56DRelationship between last resort provider and others during failure

56D Relationship between last resort provider and others during failure

56D Relationship between last resort provider and others during failure

(1) On and from the transfer date of a declared failure, the last resort provider is to be taken to be a party, in substitution for the failed licensee, to the agreement necessary for the provision of the essential service between the failed licensee and another licensee or a public water utility, as in force immediately before the transfer date, subject to the regulations and modifications agreed between the parties, if any.

(2) If the last resort provider proposes a modification to an agreement referred to in this section on the basis that the modification is reasonably necessary for the efficient provision of the essential service by the provider, including a modification relating to a payment to be made by the provider, the other party to the agreement must not unreasonably withhold agreement to the modification.

(3) A dispute between the last resort provider and another person as to the application of subsection (1) or (2) is subject to arbitration under the Commercial Arbitration Act 2010.

s 56D: Ins 2021 No 26, Sch 1[20].