Electricity Supply Industry (Pricing and Related Matters) Amendment (Feed-in Tariffs) Regulations 2013

Electricity Supply Industry (Pricing and Related Matters) Amendment (Feed-in Tariffs) 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 .

18 November 2013

PETER G. UNDERWOOD

Governor

By His Excellency's Command,

S. BACON

Minister for Finance

1.   Short title

These regulations may be cited as the Electricity Supply Industry (Pricing and Related Matters) Amendment (Feed-in Tariffs) Regulations 2013 .

2.   Commencement

These regulations take effect on the day on which section 7 of the Electricity Supply Industry Amendment (Feed-in Tariffs and Other Matters) Act 2013 commences.

3.   Principal Regulations

In these regulations, the Electricity Supply Industry (Pricing and Related Matters) Regulations 2013 are referred to as the Principal Regulations.

4.    Regulation 3 amended (Interpretation)

Regulation 3 of the Principal Regulations is amended as follows:

(a) by inserting the following definition after the definition of distribution determination :

feed-in tariff rate determination means –

(a) the initial feed-in tariff rate determination made in accordance with regulation 47A ; and

(b) a feed-in tariff determination rate made in accordance with regulation 47E ;

(b) by inserting "and" after " regulation 37(4) ;" in paragraph (c) of the definition of notice of pricing investigation ;

(c) by inserting the following paragraph after paragraph (c) in the definition of notice of pricing investigation :

(d) a notice in respect of the investigation that is given under regulation 47C(1) , as the notice is amended, if at all, under regulation 47C(4) ;

(d) by omitting "or regulation 34 " from the definition of pricing investigation and substituting ", regulation 34 or regulation 47B ".

5.    Part 4A inserted

After regulation 47 of the Principal Regulations , the following Part is inserted:

PART 4A - Feed-in Tariffs

Division 1 - Initial feed-in tariff rate determination

47A.   Initial feed-in tariff rate determination

(1)  The Regulator must, as soon as practicable after these regulations commence, make the first determination (the initial feed-in tariff rate determination) to be made under section 44G(1) of the Act.

(2)  The initial feed-in tariff rate determination is to be consistent with the recommendation, as to the rate to be paid by authorised retailers, that is made by the Regulator in the relevant report, within the meaning of section 44G(7) of the Act.

(3)  If the initial feed-in tariff rate determination specifies a method for determining a rate in relation to a kilowatt hour, the determination may authorise the Regulator to determine, from time to time, the rate, for a period specified in the initial feed-in tariff rate determination, calculated in accordance with the method.

(4)  The initial feed-in tariff rate determination is to specify the date on which the determination is to take effect and the date on which it expires.

(5)  A date specified in the initial feed-in tariff rate determination as the date on which the determination is to take effect may not be a date that occurs before these regulations commence.

(6)  Division 2 does not apply in relation to the making by the Regulator, in accordance with subregulation (1) , of the initial feed-in tariff rate determination.

Division 2 - Pricing investigations

47B.   Pricing investigation to be conducted before expiry of certain determinations

(1)  At a reasonable time before the expiry of a feed-in tariff rate determination, the Regulator is to conduct a pricing investigation for the purposes of this regulation.

(2)  The objective of a pricing investigation for the purposes of this regulation is to provide information to the Regulator to enable the Regulator to make a determination under section 44G(1) of the Act.

47C.   Notice of investigation to be given

(1)  Before conducting a pricing investigation for the purposes of regulation 47B , the Regulator –

(a) is to give to the Minister notice in writing of the investigation (anotice of pricing investigation); and

(b) is to publish a copy of the notice in the daily newspapers that the Regulator considers appropriate.

(2)  A notice of pricing investigation for the purposes of regulation 47B is to specify –

(a) the objective of the investigation; and

(b) the period within which, and the form in which, submissions may be made to the Regulator; and

(c) the matters that the Regulator would like submissions to address; and

(d) the date by which the Regulator is to complete the pricing investigation by providing a final report in relation to the investigation.

(3)  Before conducting a pricing investigation for the purposes of regulation 47B , the Regulator is to ensure that a copy of the notice of pricing investigation in relation to the investigation is available, for viewing and downloading by a member of the public, at a website of the Regulator, for a period of not less than 6 months.

