Background and Policy Objectives Provision for deemed contracts between gas companies and customers
In the gas industry, supplies of gas are often taken without the customer having first agreed contractual terms with the supplier (for example, where a tenant moves into premises and immediately starts taking a supply of gas).   The Act introduces a deemed contracts regime, which provides that a supply contract will be ‘deemed’ to have arisen between the supplier and the customer in such circumstances.    It provides a sound and binding basis upon which suppliers can supply customers.  As the terms and conditions of a deemed contract have not been expressly agreed between suppliers and customers they are subject to regulation.  The regime broadly replicates the regime that is already in place in the electricity industry.