(1) The ESCoSA
distribution determination continues in operation for the purposes of the law
of the State despite the amendments to the National Electricity (South
Australia) Law effected by the relevant Amendment Act until the end of the
regulatory period specified by that determination.
(2) ESCoSA—
(a) will
continue to be responsible for the operation, administration and enforcement
of the ESCoSA distribution determination; and
(b) will
cease to be responsible to make a further distribution determination in
respect of ETSA Utilities from the relevant day.
(3) In connection with
the operation of subsections (1) and (2)(a), the National Electricity
Law, the Rules, the NEC and the EPO, as in force from time to time before the
commencement of this subsection, will be taken to continue to apply with
respect to the ESCoSA distribution determination (and the amendments effected
by the relevant Amendment Act will be disregarded).
(4) On or after the
relevant day, the AER must, when acting under the National Electricity (South
Australia) Law —
(a)
comply with the requirements under subsection (5); and
(b) give
effect to the provisions of the EPO (as in force from time to time).
(5) The requirements
under this subsection are as follows:
(a) the
AER must, in making a distribution determination or approving a pricing
proposal for the purposes of the Rules, ensure that the prices charged to
small customers for network services in relation to distribution services in
the State are not subject to variation on the basis of location;
(b) the
AER must only approve a distribution loss factor that has been calculated for
the purposes of the Rules by ETSA Utilities if the distribution loss
factor—
(i)
has been calculated on a State-wide basis by reference to
voltage level and proximity of a customer's metering point to a transformer;
and
(ii)
is not related to the relative length of a distribution
line involved in supplying electricity to the customer;
(c) the
AER must determine any transmission loss factor using a single virtual
transmission node for small customers that has been calculated for the
purposes of the Rules by the holder of a licence under the Electricity
Act 1996 authorising the operation of a transmission network on a
State-wide basis;
(d) the
AER must ensure that any method of allocation agreed with ETSA Utilities in
relation to transmission use of system costs paid by ETSA Utilities requires
the allocation of those costs to ETSA Utilities' small customers on a
State-wide basis that ensures that the rates charged with respect to all such
small customers are not subject to variation on the basis of location.
(6) In connection with
the operation of subsections (4) and (5)—
(a) the
EPO will be taken to continue to apply as if the AER were the Regulator under
the EPO; and
(b) for
the avoidance of doubt, in the event of an inconsistency between the operation
or effect of subsection (5) and the EPO, subsection (5) prevails.
(7)
Subsections (4), (5) and (6) apply until the EPO is varied or revoked so
that it no longer applies to distribution determinations.
(8) This section
applies despite any provision to the contrary in the National Electricity Law
or the Rules (and, to the extent of any inconsistency between such a provision
and the operation or effect of this section, this section prevails).