(4)  The Regulator may amend a notice of pricing investigation by notice in writing, setting out the amendment, given to the Minister.

(5)  The Regulator may not amend under subregulation (4) the objective specified, in accordance with subregulation (2)(a) , in a notice of pricing investigation.

(6)  If the Regulator amends under subregulation (4) a notice of pricing investigation, the Regulator is to –

(a) give notice of the amendment in the daily newspapers that the Regulator considers appropriate; and

(b) ensure that a copy of the notice given under subregulation (4) is available, for viewing and downloading by a member of the public, at a website of the Regulator, for a period of not less than 6 months.

47D.   Contents of final report

The final report in relation to a pricing investigation for the purposes of regulation 47B is to set out –

(a) a summary of the information obtained by the Regulator during the investigation; and

(b) a statement as to the determination that the Regulator intends to make under section 44G(1) of the Act.

Division 3 - Feed-in tariff rate determinations

47E.   Feed-in tariff rate determinations

(1)  After completing the final report in relation to a pricing investigation for the purposes of regulation 47B , the Regulator is to make under section 44G(1) of the Act a determination (a feed-in tariff rate determination).

(2)  If a feed-in tariff rate determination specifies a method for determining a rate in relation to a kilowatt hour, the determination may authorise the Regulator to determine, from time to time, the rate, for a period specified in the feed-in tariff rate determination, calculated in accordance with the method.

(3)  A feed-in tariff rate determination is to specify the date on which the determination is to take effect and the date on which it expires.

(4)  A date specified in a feed-in tariff rate determination as the date on which the determination is to take effect may not be a date that occurs before the determination is made.

47F.   Notice of making of feed-in tariff rate determination

(1)  As soon as practicable after making a feed-in tariff rate determination, the Regulator must –

(a) give a copy of the determination to –

(i) the Minister; and

(ii) each distributor; and

(b) publish, in the daily newspapers that the Regulator considers appropriate, notice that the determination has been made and that a copy of the determination –

(i) may, on payment of the relevant fee in respect of such a copy, be obtained at a place specified in the notice; and

(ii) may be viewed and downloadedat a website specified in the notice.

(2)  As soon as practicable after making a feed-in tariff rate determination, the Regulator is to ensure that –

(a) a copy of the determination may be obtained –

(i) in an electronic form contained in a disk or other portable object, by a member of the public, on payment of the relevant fee, if any, for such a copy; and

(ii) in a paper form by a member of the public on payment of the relevant fee, if any, for such a copy; and

(b) a copy of the determination is available, for viewing and downloading by a member of the public, at a website of the Regulator, until the end of the period for which thedetermination remains in force.

(3)  The relevant fee in respect of a copy is a fee determined by the Regulator under subregulation (4) in respect of such a copy.

(4)  The Regulator may determine an amount to be a relevant fee in respect of a copy of a feed-in tariff rate determination, but only if the amount is not more than the cost to the Regulator of making the copy.

(5)  A distributor to which a notice is given under subregulation (1) is to take all reasonable steps to notify each authorised retailer that supplies electricity on mainland Tasmania of the contents of the notice.

47G.   When feed-in tariff rate determination takes effect and ends

(1)  A feed-in tariff rate determination (the new determination) takes effect –

(a) if at the time the new determination is made there is in force no other such determination – on the date specified in the new determination as the date on which the determination is to take effect; or

(b) if at the time the new determination is made there is in force another such determination that has not yet reached its expiry date – on the expiry or revocation of the other determination; or

(c) if at the time the new determination is made there is in force, by reason of subregulation (3) , another such determination – on the date specified in the new determination as the date on which the determination is to take effect.

(2)  A feed-in tariff rate determination ceases to have effect –

(a) if the determination is revoked – on the date that revocation takes effect; or

(b) in any other case – on the date specified in the determination as the date on which it expires.

(3)  If, on the date on which a feed-in tariff rate determination is due to expire, a pricing investigation is being conducted for the purposes of regulation 47B , that determination continues to have effect until a subsequent determination takes effect.

47H.   Determination of rates under feed-in tariff rate determinations

(1)  If –

(a) a feed-in tariff rate determination specifies a method for determining a rate in relation to a kilowatt hour; and

(b) the feed-in tariff rate determination authorises the Regulator to determine, from time to time, the rate, for a period specified in the feed-in tariff rate determination, calculated in accordance with the method; and

(c) the Regulator determines the rate accordingly –

the determination of the rate has effect for the period specified in the determination of the rate as the period for which the determination of the rate is to have effect.

