augmentation ceased to be an exempted augmentation;

APR means a Transmission Annual Planning Report of a Provider that is published by the Provider;

Australian CPI number, for a particular quarter in a financial year, means the Consumer Price Index, weighted average of eight capital cities for that quarter, published by the Australian Statistician under the authority of the Census and Statistics Act 1905 of the Commonwealth;

CPI increase since 2013, for a particular financial year, means the ratio of the average of the Australian CPI number, for each of the 4 quarters of that financial year, to the average of the Australian CPI number for each of the 4 quarters of the 2012-2013 financial year;

exempted augmentation means an augmentation to which regulation 8(4) applies;

power system planning means carrying out studies involved in the development of a technically and economically sound system of electricity supply;

Provider means a Transmission Network Service Provider;

publication date, in respect of an APR, means the date on which the APR is published by a Provider;

published means published as required by the National Electricity Rules;

relevant transmission system means the parts, of a transmission system, used to provide prescribed transmission services.

6.    Regulation 4 substituted

Regulation 4 of the Principal Regulations is rescinded and the following regulation is substituted:

4.   Objects of regulations

The objects of these regulations are to specify, for the purposes of the National Electricity Rules –

(a) the network performance requirements to be taken into account in power system planning in respect of a relevant transmission system; and

(b) the service standards that a Provider must take into account, for the purposes of the regulatory investment test for transmission, in carrying out power system planning in respect of a relevant transmission system –

and to allow, in respect of certain augmentations, for exemptions from such requirements and standards.

Note 1: Network performance requirements may, under the National Electricity Rules, be set out in a statutory instrument of a participating jurisdiction.

Note 2: Service standards for the purposes of the regulatory investment test for transmission may, under the National Electricity Rules, be set out in an applicable regulatory instrument of a participating jurisdiction.

Note 3: Transmission Network Service Provider and regulatory investment test for transmission are defined in the National Electricity Rules.

7.    Regulation 5 amended (Network performance requirements and service standards)

Regulation 5 of the Principal Regulations is amended as follows:

(a) by omitting from subregulation (1) "A planned power system of a Transmission Network Service Provider must meet the following minimum" and substituting "Power system planning in respect of a relevant transmission system must be such that the system is likely to meet the following";

(b) by inserting the following subregulation after subregulation (1) :

(1A)  The network performance requirements under subregulation (1) constitute the service standards that a Provider must take into account, for the purposes of the regulatory investment test for transmission, in carrying out power system planning in respect of a relevant transmission system.

(c) by omitting from subregulation (2) "Transmission Network Service" first occurring;

(d) by omitting from subregulation (2)(b) "Transmission Network Service";

(e) by omitting the table from the definition of unserved energy in subregulation (4) and substituting the following table:

Note 1: Black system, busbar, credible contingency event, load shedding, network element, non-credible contingency event, regulatory investment test for transmission, transformer, Transmission Customer, transmission line and transmission system are defined in the National Electricity Rules.

8.    Regulation 6 amended (Approval of certain transmission system augmentations)

Regulation 6 of the Principal Regulations is amended as follows:

(a) by omitting paragraph (a) from subregulation (1) and substituting the following paragraphs:

(a) an augmentation of a part of the Provider's relevant transmission system would be required in order for the system to be likely to meet a network performance requirement contained in a provision of regulation 5 that applies in relation to the system; and

(ab) the augmentation is proposed in power system planning of the Provider; and

(b) by omitting from subregulation (1)(b) "$15 million" and substituting "the relevant amount in relation to the augmentation";

(c) by inserting the following subregulation after subregulation (1) :

(1A)  For the purposes of subregulation (1)(b) , the relevant amount in relation to an augmentation is –

(a) if the augmentation is proposed in the financial year in which this subregulation commences – $35 million; and

(b) if the augmentation is proposed in any following financial year – the amount obtained by multiplying $35 million by the CPI increase since 2013 for that following year.

(d) by omitting from subregulation (2) "Transmission Network Service";

(e) by omitting subregulation (3) and substituting the following subregulation:

(3)  If this regulation applies in relation to a proposed augmentation, of a part of a relevant transmission system, that would be required in order for the system to be likely to meet a network performance requirement contained in a provision of regulation 5 that applies in relation to the system, the provision of that regulation –

(a) is not, despite regulation 5 , to be taken to be a network performance requirement in relation to that part of the system; and

(b) does not constitute a service standard under regulation 5(1A) in relation to that part of the system –

unless the Minister has approved the augmentation under this regulation.

