36AA—Provision for standing contract with small customers
(1) This section
applies to an electricity entity holding a licence authorising the retailing
of electricity that is declared by the Governor under this section to be an
electricity entity to which this section applies.
(2) It is a condition
of the licence of an electricity entity to which this section applies that the
entity must, at the request of a small customer, agree to sell electricity to
the customer at the entity's standing contract price and subject to the
entity's standing contract terms and conditions.
(4) An entity is not
required to sell electricity 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
electricity to the customer.
(4a) The following
provisions apply in relation to the fixing by the Commission of a standing
contract price for an entity for the purposes of this section:
(a) the
Commission may fix the price by a determination of a kind referred to in
section 35A(1)(a);
(b) a
determination, other than a determination under paragraph (f), must
provide for the expiry of the determination at the end of a period of not less
than 3 years specified in the determination;
(c) a
determination may provide for prices that vary at specified times according to
a formula specified in the determination;
(d)
unless the Commission determines that special circumstances exist—
(i)
a determination may not be made to take effect before the
expiry date of the last preceding determination made by the Commission in
accordance with this subsection;
(ii)
a determination may only be made if the entity has made a
submission to the Commission stating the price that the entity proposes be
fixed by the Commission as the entity's standing contract price, and the
entity's justification for the price, not less than 6 months and not more
than 9 months before the making of the determination;
(iii)
the Commission must, before making a determination, have
conducted an inquiry under Part 7 of the Essential Services Commission
Act 2002 into the question of the appropriate price to be fixed as the
standing contract price;
(e) a
submission under paragraph (d) must comply with any requirements as to
the form and content of such submissions imposed by the Commission by written
notice served on the entity;
(f) if
the Commission has determined that special circumstances exist—the
Commission may make a determination that takes effect as a variation of the
existing determination (with effect for the balance of the term of the
existing determination (unless another variation is subsequently made)).
(5) The Governor may,
by proclamation—
(a)
declare that this section applies to a specified electricity entity; and
(b) vary
or revoke such a declaration.
(6) In this
section—
"standing contract price", in relation to an entity and a customer,
means—
(a) the
price fixed by the Commission in accordance with subsection (4a) as the
entity's standing contract price for a class of customers to which the
customer belongs; or
(b) if
there is no price for the time being fixed by the Commission as the entity's
standard contract price in accordance with subsection (4a), the price
fixed by the electricity pricing order under section 35B as at
31 December 2002 for the sale of electricity to non-contestable
customers;
"standing contract terms and conditions", in relation to an
electricity entity, means terms and conditions that have been published by the
electricity entity under section 36 as the entity's
standing contract terms and conditions.
(7) The Governor may,
by proclamation, fix a day on which this section expires.