Energy Legislation Amendment Bill 2012FILE/571254bi1.docx · Web viewEnergy Legislation Amendment...

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Energy Legislation Amendment Bill 2012 TABLE OF PROVISIONS Clause Page PART 1—PRELIMINARY 1 1 Purpose 1 2 Commencement 2 PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 3 3 New section 34A inserted 3 34A Corporations Act displacement 3 4 Corporations Act displacement—suppliers of last resort 3 5 New section 99A inserted 3 99A Corporations Act displacement 3 PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001 5 6 New section 41A inserted 5 41A Corporations Act displacement 5 7 Corporations Act displacement—suppliers of last resort 5 8 New section 213A inserted 5 213A Corporations Act displacement 5 PART 4—AMENDMENT OF FUEL EMERGENCY ACT 1977 7 9 New section 11 inserted 7 11 Corporations Act displacement 7 PART 5—AMENDMENT OF NATIONAL ELECTRICITY (VICTORIA) ACT 2005 8 10 New Division 4 of Part 3 inserted 8 PARLIAMENT OF VICTORIA 571254B.I-15/8/2012 BILL LA INTRODUCTION 15/8/2012 1 5 10 15 20

Transcript of Energy Legislation Amendment Bill 2012FILE/571254bi1.docx · Web viewEnergy Legislation Amendment...

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Energy Legislation Amendment Bill 2012

TABLE OF PROVISIONSClause Page

PART 1—PRELIMINARY 1

1 Purpose 12 Commencement 2

PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000 3

3 New section 34A inserted 334A Corporations Act displacement 3

4 Corporations Act displacement—suppliers of last resort 35 New section 99A inserted 3

99A Corporations Act displacement 3

PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001 5

6 New section 41A inserted 541A Corporations Act displacement 5

7 Corporations Act displacement—suppliers of last resort 58 New section 213A inserted 5

213A Corporations Act displacement 5

PART 4—AMENDMENT OF FUEL EMERGENCY ACT 1977 7

9 New section 11 inserted 711 Corporations Act displacement 7

PART 5—AMENDMENT OF NATIONAL ELECTRICITY (VICTORIA) ACT 2005 8

10 New Division 4 of Part 3 inserted 816H Definitions 816I Application 1116J Efficiency carryover mechanism is an efficiency

benefit sharing scheme 1216K Modification of definition of regulatory control

period for purposes of this Division 1216L Service adjustment is a service target performance

incentive scheme 13

PARLIAMENT OF VICTORIA

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16M Distribution pricing proposals 1316N Approval of distribution pricing proposals 1516O AER compliance with Tribunal decisions inconsistent

with this Division 1616P Victorian DNSPs are not required to comply with

AER decisions or determinations that are inconsistent with this Division 17

11 New Schedule 1 inserted 18

SCHEDULE 1—Specified Building Block Amounts Applying to Applicable Victorian Distribution Determinations 18

PART A—Citipower Distribution Determination 2011-15 18

PART B—Jemena Distribution Determination 2011-15 19

PART C—Powercor Distribution Determination 2011-15 19

PART D—SPI Electricity Distribution Determination 2011-15 20

PART E—United Energy Distribution Determination 2011-15 20

PART 6—AMENDMENT OF ENERGY SAFE VICTORIA ACT 2005 21

12 New section 9A inserted 219A Functions, duties and powers of employees of

Energy Safe Victoria under Commonwealth laws 21

PART 7—REPEAL OF AMENDING ACT 22

13 Repeal of amending Act 22═══════════════

ENDNOTES 23

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A Bill for an Act to amend the Electricity Industry Act 2000, the Gas Industry Act 2001, the Fuel Emergency Act 1977, the National Electricity (Victoria) Act 2005, the Energy Safe Victoria Act 2005

and for other purposes.