9.    Regulations 7 and 8 substituted

Regulations 7 and 8 of the Principal Regulations are rescinded and the following regulations are substituted:

7.   Notices as to proposed augmentations

(1)  If –

(a) an augmentation of a part of a Provider's relevant transmission system would be required in order for the system to be likely to meet a network performance requirement contained in a provision of regulation 5 that applies in relation to the system; and

(b) the augmentation is proposed in an APR of the Provider –

an affected customer may, within 3 months of the publication date of the APR, give to the Provider a notice in relation to the proposed augmentation.

(2)  A notice under subregulation (1) by an affected customer in relation to an augmentation proposed in an APR is to specify that the customer is of the opinion that there is insufficient customer benefit to justify requiring the proposed augmentation to be provided in the 5-year period from the publication date of the APR.

(3)  A Provider that receives from an affected customer a notice under subregulation (1) in relation to a proposed augmentation must, within 30 days, give to all other affected customers in respect of the augmentation a notice, in accordance with subregulation (5) , in relation to the proposed augmentation.

(4)  A Provider must give to all affected customers in relation to a proposed augmentation of a Provider's relevant transmission system a notice, in accordance with subregulation (5) , in relation to the augmentation, if –

(a) the augmentation would be required in order for the system to be likely to meet a network performance requirement contained in a provision of regulation 5 that applies in relation to the system; and

(b) the Provider is of the opinion that there may be insufficient customer benefit to justify requiring the augmentation to be provided in the 5-year period from the publication date of the APR that was most recently published by the Provider before the notice is given by the Provider.

(5)  A notice under subregulation (3) or (4) given by a Provider to an affected customer in relation to a proposed augmentation is to –

(a) specify the proposed augmentation to which the notice relates; and

(b) specify the network performance requirement, contained in a provision of regulation 5 , to which the proposed augmentation relates; and

(c) specify –

(i) if the notice is given under subregulation (3)  – that an affected customer is of the opinion that there is insufficient customer benefit; or

(ii) if the notice is given under subregulation (4)  – that the Provider is of the opinion that there may be insufficient customer benefit –

to justify requiring the augmentation to be provided in the 5-year period from the publication date of the APR that was most recently published by the Provider before the notice was given by the Provider; and

(d) inform the affected customer that the customer may give to the Provider, within 3 months after receiving the notice, a notice under regulation 8(1) in relation to the proposed augmentation.

(6)  A notice in relation to a proposed augmentation is to be given under subregulation (3) or (4) to an affected customer –

(a) by letter directed to the affected customer; or

(b) by electronic notice sent to the electronic address of the affected customer.

8.   Exemption from network planning requirements

(1)  An affected customer in relation to a proposed augmentation of a part of a Provider's relevant transmission service may, within 3 months after receiving a notice under regulation 7(3) or (4) in relation to the augmentation, give to the Provider notice in writing in relation to the augmentation.

(2)  A notice under subregulation (1) , by an affected customer, in relation to an augmentation to which a notice under regulation 7(3) or (4) relates is to specify that the affected customer is of the opinion that there is insufficient customer benefit to justify requiring the augmentation to be provided in the 5-year period from the publication date of the APR that was most recently published by the Provider before the notice under regulation 7(3) or (4) was given.

(3)  If all affected customers have given a Provider a notice either –

(a) under subregulation (1) in relation to an augmentation to which relates a notice given under regulation 7(3) or (4) by the Provider; or

(b) under regulation 7(1) in relation to an augmentation proposed in an APR published by the Provider –

(whether or not all the notices have been given under the same provision), subregulation (4) applies in relation to the augmentation and the provision of regulation 5 to which the augmentation relates.

(4)  If this subregulation applies in relation to an augmentation and the provision of regulation 5 to which the augmentation relates, the provision –

(a) is not, despite regulation 5 , to be taken to be a network performance requirement in relation to the part of the system; and

(b) does not constitute a service standard under regulation 5(1A) in relation to that part of the system –

for the 5-year period from the publication date of the APR that was most recently published by the Provider before a notice under regulation 7(3) or (4) was given in relation to the augmentation.

(5)  If subregulation (4) applies, in relation to an augmentation in respect of a part of a relevant transmission system, and a provision of regulation 5 to which the augmentation relates, for a 5-year period from the publication date of an APR –

(a) the Provider must not propose, in an APR that is published by the Provider during that 5-year period –

(i) the augmentation; or

(ii) another augmentation, in relation to the part of the system, that would be necessary in order for the system to be likely to meet the requirements of that provision if it were a network performance requirement in relation to the part of the system; and

(b) the Provider must include the relevant information, in relation to the augmentation and the provision, in each APR that is published by the Provider during that 5-year period.

