Liability of recipient for covered gas supplied under direction
256 Liability of recipient for covered gas supplied under direction
This section applies if—
under an insufficiency of supply direction a person (the supplier) supplies someone else (the recipient) with the covered gas stated in the direction; and
the recipient consumes the covered gas; and
the supplier was not, other than for the direction, legally obliged to supply the covered gas to the recipient.
The recipient must, unless the Minister otherwise approves, pay the supplier a reasonable amount for the covered gas.
In working out what is a reasonable amount for the covered gas, regard must be had to—
the cost to the supplier of producing or transporting the gas; and
any lost revenue to the supplier as a result of the gas being redirected.
This Act’s bill:Explanatory memorandum
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