(2)  Regulation 47F applies in relation to a determination of a rate referred to in subregulation (1) as if the determination of the rate were a feed-in tariff rate determination.

47I.   Amendment or revocation of feed-in tariff rate determinations

(1)  The Regulator may amend or revoke under section 44G(4) of the Act a feed-in tariff rate determination if the Regulator is of the opinion –

(a) that the determination was made on the basis of information that was false or misleading in a material particular; or

(b) that there is a material error in the determination; or

(c) that –

(i) an electricity entity or authorised retailer is materially adversely affected by the determination as a result of an event which is beyond the entity's or retailer's reasonable control and which was not taken into account in the terms of the determination; and

(ii) the benefits of amending or revoking the determination would outweigh any detriment to the electricity supply industry that might result from the amendment or revocation of the determination.

(2)  An amendment or revocation under section 44G(4) of the Act of a feed-in tariff rate determination takes effect on the date specified in the amendment or revocation.

(3)  Regulation 47F applies in relation to an amendment or revocation under section 44G(4) of the Act of a feed-in tariff rate determination as if the amendment or revocation were a feed-in tariff rate determination.

(4)  A distributor is to take all reasonable steps to notify each authorised retailer that retails electricity on mainland Tasmania of the making of an amendment or revocation under section 44G(4) of the Act.

47J.   Process for amendment or revocation

(1)  Before amending or revoking under section 44G(4) of the Act a feed-in tariff rate determination, the Regulator is to invite submissions in respect of whether the determination ought to be amended or revoked.

(2)  The invitation referred to in subregulation (1) is to –

(a) be in writing; and

(b) specify a reasonable period within which the submissions may be made.

(3)  The Regulator is to –

(a) give a copy of the invitation to –

(i) the Minister; and

(ii) each distributor; and

(b) publish a copy of the invitation in the daily newspapers that the Regulator considers appropriate.

(4)  A distributor who has been given a copy of an invitation under subregulation (3) is to take all reasonable steps to give notice of the invitation to each authorised retailer that retails electricity on mainland Tasmania.

(5)  The Regulator may only amend or revoke under section 44G(4) of the Act a feed-in tariff rate determination –

(a) after the expiry of the period within which submissions may, under the invitation referred to in subregulation (1) , be made in relation to the determination; and

(b) after considering any such submissions received.

(6)  Subject to these regulations, for the purpose of determining whether or not to amend or revoke a feed-in tariff rate determination, the Regulator may do any or all of the following:

(a) consult with any person;

(b) hold seminars;

(c) hold hearings;

(d) do anything the Regulator considers necessary or convenient.

(7)  In determining whether or not to amend or revoke under section 44G(4) of the Act a feed-in tariff rate determination, the Regulator is not bound by the rules of evidence but may inform itself of any matter in any manner the Regulator considers appropriate.

(8)  If the Regulator decides to hold a hearing for the purpose of determining whether or not to amend or revoke under section 44G(4) of the Act a feed-in tariff rate determination, regulation 50 applies as if the hearing were a hearing in respect of a pricing investigation.

(9)  Regulations 51 and 52 apply, in relation to the determining by the Regulator of whether or not to amend or revoke under section 44G(4) of the Act a feed-in tariff rate determination, as if the Regulator were conducting a pricing investigation.

47K.   Costs of investigations and determinations

(1)  In this regulation, each of the following is a relevant activity of the Regulator:

(a) the conduct and reporting of a pricing investigation for the purposes of regulation 47B and the giving, or publishing, of any notice required under these regulations to be given in relation to such an investigation or a report;

(b) the making under section 44G(1) of the Act, and the publishing under these regulations of a copy, of a feed-in tariff rate determination other than the initial feed-in tariff rate determination;

(c) the giving, or publishing, of any notice required under these regulations to be given in relation to the making of a feed-in tariff rate determination other than the initial feed-in tariff rate determination;

(d) the amendment or revocation under section 44G(4) of the Act of a feed-in tariff rate determination and the publishing under these regulations of a copy of the amendment or revocation;

(e) the giving, or publishing, of any notice required under these regulations to be given in relation to the amendment or revocation under section 44G(4) of the Act of a feed-in tariff rate determination;

(f) the determining of a rate, in accordance with regulation 47H(1) , under a feed-in tariff rate determination and the giving, or publishing, of any notice required under these regulations to be given in relation to the determining of the rate.

