As per the Electricity Supply Agreement, entities may incur a Shortfall Charge if the Actual Electricity Consumption is below the Agreed Minimum Annual Consumption in a Contract Year.

Liable entities may incur further charges if they fail to pay the Shortfall Charge. Liable entities that do not pay their Shortfall Charge by the payment due date may be charged a late fee on the amount they are liable for and may be subject to debt recovery action.

When does a Shortfall Charge apply?

As per clause 10.2 in the Standard Terms & Conditions, entities are liable for a Shortfall Charge when:

  • The Peak Combined Consumption in a Contract Year is less than the Peak Minimum Annual Electricity Consumption
  • The Off Peak Combined Consumption in a Contract Year is less than the Off Peak Minimum Annual Electricity Consumption

How is the Shortfall Charge calculated?

As per clause 10.2 in the Standard Terms & Conditions, the Shortfall Charge is calculated annually, at the end of the final Billing Period for each Contract Year. The Shortfall Charge comprises of:

  • Peak Shortfall Charge = Shortfall Electricity Price ✕ Peak Shortfall Quantity
  • Off peak shortfall charge = Shortfall Electricity Price ✕ Off Peak Shortfall Quantity

Where the:

  • Shortfall Electricity Price is the price per kWh specified as such in the Commercial Terms of the Contract.
  • Peak Shortfall Quantity is the difference between the Peak Combined Consumption for the Contract Year and the Peak Minimum Annual Consumption.
  • Off Peak Shortfall Quantity is the difference between the Peak Combined Consumption for the Contract Year and the Peak Minimum Annual Consumption.