The Parliament of Victoria enacts:

PART 1—PRELIMINARY

1 Purpose

The purpose of this Act is—

(a) to amend the Electricity Industry Act 2000, the Gas Industry Act 2001 and the Fuel Emergency Act 1977 to provide for Corporations Act displacement provisions relating to directions in emergency supply situations; and

(b) to amend the Electricity Industry Act 2000 and the Gas Industry Act 2001 to align the

Introduced in the Assembly

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PARLIAMENT OF VICTORIA

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existing Corporations Act displacement provisions relating to suppliers of last resort with the proposed new displacement provisions relating to directions in emergency supply situations; and

(c) to amend the National Electricity (Victoria) Act 2005 to specify certain building block amounts to be applied by the Australian Energy Regulator when approving the pricing proposals of Victorian distribution network service providers under the distribution determinations that apply to those providers; and

(d) to amend the Energy Safe Victoria Act 2005 to enable Energy Safe Victoria's staff to, with the approval of the Minister, perform functions and duties and exercise powers under certain Commonwealth laws relating to the promotion of the development and adoption of products that use less energy or produce fewer greenhouse gases.

2 Commencement

(1) Subject to subsection (2), this Act comes into operation on a day or days to be proclaimed.

(2) If a provision of this Act does not come into operation before 1 August 2013, it comes into operation on that day.

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PART 2—AMENDMENT OF ELECTRICITY INDUSTRY ACT 2000

3 New section 34A insertedSee:Act No.68/2000.Reprint No. 6as at17 March 2011and amendingAct Nos74/2010, 50/2011, 59/2011, 64/2011 and 21/2012.LawToday:www.legislation.vic.gov.aus. 3

After section 34 of the Electricity Industry Act 2000 insert—

"34A Corporations Act displacement

This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 2D and Chapter 5 of that Act.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

4 Corporations Act displacement—suppliers of last resort

In section 49K of the Electricity Industry Act 2000, after "provisions of" insert "Chapter 2D and".

5 New section 99A inserted

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After section 99 of the Electricity Industry Act 2000 insert—

"99A Corporations Act displacement

This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 2D and Chapter 5 of that Act.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

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PART 3—AMENDMENT OF GAS INDUSTRY ACT 2001

6 New section 41A insertedSee:Act No.31/2001.Reprint No. 4as at1 July 2009and amendingAct Nos57/2009, 68/2009, 10/2010, 55/2010, 72/2010, 74/2010, 50/2011 and 59/2011.LawToday:www.legislation.vic.gov.aus. 6

After section 41 of the Gas Industry Act 2001 insert—

"41A Corporations Act displacement

This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 2D and Chapter 5 of that Act.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

7 Corporations Act displacement—suppliers of last resort

In section 51K of the Gas Industry Act 2001, after "provisions of" insert "Chapter 2D and".

8 New section 213A inserted

After section 213 of the Gas Industry Act 2001 insert—

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"213A Corporations Act displacement

This Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 2D and Chapter 5 of that Act.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

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PART 4—AMENDMENT OF FUEL EMERGENCY ACT 1977

9 New section 11 insertedSee:Act No.8976.Reprint No. 1as at31 December 1996and amendingAct Nos33/2005 and 50/2011.LawToday:www.legislation.vic.gov.aus. 9

After section 10 of the Fuel Emergency Act 1977 insert—

"11 Corporations Act displacement

This Act is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act in relation to the provisions of Chapter 2D and Chapter 5 of that Act.

Note

Section 5G of the Corporations Act provides that if a State law declares a provision of a State law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.".

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PART 5—AMENDMENT OF NATIONAL ELECTRICITY (VICTORIA) ACT 2005

10 New Division 4 of Part 3 insertedSee:Act No.8/2005.Reprint No. 1as at20 May 2010and amendingAct Nos55/2010, 74/2010, 64/2011 and 21/2012.LawToday:www.legislation.vic.gov.aus. 10

After Division 3 of Part 3 of the National Electricity (Victoria) Act 2005 insert—

'Division 4—Application of pre-2011 service adjustment scheme and efficiency carryover

mechanism

16H Definitions

(1) In this Division—

applicable regulatory control period means the period commencing 1 January 2011 and ending on 31 December 2015;

applicable Victorian distribution determination means—

(a) in the case of the Victorian DNSP that is Citipower Pty Ltd (ABN 76 064 651 056)—Citipower distribution determination 2011-15;

(b) in the case of the Victorian DNSP that is Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083)—Jemena 

