ordinary meeting of council to be held on tuesday, 18 july 2006

Ordinary Meeting <strong>of</strong> Council - 18 July 2006 7 / 5
Item 7
S02249
6 July 2006
CONSULTATION WITH OTHER COUNCIL DEPARTMENTS
Technical Services has consulted with Finance and Business Department in regard <strong>to</strong> participating
in the Group Council Tender.
SUMMARY
Council rolled its Street lighting in<strong>to</strong> the "777" contract for the retail supply <strong>of</strong> electricity in January
2004, which expired on 30 June 2006. Four options were investigated for the retail supply <strong>of</strong>
electricity;
• Option A- Default Street Lighting Rate from EnergyAustralia
• Option B- State Contracts Board "777" Offer
• Option C - Participate in 3rd Party Joint Tendering Effort
• Option D - Stage a Tender
Council did participate in a joint tendering effort on <strong>be</strong>half <strong>of</strong> 16 Councils, but no submissions were
received. Staging a joint tender is not favoured <strong>be</strong>cause <strong>of</strong> the costs and complexity involved.
Option A involving the State Contracts Board "777" is preferred in that it achieves considerable
savings relative <strong>to</strong> the default rate <strong>of</strong> approximately $1,923 per month.
The notion <strong>of</strong> contestability was considered. EnergyAustralia supply the three services <strong>of</strong> street
lighting, network and retail energy services.
While in practice, there is no effective contestability for street lighting services, in theory, street
lighting service is fully contestable for new assets, for example in new subdivisions. The provision
<strong>of</strong> network services is generally regarded as a monopoly service and competition is not expected
other than areas associated for new subdivisions.
Retail energy services are contestable in New South Wales, achieved by the use <strong>of</strong> accepted
pr<strong>of</strong>iling arrangements determined on the basis <strong>of</strong> an estimated electricity consumption pr<strong>of</strong>ile.
RECOMMENDATION
That Council enter in<strong>to</strong> the State Contracts Board "777" for the retail supply <strong>of</strong> electricity
for Street Lighting for a period <strong>of</strong> three years, and that the General Manager <strong>be</strong> the
delegated authority <strong>to</strong> sign the contract.
Ian Taylor
ACTING MANAGER DEPOT SERVICES
Greg Piconi
DIRECTOR TECHNICAL SERVICES
Attachment: Contract 777 Price List - 636680
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