40

40 Adjustment to prices in determination

(1)  In this regulation –

adjustment means an adjustment to the prices that an electricity entity or authorised retailer may charge, or to the price control mechanisms imposed on the electricity entity or authorised retailer, (or both), under a declared electrical 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 electricity entity or authorised retailer of providing the declared electrical service to which the determination relates; or

(c) under a performance incentive scheme.

(2)  The Regulator, by notice to an electricity entity or authorised 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 an electricity entity or authorised retailer if, when considering whether to approve an adjustment, the Regulator determines that –

(a) a tax event, or a material change in costs to the electricity entity or the authorised retailer of providing the declared electrical service to which the determination relates, has not occurred; or

(b) a standard of performance required for an adjustment has not been reached.

(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 declared electrical service price determination to which the adjustment relates.

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