Buying electricity
Learn about the All-of-Government electricity contract, through which schools can purchase electricity from one of five potential suppliers. Also find general advice on buying electricity.
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Recommended
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AoG contracts are optional for schools to join. If not joining the AoG contract and entering into a commercial agreement with an electricity supplier instead, it is still recommended that schools consider the advice on this page.
- Benefits of joining this AoG contract
- How to join the AoG electricity contract
- Advice for buying electricity outside of the AoG contract
- Further information
Benefits of joining this AoG contract
Joining an All of Government contract is likely to save schools both time and money, while also reducing risk.
Learn more about All of Government contracts.
The AoG electricity contract offers the following benefits to schools.
- Consumption data (historical and real-time) to help reduce emissions from goods and services.
- Desktop and cloud-based applications that you can use to review usage and spend data.
- A high level of price certainty whilst receiving flexibility on your daily consumption, through fixed price variable volume (FPVV).
- Changes to the administration fee from a percentage base to cent per kW to encourage you to consume less energy.
- Procurement process has been completed on behalf of the school including advance planning and early engagement with school and suppliers.
- Fair and transparent contract.
- Improved supplier performance, including supplier reliability, fault reporting and notification of planned outages.
- Support and advice from both electricity suppliers and New Zealand Government Procurement.
How to join the AoG electricity contract
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Contact New Zealand Government Procurement (NZGP)Email NZGP at utilities.coe@mbie.govt.nz.
After contacting NZGP, they will let you know when they expect that your school will be able to join the contract.
Your school will be added to the contract with a group of other government customers, in a batch referred to as a ‘tranche’.
It typically takes around 6-8 months from expressing interest in joining a tranche to commencing the new contract. Therefore, it is important that you start the process at least six months in advance of your current supply contract expiring.
Tranches are added to the contract only on specific dates, which differ every year.
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Before you begin
If your school hasn’t signed up to an AoG contract before, you will need to complete a non-disclosure agreement (NDA) available on the New Zealand Government Procurement website(external link).
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Read about the contract and the memorandum of understanding (MoU)
Log in to the New Zealand Government Procurement website(external link) to access more information on the contract. You will need to be using your school-linked RealMe account, as you will gain access to commercially sensitive information.
Learn more about linking a RealMe account to a school. Read the MoU for the electricity contract in the ‘Contract documents’ section on the New Zealand Government Procurement webpage(external link). The MoU sets out the obligations of schools participating in the contract.
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Register for a tranche
To register to be included in a tranche, sign a Joining Form. Request a Joining Form for the contract by emailing procurement@mbie.govt.nz
Learn more about Joining Forms. Completing the Joining Form confirms your school agrees to the terms set out in the Memorandum of Understanding (MoU).
Your completed Joining Form must then be emailed to utilities.coe@mbie.govt.nz.
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Provide electricity information
Email the below information to utilities.coe@mbie.govt.nz.
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Wait for NZGP to complete a secondary procurement process
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Evaluate the offer recommended by NZGP
These documents will state the:
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Accept an offer
A supplement states the:
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Advice for buying electricity outside of the AoG contract
Approach the market early
It is recommended that schools approach the market approximately six months before the expiry of a current contract.
Schools then have the freedom to evaluate the offers made by suppliers and even decline all of them, if it expected that the prices offered will be lower in one or two months’ time.
Approaching the market late can encourage any of the following:
- Shortcuts to be taken when providing information to suppliers and evaluating offers, which can have costly consequences.
- Agreement to a long-term contract at a time when electricity prices are irregularly high.
- The temporary usage of expensive short-term pricing while a long-term purchase is finalised.
- The rolling over of a current contract, which may not be the best available on the market.
Provide accurate data
Electricity suppliers make their offers based on the information that is provided to them.
When electricity suppliers receive incomplete, old, or inaccurate data, they are likely to make a higher priced offer, so that the costs of any risk are placed with the school.
Be sure to give suppliers:
- the ICP numbers of all sites
- a full set of monthly electricity consumption data (most recent 12 months)
- a note about any potential upcoming increases or decreases in electricity use.
Run a competitive process
It is recommended that at least five suppliers are contacted and asked to make offers.
See the list of suppliers who also supply electricity under the AoG contract.
As markets change over time, suppliers that may have made not-preferred offers in the past might make the best offer at this time of asking.
See Running a competitive buying process.
Evaluate offers effectively
Suppliers can provide their offers to schools in differing formats. This can make it difficult to compare their offers.
It is always worth putting in the time to format the information received so that it is easier to compare. It is also important to double-check any calculations completed while doing this.
At the most basic level, it is crucial that total annual costs offered by all suppliers are compared.
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