Part 5AAER trial waiver functions

Part 5A—AER trial waiver functions 121A—Definitions proponent—see section 121C(1). 121B—Interpretative matters (1) The functions of the AER under this Part are the AER trial waiver functions. (2) This Part does not limit any other provision of this Law or the Rules that provides for an exemption from, or for the waiver of, compliance with this Law or the Rules. 121C—Trial waiver (1) Subject to this section, the AER may, on application by a person or body that proposes to undertake a trial project (a proponent), make a determination to grant the proponent an exemption (a trial waiver) from 1 or more of the following: (a) section 88 of this Law; (b) the Rules, or a provision of the Rules. (2) Before making a determination to grant a trial waiver, the AER must have regard to the innovative trial principles and any matter required by the Rules. (3) An application for a trial waiver must be made in accordance with the Rules. 121D—Conditions of trial waiver (1) A trial waiver must be in writing and— (a) must be subject to any conditions required by the Rules; and (b) may be subject to any conditions the AER considers appropriate. (2) The AER may vary or revoke a condition of a trial waiver in accordance with the Rules. 121E—Consultation on trial waiver Before granting a trial waiver, the AER must— (a) comply with any requirements specified by the Rules; and (b) undertake consultation (including with the proponent) in accordance with the Rules. 121F—Publication etc of trial waiver As soon as practicable after a trial waiver is made, a copy of the trial waiver must be published on the AER's website. 121G—Duration of trial waiver Subject to this Part, a trial waiver has effect from the day specified in the trial waiver and for the period (not exceeding 5 years) specified in the trial waiver. 121H—Extension of trial waiver (1) The AER may, in accordance with the Rules, extend the period for which a trial waiver granted under this Part has effect by a period determined by the AER (which cannot exceed the period prescribed by the National Regulations). (2) Before granting an extension under subsection (1), the AER must have regard to the innovative trial principles and any matter required by the Rules. (3) An extension under subsection (1) must be in writing and must be published on the AER's website. (4) An extension under subsection (1) may only be granted once in respect of a trial waiver granted under this Part. 121I—Compliance with trial waiver (1) A proponent granted a trial waiver must comply with any conditions to which the trial waiver is subject. (2) If a proponent breaches subsection (1), the AER may— (a) revoke the trial waiver; or (b) vary or revoke a condition of, or impose further conditions on, the trial waiver. (3) Nothing in this section limits section 121J. 121J—Revocation of trial waiver The AER may, in accordance with the Rules, revoke a trial waiver granted under this Part. 121K—Other matters (1) The AER must not grant a trial waiver if the AER reasonably considers— (a) that the trial project for which the trial waiver is sought is materially similar to a trial project— (i) for which a trial Rule has been made; or (ii) that is the subject of a request under section 243(1) for the making of a trial Rule; or (b) that the trial project is unlikely to be carried out. (2) The AER cannot grant itself a trial waiver. Part 6—Retailer of last resort scheme 121—Purpose of this Part This Part establishes a retailer of last resort scheme (the RoLR scheme). 122—Definitions additional RoLR—see section 126; AER RoLR Guidelines—see section 135; applicable access arrangement means an applicable access arrangement within the meaning of the NGL; connection point has the same meaning as it has in the NER; default RoLR means a retailer appointed and registered as a default RoLR under Division 2; designated RoLR means a registered RoLR who is appointed or is taken to be appointed as a designated RoLR under Division 4 for a RoLR event; distribution determination means a distribution determination within the meaning of the NEL; failed retailer means a retailer (or former retailer) in relation to whom a RoLR event has occurred; financial information—see section 130(4)(a); insolvency official means a receiver, receiver and manager, administrator, provisional liquidator, liquidator, trustee in bankruptcy or person having a similar or analogous function; member of its marketing staff, in relation to a RoLR, means a person who is an officer, employee, consultant, independent contractor or agent of the RoLR and who is directly involved in the sale, marketing or advertising of customer retail services provided by the RoLR, but does not include such a person if— (a) the person's function or role is only to provide technical, administrative, legal or accounting services; or (b) the sale, marketing or advertising of those services is only an incidental part of the person's function or role; registered RoLR means a retailer registered as a RoLR under section 127; relevant designated RoLR for a customer, in relation to a RoLR event, means— (a) if only one RoLR is designated for the event—that RoLR; or (b) if more than one RoLR is designated for the event—the RoLR allocated to the customer; RoLR means a retailer of last resort; RoLR cost recovery scheme—see Division 9; RoLR cost recovery scheme distributor payment determination—see section 167; RoLR criteria—see section 123; RoLR event, in relation to a retailer, means any of the following events or circumstances: (a) the revocation of the retailer's retailer authorisation; (b) in the case of electricity— (i) the right of the retailer to acquire electricity from the wholesale exchange is suspended; or (ii) the retailer ceases to be a Registered participant in relation to the purchase of electricity directly through the wholesale exchange, as required by section 11(4) of the NEL; (c) in the case of gas— (i) the right of the retailer to acquire gas either in the declared wholesale gas market or in the short term trading market is suspended; or (ii) the retailer's registration as a Registered participant, in relation to the declared wholesale gas market or a short term trading market, is revoked; or (iii) where there is no declared wholesale gas market or short term trading market, the retailer's registration as a Registered participant in a retail gas market is revoked; (d) an insolvency official is appointed in respect of the retailer or any property of the retailer; (e) an order is made for the winding up of the retailer or a resolution is passed for the winding up of the retailer; (f) the cessation of the sale of energy by the retailer to customers, otherwise than by— (i) transfer of its retailer authorisation in accordance with Division 3 of Part 5; or (ii) surrender of its retailer authorisation in accordance with Division 4 of Part 5; or (iii) transfer of all or some of its customers to another retailer; or (iv) selling or otherwise disposing in whole or in part its business of the sale of energy (being the activity to which the retailer's authorisation relates) to another retailer; (g) any other event or circumstance prescribed by the National Regulations; RoLR notice—see section 136; RoLR Procedures—see section 144; RoLR register EoI—see section 124; RoLR regulatory information notice—see section 151; RoLR scheme means the scheme constituted by— (a) this Part; and (b) the RoLR Procedures; and (c) the National Regulations; transfer date for the customers of a failed retailer—see section 136(2)(e); wholesale exchange for electricity means the wholesale exchange operated and administered by AEMO under the NEL and NER. Division 2—Registration of RoLRs 123—RoLR criteria (1) The RoLR