The inherent risks of the project and the extent to which
these risks are being passed onto Synergy.
The existence of significant barriers to meeting Synergy’s requirements.
Principles for Content of an EOI
The overriding principle is that an EOI should contain adequate information to
demonstrate that the supplier is capable of meeting Synergy’s requirements, and
to allow Synergy to proceed with the assessment. Potential Suppliers should note
the following in relation to the EOI:
Voluminous documentation is not required and may hinder the
Detailed technical specifications are not required.
The underlying principle is that information is required to be
provided to the extent it is necessary to allow the assessment to
be carried out.
Potential suppliers are advised to familiarise themselves with the information,
requirements and conditions that pertain to this invitation. The potential supplier
can submit an EOI by completing the prescribed form set out in this invitation,
preparing the required information and lodging it in the specified manner with the
Manager, Power Procurement at the address indicated no later than the required
lodgement date and time. A potential supplier that duly submits an EOI is a
If the respondent is a consortium, joint venture or other such association of
parties, all participants must be named and a representative nominated as an
authorised single point of contact for the respondent.
An EOI submitted by a respondent will not constitute an offer contractually
binding on the respondent, but will form part of the basis upon which Synergy will
select a those respondents which will be invited to submit a tender.
The respondent submitting an EOI will nevertheless be bound by the terms and
conditions in this invitation and when submitting the EOI is taken to have
warranted to Synergy that:
the information contained in the EOI is true, accurate and not misleading;
the respondent will inform Synergy immediately if at any time during the
process it becomes aware of any fact, matter or circumstance that makes,
or could reasonably be expected to make, any part of its EOI untrue,
inaccurate or misleading; and
the respondent is acting solely on its own behalf and not as trustee or
agent for (or otherwise for the benefit of) any other person (other than
any consortium, joint venture or other such association of parties notified
to Synergy by the respondent).
Information required in an EOI response by a respondent
Respondents, in submitting responses to this invitation, are required to submit
responses to the following items as set out in the tables in Annexure A to this
Power project operating experience
Power project development experience (if a new
power plant is proposed)
Indicative proposal (including pricing)
Respondents are required to respond to each item (other than item 4 in the case
that a new power plant is not proposed). Where relevant, a respondent that is a
consortium, etc. should submit responses on behalf of each participant. As the
responses to the items below will form part of the EOI assessment process,
Respondents are advised that a failure to respond adequately to all of the items
listed below may result in them not being invited to participate in the tender
Comments on ESC
Respondents are also invited to comment on the ESC however proposed changes
should be limited in scope. It is unlikely that any major changes in the legal or
commercial structure of the ESC will be made prior to its issue in the tender
Copies of the ESC are available to potential suppliers by following the process
given in the section of this invitation on reference documents.
Synergy also draws the attention of potential suppliers to the ability to comment
on the ESC during the tender phase as set out in the section below on
assessment of tenders.
Two (2) hard copies of the EOI and all attached documents must be placed in a
The sealed package must also include an electronic version of the complete EOI
on a CD ROM. The electronic version should be in Microsoft ® Word 2000 format
or, if the Respondent does not have access to a copy of certain documents in
Word, those documents may be provided in Adobe 8.
The sealed package containing the EOI must be clearly marked:
Expression of Interest – Supply Procurement 2008
Manager, Power Procurement
228 Adelaide Terrace
PERTH WA 6000
The sealed package containing the EOI should be lodged in person at the Ground
Floor Reception, 228 Adelaide Terrace, Perth and should be lodged on:
Tuesday, 11, March 2008, between 8:30 am and 10:30 am WDT.
Synergy reserves the right to modify the lodgement time and date as it sees fit
and at its sole discretion, and to accept late lodgement by all or any potential
Selection for tender phase
Those respondents that, on the basis of the available information, meet Synergy’s
requirements may be invited to enter into an RFT Agreement with Synergy and
participate in the tender phase of Supply Procurement 2008. The RFT Agreement
is available on Synergy’s website; see section 4 on reference documents.
Synergy reserves the right to not invite potential suppliers to
participate in the tender phase if they have not demonstrated in their EOI that
their tender can be expected to be capable of acceptance by Synergy. Details of
the requirements for the tender phase are given in the next section.
Synergy reserves the right not to proceed to the tender phase, and also to select
tenderers that did not lodge an EOI.
