Electricity Industry Amendment (Capital Charges) Act 2026
Electricity Industry Amendment (Capital Charges) Act 2026
Western Australia
Electricity Industry Amendment (Capital Charges) Act 2026
Contents
Part 1 — Preliminary
1.Short title2
2.Commencement2
Part 2 — Amendments commencing on day after Royal Assent
3.Electricity Industry Act 2004 amended3
4.Part 9C inserted3
Part 9C — Capital Charges Scheme
129U.Objective of Part3
129V.Terms used3
129W.Capital charges for access to services4
129X.Adjustment mechanisms5
129Y.Modification of regulations to implement or facilitate additional circumstances6
129Z.Code may also deal with certain matters6
129ZA.Relationship between regulations and Code7
129ZB.Recommendation of Minister7
129ZC.Coordinator’s review8
129ZD.Disclosure of information to Coordinator8
5.Part 12 inserted9
Part 12 — Transitional provisions for Electricity Industry Amendment (Capital Charges) Act 2026
147.Terms used9
148.Transitional regulations9
149.Minister may deal with transitional matters10
Part 3 — Amendments commencing with Electricity Industry Amendment (Distributed Energy Resources) Act 2024 Part 3
6.Electricity Industry Act 2004 amended12
7.Section 129W amended12
8.Section 129Y amended12
9.Section 129Z amended12
10.Section 129ZA deleted13
11.Section 149 amended13
Electricity Industry Amendment (Capital Charges) Act 2026
An Act to amend the Electricity Industry Act 2004.
[Assented to 19 August 2026]
The Parliament of Western Australia enacts as follows:
This is the Electricity Industry Amendment (Capital Charges) Act 2026.
This Act comes into operation as follows —
(a)Part 1 — on the day on which this Act receives the Royal Assent (assent day);
(b)Part 3 —
(i)if the Electricity Industry Amendment (Distributed Energy Resources) Act 2024 section 53 comes into operation on or before assent day — on the day after assent day; or
(ii)otherwise — immediately after the Electricity Industry Amendment (Distributed Energy Resources) Act 2024 section 53 comes into operation;
(c)the rest of the Act — on the day after assent day.
Part 2 — Amendments commencing on day after Royal Assent
3.Electricity Industry Act 2004 amended
This Part amends the Electricity Industry Act 2004.
After section 129T insert:
Part 9C — Capital Charges Scheme
(1)The objective of this Part is to establish a scheme to support connections to certain transmission systems that is consistent with the State electricity objective.
(2)To achieve this objective, this Part aims to —
(a)increase certainty for charges for access to services provided by means of the systems by providing for the imposition of capital charges; and
(b)ensure that, over a certain period, the network service providers who operate the systems do not earn more revenue than would have been permitted under Part 8 if this Part had not come into operation.
(1)In this Part —
adjustment mechanism has the meaning given in section 129X(1);
capital charge has the meaning given in section 129W(2);
relevant network means —
(a)any transmission system that is part of the South West interconnected system that is regulated under Part 8; and
(b)any other transmission system prescribed by the regulations.
(2)If a term used in this Part is given a meaning in section 103, it has the same meaning in this Part.
(3)The regulations may prescribe a transmission system as a relevant network only if the system is regulated under Part 8.
129W.Capital charges for access to services
(1)In this section —
related entity, of a person —
(a)means a related body corporate as defined in the Corporations Act 2001 (Cth) section 9; and
(b)includes any other person prescribed by the regulations.
(2)A person is required to pay a capital charge to a network service provider if —
(a)the person enters into, or modifies, an access agreement in the circumstances, if any, prescribed by the regulations and, under the access agreement, the person has access to services provided by the network service provider by means of a relevant network; or
(b)an additional circumstance, if any, specified in the Code exists in which the person has access to services provided by the network service provider by means of a relevant network.
(3)The regulations may make provision for or in relation to the following —
(a)the amount of the capital charge, including —
(i)a method for calculating the amount; and
(ii)indexation of the amount;
(b)the circumstances in which the capital charge is payable, including eligibility criteria for determining which persons or classes of persons are required to pay the capital charge;
(c)different capital charge amounts payable in different circumstances, including by reference to the following —
(i)a relevant network;
(ii)a network service provider;
(iii)the rate at which the person may transfer electricity into or out of a relevant network.
(4)Without limiting subsection (2)(b), an additional circumstance may include a person, or a related entity of the person —
(a)making an application to enter into or modify an access agreement that provides for access to the services; or
(b)having access to the services under, or in accordance with, any other contract or agreement or a determination made by way of arbitration.
(1)If a regulation made under this Part prescribes circumstances in which a person is required to pay a capital charge, the regulation must also provide for a requirement (an adjustment mechanism) designed to ensure that, over a certain period, a network service provider does not earn more revenue than would have been permitted under Part 8 if this Part had not come into operation.
(2)Without limiting subsection (1), the regulations may make provision for or in relation to the following —
(a)the way in which an adjustment mechanism must be implemented or facilitated;
(b)the period during which an adjustment mechanism applies, including a method for determining the period;
(c)authorising the Authority to determine or implement an adjustment mechanism.
129Y.Modification of regulations to implement or facilitate additional circumstances
(1)If the Code specifies an additional circumstance under section 129W(2)(b), the Code may modify a regulation made under this Part to the extent necessary for the purposes of adapting the application of the regulation to or in relation to the circumstance.
(2)This section has effect despite section 129ZA.
129Z.Code may also deal with certain matters
(1)In this section —
relevant instrument means —
(a)an instrument published or approved under the Code; and
(b)any type of contract or agreement specified in the Code under which a person has access to services provided by means of a relevant network.
