Western Australian Bills

[Index] [Search] [Download] [Related Items] [Help]


This is a Bill, not an Act. For current law, see the Acts databases.


ENERGY COORDINATION AMENDMENT BILL 1997

                    WESTERN AUSTRALIA


                  LEGISLATIVE ASSEMBLY




        ENERGY COORDINATION
         AMENDMENT BILL 1997
                         A BILL FOR



AN ACT to amend the Energy Coordination Act 1994 to
   make provision for a scheme for licensing the supply
   of gas in certain areas of the State, to make
   consequential amendments to other Acts, and for
   related purposes.



The Parliament of Western Australia enacts as follows:



Short title

1. This Act may be        cited   as   the   Energy   Coordination
Amendment Act 1997.




                          No. 11 -- 1
                      Energy Coordination Amendment Bill 1997
cl. 2


        Commencement

        2. This Act comes into operation on such day as is fixed by
        proclamation.

        Principal Act

 5      3. In this Act the Energy Coordination Act 1994* is referred to
        as the principal Act.

             [* Act No. 71 of 1994.]

        Long title amended

        4.    The long title to the principal Act is amended --

10             (a)   by inserting       after    ''to   provide   for -- ''   the
                     following --

                     ''
                               a scheme for licensing the supply of
                               gas in certain areas of the State;
15                                                                              '';
                     and

               (b)   by inserting after ''energy policy'' the following --

                     '' , to administer the licensing scheme ''.


        Section 3 amended

20      5.    Section 3 of the principal Act is amended --

               (a)   by inserting in the appropriate alphabetical positions
                     the following definitions --
                     ''
                          ''distribution licence'' means a licence having
25                              the classification referred to in section 11D
                                (1) (b);

                                             2
     Energy Coordination Amendment Bill 1997
                                                               cl. 5


       ''distribution system'' means --

               (a)   a system of pipelines, mains and gas
                     service pipes, designed to operate at a
                     pressure of less than 1.9 megapascals,
5                    for the transportation of gas to
                     customers from the flange, joint or
                     other point at which the system
                     connects to a transmission system;
                     and

10             (b)   any associated apparatus, facilities,
                     structures, plant or equipment;

       ''Gas Corporation'' means the body established
            by section 4 of the Gas Corporation
            Act 1994;

15     ''gas     distribution capacity'' means the
               capacity of a licensee's distribution system
               to transport gas;

       ''gas     transmission capacity'' means the
               capacity of a licensee's transmission system
20             to transport gas;

       ''Land Acquisition Act'' means the provisions
            of the Land Acquisition and Public Works
            Act 1902 relating to compulsory taking of
            land or the provisions of any other Act that
25          replace those provisions;

       ''licence'' means a licence granted for the
             purposes of section 11I;




                            3
                     Energy Coordination Amendment Bill 1997
cl. 6


                       ''licensee'' means the holder of a licence and
                             any transferee of the licence under
                             section 11S;

                       ''supply'', in relation         to   gas,    means
 5                          transportation or sale;

                       ''supply area'' means an area for the time being
                            constituted as such under section 11A;

                       ''transmission system'' means a system of
                             pipelines, designed to operate at a pressure
10                           of 1.9 megapascals or more, for the
                             transportation of gas to a distribution
                             system, or to customers, from generating
                             works (as defined in the Energy
                             Corporations (Powers) Act 1979) within the
15                           limits of the State.
                                                                            '';

                     and

               (b)   by deleting the full stop at the end of the definition of
                     ''inspector'' and substituting a semicolon.


20      Section 6 amended

        6. Section 6 of the principal Act is amended by inserting after
        paragraph (a) the following paragraph --

        ''
             (aa) to administer the licensing scheme provided for by
25                Part 2A;
                                                                            ''.




                                           4
                     Energy Coordination Amendment Bill 1997
                                                                          cl. 7


     Part 2A inserted

     7. After Part 2 of the principal Act the following Part is
     inserted --

     ''
 5              PART 2A -- LICENSING OF GAS SUPPLY

                           Division 1 -- Supply areas


          Constitution of supply areas

          11A. (1)      The Governor may by order published in the
          Gazette --

10             (a)     constitute an area as a supply area;

               (b)     add an area to, or excise an area from, a supply
                       area; or

               (c)     cancel the status of an area as a supply area.

             (2) An order is not to be made under subsection (1)
15        excising an area from a supply area or cancelling the status
          of an area as a supply area unless the Governor is satisfied
          that the supply of gas provided in the area in question will,
          after the excision or cancellation, continue to be of an
          acceptable standard.

20           (3) Section 42 of the Interpretation Act 1984 applies to
          an order under subsection (1) as if the order were a
          regulation.


