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Frequently Asked QuestionsAbout LGP: Background & HistoryWho is LGP? LGP is a Perth based renewable energy company that pioneered the development of power stations, using as fuel the methane emissions of landfill waste sites. Our first site, at Red Hill, began operation in 1993 and since then we have developed additional landfill gas power stations at Canning Vale, Kalamunda and Tamala Park.
We currently operate 10,000kW of landfill power stations and are pursuing further opportunities overseas.
We sell our electricity to customers connected to Perth's electricity network.
Who owns LGP?
LGP is a private company owned by ACE Holdings Pty Ltd, a Western Australian company.
How many people does LGP employ? Our Board of Directors comprises three Directors and a Company Secretary. Two of the directors are senior executives of our majority owner, WesTrac. The third director is shareholder and former Managing Director. We have a compact team of around 20 people, including a 2-person sales team, all led by a 5-person management team, which is itself led by the CEO.
What is LGP's track record? In addition to our four existing power stations, LGP developed a landfill gas station at Challenge Stadium in Perth's western suburbs. This operated for 8 years before being decommissioned in 2002 due to exhaustion of the fuel.
We initially sold all our output to the then State-owned utility but, since 2001, LGP has also sold to private customers, many of whom we have supplied for more than five years.
We specialise in the supply of Renewable Energy to Small to Medium Enterprises and currently supply some 65,000,000 units per year to over 150 loads operated by 20 Customers. Our Customers include private companies, local governments and State government agencies.
We also supply non-renewable electricity to customers seeking best price.
LGP's Products & ServicesWhich customers does LGP supply? LGP supplies only customers consuming in excess of 160,000 kWh per year (approximately $2,000 per month) and connected to the South West Interconnected Network (between Albany, Geraldton and Kalgoorlie).
LGP is prevented by Government regulations from supplying residential customers, and more generally those consuming less than 50,000 units per year (approximately $625 per month). These customers do not have a choice of electricity supplier and must be supplied by the State-owned Electricity Retail Corporation, Synergy.
In addition, LGP chooses not to supply customers consuming in the range of 50,000 to 160,000 units per year (approximately $625 to $2,000 per month), because of the high cost of compliance with the regulations for supplying these customers. What electricity products does LGP offer?
LGP specialises in the provision of Renewable Electricity but also supplies non-Renewable electricity. There is no upper limit to the size of customers that LGP can supply.
How reliable is electricity supplied by LGP?
The reliability and quality of electricity supplied by LGP is precisely the same as that supplied by any other electricity supplier. This is because the electricity network is “interconnected,” which means that all generators supply all loads, albeit to differing degrees according to their proximity to the generator. The quality and reliability of supply depend entirely on the management of the network by Western Power, who are responsible for “keeping the lights on” and repairing faults.
Consequently, LGP’s customers take electricity from the electricity network exactly as they have always done and are not physically supplied by LGP’s generators, but by the network as a whole. A behind-the scenes and after-the-fact transaction then takes place whereby the Independent Market Operator compares the output of LGP’s generators with the consumption of its Customers and reconciles the differences by charging LGP for “top-up” (when its generators are under-producing) and paying LGP for “spill” (when its generators are over-producing). This process is called “energy balancing” and ensures that electricity is available to the customer at all times, irrespective of what LGP’s generators are actually producing. TechnicalFrom where does LGP get its electricity? We source our renewable electricity from our own power stations and supplement it with non-renewable electricity from Verve Energy (the State-owned generator)
We also purchase from the Wholesale Electricity Market via energy balancing, as described above.
Will LGP need to install its own poles and wires in order to supply its customers? No. The State Government has appointed Western Power to manage the electricity network's business as a "natural monopoly" according to rules that ensure that all electricity retailers and generators have equal access to the networks for the purpose of supplying Customers, and all pay the same regulated charges.
Is any special equipment required for a customer to take supply from LGP? Yes, but many customers already have it. Sophisticated electricity meters capable of measuring consumption every 30 minutes are required, plus a mobile internet connection to allow anytime remote reading of the meters.
If this is not already installed it will be arranged and paid for by LGP on the Customer's behalf.
If I need new meters, will I suffer a supply interruption while they are installed? If a new meter is needed, yes you will. However, this should be less than 15 minutes and at a time mutually agreed with Western Power. Otherwise, there will be no interruption.
Will Western Power discriminate against me if I take supply from LGP, for example, by not repairing faults as quickly as they otherwise would? No. It is illegal for them to do this. Moreover, Western Power's staff usually will not know which customers are supplied by which retailers and of course, Western Power is a highly professional organisation dedicated to delivering a high standard of service to all customers.
If I take supply from LGP will I receive priority supply during a system emergency? No. The regulations require that all network users share the responsibility of a "system emergency" under the management of the System Manager, which is a part of Western Power. In the event of a shortage of electricity, the System Manager will determine, in accordance with formal procedures, whether electricity rationing is necessary and, if so, which customers will have their supply turned off, when, and how long for.
AccountsHow does LGP charge for electricity? We keep pricing as simple as possible by basing it on the "Gazetted Tariffs" published by the State Government and which are offered by the State-owned Electricity Retail Corporation, Synergy. So that our customers always know exactly how much they are saving, we offer a fixed discount off all parts of the tariff, so the saving percentage is guaranteed, including when the Gazetted Tariffs are adjusted from time to time by the government.