criteria in relation to a retailer are as follows: (a) the organisational and technical capacity criterion—the extent to which the retailer has the necessary organisational and technical capacity to meet the obligations of a RoLR, either by— (i) having adequate systems in place for that purpose; or (ii) being able to implement adequate systems in a timely manner for that purpose; (b) the financial resources criterion—the extent to which the retailer has adequate resources or access to adequate resources so that it will have the financial viability and financial capacity to meet the obligations of a RoLR; One matter to take into consideration under this criteria may be whether a retailer has hedging contracts adequate for it to be a RoLR. (c) the suitability criterion—whether the retailer is a suitable person to be a RoLR, taking into consideration— (i) the number of customers the retailer has; and (ii) the class or classes of customers the retailer has; and (iii) the area or areas that the retailer currently serves; and (iv) in the case of gas and where there is no declared wholesale gas market or short term trading market—whether and to what extent the retailer has— (A) gas available to it by means of a distribution pipeline; and (B) capacity available to it on that distribution pipeline and any relevant transmission pipeline, sufficient for it to be a RoLR; (d) any other relevant matters specified in the energy laws; (e) any other matters the AER considers relevant in the circumstances. (2) In this section, transmission pipeline and distribution pipeline have the same meanings as they have in the NGL. 124—Expressions of interest for registration as a RoLR (1) The AER must both initially and afterwards at such times as it considers appropriate call for an expression of interest (RoLR register EoI) from retailers for registration as a RoLR. (2) A RoLR register EoI may be lodged by a retailer with the AER either in response to an AER call for expressions of interest or at any other time. (3) A RoLR register EoI must contain such information as will enable the AER to take the RoLR criteria into consideration in relation to the retailer and otherwise be in accordance with the AER RoLR Guidelines. (4) A RoLR register EoI may contain proposals as to— (a) customers or classes of customers the retailer will accept as its customers if it were to be appointed a designated RoLR in respect of a RoLR event; and (b) numbers of customers the retailer will accept if it were to be appointed a designated RoLR in respect of a RoLR event; and (c) variation to the retailer's RoLR cost recovery scheme. (5) Subsections (3) and (4) do not limit the information that may be included in a RoLR register EoI or the proposals that a retailer may make in that expression of interest. (6) The AER may, after receipt of a RoLR register EoI, request from the retailer such additional information as the AER considers reasonably necessary for it to make a decision with respect to the RoLR register EoI. The retailer must comply with any such request. (7) The AER must publish a notice of each RoLR register EoI on its website. 125—Appointment and registration as a default RoLR (1) The AER must appoint and register a default RoLR for— (a) in the case of electricity—each connection point; and (b) in the case of gas—each distribution system of each distributor. (2) The AER must ensure that there is one and no more than one default RoLR registered for each connection point (in the case of electricity) and for each distribution system (in the case of gas) at all times. (3) Lodgement of a RoLR register EoI is not a precondition to the AER appointing and registering a retailer as a default RoLR although if the AER proposes to appoint and register a retailer as a default RoLR without a RoLR register EoI first being lodged, the AER must consult with the retailer before appointing and registering the retailer. (4) A retailer that the AER proposes to appoint and register as a default RoLR must provide the AER with such information as the AER considers reasonably necessary to make the appointment and register the retailer as a default RoLR. (5) A retailer's concurrence is not required for appointment and registration as a default RoLR. (6) The AER must take the RoLR criteria into consideration when deciding whether to appoint and register a retailer as a default RoLR. (7) The AER must not appoint and register a retailer as a default RoLR if the retailer does not satisfy all the requirements of the RoLR criteria unless otherwise there would be no default RoLR for a connection point (in the case of electricity) or a distribution system (in the case of gas) and the AER is satisfied that the retailer most nearly satisfies the financial resources criterion (see section 123(1)(b)). (8) If a retailer does not, at the time of registration as a default RoLR, meet the organisational and technical capacity criterion (see section 123(1)(a)), the retailer must as soon as practicable after registration implement adequate systems to meet that criterion and advise the AER when those systems are implemented. (9) The AER may terminate a retailer's appointment and registration as a default RoLR at any time, but is not obliged to do so. (10) The AER must publish on its website notice of any appointment of a default RoLR or termination of an appointment under this section. (11) A retailer is not entitled to be appointed and registered as a default RoLR even though it satisfies (or appears to satisfy) the RoLR criteria. 126—Registration of additional RoLRs (1) The AER may register one or more retailers as an additional RoLR for a connection point (in the case of electricity) or a distribution system (in the case of gas). (2) The AER must take the RoLR criteria into consideration when deciding whether to register a retailer as an additional RoLR. (3) The AER must not register a retailer as an additional RoLR unless the retailer has lodged a RoLR register EoI. (4) A retailer registered as an additional RoLR may be registered as a RoLR in addition to the default RoLR registered for the connection point or distribution system concerned. (5) A retailer who, in the case of electricity, is a default RoLR for a connection point may be registered as an additional RoLR for any connection point for which it is not the default RoLR. (6) A retailer who, in the case of gas, is a default RoLR for a distribution system may be registered as an additional RoLR for any distribution system for which it is not the default RoLR. (7) The AER may at the same time as it registers a retailer as an additional RoLR, and if the retailer consents, impose conditions as to— (a) customers or classes of customers that may be transferred to the retailer as its customers if it is appointed a designated RoLR in respect of a RoLR event; and (b) numbers of customers that may be transferred to the retailer if it is appointed a designated RoLR in respect of a RoLR event; and (c) variations of the retailer's RoLR cost recovery scheme. (8) Subsection (7) does not limit the conditions that the AER may impose with the retailer's consent. (9) A retailer is not entitled to registration as an additional RoLR even though it satisfies or appears to satisfy the RoLR criteria. (10) The AER must publish on its website notice of registration of an additional RoLR. 127—Register of RoLRs (1) The AER must maintain, and publish on its website, a register of RoLRs (the RoLR register) which— (a) must include particulars of RoLRs registered under this Division, including— (i) whether the RoLR is registered as a default RoLR (and, if so, for which connection points or distribution systems); and (ii) whether the RoLR is registered as an additional RoLR (and, if so, what conditions apply to its registration); and (b) may include other particulars or information the AER considers necessary or desirable. (2) If the AER registers a retailer as a RoLR, it must enter the particulars of the retailer on the RoLR register. (3) If the AER decides to terminate the registration of a retailer as a RoLR, it must remove the particulars of the retailer from the RoLR register. Termination and removal of a retailer from the RoLR register (or, in the case of a default RoLR, termination of its appointment and registration as a default RoLR and removal from the register) does not affect any accrued rights or obligations that the retailer had by reason of its registration. (4) A RoLR whose particulars are entered on the RoLR register is a registered RoLR for so long as its particulars remain on the RoLR register. 