166RoLR cost recovery schemes

166 RoLR cost recovery schemes

166 RoLR cost recovery schemes

(1) The AER must, on application by a registered RoLR, determine a RoLR cost recovery scheme for the RoLR.

(2) The application must be in the form and contain the information specified in the AER RoLR Guidelines.

(3) A RoLR cost recovery scheme is a scheme designed for the recovery by the RoLR of costs incurred by the RoLR in relation to the RoLR scheme, including—

(a) in the case of a default RoLR only—costs incurred in preparing for RoLR events; and

(b) in the case of a designated RoLR only—costs incurred on and after a RoLR event, including—

(i) costs paid to an insolvency official of a failed retailer in respect of anything done under this Part; and

(ii) costs paid to a distributor by the RoLR for service orders and not recoverable from the customers concerned or from the failed retailer; and

(iii) other administration costs associated with the RoLR event; and

(iv) additional energy costs in respect of customers acquired as a result of the RoLR event; and

(v) financing costs for additional credit support provided to AEMO for the acquired customers; and

(vi) financing costs to cover the period between a cost being incurred by the designated RoLR and the cost being recovered under the designated RoLR’s cost recovery scheme.

Notes—

(4) The AER may, after receipt of an application made under subsection (1), request from the retailer such additional information as the AER considers reasonably necessary for it to determine the application. The retailer must comply with any such request.

(4a) A registered RoLR may give an undertaking that the RoLR, under its cost recovery scheme—

(a) will not seek to recover a particular category of cost; or

(b) will seek to recover only a specified percentage of its incurred costs; or

(c) will seek to recover its incurred costs only up to a specified amount.

(4b) The undertaking may be given by the RoLR to the AER—