(2)Without limiting section 104B or 105, the Code may make provision for or in relation to the following —
(a)the way in which a capital charge is payable, including payment by instalments, the charging of interest on capital charge amounts and the use of guarantees as security;
(b)the maintenance and keeping of records of revenue earned by a network service provider from a capital charge, including the method of maintaining and keeping the records;
(c)the way in which an adjustment mechanism must be implemented or facilitated;
(d)a requirement for a relevant instrument to facilitate or otherwise provide for a requirement under this Part;
(e)any other matter prescribed by the regulations.
129ZA.Relationship between regulations and Code
If there is a conflict or inconsistency between regulations made under this Part and the Code, the regulations prevail to the extent of the conflict or inconsistency.
129ZB.Recommendation of Minister
(1)Regulations may only be made under this Part on the recommendation of the Minister.
(2)The Minister may make the recommendation only if the Minister is satisfied that the regulations are consistent with —
(a)the objective of this Part; and
(b)the State electricity objective.
(1)The Coordinator must review and report on whether the scheme established by this Part is consistent with the objective of this Part and the State electricity objective —
(a)as soon as practicable after the 5th anniversary of the day on which this Part comes into operation; and
(b)after that, at intervals of not more than 5 years.
(2)The Coordinator must, as soon as practicable after preparing the report, provide the report to the Minister.
129ZD.Disclosure of information to Coordinator
(1)The Authority must, on the request of the Coordinator, disclose to the Coordinator any information necessary to enable the Coordinator to perform the Coordinator’s functions under section 129ZC.
(2)If information is disclosed under this section —
(a)no civil or criminal liability is incurred for the disclosure; and
(b)the disclosure is not —
(i)a breach of any duty of confidentiality or secrecy imposed by law; or
(ii)a breach of professional ethics or standards or any principles of conduct applicable to a person’s employment; or
(iii)unprofessional conduct.
After section 146 insert:
Part 12 — Transitional provisions for Electricity Industry Amendment (Capital Charges) Act 2026
In this Part —
amendment Act means the Electricity Industry Amendment (Capital Charges) Act 2026;
commencement day means the day on which the amendment Act section 4 comes into operation;
publication day, in relation to transitional regulations, means the day on which the transitional regulations are published in accordance with the Interpretation Act 1984 section 41(1)(a);
transitional event means the following —
(a)the enactment or coming into operation of the amendment Act;
(b)the coming into operation of regulations made under Part 9C, as inserted by the amendment Act;
transitional matter means a matter of a transitional, savings or application nature;
transitional regulations means regulations made under section 148.
(1)The regulations may make provision for and in relation to transitional matters arising in connection with a transitional event.
(2)Transitional regulations may provide that a specified state of affairs is taken to have existed, or not to have existed, earlier than publication day, but not earlier than commencement day.
(3)If transitional regulations contain a provision referred to in subsection (2), the provision does not operate so as to —
(a)affect in a manner prejudicial to any person (other than the State or a public authority), the rights of that person existing before publication day; or
(b)impose liabilities on any person (other than the State or a public authority) in respect of anything done or omitted to be done before publication day.
149.Minister may deal with transitional matters
(1)In this section —
existing instrument means a relevant instrument published, approved or entered into before commencement day;
relevant instrument has the meaning given in section 129Z(1).
(2)Transitional regulations may authorise the Minister to, by order published in accordance with the Interpretation Act 1984 section 41(1)(a) —
(a)determine how any matter in progress immediately before a day (not earlier than commencement day) specified in the order is to be treated on and after that day; and
(b)amend an existing instrument to facilitate or provide for, or as a consequence of, a transitional matter.
(3)The Code may provide for how anything done or in progress or required to be done under an existing instrument in relation to a transitional matter is to be treated from a day, not earlier than commencement day, specified in the Code.
Part 3 — Amendments commencing with Electricity Industry Amendment (Distributed Energy Resources) Act 2024 Part 3
6.Electricity Industry Act 2004 amended
This Part amends the Electricity Industry Act 2004.
In section 129W(2)(b) delete “Code” and insert:
electricity system and market rules
(1)In section 129Y(1):
(a)delete “Code specifies” and insert:
electricity system and market rules specify
(b)delete “Code” (2nd occurrence) and insert:
rules
(2)Delete section 129Y(2).
(1)In section 129Z(1) in the definition of relevant instrument:
(a)in paragraph (a) delete “Code; and” and insert:
electricity system and market rules; and
(b)in paragraph (b) delete “Code” and insert:
rules
(2)In section 129Z(2) delete “Code” and insert:
electricity system and market rules
Note: The heading to amended section 129Z is to read:
Electricity system and market rules may also deal with certain matters
Delete section 129ZA.
(1)In section 149(1) delete the definition of relevant instrument and insert:
relevant instrument —
(a)has the meaning given in section 129Z(1); and
(b)includes an instrument that was a relevant instrument under section 129Z(1) as in force immediately before the day on which the Electricity Industry Amendment (Distributed Energy Resources) Act 2024 section 53 came into operation.
(2)In section 149(3):
(a)delete “Code” (1st occurrence) and insert:
electricity system and market rules
(b)delete “Code.” and insert:
rules.
© State of Western Australia 2026. This work is licensed under a Creative Commons Attribution 4.0 International Licence (CC BY 4.0). To view relevant information and for a link to a copy of the licence, visit www.legislation.wa.gov.au. Attribute work as: © State of Western Australia 2026. By Authority: ANDREW JONES, Government Printer