Index

• Domestic electricity retail contracts
• Model arrangements for electricity distribution services
  

Domestic electricity retail contracts

The Electricity Commission (Commission) has been progressing the development of model domestic retail contracts, and a significant body of work has been undertaken to date by the Commission and by other industry groups in previous forums. 

• Model Domestic Contracts (MDC) archived information
  

In mid-2009, the project reached a point where it was timely to consider whether the development of model contracts is the most appropriate approach to meeting the Commission’s policy objectives and the desired market outcomes for this aspect of its retail work programme. 

The Commission is mindful that there are other options to the completion of a detailed model domestic contract, such as promulgating guidelines for good contracting, establishing minimum terms and conditions and providing for fully regulated benchmark contracts.  

The Commission therefore considered the issues and drivers behind model domestic retail contracts, and the options for meeting its objectives in this area.  It has developed a set of reasonable consumer expectations for domestic electricity customers, and has identified its preferred approach to meeting these.  The Commission has also prepared a draft set of contracting guidelines and suggested minimum terms and conditions for the purposes of consultation, consistent with its preferred approach.

• Consultation
  

Model arrangements for electricity distribution services

The contract between a retailer and a network company covering the terms and conditions for transporting electricity from the grid to end-use customer premises is known as a Use of System Agreement (UoSA).

Promoting a model UoSA has been considered as a possible means to lower transaction costs and reduce possible barriers to retail competition by reducing the number and diversity of such agreements in effect in the marketplace.   

The Commission has been progressing the development of model agreements, and a significant body of work has been undertaken to date by the Commission and by other industry groups in previous forums. 

• Model Use of System Agreements (MUoSA) archived information
  

The Model UoSA is a set of model distribution arrangements that were initially developed under the Metering and Reconciliation Information Agreement (MARIA) by the Model Distribution Arrangements Project (MDAP) in 2002. The Model UoSA is between the retailer and the distributor, and covers commitments, payment obligations, operational requirements, and the rights of each party.

There are two forms:

• Model UoSA Interposed is a document that sets out a complete set of standardised contractual arrangements between the retailer and the distributor on the presumption that the primary relationship with the consumer is through the retailer. 
• Model UoSA Conveyance is also a document that sets out a complete set of standardised arrangements between the retailer and the distributor.  It, however, presumes that two relationships are held with the consumer: one contract between the consumer and the distributor for distribution services (also known as line function services), and another contract between the consumer and the retailer for retail services.
  

The latest draft of the MUoSA Interposed was published for consultation in April 2008.

• Consultation
  

The Commission expects to further engage with the stakeholders on this issue in early 2010.