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12 Communication to small customers must compare retailer’s prices with reference price

Scope of this section (1) This section applies, at a time in a financial year, to an electricity retailer’s prices (the offered prices) for supplying electricity in a distribution region to a small customer of a particular type if: (a) a model annual usage; and (b) a reference price; are in force for the year in relation to the supply.

Note: For distribution regions to which this instrument does not apply in relation to a financial year, see section 8.

Civil penalty provision (2) The electricity retailer must not communicate the offered prices to a small customer of that type unless the communication meets the requirements of subsections (3), (6) and (7).

Civil penalty: 300 penalty units.

(2A) The electricity retailer communicates the offered prices to a small customer of that type if: (a) the electricity retailer advertises or publishes the prices; or (b) the electricity retailer offers to supply electricity in the region to the small customer at those prices; or (c) both of the following subparagraphs apply: (i) the electricity retailer notifies the small customer of the offered prices in writing (other than as mentioned in paragraph (a) or (b)) as part of notifying the small customer of a change to the electricity retailer’s prices for supplying electricity to the small customer; (ii) the offered prices are the prices that apply after the change. Prices and discounts (3) The communication must state the following matters, making it clear that the matters relate to a representative customer: (a) the difference between: (i) the reference price; and (ii) the unconditional price; expressed as a percentage of the reference price; (b) for each proportional conditional discount mentioned in the communication—the difference between: (i) the unconditional price; and (ii) the conditional price for the discount; expressed as a percentage of the reference price; (c) the lowest possible price. (4) In this instrument:

conditional price for a proportional conditional discount means the total amount a representative customer would be charged for the supply of electricity in the financial year at the offered prices, assuming that the conditions on the discount were met and disregarding any other conditional discounts.

lowest possible price means the total amount a representative customer would be charged for the supply of electricity in the financial year at the offered prices, assuming that the conditions on all conditional discounts (if any) mentioned in the communication were met.

Note: If the communication does not mention any conditional discounts, the lowest possible price is the unconditional price.

proportional conditional discount means a conditional discount that is calculated as a proportion of all or part of the amount a small customer is charged for the supply of electricity at the offered prices.

unconditional price means the total amount a representative customer would be charged for the supply of electricity in the financial year at the offered prices, disregarding any conditional discounts.

Other matters (6) The communication must also state: (a) the distribution region; and (b) the type of small customer. (7) The communication must state the matters required by subsections (3) and (6) and 13(2) (whichever are applicable) clearly and conspicuously.