Electricity Supply Industry (Price Control) Regulations 2003

Electricity Supply Industry (Price Control) Regulations 2003

I, the Lieutenant-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

Lieutenant-Governor

By His Excellency's Command,

DAVID CREAN

Treasurer

PART 1 - Preliminary

1.   Short title

These regulations may be cited as the Electricity Supply Industry (Price Control) Regulations 2003 .

2.   Commencement

(1)  Regulation 44 takes effect on 1 January 2004.

(2)  The remaining provisions of these regulations take effect on the day on which the making of these regulations is notified in the Gazette.

3.   Interpretation

In these regulations –

Act means the Electricity Supply Industry Act 1995 ;

adjustment payment has the same meaning as in a relevant vesting agreement;

amend means –

(a) omit any matter; or

(b) insert or add any matter; or

(c) omit any matter and substitute any other matter;

Associate Regulator means a person appointed as an Associate Regulator under regulation 40 ;

Aurora Energy means Aurora Energy Pty Ltd (ABN 85 082 464 622);

Cabinet record means a record which –

(a) is referred to in section 24(1) of the Freedom of Information Act 1991 ; and

(b) contains exempt information, within the meaning of that Act, to which that section applies;

Consumer Price Index means the Consumer Price Index: All Groups Weighted Average of Eight Capital Cities Index published by the Australian Bureau of Statistics under the authority of the Census and Statistics Act 1905 of the Commonwealth or, if that Index is suspended or discontinued, any index published by the Australian Bureau of Statistics that the Regulator considers measures the weighted average price inflation for the household sector in capital cities in Australia;

contract includes agreement and arrangement;

declaration of declared electrical service means a declaration made under regulation 19 ;

declared electrical service means a good or service declared under regulation 19 to be a declared electrical service;

declared electrical service price determination means a determination made under regulation 31 ;

declared electrical service pricing investigation means an investigation conducted under regulation 23(1) or (6) ;

distribution service means the distribution of electricity or another service related to the distribution of electricity;

dividend includes a dividend within the meaning of the Government Business Enterprises Act 1995 ;

draft transmission revenue cap determination means a draft determination made under regulation 11 ;

function includes duty;

[Regulation 3 Amended by No. 78 of 2005, s. 38, Applied:15 Dec 2005] jurisdictional derogations means the jurisdictional derogations for Tasmania relating to the application in Tasmania of the National Electricity Rules as authorised (from time to time) by the AER under the Trade Practices Act 1974 of the Commonwealth;

ministerial charter has the same meaning as in the Government Business Enterprises Act 1995 ;

notice of declared electrical service pricing investigation means the notice given under regulation 24 ;

pass-through event means a tax event, or any other event, which in the opinion of the Regulator requires that the maximum revenues specified in a transmission revenue cap determination should be adjusted;

price includes charge and tariff;

pricing order means an order under regulation 21B of the Electricity Supply Industry (Price Control) Regulations 1998, as in force immediately before these regulations take effect;

pricing policies includes policies relating to the level or structure of prices for goods or services;

provide includes the supply of electricity, where appropriate;

[Regulation 3 Amended by S.R. 2007, No. 87, Applied:26 Sep 2007] regional reference node has the same meaning as in the National Electricity Rules;

relevant tax means a tax, charge, levy, duty or imposition that is directly attributable to the provision of a service specified in a transmission revenue cap determination or a declared electrical service and, in the opinion of the Regulator, is not normally absorbed by businesses in a fully competitive market, but does not include –

(a) an income tax, income tax equivalent, fringe benefits tax or capital gains tax; or

(b) a tax, charge, levy, duty or imposition that replaces a tax referred to in paragraph (a) ; or

(c) [Regulation 3 Amended by No. 78 of 2005, s. 38, Applied:15 Dec 2005] a fee or charge payable under the Act, the regulations, the Code or the National Electricity Rules; or

(d) a renewable energy shortfall charge under section 36 of the Renewable Energy (Electricity) Act 2000 of the Commonwealth; or

(e) an amount payable under a contract; or

(f) a fine or other penalty;

relevant vesting agreement means a vesting agreement between the Hydro-Electric Corporation and Aurora Energy relating to the supply of electricity to tariff customers, whether the vesting agreement relates to all or only some of the electricity to be supplied to tariff customers;

tariff customer means a customer who is supplied with electricity on the basis of a tariff under a contract in force by reason of section 39A of the Act;

Tasmanian newspaper means a newspaper published and circulating generally in Tasmania;

tax event, in relation to a transmission revenue cap determination or a declared electrical service price determination, means –

(a) the imposition on an electricity entity of an obligation to pay an amount which –

(i) it was not obliged to pay at the time the determination was made; and

(ii) arises from the imposition of a relevant tax; or

(b) a change in the manner in which, or the rate at which, a relevant tax is calculated which results in a change in an amount an electricity entity is required to pay, whether directly or by reason of an adjustment under a contract of an amount payable under that contract, in respect of relevant taxes from the amount it was so required to pay at the time the determination was made; or

(c) the removal of a relevant tax which results in a change in an amount an electricity entity is required to pay, whether directly or by reason of an adjustment under a contract of an amount payable under that contract, in respect of relevant taxes from the amount it was so required to pay at the time the determination was made;

transmission revenue cap determination means a determination made under regulation 13 ;

transmission revenue cap investigation means an investigation conducted under regulation 6 ;

Transend means Transend Networks Pty Ltd (ABN 57 082 586 892);

vesting agreement adjustment event means a payment by Aurora Energy to the Hydro-Electric Corporation of an adjustment payment in accordance with a relevant vesting agreement.

4.   Regulations bind Crown

These regulations bind the Crown in right of Tasmania and, so far as the legislative power of Parliament permits, in all its other capacities.

PART 2 - Transmission Revenue Cap Determinations and Investigations

Division 1 - Preliminary

5.   How prices and price control mechanisms may be expressed

The maximum revenues that may be received by an electricity entity may be expressed in one or more of the following terms or manners:

(a) by reference to a maximum revenue;

(b) pricing policies or principles;

(c) by reference to a manner of fixing a maximum revenue;

(d) by reference to a method of calculating a maximum revenue;

(e) in any other terms or manner the Regulator considers appropriate.

Division 2 - Investigations

6.   Requirement to investigate

The Regulator is to conduct in accordance with this Division an investigation for the purpose of making a transmission revenue cap determination in respect of Transend.

7.   Conduct of transmission revenue cap investigation

(1)  For the purposes of conducting a transmission revenue cap investigation but subject to these regulations, the Regulator may do anything he or she considers necessary or convenient.

