Thursday, 7 March 2024
Bills
State Electricity Commission Amendment Bill 2023
State Electricity Commission Amendment Bill 2023
Introduction and first reading
The PRESIDENT (17:35): I have a message from the Legislative Assembly:
The Legislative Assembly presents for the agreement of the Legislative Council ‘A Bill for an Act to amend the State Electricity Commission Act 1958 to abolish the State Electricity Commission of Victoria established by that Act, to make related amendments to that Act and other Acts and for other purposes.’.
That the bill be now read a first time.
Motion agreed to.
Read first time.
Ingrid STITT: I move, by leave:
That the second reading be taken forthwith.
Motion agreed to.
Statement of compatibility
Ingrid STITT (Western Metropolitan – Minister for Mental Health, Minister for Ageing, Minister for Multicultural Affairs) (17:36): I lay on the table a statement of compatibility with the Charter of Human Rights and Responsibilities Act 2006:
In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006, (the Charter), I make this Statement of Compatibility with respect to the State Electricity Commission Amendment Bill 2023 (the Bill).
In my opinion, the State Electricity Commission Amendment Bill 2023 as introduced to the Legislative Council, is compatible with human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.
Overview
The purpose of the Bill is to amend the State Electricity Commission Act 1958 (the SEC Act) to abolish the State Electricity Commission of Victoria (the SECV) and transfer the SECV’s functions and powers to the Minister and the SECV’s property, rights and liabilities to the State. A reference to SECV in any Act or instrument is to be construed as a reference to the State, in so far as it relates to a period after the abolition of the SECV, if not inconsistent with the subject matter.
The Bill also changes the name of the SEC Act to the Former SEC (Residual Provisions) Act 1958 and any reference to the SEC Act in any Act, regulation, subordinate instrument, or other document is to be construed as a reference to the Former SEC (Residual Provisions) Act 1958 unless the contrary intention appears. The Bill also amends the Electricity Industry (Residual Provisions) Act 1993 and 21 other Acts to reflect the amendments made to the SEC Act.
Human Rights Issues
The human right protected by the Charter that is relevant to the Bill is the right to property in section 20 of the Charter.
Human rights protected by the Charter that are relevant to the Bill
Property rights
Section 20 of the Charter provides that a person must not be deprived of their property other than in accordance with law. This right requires that powers conferred by legislation which authorise the deprivation of property are confined and structured rather than unclear, are accessible to the public, and are formulated precisely.
The State Electricity Commission Amendment Act 2023 will, among other things, transfer all of the SECV’s property, rights and liabilities to the State. The new Part X of the SEC Act – to be known as the Former SEC (Residual Provisions) Act 1958 upon the Amending Act becoming operational – deals with the transfer of property, rights and liabilities of the SECV to the State. Section 112 of Part X defines property to mean ‘any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property of any description’, liabilities to mean ‘all liabilities, duties and obligations, whether actual, contingent or prospective’, and rights to mean ‘all rights, powers, privileges and immunities, whether actual, contingent or prospective’.
Further, section 113 of Part X provides that on the commencement day of this Part, the State is substituted for the SECV as a party in any proceedings, contract, agreement or arrangement commenced or made by, against or in relation to the SECV and the State must continue and complete any other continuing matter or thing commenced by or against or in relation to the former SEC.
The transfer of the SECV’s property, rights and liabilities to the State is relevant to the property rights of natural persons who hold an interest in the property or liability transferred. However, the transfer of the property or liability from the SECV to the State will not limit the property rights of persons holding the interest as they are not being deprived of their interest in the property or liability, but rather the property or liability is transferred without altering the substantive content of that property right or liability.
Insofar as a cause of action in relation to any potential liability held by the SECV may be considered ‘property’ within the meaning of section 20 of the Charter, the Bill may engage this right. However, in my opinion, the Bill does not affect a deprivation of property as it does not extinguish any cause of action which a person may have against the SECV. Rather, liability is transferred to the State.
