Part 3 Network operations in the retail market
13 Operation of distribution systems for retail supply
A person must not operate a distribution system for the purpose of conveying electricity, for or on behalf of retail suppliers, otherwise than under the authority of a distribution network service provider’s licence.Maximum penalty: 500 penalty units (in the case of a corporation) and 50 penalty units (in any other case).
(1) The Minister may grant distribution network service providers’ licences for the purposes of this Act.(2) Schedule 2 has effect with respect to the granting, variation, transfer and cancellation of distribution network service providers’ licences.
15 Right to connection to local distribution system for all customers
(1) An application may be made to a distribution network service provider:(a) by any person who owns or occupies premises within the distribution network service provider’s distribution district (other than a person who is entitled to the provision of customer connection services under a wholesale market access regime), or(b) by any other person on behalf of any such person,for the provision of customer connection services to those premises.(2) A distribution network service provider to which such an application is made is obliged:(a) to provide customer connection services to the applicant’s premises under the customer connection contract relevant to the applicant, or(b) to ensure that customer connection services are so provided.(3) The right that a person has under this section to have premises provided with customer connection services is subject to any provision of this Act or the regulations that authorises the disconnection of those premises from, or the refusal to connect those premises to, a distribution system.(4) It is a condition of a distribution network service provider’s licence that the distribution network service provider must fulfil the obligations imposed on the distribution network service provider by this section.(5) This section does not apply to a distribution network service provider that does not have a distribution district.
16 Distribution network service providers to convey electricity for certain persons only
It is a condition of a distribution network service provider’s licence that the distribution network service provider must not operate its distribution system for the purpose of conveying electricity for or on behalf of any person unless the person is:(a) (Repealed)(b) a retail supplier, or(c) (Repealed)(d) a Code participant within the meaning of the National Electricity (NSW) Law.
18 Distribution network service providers to connect premises under customer connection contracts
It is a condition of a distribution network service provider’s licence that the distribution network service provider must not provide customer connection services otherwise than under a customer connection contract.
Division 2 Standard form customer connection contracts
19 Procedure for making standard form customer connection contracts
(1) It is a condition of a distribution network service provider’s licence that the distribution network service provider must prepare a standard form customer connection contract to establish the conditions on which it will provide customer connection services.(2) It is a condition of a distribution network service provider’s licence that the distribution network service provider must notify any relevant customer consultative group, and must have due regard to its comments, before completing its preparation of a standard form customer connection contract.(3) Different forms of customer connection contract may be prepared for different classes of customer.
20 Matters for which standard form customer connection contracts must provide
(1) A standard form customer connection contract must make provision for the following matters:(a) the basis on which charges for its customer connection services are to be calculated,(b) any security to be provided by customers for payment of any such charges,(c) the standard of service to be provided to customers by the distribution network service provider,(d) the requirements to be complied with by customers under Division 4,(e) the circumstances under which premises may be disconnected from the distribution network service provider’s distribution system,(f) the procedures established by the distribution network service provider for handling enquiries and complaints made by customers, and resolving disputes with customers, in relation to matters arising under the contract,(g) such other matters as may be prescribed by the regulations.(2) A standard form customer connection contract:(a) must indicate that this Act confers powers, duties, rights and obligations on the distribution network service provider and customers, and(b) must briefly describe the nature of those powers, duties, rights and obligations,but is not unenforceable merely because of any failure to do so.(3) A standard form customer connection contract must comply with:(a) any conditions imposed on the distribution network service provider by its distribution network service provider’s licence, and(b) any relevant determination made by the Independent Pricing and Regulatory Tribunal,but is not unenforceable merely because of any failure to do so.(4) A standard form customer connection contract must not be inconsistent with the provisions of this Act or the regulations, and is unenforceable to the extent of any such inconsistency.
21 Effect of standard form customer connection contracts
(1) Except to the extent to which the regulations otherwise provide, a standard form customer connection contract takes effect:(a) on the first day on which notice of its terms is published in a newspaper circulating throughout the distribution network service provider’s distribution district, or(b) on such later day as may be specified in the notice.(2) The particulars to be set out in a notice under this section:(a) must specify the date on or after which the customer connection contract is to take effect, not being a date that is earlier than the date the notice is published or served, and(b) must include such other particulars as may be prescribed by the regulations.(3) A notice under this section may be of general application or be limited in its application by reference to specified exceptions or factors.(4) A standard form customer connection contract does not have effect in respect of any period before the date specified in the relevant notice as the date on or after which the contract is to take effect.(5) On the day on which a customer applies to a distribution network service provider for the provision of customer connection services, the customer and the distribution network service provider are taken to have entered into an agreement for the provision of customer connection services on the conditions set out in the relevant standard form customer connection contract, and the contract is enforceable accordingly.
