Government Owned Corporations (CERC and NERC Restructure) Regulation 1998

Queensland Government Owned Corporations Act 1993 GOVERNMENT OWNED CORPORATIONS (CERC AND NERC RESTRUCTURE) REGULATION 1998 Reprinted as in force on 14 April 1998 (Regulation not amended up to this date) Reprint No. 1 * This reprint is prepared by the Office of the Queensland Parliamentary Counsel Warning—This reprint is not an authorised copy NOT FURTHER AMENDED LAST REPRINT BEFORE REPEAL See 2004 SL No. 166 s 44 * Minor differences in style between this reprint and another reprint with the same number are due to the conversion to another software program. The content has not changed.

Information about this reprint This regulation is reprinted as at 14 April 1998. Minor editorial changes allowed under the provisions of the Reprints Act 1992 mentioned in the following list have been made to— • use aspects of format and printing style consistent with current drafting practice (s 35) • omit provisions that are no longer required (s 40). See endnotes for information about when provisions commenced.

Queensland GOVERNMENT OWNED CORPORATIONS (CERC AND NERC RESTRUCTURE) REGULATION 1998 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Meaning of “NERC electricity contract” . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PART 2—NERC IS DIVESTED OF ASSETS AND RELEASED FROM LIABILITIES 6 NERC electricity contract assets and liabilities . . . . . . . . . . . . . . . . . . . . . . 7 PART 3—TRANSITION OF NERC’S INTERESTS IN NERC ELECTRICITY CONTRACTS, TRANSFER OF ASSETS AND ASSUMPTION OF LIABILITIES 7 NERC electricity contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Transfer of assets and assumption of liabilities. . . . . . . . . . . . . . . . . . . . . . . 8 9 Pre-transfer day entitlements and obligations of NERC . . . . . . . . . . . . . . . . 8 10 Employees and proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 PART 4—STATE TAX EXEMPTION 11 Exemption from State tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 PART 5—CERC BECOMES SUBSIDIARY OF 6 GOCS AND NERC IS NO LONGER A GOC SUBSIDIARY 12 Declaring changes about CERC and NERC . . . . . . . . . . . . . . . . . . . . . . . . . 9

2 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 ENDNOTES 1 Index to endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2 Date to which amendments incorporated. . . . . . . . . . . . . . . . . . . . . . 11 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 4 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 5 List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

s1 3 s3 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 GOVERNMENT OWNED CORPORATIONS (CERC AND NERC RESTRUCTURE) REGULATION 1998 [reprinted as in force on 14 April 1998] PART 1—PRELIMINARY 1 Short title This regulation may be cited as the Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 . 2 Commencement (1) Part 2 commences on 2 April 1998. (2) Parts 3 to 5 commence on 3 April 1998. (3) Part 6 commences on 4 April 1998. 3 Purpose The purpose of this regulation is— (a) to divest certain assets from, and release certain liabilities of, NERC; and (b) to transfer the assets and liabilities mentioned in paragraph (a) to CERC; and (c) to provide for certain contracts to apply to CERC in place of NERC; and (d) to exempt certain GOCs and GOC subsidiaries from State tax for transactions under, and associated with, this regulation; and (e) to provide that CERC is a subsidiary of additional GOCs; and

s4 4 s4 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 (f) to provide that NERC is no longer a subsidiary of 1 or more company GOCs. 4 Definitions In this regulation— “CEC” means Capricornia Electricity Corporation Limited (A.C.N. 078 848 601). “CERC” means Central Electricity Retail Corporation Pty Ltd (A.C.N. 078 875 902). “customer” see Electricity Act 1994 , section 23(1). 1 “customer retail services” , for premises, see Electricity Act 1994 , schedule 5. 2 “excluded asset” means NERC’s entitlement to be paid an amount if— (a) the amount is due and payable under a NERC electricity contract before the transfer day; or (b) the amount is payable, but not due for payment, under a NERC electricity contract before the transfer day. Example for paragraph (b) — NERC’s entitlement to be paid for electricity sold by it before the transfer day even though no account has been issued. “excluded liability” means NERC’s liability to pay an amount if— (a) the amount is due and payable under a NERC electricity contract before the transfer day; or 1 The Electricity Act 1994 , section 23(1) reads as follows— ‘ 23.(1) A “customer” is a person who receives, or wants to receive, a supply of electricity from an electricity entity or special approval holder.’. 2 The Electricity Act 1994 , schedule 5, definition “customer retail services” reads as follows— ‘ “customer retail services” , for premises, means— (a) the sale of electricity to the premises; or (b) the sale of electricity to the premises and providing for— (i) the connection of the premises to a supply network to allow the supply of electricity from the supply network to the premises; and (ii) the supply of electricity from the supply network to the premises.’.

