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Process 2008 Updates

Process Update #3 – 5 November 2008

Synergy has completed the tender phase of the Supply Procurement 2008 process, and expects to announce the successful tenderers during the December 2008 quarter.

Process Update #2 – 4 March 2008

When the EOI indicates in the section on tender assessment that Synergy generally prefers shorter supply terms, what does that mean?

Synergy recognises that the financing of new generating plant involves a trade-off between cost of capital and the duration of the initial supply contracts.  In building its overall supply portfolio, Synergy presently expects that it will obtain benefits from shorter duration supply contracts of the order of (say) 4 to 5 years - where these can be offered competitively.

How much energy is required with the Capacity Credits to be displaced?

Synergy intends through Supply Procurement 2008 to displace a portion of its load presently supplied under the Vesting Contract.  However, it is not necessary for potential suppliers to artificially constrain each individual offer to match the average vesting level.  Accordingly, the level of Synergy’s electricity requirements are not stipulated.

Naturally, for renewable generators the RECs and other environmental rights depend upon the actual quantum of energy generated, so relatively higher levels of electricity would be expected in that case.

The level of electricity to be contracted can be discussed with tenderers during the Tender phase.

Synergy has today launched an invitation for expressions of interest in the WA Wholesale Electricity Market for at least 200 MW of Capacity Credits, electricity and/or environmental rights.

The invitation forms part of a Displacement tender process for Capacity Credits commencing from either the:

• 2010/11 Capacity Year or the 2011/12 Capacity Year, if supplied from renewable sources; or
• 2011/2012 Capacity Year, if supplied from non-renewable sources.

Synergy seeks at least 200 MW of such Capacity Credits for 2011/12, although proposed suppliers may make offers for only part of Synergy’s requirements.

The invitation and associated documents can be downloaded using the links below:

• ‘Expression of Interest – Invitation to potential suppliers’
• Word version of ‘Annexure A’ for the convenience of potential suppliers intending to submit an EOI.
• Confidentiality Agreement for execution by potential suppliers wishing to receive a copy of the Electricity Supply Contract.
• The ‘RFT Agreement’ for executed by potential suppliers invited to participate in the tender phase of the process.  This agreement is available for information only at this stage of the process.