Part 7Default contracts

Part 7—Default contracts 34—Interpretation In this Part— default contract means a retail contract under which a gas entity to which section 34B of the Act applies sells gas at the entity's default contract price and subject to the entity's default contract terms and conditions; default contract price and default contract terms and conditions have the same respective meanings as in section 34B of the Act; excluded area means an area that is for the time being determined by the Minister to be an excluded area; market contract means a retail contract other than a standing contract or default contract; standing contract means a retail contract under which a gas entity to which section 34A of the Act applies sells gas at the entity's standing contract price and subject to the entity's standing contract terms and conditions; standing contract price and standing contract terms and conditions have the same respective meanings as in section 34A of the Act. 35—Provisions relating to default contracts (1) If a person receives gas supply through a metered delivery point otherwise than under a retail contract— (a) that person; and (b) the gas entity that was last a party to a retail contract in relation to that delivery point, become parties to a default contract in relation to that delivery point for the purposes of section 34B(2) of the Act. (2) Subregulation (1) does not apply in relation to a metered delivery point situated within an excluded area. (3) The default contract continues until— (a) the customer becomes a party to a market contract or standing contract (whether with the same entity or some other gas entity) in relation to the delivery point; or (b) some other person becomes a party to a retail contract in relation to the delivery point; or (c) the occurrence of an event of a kind determined by the Commission. (4) On the gas entity becoming aware that it has become a party to the default contract, the entity must, within 5 business days, give the customer a written notice setting out the terms and conditions of the default contract and describing, in general terms, the other contractual options that may be available to the customer for the purchase of gas. (5) The gas entity must, in giving notice under subregulation (4), comply with any requirements imposed by a code made by the Commission under the Essential Services Commission Act 2002, relating to the contents of the notice or the manner in which the notice is to be given. (6) For the purposes of paragraph (b) of the definition of default contract price in section 34B(3) of the Act, the prescribed period is— (a) if the price fixed as the default contract price by the entity by the notice referred to in that paragraph is the same as the price that will be in force as the standing contract price (whether or not for the same entity) 14 days from the date of publication of that notice—14 days; or (b) in any other case—28 days.