SUMMARY OF MATERIAL TERMS AND CONDITIONS CHANGES FOR “MERCURY” BRAND CUSTOMERS

Residential General Terms and Conditions

• Structure: The structure of the terms and conditions has changed from Mercury customers having separate terms and conditions for power and internet services to a combined set of “General Terms” that cover common clauses for the services, and “Specific Terms” for each service that cover the terms relevant to that service only. In addition, any specific offer terms or special terms also apply, as well as the Mercury Privacy Policy. In many cases, the content of the terms remains similar, but is expressed in slightly different words.

   

• Order of priority: An order of priority has been added to all terms, clarifying which terms prevail in the event of a conflict.

   

• Commencement date: the commencement date for the agreement has been updated to allow for future commencement and for “cooling off periods” for contracts that are “uninvited direct sales”.

   

• Privacy: the privacy provisions are now all included in the Privacy Policy.

   

• Acceptance process: there are some changes to how a customer becomes a Mercury customer, including the basis on which Mercury can decline to accept a customer, the potential for special terms to apply, the requirements that your premises must meet and similar. There are specific processes for switching to Mercury specified for both energy and telecommunications services. It is no longer a requirement that you must be a Mercury energy customer in order to be eligible for telecommunications services from Mercury.

   

• Joint customers: a more detailed process for becoming and ceasing to be joint customers is specified.

   

• Medically dependent and vulnerable customers: a specific section has been added to address the processes for medically dependent customers (for energy) and vulnerable customers (for telecommunications).

   

• Obligations of the customer: the customer’s obligations in the new terms and conditions have been split across the General Terms (for general requirements) and the Specific Terms (where they relate to one service type only). The General Terms may include some new terms that a customer needs to comply with that they did not previously, or may have made terms that previously only applied to one service apply to all services. Some examples of obligations that may be new include (but are not limited to) that customers:
  • have to comply with Mercury (and its service providers’) instructions;
  • must not threaten, bully, or harass Mercury’s staff;
  • must use the Services only for the purposes for which they are provided, and only in the ways that they are intended;
  • authorise Mercury to act on any verbal instructions you, a joint customer, or a person authorised by you as a contact person give us in relation to the Services;
  • to provide Mercury with all information it reasonably requests in connection with this agreement and ensure that all information you provide is correct;
  • to not use the Services in any way which Mercury or its service providers to be unlawful, malicious, obscene, abusive, offensive, or for an illegal or fraudulent purpose nor in a manner that could interfere with our network or other Service Provider’s networks or interfere with another customer’s use of, or any Services Provider’s provision of, our Services;
  • not sell or otherwise make the Services available to others or commercially exploit the Services in any way;
  • not use the Services in a way which could result in claims being made against Mercury that might arise from any content or services provided by the Customer;
  • be responsible for addressing any faults caused by the Customer;
  • make sure that any other person that uses the Services agrees to be bound, and also abides, by this agreement, and to be responsible for that person’s use; and
  • be bound by, and comply with, the terms and conditions of any Mercury service providers which Mercury uses to provide the services and agree that those service providers may enforce those terms directly against the customer.

   

• Access: The processes and obligations relating to access to customer property have been amended, in particular clarifying the notice of required access that will be given and how Mercury representatives will conduct themselves during a visit, and the customer’s responsibility relating to controlling animals during Mercury visits. If the customer fails to ensure access, the services may be disconnected.

   

• Bond: Bonds have been amended to refer to bonds and “pre-payments”, and can apply for all services, not just energy. The cap on the prepayment amounts has changed slightly. The terms specify when the prepayment may no longer be required, and how it will be applied in that case.
  
  

• Charges, invoicing and payment: Charges, invoicing and payment processes have been updated and amended. Some aspects of the processes are similar in content, but expressed in different language. Updates include:
  • where and how the charges that apply are specified.
  • how charges are applied in the event of changes to services during a billing period;
  • when invoices are sent, including the invoicing process and information provided, and what charges are invoiced in advance and what is invoiced in arrears.
  • when various charges might show on the customer’s bill, and the customer’s continuing obligation to pay those charges.
  • the order of priority in which payments will be applied to a customer’s account.
  • how invoicing mistakes will be addressed for all services.
  • the process for notifying disputed amounts, including that a customer must make that notification “immediately”.
  • that services will not be disconnected during holidays, outside business hours, or during civil defence emergencies. This applies to telecommunications as well as energy.
  • the terms provide for further options in the event of non-payment, such as assigning credit limits or cancelling rebates.