(2)  Subject to these regulations, the Regulator may conduct a transmission revenue cap investigation in the manner he or she considers appropriate and, in particular, may –

(a) consult with any person; and

(b) receive submissions from those persons he or she considers appropriate; and

(c) hold seminars; and

(d) conduct workshops.

(3)  In conducting a transmission revenue cap investigation, the Regulator is not bound by rules of evidence but may inform himself or herself of any matter in any manner he or she considers appropriate.

8.   Requiring person to give evidence or provide document

(1)  For the purposes of a transmission revenue cap investigation, the Regulator may require a person, by written notice provided to the person, to do any one or more of the following:

(a) attend before the Regulator and answer questions which, in the opinion of the Regulator, are relevant to the investigation;

(b) provide to the Regulator, in the manner specified in the notice, any document specified in the notice which is in the person's possession or control and which, in the opinion of the Regulator, is relevant to the investigation;

(c) provide to the Regulator, in the manner specified in the notice, a document prepared as specified in the notice that contains information which is specified in the notice and which, in the opinion of the Regulator, is relevant to the investigation;

(d) provide to the Regulator, in the manner specified in the notice, any other information specified in the notice which, in the opinion of the Regulator, is relevant to the investigation.

(2)  Despite subregulation (1) , the Regulator may not require a person –

(a) to answer a question, or provide a document or information, if to do so would require the person to divulge information contained in or relating to a Cabinet record; or

(b) to provide to the Regulator a Cabinet record.

(3)  If a person is required under subregulation (1) to attend before the Regulator and answer questions, the Regulator may determine whether the person may be represented by another person.

9.   Use of documents and other information

(1)  The Regulator –

(a) may examine, take possession of, make copies of and take extracts from any document provided under a requirement referred to in regulation 8(1)(b) or (c) ; and

(b) may retain that document for so long as is necessary for the purposes of the transmission revenue cap investigation; and

(c) is to allow a person who would be entitled to inspect the document if it were not in the possession of the Regulator to inspect it, make a copy of it or take an extract from it at any reasonable time.

(2)  The Regulator may give directions prohibiting or restricting –

(a) the publication of any answer, document or other information provided to it under a requirement referred to in regulation 8(1) ; and

(b) a part of any such answer, document or other information; and

(c) a copy of, or extract from, any such answer, document, other information or part.

(3)  A person must not contravene a direction given under subregulation (2) .

Penalty:  Fine not exceeding 100 penalty units.

(4)  The Freedom of Information Act 1991 does not apply in respect of –

(a) any answer, document, other information or part of any answer, document or other information in respect of which a direction under subregulation (2) has been given; and

(b) records relating to the production of any such answer, document, other information or part.

(5)  The Regulator may publish to any person as the Regulator considers appropriate any answer, document or other information provided under a requirement referred to in regulation 8(1) , or part of any such answer, document or other information, except where –

(a) a direction in respect of the answer, document, other information or part has been given under subregulation (2) and its provision to that person would contravene the direction; or

(b) the answer, document, other information or part contains information which is exempt information under the Freedom of Information Act 1991 ; or

(c) the answer, document, other information or part is or contains information which could cause damage to the commercial interests of a person and the Regulator determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

10.   Matters to be considered

In a transmission revenue cap investigation, the Regulator must have regard to the objectives specified in clause 6.2.2 of the Code and the principles specified in clauses 6.2.3 and 6.2.4(a) and (c) of the Code.

11.   Draft report and draft transmission revenue cap determination

(1)  At an appropriate time during a transmission revenue cap investigation, the Regulator is to –

(a) prepare a draft report on the investigation and a draft transmission revenue cap determination; and

(b) provide a copy of the draft report and draft transmission revenue cap determination to the Minister and Transend; and

(c) make copies of the draft report and draft transmission revenue cap determination, in both electronic and printed form, available to members of the public on payment of the reasonable fee, if any, determined by the Regulator.

(2)  The Regulator –

(a) is to hold a hearing in respect of the draft report and draft transmission revenue cap determination; and

(b) may hold further hearings in respect of the draft report and draft transmission revenue cap determination; and

(c) is to allow persons to make submissions to him or her in respect of the draft report and draft transmission revenue cap determination.

12.   Hearings

(1)  Before holding a hearing under regulation 11(2) in respect of a draft report and draft transmission revenue cap determination, the Regulator is to give reasonable notice of the hearing in such daily Tasmanian newspapers as the Regulator considers appropriate.

(2)  The notice of a hearing is to specify –

(a) the purpose of the hearing; and

(b) the time and place at which the hearing is to be held; and

(c) the places at which copies of the draft report and draft transmission revenue cap determination may be obtained or accessed.

(3)  The Regulator may determine whether any person wishing to appear before the Regulator at a hearing may be represented by another person.

(4)  A hearing is to be held in public.

(5)  Despite subregulation (4) , if the Regulator is satisfied that it would be in the public interest to do so or that any evidence or document to be presented at the hearing is, or is likely to be, of a confidential or commercially sensitive nature, the Regulator is to –

(a) direct that the hearing or part of the hearing is to take place in private and give directions as to the persons who may be present; and

(b) give directions prohibiting or restricting the publication of evidence or a document presented at the hearing or a part of any such evidence or document.

(6)  A person must not contravene a direction given under subregulation (5) .

Penalty:  Fine not exceeding 100 penalty units.

(7)  The Freedom of Information Act 1991 does not apply in respect of –

(a) any evidence or document, or any part of any evidence or document, in respect of which a direction under subregulation (5)(b) has been given; and

(b) records relating to the presentation of any such evidence, document or part.

(8)  The Regulator may publish to any person as the Regulator considers appropriate any evidence or document presented at a hearing, or part of any such evidence or document, except where –

(a) a direction in respect of the evidence, document or part has been given under subregulation (5)(b) and its publication to that person would contravene the direction; or

(b) the evidence, document or part contains information which is exempt information under the Freedom of Information Act 1991 ; or

(c) the evidence, document or part is, or contains, information which could cause damage to the commercial interests of a person and the Regulator determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

Division 3 - Action following transmission revenue cap investigation

13.   Transmission revenue cap determination

(1)  After considering any submissions made and any information presented during any hearings held under regulation 11(2) , the Regulator is to make a determination that –

(a) specifies the services provided by Transend to which the determination applies; and

(b) specifies the maximum revenues in respect of those services.

(2)  In specifying in a transmission revenue cap determination the services to which it applies, the Regulator is to have regard to the level of competition which exists, or is likely to exist, during the term of the determination, in respect of the provision of those services in Tasmania.

