Wednesday, 3 December 2025

 Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (11:23): In accordance with the Charter of Human Rights and Responsibilities Act 2006, I table a statement of compatibility in relation to the National Gas (Victoria) Amendment Bill 2025:

Opening paragraphs

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 National Gas (Victoria) Amendment Bill 2025 (the Bill).

In my opinion, the Bill, as introduced to the Legislative Assembly, is compatible with the human rights protected by the Charter. I base my opinion for the reasons outlined in this statement.

Overview

This Bill amends the National Gas (Victoria) Act 2008 to support the improvement and expansion of Victoria’s declared gas transmission system in the interests of ongoing security and reliability of Victorian energy supply.

The Bill introduces a new head of power for the Minister responsible for the administration of the National Gas (Victoria) Act 2008 to make Orders under proposed new section 58B, which require a declared transmission system service provider or prospective declared transmission system service provider to plan, carry out or operate specified improvements to Victoria’s declared gas transmission system, or to facilitate others’ doing so.

The Orders will be able to modify the application of, or disapply provisions of the National Gas Law and the National Gas Rules with respect to improving Victoria’s declared gas transmission system, and related services.

The Bill provides that Orders, made under new section 58B, are not to be considered a decision in relation to works for the purposes of section 8C of the Environment Effects Act 1978. This amendment in the Bill is limited to dealing with the procedure for making such a decision, rather than the substantive effects of such a decision and therefore does not engage relevant human rights.

The Bill provides for amendments to improve the civil penalty arrangements for a breach of a declared system provision prescribed to be a civil penalty provision under the National Gas (Victoria Act) 2008. The amendments alter the compliance and enforcement arrangements to ensure that the Australian Energy Regulator may enforce civil penalties in Victoria for such breaches under the Act.

The Bill in new section 58H enables the Supreme Court of Victoria to restrain persons with obligations under these Orders from undertaking conduct contravening them, or require them to take actions to prevent contraventions, in relation to enforceable provisions under Ministerial Orders. The Court orders are likely to be directed at the entities who are directed to carry out improvements to the Victorian declared gas transmission system, as provided under Ministerial Orders.

Human Rights Issues

Section 6(1) of the Charter provides that only persons have human rights. A person is defined as a human being. A note to section 6(1) clarifies that corporations do not have human rights.

The entities that will be subject to requirements under a Ministerial Order made under the new provisions set out in this Bill are declared transmission network service providers, prospective declared transmission network service providers, the Australian Energy Market Operator, and the Australian Energy Regulator. All are large and sophisticated commercial entities, and not natural persons.

Civil penalties including Court order in relation to contraventions of enforceable provisions

The imposition of civil penalties will generally not engage the right under sections 24 (fair hearing) or 25 (presumption of innocence) or 26 (Right not to be tried or punished more than once) the Charter, unless the penalty is in the nature of a punishment. Section 26 of the Charter provides that a person must not be tried or punished more than once for an offence in respect of which he or she has already been finally convicted or acquitted in accordance with law. This rule only applies in respect of criminal punishment. Breach of a civil penalty provision is not an offence.

To the very limited extent that these civil penalties provisions in the Bill apply to a natural person, the penalties (including new section 58G), which are civil penalty provisions for the purposes of the National Gas (Victoria) Law, and the powers of the Court to make orders set out in section 58H, serve the purpose of ensuring that a person upholds their duties in an order under section 58B. These provisions are largely protective in nature with the aim of ensuring compliance with the regulatory scheme in a reasonable and proportionate way and are not punitive in nature. The amendment provides that the Supreme Court may issue orders against any person who has contravened or proposes to contravene an Order, or any person who engages in certain accessorial civil breaching conduct to that contravention or proposed contravention of the Order. That is, conduct whereby a person has been in any way, directly or indirectly, knowingly concerned in, or party to, a contravention or proposed contravention; or aided, abetted, counselled or procured such a contravention; or induced, whether by threats or promises or otherwise, such a contravention; or directly or indirectly, knowingly concerned in, or party to such a contravention; or conspired with others to effect such a contravention. In these instances, a natural person will likely be employed by or acting on behalf of the legal person, such as a corporate entity, directed to undertake improvement work under a Ministerial Order. Regardless, as the order will be decided by the Supreme Court, any impact on an individual person will be a matter for consideration by the Court in determining the application made by the Minister. Applications for orders are subject to the independent determination of the Supreme Court based on rules of evidence in a civil proceeding. The Court decision is subject to any appeal or judicial review. The Court may rescind or vary, an order or interim order. These matters afford further procedural fairness.

