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Electricity

Part of: Office Property All-of-Government

The All-of-Government electricity contract covers the supply of electricity and associated services.

Key details

Status

Current View dates

Type

All-of-Government

Lead agency

Ministry of Business, Innovation and Employment

Contact

procurement@mbie.govt.nz

What's covered

The supply of electricity and associated services including:

  • Fixed energy costs over the term of the supply agreed between the selected supplier and agency
  • Consolidated billing
  • Account management and reporting (if needed) from the suppliers
  • Complaints or performance management process and a timeline for resolution agreed with the participating agency

What’s not covered

Network and metering companies

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.

How it works

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.

Features and benefits

Price related attributes
  • A prompt payment discount is deducted in the supplier’s pricing submission (if applicable), if paid by the due date.
  • Supplier pricing submissions are inclusive of Emission Trading Scheme (ETS) responsibilities under the Climate Change Response Act 2002.
  • High level of transparency in the pricing, recommendation and secondary procurement process (SPP).
Non-price attributes
  • Enhanced supplier performance levels through terms agreed within the contract, including supply reliability, fault reporting, notification of planned outages.
  • Suppliers provide account managers to respond to agencies' daily operational matters.
  • Agreed process for managing performance issues.
  • Meter reading:
    • Time of Use (ToU) meters: all electronic remote reading for monthly billing takes place by the 5th business day of the month following the billing period.
    • Non Half an Hour (NHH): manual meter reading. Undertaken at least bi-monthly, unless agreed in writing with the Participating Agency.
    • Advanced (Smart) meters: electronic remote reading for billing takes place by the 5th business day of the monthly billing period for the applicable ICP. Energy data displayed on web service portals will be updated not less than five business days after the invoice date, unless the Participating Agency has agreed more frequent readings in a Pricing Supplement.
  • Billing and invoice systems:
    • ToU invoice information clearly identifying quantities and components contributing to the charges (ie kWh, capacity, energy, network, metering, administration/management fees, levies, taxes, credits and discounts).
    • All electronic billing and invoice information, including consolidated statements and data files for each site (ICP) provided in CSV format.

Savings and costs

Savings

Hard savings

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.

Soft savings

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.

Costs

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.

Dates and renewal details

Status:
Current
Start date:
Current term end date:
Renewal details:
Term: five years + two rights of renewal of two years
Renewals left: None
Expiry details:
The final right of renewal has been exercised, the contract will expire on 22 December 2020.

​​Roles and responsibilities

Each participant in this contract has responsibilities that they must meet as part of that contract.

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