On behalf of Mr Jihad Dib: I move:
That this bill be now read a second time.
I am pleased to introduce the Electricity Legislation Amendment Bill 2026. The Minns Labor Government is committed to ensuring that New South Wales households and businesses have a reliable, affordable and sustainable energy system. We are working hard to deliver new energy supply to replace the State's ageing coal‑fired power stations and power new, emerging industries. Three of the remaining power stations in New South Wales will retire within the next 10 years. Experts tell us the most cost-effective way to replace them is with renewable energy, backed up by storage and some gas-fired generation. Connecting that new energy supply into the grid requires upgrades to our transmission and distribution networks.
A set of national rules generally governs how these network upgrades are planned. Many of them are big, complex projects. They are planned years in advance by engineers and technical experts. Projects like the renewable energy zones have been planned in various iterations for years. But our energy grid will continue to evolve as our economy grows and electricity use changes over coming decades. Those on this side of the House believe that planning for those changes should be led by government, acting in the interests of the State. The previous Government sold off the New South Wales electricity grid. In doing so, it put the planning of our electricity networks in private hands. The central goal of this bill is to futureproof our energy grid and network planning system. We are bringing control of transmission planning back into public hands.
The 2025 Transmission Planning Review was tasked with undertaking a comprehensive review and proposing optimal planning arrangements for New South Wales. The review panel noted that the NSW Electricity Infrastructure Roadmap created opportunities to accelerate transmission planning and improve the timely delivery of critical infrastructure. But it also found that electricity network planning across State and national frameworks can be fragmented. As we look to the future, it is critical we address those issues. This bill implements key elements of the Government's response to the review by establishing a legislative framework to coordinate whole‑of‑system network planning in New South Wales. That is pivotal to ensuring that reliable energy can be provided to New South Wales consumers at the least cost.
The bill will also enhance network safety, and the safety of other metallic infrastructure, by updating the framework for regulating corrosion protection systems and sources of stray current leakage. These measures will allow for more robust compliance and enforcement, and will protect the public and infrastructure from the risks of unmitigated stray current that can accelerate the corrosion of critical infrastructure. The bill also contains miscellaneous reforms to clarify regulation‑making powers related to the remote de‑energisation and re‑energisation of a small customer's premises. The bill will also make several necessary amendments to minimise administrative burden and improve the operation of existing policy.
The transformation of the New South Wales energy system is driving one of the largest infrastructure programs in the State's history. As coal-fired power stations retire and electricity demand continues to grow, we need a planning framework that ensures that investment in transmission and network infrastructure is coordinated, efficient and focused on the long-term interests of consumers. At present, responsibility for planning the future electricity network is spread across multiple State and national processes. This can make it more difficult for communities, investors and industry to understand what infrastructure is needed, when it is required, and how it may be delivered. The bill establishes a modern framework for whole‑of‑system electricity network planning in New South Wales.
At the centre of those reforms is the creation of a 20‑year New South Wales system plan. The bill amends the Electricity Infrastructure Investment Act 2020, or EII Act, to establish a requirement for an infrastructure planner to deliver a comprehensive 20-year New South Wales system plan. EnergyCo will be appointed to that infrastructure planner role. The purpose of the system plan is to deliver integrated, efficient electricity infrastructure planning and provide important long-term transparency. In preparing the New South Wales system plan, the infrastructure planner will work closely with network operators, national market bodies, the Consumer Trustee and other key stakeholders. Consultation with consumer representatives and affected communities will also form an important part of the planning process. The requirement for this consultation will be specified in subsequent regulation.
The New South Wales system plan will identify the anticipated requirements of the New South Wales electricity system over the next 20 years. The infrastructure planner will have regard to the Consumer Trustee's report about the infrastructure investment objectives in identifying these needs. Where possible, these will align with national processes like the Australian Energy Market Operator [AEMO] Integrated System Plan. The New South Wales system plan will then identify strategic projects that may be required to address those requirements. The infrastructure planner will have discretion in determining the strategic projects included in the plan. Strategic projects may include projects being progressed by network service providers under the national arrangements, as well as those being planned by an infrastructure planner under the EII Act. It may also include non-network options. The purpose is to have one report which identifies projects in one place, so communities, electricity customers, generators and investors can see what is planned, rather than having to digest five reports to get the same information.
The New South Wales system plan will also set out how the strategic projects may be delivered, including guidance on applicable cost recovery arrangements and indicative assessment of potential procurement pathways. This is a chance to signal clearly to potential investors, network operators and construction firms about when the infrastructure planner considers these projects are likely to be needed. Together, these provisions will provide much-needed clarity about the priorities for the State's electricity network. The bill includes supporting provisions relating to the preparation, review and publication of the New South Wales system plan, ensuring that it remains current and aligned with national planning processes over time.
