Water Industry Competition Act 2006
57CEffect of end of failure
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57C Effect of end of failure
57C Effect of end of failure
(1) On the end date of a declared failure—
(a) if the last resort provider is a public water utility—the utility ceases to have the function of providing the essential service under this Act, and
(b) if the last resort provider is a licensee—the licensee is taken to have notified IPART that the licensee has ceased to provide the essential service as required under Part 2, Division 4, and
(c) if the essential service is to continue to be provided under this Act in circumstances in which section 56C applied to the last resort provider—
(i) each person who was a customer of the last resort provider for the essential service immediately before the end date ceases to be a customer of the last resort provider and becomes a customer of the new licensee for the essential service, and
(ii) the contract for the essential service taken to have been entered into with the last resort provider under Part 5, Division 1AA (the deemed contract) as modified by this Division ceases and is taken to have been entered into with the new licensee under Part 5, Division 1AA, and
(iii) the modifications of the deemed contract expressly agreed between the last resort provider and a customer, if any, continue to apply as if they had been agreed under Part 5, Division 1AA between the new licensee and the customer, subject to further modification by express agreement under that Division, and
(d) if the essential service is to be replaced by a service provided under a public water utility’s Act and section 56C applied to the last resort provider—
(i) each person who was a customer of the last resort provider for the essential service immediately before the end date ceases to be a customer of the last resort provider under this Act and becomes a customer of the public water utility for the replacement service under the utility’s Act, and
(ii) the contract for the service taken to have been entered into under Part 5, Division 1AA (the deemed contract) as modified by this Division ceases and is instead taken to have been entered into under the public water utility’s Act, and
(iii) the modifications of the deemed contract expressly agreed between the last resort provider and a customer, if any, continue to apply as if they had been agreed under the public water utility’s Act, subject to further modification by express agreement under that Act.