          Areas need not be continuous

          11B. A supply area may be one continuous area or be
25        made up of 2 or more separate areas.


                                         5
                     Energy Coordination Amendment Bill 1997
cl. 7


        Consultation

        11C. Where it is proposed that an order be made under
        section 11A, the Minister must, before the order is made,
        consult with any licensee who will be materially affected by
 5      the proposed order.


               Division 2 -- Licence classification and area
                               of operation


        Classification of licences

        11D.     (1)     Licences are classified as follows --

10             (a)     transmission, which authorizes the licensee to
                       transport gas through the licensee's transmission
                       system;

               (b)     distribution, which authorizes the licensee --

                       (i)    to construct a distribution system and to
15                            transport gas through the system; or

                       (ii)   to transport gas through an existing
                              distribution system, and if required for that
                              purpose to make alterations to the system,

                       and to operate and maintain the system; or

20             (c)     trading, which authorizes the licensee to sell gas
                       transported through a transmission or
                       distribution system.

           (2) A licence is to be designated by reference to one of
        the classifications referred to in subsection (1).




                                           6
                   Energy Coordination Amendment Bill 1997
                                                                         cl. 7


     Area to which licence applies

     11E.      A licence is to be designated to apply to --

             (a)     one or more supply areas; or

             (b)     one or more parts of a supply area,

 5   specified in the licence.


                    Division 3 -- Licensing requirements


     Licensing extends to statutory providers

     11F. The requirements of this Division apply to a person
     despite the fact that the person, in supplying gas, is
10   performing a function that --

             (a)     is authorized or provided for by or under a
                     written law; or

             (b)     has been approved under a written law.


     Application of            Division    to   supply     of   liquid
15   petroleum gas

     11G. (1) The requirements of this Division apply in
     relation to the supply of liquid petroleum gas only to the
     extent that such gas is supplied through a transmission or
     distribution system in a supply area.

20     (2)     In subsection (1) --

             ''liquid petroleum gas'' has the same meaning as in
                   the Liquid Petroleum Gas Act 1956.



                                       7
                   Energy Coordination Amendment Bill 1997
cl. 7


        Relationship with Petroleum Pipelines Act 1969

        11H. Despite anything in the Petroleum Pipelines
        Act 1969, that Act does not apply in relation to --

             (a)     the transportation of gas through a transmission
 5                   system in a supply area; or

             (b)     the construction and operation of, or the
                     transportation of gas through, a distribution
                     system in a supply area.


        Requirement for licence

10      11I. A person must not supply gas in a supply area or
        part of a supply area except under the authority of a licence
        granted by the Coordinator that applies to that area or that
        part of the area.

          Penalty:     $100 000 and a daily penalty of $5 000.


15      Power to exempt

        11J. (1) The Governor may by order published in the
        Gazette provide for exemptions from section 11I.

           (2) Section 43 (4) and (7) to (9) of the Interpretation
        Act 1984 apply to an order under subsection (1) as if the
20      order were subsidiary legislation.


        Transitional provision

        11K. (1) This section applies to every person (an
        ''existing operator'') that immediately before the
        commencement of section 7 of the Energy Coordination
25      Amendment Act 1997 (''the commencement'') is


                                       8
                Energy Coordination Amendment Bill 1997
                                                                             cl. 7


     undertaking any activity that, after the commencement, is
     required to be licensed under section 11I.

        (2) An existing operator that wishes to apply for a
     licence in respect of an activity referred to in subsection (1)
 5   must do so within 4 months after the commencement.

       (3) An existing operator is to be treated as if the
     person were the holder of the relevant licence --

          (a)     until the expiry        of   12   months   after     the
                  commencement; or

10        (b)     until --

                  (i)    a licence of that kind is granted to the
                         person or is refused; and

                  (ii)   in the case of a refusal, the time for appeal
                         against the refusal under section 11ZI
15                       expires without an appeal being brought or
                         an appeal is brought but is unsuccessful,

     whichever happens first.

       (4) For the purposes of paragraph (b)                    (ii)    of
     subsection (3) an appeal is unsuccessful if it --

20        (a)     results in the refusal             referred to in
                  paragraph (b) (i) of that          subsection being
                  confirmed; or

          (b)     is withdrawn, discontinued or dismissed.

        (5) If a licence is granted to an existing operator, the
25   Coordinator may waive payment of the licence fee under
     section 11R on such terms and conditions as are determined
     by the Coordinator.



                                      9
                     Energy Coordination Amendment Bill 1997
cl. 7


           (6) Without limiting subsection (5), the terms and
        conditions may provide that the waiver is to apply for the
        term of the licence or for a lesser period.


               Division 4 -- Licence application, grant, etc.


