25Agreement for supply of regulated gas must comply with certain requirements

25  Agreement for supply of regulated gas must comply with certain requirements

 (c) under the agreement, the supplier is to supply regulated gas to another person (the buyer); and

 (d) the agreement does not specify the matters mentioned in subsection (2).

 (2) For the purposes of paragraph (1)(d), the matters are as follows:

 (a) the quantity of regulated gas to be supplied in accordance with the agreement;

 (b) if there are annual supply requirements in the agreement—the annual quantity of regulated gas to be supplied in accordance with the agreement;

 (c) the degree of flexibility in determining that quantity (including conditions relating to load factor (such as conditions that determine variations in load factor over the course of a year));

 (d) the period over which the regulated gas is to be supplied in accordance with the agreement (including the dates the supply will commence and will cease, or a method for determining those dates);

 (e) the delivery points of the regulated gas to be supplied in accordance with the agreement;

 (f) the price or price structure to apply to the supply of the regulated gas in accordance with the agreement (including any take or pay conditions, and the effect of any such conditions and any price escalation mechanisms);

 (g) the payment terms for the supply of regulated gas in accordance with the agreement;

 (h) if the agreement includes terms to provide transportation services (including services in respect of transportation from delivery points mentioned in paragraph (e)) or storage services—the price or price structure to apply to the provision of those services in accordance with the agreement (including the effect of any price escalation mechanisms);

 (i) the circumstances (if any) in which the supplier or the buyer may vary the terms of the agreement;

 (j) a protocol for the supplier and the buyer to notify each other, within a reasonable time, of any major interruptions that become known to them to:

 (i) the supplier’s ability to supply regulated gas in accordance with the agreement; or

 (ii) the buyer’s ability to accept regulated gas in accordance with the agreement;

 (k) the consequences (if any) if the quantity of regulated gas to be supplied in accordance with the agreement is not delivered by the supplier or is not accepted by the buyer;

 (l) the circumstances in which the supplier or the buyer may terminate the agreement;

 (m) the consequences of a breach of the agreement;

 (n) procedures for resolving disputes arising under the agreement.

Note: The agreement must specify the matters set out in subsection (2), and may also specify other matters. For example, it may specify that it is subject to conditions precedent.

Division 2—Price rules