BILL 54
An Act to Amend the
Petroleum Products Pricing Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section
1 of the Petroleum Products Pricing Act, chapter P-8.05 of the Acts
of New Brunswick, 2006, is amended
(a) by repealing the definition “Board”
and substituting the following:
“Board” means the New Brunswick
Energy and Utilities Board continued under the Energy and Utilities Board Act. (Commission)
(b) by adding the following
definition in alphabetical order:
“full service” means the dispensing
of motor fuel at an outlet by a pump island attendant, and not by
a consumer. (service complet)
2 Section
1.1 of the Act is amended by striking out “margins or delivery
costs” and substituting “margins, delivery costs or full
service charges”.
3 Section 3 of the Act is amended
(a) in subsection (3) by
adding “and such
other persons as may be specified by regulation” after “all wholesalers”;
(b) by adding after subsection
(4) the following:
3(5) The Board may delegate to the Chairperson of the Board, or in
his or her absence, the Vice-Chairperson, the authority to adjust
the benchmark prices for each type of petroleum product and to set
any maximum wholesale and retail prices under this section as a result
of any adjustment to the benchmark prices for such products.
4 Section
4 of the Act is amended by adding after subsection (3) the following:
4(3.1) Full service charges do not form
any part of a retailer’s margin under this section.
5 Section
5 of the Act is amended
(a) in subsection (3) by
adding “and such
other persons as may be specified by regulation” after “all wholesalers”;
(b) by adding after subsection
(5) the following:
5(6) A retailer who contracts with a third party to deliver motor
fuel from the wholesaler to the retailer or a retailer who picks up
motor fuel directly from the wholesaler shall ensure that records
are kept detailing the costs incurred by the retailer for such delivery
or pick up.
6 The Act is amended by adding after section
5 the following:
Maximum full service charge
5.1(1) The Board has authority to set, and shall set, the maximum full
service charge that may be charged by a retailer for motor fuel sold
on a full service basis to a consumer.
5.1(2) Notwithstanding subsection (1), the Minister shall set the initial
maximum full service charge under subsection (1) and such maximum
remains in effect until the Board changes it.
5.1(3) The Minister or the Board, as the case may be, shall ensure that
all retailers who sell motor fuel are advised of the maximum full
service charge before it is to take effect.
7 Section
6 of the Act is amended by striking out “a wholesaler or retailer”
and substituting “a
wholesaler, retailer or any other person specified by regulation pursuant
to subsection 3(3)”.
8 Section 7 of the Act is amended
(a) by repealing subsection (2) and substituting
the following:
7(2) The price under subsection (1) shall, subject to any maximum
prescribed under this Act, include any delivery costs paid by the
retailer to the wholesaler or otherwise incurred by the retailer for
the delivery of that fuel and, where applicable, any full service
charge.
(b) by repealing subsection
(3) and substituting the following:
7(3) A retailer who delivers heating fuel to a consumer shall ensure
that the invoice provided to the consumer shows the following information
as separate items:
(a) the price of the fuel as delivered, expressed in cents
per litre;
(b) any special delivery charges incurred by the consumer
in having the fuel delivered.
(c) in subsection (4) by
striking out “paragraph (3)(c)” and substituting “paragraph (3)(b)”.
9 Section
9 of the Act is amended
(a) by repealing subsection
(4) and substituting the following:
9(4) A retailer shall not charge a consumer more for delivery costs
for motor fuel than the least of the following:
(a) the amount the retailer was charged by the wholesaler;
(b) the actual costs incurred by the retailer for
the delivery of the fuel where it is delivered by someone other than
a wholesaler;
(c) the maximum amount for delivery costs that may be charged
by a wholesaler to a retailer for the delivery of motor fuel set by
the Minister or the Board, as the case may be.
(b) in subsection (5) by
striking out “the Board” and substituting “the Minister or the Board,
as the case may be”;
(c) by adding after subsection
(5) the following:
9(6) A retailer shall not charge a consumer who purchases motor fuel
from the retailer on a full service basis more than the maximum amount
for the full service charge set by the Minister or the Board, as the
case may be.
