12Adjustment to prices in determination

12 Adjustment to prices in determination

(1)  In this regulation –

adjustment means an adjustment to the prices that a regulated offer retailer may charge, or to the price control mechanisms imposed on a regulated offer retailer, or both, under a price-regulated retail service price determination –

(a) as a result of the occurrence of a tax event; or

(b) as a result of a material change in costs to the regulated offer retailer, to which the determination relates, in relation to the provision to small customers of services under standard retail contracts.

(2)  The Regulator, by notice to a regulated offer retailer, may specify that an adjustment, specified in the notice, is approved and takes effect on the date specified in the notice as the date on which the adjustment is to take effect.

(3)  An adjustment takes effect on the date specified in a notice under subregulation (2) as the date on which the adjustment is to take effect.

(4)  The Regulator is to notify a regulated offer retailer if, when considering whether to approve an adjustment, the Regulator determines that –

(a) a tax event; or

(b) a material change in costs to the retailer in relation to the provision to small customers of services under standard retail contracts –

has not occurred.

(5)  The Regulator is not to approve an adjustment unless the Regulator is satisfied that the adjustment has been calculated in accordance with –

(a) the method of calculating that adjustment; or

(b) the principles to be applied in making the adjustment to the prices or to the price control mechanisms or in calculating the adjustment, and the general manner in which those principles are to be applied –

specified in the price-regulated retail service price determination to which the adjustment relates.

(6)  On approving or refusing to approve an adjustment, the Regulator is to notify the regulated offer retailer to which the adjustment relates.