• Termination: Termination is addressed in both the General Terms and the Specific Terms:

  • the terms have introduced “cross-termination” meaning that if there is a reason to terminate one of the customer’s services, Mercury can terminate the customer’s full agreement for all services.

  • the terms have clarified that the customer can terminate without termination fees if the customer is terminating:

    • because Mercury has made a material detrimental change to the terms and conditions that apply to the customer; or
    • because Mercury has breached the agreement.
  • the terms provide that that termination fees do not apply to customers if Mercury is terminating under one of its rights under the agreement that was not the customer’s fault – for instance, if Mercury is, or its service providers are, withdrawing a type of service.
  • Mercury can terminate the services after the end of an agreed term by giving reasonable notice. The Specific Terms set out the notice periods that apply if a customer wants to terminate and does not have a fixed term agreement in place.
  • Mercury has certain other termination rights (in addition to non-payment and material or persistent breach), such as where necessary to protect Mercury or third party networks, or if the customer has not complied with third party terms that apply to the customer.
  • Mercury no longer has the right to terminate the customer’s telecommunications agreement if the customer is not a Mercury energy customer.
  • the terms have updated what clauses of the agreement survive termination.
    
    
• Loss and damage: The updates have:
  • updated when the parties will be liable to each other (only for reasonably foreseeable actual loss or damage resulting from breach of the agreement or negligence, and not a force majeure event).
  • updated the definitions of “Force Majeure Event” (i.e. an event outside Mercury’s or the customer’s control). This definition is now wider than it was previously.
  • updated the liability clauses to provide that the following caps apply in a 12 month period to each party:
    • with respect to electricity, piped gas, and LPG services, $10,000;
    • with respect to landline phone and internet services, $5000;
    • with respect to mobile services, $10,000 in respect of all events in any 12-month period.
  • amended what “indirect” losses the parties will not be liable to the other for;
  • updated when the liability caps do not apply, for both parties.
  • amended what liability Mercury employees, service providers and similar do not have to customers, including amending what “indirect” losses they are not liable for. To the extent that those third parties do have liability to you, caps on liability are specified to apply for 12 month periods, and are:
    • with respect to electricity, piped gas, and LPG services, $100;
    • with respect to landline phone and internet services, $3000;
    • with respect to mobile services, $5000 in respect of all events in any 12-month period.
      
      
• Disputes:  if a customer makes public comments, Mercury has the right to respond to the extent necessary, including to correct misconceptions and errors of fact.
  
  
• Changes: the updates have:
  • added a list of the types of changes that might be made;
  • specifying that changes will be notified to customers unless they are minor and either beneficial or immaterial (with certain exceptions for flexible energy price plans). Material changes to service fees and changes to energy charges of more than a certain amount have specific notification requirements;
  • updating how notices will be provided and when they will be effective; and
  • specifying what the options are if a customer believes a change is detrimental, including the options to stay on the unchanged terms or terminate without exit fees. The terms also specify that a change of technology used to deliver the services is not a basis for termination if the service remains materially the same.

   

• Confidentiality: the confidentiality clause has been removed.
  
  
• Embedded Networks: the specific embedded networks clause has been removed.
  
  
• Definitions: various definitions have been updated.

Business General Terms and Conditions 

• Structure: The structure of the terms and conditions has changed from Mercury customers having separate terms and conditions for power and internet services to a combined set of “General Terms” that cover common clauses for the services, and “Specific Terms” for each service that cover the terms relevant to that service only. In addition, any specific offer terms or special terms also apply, as well as the Mercury Privacy Policy. In many cases, the content of the terms remains similar, but is expressed in slightly different words. The Business General Terms now cover internet and landline services.

   

• Order of priority: An order of priority has been added to all terms, clarifying which terms prevail in the event of a conflict.

   

• Commencement date: the commencement date for the agreement has been updated to allow for future commencement and for “cooling off periods” for contracts that are “uninvited direct sales”.

   

• Privacy: the privacy provisions are now all included in the Privacy Policy.

   

• Acceptance process: there are some changes to how a customer becomes a Mercury customer, including the basis on which Mercury can decline to accept a customer, the potential for special terms to apply, the requirements that customer premises must meet and similar. There are specific processed for switching to Mercury specified for both energy and telecommunications services. There are also additional requirements about actions to take when moving into new premises.