22 Amendment of standard form customer connection contracts
(1) From time to time a distribution network service provider may amend a standard form customer connection contract to vary the conditions on which it will provide customer connection services.(2) This Division applies to an amendment of a standard form customer connection contract in the same way as it applies to a standard form customer connection contract.
Division 3 Negotiated customer connection contracts
23 Negotiated customer connection contracts
(1) This section applies to arrangements for the provision of customer connection services by a distribution network service provider in circumstances in which the distribution network service provider and customer agree for customer connection services to be provided otherwise than under any of the distribution network service provider’s standard form customer connection contracts.(2) An arrangement to which this section applies (a negotiated customer connection contract) may contain such terms as the distribution network service provider and customer may agree, and the contract is enforceable accordingly.(3) A negotiated customer connection contract must comply with any conditions imposed on the distribution network service provider by its distribution network service provider’s licence, but is not unenforceable merely because of any failure to do so.(4) A negotiated customer connection contract must not be inconsistent with the provisions of this Act or the regulations, and is unenforceable to the extent of any such inconsistency.
Division 4 Requirements relating to customer connection services
(1) This Division applies to any person who applies to a distribution network service provider for the provision of customer connection services or to whom customer connection services are provided.(2) A distribution network service provider may refuse to provide customer connection services to a person who fails to comply with a requirement under this Division.
25 Contributions to augmentation of distribution system
(1) A distribution network service provider may require a new customer to contribute towards the costs incurred or to be incurred by the distribution network service provider:(a) in extending its distribution system, or(b) in increasing the capacity of its distribution system,so as to enable it to provide customer connection services to the customer.(2) For the purpose of ensuring that previously incurred costs of the kind referred to in subsection (1) are equitably borne by customers in the same vicinity, the distribution network service provider:(a) may require further new customers to contribute towards those costs, and(b) may apply the whole or any part of the contributions received from those customers to the repayment of existing customers who have previously contributed towards those costs.(3) A distribution network service provider must comply with any determination of the Tribunal in force under the Independent Pricing and Regulatory Tribunal Act 1992 relating to the proportion of contributions that may be required from customers under this section or the repayment of existing customers under this section.(3A) It is a condition of a distribution network service provider’s licence that the distribution network service provider must comply with this section.(4) In this section, new customer means a customer requiring new or additional customer connection services.
(1) A distribution network service provider may require the installation of such service lines, and provision for their attachment, as it considers necessary to provide a supply of electricity to a customer.(2) The type, construction and route of a service line and its point of connection are to be as determined by the distribution network service provider.(3) A distribution network service provider may require premises to be provided with more than one point of connection if the distribution network service provider considers it necessary to avoid interference with the supply of electricity to any other premises.
(1) A distribution network service provider may require the installation of such service equipment, and provision for its mounting, as it considers necessary for the provision of a safe and efficient supply of electricity to a customer.(2) The position and standards of installation of service equipment are to be as determined by the distribution network service provider.
(1) This section applies if, in the opinion of the distribution network service provider, the supply of electricity required by a customer:(a) exceeds that which can be provided by a service line from its street mains, and(b) can best be given by installing transformers, switchgear or other equipment on the premises to be supplied.(2) In such a case, the distribution network service provider may require the customer to provide for use by the distribution network service provider, free of cost, a place within those premises to accommodate the transformers, switchgear or other equipment that the distribution network service provider considers should be installed.(3) The place provided must be approved by, and must be enclosed in a manner approved by, the distribution network service provider.
(1) A distribution network service provider may require the installation of such electricity meters as it considers necessary to ascertain the quantity of electricity supplied to a customer.(2) The position and standards of installation of electricity meters are to be as determined by the distribution network service provider.
30 Requirements as to installation and use of apparatus
(1) A distribution network service provider:(a) may impose such requirements as to the installation and use of electrical appliances and equipment by the customer as the distribution network service provider considers necessary to prevent or minimise adverse effects on the supply of electricity to other customers, and(b) may impose requirements relating to loading of, and the balancing of the load over, the phases of the customer’s electricity supply, and(c) may impose requirements as to the minimum rupture rating or minimum breaking capacity of the customer’s main protective devices, and(d) may require the customer to install relays, current transformers and other protective equipment having characteristics to suit the distribution network service provider’s protective system.(2) A customer must comply with any requirement imposed on the customer under this section.
