Northern Territory Numbered Acts Northern Territory Numbered ActsAfter section 44
insert
In this Division:
"consumer protection framework" means the framework referred to in section 44B(3).
(1) The Utilities Commission may make a code relating to:
(a) arrangements to support the operation of retail competition in the electricity supply industry; and
(b) arrangements between electricity entities and customers.
Note for subsection (1)
See section 24 of the Utilities Commission Act 2000 .
(2) Without limiting subsection (1), the code may make provision for any of the following:
(a) retailer of last resort arrangements;
(b) a consumer protection framework;
(c) any other matter prescribed by regulation.
(3) For subsection (2)(b), if the code includes a consumer protection framework, it must include measures to regulate electricity entities that own or operate an electricity network or sell electricity, to protect the interests of customers, including in relation to the following:
(a) continuity of supply;
(b) the needs of particular types of retail customers;
(c) disputes.
Note for subsection (3)
See section 4(1), definition electricity entity , which includes a person whose licence has been suspended or cancelled or has expired.
(4) An electricity entity must, as a condition of its licence, comply with the code.
(5) The code may contain provisions that apply to a former electricity retailer whose licence under this Part has been suspended or cancelled or has expired.
(6) A former electricity retailer must comply with any provision of the code that applies under subsection (5), despite its licence under this Part being suspended or cancelled or expiring.
In making, varying or revoking the Retail Code, or in performing functions under the Retail Code that relate to the protection of residential customers or the continuity of supply, the Utilities Commission must have regard to the following matters:
(a) that the supply of electricity is an essential service for residential customers, so that if an electricity retailer fails, the following principles apply:
(i) safeguards should be put in place to protect continuity of supply;
(ii) customers affected by the failure require adequate information;
(iii) other measures should be put in place to mitigate the impact of the failure on customers and electricity entities as far as possible;
(iv) any other principles prescribed by regulation;
(b) that disconnection of the premises of a residential customer facing financial hardship or domestic or family violence should be a last resort option;
(c) that complaints handling and dispute resolution mechanisms should be readily accessible to residential customers;
(d) any other matters prescribed by regulation.
(1) If a RoLR transfer event occurs in relation to an electricity retailer, the Utilities Commission may appoint the retailer of last resort to sell electricity to customers of the failed retailer.
(2) If the Utilities Commission makes an appointment under subsection (1) it must:
(a) determine the day on which customers of the failed retailer are to transfer to the retailer of last resort in accordance with the Retail Code; and
(b) give notice of the appointment to the failed retailer and the retailer of last resort; and
(c) publish notice of the appointment on its website.
(3) Subject to subsection (4), the day determined under subsection (2) may be a day that is earlier than the day on which the determination is made, but must not be earlier than the day on which the RoLR transfer event occurred.
(4) If the RoLR transfer event is the cancellation of a licence, the day determined under subsection (2) must be the day on which the cancellation took effect.
(1) Each person who was a customer of a failed retailer immediately before the transfer date:
(a) ceases to be a customer of the failed retailer on that date; and
(b) becomes a customer of the retailer of last resort immediately after so ceasing to be a customer of the failed retailer.
(2) Commencing on the transfer date, the retailer of last resort assumes the functions and powers of the failed retailer:
(a) under this Act; and
(b) under the failed retailer's licence; and
(c) under the Retail Code; and
(d) in accordance with any matters prescribed by regulation.
(3) The retailer of last resort assumes no financial or other liabilities of the failed retailer that arise before the transfer date.
(4) The contract for the sale of electricity between a failed retailer and each person who was a customer of the failed retailer immediately before the transfer date is terminated on the transfer date.
(5) Termination of a contract under this section does not affect any rights or obligations that have already accrued under the contract, but no early termination charge is payable to the failed retailer if a contract is terminated under this section.
For a person who becomes a customer of the retailer of last resort under this Division:
(a) a contract for the sale of electricity is taken to be in place between the retailer of last resort and the customer, with effect on and from the transfer date; and
(b) the tariffs payable under the contract are the prices approved by or under an electricity pricing order; and
(c) other terms and conditions of the contract are the terms and conditions approved by the Utilities Commission in accordance with the regulations (if any).
(1) The Utilities Commission may determine a scheme for the recovery of costs incurred by the retailer of last resort arising from its appointment under section 44D.
(2) A cost recovery scheme determined under subsection (1):
(a) may require the network provider to reimburse the costs of the retailer of last resort; and
(b) must only allow recovery of costs to the extent they are not otherwise recovered through tariffs and charges the retailer of last resort receives from supplying electricity to transferred customers.
Note for subsection (2)
See also Chapter 6 of the National Electricity (NT) Rules.
(3) The retailer of last resort cannot recover costs incurred in relation to its appointment under section 44D except in accordance with the scheme determined under subsection (1).
(4) The regulations may require the retailer of last resort to pay the costs incurred by an insolvency official of a failed retailer in complying with its obligations under this Division, including to pay for any compensation required by a regulation prescribed under section 44J.
(5) An amount paid in accordance with a requirement of the regulations may be recoverable under the scheme determined under subsection (1).
(1) If the Utilities Commission makes an appointment under section 44D(1), the failed retailer or its insolvency official must, if directed by the Utilities Commission, provide the information prescribed by regulation to the retailer of last resort.
(2) The Utilities Commission may direct an electricity retailer or the insolvency official of a failed retailer to give the Utilities Commission any information reasonably required and specified by written notice, in accordance with any requirements prescribed by regulation, if any of the following apply to the retailer:
(a) the Utilities Commission has given the electricity retailer a notice under section 36(3)(a);
(b) the Utilities Commission has reason to believe that there is a risk of a RoLR transfer event occurring in relation to the electricity retailer;
(c) a RoLR transfer event has occurred in relation to the electricity retailer, whether or not the Utilities Commission has made an appointment under section 44D(1);
(d) the electricity retailer's licence has been suspended.
(3) An electricity retailer or its insolvency official that is given a direction under subsection (2) must comply with the direction.
(4) The Utilities Commission may disclose information received under subsection (2) to the retailer of last resort.
(5) Information prescribed by regulation under subsection (1) or (2) may include confidential or personal information, but must not include information protected by client legal privilege or the privilege against self-incrimination.
(6) Disclosure and use of personal information under this section is authorised for the purposes of the Information Act 2002 and the Privacy Act 1988 (Cth).
The regulations may provide for any of the following in connection with an appointment under section 44D(1):
(a) for the purpose of continuity of electricity supply for customers:
(i) the vesting of assets, rights and interests of a failed retailer in a person; and
(ii) the conferral of powers and duties;
(b) the discharge or assignment of liabilities;
(c) the disposal of property;
(d) any other matter that is necessary or convenient to deal with the consequences of the appointment or the matters referred to in paragraphs (a) to (c), including the payment of compensation for or in relation to those matters.
This Division and any regulation made under this Division is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 (Cth) in relation to the provisions of Chapters 2D and 5 of that Act.
Note for section 44K
Section 5G of the Corporations Act 2001 (Cth) provides that if a State or Territory law declares a provision of a State or Territory law to be a Corporations legislation displacement provision, any provision of the Corporations legislation with which the State or Territory provision would otherwise be inconsistent does not apply to the extent necessary to avoid the inconsistency.