(6)  For the purposes of subregulation (5)(b) , the following is the relevant information in relation to an augmentation and a provision of regulation 5 to which the augmentation relates:

(a) the part of the relevant transmission system, and the augmentation, to which subregulation (4) applies;

(b) a statement that the affected customers in relation to the augmentation are of the opinion that there is insufficient customer benefit to justify requiring the augmentation to be provided in the 5-year period for which subregulation (4) applies in relation to the augmentation;

(c) a statement that, because of the application of subregulation (4) to the provision, the provision is not a network performance requirement, and does not constitute a service standard, in relation to the part of the system.

9.   Exemption from network planning requirement may cease to apply

(1)  Subregulation (4) applies in relation to an augmentation (the exempted augmentation), and to a provision of regulation 5 (the exempted provision), to which regulation 8(4) applies, if –

(a) the Provider in respect of the relevant transmission system to which the augmentation relates is of the opinion that there has been a material change in circumstances in relation to the part of the relevant transmission system to which the exempted augmentation relates; and

(b) the Provider is of the opinion that –

(i) regulation 8(4) ought to cease to apply in relation to the exempted augmentation and the exempted provision; and

(ii) the exempted augmentation, or another augmentation, is or may be necessary in relation to the part of the system in order for the system to be likely in the future to meet the requirements of the provision of regulation 5 if it ceases to be an exempted provision.

(2)  An affected customer in relation to an augmentation to which regulation 8(4) applies may give a notice in writing, to the Provider in respect of the relevant transmission system to which the augmentation relates, stating that the customer is of the opinion that regulation 8(4) ought to cease to apply in relation to the augmentation.

(3)  Subregulation (4) applies in relation to an augmentation (the exempted augmentation), and to a provision of regulation 5 (the exempted provision), to which regulation 8(4) applies, if a Provider receives a notice under subregulation (2) in relation to the augmentation.

(4)  If this subregulation applies in relation to an exempted augmentation and an exempted provision –

(a) regulation 8(5) ceases to apply in relation to the exempted augmentation and the exempted provision; and

(b) regulation 8(4) does not, on and from the relevant date in relation to the exempted provision, apply in relation to the augmentation that was an exempted augmentation and the provision that was an exempted provision; and

(c) regulation 7 applies in relation to the augmentation specified in the relevant information in accordance with subregulation (6)(c) .

(5)  For the purposes of subregulation (4)(b) , the relevant date in relation to the exempted provision is the publication date of the APR next published, after regulation 8(5) ceases, in accordance with subregulation (4)(a) , to apply to the exempted provision, by the Provider in respect of the relevant transmission system to which the augmentation relates.

(6)  If subregulation (4) applies in relation to an exempted augmentation and an exempted provision, the Provider in respect of the relevant transmission system to which the augmentation relates must, in the APR next published by the Provider after that subregulation applies to the exempted provision, include a statement as to –

(a) the relevant opinion in relation to the exempted augmentation; and

(b) the application of the regulations to the exempted augmentation and the exempted provision; and

(c) the necessary augmentations.

(7)  A statement as to the relevant opinion in relation to an exempted augmentation is –

(a) if subregulation (1) applies to the exempted augmentation and the exempted provision – a statement that the Provider is of the opinion that regulation 8(4) ought to cease to apply in relation to the exempted augmentation and the exempted provision; or

(b) if subregulation (3) applies to the exempted augmentation and the exempted provision – a statement that an affected customer in relation to the augmentation has notified the Provider that the customer is of the opinion that regulation 8(4) ought to cease to apply in relation to the exempted augmentation and the exempted provision.

(8)  A statement as to the application of the regulations to the exempted augmentation and the exempted provision is a statement –

(a) that regulation 8(4) has, on the publication of the statement in the APR, ceased to apply to the exempted augmentation and the exempted provision; and

(b) that, accordingly, the exempted provision applies, on and from the publication date of the APR, in relation to the part of the relevant transmission system to which the exempted augmentation relates.

(9)  A statement as to the necessary augmentations is a statement setting out the augmentation (which may be the same augmentation as, or a different augmentation to, the exempted augmentation), if any, that the Provider is of the opinion is necessary in order for the system to be likely to meet the requirements of the provision that was, before the publication of the statement, an exempted provision.

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

Notified in the Gazette on 13 November 2013

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

EXPLANATORY NOTE

(This note is not part of the regulation)

These regulations amend the Electricity Supply Industry (Network Performance Requirements) Regulations 2007 by altering –

(a) the minimum network performance requirements in respect of electricity transmission services; and

(b) the process for exemptions in respect of such requirements; and

(c) provisions in respect of ministerial approval of certain augmentations in respect of such services.