Title: Electricity (General) VariationRegulations 2008
Subject: ElectricityAct 1996
Author: Office of Parliamentary Counsel
Category: public
Document comments: 229

No 229 of 2008 published in Gazette 21.8.2008 p 3779

Electricity (General) Variation Regulations 2008

Electricity (General) Variation Regulations 2008
Part 1—Preliminary

Electricity (General) Variation Regulations 2008
Preliminary—Part 1

Electricity (General) Variation Regulations 2008
Part 2—Variation of Electricity (General) Regulations 1997

Electricity (General) Variation Regulations 2008
Variation of Electricity (General) Regulations 1997—Part 2

South Australia
Electricity (General) Variation Regulations 2008
under the Electricity Act 1996

Contents
Part 1—Preliminary
1	Short title
2	Commencement
3	Variation provisions
Part 2—Variation of Electricity (General) Regulations 1997
4	Insertion of Part 2AA
Part 2AA—Residential Energy Efficiency Scheme
7AD	Application
7AE	Interpretation
7AF	Minister to set greenhouse gas reduction targets
7AG	Minister to determine percentage of greenhouse gas reduction target to be delivered to priority group households
7AH	Minister to set energy audit targets
7AI	Administration
7AJ	Notification and adjustment of targets
7AK	Energy audits
7AL	Energy efficiency activities
7AM	Energy efficiency activities for priority group households
7AN	Determination of energy efficiency activities
7AO	Retailers may enter into arrangements
7AP	Compliance and reporting
7AQ	Review
7AR	Expiry

Part 1—Preliminary
1—Short title
These regulations may be cited as the Electricity (General) Variation Regulations 2008.
2—Commencement
These regulations come into operation on the day on which they are made.
3—Variation provisions
In these regulations, a provision under a heading referring to the variation of specified regulations varies the regulations so specified.

Part 2—Variation of Electricity (General) Regulations 1997
4—Insertion of Part 2AA
After Part 2 insert:
Part 2AA—Residential Energy Efficiency Scheme
7AD—Application
	(1)	This Part applies to any electricity entity that holds a licence authorising the retailing of electricity within the State.
	(2)	However, this Part will not apply in a particular calendar year to an electricity entity that retails electricity as a retailer to fewer than the threshold number of residential customers within South Australia as at 30 June in the preceding year.
	(3)	For the purposes of subregulation (2), the Minister must, by notice in the Gazette, set the threshold number for a 3‑year period at the time of setting the annual greenhouse gas reduction targets and the annual energy audit targets for the purposes of this Part.
	(4)	This regulation applies subject to the operation of regulations 7AK(4), 7AL(5) and 7AM(4).
7AE—Interpretation
	(1)	In this Part, unless the contrary intention appears—
energy audit means an audit of a priority group household undertaken by a retailer in accordance with the minimum specification published by the Minister by notice in the Gazette;
energy credit means the following (if the relevant differences are positive):
	(a)	in relation to energy audits, the difference (expressed as an amount of energy audits) between the number of energy audits actually undertaken by a retailer in a year and the ELEAT that applies to the retailer for that year;
	(b)	in relation to energy efficiency activities, the difference (expressed in tonnes of carbon dioxide equivalent) between the actual tonnes of carbon dioxide equivalent taken to have been saved by a retailer in a year through the conduct of energy efficiency activities and the EGRT that applies to the retailer for that year;
	(c)	in relation to energy efficiency activities for priority group households, the difference (expressed in tonnes of carbon dioxide equivalent) between the actual tonnes of carbon dioxide equivalent taken to have been saved by a retailer in a year through the conduct of energy efficiency activities for priority group households and a PGGGRT that applies to the retailer for that year;
energy efficiency activity means an activity relating to residential premises determined by the Minister or the Commission pursuant to regulation 7AN to be an energy efficiency activity;
EGRT—means an electricity licence greenhouse gas reduction target calculated in accordance with subregulation (2);
ELEAT—means an electricity licence energy audit target calculated in accordance with subregulation (3);
PGGGRT—see regulation 7AG;
priority group household means residential premises in which a person resides who—
	(a)	is the holder of a current pensioner concession card issued by the Commonwealth Government; or
	(b)	is the holder of a current TPI Gold Repatriation Health Card issued by the Commonwealth Government; or
	(c)	is the holder of a current War Widows Gold Repatriation Health Card issued by the Commonwealth Government; or
	(d)	is the holder of a current Gold Repatriation Health Card (EDA) issued by the Commonwealth Government; or
	(e)	is the holder of a current Health Care Card (including a Low Income Health Care Card) issued by the Commonwealth Government; or
	(f)	is a recipient of the South Australian Government Energy Concession; or
	(g)	falls within a class of persons who are experiencing hardship determined or approved by the Commission for the purposes of these regulations;
relevant electricity retailer means an electricity entity to which this Part applies;
relevant gas retailer means the holder of a licence under the Gas Act 1997 authorising the retailing of gas to which Part 2AA of the Gas Regulations 1997 applies;
residential customer means a small customer—
	(a)	who acquires electricity primarily for domestic use; and
	(b)	who satisfies other criteria (if any) determined by the Commission for the purposes of this definition;
retailer means a relevant electricity retailer or a relevant gas retailer;
threshold number—see regulation 7AD(3).
	(2)	The EGRT for a relevant electricity retailer in any calendar year is calculated in accordance with the following formula:

where—

| is the annual greenhouse gas reduction target for calendar year t that applies to this retailer expressed in tonnes of carbon dioxide equivalent (tCO_2 - e)
| is total electricity sales for this retailer to residential customers within South Australia during the financial year preceding calendar year t expressed in gigajoules (GJ)
| is total electricity sales to residential customers within South Australia during the financial year preceding calendar year t by relevant electricity retailer i, expressed in gigajoules (GJ)
| is the current full fuel cycle emission factor for end users of purchased electricity in South Australia as specified in the National Greenhouse Accounts (NGA) Factors, published by the Commonwealth, expressed in tonnes of carbon dioxide equivalent per gigajoule (tCO_2-e/GJ)
| is the current full fuel cycle emission factor for small users of natural gas in South Australia as specified in the National Greenhouse Accounts (NGA) Factors, published by the Commonwealth, expressed in tonnes of carbon dioxide equivalent per gigajoule (tCO_2-e/GJ)
| is total GreenPower electricity sales for this retailer to residential customers within South Australia, accredited under the National GreenPower Accreditation Program, during the financial year preceding calendar year t, expressed in gigajoules (GJ)
| is the total GreenPower electricity sales to residential customers within South Australia, accredited under the National GreenPower Accreditation Program, during the financial year preceding calendar year t by relevant electricity retailer i, expressed in gigajoules (GJ)
| is the annual greenhouse gas reduction target fixed by the Minister under regulation 7AF for calendar year t, expressed in tonnes of carbon dioxide equivalent (tCO_2-e)
| is the total gas sales to residential customers within South Australia during the financial year preceding calendar year t by relevant gas retailer j under the Gas Act 1997, expressed in gigajoules (GJ)
| is the total number of relevant electricity retailers for year t
| is the total number of relevant gas retailers for year t.
	(3)	The ELEAT for a relevant electricity retailer in any calendar year is calculated in accordance with the following formula:

where—

| is the annual energy audit target for calendar year t that applies to this retailer expressed as the number of energy audits to be delivered
| is the annual energy audit target fixed by the Minister under regulation 7AH for calendar year t, expressed as the number of energy audits to be delivered
| is the total number of residential customers within South Australia to whom this retailer sold electricity as at the final day of the financial year preceding calendar year t
| is the total number of residential customers within South Australia to whom relevant electricity retailer i sold electricity as at the final day of the financial year preceding calendar year t
| is the total number of residential customers within South Australia to whom relevant gas retailer j sold gas under the Gas Act 1997 as at the final day of the financial year preceding calendar year t
| is the total number of relevant electricity retailers for year t
| is the total number of relevant gas retailers for year t.
7AF—Minister to set greenhouse gas reduction targets
	(1)	The Minister must, by notice in the Gazette, fix the annual greenhouse gas reduction targets for the purposes of this Part.
	(2)	The targets are to be expressed as the annual amount of greenhouse gas savings (in terms of tonnes of carbon dioxide equivalent) that must be achieved by retailers through the carrying out of energy efficiency activities in accordance with this Part and Part 2AA of the Gas Regulations 1997.
	(3)	The Minister must, for the purposes of subregulation (1)—
	(a)	fix annual greenhouse gas reduction targets for 2009, 2010 and 2011 before 1 January 2009; and
	(b)	fix annual greenhouse gas reduction targets for 2012, 2013 and 2014 before 1 January 2012.
7AG—Minister to determine percentage of greenhouse gas reduction target to be delivered to priority group households
	(1)	The Minister must, by notice in the Gazette, determine that a percentage of an annual greenhouse gas reduction target is to be achieved by the provision of energy efficiency activities to priority group households.
	(2)	The priority group greenhouse gas reduction target (PGGGRT) for a retailer is determined by multiplying the EGRT for that retailer by the percentage fixed by the Minister under subregulation (1).
	(3)	In addition, the Minister may, by notice in the Gazette, determine that certain percentages of the PGGGRT are to be achieved by the provision of energy efficiency activities to particular classes of priority group households and each determination will constitute a separate PGGGRT for the purposes of this Part.
7AH—Minister to set energy audit targets
	(1)	The Minister must, by notice in the Gazette, fix the annual energy audit targets for the purposes of this Part.
	(2)	The targets are to be expressed as the annual number of energy audits required to be undertaken by retailers in accordance with this Part and Part 2AA of the Gas Regulations 1997.
	(3)	Energy audits will relate to priority group households.
	(4)	The Minister must, for the purposes of subregulation (1)—
	(a)	fix annual energy audit targets for 2009, 2010 and 2011 before 1 January 2009; and
	(b)	fix annual energy audit targets for 2012, 2013 and 2014 before 1 January 2012.
7AI—Administration
	(1)	The Commission has such functions and powers as are necessary or expedient to give effect to the residential energy efficiency scheme including the following functions:
	(a)	to administer the scheme;
	(b)	to ensure that retailers comply with the requirements of this Part;
	(c)	to report to the Minister—
	(i)	at the end of each year as to the administration of the scheme and the progress of retailers in achieving the targets set by this Part; and
	(ii)	from time to time on any other matter relating to this Part as required by the Minister.
	(2)	The Commission—
	(a)	is required to impose a condition on the licence of a retailer under the Act that the retailer comply with this Part, pursuant to section 21(2) of the Act; and
	(b)	is to vary conditions of the licence of a retailer under the Act to ensure that the retailer complies with this Part as required from time to time, pursuant to section 27(1) of the Act.
7AJ—Notification and adjustment of targets
	(1)	The Commission must, in relation to each calendar year in which the residential energy efficiency scheme is to apply, notify in writing each retailer to which this Part applies of any annual—
	(a)	ELEAT; and
	(b)	EGRT; and
	(c)	PGGGRT,
that applies to the retailer for that year.
	(2)	The Commission may adjust a target that would otherwise apply to a retailer after taking into account any—
	(a)	energy audit shortfall; and
	(b)	greenhouse gas reduction shortfall; and
	(c)	greenhouse gas reduction shortfall for priority group households,
from a previous year that must be added to the target in accordance with regulation 7AK, 7AL or 7AM, respectively.