128—Termination of registration as a RoLR (1) The registration of a RoLR (other than a default RoLR) may be terminated in either of the following ways: (a) the registered RoLR applying to the AER pursuant to this section for its registration to be terminated; (b) the AER giving to the registered RoLR a notice to show cause why its registration should not be terminated. (2) If the AER gives a retailer a notice to show cause under subsection (1)(b), the notice must state that any submissions by the registered RoLR must be made to the AER within a specified period of at least 20 business days. (3) The AER must publish on its website— (a) a notice of any application under subsection (1)(a); and (b) any notice to show cause under subsection (1)(b). (4) Any such notice published on the AER website must invite submissions on the application or the notice to show cause within a specified period of at least 20 business days. (5) The AER may, after considering any submissions made to it, terminate the RoLR's registration. (6) If the AER terminates the RoLR's registration, it must publish notice of the termination on its website. 129—New basis for registration as a RoLR (1) If AEMO advises the AER that a RoLR may be registered on a basis other than for a connection point (in the case of electricity) or a distribution system (in the case of gas), the AER may register the RoLR on that basis (the new basis). There still must be (disregarding any failed retailer) no more than one default RoLR for the matter or thing that comprises the new basis for registration. (2) Notice of the new basis for registration must be published by the AER on its website. (3) References in this Division to a connection point (in the case of electricity) or a distribution system (in the case of gas) are taken to include a reference to any new basis for registration. Division 3—Contingency events 130—AER's powers (1) If the AER receives notice of or otherwise becomes aware of any event, circumstance or matter that it has reason to believe may or will affect, or give rise to some risk of affecting, continuity of the sale of energy to a retailer's customers, the AER may act under this Division. (2) Events, circumstances or matters for the purposes of this Division include (without limitation) any of the following: (a) the events and circumstances that constitute a RoLR event; (b) any material default by the retailer in provision of required credit support to a distributor under the NER or NGR as appropriate; (c) any material default by the retailer in payment of network charges; (d) any other material default by the retailer with respect to its obligations under energy laws with respect to the payment of money, the provision of securities or otherwise of a financial nature. (3) It is not a prerequisite for the AER to act under this Division that an event, circumstance or matter has come into existence, and the AER may instead so act if it has reason to believe that there is some risk that the event, circumstance or matter may come into existence. (4) In acting under this Division the AER may do any of the following: (a) request information (financial information) from the retailer including (but not limited to) any of the following: (i) details of any parent company guarantees; (ii) details of cash flow; (iii) details of amounts owing to distributors; (iv) details of the retailer's current financial position together with the most recent financial statements of the retailer; (b) subject to and in accordance with the confidentiality provisions applicable to this Division— (i) consult with AEMO; and (ii) for that purpose disclose some or all of the financial information to AEMO and its officers or employees. (5) If the AER has reason to believe that there is a risk of a RoLR event, the AER may, subject to and in accordance with the confidentiality provisions applicable to this Division, do any of the following: (a) inquire of one or more registered RoLRs as to whether it wants to be appointed designated RoLR for that event; (b) give notice of that belief and of the grounds for the belief to one or more of the following: (i) distributors; (ii) registered RoLRs of whom the inquiries are made; (iii) relevant default RoLRs; (iv) such other person as the AER considers relevant, but it must, in any such case, give notice of that belief and of the grounds for the belief to AEMO and Ministers of participating jurisdictions. (6) The AER may, subject to and in accordance with Division 7, issue a RoLR regulatory information notice to obtain the financial information. 131—Confidentiality provisions (1) This section contains confidentiality provisions applicable to this Division and also applies where the AER serves a regulatory information notice in connection with the exercise of the AER's functions and powers under this Division. (2) In the case of the AER, it must keep confidential— (a) its request for financial information (including, if it issues one, the issue of a regulatory information notice to obtain the information) and the financial information provided in response to the request; and (b) both its belief as to the risk of a RoLR event and the fact and nature of its inquiries of registered RoLRs, but it may disclose any or all of those matters or that financial information as allowed or required by this Division or otherwise in accordance with Division 3 of Part 8. (3) In the case of AEMO, it must keep the fact and nature of the consultations between it and the AER, the financial information and the AER notice given under section 130(5)(b) confidential, but it may disclose them in accordance with Division 6 of Part 5 of the NEL and Division 7 of Part 6 of Chapter 2 of the NGL. (4) In the case of persons other than the AER and AEMO who are given the AER notice of the risk of a RoLR event, they must keep the fact and nature of the notice (and the information it contains) confidential and— (a) must use it only for the purpose of preparing for the RoLR event; and (b) must not (in the case of the default RoLR or registered RoLR of whom the AER's inquiries are made) disclose the notice, its issue and information to any member of its marketing staff; and (c) may disclose it to third parties only if those third parties also agree to be bound by the same confidentiality requirements as those persons are subject to under this Law, except to the extent that— (d) the notice is in the public domain; or (e) the AER or AEMO has published the notice in accordance with this Division; or (f) the retailer the subject of the notice has published the notice under Chapter 6CA of the Corporations Act 2001 of the Commonwealth; or (g) a Minister has published the notice in the case of an emergency or in a case where that Minister considers it is otherwise necessary or desirable to do so in the public interest. (5) The matters and financial information referred to in subsection (3) are taken to