South Australian Consolidated Acts

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ELECTRICITY ACT 1996 - SECT 36AA

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 electricity entity's licence 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.

        (3)         A customer to whom the electricity entity was selling electricity immediately before the commencement of this section is, on that commencement, if—

            (a)         the customer is then a small customer; and

            (b)         has not contracted with another electricity entity for the purchase of electricity from that commencement,

to be taken to have requested that the entity sell electricity to the customer on the basis referred to in subsection (2).

        (4)         The 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 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.

        (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 electricity entity, means—

            (a)         the price fixed by the Commission as the entity's standing contract price in accordance with subsection (4a); or

            (b)         if there is no price for the time being fixed by the Commission as the entity's standing 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" 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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