10 The
Act is amended by adding after section 13 the following:
Adjusting full service charges
13.1(1) A retailer who sells motor fuel may make an application to the
Board to adjust the maximum full service charge that may be charged
by retailers to consumers who purchase motor fuel on a full service
basis.
13.1(2) An application under subsection (1)
shall set out the following:
(a) the proposed change in the maximum full service charge;
(b) the reasons for the proposed change;
(c) such other information that may be required by the Board
or by regulation with respect to the application.
13.1(3) The onus is on the applicant to show that the proposed change
in the maximum full service charge is justified.
13.1(4) The Board, following the investigation it considers necessary,
including the holding of a hearing where it considers one is desirable,
may
(a) deny the application,
(b) approve the application, or
(c) set another maximum full service charge that the Board
considers appropriate in the circumstances.
13.1(5) A change ordered under subsection (4) takes effect on the
date set out in the order.
11 Section
14 of the Act is repealed and the following is substituted:
14(1) The Board may, on its own motion, conduct
a review of maximum margins, maximum delivery costs or the maximum
full service charge to ensure that they are justified, and may order
such margins, costs or charge to be adjusted after the review is completed.
14(2) The Board may, on the request of a wholesaler or retailer or
on its own motion, review the suitability of the pricing mechanism
for benchmark prices and may provide the Minister with its recommendations
on the matter.
14(3) The Board shall, on the request of the Minister, review the suitability
of the pricing mechanism for benchmark prices and shall provide the
Minister with its recommendations on the matter.
12 The
heading “Complaint hearing” preceding section 17 of the
Act is repealed.
13 Section
17 of the Act is repealed.
14 The
heading “Powers of Board members” preceding section 18
of the Act is repealed.
15 Section
18 of the Act is repealed.
16 The
heading “Engagement of experts” preceding section 19 of
the Act is repealed.
17 Section
19 of the Act is repealed.
18 The
heading “Admissibility of evidence” preceding section
20 of the Act is repealed.
19 Section
20 of the Act is repealed.
20 The
heading “Investigation into prices and delivery costs”
preceding section 21 of the Act is repealed and the following is substituted:
Investigation by Board
21 Section
21 of the Act is repealed and the following is substituted:
21(1) The Board may, on its own motion or
upon a complaint, conduct an investigation to determine whether a
price being charged by a wholesaler or retailer for a type of petroleum
product exceeds the maximum price set under this Act or whether the
delivery costs or the full service charge being charged by a wholesaler
or retailer, as the case may be, exceeds the maximum delivery costs
or the maximum full service charge set under this Act.
21(2) When the Board, as a result of an investigation believes that
a wholesaler or retailer has charged or is charging a price for a
type of petroleum product that exceeds the maximum price set under
this Act, or is charging in excess of the maximum delivery costs or
the maximum full service charge set under this Act, the Board shall
order the wholesaler or retailer to sell or offer for sale the type
of petroleum product at a price not to exceed the price set by the
Board or not to charge delivery costs or a maximum full service charge
in excess of that set under this Act.
22 The
heading “Procedure” preceding section 22 of the Act is
repealed.
23 Section
22 of the Act is repealed.
24 The
heading “Contempt” preceding section 23 of the Act is
repealed.
25 Section
23 of the Act is repealed.
26 Paragraph
24(1)(a) of the Act is repealed and the following is substituted:
(a) to determine whether
(i) the prices being charged by the wholesaler
or retailer for petroleum products exceed the maximum prices set under
this Act,
(ii) the delivery costs being charged
by a wholesaler to a retailer or by a retailer to a consumer for the
delivery of motor fuel exceeds the maximum delivery costs set under
this Act,
(iii) the delivery costs being charged
by a retailer to a consumer for the delivery of heating fuel exceeds
the maximum delivery costs set under this Act, or
(iv) the full service charge charged by
a retailer to a consumer exceeds the maximum full service charge set
under this Act,
27 Section
25 of the Act is amended by striking out “or a change to the
maximum delivery costs” and substituting “, a change to the maximum delivery
costs or the maximum full service charge”.
