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Legislative Assembly for the ACT: 1997 Week 10 Hansard (25 September) . . Page.. 3451 ..

4.

business, as with Great Southern's or the business of any of the Victorian providers, falls into two parts: operating a distribution system for electricity - a wires or "transportation" system - and retailing of electricity.

The scheme being adopted Australia-wide is that there will be vigorous competition in retailing. The retailers will "transport" their power, to use a layperson's expression, through the existing wires networks. Unlike the telecommunications debacle, the electricity reform framework does not envisage duplicating any existing networks. Because "transportation" will remain a monopoly function, charges for the use of the wires will be regulated permanently.

The second point that I would like to highlight before commenting on the detailed provisions of the legislation, is that a conscious attempt has been made to mirror the NSW regulatory regime in our legislation to the maximum extent sensible.

There are several compelling reasons for adopting this approach.

ACTEW's distribution system is an integral part of the overall NSW power system. Power to the Territory comes via transmission lines under the control of NSW and regulated, at present, by NSW legislation. For its energy purchasing, ACTEW is participating in the NSW wholesale electricity market. Until the National Electricity Market starts, there is no option but for other retailers to buy their ACT power under the same arrangements.

The NSW regulatory framework is up-to-date, passed by the NSW Parliament in 1995. It was specifically designed to address the transition to retail competition in that state and to complement the future National Electricity Market. The NSW framework recognises that retail competition is a tool towards innovation in environmental protection and customer service. It is a

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