NSW Procurement will shortly be issuing a request for tender for the retail supply of conventional electricity and green power to NSW Government large sites, street lighting and traffic signals commencing from 1 July 2010. We note that your agency is covered by the Premier’s Memorandum 2006-11 which requires all NSW Government agencies to use State Contracts Control Board (SCCB) whole-of-government contracts, where they are available, when procuring goods and services.
Confirmation of Commitment
On the basis of the requirement in the Premier’s Memorandum 2006-11, we are seeking confirmation of your agency’s commitment to purchasing electricity from the SCCB large sites electricity contract that will be formed following the conclusion of the tender process. The strategy for this tender will be to obtain pricing from retail suppliers based on a nominated load of electricity for the whole-of-government calculated from historical consumption data. As the pricing available to customers under the contract will be affected by significant fluctuations in electricity consumption by the customers, we require you to provide us with details of any known future changes in electricity consumption. These details will allow NSW Procurement to provide accurate data for the potential tenderers to determine their pricing.
Aggregated Savings
With firm commitment on the volume of electricity to be purchased from all agencies, we can aggregate NSW government’s purchasing power and obtain the lowest possible prices compared to any individual agency negotiation, achieving significant savings. Therefore, your commitment is vital to our success in securing the best possible rates for the new contract.
NSW Procurement assisted NSW Government agencies to achieve savings of $64 million in the financial year 2007/08 (savings compared to monthly average energy costs when purchased outside the contract rates). For the past three years the State Government’s electricity contract has provided lowest pricing to government even during recent volatile times.
Next steps
Once the SCCB contract is formed with the successful supplier or suppliers, customers will have a short timeframe of possibly 6 weeks to place their orders for conventional electricity and green power. The conventional electricity and green power order forms will need to be completed by your organisation at the appropriate time. We will contact you and provide you with advance notice of the forms and due date for these orders.
Kindly provide your response by returning a signed copy of the attached letter with the required details completed.
Please return this letter by 22 July 2009 by fax to: 02 9372 8687. Your support is very much appreciated, thank you.
If you have any queries, please contact NSWBUY Client Support Centre 1800 679 289.
