The Electricity Supply Act 1995 (NSW) (Act) establishes a scheme by which the Independent Pricing and Regulatory Tribunal (IPART) determines regulated retail tariffs for the supply of electricity to small retail customers in New South Wales (being residential and small business customers consuming less than 160 MWh per annum) who have not elected to enter into a negotiated supply contract.
The Electricity Tariff Equalisation Fund
The Act also provides for the establishment, operation and management of an Electricity Tariff Equalisation Fund (ETEF). The object of the ETEF is to moderate the volatility in electricity wholesale prices for those New South Wales owned electricity retailers that are required to supply electricity at regulated tariffs (standard retail suppliers). The Act requires standard retail suppliers and New South Wales owned generators to participate in the ETEF by making and receiving payments in accordance with established rules.
Extension of the IPART’s role and ETEF
Both the scheme for the determination of electricity tariffs by the IPART and the operation of the ETEF were due to end on 30 June 2007. However, the Electricity Supply Amendment (Miscellaneous) Regulation 2007 (NSW) has amended the Electricity Supply (General) Regulation 2001 in order to extend the IPART scheme and the operation of the ETEF to 30 June 2010.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.