New South Wales Consolidated Regulations

GAS SUPPLY (NATURAL GAS RETAIL COMPETITION) REGULATION 2001 - REG 69

69 Commencement of last resort supply arrangements

(1) A retailer of last resort’s obligations under its endorsement with respect to the implementation of last resort supply arrangements for small retail customers for whom it is a retailer of last resort take effect on the date specified in a last resort supply notice published with respect to those customers.

(2) If a last resort supply event occurs, the Minister must publish a notice in the Gazette, and in a newspaper circulating generally in the State, that last resort supply arrangements have come into force and setting out the following particulars:

(a) particulars of the affected suppliers and small retail customers and the date on which the arrangements take effect (which may be the date of the notice or a later date),

(b) particulars of the affected supply districts or parts of supply districts.

(3) The Director-General must before, or as soon as practicable after, last resort supply arrangements take effect give written notice to the following persons of the date on which the arrangements are to take effect or took effect:

(a) the affected suppliers,

(b) the reticulator in whose network sections the affected customers are supplied,

(c) the administrator of any retail market business scheme of which the suppliers concerned are members.

(4) On last resort supply arrangements taking effect, the retailer of last resort must ensure that the small retail customers for whom it is a retailer of last resort are transferred as customers of the retailer, if the transfer does not occur by any other means. A transfer must comply with the retailer’s last resort supply arrangements, the Act, this Regulation and any applicable market operations rules.

(5) A transfer of a small retail customer under a last resort supply arrangement does not amount to a novation of the customer supply contract with the customer.

(6) On last resort supply arrangements taking effect:

(a) the retailer of last resort must implement the last resort supply arrangements applicable to the small retail customers subject to the arrangements, and

(b) the affected supplier concerned must not supply gas to any small retail customer, and

(c) the affected supplier concerned must provide reasonable assistance to the Minister, the retailer of last resort and the administrator of any retail market business scheme of which the affected supplier is a member in order to enable those persons to carry out their functions under this Part. Such assistance may include assistance in the transfer of customers and the provision of information.

(7) It is a condition of the authorisation of an affected supplier that the supplier comply with subclause (6) (b).

(8) Despite subclause (6) (b), the Minister, on the application of an affected supplier whose authorisation has not been cancelled, may, by order, permit the supplier to recommence supplying gas to small retail customers. On the making of such an order, subclauses (6) (b) and (7) cease to apply to the affected supplier.

(9) An application under subclause (8) may be refused on the following grounds:

(a) the applicant fails to satisfy such technical or prudential criteria as have been adopted by the Minister to determine whether the applicant is able to operate a viable business as an authorised supplier,

(b) the Minister is of the opinion that the applicant is not a fit and proper person to recommence supplying gas to small retail customers (having regard to the applicant’s ability to avoid a recurrence of a last resort supply event and the standing of the directors and officers and their actions in relation to the original last resort supply event).

(10) In determining an application under subclause (8), the Minister may consider the following:

(a) the circumstances that gave rise to the last resort supply event,

(b) the actions of the applicant in response to the original last resort supply event,

(c) the circumstances that enabled the applicant to continue supplying gas to persons other than small retail customers,

(d) the history of the applicant’s compliance with the conditions of its authorisation,

(e) any other matter that the Minister considers relevant.

(11) Without limiting sections 11 and 12 of the Act, the Minister may, at the time of making an order under subclause (8), impose or vary conditions in relation to the affected supplier’s authorisation so as to require the affected supplier to provide additional information to the Minister on an ongoing basis, including:

(a) information relating to the affected supplier’s technical and prudential ability to supply gas, and

(b) information relating to plans or policies the affected supplier is to put in place to prevent the occurrence of a further last resort supply event.