(3)  In making a transmission revenue cap determination, the Regulator is to take into account the matters he or she must consider under regulation 10 when conducting a transmission revenue cap investigation.

(4)  A transmission revenue cap determination is to specify the day, not less than 5 years after the determination takes effect, on which the determination expires.

(5)  A transmission revenue cap determination –

(a) may allow for an adjustment to the maximum revenues specified in the determination as a result of a pass-through event specified in the determination and, if it does so allow, is to specify the method of calculating that adjustment or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment; and

(b) may establish a performance incentive scheme for Transend and, if it does so, is to specify the method of calculating the adjustment to the maximum revenues specified in the determination as a result of that scheme or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment.

(6)  A transmission revenue cap determination may have a differential application that varies according to factors stated in the determination.

(7)  When making a transmission revenue cap determination, the Regulator is to also prepare and publish a report that specifies in appropriate detail the basis and rationale for the determination.

(8)  When making a transmission revenue cap determination, the Regulator is to also publish the following either as part of the report or otherwise:

(a) reasonable details of the qualitative and quantitative methodologies applied in making the determination, including calculations and formulae;

(b) the values adopted by the Regulator for each of the input variables in calculations and formulae used, including the reasons for adopting those values;

(c) reasonable details of other assumptions made by the Regulator in the conduct of all material quantitative and qualitative analyses undertaken in relation to the setting of a maximum revenue or a related matter;

(d) full reasons for all material judgments and qualitative decisions made and options considered;

(e) full reasons for all discretions exercised which materially affected the setting of maximum revenues in the determination.

(9)  On making a transmission revenue cap determination and report, the Regulator is to –

(a) provide a copy of the determination and report to the Minister and to Transend; and

(b) publish in such daily Tasmanian newspapers as the Regulator considers appropriate notice that the determination and report are available for purchase.

(10)  As soon as practicable after a transmission revenue cap determination and report are made, the Regulator is to ensure that copies of them, in both electronic and printed form, are available to members of the public on payment of the reasonable fee, if any, determined by the Regulator.

14.   When transmission revenue cap determination takes effect and ends

(1)  In this regulation,

existing determination, in relation to a transmission revenue cap determination relating to a service, means a pricing order relating to that service.

(2)  A transmission revenue cap determination relating to a service takes effect –

(a) if at the time the determination is made no existing determination is in force, on the day specified in the determination; or

(b) if at the time the determination is made an existing determination is in force having not yet reached its expiry date, on the expiry or revocation of that existing determination; or

(c) if at the time the determination is made an existing determination is in force by reason of subregulation (4) , on the day specified in that determination.

(3)  A transmission revenue cap determination ceases to have effect –

(a) if the determination is revoked, on the day that revocation takes effect; or

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

(4)  If on the day on which an existing determination is due to expire a transmission revenue cap investigation is being conducted in respect of a service to which the existing determination relates, the existing determination –

(a) continues to have effect in respect of that service; but

(b) subject to these regulations, ceases to have effect in respect of any other service to which it relates.

15.   Adjustment for pass-through event or under performance incentive scheme

(1)  If a transmission revenue cap determination allows for an adjustment to the maximum revenues under the determination as a result of the occurrence of a pass-through event or under a performance incentive scheme, that adjustment does not take effect until it has been approved by the Regulator.

(2)  If when considering whether to approve an adjustment the Regulator determines that a pass-through event has not occurred or a standard of performance required for an adjustment has not been reached, the Regulator is to notify Transend of that determination.

(3)  The Regulator is not to approve an adjustment unless he or she is satisfied that the adjustment has been calculated in accordance with the method of calculating that adjustment, or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment, specified in the transmission revenue cap determination.

(4)  On approving or refusing to approve an adjustment, the Regulator is to notify Transend of that decision.

16.   Revocation or amendment of transmission revenue cap determination

(1)  The Regulator may by determination revoke or amend a transmission revenue cap determination if –

(a) the Regulator considers that the transmission revenue cap determination was made on the basis of information provided to the Regulator that was false or misleading in a material particular; or

(b) the Regulator considers that there is a material error in the transmission revenue cap determination and Transend has consented to the revocation or amendment; or

(c) [Regulation 16 Subregulation (1) amended by No. 78 of 2005, s. 46, Applied:01 Jan 2008] [Regulation 16 Subregulation (1) amended by No. 78 of 2005, s. 46, Applied:01 Jan 2008] the Regulator considers that there has been a substantial change in ownership of any or all transmission systems in Tasmania, or a significant part of any such transmission system, that may lead to a material change in the revenue requirement of Transend; or

(d) [Regulation 16 Subregulation (1) amended by No. 78 of 2005, s. 39, Applied:15 Dec 2005] after the NEM entry time, the AER has notified the Minister under the jurisdictional derogations that it is re-opening the transmission revenue cap determination.

(2)  The Regulator may only revoke or amend a transmission revenue cap determination under subregulation (1)(d) to the extent necessary to give effect to the notice referred to in that subsection.

(3)  Before revoking or amending a transmission revenue cap determination, the Regulator is to –

(a) invite submissions with respect to the matter within the reasonable period specified in the invitation; and

(b) consider any such submissions made to him or her.

(4)  The invitation referred to in subregulation (3) is to be –

(a) in writing; and

(b) provided to the Minister and Transend; and

(c) published in such daily Tasmanian newspapers as the Regulator considers appropriate.

(5)  Subject to these regulations, the Regulator may do anything he or she considers necessary or convenient for the purpose of determining whether to revoke or amend a transmission revenue cap determination and, in this regard, regulation 7(2) and (3) and regulations 8 , 9 and 10 apply as if the Regulator were conducting a transmission revenue cap investigation.

(6)  A determination revoking or amending a transmission revenue cap determination –

(a) takes effect on the day specified in it; and

(b) is not a statutory rule within the meaning of the Rules Publication Act 1953 .

Division 4 - Costs

17.   Costs of investigations and determinations

(1)  Transend is liable to recompense the Regulator for the whole or part of the reasonable expenses incurred by the Regulator arising from the conduct of a transmission revenue cap investigation (including expenses incurred in preparing the draft transmission revenue cap determination, the transmission revenue cap determination and any reports) as determined by the Regulator by written notice provided to Transend.

(2)  The Regulator may recover in a court of competent jurisdiction, as a debt due and owing, an amount Transend is liable to pay under subregulation (1) .

(3)  [Regulation 17 Subregulation (3) amended by No. 78 of 2005, s. 40, Applied:15 Dec 2005] This regulation is of no effect in respect of any expenses incurred by the AER in performing or exercising functions or powers under this Part that are conferred on it by section 16C of the Electricity Supply Industry Act 1995 .