be protected information for the purposes of the provisions of the NEL and NGL referred to in that subsection. Division 4—Appointment of designated RoLRs 132—Designation of registered RoLR for RoLR event (1) The AER may appoint 1 or more registered RoLRs as designated RoLRs for a RoLR event— (a) before the RoLR event; or (b) within 72 hours after the RoLR event. (2) The appointment is made by the AER giving written notice of the appointment to the registered RoLR and AEMO. (2a) The appointment takes effect— (a) immediately; or (b) from an earlier or later time specified in or fixed in accordance with the RoLR notice. (2b) If no registered RoLR is appointed for a RoLR event before the RoLR event occurs, the default RoLR is taken to be appointed as the designated RoLR for the RoLR event— (a) on the occurrence of the event; or (b) from an earlier or later time specified in or fixed in accordance with the RoLR notice for the RoLR event. (3a) The appointment of the default RoLR as the designated RoLR under subsection (2b) also operates subject to— (a) any other provision made in the RoLR notice for the RoLR event; and (b) any determination by the AER in the circumstances of the particular case (including a determination that has the effect of over‑riding the operation of subsection (2b) so that an appointment under that subsection will be taken not to have been made). (4) The AER must notify a registered RoLR before appointing it as a designated RoLR, but the registered RoLR's consent is not required for appointment. (5) If— (a) the AER includes a direction under section 137 in a RoLR notice; and (b) there is more than one distributor who will receive the direction; and (c) the distribution systems of those distributors are connected to the same transmission pipeline, only the same designated RoLR may, despite any other provision of this Part, be appointed (or be taken to be appointed) as the designated RoLR for each of those distribution systems. 133—Criteria for RoLR designation (1) In determining whether to appoint a registered RoLR as a designated RoLR, the AER must take into consideration— (a) the RoLR criteria; and (b) whether the registered RoLR has a RoLR cost recovery scheme (see Division 9 and subsection (2)) and if so what costs are recoverable pursuant to that scheme and the amount or likely amount of those costs; and (c) the imminence of the RoLR event; and (d) any other matters the AER considers relevant in the circumstances. (2) The registered RoLR and the AER may by agreement vary the RoLR's cost recovery scheme for the purposes of this section, and the reference in subsection (1)(b) to the RoLR cost recovery scheme is accordingly a reference to that scheme as so varied. 134—Appointment of more than one designated RoLR for RoLR event (1) The AER may appoint more than one designated RoLR for a RoLR event if the AER is of the opinion that it is appropriate to do so having regard to the size of, or other circumstances surrounding, the event. (2) When making the appointments, the AER must allocate responsibility for particular customers or classes of customers to each designated RoLR in the manner specified in guidelines under section 135(2)(b). (3) The AER must, to the maximum practicable extent, make the appointments and allocations in accordance with the AER RoLR Guidelines except to the extent that the AER is satisfied that compliance with the guidelines would be inappropriate in the circumstances. 135—AER RoLR Guidelines (1) The AER must develop, make and maintain AER RoLR Guidelines in accordance with the retail consultation procedure. (2) The guidelines must— (a) specify the circumstances in which the appointment of more than one designated RoLR for a RoLR event may occur; and (b) specify the manner of determining the allocation of the designated RoLRs to particular customers or classes of customers; and (ba) specify how compliance with the requirements of section 148A(3) will be assessed; and (c) provide for any other matter that the AER considers necessary in the circumstances. (3) The guidelines may (without limitation) make different provision for the failure of large retailers, small retailers and retailers that are default RoLRs. (4) The manner of determining the allocation of designated RoLRs referred to in subsection (2) must involve the use of meter identifiers alone or the use of a combination of meter identifiers and other means acceptable to AEMO, and must be determined by the AER in consultation with AEMO. (5) The guidelines may (without limitation)— (a) specify the form of and information to be included in a RoLR register EoI; and (b) specify the form of and information to be included in an application for a RoLR cost recovery scheme; and (c) provide for any other matter the AER considers necessary with respect to the RoLR scheme. (6) The AER may amend the guidelines in accordance with the retail consultation procedure. Division 5—Declaration of RoLR event 136—Issue of RoLR notice (1) The AER may decide to issue a notice (a RoLR notice) on the occurrence of a RoLR event. (1a) The AER must decide whether or not to issue a notice under subsection (1) as soon as practicable after the RoLR event occurs. (2) A RoLR notice must— (a) state that the RoLR event has occurred and identify it; and (b) specify the failed retailer; and (c) specify the registered RoLR or registered RoLRs appointed by the notice (or taken to be appointed) under section 132 as designated RoLR or designated RoLRs for the event; and (d) if more than one designated RoLR is appointed—specify, in accordance with the AER RoLR Guidelines, the allocation of each designated RoLR to particular customers or classes of customers; and (e) specify the date, or the manner of fixing the date, (either of which is the transfer date) on which the customers of the failed retailer are transferred to the relevant designated RoLR under section 140; and (f) contain the endorsement revoking the failed retailer's retailer authorisation, where applicable, under section 142; and (g) include any other information or matters the AER considers necessary or desirable. (2a) If information required under subsection (2)(c) or (d) is not known by the AER when the notice is issued— (a) the notice must be amended to include the information as soon as practicable after the information becomes known by the AER; and (b) customers of the failed retailer must not be transferred before the information required under subsection (2)(c) and (d) is included in the notice. (3) A RoLR notice may contain requirements (not inconsistent with this Law or the RoLR Procedures) to be complied with by— (a) the failed retailer; and (b) a designated RoLR; and (c) subject to section 143(3), other persons on whom the notice is served, in relation to the RoLR event and in particular in relation to the transfer of customers. (4) A RoLR notice must be framed so as to deal with all customers of the failed retailer, but a failure to do so does not invalidate the notice and the notice has effect for the customers covered by it. (5) The transfer date may be on, before or after the date of service or publication of the RoLR notice, but if the RoLR event is— (a) the revocation of the retailer's retailer authorisation; or (b) the suspension of the retailer's right to participate— (i) in the case of electricity—in the wholesale exchange market; or (ii) in the case of gas—either in the declared wholesale gas market or in a short term trading market, the transfer date is taken to be the date of the revocation or suspension (as the case may be), unless an earlier date is specified or fixed. (6) The AER may amend a RoLR notice by a later notice issued by the AER, but a RoLR notice cannot be amended so as to change— (a) a transfer date if the date has already been reached; or (b) without the consent of AEMO and the designated RoLR, an allocation of a customer if AEMO has acted on the allocation or if changing the allocation would (or would be likely to) affect continuity of the sale of energy to customers. 