Retail markets
CHAPTER 6B

6B.	Retail markets
Part A	Retail support
Division 1	Application and definitions
6B.A1.1	Application of this Part
This Part:
(a)	applies to a Distribution Network Service Provider and a retailer who have shared customers; and
(b)	applies to the exclusion of Part J of Chapter 6 to a Market Customer who is a retailer; and
(c)	prevails over any inconsistent provisions in a distribution determination.
6B.A1.2	Definitions 
In this Part:
customer connection service has the same meaning as in the NERL.
date of issue of a statement of charges means the date on which the Distribution Network Service Provider sends the statement to the retailer.
default rate means the bank bill rate (as in force from time to time) plus two percentage points per annum.
due date for payment means 10 business days from the date of issue specified on a statement of charges.
network charges means charges that a Distribution Network Service Provider is entitled to claim for customer connection services in respect of shared customers under these Rules.
retail billing period means a calendar month or any other period agreed between a Distribution Network Service Provider and a retailer.
shared customer has the same meaning as in the NERL.
statement of charges —see clause 6B.A2.4.
Division 2	Billing and payment rules
6B.A2.1	Obligation to pay
Subject to this Part, a retailer must pay to a Distribution Network Service Provider the network charges payable in respect of each shared customer by the due date for payment.
Note:
This clause is a conduct provision for the purpose of the NEL.
6B.A2.2	Direct customer billing and energy-only contracts
(a)	Where a Distribution Network Service Provider and a shared customer agree that the customer will be responsible for paying network charges directly to the Distribution Network Service Provider (a direct billing arrangement), the Distribution Network Service Provider may issue a bill to that customer for any or all of the customer connection services provided to that customer's premises.
(b)	The Distribution Network Service Provider must notify the retailer of the direct billing arrangement as soon as reasonably practicable after commencement of the agreement.
(c)	A retailer has no liability to pay network charges that have been, or are to be, billed to the shared customer under a direct billing arrangement.
(d)	Where a retailer and a shared customer enter into a contract for the sale of electricity only, the retailer must notify the relevant Distribution Network Service Provider as soon as reasonably practicable after commencement of the contract.
6B.A2.3	Calculating network charges
Network charges must be calculated in accordance with these Rules and a Distribution Network Service Provider's distribution determination.
6B.A2.4	Statement of charges
(a)	A Distribution Network Service Provider must provide a statement of network charges (a statement of charges) to a retailer as agreed between the parties but no later than the 10th business day of the retail billing period next following the retail billing period to which the charges relate.
(b)	The statement of charges must include:
(1)	the network charges, separately identified, in respect of each shared customer's premises for which metering data was received, or a service request was completed, during that retail billing period;
(2)	the date of issue of the statement of charges, and the due date for payment;
(3)	where applicable, the metering data for each shared customer's premises;
(4)	any adjustments to network charges from previous retail billing periods; and
Note:
See clause 6B.A3.1.
(5)	where applicable, any credits for GSL payments that the Distribution Network Service Provider is required to make in respect of a shared customer's premises.
(c)	Subject to these Rules and the Retail Market Procedures, the format of the statement of charges must be as agreed between the retailer and Distribution Network Service Provider or, in default of agreement, as reasonably determined by the Distribution Network Service Provider.
(d)	In this rule:
GSL payment means a payment by a Distribution Network Service Provider in respect of non-compliance with a distribution service standard or distribution reliability standard.
service request means a request by a retailer to a Distribution Network Service Provider for a customer connection service.
6B.A2.5	Time and manner of payment
(a)	Subject to clause 6B.A3.3(c), a retailer must, by the due date for payment, pay the full amount specified in a statement of charges without set-off.
(b)	Payment must be made into the Distribution Network Service Provider's nominated bank account.
Division 3	Matters incidental to billing and payment
6B.A3.1	Adjustment of network charges
(a)	If a retailer is not permitted to recover network charges from a shared customer under the NERL or the NERR, then neither is the Distribution Network Service Provider permitted to recover those charges from the retailer.
(b)	Subject to paragraph (a), network charges contained in a statement of charges may be adjusted to account for any error in, or correction or substitution of:
(1)	metering data; or
(2)	any other amount or factor that affects the calculation of the network charges.
(c)	An adjustment under paragraph (b) may be made by a Distribution Network Service Provider by including, in a subsequent statement of charges, the amount required to be paid by, or credited to, the retailer together with an explanation of the adjustment.
Note:
See also clause 6B.A3.3.
6B.A3.2	Tariff reassignment
(a)	A retailer:
(1)	must, if a shared customer informs the retailer of a change in use of electricity consumption at the customer's premises as a result of which the retailer reasonably considers that the existing tariff applying to the customer should no longer apply; and
(2)	may, for any other reason, but not more than once in any 12 month period in respect of the same premises,
request the Distribution Network Service Provider to review the tariff to which the customer is assigned.
(b)	The request is to include:
(1)	the reasons for the request; and
(2)	any relevant information provided by the customer; and
(3)	the tariff proposed by the retailer.