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distribution determination 2011-15;

(c) in the case of the Victorian DNSP that is Powercor Australia Limited (ABN 89 064 651 109)—Powercor distribution determination 2011-15;

(d) in the case of the Victorian DNSP that is SPI Electricity Pty Limited (ABN 91 164 651 118)—SPI Electricity distribution determination 2011-15;

(e) in the case of the Victorian DNSP that is United Energy Distribution Pty Ltd (ABN 70 064 651 029)—United Energy distribution determination 2011-15;

Citipower distribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by Citipower Pty Ltd (ABN 76 064 651 056), as varied or remade from time to time;

efficiency carryover mechanism, in relation to a Victorian DNSP, means the scheme of that name given effect under the Victorian distribution pricing determination that is applicable to the Victorian DNSP;

Jemena distribution determination 2011-15 means the distribution determination made by the AER in October 2010

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under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083), as varied or remade from time to time;

modified Rules means the National Electricity Rules as they have the force of law in this jurisdiction subject to this Division;

Powercor distribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by Powercor Australia Limited (ABN 89 064 651 109), as varied or remade from time to time;

service adjustment, in relation to a Victorian DNSP, means the adjustment to the distribution price control applicable to that Victorian DNSP determined in accordance with section 2.3.9 of Volume II of the Victorian distribution pricing determination;

SPI Electricity distribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by SPI Electricity Pty Limited (ABN 91 164 651 118), as varied or remade from time to time;

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United Energy distribution determination 2011-15 means the distribution determination made by the AER in October 2010 under Rule 6.11.1 of the National Electricity Rules that applies to electricity network services provided by United Energy Distribution Pty Ltd (ABN 70 064 651 029), as varied or remade from time to time;

Victorian DNSP means—

(a) Citipower Pty Ltd (ABN 76 064 651 056);

(b) Jemena Electricity Networks (Vic) Ltd (ABN 82 064 651 083);

(c) Powercor Australia Limited (ABN 89 064 651 109);

(d) SPI Electricity Pty Limited (ABN 91 164 651 118);

(e) United Energy Distribution Pty Ltd (ABN 70 064 651 029).

(2) Words and expressions used in this Division that are defined in Chapter 10 of the National Electricity Rules—

(a) have, subject to paragraph (b), the same meaning in this Division as they have under the Rules; and

(b) are to be read subject to any modifications made to those words or expressions by this Division.

(3) Subsection (2) does not apply to the extent that the context or subject matter otherwise indicates or requires.

16I Application

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(1) The National Electricity (Victoria) Law applies as a law of this jurisdiction subject to this Division.

(2) The National Electricity Rules have the force of law in this jurisdiction subject to this Division.

16J Efficiency carryover mechanism is an efficiency benefit sharing scheme

Despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules, the definition of efficiency benefit sharing scheme in Chapter 10 of the Rules is to be read as if after "clause 6.5.8" there were inserted ", and in the case of a Distribution Network Service Provider that is a Victorian DNSP, the efficiency carryover mechanism that applied to that Victorian DNSP".

16K Modification of definition of regulatory control period for purposes of this Division

Despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules—

(a) the reference to a control mechanism in paragraph (b) of the definition of regulatory control period in Chapter 10 of the Rules, as it applies to a Victorian DNSP, is taken to include the efficiency carryover mechanism and service adjustment applicable to that Victorian DNSP;

(b) paragraph (b) of the definition of regulatory control period in Chapter 10 of the Rules is to be read as if after "determination" there were inserted

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", and in the case of a Distribution Network Service Provider that is a Victorian DNSP, the Victorian distribution pricing determination".

16L Service adjustment is a service target performance incentive scheme

Despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules, the definition of service target performance incentive scheme in Chapter 10 of the Rules is to be read as if after "clause 6.6.2" there were inserted ", and in the case of a Distribution Network Service Provider that is a Victorian DNSP, the service adjustment that applied to that Victorian DNSP".

16M Distribution pricing proposals

(1) This section applies to a Victorian DNSP that submits a pricing proposal under rule 6.18.2(a)(2) of the National Electricity Rules for the third and each subsequent regulatory year of the applicable regulatory control period.