137—RoLR notice—direction for gas (1) If, in the case of gas, there is no declared wholesale gas market or short term trading market or where, in the opinion of the AER, sufficient capacity or gas is not available in a short term trading market, the AER may include a direction in a RoLR notice to the effect of any or all of the following: (a) a distributor must make available to a designated RoLR the capacity that was available, immediately before the transfer date, to the failed retailer on the distributor's distribution pipeline; (b) a service provider for a transmission pipeline must make available to a designated RoLR the capacity that was available, immediately before the transfer date, to the failed retailer on the provider's transmission pipeline; (c) a producer or any other person that has contracted to sell gas to the failed retailer must make available to a designated RoLR the gas that was contracted to the failed retailer; (d) a blend processing service provider must make available to a designated RoLR the capacity in its blend processing facility that, immediately before the transfer date, was available to the failed retailer. (1a) The pipeline capacity or gas supply must be made available to the designated RoLR under subsection (1) within 24 hours after the RoLR notice containing the direction is given. (2) In forming its opinion under subsection (1) as to whether or not sufficient gas is available in a short term trading market, the AER may proceed on the assumption that there is not sufficient gas unless, before the issue of a RoLR notice, AEMO notifies the AER in writing that there is sufficient gas. (3) The following subsections of this section apply if the AER includes a direction under subsection (1). (4) The designated RoLR may, but is not obliged to, use any or all of the capacity or take any or all of the gas made available to it by a person who received a direction under subsection (1). (5) The terms and conditions for the transmission, distribution, sale and supply of gas to the designated RoLR— (a) are— (i) if there is an applicable access arrangement with respect to the distribution pipeline or transmission pipeline—to be in accordance with that applicable access arrangement; or (ii) if there is no applicable access arrangement—to be on the same terms and conditions as the contract for pipeline services (however the contract is named in the contract or elsewhere, but referred to in this section as the haulage contract) in force with the failed retailer immediately before the transfer date; and (b) are otherwise to be the same terms and conditions as in the gas sale and purchase contract (however the contract is named in the contract or elsewhere, but referred to in this section as the gas sale contract) in force with the failed retailer immediately before the transfer date. (5a) The terms and conditions for access by the designated RoLR to a blend processing facility are to be the same terms and conditions applicable to the failed retailer immediately before the transfer date. (6) Despite subsection (5), if the terms and conditions of the haulage contract or the gas sale contract materially differ from those that otherwise prevail in the market, the AER may specify in the RoLR notice (or an amendment, which may have effect back to the transfer date) terms and conditions that, in its opinion, better accord with those that otherwise prevail in the market. (6a) Despite subsection (5a), the AER may specify terms and conditions if— (a) the terms and conditions under which the failed retailer accessed the blend processing facility materially differ from those that otherwise prevail in the market; and (b) the AER considers that the terms and conditions it specifies better accord with the terms and conditions that otherwise prevail in the market. (6b) For subsection (6a), the terms and conditions specified by the AER may be specified in— (a) the RoLR notice; or (b) an amendment to the RoLR notice, which may have effect back to the transfer date. (7) In forming its opinion under subsection (6) or (6a) as to terms and conditions that better accord with those that otherwise prevail in the market, the AER may (without limitation) take into account the individual circumstances of the failed retailer and the designated RoLR. (8) The designated RoLR and distributor or service provider of the transmission pipeline (as the case may be) must, as soon as practicable after the transfer date, commence negotiations for a replacement contract for pipeline services. (8a) The designated RoLR and a relevant blend processing service provider must, as soon as practicable after the transfer date, commence negotiations for a replacement contract for access to the blend processing facility. (9) If a replacement contract is agreed, the direction ceases to have effect as from the date the replacement contract has effect. (10) If, after 3 months from the transfer date, no replacement contract has been agreed— (a) either party may commence an access dispute under Chapter 5 of the NGL; and (b) the provisions of section 91BH(4) of the NGL apply to the access dispute in the same way as they apply to a determination by the AER of an access dispute referred to in those provisions; and (c) the direction continues in force for the haulage contract until an access determination has effect under the NGL. (11) For the purposes of subsection (10)(a), the failure to agree to a replacement contract is taken to be an access dispute within the meaning of section 2(1) of the NGL. (12) If the gas sale contract in its terms continues in force despite the RoLR event— (a) the insolvency official of the failed retailer or the failed retailer (as the case may be) must as soon as practicable after the transfer date commence negotiations with the designated RoLR and the producer or other person who was under the contract selling gas to the failed retailer for— (i) the novation of the contract; or (ii) its termination and replacement by a new contract, between the designated RoLR and the producer or other person; and (b) if a novation or replacement contract is agreed, the direction ceases to have effect for the gas sale contract as from the date the novation or replacement contract has effect; and (c) if, after 3 months from the transfer date, there is no agreement— (i) the insolvency official or failed retailer (as the case may be) must put the gas that is the subject of the contract up for sale by auction and must use their best endeavours to ensure that the auction is completed and the gas is sold within 6 months of the transfer date; and (ii) the insolvency official or failed retailer (as the case may be) and the producer or other person who was under the contract selling gas to the failed retailer must execute all documents required for both the auction and the sale of gas, including any new gas sale and purchase contract (however named in the contract or elsewhere) or any novation contract consequent on the auction; and (iii) when the gas has been sold, the direction ceases to have effect for the gas sale contract. (13) If the gas sale contract in its terms terminates or is terminated because of the RoLR event— (a) the producer or other person who was under the contract selling gas to the failed retailer (as the case may be) must as soon as practicable after the transfer date commence negotiations with the designated RoLR for a new contract between the designated RoLR and the producer