s4 5 s4 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 (b) the amount is payable, but not due for payment, under a NERC electricity contract before the transfer day. “FNQEC” means Far North Queensland Electricity Corporation Limited (A.C.N. 078 848 843). “MEC” means Mackay Electricity Corporation Limited (A.C.N. 078 848 889). “NERC” means Northern Electricity Retail Corporation Pty Ltd (A.C.N. 078 848 496). “NERC electricity contract” see section 5. “NERC electricity contract asset” means an asset of NERC existing by force of a NERC electricity contract other than an excluded asset. “NERC electricity contract liability” means a liability of NERC existing by force of a NERC electricity contract other than an excluded liability. “NQEC” means North Queensland Electricity Corporation Limited (A.C.N. 078 848 978). “premises” see Electricity Act 1994 , schedule 5. 3 “QTSC Stage 2 Regulation” means the Government Owned Corporations (QTSC Restructure—Stage 2) Regulation 1997 . “sell” see Electricity Act 1994 , schedule 5. 4 “SWQEC” means South West Queensland Electricity Corporation Limited (A.C.N. 078 849 171). 3 The Electricity Act 1994 , schedule 5, definition “premises” reads as follows— ‘ “premises” includes— (a) a building or other structure; and (b) a part of a building or other structure; and (c) land where a building or other structure is situated.’. 4 The Electricity Act 1994 , schedule 5, definition “sell” reads as follows— ‘ “sell” includes— (a) sell by wholesale, retail or auction; and (b) agree, attempt or offer to sell; and (c) possess, expose or advertise for sale; and (d) cause or permit to be sold; and (e) give away or swap.’.

s5 6 s5 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 “transfer day” means 3 April 1998. “WBBEC” means Wide Bay-Burnett Electricity Corporation Limited (A.C.N. 078 849 206). 5 Meaning of “NERC electricity contract” In this regulation— “NERC electricity contract” means a contract (including a contract applying to NERC under section 12(2) 5 or 13(2) 6 of the QTSC Stage 2 Regulation) in force immediately before the transfer day if it is— (a) a contract between NERC and a customer taken to have been entered into— (i) after 30 June 1997 under the Electricity Act 1994 , section 40AA(1) 7 as in force before the commencement of the Electricity Amendment Act (No. 3) 1997, section 14; or (ii) after 30 June 1997 under the Electricity Act 1994 , section 49(3) and (4) 8 as in force before the commencement of the Electricity Amendment Act (No. 3) 1997, section 24; or (iii) under the Electricity Act 1994 , section 49(4); 9 or (iv) under the Electricity Act 1994 , section 49A(2) or (3); 10 or (b) a contract, other than a contract mentioned in paragraph (a), between NERC and a customer of NERC for the supply of customer retail services for the customer’s premises; or (c) a contract between NERC and another person— (i) to buy or sell electricity; or 5 Section 12 (Instruments about QTSC) 6 Section 13 (Instruments about regional corporations) 7 Section 40AA (Supply in absence of customer connection contract) 8 Section 49 (Sale of electricity in retail area) 9 Section 49 (Obligation to provide customer retail services to non-contestable customers) 10 Section 49A (Sale if no customer sale contract)

s6 7 s7 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 (ii) to pay or receive an amount determined by reference to the price (wholesale or otherwise) of electricity; or (iii) for a purpose connected with a contract mentioned in subparagraph (i) or (ii). PART 2—NERC IS DIVESTED OF ASSETS AND RELEASED FROM LIABILITIES 6 NERC electricity contract assets and liabilities (1) This section takes effect immediately after 2 April 1998. (2) NERC is divested of all NERC electricity contract assets and released from all NERC electricity contract liabilities. PART 3—TRANSITION OF NERC’S INTERESTS IN NERC ELECTRICITY CONTRACTS, TRANSFER OF ASSETS AND ASSUMPTION OF LIABILITIES 7 NERC electricity contracts (1) A NERC electricity contract is to apply to CERC in place of NERC. (2) Without limiting subsection (1)— (a) a NERC electricity contract to which, immediately before the transfer day, NERC was a party, is taken to be a contract to which CERC is a party; and (b) a NERC electricity contract given to, by or in favour of NERC is taken to be a contract given to, by or in favour of CERC; and (c) a NERC electricity contract in which a reference is made to NERC (including, for example, an instrument to which NERC was a party) is taken to be a contract in which the reference is made to CERC; and

