Page 4075 - Week 11 - Thursday, 21 September 2017
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
The minister must also be satisfied that the making of the regulation will not significantly impede the objects of the act under which it is made. When considering whether these circumstances apply, the minister is required to have regard to a number of matters set out in the new provision. These matters involve considering the nature and type of the utility service; the risk that a utility service will fail, or will fail to provide its service in a safe, reliable and effective way; and the consequences for consumers, public safety or the environment if the service fails. These safeguards are designed to ensure that the exemption power is only used where it does not compromise the effective regulation of utility services in the territory.
The bill also contains the first use of the general exemption regulation-making power for both the Utilities Act and the Utilities (Technical Regulation) Act. Clauses 6 and 8 of the bill contain a regulation under each act that exempts embedded networks from the regulatory schemes of the acts. Embedded electricity networks are becoming increasingly popular as a means of providing electricity to apartment buildings, for example. Embedded networks are an electricity distribution system which involves multiple customers who are aggregated together through a single connection point to the electricity network. Embedded networks offer potential cost savings for customers through lower electricity retail pricing, due to the aggregation of customers and the combined buying power that results.
Under the current utilities legislation, an embedded network is considered a utility service under both the Utilities Act and the Utilities (Technical Regulation) Act. This level of regulatory response is not considered appropriate, given that there are only minor infrastructure differences between an embedded network and the standard wiring of apartment buildings, for example. It is considered that, due to the small scale and nature of embedded network installations, they are appropriately regulated through the Electricity Safety Act without the need for additional regulation under the UTR act and/or the Utilities Act. The retailer-customer relationship within an embedded network is appropriately regulated through the Utilities Act and the national electricity laws.
Ultimately, it is considered that the risk of an embedded network failing is low, given that it must comply with the requirements of the Electricity Safety Act 1971. The consequences of a failure are also low, given the numerous other protections in place for consumers through the retail relationship and through obligations placed on embedded network operators under the national electricity rules.
The amendments presented today show that the government is serious about removing unnecessary regulation, supporting innovative technologies in the utilities sector and delivering positive outcomes for consumers. Embedded networks are a prime example of a utility service that can deliver lower electricity prices and should not be prevented by an unwieldy regulatory regime. I commend the bill to the Assembly.
Debate (on motion by Ms Lawder) adjourned to the next sitting.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video