(2) Despite anything to the contrary in the National Electricity Rules, rule 6.18.2 of the Rules applies to the Victorian DNSP as if a reference to any applicable distribution determination in that rule were a reference to the applicable Victorian distribution determination as modified by operation of subsection (3).

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(3) For the purposes of subsection (2), an applicable Victorian distribution determination is taken to include—

(a) in the case of the applicable Victorian distribution determination that is the Citipower distribution determination 2011-15—Tables 19 and 20 set out in Part A of Schedule 1 instead of Tables 19 and 20 of that determination;

(b) in the case of the applicable Victorian distribution determination that is the Jemena distribution determination 2011-15—Tables 19 and 20 set out in Part B of Schedule 1 instead of Tables 19 and 20 of that determination;

(c) in the case of the applicable Victorian distribution determination that is the Powercor distribution determination 2011-15—Tables 19 and 20 set out in Part C of Schedule 1 instead of Tables 19 and 20 of that determination;

(d) in the case of the applicable Victorian distribution determination that is the SPI Electricity distribution determination 2011-15—Tables 19 and 20 set out in Part D of Schedule 1 instead of Tables 19 and 20 of that determination;

(e) in the case of the applicable Victorian distribution determination that is the United Energy distribution determination 2011-15—Tables 18 and 19 set out in Part E of Schedule 1 instead of Tables 18 and 19 of that determination.

(4) To avoid doubt—

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(a) the reference to the applicable Victorian distribution determination in subsections (2) and (3) is not to be read as—

(i) including any variations made to that determination that are inconsistent with the modified Rules or this Division; or

(ii) if that determination is remade, including any part of that remade determination that is inconsistent with the modified Rules or this Division; and

(b) the matters that the Victorian DNSP must set out in the pricing proposal in accordance with rule 6.18.2(b)(1) to (6) and rule 6.18.2(b)(6A) and (6B) must be consistent with subsections (2) and (3).

16N Approval of distribution pricing proposals

(1) This section applies if a Victorian DNSP submits a pricing proposal to the AER for approval under rule 6.18.8 of the National Electricity Rules that is a pricing proposal to which section 16M applies.

(2) Despite anything to the contrary in the National Electricity Rules, rule 6.18.8 of the Rules is taken to apply to the AER as if a reference to any applicable distribution determination in that rule were a reference to the applicable Victorian distribution determination modified to include the building block amounts set out in the Tables in the Part of Schedule 1 applicable to that determination (the modified distribution determination).

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(3) In addition, despite anything to the contrary in the National Electricity Rules, the AER must refuse to approve the pricing proposal or a part of the pricing proposal if the proposal or part does not comply with the modified distribution determination.

(4) To avoid doubt—

(a) the reference to the applicable Victorian distribution determination in subsection (2), or the modified distribution determination in subsection (3), is not to be read as—

(i) including any variations made to that determination that are inconsistent with the modified Rules or this Division; or

(ii) if that determination is remade, including any part of that remade determination that is inconsistent with the modified Rules or this Division; and

(b) subsection (3) is not to be read as preventing the AER from approving any other part of the pricing proposal that is consistent with the modified distribution determination.

16O AER compliance with Tribunal decisions inconsistent with this Division

(1) The AER is not required to comply with those parts of—

(a) the decision of the Australian Competition Tribunal in the proceedings known as Application by

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United Energy Distribution Pty Limited [2012] ACompT 1 (file numbers ACT 6 of 2010, ACT 7 of 2010, ACT 8 of 2010, ACT 9 of 2010, ACT 10 of 2010); or

(b) any other decision of the Australian Competition Tribunal that relates to an applicable Victorian distribution determination—

that are inconsistent with the modified Rules or this Division.

(2) Subsection (1) applies despite anything to the contrary in the National Electricity (Victoria) Law or the National Electricity Rules.

16P Victorian DNSPs are not required to comply with AER decisions or determinations that are inconsistent with this Division

(1) A Victorian DNSP is not required to comply with a decision or determination, or any part of a decision or determination, of the AER that is inconsistent with the modified Rules or this Division.