s 8 8 s 10 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 (d) a NERC electricity contract under which an amount is or may become payable to or by NERC is taken to be a contract under which the amount is or may become payable to or by CERC; and (e) a NERC electricity contract under which other property is to be, or may become liable to be, transferred, conveyed or assigned to or by NERC is taken to be a contract under which the other property is to be, or may become liable to be, transferred, conveyed or assigned to or by CERC. 8 Transfer of assets and assumption of liabilities (1) The assets mentioned in section 6(2) 11 become the assets of CERC. (2) The liabilities mentioned in section 6(2) are assumed by CERC. 9 Pre-transfer day entitlements and obligations of NERC To avoid doubt, and without limiting section 7, it is declared that— (a) an amount received or recovered by CERC under a NERC electricity contract but arising out of an excluded asset must be paid by CERC to NERC; and (b) an amount paid by CERC under a NERC electricity contract but arising out of an excluded liability must be paid by NERC to CERC. 10 Employees and proceedings To avoid doubt, it is declared that— (a) a person who, immediately before the transfer day, was an employee of NERC does not, under this regulation, become an employee of CERC; and (b) a proceeding by or against NERC, including any proceeding arising out of acts or omissions of NERC, that is not finished before the transfer day must be continued and finished by or against NERC. 11 Section 6 (NERC electricity contract assets and liabilities)

s 11 9 s 12 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 PART 4—STATE TAX EXEMPTION 11 Exemption from State tax (1) CERC is exempt from liability to pay State tax for anything done (including, for example, a transaction entered into or an instrument made, executed, lodged or given) because of or for a purpose connected with or arising out of— (a) part 2 or 3 of this regulation; or (b) FNQEC, MEC and NQEC transferring to CERC all issued shares held in NERC. (2) CERC, FNQEC, MEC, NQEC, SWQEC and WBBEC are exempt from liability to pay State tax for anything done (including, for example, a transaction entered into or an instrument made, executed, lodged or given) because of or for a purpose connected with or arising out of FNQEC, MEC or NQEC transferring to CERC all issued shares held in NERC. (3) NERC is exempt from liability to pay State tax for the following— (a) the divesting of assets and release of liabilities under section 6; (b) the applying of NERC electricity contracts to CERC in place of NERC under section 7; (c) the transfer of assets to, and assumption of liabilities by, CERC under section 8. PART 5—CERC BECOMES SUBSIDIARY OF 6 GOCS AND NERC IS NO LONGER A GOC SUBSIDIARY 12 Declaring changes about CERC and NERC (1) Subsections (2) and (3)—

s 12 10 s 12 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 (a) take effect immediately after the assets and liabilities mentioned in section 6(2) 12 become, under section 8, 13 the assets and liabilities of CERC; and (b) apply despite anything in section 21(4) and (5) 14 of the QTSC Stage 2 Regulation. 15 (2) CERC is a subsidiary of each of CEC, FNQEC, MEC, NQEC, SWQEC and WBBEC. (3) NERC stops being a subsidiary of a GOC. 12 Section 6 (NERC electricity contract assets and liabilities) 13 Section 8 (Transfer of assets and assumption of liabilities) 14 Section 21 (Declaration of GOCs and subsidiaries) 15 Section 21(4) and (5) of the QTSC Stage 2 Regulation 1997 declared CERC and NERC to be subsidiaries of certain GOCs. This section makes further declarations about CERC and NERC, superseding the earlier declarations.

11 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 ENDNOTES 1 Index to endnotes Page 2 Date to which amendments incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 3 Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 4 List of legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 5 List of annotations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 2 Date to which amendments incorporated This is the reprint date mentioned in the Reprints Act 1992, section 5(c). However, no amendments have commenced operation on or before that day. Future amendments of the Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 may be made in accordance with this reprint under the Reprints Act 1992, section 49. 3 Key Key to abbreviations in list of legislation and annotations Key AIA amd amdt ch def div exp gaz hdg ins lap notfd o in c om orig p para prec pres Explanation = Acts Interpretation Act 1954 = amended = amendment = chapter = definition = division = expires/expired = gazette = heading = inserted = lapsed = notified = order in council = omitted = original = page = paragraph = preceding = present Key prev (prev) proc prov pt pubd R[X] RA reloc renum rep s sch sdiv SIA SIR SL sub unnum Explanation = previous = previously = proclamation = provision = part = published = Reprint No.[X] = Reprints Act 1992 = relocated = renumbered = repealed = section = schedule = subdivision = Statutory Instruments Act 1992 = Statutory Instruments Regulation 1992 = subordinate legislation = substituted = unnumbered

12 Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 4 List of legislation Government Owned Corporations (CERC and NERC Restructure) Regulation 1998 SL No. 69 made by the Governor in Council on 2 April 1998 notfd gaz 2 April 1998 pp 1335–6 pt 2 commenced 2 April 1998 (see s 2(1)) pts 3–5 commenced 3 April 1998 (see s 2(2)) pt 6 commenced 4 April 1998 (see s 2(3)) remaining provisions commenced on date of notification exp 2 April 2008 (see SIA s 54) 5 List of annotations PART 6—AMENDMENT OF OTHER GOC REGULATIONS pt 6 (s 13) om R1 (see RA s 40) SCHEDULE—AMENDMENT OF OTHER GOC REGULATIONS om R1 (see RA s 40) © State of Queensland 2004