or other person; and (b) if a new contract is agreed, the direction ceases to have effect for the gas sale contract as from the date the replacement contract has effect; and (c) if, after 3 months from the transfer date, there is no agreement— (i) the producer or other person who was under the terminated contract selling gas to the failed retailer (as the case may be) must put the gas that is the subject of the terminated contract up for sale by auction and must use their best endeavours to ensure that the auction is completed and the gas is sold within 6 months of the transfer date; and (ii) the producer or other person who was under the terminated contract selling gas to the failed retailer (as the case may be) must execute all documents required for both the auction and the sale of gas, including any new gas sale and purchase contract (however named in the contract or elsewhere) consequent on the auction; and (iii) when the gas has been sold, the direction ceases to have effect for the gas sale contract. (14) In this section, access determination, blend processing facility, blend processing service provider, distribution pipeline, pipeline services, producer, service provider and transmission pipeline have the same meanings as in the NGL and distributor includes a service provider for a pipeline that is not a scheme pipeline within the meaning of the NGL. 138—Service and publication of RoLR notice (1) A RoLR notice or a notice amending a RoLR notice— (a) must be given to— (i) the failed retailer at its registered office and (if different) its principal place of business; and (ii) any insolvency official of the failed retailer; and (iii) AEMO; and (iv) the designated RoLR or RoLRs; and (v) the distributors; and (vi) the Ministers of the participating jurisdictions; and (b) may be given to any other person whom the AER considers appropriate to be served; and (c) must be published on the AER's website; and (d) must be published by AEMO and copies provided by AEMO to all Registered participants within the meaning of the NEL and NGL. (2) The notice should, if reasonably practicable, be given before being published, but prior publication does not affect the validity or operation of the notice. (3) The notice is effective, in accordance with its terms, on and from the date of service or the date of publication, whichever first occurs. 139—Publication requirements for RoLR events (a1) This section applies if a RoLR notice is issued by the AER. (1) Notice of the RoLR event must be published on— (a) the AER's website; and (b) AEMO's website; and (c) the failed retailer's website, if possible; and (d) the designated RoLR's website. (2) Recorded or live messages giving information about the RoLR event must be readily available on— (a) the failed retailer's call centre telephone number, if possible; and (b) the AER's call centre telephone number; and (c) the designated RoLR's call centre telephone number. (3) If and to the extent the AER considers it necessary or desirable to do so, the AER may place advertisements in newspapers or on radio and television in the area or areas served by the failed retailer giving information about the RoLR event. (4) This section does not prevent a RoLR plan— (a) having requirements for notification directly to customers by the designated RoLR (or by any other person) of a RoLR event or of the change of retailer, or both; or (b) making additional provision for publication of a RoLR event. 140—Transfer of responsibility (1) Each person who was a customer of a failed retailer immediately before the transfer date— (a) ceases, by force of this Law, to be a customer of the failed retailer on that date; and (b) becomes, by force of this Law, a customer of the relevant designated RoLR immediately after so ceasing to be a customer of the failed retailer. (2) On and from the transfer date, and in relation to the customers transferred to it and subject to and in accordance with the RoLR Procedures, the designated RoLR assumes the functions and powers of the failed retailer under the energy laws, including (without limitation)— (a) for electricity—in the case of any metering installation where the failed retailer was as at the transfer date the responsible person, the designated RoLR becomes, by force of this Law, the responsible person; and (b) for electricity—in the case of any other metering installation in respect of which there is as at the transfer date an agreement in force under rule 7.2.3 of the NER between the failed retailer and the Local Network Service Provider, the designated RoLR becomes, by force of this Law, party to that agreement in place of the failed retailer; and (c) for electricity—in any case where the failed retailer (in its capacity as responsible person) has entered into an agreement under rule 7.2.5 of the NER with a Metering Provider, the designated RoLR by force of this Law becomes, by force of this Law, party to that agreement in place of the failed retailer; and (d) any function or power prescribed by the National Regulations for the purposes of this section; and (e) any function or power specified in energy laws for the purposes of, or in connection with matters provided under, this section. (3) The designated RoLR assumes no financial or other liabilities of the failed retailer under an agreement referred to in subsection (2) where that liability accrues before the transfer date. (4) The designated RoLR must, if it is notified by the AER, the failed retailer, an insolvency official or a distributor that the premises of a customer of the failed retailer has life support equipment, comply with the obligations as to life support equipment that apply to retailers under the Rules as if the designated RoLR had been notified by the customer. (5) The designated RoLR must, if it is notified by a customer, the AER, the failed retailer, an insolvency official or a distributor that the customer is in receipt of a tariff payment, credit or other benefit referred to in section 154(2)(h), comply with the feed‑in arrangement concerned. (6) Subject to the RoLR Procedures— (a) transfers of customers to the failed retailer from another retailer that were under way as at the transfer date are to cease on and from that date; and (b) those customers instead remain customers of that other retailer on their previous contractual terms and conditions with that retailer; and (c) despite anything to the contrary in the previous contract with such a customer, the customer may terminate the contract with that other retailer on one month's notice or a lesser period allowed by the previous terms and conditions. (7) Subject to the RoLR Procedures, if a large customer in electricity has notified AEMO in writing before the transfer date as to who its retailer (the nominated retailer) will be in a RoLR event and that it has agreed terms and conditions with the nominated retailer, and the nominated retailer has also notified AEMO in writing that it has agreed to be the nominated retailer for that customer— (a) AEMO may transfer that customer to the nominated retailer rather than the designated RoLR; and (b) the customer becomes, by force of this Law, a customer of the nominated retailer as at the transfer date on the terms and conditions agreed between the large customer and the nominated retailer. (8) In this section, Local Network Service Provider, metering installation, Metering Provider and responsible person have the same meanings as in the NER. 141—Termination of customer retail contracts (1) The contract for the sale of energy between a failed retailer and each person who was a customer of the retailer immediately before the transfer date is terminated on the transfer date by force of this Law. (2) Termination of a contract