'TasHydro', the Tasmanian government-owned Corporation, generates all of Tasmania's renewable electricity (wind, solar and hydro-electric). This electricity is generated for distribution and sale to Tasmanian electricity consumers. To date, the excess electricity generated has been sent to mainland Australia through the 'Basslink', an electrical connector. Tasmania contributes this as part of its participation in the 'National Electricity Market' (NEM), which comprises Victoria, Tasmania, NSW, Queensland, and South Australia. However, once the second Bass Strait connector (Marinus) is established in 2025, Tasmania will be responsible for supplying 25% of the NEM's electricity from its renewable energy resources.

AS a result of the South Australian Black Event in April 2016, when South Australia lost all power as a result of the coalescence of storm activity and a failed connector from Victoria, the Commonwealth Government introduced the Secure Electricity Infrastructure Act 2022(Cth) (SEIA), with s 3 requiring all electricity infrastructure (wind turbines, solar panels, hydroelectric facilities, transmission lines, distribution lines, household lines, and interconnectors) to be regulated by the newly established National Electricity Infrastructure Agency (NEIA)from 1 June 2022.

At present, all electrical infrastructure in Tasmania is regulated under the Tasmanian Renewable Energy Act 1972(Tas) (TREA). Section 3 of the TREA establishes a regulator, the Tasmanian Electrical Authority(TEA), and s4 of the TREA mandates that all electrical infrastructure that supplies electricity to Tasmanian Homes must be regulated by TEA to ensure safety and compliance with Tasmanian electrical standards and codes.

The Tasmanian Government claims the Secure Electricity Infrastructure Act 2022(Cth) is invalid on four grounds:

1. The commonwealth does not have the legislative power to enact the Secure Electricity Infrastructure Act 2022since electricity generated in Tasmania is primarily used intrastate and only surplus electricity is sent to the mainland at present; and
2. The Commonwealth does not have the authority to legislate with respect to the electricity infrastructure, since it a matter for state plenary powers to legislate with respect to infrastructure;
3. The Tasmanian government has the plenary power to legislate for the regulation of electrical infrastructure under s5 of the Tasmanian Constitution; and
4. As TasHydro is a state-owned corporation, it is not subject to Commonwealth regulation as the Company is immune from Commonwealth control

Your task

Advise your employer in the following:

1. whether the Secure Electricity Infrastructure Act 2022(Cth) is valid,
2. whether the Commonwealth can legislate for and regulate electricity generated, transmitted and distributed by a government-owned entity.
3. Any limitations, prohibitions, or invalidities which may be detrimental to your client