PART 3 - Declared Electrical Service Price Determinations and Investigations

Division 1 - Preliminary

18.   How prices and price control mechanisms may be expressed

The regulation of prices that may be charged and price control mechanisms may be expressed in one or more of the following terms or manners:

(a) maximum prices or the maximum rate of increase or the minimum rate of decrease in maximum prices;

(b) average prices or average rates of increase or decrease in average prices;

(c) pricing policies or principles;

(d) by reference to a general price index, the cost of production, revenue, a rate of return on assets or any other factor;

(e) by reference to quantity, location or period of provision of the declared electrical service;

(f) by reference to a maximum revenue;

(g) any other terms the Regulator considers appropriate.

19.   Declaration of declared electrical service

(1)  In this regulation,

good or service provided by an electricity entity includes the sale and supply of electricity but does not include a service specified in a transmission revenue cap determination which is in force.

(2)  The Regulator, by notice published in the Gazette, may declare a good or service provided by an electricity entity to be a declared electrical service if the Regulator is of the opinion that –

(a) the electricity entity has substantial market power in respect of that good or service; and

(b) the promotion of competition, efficiency or the public interest requires the making of the declaration.

(3)  Before making a declaration under subregulation (2) , the Regulator must –

(a) give written notice of his or her intention to make the declaration, and the reasons for making the declaration, to each electricity entity providing the good or service; and

(b) publish that notice in such daily Tasmanian newspapers as the Regulator considers appropriate; and

(c) allow the electricity entity and any other person to make written submissions to the Regulator with respect to the matter within such reasonable time as is specified in that notice.

(4)  A declaration of declared electrical service takes effect on the day the notice making the declaration is published in the Gazette or on a later day specified in the notice.

20.   Amendment of declaration of declared electrical service

(1)  The Regulator, by notice published in the Gazette, may amend a declaration of declared electrical service.

(2)  Regulation 19(3) and (4) applies in respect of an amendment to a declaration of declared electrical service as if the amendment were such a declaration.

(3)  If a declaration of declared electrical service is amended, the amendment does not invalidate an investigation in respect of the good or service to which the declaration relates that is being conducted at the time of the amendment.

21.   Revocation of declaration of declared electrical service

(1)  [Regulation 21 Subregulation (1) amended by No. 78 of 2005, s. 41, Applied:15 Dec 2005] The Regulator, by notice published in the Gazette, may revoke a declaration of declared electrical service in respect of a declared electrical service that is a distribution service if the Regulator is of the opinion that the revocation is appropriate as a consequence of the application in Tasmania of Chapter 6 of the National Electricity Rules to the regulation of network pricing for distribution systems.

(2)  The Regulator, by notice published in the Gazette, may revoke a declaration of declared electrical service in respect of a declared electrical service that is not a distribution service if the Regulator is of the opinion –

(a) that no electricity entity providing the declared electrical service has substantial market power in respect of the declared electrical service; or

(b) that the declaration is no longer required for the promotion of competition, efficiency or the public interest.

(3)  Regulation 19(3) applies in respect of a revocation of a declaration of declared electrical service as if the revocation were such a declaration.

(4)  The revocation of a declaration of declared electrical service takes effect on the day specified in the notice revoking that declaration.

22.   Revocation of certain declarations of declared electrical service at NEM entry time

A declaration of declared electrical service in respect of any of the following goods or services provided by an electricity entity is revoked at the NEM entry time:

(a) electricity generation on mainland Tasmania for tariff sales;

(b) system control functions;

(c) [Regulation 22 Amended by No. 78 of 2005, s. 42, Applied:15 Dec 2005] procurement and use of ancillary services, within the meaning of the National Electricity Rules.

Division 2 - Investigations

23.   Requirement to investigate

(1)  The Regulator is to conduct in accordance with this Division an investigation into the pricing policies of an electricity entity in respect of a declared electrical service.

(2)  Not later than 6 months before a declared electrical service price determination relating to a declared electrical service expires, the Regulator is to invite submissions on whether the declaration of declared electrical service should be revoked.

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

(a) be in writing; and

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

(c) be provided to –

(i) the Minister; and

(ii) each electricity entity providing the declared electrical service; and

(d) be published in such daily Tasmanian newspapers as the Regulator considers appropriate.

(4)  On the expiry of the period within which submissions may be made under the invitation referred to in subregulation (2) , the Regulator is to determine whether to revoke or retain the declaration of declared electrical service.

(5)  If the Regulator determines to revoke the declaration of declared electrical service –

(a) he or she is to do so; and

(b) regulation 21(3) does not apply in respect of the revocation.

(6)  If the Regulator determines to retain the declaration of declared electrical service, he or she is to conduct, within a reasonable time, an investigation into the pricing policies of the electricity entity providing the declared electrical service.

24.   Notice of declared electrical service pricing investigation

(1)  Before conducting a declared electrical service pricing investigation, the Regulator is to give notice of the investigation –

(a) in writing to the Minister and each electricity entity providing the declared electrical service which is the subject of the investigation; and

(b) in such daily Tasmanian newspapers as the Regulator considers appropriate.

(2)  A notice of declared electrical service pricing investigation is to specify –

(a) the purpose of the declared electrical service pricing investigation and the declared electrical service to be investigated; and

(b) the day by which the Regulator is to complete the declared electrical service pricing investigation; and

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

(d) the matters that the Regulator would like submissions to address.

(3)  If the Regulator changes any of the matters referred to in subregulation (2) , the Regulator is to give notice of that change –

(a) in writing to the Minister and each electricity entity providing the declared electrical service; and

(b) in such daily Tasmanian newspapers as the Regulator considers appropriate.

25.   Conduct of declared electrical service pricing investigation

(1)  The Regulator is to conduct a declared electrical service pricing investigation in accordance with a notice of declared electrical service pricing investigation.

(2)  For the purposes of conducting a declared electrical service pricing investigation but subject to these regulations, the Regulator may do anything he or she considers necessary or convenient.

(3)  In conducting a declared electrical service pricing investigation, the Regulator is to –

(a) hold hearings; and

(b) receive submissions in the form specified in the notice of declared electrical service pricing investigation.

(4)  Subject to these regulations, the Regulator may conduct a declared electrical service pricing investigation in the manner he or she considers appropriate and, in particular, may –

(a) consult with any person; and

(b) hold seminars; and

(c) conduct workshops; and

(d) determine whether any person wishing to appear before the Regulator may be represented by another person.

(5)  In conducting a declared electrical service pricing investigation, the Regulator is not bound by rules of evidence but may inform himself or herself of any matter in any manner he or she considers appropriate.

