43HPrinciples to be taken into account in approvals

43H Principles to be taken into account in approvals

(1)  In determining whether to approve a type of contract under section 43G(1) , the Regulator must take into account the following principles:

(a) the principle that authorised retailers should have a choice of different types of contracts to enter into with the Hydro-Electric Corporation;

(b) the principle that a type of contract ought to be, as far as reasonably practicable, of a type of contract generally used in the national electricity market.

(2)  In determining whether to approve a standard form under section 43G(1) in relation to a type of contract to be specified in an approval, the Regulator must take into account the following principles:

(a) the principle that the terms and conditions of the approved standard form should be generally similar to those offered in contracts, of the type of contract, used in the national electricity market;

(b) the principle that the total period referred to in section 43G(1)(d) should be of a duration similar to that generally used, for the purpose specified in that paragraph, in contracts in the national electricity market.

(3)  In determining whether to approve a methodology to be used for the calculation of prices in contracts that are in an approved standard form in relation to an approved type of contract, the Regulator must take into account the principle that –

(a) prices in such contracts should be based upon the price in contracts that –

(i) relate to managing the financial risks associated with the wholesale purchase of electricity in the Victorian region of the national electricity market; and

(ii) are of the approved type of contract –

as adjusted to accommodate any estimation by the Regulator of the effect of the difference between the supply of, and demand for, electricity in Tasmania after the approval is made; and

(b) prices in such contracts should reflect the risks, to an authorised retailer that enters into a contract that is in an approved standard form in relation to an approved type of contract, of variations in the demand for, or supply of, electricity in Tasmania that the retailer is required to provide under standard retail contracts with small customers.