TransGrid network exemption

On 30 January 2015 the AER granted TransGrid an individual exemption from registration for the Deer Park Terminal Station. In accordance with NSW legislation for the sale of the business of TransGrid, on 16 December 2015 TransGrid nominated NSW Electricity Networks Operations Pty Limited (ACN 609 169 959) as trustee for the NSW Electricity Networks Operations Trust as the Applicant for this exemption ("the Applicant").

This terminal station will be owned by the Applicant and will provides services to the Australian Energy Market Operator and to the Victorian electricity distributor Powercor. The exemption is subject to 14 conditions. The conditions are set out in full in the AER's Notice of Decision to Grant Exemption, 30 January 2015. Copies may be obtained in response to a written request addressed to AERInquiryaer [dot] gov [dot] au (AERInquiry[at]aer[dot]gov[dot]au), quoting document reference D15/3239. This exemption is classed as AER charge group 'D'.

Conditions

1. The conditions for exemption set out in the AER’s Electricity Network Service Provider Registration Exemption Guideline, 27 August 2013, do not apply.
2. The Exemption is limited to the Deer Park Terminal Station.
3. Subject to clause 4, the Applicant must comply with all of the provisions of the NER as if it were registered as a Network Service Provider in respect of the Deer Park Terminal Station.
4. The Applicant need not comply with the provisions of Chapter 6A of the NER, except clause 6A.9.5, which requires it to have and apply an approved Negotiating Framework.
5. Except to the extent that the Applicant is exempt from such a requirement or such a requirement does not otherwise apply, the Applicant must be the holder of a licence to transmit electricity under the Electricity Industry Act, 2000 (Vic).
6. The Applicant must maintain the Deer Park Terminal Station at least to the standards specified in any legislation applicable to the Applicant or to the Deer Park Terminal Station if the Applicant were registered in accordance with the NER.
7. The Applicant must install, operate and maintain the Deer Park Terminal Station in accordance with all applicable requirements for the safety of persons and property that are binding on the Applicant in respect of the Deer Park Terminal Station.
8. The Project Documents must at all times include a mechanism for the resolution of disputes arising under the Project Documents.
9. This Exemption takes effect on and from the date of execution of the Project Documents as notified by the Applicant to the AER.
10. If the Applicant becomes aware that any condition of this Exemption is not satisfied, the Applicant must promptly (and, in any event, within one month) notify the AER.
11. This Exemption terminates on the date that:
    1. the Applicant is dissolved; or
    2. the AER repeals this Exemption.
12. The Network Service Charges that are to be paid by AEMO and Powercor for the Deer Park Terminal Station must be no greater than the charges that have been determined pursuant to the Project Documents.
13. The Network Service Charges must clearly differentiate between charges to be paid by AEMO as charges for the provision of Shared Network Capability Services and by Powercor as charges for the provision of Designated Pricing Proposal Services.
14. The Network Service Charges apply for the agreed term stipulated under the Project Documents (initially 30 years) and any extension of the agreed term.