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STATUTES AMENDMENT (GAS AND ELECTRICITY) ACT 2003 (NO 9 OF 2003) - SECT 29

29—Insertion of Part 3 Divisions 3A and 3B

Part 3—after Division 3 insert:

Division 3A—Standing contracts and default contracts

34A—Standing contracts

        (1)         This section applies to a gas entity holding a licence authorising the retailing of gas that is declared by the Governor under this section to be a gas entity to which this section applies.

        (2)         It is a condition of the gas entity's licence that the entity must, at the request of a small customer or customer of a prescribed class, agree to sell and supply gas to the customer at the entity's standing contract price and subject to the entity's standing contract terms and conditions.

        (3)         A customer to whom the gas entity was selling gas immediately before the commencement of this section is, on that commencement, if—

            (a)         the customer is then a small customer or a customer of a prescribed class; and

            (b)         has not contracted with another gas entity for the purchase of gas from that commencement,

to be taken to have requested that the entity sell and supply gas to the customer on the basis referred to in subsection (2).

        (4)         The entity is not required to sell and supply gas to a customer in compliance with the condition imposed under subsection (2) if the entity is entitled in accordance with the entity's standing contract terms and conditions to refuse to sell and supply gas to the customer.

        (5)         The Governor may, by proclamation—

            (a)         declare that this section applies to a specified gas entity; and

            (b)         vary or revoke such a declaration.

        (6)         In this section—

"standing contract price", in relation to a gas entity and a customer, means whichever of the following is the price last fixed:

            (a)         the price last fixed under this Act for the sale and supply of gas to a class of customers to which the customer belongs;

            (b)         a price fixed by the entity as the entity's standing contract price for a class of customers to which the customer belongs by notice published in the Gazette and in a newspaper circulating generally in the State, where—

                  (i)         the price was fixed by the notice with effect from the end of the period of 3 months from the date of publication of the notice; and

                  (ii)         the notice contained a statement of the entity's justification for the price; and

                  (iii)         the Commission did not, within the period of 3 months, fix the entity's standing contract price as referred to in paragraph (c);

            (c)         a price fixed by the Commission as the entity's standing contract price for a class of customers to which the customer belongs by a determination of a kind referred to in section 33(1)(a);

"standing contract terms and conditions" means terms and conditions that have been published by the gas entity under section 34 as the entity's standing contract terms and conditions.

        (7)         The Governor may, by proclamation, fix a day on which this section expires.

34B—Default contracts

        (1)         This section applies to a gas entity holding a licence authorising the retailing of gas that sells gas to one or more small customers in South Australia.

        (2)         It is a condition of the gas entity's licence that the entity must, if the entity becomes bound, in accordance with the regulations, to sell and supply gas to a small customer under a default contract arrangement for a period specified in the regulations—

            (a)         give the customer a written notice in accordance with the regulations; and

            (b)         sell and supply gas to the customer at the entity's default contract price and subject to the entity's default contract terms and conditions for that period.

        (3)         In this section—

"default contract price", in relation to a gas entity and a customer, means whichever of the following is the price last fixed:

            (a)         the price last fixed under this Act for the sale and supply of gas to a class of customers to which the customer belongs;

            (b)         a price fixed by the entity as the entity's default contract price for a class of customers to which the customer belongs by notice published in the Gazette and in a newspaper circulating generally in the State, where—

                  (i)         the price was fixed by the notice with effect from the end of the prescribed period from the date of publication of the notice; and

                  (ii)         the notice contained a statement of the entity's justification for the price; and

                  (iii)         the Commission did not, within the prescribed period, fix the entity's default contract price as referred to in paragraph (c);

            (c)         a price fixed by the Commission as the entity's default contract price for a class of customers to which the customer belongs by a determination of a kind referred to in section 33(1)(a);

"default contract terms and conditions" means terms and conditions that have been published by the gas entity under section 34 as the entity's default contract terms and conditions.

Division 3B—Retailer of last resort scheme

34C—Retailer of last resort scheme

The regulations may make provision—

            (a)         requiring the Commission to make the licence of a prescribed gas entity subject to conditions requiring the entity to sell and supply gas (on terms and conditions approved by the Commission) to customers of another gas entity in the event that the Minister declares the other entity to be in default; and

            (b)         empowering the Minister to declare, by notice in the Gazette, that a gas entity specified in the notice is in default for the purposes of paragraph (a) if the Minister is satisfied that prescribed circumstances apply to the entity; and

            (c)         relating to the period for which the obligation to sell and supply gas to customers of another gas entity will continue to apply; and

            (d)         requiring the Commission to make a prescribed licence, or licence of a prescribed class, subject to conditions imposing obligations on the gas entity in the event that a declaration referred to in paragraph (b) is made by the Minister.

34D—Minister's power to require information

        (1)         The Minister may require the Commission, a gas entity or other person to give the Minister, within a time specified by the Minister (which must be reasonable), information in the person's possession that the Minister reasonably requires for the purposes of this Division.

        (2)         A person required to give information under this section must provide the information within the time specified by the Minister.

Maximum penalty: $20 000.



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