Victorian Consolidated Legislation

Electricity Industry Act 2000 - SECT 40D

Regulation of exit fees

40D. Regulation of exit fees



(1) The Governor in Council may by Order published in the Government Gazette
prohibit or regulate the imposition by a licensee under a contract for the
supply or sale of electricity to a small retail customer of an exit fee on the
termination of that contract.

(2) An Order under subsection (1) may specify terms and conditions applying to
the imposition of exit fees.

(3) An Order under subsection (1) may also provide that a contract between a
small retail customer and a licensee for the supply or sale of electricity is
to include a condition providing that the small retail customer may terminate
the contract-

   (a)  without notice, if the contract is a deemed contract under section 37
        or 39; or

   (b)  in any other case, by giving the required period of notice to the
        licensee.

(4) If an Order under subsection (1) requires the inclusion of a condition
referred to in subsection (3) in a contract for the supply or sale of
electricity, that condition is deemed to form part of that contract.



(5) Nothing in this section or an Order under this section prevents a licensee
from offering an incentive or rebate to a small retail customer to remain a
customer of the licensee.

(6) An Order under subsection (1) has effect from the date specified in the
Order.

(7) Sections 53 and 54 of the Essential Services Commission Act 2001 apply to
an Order under subsection (1) as if the Order were a determination made by the
Commission under that Act.

(8) This section applies despite anything to the contrary in any terms and
conditions that form part or are deemed by this Act to form part of the
contract between a licensee and a small retail customer.

(9) In this section-

exit fee means a fee or charge payable on the termination of a contract but
does not include any fee or charge for electricity supplied under the
contract; required period of notice means the longer of-

   (a)  the period of notice agreed between the licensee and the small retail
        customer; and

   (b)  the period of notice specified in an Order under subsection (1).