sec.309Existing electricity supply contracts

### sec.309 Existing electricity supply contracts This section applies if— immediately before 1 January 2003, a contract was in force for the sale of electricity from a liable person to a customer who, under this Act as it was in force on that day, was a contestable customer; and under chapter 5A, the 13% liability is imposed on the liable person for electricity sold under the contract. However, this section does not apply, or ceases to apply, if a review opportunity arose or arises for the contract on or after 1 January 2003. The liable person may, by notice to the customer, charge the customer all or any of the following ( chargeable amounts )— the amount of the liable person’s reasonable costs incurred in meeting or managing the 13% liability for electricity sold under the contract; the cost of working out the relevant liable load the cost of acquiring GECs to surrender to meet the liability any fee paid to surrender the GECs an appropriate proportion of the costs of giving the relevant self-assessment report if the liable person is an accredited generator—an appropriate proportion of the relevant annual fee if the liable person is not an accredited generator—an appropriate proportion of the fee to apply to become a scheme participant and the relevant annual fee the cost of setting up an internal information technology system to manage the liability an amount equivalent to the amount of any civil penalty paid to meet the 13% liability and any reasonable costs of paying the civil penalty. The notice must state the amount of each chargeable amount charged to the customer separately from any other amount charged for the sale of the electricity. If the customer does not pay a chargeable amount charged to the customer within a reasonable period after receiving the notice, the liable person may recover the chargeable amount from the customer as a debt. In deciding what is a reasonable period for subsection (5), regard must be had to the provisions of the contract. Subsections (3) to (6)— apply despite any other provision of this Act; but do not apply for a particular chargeable amount if the contract, by express words, provides for who is liable to pay that amount. In this section— review opportunity , for a contract, means an opportunity for the liable person, acting either alone or with the agreement of 1 or more of the other parties to the contract— to change how much the customer must pay for electricity sold under the contract; or to carry out a general review, renegotiation or alteration of how much the customer must pay for electricity sold under the contract. s 309 ins 2004 No. 50 s 17 amd 2006 No. 60 s 50 (sec.309-ssec.1) This section applies if— immediately before 1 January 2003, a contract was in force for the sale of electricity from a liable person to a customer who, under this Act as it was in force on that day, was a contestable customer; and under chapter 5A, the 13% liability is imposed on the liable person for electricity sold under the contract. (sec.309-ssec.2) However, this section does not apply, or ceases to apply, if a review opportunity arose or arises for the contract on or after 1 January 2003. (sec.309-ssec.3) The liable person may, by notice to the customer, charge the customer all or any of the following ( chargeable amounts )— the amount of the liable person’s reasonable costs incurred in meeting or managing the 13% liability for electricity sold under the contract; the cost of working out the relevant liable load the cost of acquiring GECs to surrender to meet the liability any fee paid to surrender the GECs an appropriate proportion of the costs of giving the relevant self-assessment report if the liable person is an accredited generator—an appropriate proportion of the relevant annual fee if the liable person is not an accredited generator—an appropriate proportion of the fee to apply to become a scheme participant and the relevant annual fee the cost of setting up an internal information technology system to manage the liability an amount equivalent to the amount of any civil penalty paid to meet the 13% liability and any reasonable costs of paying the civil penalty. (sec.309-ssec.4) The notice must state the amount of each chargeable amount charged to the customer separately from any other amount charged for the sale of the electricity. (sec.309-ssec.5) If the customer does not pay a chargeable amount charged to the customer within a reasonable period after receiving the notice, the liable person may recover the chargeable amount from the customer as a debt. (sec.309-ssec.6) In deciding what is a reasonable period for subsection (5), regard must be had to the provisions of the contract. (sec.309-ssec.7) Subsections (3) to (6)— apply despite any other provision of this Act; but do not apply for a particular chargeable amount if the contract, by express words, provides for who is liable to pay that amount. (sec.309-ssec.8) In this section— review opportunity , for a contract, means an opportunity for the liable person, acting either alone or with the agreement of 1 or more of the other parties to the contract— to change how much the customer must pay for electricity sold under the contract; or to carry out a general review, renegotiation or alteration of how much the customer must pay for electricity sold under the contract. - (a) immediately before 1 January 2003, a contract was in force for the sale of electricity from a liable person to a customer who, under this Act as it was in force on that day, was a contestable customer; and - (b) under chapter 5A, the 13% liability is imposed on the liable person for electricity sold under the contract. - (a) the amount of the liable person’s reasonable costs incurred in meeting or managing the 13% liability for electricity sold under the contract; Examples of reasonable costs that may be incurred in meeting the liability— • the cost of working out the relevant liable load • the cost of acquiring GECs to surrender to meet the liability • any fee paid to surrender the GECs • an appropriate proportion of the costs of giving the relevant self-assessment report • if the liable person is an accredited generator—an appropriate proportion of the relevant annual fee • if the liable person is not an accredited generator—an appropriate proportion of the fee to apply to become a scheme participant and the relevant annual fee Example of a reasonable cost that may be incurred in managing the liability— • the cost of setting up an internal information technology system to manage the liability - • the cost of working out the relevant liable load - • the cost of acquiring GECs to surrender to meet the liability - • any fee paid to surrender the GECs - • an appropriate proportion of the costs of giving the relevant self-assessment report - • if the liable person is an accredited generator—an appropriate proportion of the relevant annual fee - • if the liable person is not an accredited generator—an appropriate proportion of the fee to apply to become a scheme participant and the relevant annual fee - • the cost of setting up an internal information technology system to manage the liability - (b) an amount equivalent to the amount of any civil penalty paid to meet the 13% liability and any reasonable costs of paying the civil penalty. - • the cost of working out the relevant liable load - • the cost of acquiring GECs to surrender to meet the liability - • any fee paid to surrender the GECs - • an appropriate proportion of the costs of giving the relevant self-assessment report - • if the liable person is an accredited generator—an appropriate proportion of the relevant annual fee - • if the liable person is not an accredited generator—an appropriate proportion of the fee to apply to become a scheme participant and the relevant annual fee - • the cost of setting up an internal information technology system to manage the liability - (a) apply despite any other provision of this Act; but - (b) do not apply for a particular chargeable amount if the contract, by express words, provides for who is liable to pay that amount. - (a) to change how much the customer must pay for electricity sold under the contract; or - (b) to carry out a general review, renegotiation or alteration of how much the customer must pay for electricity sold under the contract.