As such, I conclude that the rights in sections 24(1), 25 and 26 of the Charter are not limited by the provisions referred to above.

Consideration of reasonable limitations

I am satisfied that the Bill does not limit any human rights and therefore it is not necessary to consider section 7(2) of the Charter. If to the extent that that any limitation is imposed on the rights in sections 24(1), 25 and 26 of the Charter, any such limitation is reasonable and justified under section 7(2) of the Charter, as the civil orders are protective in nature and afford procedural fairness to serve the purpose of ensuring that a person upholds their duties in an order under proposed new section 58B under the National Gas (Victoria Act) 2008, for the reasons above.

Conclusion

I am of the view that the Bill is compatible with the Charter.

The Hon. Lily D’Ambrosio MP

Minister for Energy and Resources

 Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (11:23): I move:

That this bill be now read a second time.

I ask that my second-reading speech be incorporated into Hansard.

Incorporated speech as follows:

Victoria is moving ahead with its transition to net-zero and expanding our power networks to connect Victorian homes, power our industry and support our economy.

Gas will continue to play a role in the economy as we meet our legislated renewable electricity and emission reduction targets. Critical uses for gas include providing firming capacity through gas-powered-generation of electricity and as an input in our manufacturing sector.

By 2029, the Australian Energy Market Operator (AEMO) has projected the East Coast and Victoria will experience annual gas supply shortages. There is also a risk of seasonal and peak-day shortages happening ahead of this time. We are seeing sharper demand spikes as coal-fired generators close and renewable energy requires gas-powered firming, particularly in winter.

The current backbone of the gas transmission pipeline network in Victoria, also called the Victorian Declared Transmission System or DTS, plays a key role in ensuring enough gas supply can get to where it is needed. But the DTS was built for an earlier time when Victoria sourced most of its gas from the east of the state and Longford. It now needs timely and effective upgrades to allow available and projected supply to come in from other parts of the network to support ongoing secure and reliable energy supply. Having appropriate transmission infrastructure in place is a key piece in firming the electricity network through gas-powered-generation of electricity. Any network expansions or upgrades must also be properly targeted so only necessary upgrades are made that benefit all consumers and to reduce the risk of asset stranding.

The Government has already supported key pipeline investments to strengthen the DTS, including rigorous oversight of delivery of the Western Outer Ring Main, which was completed in 2023, and supporting compression upgrades to increase the capacity of the South West Pipeline. These upgrades have contributed to an increase in system capacity so it can better serve Victoria’s peak demand. They have proved invaluable over the past three winters. But more work will be needed to ensure the DTS can support Victoria’s energy security and reliability needs, including supporting the electricity system.

That is why the Government is introducing powers to shore up supply and ensure our DTS has the transportation flexibility and capacity to meet demand.

Overview of the Bill

Ministerial Orders

The Bill will introduce the power for the Minister to make Orders to direct the regulated transmission pipeline owner to make specific augmentations to the DTS under a new Division 6 in Part 6 of the National Gas (Victoria) Act 2008.

A Ministerial Order will be able to modify, or disapply, provisions of the National Gas Law and National Gas Rules to deliver the DTS upgrades to or direct services relating to the declared transmission pipeline network where these changes are needed for the reliability and security of gas supply.

For example, an Order may direct a declared network asset owner to undertake upgrades to its transmission pipeline network to increase capacity or to support improved resilience and operability of the network to ensure ongoing security of gas supply.

An Order may also ask AEMO to provide its expertise to help identify which changes to the DTS would best help avert shortfall risks and in a way that best supports the effective operation of the market. The Bill also confers powers on the Australian Energy Regulator to monitor and enforce compliance with any potential Orders and provides for civil penalties as an enforcement tool.

Before making an Order, the Minister will be required to consult with the Premier, the Treasurer, AEMO and the DTS owner. In this way, the Orders will be based on carefully considered advice to ensure that changes are made only when and where they are needed, that projects will be at an efficient cost and that they will deliver value for Victorians. The responsible Minister will also be required to publish the Order, together with the reasons for making the Order, in the Government Gazette and the Department’s internet site.

These Orders will be an important measure of last resort. They will only be used where the market fails to find a solution.

These reforms are prudent and proportionate and will support the effective delivery of the energy transition to the benefit of all Victorians.

I commend the Bill to the house.

 James NEWBURY (Brighton) (11:23): I move:

That the debate be adjourned.

Motion agreed to and debate adjourned.

Ordered that debate be adjourned for two weeks. Debate adjourned until Wednesday 17 December.