Note: This is a brief outline of the tender phase, as currently envisaged.
Synergy will provide full details to those potential suppliers that are
selected to participate in the tender phase and execute an RFT
Synergy intends to use the following process:
Selected potential suppliers will be invited to participate in the tender
process. This is to be on a date yet to be determined but likely to be
issued in early April 2008.
The first step is for the relevant potential supplier to execute an RFT
Agreement with Synergy.
On execution of the RFT Agreement, the relevant tenderer will be issued
the request for tender.
During the tender process each tenderer will have the opportunity to enter
into discussions with Synergy to clarify the scope of the process, the
tender requirements and the drafting of the ESC.
Synergy will, if it considers this appropriate in the circumstances,
communicate outcomes, from these discussions of a general and non-
confidential nature to all tenderers.
Tenders will be due on a date yet to be determined but likely to be during
Assessment of Tenders
In accordance with the Ministerial Direction:
Synergy must notify tenderers that one key objective of the acquisition of
Capacity Credits and the electricity by Synergy is to minimise the cost of
Capacity Credits and the electricity to be acquired by the Synergy from the
preferred tenderer(s) (clause 2(c) of the Ministerial Direction).
Tenderers must submit the ESC as part of their tender with any
amendments required by them marked on it and Synergy must advise
tenderers that amendments should be minimal (clause 2(d) (ii) of the
The overall approach to assessment of tenders by Synergy is intended to seek to:
minimise the risk-adjusted cost to Synergy of Capacity Credits, associated
electricity and/or environmental rights to be provided; and
maximise the value and competitiveness of Synergy’s supply portfolio.
In this context, Synergy desires to build up a portfolio of supply contracts with
different durations to meet its Capacity Credit, electricity and environmental
rights requirements going forward.
Some key aspects of the assessment process are intended to be:
Scenario based assessment, in recognition of the many external factors
(including the cost of carbon).
Explicit assessment of the impact on Synergy of the supply term of each
tender. In the context of the overall approach to assessment of tenders,
and Synergy’s supply portfolio needs, a shorter supply term will generally
be preferred. Synergy will consider supply terms
proposed by tenderers and this matter will be discussed with each
tenderer during the process.
Explicit assessment, in the context of the overall assessment of tenders
and Synergy’s supply portfolio needs, of the impact on Synergy of the
quantum of Capacity Credits and associated electricity offered in each
tender. Synergy will consider tenderers’ proposals and this matter will be
discussed with each tenderer during the tender phase.
Assessment of the inherent and other risks in the proposal and the extent
to which these risks are mitigated by the tenderer or are passed on to
Explicit assessment of the impact on Synergy of other costs that arise in
the WEM as a result of proposed projects (for example, the impact of a
capacity surplus in the WEM; a change in the Reserve Capacity
Requirement and any impact on energy costs).
Appointment of Preferred Tenderers
As indicated above Synergy may appoint more than one preferred tenderer and
that these may be progressively appointed commencing from early August 2008.
The target is to conclude all appointments arising from Supply Procurement 2008
by the fourth Quarter 2008.
This is subject to Synergy’s right, at its sole discretion, not to appoint any
It is intended that offers which commence in the 2010/11 Capacity Year, if any,
will be dealt with first, in particular any new facilities that are seeking IMO
4. Reference documents
Each potential supplier should make its own enquiries and satisfy itself that it has
adequate knowledge of the WA electricity industry including industry structure,
government policy and legislation, and the structure of the WEM.
The following lists of reference sources are not intended to be exhaustive.
Particular organisations that may be helpful in this regard are:
Office of Energy
Independent Market Operator
Economic Regulation Authority
The following is a list of documents that may be helpful, and a source for each
document is given
. In case of difficulty, potential suppliers may contact the
Manager, Power Procurement:
Overview of the Vesting arrangements
Annual Displacement Statement of Opportunities, 30 November 2007
Electricity Supply Contract (ESC)
On request from the Manager, Power Procurement. To receive a copy of the ESC
potential suppliers will be required to enter into the confidentiality agreement referenced
Supply Procurement 2008 presentation
On request from the Manager, Power Procurement
The documents and URL are given in good faith and were current when this invitation was prepared.
Documents you may be interested
Documents you may be interested