Wednesday, 2 August 2023
Bills
Energy Legislation Amendment Bill 2023
Bills
Energy Legislation Amendment Bill 2023
Statement of compatibility
Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (18:04): In accordance with the Charter of Human Rights and Responsibilities Act 2006, I table a statement of compatibility in relation to the Energy Legislation Amendment Bill 2023.
In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006 (the Charter), I make this statement of compatibility with respect to the Energy Legislation Amendment Bill 2023 (the Bill).
In my opinion, the Bill, as introduced to the Legislative Assembly, is compatible with the human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.
Overview of the Bill
The Bill is an omnibus Bill that makes amendments to –
1. the National Electricity (Victoria) Act 2005 to incorporate requirements the responsible Minister must comply with when making a T-3 reliability instrument under section 14JA of the National Electricity Law to trigger the retailer reliability obligation; and
2. the National Gas (Victoria) Act 2008 to improve the civil penalty arrangements for a breach of a declared system provision prescribed to be a civil penalty provision under that Act and minor technical amendments to update references to the Gas Distribution System Code to the Gas Distribution System Code of Practice made by the Essential Services Commission.
Human rights protected by the Charter that are relevant to the Bill
The Bill does not raise any human rights issues.
Consideration of reasonable limitations – section 7(2)
As the Bill does not engage any human rights protected by the Charter, it does not limit any human rights and therefore it is not necessary to consider section 7(2) of the Charter.
Conclusion
Accordingly, it is my view that the Bill is compatible with the human rights as set out in the Charter.
Hon Lily D’Ambrosio MP
Minister for Energy and Resources
Second reading
That this bill be now read a second time.
I ask that my second-reading speech be incorporated into Hansard.
Incorporated speech as follows:
The Victorian Government is committed to managing the transition of the energy sector to achieve net-zero emissions by 2045 while ensuring the reliable supply of energy to Victorian consumers.
This omnibus Bill amends the National Electricity (Victoria) Act 2005 and the National Gas (Victoria) Act 2008 to deliver better outcomes to Victorian energy consumers in two ways.
First, the Bill will amend the National Electricity (Victoria) Act 2005 to strengthen the Retailer Reliability Obligation (RRO) framework established under the National Electricity Law, which was recently amended to enable jurisdictional Energy Ministers to trigger the RRO.
The Bill will introduce Victorian specific decision-making criteria and consultation safeguards to be used in the event the Victorian Minister needs to trigger the RRO in response to an emerging risk of significant electricity disruption. The decision to trigger the RRO, will be made in consultation with the Australian Energy Regulator, the Australian Energy Market Operator, as well as the Treasurer and the Premier. It will ensure the decision is informed by the most up to date information regarding the energy sector and the broader economy.
The RRO puts in place responsibilities on retailers and large customers to secure contracts with electricity producers during periods of forecast lack of supply. This in turn encourages forward contracting – which importantly helps underwrite much needed new investment in electricity generation and avoid supply shortfalls.
Secondly, the Bill will improve the functioning of Victoria’s wholesale gas market by enabling regulations to be made to increase the maximum civil penalties payable for parties that breach the rules. The change will provide additional flexibility to the Australian Energy Regulator and the courts in determining an appropriate response to instances of non-compliance and help ensure any civil penalties issued reflect the severity of the conduct and act as a deterrent.
This will ensure the compliance and enforcement regime is fit for purpose so that the Victorian gas market delivers better outcomes for consumers and align the level of civil penalties with those in place in other east coast wholesale gas markets.
Finally, the Bill updates several outdated references to the ESC Gas Distribution System Code in the National Gas (Victoria) Act 2008. This will help improve the accurate interpretation of the Act.
I commend the Bill to the house.
James NEWBURY (Brighton) (18:05): I move:
That the debate be now adjourned.
Motion agreed to and debate adjourned.
Ordered that debate be adjourned for two weeks. Debate adjourned until Wednesday 16 August.