 5      Application for licence

        11L.     (1)    An application for a licence is to be --

               (a)     made in a form approved by the Coordinator;
                       and

               (b)     accompanied by the prescribed application fee.

10         (2) Without limiting subsection (1) (a), an applicant for
        a licence is to inform the Coordinator of --

               (a)     the nature of the business activities undertaken
                       or to be undertaken by the applicant;

               (b)     where, if a licence is granted, the applicant will
15                     have power to determine its prices or charges,
                       the methods or principles that the applicant
                       proposes to apply in doing so;

               (c)     the methods or standards that the applicant
                       proposes to apply in supplying gas;

20             (d)     where, if a licence is granted, the applicant will
                       be required to provide access to gas distribution
                       capacity or gas transmission capacity to other
                       persons, the methods or principles that the
                       applicant proposes to apply in determining the
25                     terms and conditions on which such access will
                       be provided;



                                         10
                Energy Coordination Amendment Bill 1997
                                                                        cl. 7


          (e)     in the case of an application for a distribution
                  licence, the nature and extent of the
                  construction, alteration, operation or
                  maintenance of a distribution system undertaken
 5                or to be undertaken to supply gas; and

          (f)     the terms and conditions of any proposed
                  standard customer contract between the
                  applicant and any purchaser of gas from the
                  applicant.

10      (3) The applicant must also provide such other
     information (including information as to surveys carried
     out) as the Coordinator may require for the proper
     consideration of the application.


     Matters to be considered by Coordinator

15   11M. The Coordinator is not to grant or renew a licence
     unless he or she is satisfied that --

          (a)     the applicant for the licence or its renewal has,
                  and is likely to continue to have, the financial
                  and technical ability --

20                (i)    to supply gas in the supply area or areas to
                         which the licence is to apply; and

                  (ii)   in the case of an application for a
                         distribution licence, to operate and
                         maintain a distribution system and, where
25                       relevant, to construct or make alterations
                         to a distribution system;

                  and

          (b)     it is in the interest of the public within the
                  supply area or areas to which the licence is to
30                apply to grant or renew the licence.


                                     11
                   Energy Coordination Amendment Bill 1997
cl. 7


        Terms and conditions of licence

        11N. (1) A licence is subject to such terms and
        conditions as are determined by the Coordinator.

           (2) Without limiting subsection (1), the terms and
 5      conditions may include provisions relating to any matter
        provided for by Schedule 1.

           (3) Despite subsections (1) and (2), conditions relating
        to any matter referred to in paragraph (e), (f), (k) (i) or (iii)
        or (n) of Schedule 1 cannot be included in a licence granted
10      to the Gas Corporation.

           (4) A requirement made under paragraph (d) of
        Schedule 1 in a licence granted to the Gas Corporation
        must not be inconsistent with any enactment that regulates
        the financial administration of that corporation.

15         (5) The terms and conditions of a licence must not be
        inconsistent with regulations made under section 15 of the
        Gas Standards Act 1972.

           (6) In this section a reference to the Gas Corporation
        includes any subsidiary of that corporation within the
20      meaning of the Gas Corporation Act 1994.


        Coordinator may grant more than one licence for
        supply area

        11O. (1) The Coordinator may grant in respect of a
        supply area or part of a supply area more than one licence
25      of a particular classification.

          (2)     In subsection (1) --

                ''classification'' means a classification referred to in
                      section 11D (1).



                                        12
                  Energy Coordination Amendment Bill 1997
                                                                         cl. 7


     Duration of licence

     11P. A licence may be granted or renewed for such period
     as the Coordinator thinks fit, but the period cannot exceed
     10 years from the day of grant or renewal of the licence.


 5   Renewal of licence

     11Q.     An application for the renewal of a licence is to
     be --

            (a)     made in a form approved by the Coordinator;
                    and

10          (b)     accompanied by the prescribed application fee.


     Licence fee

     11R. (1) A licensee must pay to the Coordinator the
     prescribed licence fee --

            (a)     within one month from the day of grant or
15                  renewal of the licence; and

            (b)     within one month from each anniversary of that
                    day during the term of the licence.

        (2) Regulations made under section 26 may prescribe a
     different licence fee for each of the classifications referred to
20   in section 11D (1).

        (3) If the Coordinator is satisfied that payment of the
     prescribed licence fee would make it uneconomic for a
     licensee to supply gas as authorized by a licence, the
     Coordinator may reduce the amount of the fee payable by
25   the licensee on such terms and conditions as are determined
     by the Coordinator.


                                     13
                      Energy Coordination Amendment Bill 1997
cl. 7


           (4) Without limiting subsection (3), the terms and
        conditions may provide that the reduction is to apply for the
        term of the licence or for a lesser period.