under this section does not affect any rights and obligations that have already accrued under the contract, but no early termination charge is payable where a contract is terminated under this section. (3) Subsection (1) has effect even though the financially responsible retailer might not change from the failed retailer to the relevant designated RoLR until after the transfer date. (4) Any complaint or dispute between a failed retailer and a small customer (whether the complaint or dispute arose on, before or after the transfer date) may continue to be dealt with as if the failed retailer's authorisation has not been revoked under section 142, and— (a) Part 4 continues to apply to the complaint or dispute; and (b) an insolvency official of the failed retailer is also subject to and bound by Part 4 in dealing with the complaint or dispute. (5) The insolvency official of a failed retailer or the failed retailer (as the case may be) must take steps to cancel with effect on and from the transfer date any direct debit authorisations (including any Centrepay deductions) that are in place for any customer of the failed retailer. Cancellation of a direct debit authorisation does not affect a customer's obligation to pay for any energy consumed before the transfer date. (6) If a customer of a failed retailer has paid amounts to the retailer in advance towards the customer's energy bill, the insolvency official of the failed retailer or the failed retailer (as the case may be) must— (a) apply those amounts to the payment of the customer's account, but only insofar as that payment is for energy consumed before the transfer date; and (b) pay any balance remaining to the customer. (7) If a customer has paid the failed retailer in whole or in part for a service order and as at the transfer date the order has not been completed— (a) the designated RoLR may— (i) place the order with the relevant distributor; and (ii) if the order has already been placed, take steps to ensure its completion; and (b) the customer is not liable to pay for the order except to the extent that the customer had not already paid as at the transfer date. (8) If a payment plan is in force with the failed retailer, the failed retailer or insolvency official (as the case requires) or their assignees must continue to comply with that plan insofar as it provides for the payment by instalments of any arrears that are outstanding as at the transfer date. (9) Any security deposit paid by a small customer to a failed retailer (and any interest accrued on that deposit) must be refunded to the customer by the failed retailer or insolvency official without any deduction other than in respect of energy consumed (but not paid for) before the transfer date. (10) If a small customer is on a prepayment meter market retail contract, a payment equal to the value of any credit remaining in the prepayment meter system account as at the transfer date must be made by the failed retailer or insolvency official to the small customer without any deduction. 142—Revocation of retailer authorisation (1) If a failed retailer has not already had its authorisation revoked under this Law, the AER may at the same time as it issues the RoLR notice for the retailer, and by endorsement on that notice, revoke the retailer authorisation with effect from the transfer date. (2) Divisions 5 and 7 of Part 5 do not apply in relation to the revocation of a retailer authorisation under this section, but nothing prevents the AER from applying the revocation process referred to in those Divisions, or any aspect of it, in relation to the revocation if the AER so decides. 143—Compliance requirements following service of RoLR notice (1) AEMO must, in relation to the RoLR event concerned, comply with the applicable requirements of the notice, this Part, the RoLR Procedures and the National Regulations. (2) The failed retailer, any insolvency official of the failed retailer and anyone else given a RoLR notice must, in relation to the RoLR event concerned— (a) comply with the notice; and (b) comply with the applicable requirements of— (i) this Part; and (ii) the RoLR Procedures; and (iii) the National Regulations. Subsection (2)(a) is a civil penalty provision. (3) A RoLR notice cannot impose requirements on a Minister of a participating jurisdiction without the consent of that Minister. 144—RoLR Procedures (1) AEMO may include, in procedures that it makes pursuant to the NEL and the NGL, procedures that deal with the following: (a) any matters relating to the operation or implementation of the RoLR scheme; (b) without limiting paragraph (a)— (i) any matter referred to in section 149(2); and (ii) the transfer of customers from failed retailers to designated RoLRs; and (iii) the acceleration or cancellation of open transactions; and (iv) audits and reviews; (c) without limiting paragraphs (a) and (b)— (i) in the case of electricity—any matter that the Retail Market Procedures, including B2B Procedures, the Market Settlement and Transfer Solution (MSATS) Procedures and metrology procedure deal with insofar as any of those procedures make provision at the commencement of this section with respect to RoLR events; and (ii) in the case of gas—any matter that the relevant Retail Market Procedures deal with insofar as those procedures make provision at the commencement of this section with respect to RoLR events; (d) any other matter relevant to the RoLR scheme; (e) any matter consequential on or related to any of the above. (2) Procedures that AEMO makes pursuant to this section may— (a) apply separately to— (i) electricity; or (ii) natural gas and natural gas equivalents; or (c) confer functions or powers on, or leave any matter or thing to be decided by, AEMO; and (d) confer rights or impose obligations on retailers (including failed retailers), insolvency officials of failed retailers, distributors, the AER, AEMO or other persons; and (e) confer power on AEMO to make or issue guidelines, tests, standards and other documents of an administrative nature; and (f) confer power on AEMO to require a person on whom a right is conferred, or an obligation imposed, under the procedures— (i) to comply with a guideline, standard or other document of an administrative nature; or (ii) to conduct, or submit to, a test designed by AEMO under the procedures; and (g) exempt, or confer a power of exemption, from the application of the procedures or specified provisions of the procedures; and (h) contain provisions of a savings or transitional nature. (3) AEMO must not, without the consent of the MCE, make procedures pursuant to this section that confer a right or function, or impose an obligation, on the MCE or a Minister of a participating jurisdiction. (4) Procedures made pursuant to this section cannot— (a) create an offence; or (b) provide for a civil penalty. (5) Procedures made pursuant to this section are referred to in this Part as RoLR Procedures. Division 6—Arrangements for sale of energy to transferred customers 145—Contractual arrangements for sale of energy to transferred small customers (1) This section applies where a person who was a small customer of a failed retailer immediately before the transfer date becomes, by force of this Law, a customer of the relevant designated RoLR. (2) An arrangement (a RoLR deemed small customer retail arrangement) is taken to apply between the relevant designated RoLR and the small customer with effect on and from the transfer date. (3) The terms and conditions of the RoLR deemed small customer retail arrangement are the terms and conditions of the relevant designated RoLR's standard retail contract. (4) The prices applicable to the RoLR deemed small customer retail arrangement are the relevant designated RoLR's