36AA

Provision for standing contract with small customers

In force

(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.

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