           (5) The Coordinator may recover any outstanding
 5      licence fee in a court of competent jurisdiction as a debt due
        by the licensee to the Crown.


        Transfer of licence

        11S. (1) A licence cannot be transferred except with the
        approval of the Coordinator.

10         (2) Approval for the purposes of subsection (1) may be
        given on such terms and conditions as are determined by
        the Coordinator.

           (3) An application for approval to transfer a licence is
        to be --

15              (a)     made in a form approved by the Coordinator;
                        and

                (b)     accompanied by the prescribed application fee.


        Gazettal

        11T. (1) The Coordinator must ensure that notice of the
20      grant, renewal or transfer of a licence is published in the
        Gazette as soon as is practicable after the grant, renewal or
        transfer.

          (2)         The notice is to include --

                (a)     the name and business address of the licensee;

25              (b)     the term of the licence;


                                          14
                Energy Coordination Amendment Bill 1997
                                                                        cl. 7


          (c)     the supply area or areas, or the part or parts of a
                  supply area, to which the licence applies; and

          (d)     the place where a copy of the licence and any
                  plan may be inspected under section 11U.


5    Licences to be available for inspection

     11U. The Coordinator is to make available at the
     Coordinator's office for inspection by members of the public
     during normal office hours --

          (a)     a copy of every licence, as in force from time to
10                time; and

          (b)     if any supply area or part of a supply area to
                  which a licence applies is specified by reference
                  to a plan, a copy of the plan.


     Other laws not affected

15   11V. The grant, renewal or transfer of a licence does not
     affect the licensee's obligations to comply with any other
     written law in relation to the matters covered by the
     licence.


     Amendment of licence

20   11W. (1) The Coordinator may determine that a licence
     is to be amended.

        (2) If the licence specifies a procedure to be followed in
     making such a determination, the determination may only
     be made in accordance with that procedure.




                                    15
                   Energy Coordination Amendment Bill 1997
cl. 7


           (3) An amendment cannot take effect until it is notified
        to the licensee under subsection (4) or under the procedure
        referred to in subsection (2).

          (4) If a licence is amended under this section the
 5      Coordinator must --

             (a)     if subsection (2) does not apply, notify the
                     licensee of the amendment; and

             (b)     ensure that notice is published in the Gazette
                     indicating the nature of the amendment and the
10                   place where a copy of the licence may be
                     inspected under section 11U.

           (5) This section applies to the substitution of a new
        licence for an existing licence in the same way as it applies
        to the amendment of a licence.


15                        Division 5 -- Duty to supply


        General duty to supply

        11X. (1) It is a condition of every licence that, subject to
        section 11Y, the licensee is to --

             (a)     supply gas as provided for; and

20           (b)     in the case of a distribution licence, operate and
                     maintain, and, where relevant, construct or
                     make alterations to, the distribution system as
                     specified,

        in the licence.

25        (2) In respect of any licence granted to the Gas
        Corporation, subsection (1) does not affect the protection


                                       16
              Energy Coordination Amendment Bill 1997
                                                                       cl. 7


     given to that corporation by section 28 (4) of the
     Gas Corporation Act 1994.

       (3) The Governor may by order published in the
     Gazette provide for exemptions from subsection (1).

 5      (4) Section 43 (4) and (7) to (9) of the Interpretation
     Act 1984 apply to an order under subsection (3) as if the
     order were subsidiary legislation.


     Interruption etc. of supply

     11Y. (1) A licensee may interrupt, suspend or restrict
10   the supply of gas provided by the licensee if in the licensee's
     opinion it is necessary to do so because of an accident,
     emergency, potential danger or other unavoidable cause.

        (2) A licensee is not liable for any loss or damage that
     arises from any such interruption, suspension or restriction
15   except to the extent that an agreement to which the
     licensee is a party provides otherwise.

        (3) A licensee must take reasonable steps to minimize
     the extent or duration of any such interruption, suspension
     or restriction.

20      (4) This section is in addition to the provisions of
     section 48 of the Energy Corporations (Powers) Act 1979 if
     those provisions apply to a licensee by operation of
     regulations made for the purposes of section 11ZQ and does
     not limit those provisions.




                                   17
                   Energy Coordination Amendment Bill 1997
cl. 7


            Division 6 -- Other duties included in licences


        Asset management system

        11Z. (1) It is a condition of every distribution licence
        that the licensee is to --

 5           (a)     provide for an asset management system in
                     respect of the licensee's assets;

             (b)     notify details of the system and any substantial
                     changes to it to the Coordinator; and

             (c)     not less than once in every period of 24 months
10                   (or such longer period as the Coordinator allows)
                     calculated from the grant of the licence, provide
                     the Coordinator with a report by an independent
                     expert acceptable to the Coordinator as to the
                     effectiveness of the system.