Finally, even if the Bill could be considered to deprive a person of property, any such deprivation would be ‘in accordance with law’ and will therefore not limit the Charter right to property. In particular, Part X dealing with the transfer of property, rights and liabilities from the SECV to the State is drafted in clear and precise terms, and is sufficiently accessible to allows persons to regulate their own conduct in relation to it.
Accordingly, I consider that the transfer of the SECV’s property, rights and liabilities to the State is compatible with the property rights in section 20 of the Charter.
Conclusion
I am therefore of the view that the Bill is compatible with the Charter.
Hon Ingrid Stitt MP
Minister for Mental Health
Minister for Ageing
Minister for Multicultural Affairs
Second reading
That the bill be now read a second time.
Ordered that second-reading speech be incorporated into Hansard:
This Bill supports the Government’s commitment to bring back the State Electricity Commission (SEC) as a new state-owned supplier of renewable energy and to enshrine it in the Victorian Constitution.
The Bill does this by amending the State Electricity Commission Act 1958 (SEC Act) and related legislation to make the name ‘State Electricity Commission’ available to the new SEC.
Bringing back the SEC
The global momentum for decarbonisation is already well underway, and all levels of government have a significant role to play in driving and accelerating this global shift to reduce emissions and minimise the impacts of climate change.
The Victorian Government has taken up this challenge, committing to world leading renewable energy targets of 65 per cent renewable electricity generation by 2030 and 95 per cent by 2035.
Reaching these targets requires bold and decisive action. That is why the Government has committed to revive the SEC. The new SEC’s role in the energy transition presents an enormous opportunity to accelerate the decarbonisation of our economy, attracting more investments and creating thousands of jobs, while also reducing energy bills and emissions.
The new SEC is a government-owned renewable energy company, focused on:
• Investing in renewable energy and storage projects that accelerate the transition and deliver commercial returns
• Supporting households to go all-electric to reduce their energy bills and emissions
• Building the renewable energy workforce our energy transition requires
It will partner with industry to transform the energy sector, opening the state up for further innovation and investments in renewables, including through an initial $1 billion in funding that will be used to deliver 4.5 gigawatts of power through renewable energy and storage projects.
The Bill will abolish the pre-existing State Electricity Commission of Victoria (SECV) that is constituted under the SEC Act to avoid confusion with the new SEC entity.
Following privatisation of Victoria’s electricity supply industry in the 1990s, legislation was enacted that has effectively limited the old SECV’s role to managing any residual property, rights and liabilities from its previous operations.
Currently the SEC Act provides that the old SECV consists of an Administrator. This office holder, currently the Secretary of the Department of Energy, Environment and Climate Action, is responsible for the administration of residual assets and liabilities of the old SECV. The old SECV has no staff and for practical purposes is no longer an operating entity under the State Electricity Commission Act 1958. Abolishing the old SECV will allow the new SEC to operate without causing confusion between the pre-existing entity and the new SEC.
The new SEC will invest with industry to accelerate our transition to more affordable, reliable, renewable energy.
Key amendments
I now turn to the provisions of the Bill.
Firstly, the Bill amends the State Electricity Commission Act 1958 to abolish the old State Electricity Commission of Victoria (SECV).
The Bill makes further amendments to the Electricity Industry (Residual Provisions) Act 1993 and other Acts, to remove or clarify all remaining references to the old SECV.
By abolishing the old SECV, the Bill will avoid any confusion between the pre-existing entity and the new SEC in the statute books.
As outlined earlier, currently the old SECV’s role is limited to managing any residual property, rights and liabilities from its previous operations. The Bill will transfer the small number of remaining assets and liabilities to the State for these to be managed by the Department of Energy, Environment and Climate Action with the Minister for the State Electricity Commission as the responsible Minister.
Finally, the Bill also amends the name of the State Electricity Commission Act 1958 to make it clear that it is not associated with the new SEC.
I commend the Bill to the house.
David DAVIS (Southern Metropolitan) (17:37): I move:
That debate on this bill be adjourned for one week.
Motion agreed to and debate adjourned for one week.