The bill also includes regulation-making powers to support the operation of these reforms. This includes the content that must be included in the New South Wales system plan, the matters the infrastructure planner must consider when drafting the plan, and the requirements for consultation and ongoing review. To ensure that the infrastructure planner can perform these duties effectively, the bill will make compliance with information requests a mandatory licence condition for all New South Wales network operators. Together, these provisions will equip the infrastructure planner to set out a coherent, reliable and transparent long-term roadmap for the State grid.
The bill also enables better integration of New South Wales electricity network planning and processes under the National Electricity Rules. The bill enables regulations to modify the application of the National Electricity Law and National Electricity Rules to facilitate the appointment of the infrastructure planner as the jurisdictional planning body for New South Wales. EnergyCo will be appointed to perform these functions within the framework established by the bill and supporting regulations. The joint planning body performs statutory functions under the National Electricity Rules to support AEMO in its functions as national transmission planner, which includes developing the Integrated System Plan. Appointing EnergyCo to this role brings strategic network planning back into public hands and builds on EnergyCo's existing role of delivering renewable energy zones and other critical energy infrastructure across New South Wales.
To support EnergyCo to exercise the joint planning body functions, the bill allows regulations to be made to change how parts of the National Electricity Law and the National Electricity Rules apply in New South Wales. Transgrid, as the primary transmission operator in New South Wales, will retain certain specialised technical functions and will be subject to joint planning obligations to be established between the infrastructure planner, network service providers and the Australian Energy Market Operator [AEMO].
Furthermore, regulations will require network service providers such as Transgrid, Ausgrid, Endeavour Energy and Essential Energy, as well as AEMO and the Consumer Trustee, to consider the New South Wales system plan when preparing their own planning reports. The bill also introduces a requirement for AEMO's concurrence before making any regulation that directly affects AEMO's functions. The infrastructure planner will also be required to consult on and publish guidelines detailing how it exercises its duties. Together, these reforms will create a more integrated planning framework, reduce duplication, improve transparency and provide clearer signals about future infrastructure needs.
The bill also modernises the State's framework for managing corrosion protection systems and stray current leakage. Stray current leakage occurs when electrical current escapes from its intended path and enters surrounding conductive materials such as soil, water or metal structures. It originates from electrical systems like rail networks, electricity networks, battery systems, industrial equipment or other large-scale electrical systems. Stray current leakage can cause significant long-term damage through accelerated corrosion of critical infrastructure, including gas and water pipelines and reinforced concrete structures. It can also pose risks to public safety in the form of electric shock and interfere with signalling, communications and other essential services.
In some cases, it can result in environmental harm through leaks from gas and wastewater pipelines or contamination of soil and groundwater. While these risks are significant, the current legislative framework has not kept pace with modern industry practices and provides limited regulatory tools to manage emerging risks. The bill addresses this by introducing a contemporary regulatory framework that will ensure existing corrosion protection systems and sources of stray current leakage are managed in accordance with current Australian standards and best-practice approaches.
The reforms strengthen compliance and enforcement powers; enable the appointment of investigators with appropriate inspection and monitoring powers; update penalties that have remained largely unchanged since the 1990s; and improve the ability of the Department of Climate Change, Energy, the Environment and Water to address safety risks before serious incidents occur. Appropriate safeguards are included to protect individual rights, including requirements relating to warrants, residential entry and investigator identification. The bill also transfers a number of important operational requirements from regulation into the Act, ensuring greater legislative oversight of the framework. Together, these reforms will reduce risks to public safety, strengthen protection of critical infrastructure and support effective regulation of a high-hazard activity.
The bill also strengthens the legislative basis for the remote energisation and de-energisation of small customer premises through smart meters. These arrangements are already operating under the Electricity Supply (General) Regulation 2026. They allow connections and disconnections to occur more quickly, conveniently and cheaply, which benefits both consumers and service providers. These amendments provide greater legislative certainty for those arrangements. Finally, the bill also contains amendments to enable the Secretary of the Department of Climate Change, Energy, the Environment and Water to delegate functions set out under the Electricity Supply Act and related regulations to an eligible person.
This bill is about preparing New South Wales for the future. As our electricity system undergoes profound change, the way we plan and coordinate network infrastructure must evolve with it. The bill establishes a modern, whole-of-system planning framework centred on a 20-year New South Wales system plan and a single accountable infrastructure planner. With this bill, the Minns Labor Government is bringing transmission planning back into public hands after a decade of privatisation of our electricity grid by the previous Government.
The bill will establish more comprehensive consultation requirements with consumers and communities for future projects. This will improve coordination between State and national planning processes, provide greater transparency for communities and investors and support better long-term outcomes for electricity consumers. The bill also strengthens critical safety protections through a modernised corrosion protection framework and includes a range of supporting amendments to improve the operation of the State's electricity legislation. Together, these reforms will support a more reliable, secure and affordable electricity system for the people of New South Wales. I commend the bill to the House.
