Electricity Supply Agreement for Wholesale Market Rate
(for business customers on the Wholesale Market Rate pricing option only)
For contracts that are for a specified Contract Term:
- We agree to supply to you, and you agree to buy from us, all of the electricity requirements for the premises and points of supply set out in the Price Schedule for the contracted term specified in the Price Schedule, subject to clause 4 below.
- The prices and other costs associated with the supply of electricity under this Agreement are set out in the Price Schedule.
- Our Standard Terms and Conditions for Business Customers (“Standard Terms”) apply to the supply of electricity by us to the premises and points of supply set out in the Price Schedule, except as modified by this document. We have included a link to our current Standard Terms for your information. If there is any inconsistency between the terms of this document, and the Standard Terms, the terms of this document will prevail. For the avoidance of doubt clauses 17.1 and 17.3(a) of the Standard Terms (relating to contract termination) shall not apply to this agreement. This agreement includes this document, the Price Schedule and our Standard Terms (“together, Agreement”). Any conditions in your tender document, pricing request or any other communications from you that purport to apply to our Agreement and/or the supply of electricity and associated services to you are excluded and shall not apply unless expressly accepted in writing by Mercury.
- If you accept this Agreement, its terms will apply:
- if you are a current Mercury customer, for the contract term specified on the Price Schedule; or
- if you are currently supplied by another electricity supplier, from the Agreement start date or the date we receive your MARIA compliant meter data from your existing supplier, which ever is the later, until the end of the contract term specified on the Price Schedule.
At the end of that term, unless a new arrangement has been entered into, your electricity prices will be either our then current standard prices or, if you are designated a Market Linked Customer, the price or price averages (according to your meter type) on the New Zealand Electricity Market, plus applicable fees, charges, and GST(“Market Linked Prices”). A full description of how Market Linked Prices are calculated is available on request.
- If you accept this Agreement, its terms replace any prior arrangements that you may have had with us in relation to the supply of electricity to the premises and points of supply set out in the Price Schedule.
- If you are a current Mercury customer and do not accept this Agreement, your rates will change to our current standard prices or Market Linked Prices (as applicable) immediately or at the end of your current contract term, as appropriate.
- You accept that the wholesale market (spot) price payable will be the actual final prices on the New Zealand Electricity Market for the Grid Exit Point(s) from which the electricity is supplied (the ‘Spot Price’). The Spot Price can have considerable spikes and you understand that there could be significant price variances and accept the risk associated with this product. You also agree that if the Spot Price (the actual final price) is temporarily unavailable, then:
- we will calculate the amount payable by the relevant party on the basis of the provisional price for electricity
- determined under Part 13 of the Electricity Industry Participation Code 2010 (“Code”) for the relevant Grid Reference Point for that calculation period; and
- if there is no such provisional price, determined by us acting in good faith;
and the parties shall settle on the basis of the provisional price; and
- once the Spot Price (the actual final price) is available, we will calculate the actual amount payable by the relevant party. If the actual amount is different from the provisional amount, we will advise you of the extent of that difference and the identity of the party required to pay that difference to the other.
- Line Charges:This Agreement and the prices detailed in the Price Schedule do not include any network, lines or Transpower charges. Mercury invoices Line Charges as payable to your lines company. These charges may change from time to time.
- Early Termination Fee:You understand that taking supply from another energy retailer before the end of this Agreement is in breach of your Agreement with Mercury and that in the event of such breach (without prejudice to Mercury’s other rights and remedies), in addition to any outstanding moneys owing by you, you will be required to pay Mercury an Early Termination Fee to compensate Mercury for its losses, calculated as the greater of the following:
- 1.5 cents per kWh for the forecast electricity consumption from the date of the breach until the scheduled expiry of this Agreement, plus an administration fee of $140 per ICP (both plus GST, if any); or
- The value of the Contract Price (as specified in the Price Schedule) less the Energy Link Forecast* electricity prices (for the Grid Exit Point closest to your point of supply) multiplied by your forecast energy consumption from the date of the breach until the scheduled expiry of this Agreement (plus GST, if any). Where your forecast electricity consumption will be based on the average kWh you have used over either the most recent year or your last invoice multiplied by the days remaining until the scheduled expiry of this Agreement.
- Nothing in this clause shall limit your liability under this Agreement, including but not limited to, liability under any Hedge Price Schedule.
- Government Levies:In addition to the other charges and costs provided for in this Agreement, we may specify on each invoice an amount you must pay in respect of government levies that we are obliged to pay in relation to our supplying electricity to you. These are subject to change from time to time.
- Regulatory Events:We may change this Agreement where reasonably necessary for us to comply with the requirements or consequences of a Regulatory Event and change the prices detailed in the Price Schedule or any other amount payable under this Agreement in response to a Regulatory Event by an amount that we estimate to be reasonably apportioned amount equivalent to that imposed or increased as a result of the Regulatory Event. We may make the change or changes at any time by giving you at least 30 days’ prior notice.
For the purposes of this clause:
“Regulator” means the Commerce Commission or Electricity Authority, any court or tribunal of competent jurisdiction, any agency, authority, board, department, government, instrumentality, ministry, official or public or statutory person, any local or municipal government or governmental bodies or any other government agency whose activities impact on our business; and
“Regulatory Event” means:
*Energy Link is an independent service provider which forecasts short and long term electricity prices. If the applicable prices are not available from Energy Link, the forecast electricity prices may be obtained from any other independent third party.
- any enactment, amendment, replacement or repeal of any law; and
- the lawful making, amendment, clarification or withdrawal of any determination, order, directive, consent, advice, guidance or finding by a Regulator.