	(3)	If the customers of 1 retailer (in this regulation referred to as the first retailer) are transferred during a year to another retailer (in this regulation referred to as the acquiring retailer) by the sale, transmission or assignment of the whole or part of the business or undertaking of the first retailer, the Commission may adjust the targets of both the first retailer and the acquiring retailer for that year on a pro rata basis taking into account the date on which the customers were transferred.
	(4)	If—
	(a)	this Part or Part 2AA of the Gas Regulations 1997 did not apply to the acquiring retailer before the transfer of customers to the acquiring retailer because the acquiring retailer did not have the threshold number of customers for the purposes of regulation 7AD; and
	(b)	as a result of the transfer of customers the acquiring retailer has at least the threshold number of customers,
this Part and Part 2AA of the Gas Regulations 1997 apply with immediate effect to the acquiring retailer and the Commission must—
	(c)	in accordance with subregulation (1), notify the acquiring retailer of its targets under this Part; and
	(d)	adjust the targets that apply to both the first retailer and the acquiring retailer for that year on a pro‑rata basis taking into account the date on which the transfer of customers occurred.
	(5)	If a retailer accrues an energy credit in a year and does not transfer the credit under regulation 7AO(1), the Commission must, on application by the relevant retailer, take the credit into account in determining whether the retailer has met a target that applies to the retailer in any subsequent year.
7AK—Energy audits
	(1)	A retailer to which this Part applies must, subject to subregulation (2), undertake the annual number of energy audits in accordance with the ELEAT that applies to the retailer for that year (as adjusted to take into account any shortfall added under subregulation (3)).
	(2)	It is not a breach of subregulation (1) if a retailer undertakes in a year at least 90% of the energy audits required to be undertaken in that year in accordance with the ELEAT that applies to the retailer for that year.
	(3)	Despite subregulation (2), if a retailer fails to achieve its ELEAT in a year, the energy audit shortfall must be added to an ELEAT that applies to the retailer in a subsequent year.
	(4)	If—
	(a)	a retailer undertakes energy audits in a year sufficient to achieve at least 90% of its ELEAT for that year but does not achieve its ELEAT; and
	(b)	in the subsequent calendar year this Part no longer applies to the retailer because the retailer retails electricity to fewer than the threshold number of residential customers set by the Minister under regulation 7AD(3),
the retailer must undertake energy audits in the subsequent year to account for its energy audit shortfall for priority group households from the previous year.
	(5)	In this regulation—
energy audit shortfall means the difference (expressed as an amount of energy audits) between the ELEAT that applies to the retailer for a year and the number of energy audits actually provided by that retailer in that year.
7AL—Energy efficiency activities
	(1)	A retailer to which this Part applies must, subject to subregulation (2), undertake energy efficiency activities sufficient to achieve the EGRT that applies to the retailer for that year (as adjusted to take into account any shortfall added under subregulation (3)).
	(2)	It is not a breach of subregulation (1) if a retailer undertakes energy efficiency activities in a year sufficient to achieve at least 90% of the EGRT that applies to the retailer for that year.
	(3)	Despite subregulation (2), where a retailer fails to achieve its EGRT in a year, the greenhouse gas reduction shortfall must be added to an EGRT that applies to the retailer in a subsequent year.
	(4)	An energy efficiency activity undertaken by a retailer for the purposes of achieving a PGGGRT under regulation 7AM is taken to be included as an energy efficiency activity undertaken by a retailer for the purpose of achieving its EGRT under this regulation.
	(5)	If—
	(a)	a retailer undertakes energy efficiency activities in a year sufficient to achieve at least 90% of its EGRT for that year but does not achieve its EGRT; and
	(b)	in the subsequent calendar year this Part no longer applies to the retailer because the retailer retails electricity to fewer than the threshold number of residential customers set by the Minister under regulation 7AD(3),
the retailer must undertake energy efficiency activities in the subsequent year to account for its greenhouse gas reduction shortfall from the previous year.
	(6)	In this regulation—
greenhouse gas reduction shortfall means the difference (expressed in tonnes of carbon dioxide equivalent) between the EGRT that applies to the retailer for a year and the actual tonnes of carbon dioxide equivalent taken to have been saved by that retailer in that year through the conduct of energy efficiency activities.
7AM—Energy efficiency activities for priority group households
	(1)	A retailer to which this Part applies must, subject to subregulation (2), undertake energy efficiency activities sufficient to achieve any PGGGRT that applies to the retailer for a year (as adjusted to take into account any shortfall added under subregulation (3)).