(c)	On receipt of the request, the Distribution Network Service Provider must decide whether the tariff should be changed.
(d)	The Distribution Network Service Provider must inform the retailer of its decision and, if the decision is not to change the tariff or to assign a tariff other than that proposed by the retailer, the Distribution Network Service Provider must also inform the retailer of its reasons for the decision.
(e)	If the Distribution Network Service Provider decides to change the tariff, it must make the change in accordance with:
(1)	the requirements of the NERL and the NERR;
(2)	any provisions of the Distribution Network Service Provider's distribution determination governing the assignment or re-assignment of retail customers to tariffs; and
Note:
See clause 6.18.4.
(3)	the Rules and the Retail Market Procedures.
6B.A3.3	Disputed statements of charges
If a retailer disputes an amount (the disputed amount) set out in a statement of charges, the following provisions apply:
(a)	The retailer must give written notice to the Distribution Network Service Provider of the disputed amount and the reasons for disputing payment.
Note:
A retailer may also give notice pursuant to this clause if it seeks an adjustment under clause 6B.A3.1 or where it disputes an adjustment made under that clause.
(b)	Payment by the retailer of all or part of an amount set out in a statement of charges does not affect the right of the retailer to dispute the amount.
(c)	If the retailer has given notice under paragraph (a) and payment of the charges to which the statement relates has not yet been made, the retailer must pay the Distribution Network Service Provider by the due date for payment (unless the Distribution Network Service Provider agrees otherwise) the greater of:
(1)	the undisputed component of the statement of charges; or
(2)	80% of the total amount due under the disputed statement of charges;
(d)	The retailer must, if the dispute is not resolved by agreement of the parties within 10 business days after the date the retailer gave notice under paragraph (a), immediately submit the dispute for resolution or determination in accordance with Chapter 8.
(e)	If the retailer fails to submit the dispute for resolution or determination in accordance with paragraph (d), the Distribution Network Service Provider may submit the dispute for resolution or determination in accordance with Chapter 8.
(f)	Subject to any determination of the DRP, if following resolution or determination of the dispute in accordance with Chapter 8, the amount due to the Distribution Network Service Provider is:
(1)	more than the amount already paid by the retailer, the retailer must pay the difference to the Distribution Network Service Provider within 3 business days of the resolution or determination of the dispute, together with interest on the amount of the difference at the default rate for each day from the original due date for payment to the actual date of payment; or
(2)	less than the amount already paid by the retailer, the Distribution Network Service Provider must pay the difference to the retailer within 3 business days of the resolution or determination of the dispute, together with interest on the amount of the difference at the default rate for each day from the date the retailer made the overpayment to the Distribution Network Service Provider to the actual date of repayment of the amount of the excess by the Distribution Network Service Provider.
6B.A3.4	Interest
If requested, a Distribution Network Service Provider and a retailer must pay interest at the default rate on any amount due to the other under this Chapter that remains unpaid after the due date for payment, until the date on which that amount is paid in full.
6B.A3.5	Notification of changes to charges
(a)	A Distribution Network Service Provider must notify a retailer of:
(1)	any proposed changes in the Distribution Network Service Provider's price lists under Chapter 6 (preliminary information) no later than 2 business days after the date on which the changes are notified to the AER under these Rules; and
(2)	any changes in the Distribution Network Service Provider's price lists approved by the AER no later than 2 business days after the date on which the AER notifies the Distribution Network Service Provider of the approval; and
(3)	any change in the level of a network charge (other than a network tariff) as soon as reasonably practicable after the Distribution Network Service Provider becomes aware of that change and, if the change requires the approval of the AER under these Rules, no later than 2 business days after the AER advises the Distribution Network Service Provider that the change (or the resulting charge) is approved by the AER.
(b)	A retailer must treat preliminary information notified under paragraph (a)(1) as confidential information.
(c)	A Distribution Network Service Provider has no liability where proposed changes contained in preliminary information provided under paragraph (a)(1) are subsequently not approved, or are modified, by the AER.
Part B	Credit support required for late payment
Note:
The credit support rules set out in Part B are conduct provisions for the purpose of the NEL.
Division 1	Application and definitions
6B.B1.1	Application of Part B
This Part B (to be known as the credit support rules) applies to a Distribution Network Service Provider and a retailer:
(a)	in respect of shared customers;
(b)	in respect of charges for services for which the retailer pays the Distribution Network Service Provider in arrears in accordance with a statement of charges under clause 6B.A2.4.
6B.B1.2	Definitions
In this part:
date of issue has the meaning given in clause 6B.A1.2.
default rate has the meaning given in clause 6B.A1.2.
due date for payment has the meaning given in clause 6B.A1.2.
network charges has the meaning given in clause 6B.A1.2.
shared customer has the meaning given in clause 6B.A1.2.
statement of charges —see clause 6B.A2.4.
