Under the Energy Coordination Act 1994, any trader who supplies gas to small use customers (i.e. residential customers and small business customers who consume less than 1 TJ of gas per year) must develop a standard form contract.

The standard form contract must be approved by the Economic Regulation Authority (ERA). The ERA will only approve a standard form contract if it considers that the contract meets all relevant legal and regulatory requirements.

A trader and customer may also negotiate terms and conditions different from the trader’s standard form contract. This is referred to as a non-standard contract. Although a non-standard contract does not require ERA approval, it must still comply with the relevant Acts and Regulations.