3 Electricity Costs
3.1 Subject to paragraphs 3.6 and 3.7 of Part 1 of this Payment Mechanism, the Electricity Costs Adjustment for each Month shall be calculated in accordance with the following formula:
(a) Where the Authority has entered into a contract and pays directly for the supply of electricity to the Apparatus:
(b) Where the Service Provider has entered into a contract and pays directly for the supply of electricity to the Apparatus;
Where: | ||
ETB | = | the relevant electricity tariff band as included under the current energy contract from Band 1 to Band Z, where Z is the number of bands under the current energy contract; |
ap | = | subject to paragraph 3.7, the actual price of electricity for the relevant Month in pence per KwH (for each ETB), including, without limitation, all fixed and standing charges, all associated metering and data management charges, the climate change levy (and any replacement levy or charge) and any premium charged for any specific terms and conditions related to the supply of electricity to the Apparatus; |
mac | = | the actual monthly electricity consumption in KwH (for each ETB) paid for by the Authority for the relevant month, as shown on the relevant electricity invoice or other documentation where consumption is not shown on the electricity invoice received by the Authority; |
afc | = | SFC - AltLFCA |
SFC | = | the standard forecast consumption (for each ETB) being the Adjusted Forecast Electricity Consumption (for each ETB) except for the duration of the Core Investment Programme Period in which case it shall equal ACFEC (for each ETB). Where the Month for which SFC is required is not a full calendar month, SFC shall be pro rated so that it only represents the consumption for the appropriate proportion of the calendar month; |
= | The Alternative Lighting Forecast Consumption Adjustment (for each ETB) as calculated in accordance with paragraph 3.2 below | |
ACFEC | = | [pfcm-1 + ((pfcm - pfcm-1) x ((ARp - PRm-1) / (PRm - PRm-1))) |
save where ARp is greater than or equal to PRp in which case ACFEC shall equal pfcp;]3 | ||
or | ||
[the Adjusted CIPP Forecast Electricity Consumption in KwH]4 | ||
Where: | ||
p | = | the actual Month of the Core Investment Programme Period for which the calculation of ACFEC is being carried out and, for the avoidance of doubt, the Month in which the Service Commencement Date occurs shall be considered Month 1 of the Core Investment Programme Period; |
m | = | the lesser of p or the Month in which PRm is closest to, but greater than, ARp; |
ARp | = | cumulative number of CIP Apparatus Removed by the Service Provider as Certified by the Independent Certifier pursuant to clause 13 (Inspection and Completion) of the Contract from the Service Commencement Date up to and including the last day of the Month p; |
PRm | = | cumulative number of CIP Apparatus the Service Provider proposes to have Certified as being Removed by the Independent Certifier pursuant to clause 13 (Inspection and Completion) of the Contract from the Service Commencement Date up to, and including, the last day of the Month m, as set out in Table 1 of Appendix 1 of this Payment Mechanism; |
PRm-1 | = | cumulative number of CIP Apparatus the Service Provider proposes to have Certified as being Removed by the Independent Certifier pursuant to clause 13 (Inspection and Completion) of the Contract from the Service Commencement Date up to, and including, the last day of the Month immediately preceding m, as set out in Table 1 of Appendix 1 of this Payment Mechanism, ; |
PRp | = | cumulative number of CIP Apparatus the Service Provider proposes to have Certified as being Removed by the Independent Certifier pursuant to clause 13 (Inspection and Completion) of the Contract from the Service Commencement Date up to, and including, the last day of Month p, as set out in Table 1 of Appendix 1 of this Payment Mechanism; |
pfcm | = | the CIPP Forecast Electricity Consumption for the Month m as shown in Table 1 of Appendix 1 of this Payment Mechanism; |
pfcm-1 | = | the CIPP Forecast Electricity Consumption for the Month immediately preceding m as shown in Table 1 of Appendix 1 of this Payment Mechanism; |
pfcp | = | the CIPP Forecast Electricity Consumption for the month p as shown in Table 1 of Appendix 1 of this Payment Mechanism; |
3.2 The Alternative Lighting Forecast Consumption Adjustment (AltLFCA) (for each ETB) shall be calculated from time to time whenever the Authority elects to require a change to the current lighting regime. Where during the Contract Period the Authority requires the Service Provider to make a change to the current lighting regime the value of afc shall be adjusted by the sum calculated in accordance with the following formula:
= | SwitchLA + DimLA | |
Where: | ||