26.   Hearings

(1)  Before holding a hearing in respect of a declared electrical service pricing investigation, the Regulator is to give reasonable notice of the hearing in such daily Tasmanian newspapers as the Regulator considers appropriate.

(2)  The notice of a hearing is to specify –

(a) the purpose of the hearing; and

(b) the time and place at which the hearing is to be held.

(3)  A hearing is to be held in public.

(4)  Despite subregulation (3) , if the Regulator is satisfied that it would be in the public interest to do so or that evidence to be presented is, or is likely to be, of a confidential or commercially sensitive nature, the Regulator is to –

(a) direct that a hearing or part of a hearing is to take place in private and give directions as to the persons who may be present; and

(b) give directions prohibiting or restricting the publication of evidence given or documents produced at the hearing.

(5)  A person must not contravene a direction given under subregulation (4) .

Penalty:  Fine not exceeding 100 penalty units.

(6)  The Freedom of Information Act 1991 does not apply in respect of –

(a) evidence and documents in respect of which a direction under subregulation (4)(b) has been made; and

(b) records of the giving or production of such evidence and documents.

27.   Requiring person to give evidence or provide document

(1)  For the purposes of a declared electrical service pricing investigation, the Regulator may require a person, by written notice provided to the person, to do any one or more of the following:

(a) attend before the Regulator and answer questions which, in the opinion of the Regulator, are relevant to the investigation;

(b) provide to the Regulator, in the manner specified in the notice, any document specified in the notice which is in the person's possession or control and which, in the opinion of the Regulator, is relevant to the investigation;

(c) provide to the Regulator, in the manner specified in the notice, a document prepared as specified in the notice that contains information which is specified in the notice and which, in the opinion of the Regulator, is relevant to the investigation;

(d) provide to the Regulator, in the manner specified in the notice, any other information specified in the notice which, in the opinion of the Regulator, is relevant to the investigation.

(2)  A person who attends before the Regulator under a requirement referred to in subregulation (1)(a) may, at the Regulator's discretion, be paid by the Regulator reasonable allowances and expenses as determined by the Regulator.

(3)  If a person is required under subregulation (1)(a) to attend before the Regulator and answer questions, the Regulator may determine whether the person may be represented by another person.

(4)  Despite subregulation (1) , the Regulator may not require a person –

(a) to answer a question, or provide a document or information, if to do so would require the person to divulge information contained in or relating to a Cabinet record; or

(b) to provide to the Regulator a Cabinet record.

28.   Use of documents and other information

(1)  The Regulator –

(a) may examine, take possession of, make copies of and take extracts from any document provided under a requirement referred to in regulation 27(1)(b) or (c) ; and

(b) may retain that document for so long as is necessary for the purposes of the declared electrical service pricing investigation; and

(c) is to allow a person who would be entitled to inspect the document if it were not in the possession of the Regulator to inspect it, make a copy of it or take an extract from it at any reasonable time.

(2)  The Regulator may give directions prohibiting or restricting the publication of –

(a) any answer, document or other information provided to the Regulator under a requirement referred to in regulation 27(1) ; and

(b) a part of any such answer, document or other information; and

(c) a copy of, or extract from, any such answer, document, other information or part.

(3)  A person must not contravene a direction given under subregulation (2) .

Penalty:  Fine not exceeding 100 penalty units.

(4)  The Freedom of Information Act 1991 does not apply in respect of –

(a) any answer, document, other information or part of any answer, document or other information in respect of which a direction under subregulation (2) has been given; and

(b) records relating to the production of any such answer, document, other information or part.

(5)  The Regulator may publish to any person as the Regulator considers appropriate any answer, document or other information provided under a requirement referred to in regulation 27(1) , or part of any such answer, document or other information, except where –

(a) a direction in respect of the answer, document, other information or part has been given under subregulation (2) and its publication to that person would contravene the direction; or

(b) the answer, document, other information or part contains information which is exempt information under the Freedom of Information Act 1991 ; or

(c) the answer, document, other information or part is or contains information which could cause damage to the commercial interests of a person and the Regulator determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

29.   Draft report

(1)  At an appropriate time during a declared electrical service pricing investigation, the Regulator is to prepare a draft report in respect of the investigation and is to –

(a) provide a copy of the draft report to –

(i) the Minister; and

(ii) each electricity entity providing the declared electrical service which is the subject of the investigation; and

(b) make copies of the draft report, in both electronic and printed form, available to members of the public on payment of the reasonable fee, if any, determined by the Regulator.

(2)  The Regulator is to allow persons to make submissions to him or her in respect of the draft report.

Division 3 - Action following declared electrical service pricing investigation

30.   Final report

(1)  In accordance with the notice of declared electrical service pricing investigation and after considering any submission made under regulation 29(2) , the Regulator is to –

(a) prepare a final report in respect of the declared electrical service pricing investigation; and

(b) provide a copy of the final report to –

(i) the Minister; and

(ii) each electricity entity providing the declared electrical service which is the subject of the declared electrical service pricing investigation; and

(c) publish in such daily Tasmanian newspapers as the Regulator considers appropriate notice that the report is available for purchase.

(2)  The final report is to –

(a) be consistent with the Act and the regulations; and

(b) report in relation to the appropriate prices that may be charged by, or the appropriate price control mechanisms to be imposed on, an electricity entity in respect of the declared electrical service which is the subject of the declared electrical service pricing investigation during the period specified in the report.

(3)  As soon as practicable after the final report is completed, the Regulator is to ensure that copies of it, in both electronic and printed form, are available to members of the public on payment of the reasonable fee, if any, determined by the Regulator.

31.   Declared electrical service price determination

(1)  After completing the final report, the Regulator is to make a determination that regulates the prices that may be charged by, and specifies the price control mechanisms imposed on, an electricity entity during the period specified in the determination in respect of the declared electrical service that was the subject of the report.

(2)  A declared electrical service price determination is to specify the day on which the determination expires.

