Bills Digest no. 111 2008–09
Australian Energy Market Amendment (AEMO and Other
Measures) Bill 2009
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage history
Purpose
Background
Financial implications
Main provisions
Contact officer & copyright details
Passage history
Date
introduced: 12 February
2009
House: House of Representatives
Portfolio: Resources, Energy and
Tourism
Commencement:
Sections 1 to 3 on the day
of Royal Assent; Schedule 1, items 1-6, 12 and 14 on the day after
Royal Assent; Schedule 1, items 7 to 11 and item 12, on a single
day to be fixed by proclamation or if any of the provisions do not
commence within 6 months from the day or Royal Assent, then they
commence the first day after that period.
Links: The
relevant links to the Bill, Explanatory Memorandum and second
reading speech can be accessed via BillsNet, which is at http://www.aph.gov.au/bills/.
When Bills have been passed they can be found at ComLaw, which is
at http://www.comlaw.gov.au/.
The Bill proposes minor
consequential amendments to relevant Commonwealth legislation in
line with the implementation of co-operative energy reform
legislation being passed in other jurisdictions.
The optimal functioning of Australia s energy supply system has
a vital role to play in the sustainable development of the
Australia s economy and the improvement of community living
standards.
At a meeting of the Council of Australian Governments (COAG) on
13 April 2007, COAG agreed to establish a single, industry-funded
national energy market operator to be called the Australian Energy
Market Operator (AEMO).
It was envisaged that the AEMO, governed by an independent
skills-based board, and subject to more robust accountability
provisions, would combine administration of the National
Electricity Market (NEM), a new NEM transmission planning function,
and new gas market development functions. This represented another
step in the evolution of Australia s energy market, designed to
enhance the national character and operational consistency of
energy market governance.[1]
It was also decided that the Ministerial Council on Energy
(MCE)[2] would be
responsible for the implementation of this initiative.
AEMO is due to commence its operations on 1 July 2009.
It is stated that:
All current functions carried out by
NEMMCO[3] will be
retained, including an expanded [national] transmission planning
role [ ]. Furthermore, AEMO will include functions carried out by
VENCorp (Victoria), Gas Market Company (NSW) and REMCo (SA), and
new gas functions - a gas bulletin board and short-term trading
market.
AEMO will be run by a skills-based board
comprising nine non-Executive Directors and a CEO. The skillset for
the board will include finance, legal, economics/public policy, IT
and energy sector knowledge (operations and development).[4]
The Explanatory Memorandum states
that there is no financial impact.[5]
Western Australia will soon become a participant in the national
framework for regulating access to gas pipeline services. In 2008,
a Bill aimed at applying the National Gas Access Law was introduced
into the Western Australian Parliament. However, the Parliament was
prorogued prior to the Bill being passed. The legislation applying
the National Gas Access Law is now expected to commence in the
first half of 2009 (the WA Application Act). The delay has been
accompanied by a change in the title of the legislation. Hence, the
relevant amendments referred to below, reflect this date and name
change.
Schedule 3 of this Act deals with State, Australian Capital
Territory and Northern Territory Acts, and parts of such Acts, that
are enactments for the purposes of the Act.[6] Item 1 proposes an
amendment to paragraph 2(dab) of Schedule 3 of the
Act to reflect a change of name in the Western Australian gas
legislation. (Western Australia) Act 2008 is omitted and replaced
with (WA) Act 2009 .
Items 2, 3, 4, 5 and 6 propose
amendments to section 3, subsections
11J(1) and (2); section
11K; paragraph 11R(2)(a);
subsection 11R(3) of this Act. These amendments
reflect a change in name and date of Western Australian gas
legislation. (Western Australia) Act 2008 is omitted and replaced
with (WA) Act 2009 .
Item 8 repeals the definition of NEMMCO in
subsection 5(1) -the definitions section of this
Act. Hence, reference will no longer be made to NEMMCO. Rather,
item 9 proposes the insertion of a new definition
in subsection 5(1): AEMO would
have the same meaning as in the National Electricity Law set out in
the Schedule to the National Electricity (South Australia) Act
1996 of South Australia.
Items 9, 10 and 11 also
propose to replace references to NEMMCO in the Act with a reference
to AEMO.
Item 12 proposes to amend subsection
4(1) of the Act, correcting the reference to the WA
Application Act, as proposed in items 1 to 6.
Item 13 replaces a reference to NEMMCO in the
Act with a reference to AEMO.
Members, Senators and Parliamentary staff can obtain further
information from the Parliamentary Library on (02) 6277
2404.
[3]. The National Electricity
Market Management Company (NEMMCO) is the market operator of the
National Electricity Market and the system operator of the national
grid.
NEMMCO was
established in 1996 to administer and manage the NEM, develop the
market and continually improve its efficiency. The governments of
Queensland, New South Wales, the Australian Capital Territory,
Victoria, South Australia and Tasmania are members of NEMMCO. Each
of these governments nominates a director to the NEMMCO board.
Directly
sourced from: NEMMCO Corporate Information, at: http://www.nemmco.com.au/corpinfo/corporate_information.html,
accessed on 19 February 2009.
Juli Tomaras
11 March 2009
Bills Digest Service
Parliamentary Library
© Commonwealth of Australia
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