15         (2) An asset management system is to set out the
        measures to be taken by the licensee for the proper
        maintenance of assets used in the supply of gas and in the
        operation and maintenance of, and, where relevant, the
        construction or alteration of, the distribution system.


20      Compliance with technical standards

        11ZA. It is a condition of every licence that the licensee is
        to comply with the standards prescribed under the
        Gas Standards Act 1972 and, where applicable, the
        Liquid Petroleum Gas Act 1956 in relation to the supply of
25      gas.




                                      18
                Energy Coordination Amendment Bill 1997
                                                                      cl. 7


     Performance audit

     11ZB. (1) It is a condition of every licence that the
     licensee is to, not less than once in every period of
     24 months (or such longer period as the Coordinator allows)
 5   calculated from the grant of the licence, provide the
     Coordinator with a performance audit conducted by an
     independent expert acceptable to the Coordinator.

        (2) A performance audit is an audit of the effectiveness
     of measures taken by the licensee to meet --

10        (a)     the standards referred to in section 11ZA; and

          (b)     performance criteria specified in the licence.

        (3) The Coordinator is to present to the Minister a
     report on each performance audit within 2 months after his
     or her receipt of the audit.


15                     Division 7 -- Enforcement


     Failure to comply with licence

     11ZC. (1) If, in the opinion of the Minister, a licensee
     contravenes a licence, the Minister may cause a notice to be
     served on the licensee requiring the licensee to rectify the
20   contravention within a specified period.

        (2) If, in the opinion of the Minister, a licensee fails to
     comply with a notice under subsection (1), the Minister
     may, subject to section 11ZD, do one or more of the
     following --

25        (a)     serve a letter of reprimand on the licensee;




                                    19
                      Energy Coordination Amendment Bill 1997
cl. 7


                (b)     order the licensee to pay a monetary penalty
                        fixed by the Minister but not exceeding
                        $100 000;

                (c)     cause the contravention to be rectified to the
 5                      satisfaction of the Minister.

           (3) Persons authorized by the Minister may enter any
        premises and do all things that are necessary for the
        purposes of subsection (2) (c).

          (4)         The Minister may recover --

10              (a)     a penalty imposed under subsection (2) (b); or

                (b)     the costs and expenses of any action taken under
                        subsection (2) (c),

        in a court of competent jurisdiction as a debt due by the
        licensee to the Crown.


15      Right of licensee to make submissions

        11ZD. The Minister is not to take any action under
        section 11ZC (2) (b) or (c) unless he or she has notified the
        licensee of the proposed action and given the licensee a
        reasonable opportunity to make submissions on the matter.


20      Exception where public health endangered

        11ZE. If, in the opinion of the Minister, the health or
        safety of members of the public is or may be at risk as a
        result of the contravention of a licence, the Minister may
        cause the contravention to be rectified under
25      section 11ZC (2) (c) without --
                (a)     serving notice on        the   licensee    under
                        section 11ZC (1); or
                (b)     complying with section 11ZD.

                                          20
                Energy Coordination Amendment Bill 1997
                                                                       cl. 7


     Cancellation of licence

     11ZF. (1) The Governor may cancel a licence if he or
     she is satisfied that the licensee --

          (a)     has failed to comply with the condition imposed
 5                by section 11X or is otherwise in default as
                  defined in subsection (2);

          (b)     has failed to pay a licence fee as required under
                  section 11R;

          (c)     in the case of a company, is an externally
10                administered corporation within the meaning of
                  the Corporations Law; or

          (d)     has within a period of 24 months been convicted
                  of more than 3 offences for which the prescribed
                  punishment is a fine of $10 000 or more or
15                imprisonment for 12 months or more.

        (2) For the purposes of subsection (1) (a) a licensee is
     in default if the Governor is satisfied that --

          (a)     the licensee has failed to comply with a term or
                  condition of the licence, other than that imposed
20                by section 11X;

          (b)     the failure is material in terms of the operation
                  of the licence as a whole;

          (c)     the Minister has given to the licensee written
                  notice of the failure and the fact that in the
25                Minister's opinion paragraph (b) applies to it;
                  and

          (d)     the licensee has not, within the time specified in
                  the notice, either remedied the failure or shown
                  cause why the licence should not be cancelled.


                                    21
                   Energy Coordination Amendment Bill 1997
cl. 7


          (3) If a licence is cancelled under this section the
        Coordinator must ensure that notice of the cancellation is
        published in the Gazette.