In the event of the Customer requiring Renewable Energy, we would also add a percentage premium, depending on what proportion of Renewable Energy is required.
How frequently will my electricity account invoice be issued? Unless special arrangements are agreed, the account invoice will be issued monthly in accordance with the meter reading schedule of Western Power. However, special read dates may be mutually agreed.
Can I choose my invoice date? Yes, you can. We currently offer standard dates of 7th, 10th, 15th and 25th, but other dates can be arranged by mutual agreement. In some circumstances there may be an additional charge for non-standard dates, but if so this will be agreed beforehand.
Are there any other charges? In most cases, we charge only the Gazetted Tariff adjusted by the Discount and Premium percentages. However, some customers require additional services, such as reading of sub-meters or non-standard invoice dates. In these cases, an additional charge may apply but, if so, it will be clearly specified in the electricity supply agreement.
Does LGP have the right to disconnect my electricity for non-payment of the bill? Yes it does. In practice, LGP follows the Code of Conduct for the supply of electricity to Small Use Customers, even though we do not supply such small customers. The Code is designed to protect small customers with little bargaining power and provides for disconnection to occur at least 24 business days after dispatch of an unpaid invoice, provided that a Reminder and Disconnection Warning are first issued in accordance with the Code.
We would expect to only ever disconnect customers that not only refused to pay but also refused to cooperate with us in meeting their obligations. Regrettable though it is, consuming electricity with no intent of paying for it is theft and if left unchecked, in the extreme case, is the theft of our people's jobs.
What do I have to do in order to receive an electricity supply proposal from LGP? Please contact Dr. Steve Gould at our Retail Office on 0412 508 291 or email
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Renewable EnergyWhat is Renewable Electricity? In essence, renewable electricity is electricity that is produced using a fuel source that is renewable. Wind and biomass (such as burning trees) are important examples; other examples include solar and landfill gas. Further information can be obtained from the Office of the Renewable Energy Regulator at: www.orer.gov.au and our page What is Renewable Electricity
Can I buy Renewable Electricity from LGP? Yes. You can choose any percentage of your total electricity requirement to be supplied as Renewable in return for paying a Premium relative to our non-Renewable prices.
Are LGP's power stations registered with the Office of the Renewable Energy regulator? Yes. Further details can be obtained at: www.orer.gov.au/publications/baseline.html
Also, please see the map at: www.ga.gov.au/map/orer
This allows the user to "zoom in" on particular power stations by clicking on the geographical areas of interest. 23. Is there anything else I need to know about Renewable Electricity? Yes - lots! Please see our separate page What is Renewable Electricity for a fuller description. As with most products there are a variety of brands and quality levels. LGP's offering is specified LGP's product specification.
How do I find out the current level of the Discounts and Renewable Energy Premium? These vary from time to time and from customer to customer. For current details, please contact us at the addresses given below.
LegalHow are my rights protected if I take an electricity supply from LGP? All electricity retailers are required to hold a Retail Licence and to comply with all the laws governing the electricity market. We will also enter into a standard supply agreement specifying our mutual rights and obligations.
In essence, LGP agrees to supply all the required power at the time it is needed and the customer agrees to pay on time for all the electricity consumed according to the agreed price. Although electricity supply agreements are generally very complicated (see for example the agreements for Small Use Customers on the website of the Economic Regulation Authority available at www.era.wa.gov.au/2/249/51/standard_form_c.pm, we've sought to keep our agreement very simple and base it on the "Code of Conduct for electricity supply to Small Use Customers" available at http://www.era.wa.gov.au/3/452/51/code_of_conduct.pm, which regulates the behaviour of retailers and their agents so as to protect small customers with little market power. In particular, we seek to resolve any complaints by following this Code.
If I switch to LGP and then decide I've made a mistake, what are my rights? We believe that "good ethics is good business" and will do everything we can to resolve any problems. The main areas where things can go wrong are in the administration of the account for example, issuing it late or getting it wrong. We normally issue invoices within three working days of receipt of consumption data.
If you think we've got it wrong, we'll double-check everything and, if you're still not happy, invite you to our office to see how we actually produce your invoice and you can check it with us there and then.
As explained, we can't affect the physical delivery of electricity because that is controlled by Western Power. If there are any supply problems however, we'll enthusiastically represent your case to Western Power.
How can I obtain a copy of the Code of Conduct for the supply of electricity to Small Use Customers? You can obtain an electronic copy from the Economic Regulation Authority website at: www.era.wa.gov.au [use the link above.
MiscellaneousWhat is the Wholesale Electricity Market? The Wholesale Electricity Market is literally a market in which participants can buy and sell electricity on a 30-minute basis. If they have more than their customers needs, they can sell the surplus and if they have too little, they can buy the deficit.
How can I obtain further information? Please contact us at: Head Office - General Enquiries | Retail Office - Sales Enquiries | Business Development or: Phone: 08 9475 0144 Fax: 08 9475 0173 Email:
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You may also wish to visit:
The Office of Energy website at www.energy.wa.gov.au The Economic Regulation Authority website at www.era.wa.gov.au The Independent Market Operator website at www.imowa.com.au Western Power's website at: www.wpcorp.com.au |
