58Energy operator may not be bound to supply

##### 58. Energy operator may not be bound to supply (1) Except in so far as — (a) an energy operator is expressly charged with a particular duty to do so in relation to any specific person, body, authority, premises or circumstances by or pursuant to this Act or any other Act; or (b) an energy operator is required to do so by or pursuant to any contract or agreement to which the energy operator is a party, whether made under the authority of or brought within the provisions of any Act, the energy operator is not bound to supply energy to any person, body or authority. (2) Notwithstanding that an energy operator may be expressly charged with a particular duty to effect or continue any supply of energy, or to effect, maintain or continue any such supply having particular characteristics, qualities or specifications, or is required so to do by or pursuant to any contract or agreement (except to the extent to which subsection (4) applies) or has in any other case effected from time to time a supply of energy, or such a supply having particular characteristics, qualities or specifications, then the energy operator shall nevertheless not be liable to effect, maintain or continue the supply of energy, or a supply having those particular characteristics, qualities or specifications, and shall not be required to pay compensation for or be liable in respect of any penalty, loss or damage thereby arising, if that supply — (a) is of a nature or extent that, in the opinion of the energy operator, will require an expenditure which the energy operator is unwilling to incur unless the person, body, or authority seeking to effect, maintain or continue such supply enters into an agreement with the energy operator under subsection (3) relating to the supply; or (b) is such that, in the opinion of the energy operator, it should be refused, curtailed or in some manner limited so as to ensure that any waste, nuisance, or undue consumption is prevented or remedied or that the available supplies or reserves of energy are conserved, whether for the time being or permanently; or (c) would in the opinion of the energy operator, interfere with, or adversely affect, any supply system, or cause annoyance to, or interfere with or otherwise adversely affect the supply of energy to, other persons, or would appear, in the opinion of the energy operator, to be unsafe or dangerous to life or property; or (d) relates to any land, premises or thing where — (i) any installation or apparatus provided or installed by any person, or the manner of use of the energy, or any other matter or thing, is not in compliance with a requirement previously made known by the energy operator, whether or not a prescribed requirement, applicable thereto; or (ii) any service apparatus provided or installed by or belonging to the energy operator has been interfered with or has not been maintained in compliance with a requirement previously made known by the energy operator, whether or not a prescribed requirement, applicable thereto; or (e) is affected by reason of measures taken in respect of a system emergency pursuant to section 57; or (f) is prevented, interrupted, curtailed, reduced or detrimentally affected by reason of any cause other than a negligent act or omission on the part of the energy operator or an officer, servant or agent of the energy operator. (3) Where an energy operator is by reason of the operation of this Act or any other Act at liberty to refuse to effect supply or to refuse to continue any supply the energy operator may nevertheless effect or continue such supply if the person, body or authority seeking to effect, maintain or continue the supply enters into an agreement with the energy operator relating to the supply on such terms and conditions as the energy operator thinks fit, including without limitation a condition that the person, body or authority is to pay to the energy operator the cost, as determined by the energy operator, of appropriate network development. (3a) In subsection (3) — appropriate network development means extending, or increasing the capacity of, the supply system to enable supply to be effected, maintained, or continued in accordance with the agreement, and it includes making those extensions or increases in capacity in a way that accommodates future demands on the supply system that the energy operator might anticipate, whether or not the demands of the person, body, or authority entering into the agreement. (4) Where any contract or agreement executed by an energy operator under its Common Seal so stipulates effect shall not, or shall to the extent stipulated but not otherwise, be given to subsection (2)(a) in relation to that contract or agreement. [Section 58 amended: No. 24 of 1986 s. 24; No. 89 of 1994 s. 20, 39 and 41; No. 58 of 1999 s. 83(1) and (3); (correction to reprint in Gazette 22 Nov 2002 p. 5533); No. 53 of 2003 s. 113.]