The Electricity Industry Act 2004 (the Act) governs the operation and regulation of the Western Australian electricity industry. The Act provides that a person must not construct or operate generating works, a transmission system or a distribution system without a licence or an integrated regional licence.
Under section 8 of the Act, the Governor may exempt any person or class of persons from requiring a licence for such a purpose. Where granted, licence exemption orders are published in the Government Gazette. In some circumstances a licence exemption may be conditional.
The Office of Energy administers exemptions from licensing as required under section 7 of the Act. Typically, an exemption may apply where generation, transmission or distribution systems occur in isolation, particularly those that occur exclusively on or over an energy operator’s land.
View or download the Electricity Industry Act 2004 by visiting http://www.slp.wa.gov.au/statutes/av.nsf/ooe .
Under the Act, an applicant for a licence exemption is required to demonstrate that granting a licence exemption would not be contrary to the public interest on the following grounds:
(a) Environmental considerations;
(b) Social welfare and equity considerations, including community service obligations;
(c) Economic and regional development, including employment and investment growth;
(d) Interests of customers generally or of a class of customers;
(e) Interests of any licensee, or applicant for a licence, in respect of the area or areas to which the order, if made, would apply;
(f) Importance of competition in electricity industry markets; and
(g) Policy objectives of government in relation to the supply of electricity.
However, other matters may also be taken into account such as safety and reliability issues when determining suitability for a licence exemption.
The Office of Energy considers licence exemptions on its own initiative or on request. Licence exemptions under consideration can be viewed below.
Any person or organisation may make a submission. Submissions will be made public. If aspects of the submission are considered confidential, those aspects should be clearly identified and the reasons for a claim of confidentiality noted in a covering letter.
Written (electronic or hard copy) public comments on licence exemptions under consideration should be provided by close of business (WST) on the date indicated on this website. Submissions may be sent to:
Electricity Licence Exemptions Public Comment:
C/- Coordinator of Energy
Office of Energy
Level 9, Governor Stirling Tower
197 St Georges Terrace
Perth WA 6000
By email: licence-exemptions@energy.wa.gov.au (Electronic submissions are strongly encouraged.)
The Office of Energy will consider proposed licence exemptions and prepare a draft advice for the Minister for Energy. The Governor may grant an exemption on advice from the Minister for Energy.
The draft advice will be made available on this website for further public comment.
General queries about making an application can be addressed to the Office of Energy (address above) or by email to:
licence-exemptions@energy.wa.gov.au. Electronic queries are encouraged.
For more information please contact Mr Leo Zaza at the Office of Energy on (08) 9420 5679
Background on current exemptions under consideration
The Secretariat of the Economic Regulation Authority (the 'ERA') has identified nine licensees being those distributors and transmitters who might be exempted from the requirement to publish annual performance and audit reports under the Electricity Industry (Network Quality and Reliability of Supply) Code. The licensees in the attachment were selected on the basis that they do not directly supply small use customers. The list has subsequently been used by the Office to identify licensees who might by considered for licence exemption. A copy of the Secretariat of the ERA's Schedule is attached in the Office of Energy report below. The licensees identified also appear in the table below.
In the main, they consist of:
Pacific Hydro (North Western Energy) is included on the Secretariat's list but has recently submitted a request for a licence exemption.
Pacific Hydro has two transmission lines connecting its hydro-electric power station at Lake Argyle to Argyle Diamonds and to Horizon Power’s sub-station at Kununurra.
Horizon Power’s interests with respect to its licence obligations to small use customers in Kununurra are protected by contractual arrangements with Pacific Hydro.
Central Norseman supplies power to its own operations on its mining lease via several distribution feeders from its sub-station. Central Norseman has 180 metres of underground distribution cable connecting its 6MW power station to that sub-station.
Horizon Power connects to the sub-station and takes 1MW of power through its own licensed distribution line to supply the Town of Norseman. Therefore, Central Norseman cannot be defined as using the distribution line connecting its generator to its sub-station “purely for its own purposes”, which is required under the current Electricity Industry Exemption Order 2005. As such, Central Norseman requires a distribution licence unless exempted.