(2) Subsection (1) applies despite anything to the contrary in—

(a) the National Electricity (Victoria) Law; or

(b) the National Electricity Rules; or

(c) the Electricity Industry Act 2000; or

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(d) a licence under the Electricity Industry Act 2000 held by a Victorian DNSP.'.

11 New Schedule 1 inserted

After Part 5 of the National Electricity Victoria Act 2005 insert—

"__________________

SCHEDULE 1Sections 16M and 16N

SPECIFIED BUILDING BLOCK AMOUNTS APPLYING TO APPLICABLE VICTORIAN DISTRIBUTION

DETERMINATIONS

PART A

CITIPOWER DISTRIBUTION DETERMINATION 2011-15

Table 19

Building block amounts resulting from ESCV ECM carryover for CitiPower ($ million, 2010)

2011 2012 2013 2014 Total

4.38 –8.01 –5.74 –4.93 –14.30

Table 20

Building blocks resulting from the ESCV S factor close out ($ million, 2010)

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2011 2012 2013 2014 2015

–2.19 –4.50 –3.33 –0.33 –3.53

PART B

JEMENA DISTRIBUTION DETERMINATION 2011-15

Table 19

Building block amounts resulting from ESCV ECM carryover for Jemena ($ million, 2010)

2011 2012 2013 2014 Total

17.75 11.73 13.99 –1.90 41.57

Table 20

Building blocks resulting from the ESCV S factor close out ($ million, 2010)

2011 2012 2013 2014 2015

5.46 0.92 –0.20 –0.19 –9.63

PART C

POWERCOR DISTRIBUTION DETERMINATION 2011-15

Table 19

Building block amounts resulting from ESCV ECM carryover for Powercor ($ million, 2010)

2011 2012 2013 2014 Total

0.0 11.18 –4.66 –9.72 –3.20

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2011 2012 2013 2014 Total

Table 20

Building blocks resulting from the ESCV S factor close out ($ million, 2010)

2011 2012 2013 2014 2015

–5.95 –20.94 –5.22 –0.31 0.67

PART D

SPI ELECTRICITY DISTRIBUTION DETERMINATION 2011-15

Table 19

Building block amounts resulting from ESCV ECM carryover for SPI Electricity ($ million, 2010)

2011 2012 2013 2014 Total

11.11 –23.64 –8.64 1.78 –19.39

Table 20

Building blocks resulting from the ESCV S factor close out ($ million, 2010)

2011 2012 2013 2014 2015

40.22 20.21 –7.04 –1.59 –78.38

PART E

UNITED ENERGY DISTRIBUTION DETERMINATION2011-15

Table 18

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Building block amounts resulting from ESCV ECM carryover for United Energy ($ million, 2010)

2011 2012 2013 2014 Total

– – – – –

2011 2012 2013 2014 2015

–4.80 –4.80 –6.21 –6.15 –10.76

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PART 6—AMENDMENT OF ENERGY SAFE VICTORIA ACT 2005

12 New section 9A inserted

After section 9 of the Energy Safe Victoria Act 2005 insert—

"9A Functions, duties and powers of employees of Energy Safe Victoria under Commonwealth laws

Subject to the approval of the Minister and any conditions on that approval, an employee of Energy Safe Victoria may perform a function or duty, or exercise a power, under a law of the Commonwealth—

(a) related to the promotion of the development and adoption of products that—

(i) use less energy; or

(ii) produce fewer greenhouse gases; or

(iii) contribute to reducing the amount of energy used, or greenhouse gases produced, by other products; and

(b) that is specified in the approval.".

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See:Act No.39/2005and amendingAct Nos60/2006, 80/2006, 28/2007, 55/2010 and 29/2011.LawToday:www.legislation.vic.gov.au

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PART 7—REPEAL OF AMENDING ACT

13 Repeal of amending Act

This Act is repealed on 1 August 2014.Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984).

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ENDNOTES

By Authority. Government Printer for the State of Victoria.

Endnotes

Energy Legislation Amendment Bill 2012

24571254B.I-15/8/2012 BILL LA INTRODUCTION 15/8/2012