Code Breach by Energex
Clause 5.7 of the Electricity Industry Code (the Code) requires a distributor to complete a standard service order, such as a disconnection request, within a set time.
On 8 April 2008, Energex wrote to the Authority to advise that a significant number of disconnection requests from retailers had not been performed within the time specified in the Code. Energex advised that this situation was expected to continue for an unspecified period of time. The Authority discussed this matter with Energex and advised Energex that it was required to meet the requirements of the Code. However, Energex has not remedied the situation.
The Authority considers that Energex's failure to meet these obligations constitutes a material breach of the Code.
The Electricity Act 1994 requires the Authority to enforce the provisions of the Code in the case of a material breach of the Code. The process to be followed with respect to this breach is set out in the Authority's Guidelines for Pursuing Civil Penalties and Referring Matters to the Regulator in Relation to Contraventions of the Electricity and Gas Industry Codes .
On 25 July 2008, the Authority issued Energex with a Warning Notice regarding its breach of clause 5.7 of the Code. Energex is now obliged to take steps to remedy the breach and provide undertakings to avoid future breaches. The Warning Notice gives Energex 30 business days to respond.
A copy of the Warning Notice issued to Energex can be downloaded below.
Decision/Recommendation
