South Australian Current Acts

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NATIONAL ELECTRICITY (SOUTH AUSTRALIA) ACT 1996 - SECT 18

18—Price determinations

        (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).



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