The cost of licensing compliance is passed on to Horizon Power. Its interests with respect to its licence obligations to small use customers in Norseman are protected by contractual arrangements with Central Norseman.
Verve has submitted a request to the Office of Energy for an exemption for the proposed 20 kilometre distribution/transmission line from its proposed Grasmere wind farm to the connection point on the SWIS.
In the process of investigation and consultation, it became apparent that the distribution/transmission line connecting all licensed generators to public networks requires a licence. In most cases the generator is connected to the network by 10 to 50 meters of low voltage distribution line to a step up transformer and transmission switch yard which is the connection to the network, or a transmission line connects to the network from the transmission sub station. It seems that in some cases these connections are licensed and in other cases not.
It is possible that such distribution/transmission lines are best handled within a generation licence. This will require a legislative amendment to the definition of generation works in the Electricity Industry Act 2004. In the meantime a licence exemption needs to be considered.
Office of Energy Report
Link to Office of Energy Report [PDF version]
Link to Office of Energy Report [Word version]
Licence under Consideration for Exemption |
Type of Exemption |
Explanation and Possible Conditions |
Closing Date for Public Comment |
Received Public Comment |
Draft Report |
Closing Date for Public Comment on Draft Report |
Public Comment on Draft Report |
Status |
Transmission 14.3km of line from Wagerup Refinery to Western Power Transmission Station at Landwehr |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. Wheeling power through SWIS to large use customer. Public Interest protected by technical and safety standards and Third Party Access Regulation. Could be covered by general exemption to generators for distribution/transmission connection to network. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Transmission 7.4km of line from Pinjarra Refinery to Western Power Sub-Station at Oakley |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. Wheeling power through SWIS to large use customer. Public Interest protected by technical and safety standards and Third party Access Regulation Could be covered by general exemption to generators for distribution transmission connection to network. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Transmission 285km of line for mining operations at Mt Keith, Kalgoorlie and Kambalda. |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. The 2006 NQ&R Report states there are only two large customers – BHP Billiton and Barrick Gold |
1 February 2008 |
No submissions received.
|
Released |
COB WST |
Draft advice released for public comment. | ||
Distribution Servicing own operations 72km of line servicing own operations |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. Only servicing own operations and large use customers. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Distribution 187km of line for mining operations at Mt Keith, Leinster, Kalgoorlie and Kambalda. |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Distribution 20km of line around the Parkeston Power Station. |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Distribution 190m of line connecting output side of generator to switchboard within mine site. |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. Licensing Compliance Costs are relatively high in this circumstance. Public Interest protected by contractual arrangements. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Distribution 4.5km of cable connecting Broome power station to Horizon sub-station in Broome |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. Could be covered by general exemption for generators |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
Transmission 140km of line connecting Ord hydro generation station to Argyle Diamond mine site and Horizon sub-station in Kununurra. |
Identified by the Secretariat of the ERA that might be exempted from the requirement to publish annual performance and audit reports under Reliability Code. They do not directly supply small use customers and have been used by the Office to identify licensees who might be considered for exemption. Licensing Compliance costs relatively high in this circumstance. Public Interest protected by contractual arrangements. |
1 February 2008 |
No submissions received. |
Released |
COB WST |
Draft advice released for public comment. | ||
General (Construction and Operation of Distribution and Transmission lines Connection to Grid) Exemption for Generators. |
Transmission and Distribution Exemption for construction and operating Transmission and Distribution Line Connecting Generators to SWIS and Regional Non Interconnected Networks. |
Issue raised by Verve Energy with respect to possible interconnected for Grasmere Windfarm. Generators require cable to connect to network via step up transformer. Often cable is no more than tens of metres. Generators under 30MW are not required to be licensed except require Transmission or Distribution Licence for connection to Networks. Often high compliance cost relative to public interest in this circumstance. Connections between generators and network may be best regulated under generation licence. Public interest protected by Network Technical and Safety Standards. Third Party Access Regulation and contractual obligations. |
1 February 2008 |
Land Gas and Power Pty Ltd submission | Released |
COB WST |
Draft advice released for public comment. |