           (4) Regulations may be made under section 26
 5      providing, in the event of a licence being cancelled, for --

             (a)     the vesting of assets, rights and interests of the
                     former licensee in a person (including the
                     Minister as a corporation) for the purpose of
                     enabling gas to be supplied after the
10                   cancellation;

             (b)     the conferral of powers and duties for that
                     purpose;

             (c)     the discharge or assignment of liabilities;

             (d)     the disposal of property; and

15           (e)     all matters that are necessary or convenient for
                     dealing with the consequences of the cancellation
                     and the vesting referred to in paragraph (a).


        Duty to leave system in safe condition

        11ZG. (1) On the cancellation of a licence under
20      section 11ZF, the former licensee is to ensure that any
        distribution system constructed or operated by the former
        licensee under the licence is left in a safe condition.

           (2) If, in the opinion of the Minister, a former licensee
        contravenes subsection (1), the Minister may cause the
25      contravention to be rectified to the satisfaction of the
        Minister.

           (3) Persons authorized by the Minister may enter any
        premises and do all things that are necessary for the
        purposes of subsection (2).

                                       22
                Energy Coordination Amendment Bill 1997
                                                                       cl. 7


        (4) The Minister may recover the costs and expenses of
     any action taken under subsection (2) in a court of
     competent jurisdiction as a debt due by the former licensee
     to the Crown.


 5   Minister to be informed

     11ZH.      The Coordinator is to --

          (a)     monitor and report to the Minister on compliance
                  by licensees with their licences;

          (b)     inform the Minister about any failure by a
10                licensee to meet performance criteria or other
                  requirements of the licence; and

          (c)     provide advice to the Minister for the purposes of
                  section 11ZC.


                          Division 8 -- Appeal


15   Appeal against Coordinator's decision

     11ZI. (1) A person who is aggrieved by a decision of the
     Coordinator --

          (a)     to refuse to grant or renew a licence;

          (b)     to refuse to approve the transfer of a licence;

20        (c)     as to the length of the period for which a licence
                  is granted or renewed;

          (d)     as to any term or condition of a licence; or




                                    23
                      Energy Coordination Amendment Bill 1997
cl. 7


                (e)     to amend a licence under section 11W,

        may appeal to the Minister against the decision within
        30 days after receiving notice in writing of the decision from
        the Coordinator.

 5        (2) Within 60 days of an appeal being brought, the
        Minister is to refer the appeal to one or more suitably
        qualified persons appointed by him or her to examine, and
        advise the Minister on, the matter.

          (3)         The person or persons so appointed must --

10              (a)     give the appellant an opportunity to be heard on
                        the matter; and

                (b)     advise the Minister on the matter within 60 days
                        after the referral of the appeal under
                        subsection (2).

15        (4) The Minister, after considering the advice given
        under subsection (3), must confirm, vary or reverse the
        decision within 30 days after receiving that advice.

           (5) If an appeal against a decision is brought under
        this section the decision is to continue to have effect
20      pending the appeal, unless the Minister otherwise directs.


                      Division 9 -- Powers in relation to land


        When this Division applies

        11ZJ. The powers conferred by this Division may only be
        exercised in relation to a distribution licence.




                                         24
                Energy Coordination Amendment Bill 1997
                                                                          cl. 7


     Grant of easements over Crown land

     11ZK. The Minister responsible for the administration of
     the Land Act 1933 may exercise the power conferred by
     section 134B of that Act to grant an easement to a licensee
 5   as if the construction, alteration, operation or maintenance
     of a distribution system under the licence were a purpose to
     which subsection (1) (b) of that section referred.


     Power of public authority to grant easements etc.

     11ZL. (1) A public authority may grant to a licensee, on
10   such terms and conditions as are agreed between the
     authority and the licensee, a relevant interest in respect of
     land held by the public authority in fee simple.

       (2) This         section   has    effect   despite   any   other
     written law.

15     (3)     In this section --

             ''public authority'' means --

                  (a)    a Minister of the Crown;

                  (b)    an agency, authority or instrumentality of
                         the Crown in right of the State or a local
20                       government; or

                  (c)    a body, whether corporate or unincorporate,
                         that is established or continued for a public
                         purpose by or under a written law and
                         prescribed for the purposes of this
25                       definition;

             ''relevant interest'' means a lease, easement, licence
                   or other authority necessary or expedient to
                   enable the licensee to construct, alter, operate or
                   maintain a distribution system.

                                        25
                   Energy Coordination Amendment Bill 1997
cl. 7


        Taking of interest or easement for purposes of licence

        11ZM. (1) For the purpose of enabling a licensee to
        supply gas as authorized by a licence, an interest in land or
        easement over land may be taken under the Land
 5      Acquisition Act as if for a public work within the meaning
        of that Act.