SwitchLA5 | = |
|
s | = | the relevant value in KwH (as applicable) from Table [x] below dependent on the category of Apparatus from category 1 to N; |
n | = | the number of units of each category of Apparatus from category 1 to N for which the new regime relates; |
h | = | the number of hours for which each item of Apparatus from category 1 to N is switched off in excess of the period under the current switching regime |
Table [x]: Summary of variables used in the calculation of SwitchLA
Category of Apparatus | Apparatus description | Forecast energy saving in KwH for each hour that the item of Apparatus is switched off (s) | Number of Apparatus in that Category which are subject to the revised switching regime (n) | Number of hours that Category of Apparatus is switched off in excess of the period under the current switching regime (h) |
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
N |
And where: | ||
DimLA6 | = |
|
d | = | the relevant value in KwH (as applicable) from the Table [y] below dependent on the category of Apparatus from category 1 to N; |
n | = | the number of units of each category of Apparatus from category 1 to N for which the new regime relates; |
h | = | the number of hours for which each item of Apparatus from category 1 to N is dimmed in excess of the period under the current dimming regime; |
perc | = | the percentage of output that the Apparatus is dimmed to under the revised dimming regime (as a percentage of the output for that item of Apparatus under the original dimming regime) |
Table [y]: Summary of variables used in the calculation of DimLA
Category of Apparatus | Apparatus description[categories to be defined on a project specific basis] | Forecast energy saving in KwH for each hour that the item of Apparatus is dimmed (d) | Number of Apparatus in that Category which are subject to the revised dimming regime (n) | Number of hours that Category of Apparatus is dimmed in excess of the period under the current dimming regime (h) | Percentage of output that the Apparatus is dimmed to under the revised dimming regime (perc) |
1 | |||||
2 | |||||
3 | |||||
4 | |||||
5 | |||||
N |
3.3 Prior to any amendment to the switching or dimming regime the Parties need to agree the appropriate entries for Table [x] and/or Table [y]. The Council should advise the Service Provider no less than [ten (10)] Working Days in advance of the Monthly Monitoring Meeting the details of any changes it wishes to make to the lighting regime. The Service Provider shall provide the Council with details of the proposed impact of the changes (including but not limited to the appropriate entries for Table [x] and/or Table [y] for which the Service Provider shall give due consideration to BSCP 520 and other industry standard information) no less than [five (5)] Working Days in advance of the Monthly Monitoring Meeting. The Parties shall discuss and agree the changes required as a result of the proposed lighting regime at the Monthly Monitoring Meeting following which any changes can be implemented by the Service Provider. If the Parties are unable to agree the changes required they shall be determined in accordance with the Dispute Resolution Procedure.
3.4 In the event that one of the impacts of a change in the lighting regime is the likely breach of the terms of the current energy contract (including the likelihood that default prices may be incurred under such contract) the Parties will consider the extent of additional costs and may agree that it is appropriate to carry out an Electricity Market Test (in accordance with Schedule [ ] of the Project Agreement). Any additional costs incurred as a result of such Electricity Market Test, taking account of the costs already included in the Base Case for regular Electricity Market Tests required under the Project Agreement, shall be for the account of the Council.
[Note:
The drafting provided in respect of the AltLFCA adjustment assumes the Parties agree to calculate a forecast impact to consumption prior to the change in the lighting regime being implemented. However it is important to note that:
1. The method of measurement should be agreed by the parties prior to entering into contract. This is likely to be a contentious issue until the use of remote monitoring technologies has been agreed as an acceptable method for calculating electricity charges. This issue is currently being debated by UMSUG.
2. This method could be based on information on either the changes to 'actual' consumption or to 'forecast' consumption as a result of the introduction of dimming/switching regimes. Different measuring regimes will have different risk profiles which will need to be considered on a case by case basis. It is recommended that authorities take technical and commercial advice on this issue.
