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Legislative Assembly for the ACT: 2000 Week 1 Hansard (17 February) . . Page.. 224 ..

MR HUMPHRIES (continuing):

I am pleased to present the Utilities Bill 2000, which deals with the regulation of electricity, gas, water and sewerage services. The Government has consistently stated its commitment to consult on the package, and this still stands. Community input is necessary to ensure the regulation of these essential services delivers benefits to the entire community.

The statement of regulatory intent which this Government presented to the Assembly in 1998 described deficiencies in the current regulatory framework and highlighted matters that needed to be addressed under the new framework. The statement was released for public comment and the Government has taken into account the views raised by community and business groups. Whilst the initial focus was on developing a regulatory framework for electricity, water and sewerage industries, the Government gave a clear statement that natural gas would be brought into the regime at the earliest opportunity. Indeed, the Utilities Bill provides for the regulation of gas as well.

The Utilities Bill is the main component of a landmark reform package that will replace eight existing Acts, amend 17 others and subsume a range of regulations. The framework flows from provisions contained in the principal legislation, supported by operating licences, codes of practice and consumer contracts. In recognising the importance to both consumers and utilities of a stable and predictable regulatory environment, the Government will be inviting further public comment on the latest drafts of the utility service licence, benchmark consumer contract, consumer protection code and codes of practice.

The new regime will apply to all utilities operating in the ACT, whether publicly or privately owned or operated. It is based on relevant utilities being required to have an operating licence for the specific utility services that they provide, such as energy retailing and distribution, water supply and sewerage services. The licences will contain a range of specific considerations with which the utility must comply. Some of these conditions are embodied in detailed codes, such as the consumer protection code. The Bill contains a graduated range of penalties for non-compliance, ranging from notification of breaches and including possible fines, including daily penalties for breaches, to revocation of licences in extreme circumstances.

Essentially, the provisions in the Bill will establish the general basis of the regulatory structure, including a licensing regime for each industry; set out the broad objectives for the regulation of utilities; enable the responsible Minister to issue directions on licence conditions or codes of practice which will be disallowable by the Legislative Assembly; authorise codes governing specific areas of operation, such as disconnection procedures, consumer protection, safety and technical standards - these codes will be enforceable as licence conditions, subject to amendment either by ministerial direction or by the Independent Competition and Regulatory Commission, after consultation with industry; make customer contracts enforceable and subject to minimum terms and conditions - these contracts may be varied as agreed by the customer and the utility, subject to the normal statutory restrictions, for example, in fair trading legislation; and require utilities to provide community service obligations at an agreed price.

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