           (2) The power conferred by subsection (1) may only be
        exercised on the recommendation of the Minister
        responsible for the administration of this Act.

10         (3) Any costs and expenses incurred in the taking of an
        interest or easement under subsection (1) --

             (a)     are to be paid by the licensee; and

             (b)     may be recovered in a court of competent
                     jurisdiction as a debt due by the licensee to the
15                   Crown.

           (4) For the purposes of subsection (1) a reference to
        land in the Land Acquisition Act includes an interest in
        land or easement over land.


        Vesting of interest or easement

20      11ZN. (1) Despite anything in the Land Acquisition Act,
        on the taking of an interest in land or easement over land
        under section 11ZM, the interest or easement vests in the
        licensee.

           (2) The Land Acquisition Act applies, with all
25      necessary changes, in relation to the recording or
        registering of the interest or easement taken under
        section 11ZM.




                                       26
                Energy Coordination Amendment Bill 1997
                                                                     cl. 7


     Proceedings and liability

     11ZO. (1) Proceedings in respect of compensation, or
     otherwise for the purpose of complying with the Land
     Acquisition Act, are to be taken against the licensee.

 5      (2) The licensee is liable in respect of the taking of an
     interest in land or easement over land under section 11ZM
     to the same extent as the Minister responsible for the
     administration of the Land Acquisition Act would have been
     liable if the taking had been for the purpose of a public
10   work.


     Easements in gross

     11ZP. An easement may be taken under section 11ZM
     without there being a dominant tenement and there may be
     made appurtenant or annexed to any such easement
15   another easement or the benefit of a restriction as to the
     user of the land.


        Division 10 -- Extension of Energy Corporations
                 (Powers) Act 1979 to licensees


     Regulations extending certain provisions of Energy
20   Corporations (Powers) Act 1979

     11ZQ. (1) A reference to a corporation in a provision of
     the Energy Corporations (Powers) Act 1979 referred to in
     Schedule 2 includes a licensee if that licensee --

          (a)     is prescribed by regulations made under
25                section 26 for the purposes of that Schedule; or

          (b)     belongs to a class of licensees that is so
                  prescribed.


                                   27
                   Energy Coordination Amendment Bill 1997
cl. 7


           (2) The prescription of a licensee under
        subsection (1) (a) includes any transferee of the relevant
        licence under section 11S.

          (3) Regulations referred to in subsection (1) may be
 5      made in terms that --

             (a)     modify the operation of, add a further
                     requirement to, or make inapplicable an
                     enactment or part of an enactment in relation to
                     a licensee or class of licensees;

10           (b)     impose conditions or restrictions on the doing of
                     any thing by a licensee or a member of a class of
                     licensees;

             (c)     prohibit a licensee or a member of a class of
                     licensees from doing any thing; or

15           (d)     require a consent or approval to be obtained for
                     the doing of, or the manner of doing, any thing.


        Parliamentary disallowance

        11ZR. (1) Regulations referred to in section 11ZQ do
        not come into operation until they have been --

20           (a)     published in the Gazette; and

             (b)     laid before each House of Parliament and
                     either --

                     (i)   15 sitting days of each House have passed
                           after the regulations were so laid and
25                         notice of a motion to disallow the
                           regulations has not been given; or




                                      28
                     Energy Coordination Amendment Bill 1997
                                                                                      cl. 8


                       (ii)   if notice of a motion to disallow the
                              regulations has been given, the motion has
                              lapsed or has been withdrawn or defeated.

             (2) The Minister is to cause a notice to be published in
 5        the Gazette showing the day on which any such regulations
          came into operation.
                                                                                ''.


     Schedules 1 and 2 added

     8. After section 27 of the principal Act the following Schedules
10   are added --

     ''
                      SCHEDULE 1 -- LICENCE TERMS AND
                                CONDITIONS
                                                   [Section 11N]

15        A licence may include provisions --

               (a)     requiring the licensee to enter into agreements on
                       specified terms or on terms of a specified type;

               (b)     requiring the licensee to observe specified industry
                       codes with such modifications or exemptions as may
20                     be determined by the Coordinator;

               (c)     requiring the licensee to provide access to gas
                       distribution capacity or gas transmission capacity to
                       other persons on such terms and conditions as may be
                       determined by the Coordinator;

25             (d)     requiring the licensee to maintain specified
                       accounting records and to prepare accounts according
                       to specified principles;

               (e)     preventing the licensee from engaging in or
                       undertaking specified business activities or any other
30                     business;


                                          29
              Energy Coordination Amendment Bill 1997
cl. 8


        (f)     specifying methods or principles to be applied by the
                licensee in determining its fees or charges;

        (g)     specifying methods or standards to be applied in
                supplying gas under the authority of the licence;

