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Legislative Assembly for the ACT: 1997 Week 9 Hansard (4 September) . . Page.. 2887 ..

MR KAINE (continuing):

Administrative procedures set out in the code include dispute resolution procedures and, importantly, a process to change the code. We can expect that the code will be subject to ongoing change as the market evolves. Two points are important here: The code will change only following extensive consultation, and each change will be subject to the scrutiny of the Australian Competition and Consumer Commission. The ACCC will be the overall regulator of the market.

Part 3 of the National Electricity Law provides for the regulation of relevant activities in the market. These activities will be the ownership, control or operation of generation systems and transmission or distribution systems, the administration or operation of a wholesale market, and the purchase of electricity from a wholesale market. A person will be able to engage in such an activity only if the person is registered or authorised by the National Electricity Market Management Company to do so.

Part 4 of the National Electricity Law contains provisions governing the enforcement of the National Electricity Code. Part 5 creates a scheme for the review by a National Electricity Tribunal of decisions by NEMMCO and NECA. The tribunal's jurisdiction and powers to deal with breaches of the code and the procedures to be followed in proceedings before the tribunal are described. Part 5 also describes the process of appointing the members of the tribunal and the terms of their appointment. Appeals from decisions of the tribunal may be made to the Supreme Court.

Part 6 provides for the establishment of statutory funds by NEMMCO and NECA. NEMMCO's and NECA's funds cover, respectively, the receipt and payment of moneys incurred through the management of the market, and the receipt and payment of civil penalties imposed under the code. Part 7 of the National Electricity Law provides for the issue of search warrants in limited circumstances and for NEMMCO to have certain powers of intervention in respect of the power system for reasons of public safety or security of the system; in other words, in a state of crisis. A provision of this Part also governs liability for failures of electricity supply. Under the provision, a code participant will not be liable for failure to supply electricity unless the failure is due to an act or omission by the code participant in bad faith or the negligence of the code participant. This rule may be modified by contract. For the information of members, I am tabling a copy of the National Electricity (South Australia) Act 1996, which incorporates the law.

I now turn back to the National Electricity Code. The code is now being examined by the Australian Competition and Consumer Commission. Because the code sets out details for the conduct of the electricity industry, the commission needs to agree that any restraint on competition - an example is forcing trade through a central pool - is justified in terms of public benefit. Because the code sets up a regime under which many suppliers have access to one set of wires to deliver their goods, the commission must also approve the code as an access regime under the Trade Practices Act. The code was developed following a massive process of policy development and consultation which started in the early 1990s. This involved governments and the existing State and Territory power businesses. Also involved were private sector players in the power industry and other energy providers. So were peak industry bodies, representatives of large customers, consumer organisations and a variety of environmental bodies. Its provisions have been the subject of expert consultancies and legal scrutiny.

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