Div 3AStanding contracts and default contracts

Division 3A—Standing contracts and default contracts 34A—Standing contracts (1) This section applies to a gas entity holding a licence authorising the retailing of gas that is declared by the Governor under this section to be a gas entity to which this section applies. (2) It is a condition of the licence of a gas entity to which this section applies that the entity must, at the request of a small customer or customer of a prescribed class, agree to sell and supply gas to the customer at the entity's standing contract price and subject to the entity's standing contract terms and conditions. (4) An entity is not required to sell and supply gas to a customer in compliance with the condition imposed under subsection (2) if the entity is entitled in accordance with the entity's standing contract terms and conditions to refuse to sell and supply gas to the customer. (4a) The following provisions apply in relation to the fixing by the Commission of a standing contract price for an entity and class of customers for the purposes of this section: (a) the Commission may fix the price by a determination of a kind referred to in section 33(1)(a); (b) a determination, other than a determination under paragraph (f), must provide for the expiry of the determination at the end of a period of not less than 3 years specified in the determination; (c) a determination may provide for prices that vary at specified times according to a formula specified in the determination; (d) unless the Commission determines that special circumstances exist— (i) a determination may not be made to take effect before the expiry date of the last preceding determination made by the Commission in accordance with this subsection; (ii) a determination may only be made if the entity has made a submission to the Commission stating the price that the entity proposes be fixed by the Commission as the entity's standing contract price, and the entity's justification for the price, not less than 6 months and not more than 9 months before the making of the determination; (iii) the Commission must, before making a determination, have conducted an inquiry under Part 7 of the Essential Services Commission Act 2002 into the question of the appropriate price to be fixed as the standing contract price; (e) a submission under paragraph (d) must comply with any requirements as to the form and content of such submissions imposed by the Commission by written notice served on the entity; (f) if the Commission has determined that special circumstances exist—the Commission may make a determination that takes effect as a variation of the existing determination (with effect for the balance of the term of the existing determination (unless another variation is subsequently made)). (5) The Governor may, by proclamation— (a) declare that this section applies to a specified gas entity; and (b) vary or revoke such a declaration. (6) In this section— standing contract price, in relation to an entity and a customer, means— (a) the price fixed by the Commission in accordance with subsection (4a) as the entity's standing contract price for a class of customers to which the customer belongs; or (b) if there is no price for the time being fixed by the Commission as the entity's standard contract price in accordance with subsection (4a)—the price fixed under this Act as at 31 December 2002 for the sale and supply of gas to a class of customers to which the customer belongs; standing contract terms and conditions, in relation to a gas entity, means terms and conditions that have been published by the gas entity under section 34 as the entity's standing contract terms and conditions. (7) The Governor may, by proclamation, fix a day on which this section expires. 34B—Default contracts (1) This section applies to a gas entity holding a licence authorising the retailing of gas that sells gas to one or more small customers in South Australia. (2) It is a condition of the gas entity's licence that the entity must, if the entity becomes bound, in accordance with the regulations, to sell and supply gas to a small customer under a default contract arrangement for a period specified in the regulations— (a) give the customer a written notice in accordance with the regulations; and (b) sell and supply gas to the customer at the entity's default contract price and subject to the entity's default contract terms and conditions for that period. (3) In this section— default contract price, in relation to a gas entity and a customer, means whichever of the following is the price last fixed: (a) the price last fixed under this Act for the sale and supply of gas to a class of customers to which the customer belongs; (b) a price fixed by the entity as the entity's default contract price for a class of customers to which the customer belongs by notice published in the Gazette and in a newspaper circulating generally in the State, where— (i) the price was fixed by the notice with effect from the end of the prescribed period from the date of publication of the notice; and (ii) the notice contained a statement of the entity's justification for the price; and (iii) the Commission did not, within the prescribed period, fix the entity's default contract price as referred to in paragraph (c); (c) a price fixed by the Commission as the entity's default contract price for a class of customers to which the customer belongs by a determination of a kind referred to in section 33(1)(a); default contract terms and conditions means terms and conditions that have been published by the gas entity under section 34 as the entity's default contract terms and conditions.