   

• Vulnerable customers: a section has been added to address the processes for and vulnerable customers (for telecommunications 111 Code purposes).

• Services: it is the responsibility of the customer to ensure services acquired from third parties are supported by the Mercury services.

   

• Obligations of the customer: the customer’s obligations in the new terms and conditions have been split across the General Terms (for general requirements) and the Specific Terms (where they relate to one service type only). The General Terms include some new terms that a customer needs to comply with that they did not previously (in particular in relation to telecommunications services), or and in some cases have made terms that previously only applied to one service apply to all services. Some examples of obligations that may be new include (but are not limited to) that customers:
  • resale of the services is not permitted. Incorporation of the telecommunication services into the Customer’s product or services is permitted in certain circumstances only.
  • have obligations in relation to preventing spread of viruses;
  • are responsible for (and are responsible for ensuring that their staff) protect their computers appropriately;
  • comply with certain terms and exclusions of Mercury’s virus filter and email service;
  • have to comply with Mercury (and its service providers’) instructions;
  • must not threaten, bully, or harass Mercury’s staff;
  • must use the Services only for the purposes for which they are provided, and only in the ways that they are intended;
  • authorise Mercury to act on any verbal instructions you, a joint customer, or a person authorised by you as a contact person give us in relation to the Services;
  • must provide Mercury with all information it reasonably requests in connection with this agreement and ensure that all information you provide is correct;
  • must not use the Services in any way which Mercury or its service providers to be unlawful, malicious, obscene, abusive, offensive, or for an illegal or fraudulent purpose nor in a manner that could interfere with our network or other Service Provider’s networks or interfere with another customer’s use of, or any Services Provider’s provision of, our Services;
  • must not use the Services in a way which could result in claims being made against Mercury that might arise from any content or services provided by the Customer;
  • be responsible for addressing any faults caused by the Customer;
  • make sure that any other person that uses the Services agrees to be bound, and also abides, by this agreement, and to be responsible for that person’s use; and
  • be bound by, and comply with, the terms and conditions of any Mercury service providers which Mercury uses to provide the services and agree that those service providers may enforce those terms directly against the customer.
    
    

• Deleted clauses: clauses relating to customer equipment modification to convey  electricity through the local lines company network have been deleted.

   

• Metering, supply, lines company obligations: metering, meter reading, supply interruption, and lines company obligations are now included (with some modification) in the Special Terms for Energy. See the summary of those terms for details. Terms relating to “load control” have also been deleted.
  
  
• Access: The processes and obligations relating to access to customer property have been amended, to be more general, and to cover both LPG and telecommunications access. In particular , the terms provide for notice of required access that will be given and how Mercury representatives will conduct themselves during a visit, and the customer’s responsibility relating to controlling animals during Mercury visits. If the customer fails to ensure access, the services may be disconnected.
  
  
• Bond: Bonds have been amended to refer to bonds or “pre-payments”, and can apply for all services. The terms specify when the prepayment may no longer be required, and how it will be applied in that case. The clause also provides a process and obligations in relation to credit checks.
  
  
• Charges, invoicing and payment: Charges, invoicing and payment processes have been updated and amended. Some aspects of the processes are similar in content, but expressed in different language. Updates include:
  • where and how the charges that apply are specified;
  • specific details of certain telecommunications charges that may apply;
  • the “market price customers” clauses have been removed;
  • how charges are applied in the event of changes to services during a billing period;
  • when invoices are sent, including the invoicing process and information provided, and what charges are invoiced in advance and what is invoiced in arrears;
  • the due date will be as specified on the invoice;
  • when various charges might show on the customer’s bill, and the customer’s continuing obligation to pay those charges;
  • the order of priority in which payments will be applied to a customer’s account;
  • how invoicing mistakes will be addressed for all services;
  • the process for notifying disputed amounts, including that a customer must make that notification “immediately”;
  • the non-payment processes and disconnection are now the same as for residential customers. Specific disconnection rights are also set out in the Specific Terms for relevant services;
  • that services will not be disconnected during holidays, outside business hours, or during civil defence emergencies. This applies to telecommunications as well as energy.
  • the terms provide for further options in the event of non-payment, such as assigning credit limits or cancelling rebates.
    
    
• Sensitive equipment: the “sensitive equipment” clause has been deleted.
  
  
• Loss and damage: The updates have:.

  • updated when the parties will be liable to each other (only for reasonably foreseeable actual loss or damage resulting from breach of the agreement or negligence, and not a force majeure event).