standing offer prices, with any variations in accordance with or consequent on the applicable RoLR cost recovery scheme determined under Division 9. (5) This section has effect even though the failed retailer might not cease to be the financially responsible retailer for the premises of the small customer until after the transfer date. 146—Contractual arrangements for sale of energy to transferred large customers (1) This section applies where a person who was a large customer of a failed retailer immediately before the transfer date becomes, by force of this Law, a customer of the relevant designated RoLR (see section 140). (2) An arrangement (a RoLR deemed large customer retail arrangement) is taken to apply between the designated RoLR and the large customer with effect on and from the transfer date. (3) The terms and conditions of the RoLR deemed large customer retail arrangement are the terms and conditions published by the designated RoLR on its website, but they must be fair and reasonable. (4) This section has effect even though the failed retailer might not cease to be the financially responsible retailer for the premises of the large customer until after the transfer date. 147—Duration of arrangements for small customers (1) A RoLR deemed small customer retail arrangement ceases to be in operation if a customer retail contract is formed in relation to the premises, but this subsection does not affect any rights or obligations that have already accrued under that arrangement. (2) There is no minimum period for the small customer to remain with a designated RoLR on a RoLR deemed small customer retail arrangement. (3) If the small customer is still a customer of a designated RoLR on a RoLR deemed small customer retail arrangement at the end of the period of 3 months after the transfer date, a standard retail contract, in the form of the designated RoLR's standard retail contract, is taken to have been formed between the small customer and the designated RoLR. (4) After that period of 3 months (but not earlier unless the designated RoLR agrees), the small customer and designated RoLR may seek to negotiate a market retail contract in accordance with section 33. 148—Duration of arrangements for large customers (1) A RoLR deemed large customer retail arrangement ceases to be in operation if a contract for the sale of energy is formed in relation to the premises, but this subsection does not affect any rights or obligations that have already accrued under that arrangement. (2) There is no minimum period for the large customer to remain with a RoLR on a RoLR deemed large customer retail arrangement. (3) The designated RoLR and the large customer may agree to terminate the deemed large customer retail arrangement at any time. (4) The designated RoLR may, at any time, serve a notice on the large customer stating that the RoLR deemed large customer retail arrangement will be terminated after the period of 6 months after the transfer date unless a retail contract is negotiated and formed in relation to the premises before the end of that period. The designated RoLR is, however, under no obligation to initiate negotiations with the large customer. (5) The designated RoLR may terminate the arrangement in accordance with the terms and conditions of the deemed large customer retail arrangement after the end of that period. 148A—Designated contract for RoLR (1) A registered RoLR must give written notice to the AER if— (a) the registered RoLR is willing to transfer all the small customers of a failed retailer that are transferred to it on to a contract (a designated contract); and (b) the designated contract complies with this section. (2) The notice must be given in accordance with the AER RoLR Guidelines. (3) The designated contract must— (a) contain the same terms and conditions as a market retail contract; and (b) ensure a small customer under the contract will not be in a worse position than the customer would have been had the customer been transferred to the registered RoLR's standard retail contract; and (c) ensure the prices payable by the customer are not more than the registered RoLR's standing offer prices; and (d) ensure the prices payable by the customer cannot be increased during the period of 3 months after the relevant transfer date (the initial period); and (e) ensure the customer will not be required to pay a fee for breaking the contract during the initial period; and (f) comply with— (i) requirements of this Law or the Rules that apply to a market retail contract; and (ii) the AER RoLR Guidelines; and (g) be published on the website of the registered RoLR. (4) The registered RoLR must, as soon as practicable after it varies the designated contract— (a) give written notice to the AER about the variation; and This paragraph is a civil penalty provision. (b) publish the designated contract as varied on the website of the registered RoLR. (5) If the AER forms the view that the designated contract requires review— (a) the AER may direct the registered RoLR to review the contract and make variations in accordance with the requirements of subsection (3); and (b) the registered RoLR must— (i) vary the contract in accordance with the AER's requirements; and (ii) submit the varied contract to the AER for approval; and (iii) as soon as practicable after the varied contract is approved by the AER—publish the varied contract on the registered RoLR's website. Subsection (5)(b) is a civil penalty provision. 148B—Transfer of customers to designated RoLR with designated contract (a) customers are transferred to a designated RoLR as a result of a RoLR event; and (b) the designated RoLR has a designated contract under section 148A. (2) The designated RoLR must, for the transferred customers who are small customers— (a) make all the customers subject to the designated contract; or (b) make none of the customers subject to the designated contract. (3) The explicit informed consent of the small customers is not required to make the small customers subject to the designated contract. (4) If the transferred customers become subject to the designated contract— (a) any RoLR deemed small customer retail arrangement under this Division ceases to be in operation between the designated RoLR and the transferred customers; and (b) the designated contract— (i) is taken to be a market retail contract for the purposes of this Law and the Rules; and (ii) must continue to meet the requirements of section 148A(3); and (iii) continues in force until it is terminated or replaced in accordance with this Law and the Rules. (5) A fee must not be imposed on a transferred customer under the designated contract for terminating the contract— (a) at any time during the initial period; or (b) after the initial period unless the transferred customer has been given notice of the fee. (6) The transferred customer is taken to have been given notice of the fee if— (a) the transferred customer acknowledges receipt of the notice; or (b) the RoLR has used its best endeavours to give the transferred customer the notice. (7) This section does not prevent a price increasing under the designated contract. initial period has the same meaning as in section 148A. 148C—Keeping records about, and giving information to, transferred customers (1) A designated RoLR to which customers are transferred as a result of a RoLR event must— (a) keep records of the transfer for at least 2 years after the transfer; and (b) give information to the transferred customers in accordance with the RoLR plan for the designated RoLR. RoLR plan for a designated RoLR means a RoLR plan— (a) prepared by the AER under section 162; and (b) for which the designated RoLR is a participant. Division 7—Information requirements