(3)  A declared electrical service price determination –

(a) is to allow for an adjustment to the prices that may be charged by, and the price control mechanisms imposed on, an electricity entity under the determination as a result of a tax event and is to specify the method of calculating that adjustment or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment; and

(b) in the case of a declared electrical service that is or includes the sale and supply of electricity by Aurora Energy to tariff customers, is to allow for an adjustment to the prices that may be charged by, and the price control mechanisms imposed on, an electricity entity under the determination as a result of a vesting agreement adjustment event specified in the determination and is to specify the method of calculating that adjustment or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment; and

(c) in the case of a declared electrical service that is or includes the sale and supply of electricity by Aurora Energy to tariff customers –

(i) is to allow for an adjustment to the prices that may be charged by, and the price control mechanisms imposed on, an electricity entity under the determination as a result of a change in the costs to the electricity entity from the purchase of renewable energy certificates, within the meaning of the Renewable Energy (Electricity) Act 2000 of the Commonwealth, in connection with the provision of that service; and

(ii) is to specify the method of calculating that adjustment or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment; and

(d) may establish a performance incentive scheme for an electricity entity and, if it does so, is to specify the method of calculating the adjustment to the prices that may be charged by, and the price control mechanisms imposed on, the electricity entity under the determination as a result of that scheme or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment.

(4)  In specifying in a declared electrical service price determination the method of calculating an adjustment referred to in subregulation (3)(a) , (b) or (c) or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment, the Regulator is to ensure that the adjustment reflects the full financial effect to the electricity entity of the tax event, specified vesting agreement adjustment event or change.

(5)  A declared electrical service price determination may have a differential application that varies according to factors stated in the determination.

32.   Principles to be given effect

(1)  In this regulation –

regulated service means a service to which a transmission revenue cap determination applies;

relevant code means –

(a) at any time before the NEM entry time, the Code; or

(b) [Regulation 32 Subregulation (1) amended by No. 78 of 2005, s. 43, Applied:15 Dec 2005] at any time on or after the NEM entry time, the National Electricity Rules.

(2)  In making a declared electrical service price determination, the Regulator is to give effect to the principle that the cost of an electricity entity obtaining a regulated service that is necessary to enable the provision of the declared electrical service that is the subject of the declared electrical service price determination is to be calculated by taking into account the price or charge determined by the electricity entity supplying the regulated service in accordance with the relevant code and any relevant transmission revenue cap determination (as adjusted from time to time in accordance with Division 3 of Part 2 ).

(3)  [Regulation 32 Subregulation (3) substituted by S.R. 2007, No. 87, Applied:26 Sep 2007] In making a declared electrical service price determination relating to a declared electrical service that is or includes a retail service provided by Aurora Energy for non-contestable customers on mainland Tasmania, the Regulator is to assume that the price that Aurora Energy pays for all of the electricity used for that retail service during a period is equal to the price specified in respect of that period in column 3 of Schedule 2 .

(4)  [Regulation 32 Subregulation (4) omitted by S.R. 2007, No. 87, Applied:26 Sep 2007] .  .  .  .  .  .  .  .  

33.   Matters to be considered

(1)  In this regulation –

distribution tariff means the schedule of fees (including the rate or rates) which an electricity entity that holds a licence authorising the distribution of electricity uses to calculate the amount it charges customers, or a class of customers, for network services, as amended from time to time;

small customer means a customer who is supplied with electricity at low voltage.

(2)  In making a declared electrical service price determination, the Regulator is to consider the following matters:

(a) the cost of providing the declared electrical service;

(b) any interstate or international benchmarks for prices, costs, revenues and return on assets in bodies providing a service similar to the declared electrical service;

(c) the principle that consumers of the declared electrical service should be protected from the adverse effects of the exercise of substantial market power by an electricity entity in relation to prices, pricing policies and standards of service in respect of the provision of the declared electrical service;

(d) the principle that the distribution tariff for small customers belonging to a particular class (other than the distribution tariff relating to the supply of electricity to small customers on King Island or Flinders Island) is to be uniform, regardless of where in mainland Tasmania the customer is supplied with electricity;

(e) the degree of competition in the electricity supply industry that is relevant to the provision of the declared electrical service;

(f) the principle that there is a need for a reasonable return (including the payment of dividends) on the assets of an electricity entity;

(g) the principle that there is a need for efficiency in the provision of the declared electrical service for the purpose of benefiting the public interest through a reduction in the cost of providing the declared electrical service;

(h) the effects of inflation;

(i) the principle that there is a need for the electricity entity to be financially viable;

(j) the impact on pricing policies of any borrowing, capital, dividend and taxation or tax equivalent obligations of the electricity entity, including obligations to renew or increase assets;

(k) the quality of the provision of the declared electrical service;

(l) any ministerial charter, licence or obligation under the Act or the regulations that applies, or is likely to apply, to the electricity entity;

(m) the Code;

(n) any costs (including capital expenditure) incurred by the electricity entity at the direction of the Regulator;

(o) the public interest;

(p) any other matter the Regulator considers relevant.

34.   When declared electrical service price determination takes effect and ends

(1)  In this regulation,

existing determination, in relation to a declared electrical service price determination relating to a declared electrical service, means –

(a) another declared electrical service price determination relating to that declared electrical service; or

(b) a pricing order relating to that declared electrical service.

(2)  A declared electrical service price determination relating to a declared electrical service takes effect –

(a) if at the time the determination is made no existing determination is in force, on the day specified in the determination; or

(b) if at the time the determination is made an existing determination is in force having not yet reached its expiry date, on the expiry or revocation of that existing determination; or

(c) if at the time the determination is made an existing determination is in force by reason of subregulation (5) , on the day specified in that determination.

(3)  A declared electrical service price determination ceases to have effect –

(a) if each declaration of declared electrical service in respect of all declared electrical services to which the determination applies has been revoked, on the day on which the last of those revocations takes effect; or

(b) if the determination is revoked, on the day that revocation takes effect; or

(c) if the determination by reason of subregulation (5) is continued after the day it would normally expire, when another declared electrical service price determination in respect of the declared electrical service to which the determination applies takes effect; or

(d) in any other case, on the day specified in the determination as the day on which it expires.

(4)  If a declared electrical service price determination relates to more than one declared electrical service and a declaration of declared electrical service in respect of any of those electrical services is revoked, the declared electrical service price determination ceases to have effect in relation to the good or service in respect of which that declaration of declared electrical service was made.

(5)  If on the day on which a declared electrical service price determination is due to expire a declared electrical service pricing investigation is being conducted in respect of a declared electrical service to which that determination relates, that determination –

(a) continues to have effect in respect of that declared electrical service; but

(b) ceases to have effect in respect of any other declared electrical service to which it relates.

35.   Adjustment for tax event or vesting agreement adjustment event

(1)  In this section,

adjustment means an adjustment to the prices that an electricity entity may charge, and the price control mechanisms imposed on an electricity entity, under a declared electrical service price determination –

(a) as a result of the occurrence of a tax event; or

(b) as a result of the occurrence of a vesting agreement adjustment event specified in the determination; or

(c) as a result of the change in the costs to the electricity entity from the purchase of renewable energy certificates within the meaning of the Renewable Energy (Electricity) Act 2000 of the Commonwealth; or

(d) under a performance incentive scheme.

