ENERGY LEGISLATION AMENDMENT (CONSUMER PROTECTION) ACT 2015 (NO. 49 OF 2015) - SECT 10 Regulation of exit fees

ENERGY LEGISLATION AMENDMENT (CONSUMER PROTECTION) ACT 2015 (NO. 49 OF 2015) - SECT 10

    (1)     Before section 40D(1) of the Electricity Industry Act 2000 insert —

    "(1AA)     Without limiting the generality of sections 20(2) or (3) or 21, the conditions to which a licence to sell electricity is subject include a condition prohibiting, on and after the commencement of section 10 of the Energy Legislation Amendment (Consumer Protection) Act 2015 , the licensee from entering into a contract for the supply or sale of electricity between the licensee and a small retail customer that imposes an exit fee on the termination of the contract unless—

        (a)     the contract is a fixed-term retail contract; and

        (b)     the following will not change during the term of the contract—

              (i)     any tariffs, charges and fees for electricity supplied under that contract;

              (ii)     any discount which applies to tariffs, charges and fees for electricity supplied under that contract;

              (iii)     any terms and conditions that apply to electricity supplied under that contract.".

    (2)     In section 40D(1) of the Electricity Industry Act 2000 —

        (a)     omit "prohibit or";

        (b)     for "contract for the supply or sale of electricity to a small retail customer" substitute "fixed-term retail contract";

        (c)     after "exit fee" insert "that is not otherwise prohibited under subsection (1AA)".

    (3)     For section 40D(3) of the Electricity Industry Act 2000 substitute —

    "(3)     An Order under subsection (1) may also provide that a fixed-term retail contract must include a condition providing that the small retail customer may terminate the contract by giving the required period of notice to the licensee.".

    (4)     In section 40D(4) of the Electricity Industry Act 2000 , for "contract for the supply or sale of electricity" substitute "fixed-term retail contract".

    (5)     In section 40D(9) of the Electricity Industry Act 2000 insert the following definition—

"" fixed-term retail contract" means a contract for the supply or sale of electricity between a licensee and a small retail customer that contains a term or condition that specifies—

        (a)     the date on which the contract will end; or

        (b)     a method for calculating the date on which the contract will end and which is ascertainable at the time the contract is entered;".