Div 6Commission's powers to take over operations

Division 6—Commission's powers to take over operations 38—Power to take over operations (1) If— (a) a water industry entity contravenes this Act, or a water industry entity's licence ceases, or is to cease, to be in force; and (b) it is necessary, in the Commission's opinion, to take over the entity's operations (or some of them) to ensure an adequate supply of water to customers or the proper provision of any sewerage service (as the case may require), the Governor may make a proclamation under this section. (2) Before a proclamation is made under this section, the Commission must give the water industry entity a reasonable opportunity to make written representations giving reasons why the proclamation should not be made. (3) A proclamation under this section— (a) authorises the Commission to take over the water industry entity's operations or a specified part of the water industry entity's operations; and (b) may contain ancillary directions (and may, in particular, contain directions about how the costs of carrying on the operations, and revenue generated from the operations, are to be dealt with). (4) A direction under subsection (3)(b) operates to the exclusion of rights that are inconsistent with it. (5) The Governor may, by subsequent proclamation, vary or revoke a proclamation made under this section. 39—Appointment of operator (1) When a proclamation is made under this Division, the Commission must appoint a suitable person (who may, but need not, be a water industry entity) to take over the relevant operations on agreed terms and conditions (including as to remuneration and indemnities). (2) A person appointed to take over a water industry entity's operations is referred to in this section as the operator. (3) The water industry entity must facilitate the take over of the relevant operations by the operator. (4) The operator may have access to the property of a water industry entity for the purposes of carrying on the relevant operations. (5) A person must not obstruct the operator's access to property or the exercise by the operator of the operator's responsibilities under this Division. (6) A person must comply with reasonable directions given by the operator in the exercise of the operator's responsibilities under this Division. (7) The remuneration of the operator and all other costs and expenses arising out of the exercise of the operator's responsibilities under this Division are payable out of the funds of the water industry entity. Division 7—Related matters 40—Ministerial directions (1) Despite section 7 of the Essential Services Commission Act 2002, the Minister may, in relation to any prescribed matter, by notice published in the Gazette, give directions to the Commission as to— (a) whether or not a prescribed matter— (i) should be subject to regulation under a code or set of rules made under the Essential Services Commission Act 2002; (ii) should be subject to conditions of a licence under this Part; (iii) should be subject to any other form of regulation by the Commission under this Act or the Essential Services Commission Act 2002; and (b) insofar as a prescribed matter is subject to any form of regulation under paragraph (a), the extent of the regulation and, if the Minister thinks fit, provisions that will apply with respect to that prescribed matter. (2) The Minister may, by further notice in the Gazette, vary or revoke a previous notice published by the Minister under this section. (3) This section does not limit or derogate from any other power of the Minister under this Act. (4) In this section— prescribed matter means— (a) any matter relevant to water meters, including as to their design, features, installation or operation; and (b) any matter relevant to billing customers in relation to the supply of water under a retail service where a water meter is not available to be used to determine the quantity of water supplied; and (c) any matter relevant to the disconnection of a retail service (including circumstances or services in relation to which disconnection may not occur).