(2)  The Regulator may –

(a) determine the total expenses, reasonably incurred by the Regulator, arising from a relevant activity of the Regulator; and

(b) determine the amount of the total expenses determined under paragraph (a) that is to be payable by authorised retailers that retail electricity on mainland Tasmania; and

(c) determine for the purposes of a notice under subregulation (4) the proportion of the amount determined under paragraph (b) that is to be payable by an authorised retailer to which the notice is to relate.

(3)  The Regulator is to determine a proportion under subregulation (2)(c) by allocating the amount determined under subregulation (2)(b) , in the proportion that the Regulator thinks fair and reasonable, between all authorised retailers that retail electricity on mainland Tasmania.

(4)  The Regulator may send to an authorised retailer that retails electricity on mainland Tasmania a notice of expenses in relation to a relevant activity of the Regulator.

(5)  A notice of expenses to an authorised retailer in relation to a relevant activity of the Regulator is a notice specifying –

(a) the amount, determined under subregulation (2)(c) in relation to the authorised retailer, that is to be payable by the authorised retailer; and

(b) the date on or before which the amount is to be paid by the authorised retailer.

(6)  A date specified in a notice to an authorised retailer in accordance with subregulation (5)(b) is not to be earlier than 30 days after the notice is sent to the authorised retailer.

(7)  An authorised retailer to which an expenses notice is sent is liable to pay, to the Regulator, on or before the date specified in the notice as the date by which the amount is to be paid, the amount specified in the notice.

(8)  The Regulator may recover in a court of competent jurisdiction, as a debt due and owing, an amount an authorised retailer is liable to pay under subregulation (7) .

Division 4 - Miscellaneous

47L.   Manner in which billing amount to be paid

(1)  For the purposes of section 44E(5) of the Act, the manner of paying feed-in tariff billing amounts is the manner set out in this regulation.

(2)  Subject to subregulation (3) , a feed-in tariff billing amount in respect of premises is to be paid to a feed-in tariff customer in respect of the premises by crediting the amount to the customer's electricity account for the billing period in respect of the feed-in tariff billing amount.

(3)  If the feed-in tariff billing amount, in respect of a billing period, that the authorised retailer is required to pay to the customer is more than the amount for which the customer is to be charged for the supply of electricity to the premises during that billing period, the authorised retailer is to pay the feed-in tariff billing amount in accordance with the relevant choice as to payment made by the customer by notice to the authorised retailer.

(4)  For the purposes of subregulation (3) , the relevant choices as to payment of a feed-in tariff billing amount, in respect of a billing period, in relation to premises are –

(a) the choice to have the amount credited to an electricity account of the customer for a subsequent billing period in relation to the premises; or

(b) the choice to receive the amount, within the period of 30 days after the electricity account in respect of the billing period is sent to the customer, by cash, cheque, bank deposit or electronic transfer of funds, whichever may be selected by the customer.

47M.   Reporting and recording by distributors

(1)  For the purposes of section 44J(1) of the Act, a distributor in respect of premises must keep an accurate record of all small customers in respect of the premises –

(a) who are, or who have ceased to be, transitional feed-in tariff customers, or standard feed-in tariff customers, in respect of the premises; or

(b) who have –

(i) ceased to be transitional feed-in tariff customers, or standard feed-in tariff customers, in respect of the premises, in relation to one authorised retailer; and

(ii) become transitional feed-in tariff customers, or standard feed-in tariff customers, in respect of the premises, of another authorised retailer.

(2)  For the purposes of section 44J(2) of the Act, the period is the period between 1 July and 30 September in each year.

