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STATUTES AMENDMENT (GAS AND ELECTRICITY) ACT 2003 (NO 9 OF 2003) - SECT 19

19—Substitution of sections 25 and 26

Sections 25 and 26—delete the sections and substitute:

25—Licence conditions

        (1)         The Commission must make a licence subject to conditions determined by the Commission—

            (a)         requiring compliance with applicable codes or rules made under the Essential Services Commission Act 2002 as in force from time to time; and

            (b)         requiring compliance with specified technical or safety requirements or standards; and

            (c)         relating to the gas entity's financial or other capacity to continue operations under the licence; and

            (d)         requiring the gas entity to have all or part of the operations authorised by the licence audited and to report the results of the audit to the Commission; and

            (e)         requiring the gas entity to notify the Commission about changes to officers and, if applicable, major shareholders of the entity; and

            (f)         requiring the gas entity to provide, in the manner and form determined by the Commission, such other information as the Commission may from time to time require; and

            (g)         requiring the gas entity to comply with the requirements of any scheme approved and funded by the Minister for the provision by the State of customer concessions or the performance of community service obligations by gas entities.

        (2)         The Commission must make a licence subject to further conditions that the Commission is required by regulation to impose on the issue of such a licence.

        (3)         The Commission may make a licence subject to further conditions considered appropriate by the Commission.

        (4)         The Commission must provide to the Minister any information that the Minister requires for the purposes of the administration of a scheme for the provision by the State of customer concessions, or the performance of community service obligations, relating to the sale or supply of gas.

26—Licences authorising operation of distribution system

        (1)         The Commission must make a licence authorising the operation of a distribution system subject to conditions determined by the Commission—

            (a)         requiring compliance with applicable retail market rules; and

            (b)         requiring the gas entity—

                  (i)         to prepare and periodically revise a safety, reliability, maintenance and technical management plan dealing with matters prescribed by regulation; and

                  (ii)         to obtain the approval of the Commission (which may only be given by the Commission on the recommendation of the Technical Regulator) to the plan and any revision; and

                  (iii)         to comply with the plan as approved from time to time; and

                  (iv)         to audit from time to time the entity's compliance with the plans and report the results of those audits to the Technical Regulator; and

            (c)         requiring the gas entity to maintain specified accounting records and to prepare accounts according to specified principles; and

            (d)         requiring the gas entity to participate in an ombudsman scheme—

                  (i)         that applies to the gas supply industry and to other regulated industries (within the meaning of the Essential Services Commission Act 2002 ) prescribed by regulation; and

                  (ii)         the terms and conditions of which are approved by the Commission; and

            (e)         requiring the gas entity to monitor and report as required by the Commission on indicators of service performance determined by the Commission; and

            (f)         requiring the gas entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002 ) limiting the grounds on which the supply of gas to customers may be disconnected and prescribing the process to be followed before the supply of gas is disconnected; and

            (g)         requiring a specified process to be followed to resolve disputes between the gas entity and customers as to the supply of gas.

        (2)         This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the operation of a distribution system.

26A—Licences authorising retailing

        (1)         A licence authorising the retailing of gas must, if the Minister so determines and despite section 7 of the Essential Services Commission Act 2002 , confer on the gas entity an exclusive right to sell gas as permitted under Annex E (Franchising Principles) of the Natural Gas Pipelines Access Agreement made on 7 November 1997 between the Commonwealth and the States and Territories of the Commonwealth.

        (2)         The Commission must make a licence authorising the retailing of gas subject to conditions determined by the Commission—

            (a)         requiring compliance with applicable retail market rules; and

            (b)         if the gas entity sells gas to customers of a prescribed class, requiring the entity to maintain specified accounting records and to prepare accounts according to specified principles; and

            (c)         requiring the gas entity to establish customer consultation processes of a specified kind; and

            (d)         requiring the gas entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002 on or before the prescribed date) relating to the provision of pricing information to enable small customers to compare competing offers in the retailing of gas; and

            (e)         requiring the gas entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002 ) relating to standard contractual terms and conditions to apply to the sale or supply of gas to small customers or customers of a prescribed class; and

            (f)         requiring the gas entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002 ) imposing minimum standards of service for customers that take into account relevant national benchmarks developed from time to time, and requiring the entity to monitor and report on levels of compliance with those minimum standards; and

            (g)         requiring the gas entity to comply with code provisions as in force from time to time (which the Commission must make under the Essential Services Commission Act 2002 ) limiting the grounds on which the supply of gas to customers may be discontinued or disconnected and prescribing the process to be followed before the supply of gas is discontinued or disconnected; and

            (h)         requiring a specified process to be followed to resolve disputes between the gas entity and customers as to the sale or supply of gas; and

                  (i)         if the gas entity sells gas to customers with an annual gas consumption level of less than the level prescribed, requiring the entity to participate in an ombudsman scheme—

                  (i)         that applies to the gas supply industry and to other regulated industries (within the meaning of the Essential Services Commission Act 2002 ) prescribed by regulation; and

                  (ii)         the terms and conditions of which are approved by the Commission.

        (3)         This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the retailing of gas.

26B—Licence authorising business of retail market administrator

        (1)         The Commission must make a licence authorising the business of a retail market administrator subject to conditions determined by the Commission—

            (a)         requiring compliance with applicable retail market rules; and

            (b)         requiring the gas entity to maintain specified accounting records and to prepare accounts according to specified principles; and

            (c)         requiring the gas entity's business as a retail market administrator to be kept separate from any other business of the gas entity or any other person in the manner and to the extent specified in the conditions; and

            (d)         requiring the gas entity to publish on a website the retail market rules administered by the entity, and its constitution and any other rules that it has adopted to govern its processes; and

            (e)         requiring the gas entity to submit to the Commission for its approval any amendment of the retail market rules (not being an amendment excluded by the rules from the requirement for such approval) and a statement of the reasons for the amendment; and

            (f)         requiring the gas entity to inform persons seeking or in receipt of its services as a retail market administrator of the terms on which the services are provided (including its charges for the services) and of any changes in those terms; and

            (g)         requiring the gas entity to comply with—

                  (i)         specified provisions for or relating to the granting to other gas entities of rights to use or have access to the entity's retail market business systems (on non-discriminatory terms) for the retailing of gas; and

                  (ii)         any scheme that the Commission may establish by a code made under the Essential Services Commission Act 2002 for the resolution of disputes in relation to such rights; and

            (h)         requiring the gas entity to establish consultation processes of a specified kind.

        (2)         This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the business of a retail market administrator.



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