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1 27 July 2011 > Regulatory Newsfeed SAI Global Electricity Newsfeed> Index 1. Generation 2. Transmission and Distribution 3. Retail 4. General Electricity News 5. Environment 6. Safety and Employment 7. Upcoming Dates 8. Previous Electricity Newsfeeds Legislation Hotline COPYRIGHT WARNING Use of this product must be in accordance with our licence agreement and the relevant licence fee paid by your organisation. We will vigorously pursue legal action against organisations found to be in breach of these requirements, in particular where content has been forwarded, copied or pasted in any way without prior authorisation. If you are uncertain about your organisation's licensing arrangements, please contact SAI Global on UK Bribery Act - Ready or not, Here it Comes! top Effective 1 July 2011, the UK Bribery Act 2010 affects all companies that have any business associations with the UK. SAI Global can help overcome the challenges of implementing and maintaining the "adequate procedures" the Act requires you to have in place to prevent bribery with: Risk assessment gap analysis Due diligence tests on third party providers Policies, procedural drafting and control tools Effective training and elearning solutions A global, anonymous whistle-blowing service For more information please contact us today. T: E: enquiry.asiapac@saiglobal.com W: 1. Generation top Victoria - Generation Application for Wind Energy Generation The Essential Services Commission (ESC) has made available the Ararat Wind Farm - Application for Generation Licence (25 January 2011) for public comment. RES Australia Pty Ltd (RES) has planning consent to construct 75 wind turbines at the Ararat Wind Farm in northwestern Victoria. The Ararat Wind Farm Newsletter Issue No. 3 (July 2009) provides further information on the project. Accordingly,

2 RES has applied for a licence to generate electricity at the wind farm and sell the power to electricity retailers. Comments on the application should be sent to the ESC by 15 August (Source: ESC; RES) Queensland - General Electricity News Solar and Wind Power Plants Proposed ABC News reports that renewable energy developer Windlab has proposed to build a 200 MW solar power plant near Hughenden, Queensland. Windlab spokesperson Mark Sinclair reportedly stated that Windlab is also proposing to build the so-called Kennedy Wind Farm nearby, and that the $1 billion Kaiwedera Solar Plant Project may begin construction as early as Further information from the Kennedy Wind Farm Project ABC News: Energy firm shed light on outback solar plans (27 July 2011) (Source: ABC News; Windlab) 2. Transmission and Distribution top Victoria - Transmission and Distribution Tenant Weighs in on Electricity Supply Upgrade Dispute The Australian Energy Regulator (AER) has released a submission (25 July 2011) from Rheem Australia on a dispute between Sietel Limited and United Energy. The dispute relates to a request by Sietel that United Energy upgrade an existing electricity substation on premises owned by Sietel, and the fairness and reasonableness of United Energy's resulting offer of a standard 30-year lease term (plus a 30-year option) over the land where the substation is situated and a new transformer would be located. The AER previously announced that it no longer intended to issue a final determination on the fairness of the proposed lease, since Sietel had withdrawn its complaint after the two companies reached mutually agreeable terms for the substation lease. However, site lessee Rheem Australia has now voiced its concern at "ongoing delays in reaching agreement on the upgrade", asking the AER to deliver an "urgent ruling on this matter", to alleviate the company's increased production costs and an inability to progress expansion plans. Further information from the AER (Source: AER) Queensland - Transmission and Distribution Major Power Boost to Brisbane Suburbs Energex has announced plans for a $45 million-plus electricity upgrade project in Brisbane's inner northern suburbs. The project will include a new 110/11 kilovolts (kv) Zone Substation in Kelvin Grove, along with the construction of two underground 100kV power cables from Paddington to Kelvin Grove and 12 11kV powerlines from the new substation. Energex has applied for development approval with the Brisbane City Council and hopes to commence work in early Further information from Energex Energex's media release (25 July 2011) (Source: Energex) Powerline Upgrade Put on Hold Energy Minister Stephen Robertson has announced that Energex has put on hold the Mudgeeraba to Tugun Network Upgrade on the Gold Coast. A recent slowdown in energy demand had led to the decision, but, as Mr Robertson explained, "Energex will be assessing numerous other solutions, including upgrading existing powerlines and substations, lower voltage solutions and alternative corridor configurations". The review of electricity supply options should be complete by early Further information from Energex Energex's media release (20 July 2011) (Source: Energex) 3. Retail top National - Retail AER Performance Reporting Procedures and Guidelines The AER has released the AER (Retail Law) Performance Reporting Procedures and Guidelines (July 2011), which specify

