South Australian Consolidated Acts

GAS ACT 1997 - SECT 21

21—Consideration of application

        (1)         The Commission must consider an application for the issue of a licence and may, subject to this Division, issue or refuse to issue the licence.

        (2)         The Commission must have regard to the general factors specified in Part 2 of the Essential Services Commission Act 2002 and, subject to this section, may only issue a licence if satisfied that—

            (a)         the applicant is a suitable person to hold the licence; and

            (b)         in the case of a licence authorising the operation of a distribution system—the system has (or the proposed system will have) the necessary capacity for distributing gas safely; and

            (c)         in the case of a licence authorising retailing of gas—the applicant will be able to meet reasonably foreseeable obligations under contracts for the sale of gas; and

            (d)         in the case of a licence authorising other operations for which a licence is required under the regulations—the applicant meets any special requirements imposed by the regulations for the holding of the licence; and

            (e)         in the case of a licence of any class—the grant of the licence would be consistent with criteria (if any) prescribed by regulation for a licence of the relevant class.

        (3)         In deciding whether an applicant is a suitable person to hold a licence, the Commission may consider—

            (a)         the applicant's previous commercial and other dealings and the standard of honesty and integrity shown in those dealings; and

            (b)         the financial, technical and human resources available to the applicant; and

            (c)         the officers and, if applicable, major shareholders of the applicant and their previous commercial and other dealings and the standard of honesty and integrity shown in those dealings (including breaches of statutory and other legal obligations); and

            (d)         other matters prescribed by regulation.

        (4)         If—

            (a)         a person carries on or proposes to carry on operations for which a licence is required as agent of another person; and

            (b)         the agent makes application for the issue of such a licence on the agent's own behalf and on behalf of the principal; and

            (c)         the Commission is satisfied that the criteria for the issue of the licence are met in relation to the agent,

the Commission may, at the Commission's discretion, dispense with the requirement that the Commission be satisfied that the criteria are met in relation to the principal and issue the licence to the agent and the principal to be held by them jointly.