(3)  For the purposes of section 44J(2) of the Act, the report to be provided within the period specified in subregulation (2) is to contain the following matters:

(a) the number of small customers in respect of premises at which there are installed qualifying systems that became, in the previous financial year, connected by the distributor to the distributor's distribution network;

(b) the number of small customers in respect of premises at which there are installed qualifying systems that were, as at the end of the previous financial year, connected by the distributor to the distributor's distribution network (whether or not the system became connected in that previous financial year or an earlier financial year);

(c) the total generating capacity of, and amount of electricity supplied to the distribution network by, all qualifying systems, at premises of small customers, that were, as at the end of the previous financial year, connected by the distributor to the distributor's distribution network (whether or not the systems became connected in that previous financial year or in an earlier financial year);

(d) the number of transitional feed-in tariff customers, and the number of standard feed-in tariff customers, in respect of premises at which, as at the end of the previous financial year, qualifying systems had been connected by the distributor to the distributor's distribution network (whether or not the systems became connected in that previous financial year or an earlier financial year);

(e) the number of customers, in respect of premises connected to the distributor's distribution network, who were transitional feed-in tariff customers in respect of the premises at any time in the previous financial year and had, by the end of that previous financial year, ceased to be such customers in respect of such premises, including by virtue of having become standard feed-in tariff customers;

(f) the number of transitional feed-in tariff customers, in respect of premises connected to the distributor's distribution network, who, in the previous financial year –

(i) ceased to be transitional feed-in tariff customers, in respect of the premises, in relation to one authorised retailer; and

(ii) became transitional feed-in tariff customers, in respect of the premises, of another authorised retailer;

(g) the number of transitional feed-in tariff customers, in respect of premises connected to the distributor's distribution network, who, in the previous financial year –

(i) ceased to be transitional feed-in tariff customers, in respect of the premises, in relation to an authorised retailer; and

(ii) became standard feed-in tariff customers, in respect of the premises, of that authorised retailer or another;

(h) the amounts paid, under section 44I of the Act, before the end of the previous financial year, by the distributor to each authorised retailer, the amounts for each authorised retailer being listed separately.

(4)  The Regulator must publish, for a period of not less than 6 months, on a website of the Regulator, a copy of a report provided to the Regulator by a distributor in accordance with section 44J(2) of the Act.

6.    Regulation 53 amended (Draft report)

Regulation 53 of the Principal Regulations is amended as follows:

(a) by omitting from subregulation (2)(b)(iv) "; and" and substituting "; or";

(b) by inserting the following subparagraph after subparagraph (iv) in subregulation (2)(b) :

(v) if the investigation is a pricing investigation for the purposes of regulation 47B – each distributor; and

(c) by inserting the following subregulation after subregulation (6) :

(7)  A distributor who has been given a copy of a draft report under subregulation (2)(b)(v) is to take all reasonable steps to notify each authorised retailer that retails electricity on mainland Tasmania that a copy of the draft report may be viewed on a website of the Regulator.

7.    Regulation 54 amended (Final report)

Regulation 54 of the Principal Regulations is amended as follows:

(a) by omitting from subregulation (1)(c)(iv) "; and" and substituting "; or";

(b) by inserting the following subparagraph after subparagraph (iv) in subregulation (1)(c) :

(v) if the investigation is a pricing investigation for the purposes of regulation 47B – each distributor; and

(c) by inserting the following subregulation after subregulation (5) :

(5A)  The final report in relation to an investigation that is a pricing investigation for the purposes of regulation 47B is to –

(a) be given under subregulation (1) before the date specified, in accordance with regulation 47C(2)(d) , in the notice of pricing investigation in relation to the pricing investigation; and

(b) be consistent with the Act and any regulations under the Act; and

(c) report in relation to the matters specified in regulation 47D .

(d) by omitting from subregulation (6)(b) "thedeclared electrical service price determination, made in respect of the declared electrical service to which the report relates," and substituting "the determination or approval under the Act to which the report relates";

(e) by inserting the following subregulation after subregulation (8) :

(9)  A distributor who has been given a copy of a final report under subregulation (1)(c)(v) is to take all reasonable steps to notify each authorised retailer that retails electricity on mainland Tasmania that a copy of the final report may be viewed on a website of the Regulator.

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

Notified in the Gazette on 27 November 2013

These regulations are administered in the Department of Treasury and Finance.

EXPLANATORY NOTE

(This note is not part of the regulation)

These regulations make provision in relation to the making of determinations in respect of feed-in tariff rates, the obligations, in relation to feed-in tariff customers, of authorised retailers and recording and reporting obligations of distributors.