12 December 2019 - Update on Electricity contract - Tranche 13
The supply of electricity and associated services including:
Subsidised energy audits or the provision of energy management advice or software is out of scope. Most electricity retailers already offer websites and information in their invoices towards energy awareness, how to reduce your agency’s consumption, and make savings.
We group agencies with complementary requirements (known as a tranche) and invite the five suppliers on the panel to submit pricing via a secondary procurement process (SPP).
We run these SPPs are twice a year, or on demand. To date we have run SPPs for small, medium and large agencies.
To date, participating agencies are paying on average 5% below comparable standard market rates for their electricity.
We provide savings in comparison to market pricing after each successful tranche to the participating agencies in the tranche.
The secondary procurement process is a market approach on behalf of participating agencies. Your agency does not need to run its own procurement process and/or engage with external energy services for this purpose.
Most AoG contracts include an administration fee. This fee is a simple, effective and transparent way of recovering the cost of developing, sourcing, implementing and managing AoG contracts.
There is no upfront charge for participating in a tranche for the Electricity Contract. After an agency enters into a Pricing Supplement(s) with a supplier(s) and supply commences, an administration fee of 0.25% applies to the total invoice (exclusive of GST).
Suppliers collect the administration fee and pass it on to MBIE - agencies don't need to make any payments to MBIE.
Each participant in this contract has responsibilities that they must meet as part of that contract.