3 the manner in which energy companies must submit performance information to the AER. Finalised after extensive consultation, the guidelines will facilitate the collection of market information and allow the AER to report on the performance of energy retailers and distributors as provided for under the National Energy Retail Law (see the SAI Global Electricity Newsfeed of 24 March 2011). The guidelines will come into effect on 1 July Further information from the AER AER's media release (undated) (Source: AER; SAI Global Electricity Newsfeed) New Information Sheets for Energy Consumers Resources Minister Martin Ferguson has released the following series of information sheets for electricity and gas consumers (all undated): pricing information: o Electricity and natural gas bills explained - the costs of your electricity and natural gas; o Network costs for electricity and natural gas; o How can I save money on my electricity and natural gas bills?; o Need help paying your electricity and natural gas bills?; contracts information: o Electricity and natural gas contracts- what are they and do they apply to me?; o How do I choose an electricity and/or natural gas contract?; o What happens when I change my electricity or natural gas contract? What if I change my mind?; o Electricity and natural gas telephone and door-to-door sales; general information: o Your electricity and natural gas supply; o Disconnection and reconnection - your rights and responsibilities; o What to do about your electricity and natural gas services when moving house; and o Electricity and natural gas - information for tenants. Further information from the AER Resources Minister's media release (20 July 2011) (Source: Resources Minister; AER) Draft Determination for Administered Price Periods The Australian Energy Market Commission (AEMC) has released the Draft Rule Determination: National Electricity Amendment (Application and Operation of Administered Price Periods) Rule 2011 (21 July 2011) for public comment. The Australian Energy Market Operator (AEMO) had sent a Rule change proposal to the AEMC earlier this year (see the SAI Global Electricity Newsfeed of 5 April 2011). In its draft rule determination, the AEMC decided to implement this proposal and to correct two errors in National Electricity Rules which relate to the application and operation of the Administered Floor Price and the Market Floor Price. Comments on the draft rule determination should be sent to the AEMC using the online form by 1 September Further information from the AEMC (Source: AEMC; SAI Global Electricity Newsfeed) NMAS Reconciliation Data Released The AEMO has released the National Electricity Market (NEM) Non-Market Ancillary Services recovery reconciliation file for Week 29, preliminary (undated). The reconciliation file is intended to help NEM participants in reconciling Non- Market Ancillary Services recovery amounts in billing. Further information from the AEMO (Source: AEMO) New South Wales - Retail Report on Customer Engagement in Monopoly Service Industries The Independent Pricing and Regulatory Tribunal (IPART) has released Regulated monopoly service providers and customer views, preferences and willingness to pay - A report for IPART (June 2011) for public comment. Prepared by the Cambridge Economic Policy Associates (CEPA), the report critically assesses four approaches to customer engagement - public consultation, consumer panels, consumer surveys and willingness-to-pay studies, and constructive engagement - in a climate of consumer disillusionment amidst rapidly increasing consumer prices in regulated sectors (such as electricity) resulting from burgeoning capital investment requirements. IPART has also made available An invitation to participate - Customer engagement on prices for monopoly services

4 (undated). Comments on the report should be sent to IPART by 31 August (Source: IPART) Tasmania - Retail Publications for Aurora Energy Regulatory Proposal The AER has made available the following presentations (both dated 19 July 2011): Aurora Energy's Regulatory Proposal to the AER ; and Aurora Energy Revenue Proposal - Preliminary Comments. The presentations were given by Aurora Energy and the Energy Users Association of Australia (EUAA) respectively, at an AER-hosted public forum on Energy to the People - Aurora Energy Regulatory Proposal (June 2011) in Hobart on 19 July The regulatory proposal is still open for comment (see SAI Global Electricity Newsfeed of 1 July 2011). In related news, the AER has made available the following documents relating to Aurora's regulatory proposal: Customer Capital Contribution Policy (22 July 2011), with an associated Covering Letter (25 July 2011); and Estimated SIMs Cost (undated). (Source: AER; SAI Global Electricity Newsfeed) 4. General Electricity News top National - General Electricity News Weekly Electricity Market Review Bulletin The AEMO has released the Weekly Electricity Market Review Bulletin (25 July 2011), which provides a snapshot of price and demand, interconnector flow and temperature data over the period from 17 July 2011 to 24 July Further information from the AEMO (Source: AEMO) Report on Improvement of Project Outcomes The Electricity Supply Association of Australia (ESAA) has released Scope of Improvement Project risk - Getting the right balance and outcomes (July 2011), the third report in the Scope of Improvement series. The report focuses on the development of better approaches to risk identification, allocation and management, and the impact of these approaches on project outcomes. Blake Dawson conducted the research, with help from the ESAA, Australian Constructors Association and Infrastructure Partnerships Australia. Further information from the ESAA (Source: ESAA) Western Australia - General Electricity News Consultation Papers on Proposed Electricity Licence Exemptions The Office of Energy (OoE) has released the following consultation papers (both dated July 2011) relating to proposed licensing exemptions: Electricity Licence Exemptions - Electric Vehicle Charging Stations - Consultation Paper, which discusses the OoE's proposal to grant licence exemptions to operators of electric vehicle charging stations, who normally would require both distribution and retail licenses to operate a station and charge customers' electric vehicles. Comments on this consultation paper should be sent to the OoE by 5 August 2011 (further information); and Electricity Licence Exemptions - Blair Fox, Energy Generation & Golden Grove - Consultation Paper, which discusses the request for new distribution and retail licence exemptions by the three titular companies. The OoE has recommended that these exemptions be approved. Comments on this consultation paper should be sent to the OoE by 12 August 2011 (further information). Further information from the OoE (Source: OoE)

5 ERA Outlines Priorities in Work Plan The Economic Regulation Authority (ERA) has released its 2011/12 Work Plan (undated), which outlines the activities that the economic regulator proposes to undertake this financial year in relation to its key functions, including: conducting an inquiry into the efficiency of Synergy's costs and electricity tariffs; administering the licensing regime for the provision of electricity services in Western Australia; reporting on the performance of licensees providing utilities services to consumers; and monitoring the wholesale electricity market to ensure that it is operating effectively. ERA's media release (21 July 2011) (Source: ERA) South Australia - General Electricity News Renewable Energy Grant Awarded Premier Mike Rann has announced a $254,520 grant from the state's Renewable Energy Fund to promote business and renewable energy power supply on Kangaroo Island. Mr Rann stated that the grant will go towards a $374,000 feasibility study, undertaken by forestry company RuralAus Investments, into a 10 Megawatt (MW) biomass power plant. The 10MW renewable energy power plant will reportedly take about 18 months to plan, at an estimated cost of $30 million. Premier's media release (25 July 2011) (Source: Premier) 5. Environment top National - Environment Consultation RIS on Mandatory Disclosure of Residential Building Energy The Ministerial Council on Energy (MCE) has released the Standing Committee of Officials (SCO) Bulletin No. 194 (21 July 2011), which invites public comment on the Mandatory disclosure of residential building energy, greenhouse and water performance - Consultation Regulation Impact Statement [RIS] (July 2011). The consultation RIS assesses the likely impact of the Council of Australian Governments' (COAG) agreement to phase in the mandatory disclosure of residential building energy, greenhouse and water performance at the time of sale or lease, starting first with energy efficiency. It considers a range of disclosure models - from full or simplified thermal assessment to online self-assessment - as well as the option of disclosing at the point of sale only, versus the point of sale and lease. The MCE has also made available the Residential Building Mandatory Disclosure Fact Sheet (July 2011) and Submissions Guide and Template (undated). Comments on the consultation RIS should be sent to the Department of Climate Change and Energy Efficiency by 12 September Further information from the MCE (Source: MCE) Solar Plant Receives Research Grant Innovation Minister Kim Carr has announced that a $66.5 million Education Investment Fund (EIF) grant from the Australian Government will help finance the construction of the proposed 150-megawatt Moree Solar Farm power plant in New South Wales. The $925 million project will be built by BP Solar, Fotowatio Renewable Ventures (FRV) and Pacific Hydro. Moree Solar Farms spokesperson Tony Stocken has stated that the EIF grant will enable the project leaders to work with the Commonwealth Scientific Industrial Research Organisation (CSIRO) and top solar experts nationwide. Preliminary research will begin this year, with completion of the plant expected by Further information from the Moree Solar Farm Innovation Minister's media release (22 July 2011) Related media item: CSIRO's media release (undated) (Source: Innovation Minister; Moree Solar Farm; CSIRO) Queensland - Environment Retailers Not Enamoured of GreenPower, Benchmarking Proposals The Energy Retailers Association of Australia (ERAA) has released a submission (21 July 2011) to the Department of Employment, Economic Development and Innovation, in which it responds to a Premier's Council on Climate Change's (PCCC) Preliminary Impact Assessment of the following proposed initiatives:

6 "requiring electricity retailers in Queensland to offer a GreenPower product as the first retail option to new customers"; and requiring the "inclu[sion] [of] information on customer's bills to benchmark their usage against a Q2 target". The ERAA has warned that both proposals will impose significant new costs on retailers and urged "full consideration" of these costs. While supportive of the GreenPower scheme, the ERAA said that the effect of similar obligations imposed on retailers in NSW should be studied to ensure that any recommendation is informed. The industry body also thought that the second proposal would be of dubious real benefit to consumers (on the premise that too much information is confusing) and would ultimately result in higher energy prices. (Source: ERAA) 6. Safety and Employment top National - Safety and Employment DIY Solar Installations Warning The National Electrical and Communications Association (NECA) has announced that the installation of solar panels by householders or unlicensed people is dangerous and illegal. NECA chief executive officer James Tinslay has advised householders and businesses that solar panel installation "requires a licensed electrician to undertake the work". NECA's media release (25 July 2011) (Source: NECA) Victoria - Safety and Employment Electrical Safety Checklists WorkSafe Victoria has made available the following electrical safety-related checklists (all dated July 2011): Isolating plant (further information); Permit to work on energised plant (further information); and Safe isolation of machinery (further information). (Source: WorkSafe Victoria) New South Wales - Safety and Employment Safety Bulletin on Failure of Flameproof Equipment The New South Wales Department of Primary Industries and Industry & Investment New South Wales has released Safety Bulletin - Failure of explosion-protection characteristics of flameproof equipment (July 2011), which recommends that: mines should review their systems for the introduction of equipment to site and for in-service maintenance activities for electrical equipment and plant, ensuring the requirements of AS/NZS : Electrical equipment for coal mines - Introduction and maintenance (15 February 2005) have been addressed, including requirements for the inspection of explosion protected (Ex) areas and component parts that are not readily accessible; training systems for personnel that undertake work on Ex equipment at the mine should be reviewed to ensure periodic review of the competency and standards of workmanship of these personnel; mine operators should implement purchase and supply processes that require all unused cable entries on Ex electrical equipment be fitted with certified blanking elements prior to the supply of the equipment to the mine; suppliers of Ex electrical plant and equipment should only supply Ex electrical plant and equipment with all unused gland entries fitted with suitably certified blanking elements; and Safety alerts SA04-23 Unsafe Flameproof Enclosure (1 November 2004) and SA05-02 Unsafe Flameproof Enclosure - Overhauled Auxiliary Fan (9 February 2005) should also be reviewed. (Source: New South Wales Department of Primary Industries; Industry & Investment New South Wales; SAI Global) South Australia - Safety and Employment Hazard of Backfeed in Uninterruptible Power Supplies The South Australian Mining and Quarrying Occupational Health and Safety Committee has released Hazard of backfeed

7 on some UPS units (22 July 2011), which highlights the dangers of uninterruptible power supply (UPS) backfeed voltage energising otherwise isolated circuits when the mains supply is isolated, and recommends that: site procedures be reviewed to ensure UPS units and the systems they supply comply with the safety requirements of the Australian Standards (both dated 3 October 2003): o AS Uninterruptible power systems (UPS) - General and safety requirements for UPS used in operator access areas; and o AS Uninterruptible power systems (UPS) - General and safety requirements for UPS used in restricted access locations; routine maintenance procedures involve checking the provision and operation of backfeed protection circuitry; a '"test for dead" be conducted before handling areas that may be affected by UPS backfeed; and persons be immediately informed of, and all units on the mine site tested to control and manage, this hazard. (Source: South Australian Mining and Quarrying Occupational Health and Safety Committee; SAI Global) Tasmania - Safety and Employment Safety Alert on Electric Shock in Ceiling Spaces Workplace Standards Tasmania (WST) has made available Safety Alert - Electric shock investigations reveal hazards of working in ceiling spaces (July 2011), which provides mitigation recommendations on incidents where "electrical practitioners have made contact with unterminated exposed live conductors in ceiling spaces". (Source: WST) Australian Capital Territory - Safety and Employment Construction Site Evacuated After Electrical Fault The Canberra Times reports that Bloc Constructions' Canberra Avenue construction site was evacuated after an electrical problem caused the cabin of a tower crane to emit sparks and flashes. Reportedly, while workers were immediately told to leave the