Victorian Consolidated Legislation

Electricity Industry Act 2000 - SECT 39

Deemed contracts for supply and sale for relevant customers

39. Deemed contracts for supply and sale for relevant customers



(1) If a relevant customer commences to take supply of electricity at premises
from the relevant licensee without having entered into a supply and sale
contract with that licensee, there is deemed, on the commencement of that
supply, to be a contract between that licensee and that customer for the
supply and sale of electricity-

   (a)  at the tariffs and on the terms and conditions determined and
        published by that licensee under section 35; and

   (b)  on the conditions decided and provided for by the Commission under
        subsection (5).



(2) If a relevant customer-

   (a)  commences to take supply of electricity at premises under a supply and
        sale contract with the relevant licensee; and

   (b)  that customer cancels the supply and sale contract within the
        cooling-off period relating to the contract; and

   (c)  that customer continues to take electricity from that licensee without
        entering into a further supply and sale contract with that licensee-

there is deemed, on the cancellation of the supply and sale contract, to be a
contract between that licensee and that customer for the supply and sale of
electricity-

   (d)  at the tariffs and on the terms and conditions determined and
        published by that licensee under section 35; and

   (e)  on the conditions decided and provided for by the Commission under
        subsection (5).



(3) A deemed contract under subsection (2) is deemed to commence on the
commencement of supply referred to in subsection (2)(a).

(4) If a supply and sale contract referred to in subsection (2)(a) is-

   (a)  a contact sales agreement within the meaning of the
        Fair Trading Act 1999, sections 65 to 67 of that Act do not apply on
        the cancellation of that contract;

   (b)  a non-contact sales agreement within the meaning of the
        Fair Trading Act 1999, sections 73 to 75 of that Act do not apply on
        the cancellation of that contract.

(5) Without limiting the generality of section 20, the Commission may decide,
and provide for in the licence of a licensee, conditions setting out-

   (a)  circumstances in which a licensee must continue to supply or sell
        electricity to a customer to whom the licensee supplies or sells
        electricity under a deemed contract under this section after that
        contract comes to an end in accordance with subsection (7)(d) or (e);
        and

   (b)  events on the happening of which a deemed contract under this section
        may come to an end.

(6) A condition referred to in subsection (5)(a) must provide for the tariff
or tariffs and the terms and conditions for the continued supply or sale of
electricity to be determined by the licensee.

(6A) A person who is a relevant customer may be a party to a deemed contract
under this section even if the person has previously been a party to a
contract for the supply or sale of electricity to different premises on
different terms and conditions with the same licensee or another licensee.

(7) A deemed contract under this section comes to an end-

   (a)  if the contract is terminated; or

   (b)  if the customer enters into a new contract for the purchase of
        electricity from the licensee in respect of the same premises, on the
        date of taking effect of that new contract; or

   (c)  if the customer transfers to become the customer of another licensee;
        or

   (d)  at the end of 180 days after the day on which the deemed contract
        commences; or

   (e)  on the happening of an event decided and provided for by the
        Commission under subsection (5)(b)-

whichever occurs first.

(8) Subsection (1) does not apply where the relevant customer referred to in
that subsection commences to take the supply of electricity by fraudulent or
illegal means.

(9) Subsection (2) does not apply where the relevant customer referred to in
that subsection takes the supply of electricity by fraudulent or illegal means
after the cancellation of the supply and sale contract referred to in
subsection (2)(a).





(10) In this section-

cooling-off period means the period within which a relevant customer is
entitled under a supply and sale contract or section 63, 67H or 71 of the
Fair Trading Act 1999 to cancel the contract;

relevant customer has the same meaning as in section 36;

relevant licensee, in relation to premises, means the licensee who is
responsible for the electricity supplied at those premises for the purposes of
settlement of the wholesale electricity market;

supply and sale contract means a contract for the supply or sale of
electricity, whether oral or in writing, or partly oral and partly in writing.

* * * * *