28 Section
29 of the Act is amended by adding after subsection (4) the following:
29(5) A person who violates or fails to comply
with an order of the Board commits an offence punishable under Part
II of the Provincial Offences Procedure
Act as a category F offence.
29 Section
33 of the Act is amended
(a) by adding after paragraph
(a) the following:
(a.1) exempting retail outlets that sell motor fuel, specifically
or by class, from the application of this Act or the regulations
or any provision of this Act or the regulations, subject to such terms
and conditions as the Lieutenant-Governor in Council considers appropriate;
(b) in paragraph (c) by striking out “and
maximum delivery costs” and substituting “, maximum delivery costs and the
maximum full service charge”;
(c) in paragraph (e) by
striking out “or maximum delivery costs set under this Act”
and substituting “or
maximum delivery costs or the maximum full service charge set under
this Act”;
(d) by adding after paragraph
(e) the following:
(e.1) specifying persons for the purposes of subsections 3(3)
and 5(3);
(e) in paragraph (i) by
striking out “and maximum delivery costs” and substituting “, maximum delivery
costs and the maximum full service charge”.
30 Schedule
A of the Act is amended by adding after
the
following:
31 Section 6 of this Act shall be deemed to
have come into force on July 1, 2006, and any orders or determinations
made by the Minister or Board with respect to the maximum full service
charge are hereby ratified and confirmed, and shall be deemed to have
been validly made.
EXPLANATORY NOTES
Section 1
(a) The existing provision is
as follows:
“Board” means the Board of
Commissioners of Public Utilities constituted under the Public Utilities Act. (Commission)
(b) New provision.
Section 2
Consequential amendment.
Section 3
(a) The existing provision is
as follows:
3(3) The Minister or the Board, as the case may be, shall ensure that
all wholesalers are informed of the maximum prices and margins before
they are to take effect.
(b) New provision.
Section 4
New provision.
Section 5
(a) The existing provision is
as follows:
5(3) The Minister or the Board, as the case may be, shall ensure that
all wholesalers are advised of the maximum delivery costs before they
are to take effect.
(b) New provision.
Section 6
New provision.
Section 7
Consequential amendment.
Section 8
(a) The existing provision is
as follows:
7(2) The price under subsection (1)
shall include any delivery costs paid by the retailer to the wholesaler
for the delivery of that fuel.
(b) The existing provision is
as follows:
7(3) A retailer who delivers heating fuel
to a consumer shall ensure that the invoice provided to the consumer
shows the following information as separate items:
(a) the price of the fuel;
(b) the delivery costs charged to the consumer;
(c) any special delivery charges incurred, other than those
under (a) and (b), by the consumer in having the
fuel delivered.
(c) Consequential amendment.
Section 9
(a) The existing provision is
as follows:
9(4) A retailer shall not charge a consumer
more for delivery costs for motor fuel than the retailer was charged
by the wholesaler for the delivery of the fuel.
(b) The existing provision is
as follows:
9(5) A retailer shall not charge a consumer for delivery costs for
heating fuel more than the maximum delivery costs set by the Board.
(c) New provision.
Section 10
New provision.
Section 11
The existing provision is as follows:
14(1) If there has been no application under section 12 in any
12 month period, the Board shall conduct a review of the maximum margins
to ensure that they are justified.
14(2) If there has been no application under section 13 in any
12 month period to adjust the maximum delivery costs that are generally
applicable, the Board shall conduct a review of all maximum delivery
costs to ensure that they are justified.
14(3) The review shall take place within 30 days after the end of the
12 month period referred to in subsection (1) or (2).
14(4) The Board may, on the request of a wholesaler or retailer or
the Minister, review the suitability of the pricing mechanism referred
to in sections 10 and 11 and shall provide the Minister with its recommendations
respecting the mechanism.
Section 12
Consequential amendment.
Section 13
The existing provision is as follows:
17(1) The Board may hold a hearing in respect of a complaint made against
a wholesaler or retailer and in that case shall notify the wholesaler
or retailer as to the nature of the complaint and the time, date and
place of the hearing.
17(2) In a hearing under this section, the wholesaler or retailer and
the complainant shall be entitled to be heard and witnesses shall
be permitted to attend to give evidence.
