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Legislative Assembly for the ACT: 1997 Week 10 Hansard (25 September) . . Page.. 3452 ..

5.

regulatory framework that is now well understood by retailers and by large businesses.

Adoption of a regulatory scheme similar to that in NSW will also avoid the possibility of perceived barriers to entry in the small ACT market. It will reduce regulatory compliance costs for retailers that would otherwise need to be factored into ACT customers' energy bills. It also goes some way to addressing the concern expressed by the Australian Competition and Consumer Commission about development of inconsistent electricity retail schemes in different states - inconsistencies which the Commission has identified as undesirable and possible barriers to competition.

I now turn to specific features of the Bill.

The first is distributor licensing. As I have noted, there is no intention to introduce competition into the distribution sector at this stage. ACTEW's status as the owner of a distribution system, therefore, will not change.

The Bill does not purport to provide a full regulatory framework for distributors. The provisions introduced in this Bill are basically those provisions of the NSW framework necessary to facilitate retail competition.

The Bill introduces an explicit right for customers to be connected to the distribution network. It introduces distributor licences and requires that a licensed distributor convey electricity for licensed retailers only.

In relation to retailer licensing, ACTEW, together with its subsidiary ACTEW Energy, will be deemed to hold a retailer licence in the ACT. This arrangement is consistent with the practice adopted in NSW and Victoria.

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