 5      (h)     specifying procedures for amendment or surrender of
                the licence;

        (i)     requiring the licensee to provide specified information
                relating to the activities of the licensee under the
                licence to the Coordinator in the manner and form
10              determined by the Coordinator;

        (j)     regulating the construction, alteration, operation or
                maintenance of a distribution system;

        (k)     relating to the performance of functions by the
                licensee including --

15              (i)     the range of functions that may be performed
                        by the licensee;

                (ii)    performance criteria to be met by the licensee;
                        and

                (iii)   community service obligations, that is
20                      obligations that are not commercially justified,
                        to be discharged by the licensee;

        (l)     specifying --

                (i)     the terms and conditions of any customer
                        contract which an owner or occupier of land is
25                      required to enter into with the licensee in the
                        absence of any express agreement between the
                        customer and the licensee to the contrary; and

                (ii)    any limitation on the capacity of the parties by
                        express agreement to exclude, modify or restrict
30                      the terms and conditions of the customer
                        contract;



                                     30
           Energy Coordination Amendment Bill 1997
                                                                          cl. 8


     (m)     relating to obligations of the licensee with respect to
             public authorities and other licensees; and

     (n)     relating to the disposal or transfer of property, rights
             or liabilities of a specified kind either during the term
 5           of the licence or on or after its expiration by effluxion
             of time including provisions --

             (i)     prohibiting any disposal or transfer of property
                     except with the approval of a specified person;

             (ii)    prohibiting the giving of any encumbrance over
10                   specified property except with the approval of
                     the Coordinator;

             (iii)   requiring     the transfer of property, rights or
                     liabilities   of a specified kind to a specified
                     person on     or within a specified time after the
15                   expiration    of the licence;

             (iv)    with respect to the consideration to be provided
                     in respect of any disposal or transfer;

             (v)     with respect to the arbitration of disputes that
                     arise in connection with any disposal or
20                   transfer; and

             (vi)    of a supplementary, consequential or
                     transitional nature in relation to any disposal
                     or transfer.




                                     31
                     Energy Coordination Amendment Bill 1997
cl. 9


                 SCHEDULE 2 -- PROVISIONS OF ENERGY
               CORPORATIONS (POWERS) ACT 1979 THAT MAY
                        APPLY TO LICENSEES
                                                [Section 11ZQ]

 5        s. 4 (1)                  s.   48               s.   75
              (definition of        s.   49               s.   76
              ''service             s.   50               s.   77
              apparatus'')          s.   51               s.   79
          s. 4 (2)                  s.   52               s.   84 (2) & (3)
10        s. 40                     s.   53               s.   120
          s. 43                     s.   66               s.   121
          s. 46 (7), (8),           s.   67
              (11), (12),           s.   67A
              (14) & (16)           s.   74
15                                                                            ''.



        Consequential amendments

        9. (1) The         Energy   Corporations    (Powers)     Act 1979*    is
        amended --

             (a)    in section 55 (b) by inserting after ''other than'' the
20                  following --

                    ''
                         the holder of a licence under the Energy
                         Coordination Act 1994 acting under the
                         authority of that licence or
25                                                                            '';
                    and




                                               32
                   Energy Coordination Amendment Bill 1997
                                                                                cl. 9


            (b)   in section 56 (2) by inserting after ''other than'' the
                  following --
                  ''
                       the holder of a licence under the Energy
 5                     Coordination Act 1994 acting under the
                       authority of that licence or
                                                                          ''.
          [* Reprinted as at 25 May 1995.
             For subsequent amendments see 1995 Index to
10           Legislation of Western Australia, Table 1, pp. 70-71
             and Acts Nos. 78 of 1995 and 14 of 1996.]

        (2) The Gas Corporation Act 1994* is amended in section 28
     by inserting after subsection (2) the following subsection --

     ''
15           (2a) Where the performance of any of the corporation's
          functions referred to in subsection (1) (a) requires that the
          corporation hold a licence under the Energy Coordination
          Act 1994, the corporation may only perform that function in
          accordance with the terms and conditions of such a licence.
20                                                                        ''.
          [* Act No. 87 of 1994.]

        (3) The Gas Undertakings Act 1947* is amended in
     section 2 (1) in the definition of ''gas undertaker'' or ''undertaker''
     by inserting after ''local government'' the following --

25   ''
           , the holder of a licence under the Energy Coordination
          Act 1994
                                                                          ''.
     [*     Reprinted as at 15 January 1991.
30          For subsequent amendments see 1995 Index to
            Legislation of Western Australia, Table 1, pp. 89-90
            and Act No. 14 of 1996.]




 


[Index] [Search] [Download] [Related Items] [Help]