Tendering for an Electricity Sale Agreement

Electricity Tender Services

Bulk Supply Site or Large Customer

If you have an existing Electricity Sale Agreement for a bulk supply site or large customer which is due to expire within the next eight (8) months, we can tender your site on your behalf for a new Electricity Sale Agreement. The owner can enter an electricity sale agreeemnt with a supplier of their choice and obtain savings compared to the current QLD tariffs. The electricity is still delivered through the existing Distribution System (existing wires etc) therefore there is no change to the quality and reliability of the supply.

Because of the complexitiy and large number of electricity consumers in QLD, the QLD Government found it necessary to “roll out” freedom of choice in stages or “Tranches”:

  • 1st Stage was 29 March 1998 where the state’s largest electricity users were able to enter the competitive electricity market
  • 2nd Stage was 1 October 1998 where customers with an annual electricity usage of more than 4 GWh were able to enter the competitive electricity market
  • 3rd Stage was 1 July 1998 where customers with an annual electricity usage of more than 0.2 GWh (over 200,000 kWh) were able to enter the competitive electricity market
  • 4th Stage was July 2004 where customers with an annual electricity usage of more than 0.1 GWh (over 100,000 kWh) were able to enter the competitive electricity market.

On your behalf, we can tender your site which includes preparing tender documents (site specific and including any proposed changes e.g. increase in consumption), check your Network Tariff Code, Submission of Lower DLF approval if applicable, Forward tender to 4 or 5 electricity suppliers, analyse each offer and negotiate witht eh teo lowest tender offers, request review of rates, prepare report on tender results.
If your site is already on an Electricity Sale Agreement with a supplier of choice and the expiry date of the current agreement is within 1-6 months, prior to the end of your current agreement, a new agreement should be negotiated and a new agreement signed with a supplier of choice. This can be a time-consuming and confusing process for some clients. Watts Energy can tender your site and provide assistance to you with re-negotiating a new Electricity Sale Agreement. We suggest that the re-negotiation process commence as early as possible e.g. 6 months prior to current expiry date. With early negotiation, you then have time on your side and if pricing is high with the first tender, the site can be re-tendered a second time with the goal of obtaining better prices for you.

Franchise Tariff Sites

If your site is sitll billed on a Franchise Tariff, why tender? To achieve a lower rate which results in lower total electricity charges for the owner, lower air-conditioning and lower common area charges together with an increase in profit on resale, which we are advised by the “people in the know in that industry”, increase the valuation of the property (we have been advised in the past that for every $1.00 profit equals an increase of $10.00 in valuation). For more information, please contact us.