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

Residential General Terms

• 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 clarified and made consistent.
  
  
• Acceptance process: the acceptance process is now consistent across all services.
  
  
• Privacy: the privacy provisions are now all included in the Privacy Policy.
  
  
• Obligations of the customer: the customer’s obligations have been consolidated across all services. This means that if a customer only took some services from Mercury but not others, they may now have new obligations in relation to their services. Similarly, for customers who took multiple services from Mercury, there will be new obligations for some services that did not previously apply to that service. For example:
  • energy and LPG customers must now comply with the obligations set out in clause 8 of the general terms, such as only using the services for the purpose for which they are intended, to provide Mercury with information that it reasonably requests, to not use the services for unlawful purposes, to be responsible for addressing any faults the customer causes, etc
  • internet customers now have certain additional obligations, such as to not threaten, bully, or harass Mercury’s staff.
    
    
• “Vulnerable customers”: the concept of “vulnerable” electricity customers have been removed for consistency with updated Electricity Authority Customer Care Guidelines, which no longer includes this concept. However, provisions relating to customers who are having difficulty with their power bills in those guidelines are included, and provisions relating to “medically dependent” customers remain.
  
  
• Bond: Bonds have been amended to refer instead to “pre-payments”, and have been updated for consistency between the various services to specify when and how pre-payment might be required.
  
  
• Charges, invoicing and payment: Charges, invoicing and payment processes have been consolidated for all services. This means that if a customer only took some services from Mercury but not others, they may now have new invoicing and payment processes in relation to their services. Similarly, for customers who took multiple services from Mercury, there will be new processes for some services that did not previously apply to that service. For example:
  • the updates clarify the order in which payments are applied to account charges across all services.
  • the updates clarify that the non-payment process and timings apply across all services. This means customers of internet and mobile services are entitled to more reminders and a longer disconnection process than previously. The terms also clarify across all services that services will not be disconnected during holidays, outside business hours, or during civil defence emergencies.
  • the terms provide for further options in the event of non-payment, such as credit limits or cancelling rebates.
    
    
• Access: The processes and obligations relating to access to customer property have been standardised across all services, in particular clarifying for internet and mobile customers 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. The consequences of failure to ensure access, which may include disconnection, have been made consistent across all services.
  
  
• Termination: The updates have:
  • made the process for termination for non-payment consistent across the services. For some services, this means that there are more warnings and a longer termination process than previously.
  • made the process for termination for persistent or material breach of the agreement consistent across the services.
  • 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.
  • 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 you; or
    • because Mercury has breached the agreement.
  • updated the terms to provide that that termination fees do not apply to you 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.
  • updated and consolidated what clauses of the agreement survive termination to be consistent across all services.
    
    
• Loss and damage: The updates have:
  • aligned the definitions of “Force Majeure Event” (i.e. an event outside Mercury’s or the customer’s control) across all the services. This definition is now wider for some services than it was previously.
  • consolidated the liability clauses. Mercury has not changed the amount of the caps on your liability, but have clarified that the caps are for a 12 month period.
  • amended what “indirect” losses the parties will not be liable to the other for
  • updated and made consistent when the liability caps do not apply, for both parties.
  • amended and consolidated what liability our employees, service providers and similar do not have to you, including amending what “indirect” losses they are not liable for. The cap amounts for third party liability have decreased for internet and landline services, stayed the same for LPG, and new caps have been added for third parties for energy and mobile services. The caps are now specified to be for 12 month periods.
    
    
• Changes: the updates have amended the change sections to be consistent for all services. This means including:
  • adding a list of the types of changes that might be made;
  • making the process for change notification consistent; and
  • making the customer’s options if they believe a change is detrimental consistent, including the options to stay on the unchanged terms or terminate without exit fees.
    
    
• General: the updates have amended aspects of the general clauses for consistency across all services, for example:
  • clarification about what clauses survive termination
  • that the parties don’t waive their rights if they don’t exercise them
  • that New Zealand law and the New Zealand courts apply to the agreement
  • changes to the definitions have been made for consistency.

Business General Terms

• 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 clarified and made consistent.
  
  
• Acceptance process: the acceptance process is now consistent across all services.
  
  
• Privacy: the privacy provisions are now all included in the Privacy Policy.
  
  
• Obligations of the customer: the customer’s obligations have been consolidated across all services. This means that if a customer only took some services from Mercury but not others, they may now have new obligations in relation to their services. Similarly, for customers who took multiple services from Mercury, there will be new obligations for some services that did not previously apply to that service. For example:
  • energy and LPG customers must now comply with the obligations set out in clause [5] of the general terms, such as only using the services for the purpose for which they are intended, to provide Mercury with information that it reasonably requests, to not use the services for unlawful purposes, to be responsible for addressing any faults the customer causes, no resale of the services, clarification of where responsibility for energy passes to the customer etc
  • internet customers now have certain additional obligations, such as to not threaten, bully, or harass Mercury’s staff.
  • There are also new obligations for all customers, such as the requirement for customers to advise of significant changes in the consumption of their services and changes in equipment that may materially affect the supply of the services.
    
