sec.166RoLR cost recovery schemes

sec.166 RoLR cost recovery schemes

The AER must, on application by a registered RoLR, determine a RoLR cost recovery scheme for the RoLR. The application must be in the form and contain the information specified in the AER RoLR Guidelines. 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— in the case of a default RoLR only—costs incurred in preparing for RoLR events; and in the case of a designated RoLR only—costs incurred on and after a RoLR event, including— costs paid to an insolvency official of a failed retailer in respect of anything done under this Part; and costs paid to a distributor by the RoLR for service orders and not recoverable from the customers concerned or from the failed retailer; and Regarding subparagraph (i) above, see section 171 . Regarding subparagraph (ii) above, section 141 (7) deals with the case where a customer has paid the failed retailer for a service order and the order has not been completed as at the transfer date. other administration costs associated with the RoLR event; and additional energy costs in respect of customers acquired as a result of the RoLR event; and financing costs for additional credit support provided to AEMO for the acquired customers; and 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. 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. A registered RoLR may give an undertaking that the RoLR, under its cost recovery scheme— will not seek to recover a particular category of cost; or will seek to recover only a specified percentage of its incurred costs; or will seek to recover its incurred costs only up to a specified amount. The undertaking may be given by the RoLR to the AER— at the same time as it makes its application under subsection (1) ; or at another time for the purposes of including the undertaking as part of its cost recovery scheme. On the acceptance by the AER of an undertaking given under subsection (4b) (b) , the undertaking becomes part of the RoLR cost recovery scheme and the scheme must be updated by the AER to reflect this. The AER must publish on its website a notice of the application. The notice must invite submissions on the application. The notice must specify a period for making submissions of at least 20 business days. The AER may, if it is satisfied that the costs are clearly identifiable and quantifiable— not include in the notice the invitation to make submissions on the application; or specify a period of less than 20 business days in the notice. Subsections (5) to (5c) (inclusive) do not apply to an undertaking given under subsection (4b) (b) . The AER must decide whether to grant or refuse the application. The AER must, when making its decision on the application, be guided by the following principles: the registered RoLR should be provided with a reasonable opportunity to recover the reasonable costs that it incurs with respect to the RoLR scheme; the recovery of costs should allow for a return commensurate with the regulatory and commercial risks with respect to the RoLR scheme; costs not prudently incurred by the registered RoLR in meeting its obligations should not be recoverable. The AER must also have regard to the national energy retail objective. The AER may, in determining a RoLR cost recovery scheme, limit either generally or in particular cases or classes of cases the costs (and the amount of those costs) that are recoverable. Without limitation, the AER’s determination of a RoLR cost recovery scheme may, so far as it relates to or affects tariffs payable by customers, differ between customers and classes of customers. The AER must publish a copy of its decision on its website. s 166 amd 2025 No. 61 (SA) s 10 (sec.166-ssec.1) The AER must, on application by a registered RoLR, determine a RoLR cost recovery scheme for the RoLR. (sec.166-ssec.2) The application must be in the form and contain the information specified in the AER RoLR Guidelines. (sec.166-ssec.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— in the case of a default RoLR only—costs incurred in preparing for RoLR events; and in the case of a designated RoLR only—costs incurred on and after a RoLR event, including— costs paid to an insolvency official of a failed retailer in respect of anything done under this Part; and costs paid to a distributor by the RoLR for service orders and not recoverable from the customers concerned or from the failed retailer; and Regarding subparagraph (i) above, see section 171 . Regarding subparagraph (ii) above, section 141 (7) deals with the case where a customer has paid the failed retailer for a service order and the order has not been completed as at the transfer date. other administration costs associated with the RoLR event; and additional energy costs in respect of customers acquired as a result of the RoLR event; and financing costs for additional credit support provided to AEMO for the acquired customers; and 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. (sec.166-ssec.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. (sec.166-ssec.4a) A registered RoLR may give an undertaking that the RoLR, under its cost recovery scheme— will not seek to recover a particular category of cost; or will seek to recover only a specified percentage of its incurred costs; or will seek to recover its incurred costs only up to a specified amount. (sec.166-ssec.4b) The undertaking may be given by the RoLR to the AER— at the same time as it makes its application under subsection (1) ; or at another time for the purposes of including the undertaking as part of its cost recovery scheme. (sec.166-ssec.4c) On the acceptance by the AER of an undertaking given under subsection (4b) (b) , the undertaking becomes part of the RoLR cost recovery scheme and the scheme must be updated by the AER to reflect this. (sec.166-ssec.5) The AER must publish on its website a notice of the application. (sec.166-ssec.5a) The notice must invite submissions on the application. (sec.166-ssec.5b) The notice must specify a period for making submissions of at least 20 business days. (sec.166-ssec.5c) The AER may, if it is satisfied that the costs are clearly identifiable and quantifiable— not include in the notice the invitation to make submissions on the application; or specify a period of less than 20 business days in the notice. (sec.166-ssec.5d) Subsections (5) to (5c) (inclusive) do not apply to an undertaking given under subsection (4b) (b) . (sec.166-ssec.6) The AER must decide whether to grant or refuse the application. (sec.166-ssec.7) The AER must, when making its decision on the application, be guided by the following principles: the registered RoLR should be provided with a reasonable opportunity to recover the reasonable costs that it incurs with respect to the RoLR scheme; the recovery of costs should allow for a return commensurate with the regulatory and commercial risks with respect to the RoLR scheme; costs not prudently incurred by the registered RoLR in meeting its obligations should not be recoverable. The AER must also have regard to the national energy retail objective. (sec.166-ssec.8) The AER may, in determining a RoLR cost recovery scheme, limit either generally or in particular cases or classes of cases the costs (and the amount of those costs) that are recoverable. (sec.166-ssec.9) Without limitation, the AER’s determination of a RoLR cost recovery scheme may, so far as it relates to or affects tariffs payable by customers, differ between customers and classes of customers. (sec.166-ssec.10) The AER must publish a copy of its decision on its website.