scene, the cabin operator was forced to remain in the cabin due to fears of the crane "going live", before the crane was declared safe enough to disembark. WorkSafe ACT is reportedly investigating the incident. The Canberra Times: Crane sparks Kingston site shutdown (21 July 2011) (Source: The Canberra Times) 7. Upcoming Dates top National 5 August Closing date for comments to the AER on the Consultation Paper - Issues and AER's preliminary positions - Connection charge guidelines: for accessing the electricity distribution network (further information) - Closing date for comments to the AEMO on the Credit Limits Methodology v8 (Draft) (further information) 12 August Closing date for comments to AEMO on Service Level Procedure: Metering Provider Services Category B for Metering Installations Types 1, 2, 3, 4, 5 and 6 and Service Level Procedure: Metering Data Provider Services Category D for Metering Installations Types 1, 2, 3 and 4 - Draft (further information) - Closing date for comments to the AEMC on the Consultation Paper - National Electricity Amendment (Definition of Temporary Over-Voltage Limits) Rule 2011 (further information) - Closing date for comments to the AER on the Draft exempt selling guideline, the Electricity Network Service Provider Registration Exemption Guideline and the Consultation Paper - AER approach to electricity network service provider exemptions (further information) 19 August Closing date for comments to the AER on the Draft Retailer of Last Resort Consultation Package (further information) 26 August Closing date for comments to Ausgrid on the Consultation Paper - Projected Distribution System Limitations in the Medowie Load Area - Development of Medowie 33/11kV Zone Substation (further information) - Closing date for comments to the AEMC on the Issues Paper - Power of choice - giving consumers options in the way they use electricity (further information) 1 September Closing date for comments to the AEMC on the Draft Rule Determination: National Electricity Amendment (Application

8 and Operation of Administered Price Periods) Rule 2011 (see above) 12 September Closing date for comments to the DCCEE on the Mandatory disclosure of residential building energy, greenhouse and water performance - Consultation RIS (see above) Victoria 15 August Closing date for comments to the ESC on the Ararat Wind Farm - Application for Generation Licence (see above) New South Wales 31 July Closing date for preliminary comments to the DPC to inform the development of the Solar Action Plan, based on outcomes from the NSW Solar and Renewable Energy Summit (further information) 31 August Closing date for comments to the IPART on Regulated monopoly service providers and customer views, preferences and willingness to pay - A report for IPART (see above) Queensland 5 August Closing date for comments to the QCA on the Issues Paper - Review of Regulated Retail Electricity Tariffs and Prices (further information) 12 August Closing date for comments to the AER on the Powerlink Queensland Revenue Proposal and the Proposed Negotiation Transmission Service Criteria for Powerlink - Regulatory control period 1 July June 2017 (further information) Western Australia 5 August Closing date for comments to the ERA on the Electricity Supply Standard Form Contract - Alinta Sales Pty Ltd (further information) - Closing date for comments to the OoE on the Electricity Licence Exemptions - Electric Vehicle Charging Stations - Consultation Paper (see above) 12 August Closing date for comments to the ERA on the Draft Report - Inquiry into the State Underground Power Program Cost Benefit Study (further information) - Closing date for comments to the OoE on the Electricity Licence Exemptions - Blair Fox, Energy Generation & Golden Grove - Consultation Paper (see above) 16 August Closing date for comments to the OoE on the Issues Paper - Interim Amendments to the Electricity Networks Access Code 2004 (further information) Tasmania 12 August Closing date for comments to the AER on the Aurora Energy Regulatory Proposal and the Proposed Negotiation Transmission Service Criteria for Aurora - regulatory control period commencing 1 July 2012 (further information) SAI Global welcomes users' suggestions for improvement to this service. If you have any feedback about this service, please contact helpdesk.asiapac@saiglobal.com. If you wish to unsubscribe from the Regulatory Newsfeeds service, please click here. If you wish to manage your subscription to this service please click here. DISCLAIMER This alert is not intended to be and is not a complete or definitive statement of the law on the relevant subject matter. No person should take any action or refrain from taking any action in reliance upon the contents of this alert without first obtaining advice from a qualified practitioner. SAI Global expressly disclaims liability for any loss or damage suffered howsoever caused whether due to negligence or otherwise arising from the use of this information. For further information or if you have received this notice in error or believe that the has been forwarded to you in breach of our licence terms, please notify SAI Global immediately by telephone on or helpdesk.asiapac@saiglobal.com. Copyright 2011, Anstat Pty Ltd an SAI Global Company ACN All rights reserved.