    

• “111 Code”: the concept of “vulnerable” landline customers has been added to these Business General Terms.

  
  

• Bond: Bonds have been amended to refer instead to “pre-payments”, and have been updated for consistency between the various services to specify when and how pre-payment might be required.
  

  
  

• Equipment: new obligations have been added specifying ownership and responsibility for equipment.
  

  
  

• Access: The processes and obligations relating to access to customer property have been standardised across all services, in particular clarifying for internet customers 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. The consequences of failure to ensure access, which may include disconnection, have been made consistent across all services.
  
  
• Charges, invoicing and payment: Charges, invoicing and payment processes have been consolidated for all services. This means that if a customer only took some services from Mercury but not others, they may now have new invoicing and payment processes in relation to their services. Similarly, for customers who took multiple services from Mercury, there will be new processes for some services that did not previously apply to that service. For example:
  • the updates clarify the order in which payments are applied to account charges across all services.
  • the updates clarify that the non-payment process and timings apply across all services. This means customers of internet services are entitled to more reminders and a longer disconnection process than previously. The terms also clarify across all services that services will not be disconnected during holidays, outside business hours, or during civil defence emergencies.
  • the terms provide for further options in the event of non-payment, such as credit limits or cancelling rebates.
    
    
• Moving premises and sale of business: New requirements of notice for moving and sale of business have been added, as well s consequences for failure to comply with the process.
  
  
• Termination: The updates to termination are included in both the General Terms and the Specific Terms for each service. For convenience the changes are summarised here. The updates have:
  • made the process for termination for non-payment consistent across the services. For some services, this means that there are more warnings and a longer termination process than previously.
  • made the process for termination for persistent or material breach of the agreement consistent across the services.
  • 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.
  • 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 you; or
    • because Mercury has breached the agreement.
  • updated the terms to provide that that termination fees do not apply to you 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.
  • updated and consolidated what clauses of the agreement survive termination to be consistent across all services.
    
    
• Loss and damage: The updates have:
  • aligned the definitions of “Force Majeure Event” (i.e. an event outside Mercury’s or the customer’s control) across all the services. This definition is now wider for some services than it was previously.
  • consolidated the liability clauses..
  • amended what “indirect” losses the parties will not be liable to the other for
  • updated and made consistent when the liability caps do not apply, for both parties.
  • amended and consolidated what liability our employees, service providers and similar do not have to you, including amending what “indirect” losses they are not liable for. The cap amounts for third party liability have been capped for all services at $3,000 in any 12 month period.
  • clarified that the Consumer Guarantees Act does not apply to services provided to business customers.
    
    
• Changes: the updates have amended the change sections to be consistent for all services. This means including:
  • adding a list of the types of changes that might be made;
  • making the process for change notification consistent; and
  • making the customer’s options if they believe a change is detrimental consistent, including the options to stay on the unchanged terms or terminate without exit fees.
    
    
• Confidentiality: The confidentiality clause that previously applied to internet customers now also applies to energy customers.
  
  
• General: the updates have amended aspects of the general clauses for consistency across all services, for example:
  • what assignment rights each party has
  • clarification about what clauses survive termination
  • that the parties don’t waive their rights if they don’t exercise them
  • that New Zealand law and the New Zealand courts apply to the agreement
  • changes to the definitions have been made for consistency.

Specific Terms

• Concept of Specific Terms: The terms that apply to specific services have been separated from the common “General Terms” into specific terms for each service. Some changes have been made in each set of terms. Changes to the termination clauses are summarised in the “Termination” section of the General Terms summary. Additional changes are:

   

• LPG:
  • the supply of services section has been updated to align with the definitions used
  • references to the LPG Association have been updated to Gas NZ, and relevant guideline names have been updated.

   

• Electricity and Piped Gas:
  • the changes provide a specific timeframe in which in which refund of overpayments resulting from a meter or meter reading error will be processed.
  • the changes have added that Mercury may discontinue to supply energy if if you tamper with your meter.

   

• Mobile: the drafting in the section on Mercury’s commitment to the customer has been simplified, but the obligations remain unchanged.

   

• Emergency Mobile: The Emergency Mobile terms have now been split between the General Terms and the Specific Terms for the Emergency Mobile service. However there is no change to how the Emergency Mobile Service operates or Mercury’s obligations in providing it, and the terms relating to payment of charges only apply if the customer uses the messaging service. There is no charge for 111 calls. The “disconnection for non-payment” clauses of the General Terms do not apply to the Emergency Mobile service. There is no change to how the Emergency Mobile service can be terminated, it can still only be terminated if:
  • the customer is no longer a Mercury landline customer; or
  • the customer is no longer a “vulnerable customer” under the 111 Code.