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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

Latest news

4 October 2022 – New All-of-Government electricity contract launch

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.
  • Flexible billing options, consolidated billing or individual billing for each site.
  • Account management and reporting (if needed) from the suppliers.
  • Complaints or performance management process and a timeline for resolution.

What’s not covered

  • Installation for distributed and embedded energy generation (eg solar panel installation).
  • Energy audits or external energy management advice or software.
  • Liquefied petroleum gas (LPG) and natural gas providers.

How it works

Eligible agencies and schools are required to join the secondary procurement process (SPP). This is a closed tender process to receive the service order (SO), including the pricing elements from the panel suppliers.

We group agencies and schools with complementary requirements (known as a tranche) and invite the five suppliers on the panel to submit their pricing via the SPP. We run these SPPs on behalf of the agencies and schools to ensure a fair process and competitive price.

Here is more information on how to use the contract:

Using the electricity contract

Features and benefits

  • Incentives for participating agencies or schools to consume less energy by changing the administration fee from a percentage base to cent per kW.
  • Price certainty and flexibility on agencies’ and schools' daily consumption, through fixed price variable volume (FPVV), and optional pricing strategies, such as spot or hedge pricing and solar buy-back services.
  • Introduction of both desktop and cloud-based applications that agencies and schools can use to review usage and spend data.
  • Access to the five largest electricity retailers, with fair terms and conditions, and selected free services to help agencies and schools with their de-carbonisation activities (workshops and webinars).
  • Suppliers provide account managers to respond to daily operational matters.
  • Suppliers demonstrate broader outcomes within their processes and include climate related reporting.
  • Support of digital government business through initiatives like e-Invoicing.
  • Support from our Utilities team, with a dedicated point of contact.

Savings and costs

Savings

Agencies and schools participating in the electricity contract don't need to go through a full procurement process of their own. We approach the market on your behalf through the secondary procurement process (SPP) and provide other services, for example legal services, which will save you time, effort and cost.

We run regular SPPs to discover competitive pricing in the current market and pass on these savings to participating agencies and schools.

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) or 0.04 cents per kWh.

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

Start date:
Current term end date:
Contract Terms:
Three years + two rights of renewal of three years
Renewals left: two

Joining this contract

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​​Roles and responsibilities

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

Roles and responsibilities

Joining All-of-Government contracts

To be able to purchase from this contract agencies and schools first need to join.

Joining AoG contracts

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