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Legislative Assembly for the ACT: 1997 Week 10 Hansard (25 September) . . Page.. 3455 ..

8.

Standard form customer supply contracts will cover ACTEW's retail supply to its "franchise" customers. The Bill sets out, in considerably more detail than is presently contained in the Energy and Water Act, the requirements for such basic supply arrangements. As at present, negotiated contracts will be possible when the customer and the licence holder agree.

"Non-franchise" retail customers, whether of ACTEW or any other licensed retailer, will obtain supply by way of negotiated supply contracts.

Mr Speaker, the Bill clarifies a number of contentious issues, provides for the maintenance and enhancement of consumer rights in the new era of competition, and sets out a number of principles often assumed but never before enshrined in legislation.

The Bill, as I noted earlier, provides for a right of connection to the distribution system. It also sets out in a clear way the requirements that the distributor may impose on a customer for a new connection. It makes explicit the right of retail supply from ACTEW to all customers who wish it - although there is no implication that a Government Department is entitled to ACTEW's low domestic charges! It provides that ACTEW's current policy that prohibits landlords from "on-selling" electricity to their tenants at high rates will continue whoever the retailer may be.

It is very clear from the experience in other jurisdictions that competition in retail supply has resulted in significant benefits for business. Most business have achieved real price reductions. Keen energy pricing has been one reason behind this. Tough regulation of monopoly wires businesses has also helped - but this flows through to all customers. Another contributor has been the growth of energy advisory services by retailers. No matter how cheap the price of power may be, it is still cheaper not to use unnecessary power.

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