Victorian Consolidated Legislation

Electricity Industry Act 2000 - SECT 49D

Licence condition-supplier of last resort

49D. Licence condition-supplier of last resort



(1) Without limiting the generality of section 20, the conditions to which a
licence to distribute or supply, or to sell, electricity is subject may
include a requirement that, in certain circumstances, the licensee, at tariffs
and on terms and conditions approved by the Commission, having regard to the
matters referred to in subsection (2), supply or sell electricity to relevant
customers to whom electricity is supplied or sold under another such licence
(whether held by that licensee or another licensee).



(2) In approving the tariffs and terms and conditions of a requirement
referred to in subsection (1), the Commission must have regard to-

   (a)  the risks and costs associated with the requirement; and

   (b)  the extent to which the licensee or another licensee has developed
        systems to comply with such a requirement; and

   (c)  any tariffs and terms and conditions proposed by the licensee whether
        or not at the request of the Commission.

(3) A requirement referred to in subsection (1) does not apply so as to
require the licensee to supply or sell electricity-

   (a)  if the licensee's licence provides for a distribution area, outside
        that area; or

   (b)  to a customer to whom electricity is supplied or sold under another
        licence if the customer elects, in writing given to the holder of that
        other licence, not to be a customer of that other licensee for the
        purposes of subsection (1).

(4) If the conditions to which a licence of a licensee is subject include a
requirement referred to in subsection (1), the licensee is deemed to be the
holder of a licence to sell electricity to the extent necessary to comply with
the requirement.

(5) The obligation of a licensee to supply or sell electricity to a relevant
customer to whom electricity is supplied or sold by another licensee (the
defaulting licensee) in accordance with the requirement referred to in
subsection (1) commences when-

   (a)  the defaulting licensee's licence is revoked; or

   (b)  the right of the defaulting licensee to acquire electricity from the
        wholesale electricity market is suspended or terminated-

whichever first occurs.

(6) The obligation of the supplier of last resort ends-

   (a)  3 months after its commencement; or

   (b)  when the customer advises the supplier of last resort that the supply
        or sale is no longer required; or

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

   (d)  when the customer enters into a new contract with the supplier of last
        resort for the supply or sale of electricity-

whichever first occurs.

(7) The Commission must notify the supplier of last resort, as soon as
practicable, of the commencement of the supplier of last resort's obligation
under subsection (5).