Section 14
Consequential amendment.
Section 15
The existing provision is as follows:
18(1) The Board has all the powers, rights and privileges as are vested
in The Court of Queen’s Bench of New Brunswick in relation to
the attendance, swearing and examination of witnesses, the production
and inspection of documents, the enforcement of its orders, the entry
on and inspection of property and other matters necessary or proper
for the due exercise of its jurisdiction.
18(2) The Chairman of the Board, or any member of the Board or other
person designated by the Chairman, may administer oaths or affirmations,
certify as to the official acts of the Board and issue summons to
witness to compel the attendance of witnesses and the production of
records and documents.
Section 16
Consequential amendment.
Section 17
The existing provision is as follows:
19(1) The Chairman may engage the services of such professional, technical
or other experts or other persons to advise it in any matter upon
such terms and conditions as the Board considers appropriate.
19(2) The Board may order by whom the fees and expenses of the persons
so engaged shall be paid.
Section 18
Consequential amendment.
Section 19
The existing provision is as follows:
20 The Board may receive in evidence any statement, document, record,
information or thing that, in the opinion of the Board, is relevant
to the matter before it, whether or not the statement, document, record,
information or thing is given or produced under oath or would be admissible
as evidence in a court of law.
Section 20
New heading.
Section 21
The existing provision is as follows:
21(1) The Board may conduct an investigation to determine whether a
price being charged by a wholesaler or a retailer for a petroleum
product exceeds the maximum price set under this Act or whether the
delivery costs being charged by a wholesaler or retailer exceed the
delivery costs set under subsection 9(3), (4) or (5).
21(2) When the Board as a result of an investigation conducted under
subsection (1) believes that a wholesaler or a retailer has charged
or is charging a price for a petroleum product that exceeds the maximum
price or the wholesaler or retailer is charging in excess of the delivery
costs set under subsection 9(3), (4) or (5), the Board shall
order the wholesaler or retailer to sell or offer for sale the heating
fuel or motor fuel at a price not to exceed the price set by the Board
or not to charge delivery costs in excess of that set under subsection 9(3),
(4) or (5).
Section 22
Consequential amendment.
Section 23
The existing provision is as follows:
22 The Board may inquire into, hear or determine any application, matter
or thing that under this Act it may inquire into, hear or determine
and in doing so, the Board
(a) subject to the regulations, is the master of its own
procedure and may give directions about process and procedure that
it considers appropriate in the circumstances, and
(b) may request from anyone and require anyone to gather
evidence or to prepare studies relevant and incidental to the matter
over which it is exercising its jurisdiction.
Section 24
Consequential amendment.
Section 25
The existing provision is as follows:
23 On application to The Court of Queen’s Bench of New Brunswick
by the Board, the failure or refusal of a person to attend, to take
an oath, to participate in a hearing, to answer questions or to produce
documents or any other thing in the custody, possession or control
of the person, to permit entry upon and inspection of property or
records or documents under the possession or control of the person
or to obey an order of the Board, as the case may be, makes the person
liable to be committed for contempt as if in breach of an order or
judgment of The Court of Queen’s Bench of New Brunswick.
Section 26
The existing provision is as follows:
24(1) For the purpose of ensuring compliance with this Act and the
regulations, the Board may, in writing, authorize a person to conduct
an inspection under this section and that person may enter the premises
of a wholesaler or retailer of petroleum products at reasonable times
(a) to determine whether
(i) the prices being charged by the wholesaler
or retailer for petroleum products exceed the maximum prices set by
the Board,
(ii) the delivery costs being charged
by a wholesaler to a retailer or by a retailer to a consumer for the
delivery of motor fuel exceeds the delivery costs set under subsection 9(3)
or (4), or
(iii) the delivery costs charged by a
retailer to a consumer for heating fuel exceeds the delivery costs
set under subsection 9(5),
Section 27
Consequential amendment.
Section 28
New provision.
Section 29
(a) New provision.
(b) Consequential amendment.
(c) Consequential amendment.
(d) New provision.
(e) Consequential amendment.
Section 30
New provision.
Section 31
Deeming provision.