(2)  An adjustment does not take effect until it has been approved by the Regulator.

(3)  If when considering whether to approve an adjustment the Regulator determines that a tax event, a vesting agreement adjustment event specified in the declared electrical service price determination or a change in the costs to the electricity entity from the purchase of renewable energy certificates within the meaning of the Renewable Energy (Electricity) Act 2000 of the Commonwealth has not occurred, or that a standard of performance required for an adjustment has not been reached, the Regulator is to notify the affected electricity entity.

(4)  The Regulator is not to approve an adjustment unless he or she is satisfied that the adjustment has been calculated in accordance with the method of calculating that adjustment, or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment, specified in the declared electrical service price determination.

(5)  On approving or refusing to approve an adjustment, the Regulator is to notify the affected electricity entity.

36.   Revocation or amendment of declared electrical service price determination

(1)  The Regulator is to amend or revoke a declared electrical service price determination if an electricity entity to which the determination applies is materially adversely affected as a result of the making, amendment or revocation of a transmission revenue cap determination.

(2)  The Regulator may revoke or amend a declared electrical service price determination if he or she has determined –

(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 to which the determination applies is materially adversely affected by the determination as a result of an event which is beyond the electricity entity's control and was not taken into account in the terms of the determination; and

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

(3)  Before revoking or amending a declared electrical service price determination, the Regulator is to –

(a) invite submissions with respect to the matter within the reasonable period specified in the invitation; and

(b) consider any such submissions made to him or her.

(4)  The invitation referred to in subregulation (3) is to be –

(a) in writing; and

(b) provided to the Minister; and

(c) provided to each electricity entity providing the declared electrical service to which the declared electrical service price determination relates; and

(d) published in such daily Tasmanian newspapers as the Regulator considers appropriate.

(5)  Subject to these regulations, the Regulator may do anything he or she considers necessary or convenient for the purpose of determining whether or not to revoke or amend a declared electrical service price determination and, in this regard, regulation 25(3) , (4) and (5) and regulations 26 , 27 and 28 apply as if the Regulator were conducting a declared electrical service pricing investigation.

(6)  A determination revoking or amending a declared electrical service price determination –

(a) takes effect on the day specified in it; and

(b) is not a statutory rule within the meaning of the Rules Publication Act 1953 .

Division 4 - Costs

37.   Costs of investigations and reports

(1)  An electricity entity that provides a declared electrical service which is the subject of a declared electrical service pricing investigation is liable to recompense the Regulator for the whole or part of the reasonable expenses incurred by the Regulator arising from the conduct and reporting of that investigation (including expenses incurred in making the draft and final report available to the public) as determined by the Regulator by written notice provided to the electricity entity.

(2)  In making a determination under subregulation (1) of the amount of the recompense an electricity entity is liable to pay to the Regulator in respect of the reasonable expenses incurred by the Regulator arising from the conduct and reporting of an investigation relating to a declared electrical service, the Regulator is to fairly apportion the total of those reasonable expenses between all electricity entities involved with providing that declared electrical service.

(3)  The Regulator may recover in a court of competent jurisdiction, as a debt due and owing, an amount an electricity entity is liable to pay under subregulation (1) .

PART 3A - 2007 Retail Price Determination

37A.   Interpretation

[Regulation 37A Inserted by S.R. 2006, No. 68, Applied:05 Jul 2006] In this Part –

2003 declared electrical service price determination means the declared electrical service price determination –

(a) made in respect of the following declared electrical services:

(i) electricity retailing to tariff customers on mainland Tasmania;

(ii) electricity distribution on mainland Tasmania; and

(b) issued on 27 November 2003;

2007 retail price determination means the determination made by the Regulator under regulation 37C ;

cost to serve means the costs of providing retail services to tariff customers calculated by adjusting $76.67 by the Consumer Price Index for the period 30 June 2003 to 30 June 2006;

determination period means the 12-month period starting on 1 January 2007;

Hydro Tasmania means the Hydro-Electric Corporation continued under the Hydro-Electric Corporation Act 1995 ;

notional tariff base means the customers that are eligible for the supply of electricity under the tariffs listed in Schedule 1 regardless of whether those customers are supplied electricity under those tariffs;

retail margin means a margin of 3% on all costs attributable to the provision of electricity to the notional tariff base that is to be included in the retail price of electricity;

retail supply for tariff customers means the sale of electricity to the notional tariff base.

37B.   Interaction with Part 3

[Regulation 37B Inserted by S.R. 2006, No. 68, Applied:05 Jul 2006] The Regulator, in respect of the declared electrical service that is electricity retailing to tariff customers on mainland Tasmania –

(a) is not required to make a declared electrical service price determination that relates to the determination period; and

(b) is not required before the expiration of the 2003 declared electrical service price determination to conduct an investigation under Division 2 of Part 3 or to determine under regulation 23 whether or not the declaration of that declared electrical service should be revoked.

37C.   2007 retail price determination

[Regulation 37C Inserted by S.R. 2006, No. 68, Applied:05 Jul 2006]

(1)  The Regulator is to make a determination that regulates the prices that may be charged by, and specifies the price control mechanisms imposed on, an electricity entity during the determination period in respect of the declared electrical service that is electricity retailing to tariff customers on mainland Tasmania.

(2)  In making the 2007 retail price determination, the Regulator is to give effect to the following principles:

(a) the price for energy in the determination period is equal to the fixed price for electricity, within the meaning of the relevant vesting agreement, as at 1 January 2007;

(b) the determination is to allow for an adjustment, as a result of a tax event, to the prices that may be charged by, and the price control mechanisms imposed on, an electricity entity under the determination;

(c) the determination is to allow for an adjustment, to the prices that may be charged by, and the price control mechanisms imposed on, an electricity entity under the determination, as a result of a change in the costs to the electricity entity from the purchase of renewable energy certificates, within the meaning of the Renewable Energy (Electricity) Act 2000 of the Commonwealth;

(d) the determination is to allow for any charges by NEMMCO that are attributable to providing services to the notional tariff base, as calculated in accordance with a methodology approved by the Regulator;

(da) [Regulation 37C Subregulation (2) amended by S.R. 2006, No. 150, Applied:27 Dec 2006] the determination is to allow for any costs associated with the preparation for participation in, and the participation in, the National Electricity Market attributable to providing services to the notional tariff base, as calculated in accordance with a methodology approved by the Regulator;

(e) the determination is to allow for the cost of relevant distribution and transmission charges that are attributable to providing services to the notional tariff base, as calculated in accordance with a methodology approved by the Regulator;

(f) the determination is to allow for the cost to serve for each tariff customer in the determination period;

(g) the determination is to include an allowance for the retail margin;

(h) the maximum price for each component of a tariff is to not increase by more than the percentage change between –

(i) the average price for electricity calculated for the 2006 calendar year in accordance with the 2003 declared electrical service price determination; and

(ii) the average price for electricity calculated for the 2007 retail price determination.

