Queensland Consolidated Acts Queensland Consolidated Acts(1) It is also a condition of a retail authority that the retail entity must, if asked by a relevant distribution entity, enter into and maintain credit support with, or for the benefit of, the relevant distribution entity.
(2) However, the condition applies to a retail entity in relation to a relevant distribution entity only if the credit support requested by the distribution entity—
(a) is consistent with the credit support guidelines; or
(b) otherwise—is agreed to in writing by the distribution entity and the retail entity.
(3) In this section—
credit support, in relation to a retail entity and a relevant distribution entity, means an arrangement to mitigate the risk of exposure of the distribution entity to non-payment by the retail entity of distribution non-network charges, network charges or any other charge payable by the retail entity to the distribution entity.
Example—
bank guarantee, third party guarantee or shareholder guarantee
distribution non-network charges see section 90(10).
network charges see section 90(10).
relevant distribution entity means a distribution entity with which the retail entity has common customers.