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In 1995, the NSW Government embarked on a restructuring of the electricity generation and distribution sectors. On 1 October 1995, as part of a reduction in the number of electricity distributors, MetNorth Energy was created by proclamation under the Electricity Act 1945 (Act No.13, 1946). (1) On the same day, the "staff, assets, rights and liabilities" of Sydney Electricity were transferred to MetNorth. (2) By the end of February 1996, both the assets and staff of Shortland Electricity, trading as Orion Energy, had been transferred to MetNorth. (3) Between October 1995 and February 1996, Orion Energy and Sydney Electricity continued to operate pending the formal completion of the restructuring process. (4)
On 1 March 1996, MetNorth Energy was reconstituted under the new Energy Services Corporations Act 1995 (Act No.95, 1995) (5) and was re-named EnergyAustralia by regulation commencing on 2 March 1996. (6) In addition to the Energy Services Corporations Act 1995 EnergyAustralia was also governed by the Energy Supply Act 1995 (Act No.94, 1995), relevant sections of the Electricity Supply Act 1945 and the State Owned Corporations Act 1989 (Act No.134, 1989). The new corporation was generally regarded as a merger between Sydney Electricity and Orion Energy. (7)
The role of the new corporation was to perform all functions in relation to energy distribution and to supply cost-effective energy services that satisfied customer requirements. The principal objectives of Energy Australia included (i) to operate successfully as a business including to operate as efficiently as any comparable business; to maximise the State's investment in the Corporation; and to exhibit a sense of social responsibility by showing regard to the community in which it operated; (ii) to conduct its operations in compliance with the principles of ecologically sustained development; (iii) to operate having regard for regional development and decentralisation; (iv) to operate efficient, safe and reliable facilities for the generation of electricity; (v) to be an efficient and reliable supplier of electricity; and (vi) to participate successfully in the wholesale market for electricity. (8)
In addition to its principal functions EnergyAustralia was entitled to provide any facilities or services ancillary to its principal functions and to conduct any businesses which would further its objectives. (9) It was required when acquiring energy to consider all sources especially from renewable reserves, and to consider the impact upon the environment of energy acquisition. (10) The Corporation was also required to encourage the safe, efficient and environmentally sensitive use of energy including electrical installations, and to promote public awareness of the dangers of coming into contact with or damaging energy-producing equipment.
EnergyAustralia was managed by a Board of Directors comprising the Chief Executive Officer, four Directors appointed by the Minister and one by the NSW Labor Council. The remaining Directors were elected by the Shareholders. (11) The Board was accountable to the shareholders. (12) The Chief Executive Officer was appointed by the Board after consultation with the shareholders. (13) The dividend was determined by the shareholders with consultation of the Board. (14)
On 2 March 2011 the name of EnergyAustralia was changed to Ausgrid. (15)
The Electricity Network Assets (Authorised Transactions) Act 2015 (Act No.5, 2015) provided for the transfer of electricity network assets to the private sector or to any public sector agency. The meaning of electricity network assets was defined in the Act as the assets, rights and liabilities of an electricity network State Owned Corporation and associated electricity network land. The Act also provided for the transfer of network infrastructure assets that were wholly owned by an electricity network State Owned Corporation and formed part of or were used in connection with the operation of the distribution system, transmission system or street lighting system of the electricity network State Owned Corporation, meaning the electricity power lines and their supporting or protective structures and conduits; associated equipment; street lighting structures; buildings; plant and machinery (excluding motor vehicles); and, any freehold or leasehold interest in land. (16) Under the Act the transfer of electricity network assets to the private sector was to be by lease with an initial term not exceeding 99 years and the private sector interest in the State's electricity network assets was not to exceed 49%. (17) The asset value of Ausgrid was determined to be $14,752.3 million. (18)
On 1 December 2016 the authorised transaction of Ausgrid's electricity network assets was completed. (19) On 1 December 2016 following this transaction the electricity network State Owned Corporation known as Ausgrid was converted into a corporation constituted as a Ministerial Holding Corporation with the name Alpha Distribution Ministerial Holding Corporation. (20) Immediately before the conversion Ausgrid ceased to be a statutory State owned corporation for the purposes of the State Owned Corporations Act 1989. It also ceased to be an energy services corporation under the Energy Services Corporations Act 1995 unless the regulations provided otherwise and its board of directors was dissolved. (21)
Endnotes
1. NSW Government Gazette No.118, 27 September 1995, p.6920.
2. Ibid., p.6932
3. Ibid., p.6930; NSW Government Gazette No.25, 29 February 1996. P.829.
4. Orion Energy - Insight, October 1995 (NRS 21149/3).
5. NSW Government Gazette No.26, 1 March 1996, pp.943-44.
6. Ibid., p.833; Energy Services Corporations Act 1995 (Act No.95, 1995), Sch.1.
7. Energy Australia Annual Report 1996, pp.4, 5.
8. Energy Services Corporations Act, 1995, s.8.
9. Ibid. s.9 (3).
10. Ibid. s.9 (4).
11. Ibid. Schedule 2 No. 1.
12. Ibid. s.1(6).
13. Ibid. Schedule 2 No.2.
14. Ibid. Schedule 2 No.4.
15. Energy Services Corporations Amendment (Change of Name) Regulation 2011 (2011 No 105); notified on NSW Legislation website, 2 March 2011.
16. Electricity Network Assets (Authorised Transactions) Act 2015 (Act No.5, 2015), ss.3-5.
17. Ibid., s.5 (1).
18. Ibid., s.6 (3) (a).
19. NSW Government Gazette No.103, 1 December 2016, p.3367 Completion order - Ausgrid Authorised Transaction.
20. Ibid., Order under clause 6 (1) of Schedule 7.
21. Electricity Network Assets (Authorised Transactions) Act 2015, Schedule 7 cl.6 (a), (b) and (d).
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