Buying reticulated gas
Learn about the All-of-Government (AoG) reticulated gas contract, through which schools connected to pipelines in the North Island can buy natural gas. The contracted supplier is Genesis Energy.
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Recommended
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AoG contracts are optional for schools to join.
- Benefits of joining this AoG contract
- How to join the AoG reticulated gas contract
- Pricing for reticulated gas
- Advice for schools not eligible for the AoG contract
- Further information
Benefits of joining this AoG contract
Joining an All of Government contract is likely to save a school both time and money, while also reducing risk.
Learn more about All of Government contracts.
The AoG reticulated gas contract offers the following benefits to schools.
- Competitive prices for reticulated gas, with the potential to make monthly savings in comparison to pricing available outside of the AoG contract.
- Fixed prices over the duration of the contract which are only reviewed at contract renewal points.
- Fair and transparent contract terms.
- Support and advice from both Genesis Energy and New Zealand Government Procurement.
- Access to free decarbonisation workshops which support efforts to reduce carbon emissions and improve efficiency.
How to join the AoG reticulated gas contract
The process for joining the AoG reticulated gas contract is similar to that for other AoG contracts.
The joining process usually takes one month to complete. It may be quicker if a school is already with Genesis, or slower if currently with another supplier.
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1
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Determine if your school is eligible
Only schools in the North Island which are connected to the reticulated gas pipeline can join this AoG contract.
If your school is not eligible and would like to learn more about purchasing gas, see Advice for schools not eligible for the AoG contract.
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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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3
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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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4
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Provide gas information
New Zealand Government Procurement (NZGP) will supply this information to Genesis, who will prepare a pricing supplement uniquely for your school.
When NZGP receives this pricing supplement from Genesis, they will send it to you, along with a benefits statement for your review. The benefits statement will state your expected cost (based on your usage profile) and savings compared to your previous contract.
Until signed, the pricing supplement does not commit your school to any agreement.
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5
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Complete a Form of Accession (FoA) and pricing supplement
The FoA for reticulated gas can be completed online through the link below.
Reticulated gas - Form of Accession | New Zealand Government Procurement and Property(external link)
Completing the FoA confirms that your school agrees to the terms set out in the Memorandum of Understanding (MoU). It serves the same purpose as a Letter of Accession (LoA).
Also sign your pricing supplement and return it to NZGP. Signing the supplement confirms that you accept Genesis Energy’s pricing.
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Contract begins
When NZGP has processed your completed FoA and pricing supplement, they will inform Genesis of when your new contract with them is to begin.
Pricing supplements received by NZGP by the 20th of each month can begin their contract on the first day of the following month at the earliest.
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Pricing for reticulated gas
Gas prices incorporate the below costs:
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Transmission fees
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The cost of piping gas from its source field, to your local provider.
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Distribution fees
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The cost of piping gas from your local provider, to your site.
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Base gas price
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The cost of the gas resource to you.
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Carbon fees
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The costs associated with the New Zealand Emissions Trading Scheme.
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AoG admin fee
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The cost charged by New Zealand Government Procurement for administering the AoG contract.
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Almost all schools are Non-Time of Use (N-TOU) sites. This means that the gas price is consolidated into two rates.
The daily rate is the amount paid daily for gas connection. This covers the transmission and distribution fees.
The consumption rate is the amount paid for each unit of gas consumed. This covers the base gas price, carbon fees and AoG admin fee.
The daily rate and consumption rate are added together to establish a sub-total. GST is then applied to the sub-total, to generate a total cost.
See more information on pricing, including that for Time of Use (TOU) sites, on the NZGP website.
Pricing explained | New Zealand Government Procurement and Property(external link)
Advice for schools not eligible for the AoG contract
Buying gas through a contracted arrangement offers better value than non-contracted purchasing. Contracts provide greater price certainty and more preferential terms.
It is best to run a competitive process before signing a contract for the purchase of gas. A competitive process encourages suppliers to offer their best prices and terms.
When running a competitive process for the purchase of gas, be sure to:
- provide suppliers with accurate information about gas consumption
- select the contract that offers the best value over its full duration.
See Running a competitive buying process.
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