Division 3 Retailers of last resort

54   Declaration of retailers of last resort

The Minister may, by order published in the Gazette, declare that a specified person (whether a licensed retail supplier or a public water utility) is the retailer of last resort in relation to the supply of water or the provision of sewerage services within the whole or any specified part of its area of operations.

55   Preparation of contingency plans

(1)  As soon as practicable after a person becomes a retailer of last resort, the person must, in accordance with the regulations, submit for the Minister’s approval a contingency plan setting out the arrangements that are in place to ensure that it can meet its obligations as a retailer of last resort.

(2)  The Minister may approve a contingency plan as submitted, or may require the retailer of last resort to amend it and resubmit it for approval.

(3)  A contingency plan may only be varied with the consent of the Minister.

(4)  In the case of a retailer of last resort that is a licensed retail supplier:

(a)  submission of a contingency plan in accordance with subsection (1), and

(b)  maintenance of the arrangements set out in its contingency plan,

      are conditions of the retail supplier’s licence.

56   Minister may declare supply failure

(1)  The Minister may, by order in writing served on:

(a)  a licensed retail supplier, and

(b)  the relevant retailer of last resort,

      declare a supply failure in relation to the licensed retail supplier.

(2)  Such an order may not be given except in such circumstances as are prescribed by the regulations.

57   Effect of declaration of supply failure

(1)  Subject to the regulations and the terms of the order:

(a)  the licensed retail supplier, on being served with such an order, must cease supplying water or providing sewerage services to those customers specified by the order, and

(b)  a retailer of last resort, on being served with such an order, must commence supplying water or providing sewerage services to such of those customers as are within the area in respect of which it is the retailer of last resort, and

(c)  those customers become, in relation to the supply of water or the provision of sewerage services, the customers of the relevant retailer of last resort.

(2)  In the case of a retailer of last resort that is a licensed retail supplier, compliance with such an order is a condition of the retail supplier’s licence.

(3)  Each such customer and the relevant retailer of last resort are taken to have entered into a special circumstances contract in such terms as are prescribed by the regulations for the purposes of this section.

(4)  Subsection (3) does not apply in circumstances in which section 36 (4) of the Hunter Water Act 1991, section 553A (2) of the Local Government Act 1993 or section 55 (3B) of the Sydney Water Act 1994 applies.