56FCost recovery scheme

56F Cost recovery scheme

56F Cost recovery scheme

(1) If a declared failure occurs, the Minister may, on the application of the last resort provider and subject to the regulations—

(a) direct IPART to assess the reasonable costs and expenses of the last resort provider, as known or reasonably able to be estimated at the date of the application, arising from—

(i) dealing with or remedying an act or omission of the failed licensee or the condition of the essential infrastructure, or

(ii) providing the essential service as a last resort provider, and

(b) provide, by order published in the Gazette, for a cost recovery scheme as set out in this section or as otherwise prescribed by the regulations.

(2) More than one application may be made under this section and a cost recovery scheme may be provided for progressively during and after the declared failure.

(3) Subject to the regulations, a cost recovery scheme may provide as follows—

(a) for the recovery of the whole or a part of the amount assessed from the failed licensee or a related corporation of the failed licensee,

(b) in circumstances in which it is unlikely the whole of the amount assessed is able to be recovered from the failed licensee or a related corporation of the failed licensee—

(i) for the recovery of outstanding amounts through an industry contribution scheme, or

(ii) with the consent of the Treasurer, for the payment of outstanding amounts from the Consolidated Fund.

(4) If a cost recovery scheme provides for the recovery of an amount from a person, the amount may be recovered in a court of competent jurisdiction as a debt owed to the Crown according to the terms of the scheme.

(5) If a cost recovery scheme provides for an industry contribution scheme, the following provisions apply, subject to the regulations—

(a) the scheme may provide for the Minister to require, as the Minister considers just and reasonable in the circumstances, contributions to be made to IPART, for payment to the last resort provider, by licensees, the owner of the essential infrastructure or a public water utility,