Division 2	Requirements for credit support
6B.B2.1	Distribution Network Service Provider may require credit support in limited circumstances
(a)	A Distribution Network Service Provider may only require a retailer to provide credit support if within the previous 12 months, the retailer has failed to pay in full:
(1)	the charges contained in 3 statements of charges by the due date for payment; or
(2)	the charges contained in 2 consecutive statements of charges by the due date for payment; or
(3)	the charges contained in 1 statement of charges within 15 business days of the due date for payment.
and then only in accordance with the credit support rules.
(b)	A Distribution Network Service Provider may only require a retailer to provide credit support up to an amount equal to the charges contained in the most recent statement of charges that gave rise to the requirement for the retailer to provide credit support under clause 6B.B2.1(a).
(c)	If a retailer fails to pay charges contained in a statement of charges, but the charges are disputed, and the retailer has complied with the requirements of clause 6B.A3.3 in respect of the dispute, the retailer will not be considered in default in payment of the disputed charges and the Distribution Network Service Provider will not be entitled to require the retailer to provide credit support.
Division 3	Provision of credit support by retailers
6B.B3.1	Retailer to provide credit support
(a)	A retailer must, on request by a Distribution Network Service Provider, under clause 6B.B2.1 provide credit support to a Distribution Network Service Provider in accordance with the credit support rules.
(b)	The credit support provided by a retailer must be:
(1)	for an amount requested by the Distribution Network Service Provider, not exceeding an amount equal to the charges contained in the most recent statement of charges that gave rise to the requirement for the retailer to provide credit support under clause 6B.B2.1; and
(2)	provided within 5 business days of the Distribution Network Service Provider's request; and
(3)	an acceptable form of credit support in favour of the Distribution Network Service Provider (see clause 6B.B3.2).
(c)	A retailer must ensure that at all times the aggregate undrawn amount of the credit support is not less than the amount requested by a Distribution Network Service Provider in accordance with clause 6B.B2.1.
6B.B3.2	Acceptable form of credit support
(a)	A retailer required to provide credit support under these Rules must provide the credit support in an acceptable form.
(b)	An acceptable form of credit support is:
(1)	a form of credit support that the retailer agrees to provide, and the Distribution Network Service Provider agrees to accept; or
(2)	an undertaking:
(i)	substantially in the form set out in Schedule 6B.1; and
(ii)	issued by a financial institution acceptable to the Distribution Network Service Provider.
Division 4	Other Rules relating to credit support
6B.B4.1	Application of credit support
(a)	A Distribution Network Service Provider may only apply or draw on the credit support if:
(1)	the Distribution Network Service Provider has given not less than 3 business days' notice to a retailer that it intends to apply or draw on the credit support in respect of an amount due and payable by the retailer to the Distribution Network Service Provider, and that amount remains outstanding; and
(2)	there is no unresolved dispute under clause 6B.A3.3 about the retailer's liability to pay that amount.
6B.B4.2	Return of credit support
(a)	If:
(1)	a Distribution Network Service Provider and a retailer no longer have any shared customers; or
(2)	in the 12 months since the credit support was provided, the retailer has paid in full the charges contained in each statement of charges issued in that 12 month period by the due date for payment,
the Distribution Network Service Provider must pay, cancel or return to a retailer as appropriate, any balance of credit support outstanding after payment of all amounts owing by the retailer to the Distribution Network Service Provider.
6B.B4.3	Other retailer obligations
(a)	A retailer must not take any steps to restrain (by injunction or otherwise):
(1)	an issuer of credit support from paying out, or otherwise satisfying, a claim properly made by the Distribution Network Service Provider under the terms of the credit support; or
(2)	the Distribution Network Service Provider from making a claim on the credit support in accordance with the credit support rules; or
(3)	the Distribution Network Service Provider using the money obtained by calling on the credit support.
(b)	A Distribution Network Service Provider may disclose to its financiers, the AER or AEMO that it has required or called on credit support provided by the retailer under the credit support rules.
Schedule 6B.1	Prescribed form of unconditional undertaking for credit support
(Clause 6B.B3.2)
In this deed:
(a)	ABC Ltd (ACN … … …) is the retailer; and
(b)	DEF Ltd (ACN … … …) is the Distribution Network Service Provider; and
(c)	GHI Ltd (ACN … … …) is the Financial Institution.
The Financial Institution unconditionally undertakes to pay, on demand by the Distribution Network Service Provider, to the Distribution Network Service Provider any sum or sums up to a maximum aggregate of $..........
The payment or payments are to be made forthwith and unconditionally, without reference to the retailer, and despite any instruction from the retailer not to make the payment or payments.
A demand for payment under this deed is to be made on behalf of the Distribution Network Service Provider by ....................[name of person authorised to act on behalf of the Distribution Network Service Provider]
This deed is terminated if:
(a)	the Distribution Network Service Provider notifies the Financial Institution that it no longer requires the Financial Institution's undertaking; or
(b)	the Financial Institution pays to the Distribution Network Service Provider a sum or sums amounting to its maximum aggregate liability under this deed; or
(c)	the parties agree to terminate it.
Executed as a deed at .............................. this .......... day of .................... 20..........