  • clarified that the Consumer Guarantees Act does not apply to Business customers, as they are acquiring the services for business purposes.
  • updated the definitions of “Force Majeure Event” (i.e. an event outside Mercury’s or the customer’s control). This definition is now wider than it was previously.
  • updated the liability clauses to provide that the following caps apply in a 12 month period to each party:
    • with respect to electricity, piped gas, and LPG services, $10,000;
    • with respect to [mobile] landline phone and internet services, $3000;
  • amended what “indirect” losses the parties will not be liable to the other for;
  • updated when the liability caps do not apply, for both parties.
  • amended what liability Mercury employees, service providers and similar do not have to customers, including amending what “indirect” losses they are not liable for. To the extent that those third parties do have liability to you, caps on liability are specified to be $3000 in a 12 month period.
    
    
• Termination: Termination is addressed in both the General Terms and the Specific Terms:
  • the terms have introduced “cross-termination” meaning that if there is a reason to terminate one of the customer’s services, Mercury can terminate the customer’s full agreement for all services.
  • the terms have clarified that the customer can terminate without termination fees if the customer is terminating:
    • because Mercury has made a material detrimental change to the terms and conditions that apply to the customer; or
    • because Mercury has breached the agreement.
  • the terms provide that that termination fees do not apply to customers if Mercury is terminating under one of its rights under the agreement that was not the customer’s fault – for instance, if Mercury is, or its service providers are, withdrawing a type of service.
  • Mercury can terminate the services after the end of an agreed term by giving reasonable notice. The Specific Terms set out the notice periods that apply if a customer wants to terminate and does not have a fixed term agreement in place.
  • Mercury has certain other termination rights (in addition to non-payment and material or persistent breach), such as where necessary to protect Mercury or third party networks, or if the customer has not complied with third party terms that apply to the customer.
  • the terms have updated what clauses of the agreement survive termination.
    
    
• Moving and sale of Business: the requirements relating to notification of moving premises and sale of business now also apply to telecommunications services, and notice periods have increased.

   

• Disputes:  if a customer makes public comments, Mercury has the right to respond to the extent necessary, including to correct misconceptions and errors of fact.
  
  
• Changes: the updates have:
  • added a list of the types of changes that might be made;
  • specifying that changes will be notified to customers unless they are minor and either beneficial or immaterial (with certain exceptions for flexible energy price plans). Material changes to service fees and changes to energy charges of more than a certain amount have specific notification requirements;
  • updating how notices will be provided and when they will be effective; and
  • specifying what the  options are if a customer believes a change is detrimental, including the options to stay on the unchanged terms or terminate without exit fees. The terms also specify that a change of technology used to deliver the services is not a basis for termination if the service remains materially the same.
    
    

• Confidentiality: the types of Mercury information that the customer is required to keep confidential are broader than previously.

• Notices: new options for giving notices have been added.

• Assignment: the customer is restricted from assigning any of their rights, obligations and responsibilities under the agreement.

• Definitions: various definitions have been updated.

 Electricity Terms

• Safety: a new clause has been added with notification requirements for safety hazards.

   

• Domestic generation: new clauses have been added that include obligations relating to domestic electricity generation and the fees and charges applicable to surplus electricity.

   

• Metering: the Terms provide that Mercury will arrange metering services unless otherwise agreed, and specify the responsibilities of each party in relation to metering. New sections include:
  • unmetered energy supplies
  • smart meters
  • access to meters, including that regular failure to permit access may be a material breach
  • meter reading schedule and
  • customer obligations if a faulty meter is suspected.

     

• Equipment at customer premises: Similar obligations to the previous Mercury terms are included, but are expressed in a more general way. The indemnity to service providers is now mutual, not just provided by the Customer to Mercury. The consequences of a failure to comply with the equipment obligations are not part of the general breach and termination process.

   

• Quality of supply: a new clause has been added specifying the customer’s responsibility for their effect on the quality of supply.

   

• Interruptions of supply: the supply interruption obligations and processes are similar to the previous Mercury terms, but expressed more generally.

   

• Network requirements: new clauses covering network requirements and direct agreements with the network provider. These clauses are similar to the previous Mercury terms, but are expressed more generally.

   

• Third party control of load: old clause 14.5 has been removed, relating to third party load control.

   

• Distribution Code requirements: a new clause has been added addressing the customer’s responsibility for compliance with the electricity distribution code.

LPG Terms