31 Customer may choose supplier and contractor
(1) For the purpose of complying with any requirement imposed under this Division or under a customer connection contract, a customer may elect:(a) to have any required electrical or other goods provided by the distribution network service provider (in the case of goods that are available from the distribution network service provider) or by any other person, and(b) to have any required electrical or other services provided by the distribution network service provider (in the case of services that are available from the distribution network service provider) or by any other person.(2) A person who provides electrical or other services of a kind prescribed by the regulations must be accredited, in accordance with the regulations, to provide those services.
32 Sealing of electrical installations
A distribution network service provider may attach seals to a customer’s electrical installation if it considers it appropriate to do so.
In this Division:licensee means the holder of a distribution network service provider’s licence.
network income of a licensee means the income derived by the licensee from the use of the distribution system of the licensee in the provision of electricity network services.
32B Distribution network service provider’s levy
(1) A licensee must pay to the Treasurer, in respect of each financial year during which the licensee holds a distribution network service provider’s licence, the levy determined in respect of that year by order of the Governor, on the recommendation of the Treasurer, applying to the licensee and published in the Gazette.(2) The Treasurer, in recommending the amount of a levy for a financial year payable by a licensee, must be satisfied that the amount reasonably represents the amount by which the network income (as estimated by the Treasurer) of the licensee in that year is likely to exceed the sum of the amounts (as estimated by the Treasurer) to be:(a) the costs of deriving the income, and(b) the taxes payable in deriving that income, and(c) a reasonable return on the capital of the licensee used in deriving that income,having regard to:(d) the likely consumption of electricity in that financial year by customers (other than customers who are specified or described in an order made under section 43E (6)) who are connected to the licensee’s distribution system, and(e) such other matters as the Treasurer determines after consultation with the licensee.(3) The levy is payable for the financial year commencing on 1 July 1997 and later financial years.(4) Despite the other provisions of this section, no levy is to be determined in respect of the year commencing on 1 July 2001, or any subsequent year, unless the Treasurer, by order published in the Gazette, approves the determination of a levy.(5) An approval of the Treasurer under subsection (4):(a) must be published in the Gazette before the beginning of a year to which it applies, and(b) may apply to one or more years as specified or described in the approval.
(1) The amount of a levy payable by a licensee in respect of a financial year may be varied by order of the Governor applying to the licensee and published in the Gazette.(2) Such an order may be made before or during the financial year concerned or during the following financial year, but not later.(3) The Treasurer, in recommending a variation of a levy for a financial year payable by a licensee, must be satisfied of the matters referred to in section 32B (2).
32D Becoming a licensee during a year
(1) If a person becomes a licensee during a financial year, a levy may be determined under this Division for the licensee in respect of the remaining part of that financial year.(2) The other sections of this Division apply to the licensee in respect of that financial year as if references in those sections to a financial year were references to the remaining part of that financial year.
32E Ceasing to be a licensee during a year
(1) If a person ceases to be a licensee during a financial year, the amount of levy payable by the licensee may be adjusted by order of the Governor, applying to the licensee and published in the Gazette, having regard to the length of the portion of that financial year that the distribution network service provider’s licence was in force.(2) Such a person is entitled to a refund of any money paid in excess of the amount of the levy as so adjusted.(3) However, a person does not, by ceasing to be a licensee, cease to be liable to a levy, or to a variation of a levy under section 32C, in respect of any period during which the person was a licensee.(4) Accordingly, a reference in this Division to a licensee includes a reference to a former licensee, but without making the former licensee liable to a levy in respect of any period after the person ceased to be the holder of a distribution network service provider’s licence.(5) The other sections of this Division apply for the purpose of calculating an adjustment referred to in subsection (1) or a variation referred to in subsection (3) as if references in those sections to a financial year were references to the portion of the financial year during which the distribution network service provider’s licence was in force.
32F Payment and recovery of levy
(1) The levy in respect of a financial year is payable at such times (whether during or after that year) and in such manner as are:(a) determined in the order imposing, varying or adjusting it (subject to any agreement referred to in paragraph (b)), or(b) agreed on between the Treasurer and the licensee under section 99B.(2) A levy under this Division is recoverable as a debt due to the Crown in any court of competent jurisdiction.
(1) It is a condition of a distribution network service provider’s licence that the licensee must pay the levy in accordance with this Division.(2) Nothing in this Division affects the operation of section 59B of the Public Finance and Audit Act 1983.