How to buy
|Date:||7 Jan 2020 - 19 Jan 2021|
|Updated:||19 Jan 2021|
|Type:||Whole of government|
Who can use this contract
Contract 777 covers the supply of electricity to eligible government customers in NSW/ACT, where sites are classified as large sites with consumption over 100,000 kWh per year.
All electricity customers with site consumption less than 100,000 kWh per year should be placed on Contract 776 Retail Supply of Electricity and GreenPower (Small Sites).
Contract 777 is only open to mandated NSW Government departments who are governed by NSW Procurement Policy Framework.
Signing an agreement
A customer contract "Retail Electricity Agreement" (REA) that is applicable under Contract 777 needs to be signed with ERM Power.
The purpose of the REA is for the customer to understand the terms applicable under Contract 777, add/remove/amend site details as required, and commit their load on the contract for the term of Contract 777.
REA also allows the customer to nominate its meter provider. Where the customer does not specify its nominated meter provider, then ERM Power shall use the government appointed meter provider under Contract 778 Retail supply of Electricity Metering and Metering Data Agency Services for NSW Government (Large Sites).
ERM Power will coordinate with the customers for transfer of all sites to them. No site will be transferred without the written consent of either party.
Adding or removing sites
Buyers may add or remove additional sites to or from the premises with prior written consent of ERM Power.
If additional sites need to be added or removed buyers will be required to complete the roll In/roll Out form which can be obtained from ERM's account manager, Sue Melchor.
The form, once completed and signed by an authorised delegate within the buyer's organisation, should be returned to ERM's account manager.
Any removed sites will remain part of the premises until the site is disconnected. Customers can seek confirmation from ERM Power once the site is disconnected.
Contract prices are available during May of the preceding financial year.
The prices apply to all large sites located within NSW or the ACT.
Contract prices are charged according to the time of use of electricity. Time of use are classified as under:
- peak: 7am to 9am and 5pm to 8pm AEST on NSW business days except Saturday, Sunday and public holidays in NSW
- shoulder: 9am to 5pm and 8pm to 10pm AEST on NSW business days except Saturday, Sunday and public holidays in NSW
- off-peak: all times outside peak and shoulder periods.
Yearly variations to price
Contract pricing is based on NSW Procurement undertaking a progressive purchasing model (buying annual electricity in small blocks spread over a number of transactions, and arriving at a volume weighted average price) with ERM Power.
This model does not provide fixed pricing to the buyers, however it enables the government to better manage price risks and contain the cost of electricity.
To support the objective of centralised and consolidated billing, ERM Power shall upon request present a single invoice monthly for all consolidated premises. The consolidated invoice includes all charges associated with retail electricity supply, network operation, regulatory charges, losses and any other costs associated with the supply of conventional electricity deliverables and GreenPower deliverables to the buyer’s sites.
Buyers shall make a single payment to ERM Power for each account or consolidated account agreed at the time of signing REA.
In the event that an invoice is found to be overcharged due to any error by ERM Power, ERM Power shall refund all overcharges to the buyer within 30 calendar days from the date of becoming aware of the error.
All invoice corrections shall be presented as a credit/debit on a future invoice and not as a reissue of previous invoices. These corrections shall be accompanied by an explanation on the invoice of the circumstances behind the credit/debit. In some cases (such as a site closure), ERM Power shall, if requested by a buyer, refund any credits by direct transfer to their nominated organisation bank account or make payment via a cheque.
ERM Power shall provide invoices at the end of each billing period for payment within 21 days. Buyers must pay all invoices within 21 days from date of issue of a correctly rendered invoice (unless shorter payment terms are agreed at discounted rates).
During the NSW Department of Education summer school holiday period, school invoices for usage in December will have an additional seven days for payment without accruing late payment interest charges and schools must pay within 28 days from the date of issue of invoice.
Late payments: After the first 3 months from the commencement of contract, for any late payment, ERM will charge interest on the outstanding amount at the default interest rate. Definition for the default interest rate is provided on the customer contract.
In case of full payment before the due date shown on the invoice, ERM will give a discount for early payment by applying the early payment interest rate. The discount will apply as a credit on the following bill. The calculation method used is as follows:
Invoice amount due: $10,000.00 ex GST
Payment due: 21 March
Payment made by client: 3 March (19 days from due date)
Payment received by ERM: 4 March (18 days from due date)
RBA Cash Rate: 1.50%
Early Payment Amount: $27.12
Saving opportunities are available to customers through yearly tariff analysis undertaken by ERM Power at no additional cost. NSW Procurement coordinates this activity by working with ERM Power.
Early payment discount is available in addition to the competitive energy rates.