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.