Your Electricity Contracts and Renewable Electricity Options Jane Wilson, Contract Services, DAIS 26 August 2003

Agenda Electricity Retail Contracts Green Power Purchase Opportunities Engineering Review Where to from here Contacts

Retail Electricity Contracts All sites including households in South Australia became contestable on 1 January 2003 State Government initiated centralised procurement process to establish contracts to support SA Government Agency requirements

Retail Electricity Contracts An innovative approach was taken which included collaboration with 66 Local Councils Largest multi-site contract undertaken in the National Electricity Market Benefits of approach included increased purchasing leverage and central management approach

Metered Supplies Contract Contract executed with Origin Energy in April 2003 for 3,600 small sites (100 GWh of energy) $34.7 million delivered cost to agencies and councils over 3 year term Estimated 3% increase on current costs Cost is 9% lower than AGL Standing Contract price

Unmetered Supplies Contract Contract with AGL currently being finalised 210,000 road, flood and traffic signal lights across the State (90 GWh of electricity) $4.3 million delivered cost over term 18% below AGL Standing Contract Prices 23% below current costs

Green Power Options Green Power purchase opportunities available under both the Metered Supplies and the Unmetered Supplies Agreements Decision to purchase resides with the Council or Agency Purchasing Green Power for Streetlighting part of Unmetered Supplies Agreement

Green Power Options AGL Unmetered Supplies Agreement provides flexibility for Green Power purchasing There are a range of options available relating to Green Power including: Product; Source of Energy; and Quantity.

Green Power Options Premium associated with purchasing Green Power due to: generation of Renewable Electricity Certificates (RECS); and cost of production. AGL Green Energy has a premium of approximately $44/MWh (4.4 c/kwh)

Green Power Options Benefits of Green Power purchasing include: Reduction in green house gas emissions and other pollutant impacts on the environment Assisting in the development of further renewable electricity generation

Road and Public Lighting Review 65 engineering hours consultancy to review contractual arrangements for supply and maintenance of lighting assets Consultation with Councils to determine where the hours will be used

Road and Public Lighting Review Focus of review will be on: Technological advances that assist in reducing environmental impacts and maintenance requirements; and Improvements in maintenance practices to reduce overall life cycle cost of road and public lighting.

Where to from here Discuss with your Council the costs and benefits of Green Power purchasing Contact Contract Services for further information Coordinate with Contract Services to arrange the purchase of Green Power from your retailer

Contact Us Jane Wilson Contracts Officer Phone 8226 5038 Email wilson.jane@saugov.sa.gov.au Mark Carey Manager, Strategic Contracts Phone 8226 5670 Email carey.mark@saugov.sa.gov.au