Electricity and Other Legislation Amendment Bill 2016

Introduced: 15/3/2016By: Hon C Pitt MPStatus: PASSED with amendment

Cost of Living First Nations Regional Queensland Government & Elections

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Plain English Summary

This is an omnibus bill covering multiple policy areas.

Overview

This bill supports the merger of Queensland's two government-owned electricity networks, Energex and Ergon, under a single parent company by ensuring the merged businesses remain subject to the same regulations as before. It also renames the Island Industries Board to Community Enterprise Queensland, modernises its governance and removes the geographic limits on where it can run stores serving remote communities.

Who it affects

Electricity customers across Queensland see no change in supply but sit behind a newly merged network operator, while residents of remote Torres Strait and Cape York communities keep their government-run stores under a new name with stronger oversight and a clearer duty to supply essentials at a fair price.

Energex-Ergon merger

Ensures that when Energex and Ergon stop being stand-alone Government Owned Corporations and become subsidiaries of a new parent company, they remain subject to the same laws, including anti-corruption oversight, ombudsman exemptions and tax treatment.

Allows the State's shares in Energex and Ergon to be transferred to a new parent company
Keeps the Crime and Corruption Act 2001 and Ombudsman Act 2001 treatment of Energex and Ergon in place after the merger
Keeps existing employment rules for government-owned electricity workers applying to the new parent company
Protects contracts, licences and obligations from being triggered or broken just because an entity stops being a GOC

Judicial review

Cleans up an inconsistency so that decisions of State electricity entities continue to be exempt from judicial review to the same extent as before, even if they are not GOCs.

Extends the existing judicial review exemption to State electricity entities that are not GOCs
Removes the separate listing of State electricity entities from the Judicial Review Act schedule

Community Enterprise Queensland

Continues the Island Industries Board as Community Enterprise Queensland with modernised governance. It can now operate outside the Torres Strait and Northern Peninsula, and has clearer duties to supply food and household essentials at a fair price.

Renames the Island Industries Board to Community Enterprise Queensland
Removes the geographic limit so it can run stores in other communities where commercial operators are not available
Creates a new 5-10 member board including at least one consumer representative, replacing nominations from local governments
Sets new disqualification rules for the CEO (indictable convictions, insolvency, corporations disqualifications) and requires disclosure of conflicts of interest
Gives the Minister power to direct the board in the public interest, with directions published in the annual report and publicly
Creates a process for local residents or resident-controlled entities to apply to take over an operating store, with Minister and Treasurer approval

How this affects you

Cost of Living

•Your electricity network operator is being merged into a single company aiming to deliver efficiency savings, with the existing regulatory protections kept in placeClauses 39, 42Section 157A and new Schedule 5 ensure Energex and Ergon remain subject to the same regulatory framework after the merger, including anti-corruption, ombudsman and tax rules.
•Residents of remote Torres Strait and Cape York communities get a stronger legal duty on the government-run stores to keep food and household essentials at a fair priceClause 7 (section 60B)Community Enterprise Queensland's functions include providing access to a range of food, drinks and household items essential for a healthy life at a fair price.

First Nations

•The Aboriginal and Torres Strait Islander Communities Act is updated to modernise the statutory body running community stores, renamed Community Enterprise QueenslandClauses 6-7Part 7A is renamed and the Island Industries Board is continued in existence as Community Enterprise Queensland.
•Stores serving mostly Aboriginal and Torres Strait Islander residents must apply operating surpluses to support community wellbeing, health and safety initiatives and the knowledge and skills of local residentsClause 29 (section 60Y)In applying operating surplus and assets, priorities include pricing policy for essentials and providing support for initiatives relating to community wellbeing, health and safety.
•Local residents or resident-controlled entities can apply to take over a community store, subject to Minister and Treasurer approvalClause 29 (section 60Y(4)-(6))Community Enterprise Queensland may enter into arrangements with residents or an incorporated entity controlled by residents to transfer an operating business, with Minister and Treasurer written approval required.

Regional Queensland

•Government-run stores can now operate outside the Torres Strait and Northern Peninsula, potentially bringing supply to other remote communities where commercial operators are not viableClauses 6-7The geographic limit is removed and the name is changed to reflect that it may operate in other communities.
•Ergon Energy's regional electricity network is merging with Energex under one parent company, with no change to day-to-day supplyExplanatory notes, Policy objectivesThe merger is to be implemented on 1 July 2016 with the objective of improving network efficiencies, with operational functions continuing to be undertaken by Energex and Ergon.

Government & Elections

•The State can restructure its government-owned corporations without triggering contract defaults or licence breachesClause 41 (section 162A)If a regulation repeals the declaration of an entity as a GOC, the repeal does not make the entity liable for a breach of contract or breach any instrument.
•The Minister gets new powers to ask Community Enterprise Queensland for reports and issue public-interest directions, with directions published publicly and in the annual reportClause 26 (sections 60VA, 60VB)The Minister may give the board a written direction if satisfied it is necessary in the public interest, after consulting the board, with directions published as soon as practicable and in the next annual report.
•Decisions of State electricity entities will continue to be exempt from judicial review to the same extent as before, even if the entity is not a GOCClause 44Section 18A of the Judicial Review Act is extended to cover decisions of State electricity entities to the extent provided under section 256 of the Electricity Act 1994.

Bill Journey

Introduced15 Mar 2016

First Reading

Committee

Committee Report12 May 2016

Committee report tabled

Second Reading

In Detail

Third Reading

Royal Assent20 June 2016

Sectors Affected

Public Administration Indigenous Affairs Electricity Retail

Classified using AGIFT/ANZSIC Australian government standards

Electricity and Other Legislation Amendment Bill 2016

Plain English Summary

Overview

Who it affects

Energex-Ergon merger

Judicial review

Community Enterprise Queensland

Bill Journey

Referenced Entities

Legislation

Organisations

Places

Roles & Offices

Sectors Affected

Source Documents