(1)  Subject to this regulation, the terms and conditions of a draft pro-forma fallback contract, including the price of the customer retail services, are to be determined by the retailer.

(2)  A draft pro-forma fallback contract in respect of a customer who consumed more than 0.75 gigawatt hours of electricity at one single site in the 12 months immediately preceding the establishment of the fallback contract must not specify a price, or a method of determining a price, that would result in the amount paid by a customer under the contract exceeding the cost to the retailer of supplying customer retail services to the customer, taking into consideration the following amounts:

(a) the wholesale pool price;

(b) applicable distribution and transmission charges;

(c) the reasonable retail margin proposed by the retailer and approved by the Regulator;

(d) any other costs which, in the opinion of the Regulator, are incurred in connection with the provision of the customer retail service to the customer.

(3)  A draft pro-forma fallback contract in respect of a customer who consumed not more than 0.75 gigawatt hours of electricity at one single site in the 12 months immediately preceding the establishment of the fallback contract must specify a price, or a method of determining a price, that the Regulator considers reasonable.

(4)  The retailer must submit to the Regulator, within a period determined by the Regulator by notice provided to the retailer –

(a) a draft pro-forma fallback contract that specifies a price, or a method of determining a price, in accordance with subregulation (2) ; and

(b) another draft pro-forma fallback contract that specifies a price, or a method of determining a price, in accordance with subregulation (3) .

(5)  The Regulator may –

(a) approve a draft pro-forma fallback contract if the draft contract –

(i) complies with the terms of the retailer's licence; and

(ii) complies with the Act and these regulations; or

(b) refuse to approve a draft pro-forma fallback contract and require a substitute draft pro-forma fallback contract to be submitted to him or her.

(6)  The Regulator is to notify the retailer as soon as practicable of an approval, or refusal to approve, a draft pro-forma fallback contract under subregulation (5) .

(7)  If the Regulator approves a draft pro-forma fallback contract under subregulation (5) , the Regulator is to publish a copy of the draft pro-forma fallback contract in the Gazette .

(8)  A pro-forma fallback contract may be amended or substituted by the retailer –

(a) obtaining the approval of the Regulator for the amendment or substitution of the pro-forma fallback contract; and

(b) after so obtaining that approval, publishing, by notice in the Gazette , the amendment or the substituted pro-forma fallback contract.