Licence Exemptions under the Electricity Industry Act 2004
The Electricity Industry Act 2004 (the Act) governs the operation and regulation of the Western Australian electricity industry. The Economic Regulation Authority (the Authority) issues electricity generation, transmission, distribution, retail and integrated regional licences. The Act provides a range of mechanisms by which the Authority is able to enforce compliance with licences.
Under the Act a person cannot without a licence:
- construct or operate generating works;
- construct or operate a transmission system;
- construct or operate a distribution system; or
- sell electricity.
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.
Public Interest
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:
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Environmental considerations;
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Social welfare and equity considerations, including community service obligations;
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Economic and regional development, including employment and investment growth;
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Interests of customers generally or of a class of customers;
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Interests of any licensee, or applicant for a licence, in respect of the area or areas to which the order, if made, would apply;
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Importance of competition in electricity industry markets; and
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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.
Consideration of Licence Exemption
The Office of Energy considers licence exemptions on its own initiative or on request.
Process
When the Office of Energy considers a proposed licence exemption it provides a report on the exemption for public comment. Following the public comment stage, the Office of Energy makes a recommendation to the Minister for Energy on whether or not an exemption should be granted. The Governor may grant an exemption on advice from the Minister for Energy.
Public Comment
Licence exemptions under consideration will be made available on this page for public comment, unless otherwise agreed with the Office of Energy. Any person or organisation may make a submission. The Office of Energy will publish on its website the submissions it receives. However, if aspects of a submission are considered confidential, those aspects should be clearly identified and the reasons for a claim of confidentiality noted in a covering letter.
Further Information
General queries about making an application can be addressed to the Office of Energy.
By post to:
Licence Exemptions
C/- Regulatory Framework Branch
Office of Energy
Level 9, Govenor Stirling Tower
197 St George’s Terrace
PERTH WA 6000
Email to: licence-exemptions@energy.wa.gov.au. Electronic queries are encouraged. For more information please contact Mr Alex Kroon at the Office of Energy on (08) 9420 5738.
If you have a query about the licensing of electrical workers and contractors please contact EnergySafety on (08) 9422 5200 or by email to energylicensing@doc.wa.gov.au