(3)  The 2007 retail price determination is to specify –

(a) how the price that an electricity entity may charge in respect of the retail supply for tariff customers during the determination period is to be calculated; and

(b) any price control mechanisms imposed on an electricity entity in respect of the retail supply for tariff customers during the determination period; and

(c) in respect of the adjustments referred to in subregulation (2)(b) and (c)  –

(i) how those adjustments are to be calculated; or

(ii) the principles and the general manner to be applied in making or calculating those adjustments; and

(d) the date on which the determination takes effect and the date on which the determination ceases to have effect.

(4)  The Regulator does not need to conduct an investigation under Division 2 of Part 3 before making the 2007 retail price determination.

37D.   How 2007 retail price determination may be expressed

[Regulation 37D Inserted by S.R. 2006, No. 68, Applied:05 Jul 2006] The regulation of prices that may be charged, and the price control mechanisms, specified in the 2007 retail price determination may be expressed in that determination in any of the terms or manners specified in regulation 18 .

37E.   Adjustment of 2007 retail price determination

[Regulation 37E Inserted by S.R. 2006, No. 68, Applied:05 Jul 2006] A 2007 retail price determination may be adjusted under regulation 35 as if the 2007 retail price determination were a declared electrical service price determination.

37F.   Amendment or revocation of 2007 retail price determination

[Regulation 37F Inserted by S.R. 2006, No. 68, Applied:05 Jul 2006] The Regulator may amend or revoke a 2007 retail price determination under regulation 36 as if the 2007 retail price determination were a declared electrical service price determination.

PART 4 - Miscellaneous

38.   Offences

(1)  A person must not –

(a) fail to comply with a requirement made under regulation 8(1) or 27(1) ; or

(b) provide to the Regulator oral or written information or a document that the person knows or believes to be false or misleading in a material particular without informing the Regulator of that knowledge or belief; or

(c) hinder, obstruct or interfere with the Regulator, an Associate Regulator or any other person in the performance and exercise of his or her functions and powers under these regulations; or

(d) take, or threaten to take, any action that detrimentally affects the employment of another person because that person has assisted, is assisting or intends to assist the Regulator in an investigation under these regulations.

Penalty:  Fine not exceeding 100 penalty units.

(2)  Despite subregulation (1) , a natural person is not required to comply with a requirement made under regulation 8(1) or 27(1) if to do so would tend to incriminate him or her.

39.   Determinations of AER not reviewable

[Regulation 39 Amended by No. 78 of 2005, s. 44, Applied:15 Dec 2005] For the purposes of the definition of "reviewable decision" in section 3 of the Electricity Supply Industry Act 1995 , a direction, decision or determination made by the AER when performing or exercising functions or powers under the Act, these regulations or the Code that are conferred on it by section 16C of that Act is declared not to be reviewable.

40.   Associate Regulators

(1)  The Minister may appoint suitable persons as Associate Regulators to assist the Regulator in the performance and exercise of the Regulator's functions and powers under these regulations.

(2)  An Associate Regulator may, but need not, be a State Service officer or State Service employee.

(3)  In the performance and exercise of his or her functions and powers, an Associate Regulator is subject to the direction and control of the Regulator.

(4)  An Associate Regulator may be appointed for a stated term or for an indefinite term that continues while the person holds a stated office or position.

(5)  An Associate Regulator holds office on the conditions stated in the instrument of appointment.

(6)  An Associate Regulator may resign by written notice given to the Regulator.

(7)  An Associate Regulator may be removed from office by the Minister.

41.   Service of documents

A document is effectively provided, served or given to a person under these regulations if –

(a) in the case of a natural person, it is –

(i) given to the person; or

(ii) left at, or sent by post to, the person's postal or residential address or place or address of business employment last known to the server of the document; or

(iii) faxed to the person's fax number; or

(iv) emailed to the person's email address; or

(b) in the case of any other person, it is –

(i) left at, or sent by post to, the person's principal or registered office or principal place of business; or

(ii) faxed to the person's fax number; or

(iii) emailed to the person's email address.

42.   Transitional and savings provisions

(1)  In this regulation –

commencement day means the day on which the provisions of these regulations, other than regulation 44, take effect;

declaration of electrical service has the same meaning as in the Rescinded Regulations;

electrical service has the same meaning as in the Rescinded Regulations;

Rescinded Regulations means the Electricity Supply Industry (Price Control) Regulations 1998 as in force immediately before the commencement day.

(2)  A declaration of electrical service that, immediately before the commencement day, was in force is taken to be a declaration of declared electrical service made under regulation 19 .

(3)  If the Regulator gave notice before the commencement day of his or her intention to make a declaration of electrical service but, immediately before that day, has not determined whether or not to make that declaration –

(a) that notice is taken to have been given and published under regulation 19 ; and

(b) any submissions received in respect of that notice are taken to have been received under that regulation.

(4)  A revocation of a declaration of electrical service made under the Rescinded Regulations that has not taken effect before the commencement day is taken to have been made under regulation 21(2) and takes effect according to its terms.

(5)  An amendment to a declaration of electrical service made under the Rescinded Regulations that has not taken effect before the commencement day is taken to have been made under regulation 20 and takes effect according to its terms.

(6)  If the Regulator commenced an investigation into the pricing policies of an electricity entity in respect of an electrical service before the commencement day but has not made, immediately before that day, a draft report or a final report in respect of that investigation –

(a) that investigation is taken to have been commenced under regulation 23(1) or (6) and the Regulator may continue that investigation under these regulations; and

(b) a notice given in relation to that investigation under the Rescinded Regulations is taken to have been given under regulation 24 ; and

(c) any thing done by the Regulator or any other person for, or in connection with, the investigation before the commencement day is taken to have been done under these regulations; and

(d) these regulations apply in respect of the investigation on and after the commencement day.

44.    Electricity Supply Industry (Price Control) Regulations 1998 rescinded

The Electricity Supply Industry (Price Control) Regulations 1998 are rescinded.

SCHEDULE 1 - Tariffs

Definition of notional tariff base in regulation 37A

SCHEDULE 2 - Assumed Electricity Price

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

Notified in the Gazette on 18 June 2003

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