	(2)	It is not a breach of subregulation (1) if a retailer undertakes energy efficiency activities in a year sufficient to achieve at least 90% of a PGGGRT that applies to the retailer for that year.
	(3)	Despite subregulation (2), where a retailer fails to achieve a PGGGRT in a year the greenhouse gas reduction shortfall for priority group households must be added to a PGGGRT that applies to the retailer a subsequent year.
	(4)	If—
	(a)	a retailer undertakes energy efficiency activities in a year sufficient to achieve at least 90% of a PGGGRT for that year but does not achieve the PGGGRT; and
	(b)	in the subsequent calendar year this Part no longer applies to the retailer because the retailer retails electricity to fewer than the threshold number of residential customers set by the Minister under regulation 7AD(3),
the retailer must undertake energy efficiency activities in the subsequent year to account for its greenhouse gas reduction shortfall for priority group households from the previous year.
	(5)	In this regulation—
greenhouse gas reduction shortfall for priority group households means the difference (expressed in tonnes of carbon dioxide equivalent) between a PGGGRT that applies to the retailer for a year and the actual tonnes of carbon dioxide equivalent taken to have been saved by that retailer in that year through the conduct of energy efficiency activities for priority group households.
7AN—Determination of energy efficiency activities
	(1)	Before 1 January 2009, the Minister must, by notice in the Gazette, determine 1 or more activities to be energy efficiency activities for the purposes of this Part.
	(2)	On or after 1 January 2009, the Commission may, by notice in the Gazette, on its own initiative or by application, determine, in accordance with any requirements set by the Minister, that an activity is an energy efficiency activity.
	(3)	An application under subregulation (2) must be made in a manner and form determined by the Commission.
	(4)	A determination may be of general application or limited (according to criteria determined by the Commission) in its application to a particular retailer or particular retailers.
	(5)	A notice published under this regulation must—
	(a)	describe the energy efficiency activity; and
	(b)	set out the minimum specification in accordance with which the activity must be performed; and
	(c)	specify the amount of greenhouse gases (expressed in tonnes of carbon dioxide equivalent) taken to be saved if the activity is undertaken; and
	(d)	set out the fact that the amount of greenhouse gases deemed to be saved for the purpose of meeting a target under these regulations is the amount specified under paragraph (c) at the time at which the energy efficiency activity was undertaken; and
	(e)	specify such other matters (whether similar or dissimilar to those referred to above) as the Minister or the Commission considers relevant.
	(6)	The Commission may, by notice in the Gazette, vary or revoke a determination made under this regulation after taking into account any requirements set by the Minister.
7AO—Retailers may enter into arrangements
	(1)	If a retailer accrues an energy credit, the retailer may, at any time, transfer the credit to another retailer.
	(2)	A retailer may enter into an arrangement with another person (including another retailer) for that person to undertake either or both of the following:
	(a)	energy audits;
	(b)	energy efficiency activities.
	(3)	Despite any arrangement entered into under subregulation (2), a retailer remains liable for any offence or penalty arising from a failure to meet its ELEAT, EGRT or a PGGGRT under this Part.
7AP—Compliance and reporting
	(1)	A retailer must, as required from time to time by the Commission, submit to the Commission a compliance plan for the purposes of this Part in accordance with a code published by the Commission under Part 4 of the Essential Services Commission Act 2002.
	(2)	A retailer must, as required from time to time by the Commission, report on compliance with this Part in accordance with a code published by the Commission under Part 4 of the Essential Services Commission Act 2002.
	(3)	A code published under this regulation must comply with any requirements set by the Minister.
7AQ—Review
	(1)	The Minister must cause a review of the operation of this Part to be conducted and a report on the results of the review to be submitted to the Minister before 31 December 2013.
	(2)	The review must consider whether the scheme should continue and any other matter the Minister considers should be considered in the review.
	(3)	The Minister must, within 12 sitting days after receiving the report, cause copies of the report to be laid before both Houses of Parliament. 
7AR—Expiry
This Part will expire on 31 December 2014.
Note—
As required by section 10AA(2) of the Subordinate Legislation Act 1978, the Minister has certified that, in the Minister's opinion, it is necessary or appropriate that these regulations come into operation as set out in these regulations.
Made by the Governor
with the advice and consent of the Executive Council
on 21 August 2008
No 229 of 2008
MEN08/001CS