3. Where the measurement method is based on changes to 'actual' consumption the Council will need to be satisfied that the functionality of the remote monitoring technology and equipment enables the Service Provider and the Council to accurately analyse electricity consumption changes solely associated with dimming/switching and not with more general lighting performance including:
- the incidence of faults (outages etc);
- switch on and switch off times, and
- the broader performance of the electricity distribution system (power cuts, surges etc.)
Arrangements will also need to be negotiated where the remote monitoring technology fails, data is lost etc.
4. Where consumption is based upon forecasts this should be based on the consumption information contained in BSCP520 (as amended) or other recognised industry standards.
5. The Service Provider should also be under an obligation to report on other potential consequences that might be reasonably foreseeable as a result of the changes.
6. In both cases it is important that there is a simple, quick and objective method established as it is anticipated that dimming/switching will be used extensively throughout these contracts.]
3.5 Should the Contract commence with a switching off and/or dimming regime in place this will be reflected in the forecast electricity consumption in Tables 1 and 2 of Appendix 1 as at the date of the Contract and the adjustment AltLFCA will not be utilised for that particular switching off and/or dimming regime. The Authority will inform the Service Provider when the switching off and/or dimming period is to end, if the timing is any different to that in place as at the date of the Contract, and the Service Provider shall provide updated versions of Tables 1 and 2 of Appendix 1. All updated forecasts are subject to the review and approval of the Authority who reserves the right to request a revision or determination in accordance with the Dispute Resolution Period.
3.6 In the event of any change in the Balancing and Settlement Code Procedure 520 or the rates shown in such code, provisions of clause 25.7 (Change in BSCP 520) of the Contract shall apply.
3.7 To the extent that the Service Provider fails to fulfil its obligations in relation to paragraphs 14 of the Output Specification (Performance Standard 4) which results in an increase in the actual price of electricity then ap will be adjusted such that the Service Provider compensates the Authority for such increase.
3.8 Upon receipt of the Draft Monthly Payment Report to paragraph 4.2 of Schedule 9 (Electricity Procurement), any savings shall be calculated in accordance with the following formula:
Cs | = | Authority share of the Service Provider's energy consumption savings (if any) provided that where this is a negative value it shall be zero, calculated in accordance with the following formula: |
(((Z x fc) – ac) x wap) / 2 | ||
Where: | ||
Z | = | [0.95; |
fc | = | the annual total of afc, as defined in paragraph 3.1 of Part 1 of the Payment Mechanism in KWh for the relevant Payment Year; |
ac | = | the annual Actual Electricity Consumption in KWh for the relevant Payment Year; |
wap | = | the weighted average actual Electricity Costs for the relevant Payment Year in pence per KWh. |
3.9 If at the time ac and fc are calculated, ac is greater than ninety five per cent (95%) of fc then the provisions of this paragraph 3 shall not apply for that Payment Year.
3.10 The value of cs (if any) shall be paid pursuant to paragraph 2.5 of Part 1 of the Payment Mechanism as a one off annual adjustment to the Monthly Payment related to the Actual Monthly Payment Report in which cs is included.
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3 This option is more appropriate where the forecast energy consumption increases throughout the Core Investment Programme Period as it ensures that the Authority does not pay for additional energy where the Service Provider is behind schedule. It calculates the appropriate level of forecast consumption for the level of progress made up to a maximum of that planned in the Core Investment Programme.
4 This option is more appropriate where the forecast energy consumption decreases throughout the Core Investment Programme Period as it ensures that the Authority does not pay for additional energy where the Service Provider is behind schedule. It ensures the Authority pays for the forecast consumption as expected in the Core Investment Programme even if the Service Provider is behind schedule.
5 The Authority may wish to consider the introduction of a negative side to this calculation if they perceive there may be a need to increase the length of the lighting regime for any category of Apparatus
6 The Authority may wish to consider the introduction of a negative side to this calculation if they perceive there may be a need to 'dim up' the lighting regime for any category of Apparatus