Introduction to LGP’s Electricity Contracts

Purpose

• The purpose of this panel is to facilitate the selection of a panel of recognised (approved) retailers in accordance with the
• NSW Local Government (General) Regulation 2005 Clause 169
• This panel must be registered to supply electricity in NSW
• NSW councils and approved not for profit (NFP) organisations may participate in the tender process
• This arrangement is designed to provide a timely and efficient process whilst maintaining governance and due diligence.

Objectives

Specific objectives of this recognised (approved) panel arrangement are:

• To create a contract that meets the varying supply of electricity requirements of NSW Local Government and approved not for profit organisations
• To provide a list of recognised electricity retailers for councils and approved NFPs both from metropolitan and regional NSW areas.

Outcomes

Benefits to council and approved not for profit organisations are as follows;

• No cost to participate
• Competitive pricing
• No need to tender – saving time and money
• Legislative obligations met – LGP’s prescription status
• Input and evaluation by councils
• Quality panel
• Pre-negotiated fair contract conditions – the contracts have a head agreement and individual customer contracts Retailer
• Electricity Sales Agreement (RESA)
• Transparency of process
• Consolidated billing and electronic delivery of invoices at no additional cost
• Flexibility to add new sites onto the agreement at any given time
• Ongoing contract management
• Reduced risk – probity, compliance and process
• Rebate return to councils – further savings.

Based on historical data from previous energy projects, LGP can confirm that throughout this process as many as 100 councils and several NFPs have participated and enjoyed significant savings.

• Results received for buildings and facilities in the most recent tender were over 26% lower than our maximum price declaration acceptance form for peak rates and 29.7% lower for unmetered public lighting
• Results for large buildings and facilities in the prior tender were 22% lower than our maximum price declaration acceptance figures and 28% for unmetered public lighting.

Scope

Contract categories are as follows;

• Large Buildings & Facilities
• Small Tariff Sites
• Unmetered Public Lighting
• Green Power

Please note, separate contracts may be awarded for each of the different category areas.

Services available under this arrangement include;

• Category (energy) experts working for you
• Data collection and purification prior to tender
• Communication with retailers
• Queries in regards to bill abnormalities and verification
• Notification and review of price changes
• General enquiries regarding electricity.

Additional services such as network reviews, budgeting, audits, ongoing bill validation, policy development and carbon emissions reporting are also available, however these services may attract a fee. For further information please contact Peter Flood, Category Manager Utilities.

Benefits:

• No cost to participate
• Competitive pricing
• Input and evaluation by councils
• Pre-negotiated fair contract conditions
• Transparency of process
• Consolidated billing and electronic delivery of invoices at no additional cost
• Flexibility to add new sites onto the agreement at any given time
• Ongoing contract management
• Reduced risk – probity, compliance and process
• Rebate return to councils – further savings.
• Results for the most recent tender for Buildings and Facilities were over 26% lower than our maximum price declaration acceptance form for peak rates and 29.7% lower for unmetered public lighting.

Contractual Information

As the calling of tenders by LGP meets all requirements of the Local Government Act 1993 and Regulations (and that LGP has achieved Prescription), NSW councils do not need to independently tender for services  purchased under this supply arrangement.

Goods and Services Offered

The approved contractors (retailers) on this panel have registered to supply electricity to all four categories as follows;

Supply of Electricity for Large Buildings & Facilities
This contract covers the supply of electricity where sites are classified as large i.e. consumption generally over 100,000 kWh per annum.
Supply of Electricity for Unmetered Public Lighting
This contract covers the supply of electricity for public lighting.
Supply of Electricity for Small Tariff Sites
This contract covers the supply of electricity where sites are classified as small i.e. consumption generally lower than 100,000 kWh per annum.
Supply of Green Power
This contract covers the supply of green power i.e. power generated from sustainable sources where council may need to meet internal green power policy targets or offset electricity sites.

Services available under this arrangement include;

• Energy experts working for you
• Data collection and purification prior to tender
• Direct Communication with retailers
• Queries in regards to bill abnormalities and verification
• Notification and review of price changes
• General enquiries regarding electricity
• Metering Queries
• Adding and removing sites from the contract.

For further information please contact  Peter Flood, Category Manager Utilities or  email [email protected].

Engaging Contractors