Department of Health

Energy purchasing options and contracts

Key messages

  • Health Purchasing Victoria (HPV) has contracted collectively for electricity and natural gas on behalf of public hospitals and health services.
  • The bulk LPG (liquid petroleum gas) purchasing guide gives information about the types of issues that health services should consider when tendering for LPG.

If health services are not required to participate in a contract procured by Health Purchasing Victoria (HPV) they are responsible for purchasing their own energy and are encouraged to access competitive retail contracts.

The options for Victorian health services to purchase energy are:

  • participate in the contracts procured by Health Purchasing Victoria (HPV)
  • access a state purchasing contract (SPC) procured by the Department of Treasury and Finance
  • participate in private buying groups, if not a public hospital or health service
  • tender for or request market pricing offers directly from energy retailers.

If a buying group or individual agencies are developing their own tender for the supply of electricity or gas, they should consider:

  • all fees and charges
  • contract management
  • customer service
  • electronic provision of data, including interval meter data
  • bill validation and resolution of billing errors
  • transition of supply
  • options to extend
  • emergency contacts
  • continuity of supply.

Electricity and gas purchasing contracts

HPV has contracted collectively for electricity and natural gas on behalf of public hospitals and health services. Other publicly funded health-related services may be able to access HPV agreements on a case-by-case basis in line with HPV’s access policy. Statewide contract agreements currently in place are:

  • HPVC2014-087 Electricity (Large Sites >160 MWh)
  • HPVC2015-066 Natural Gas (Large Sites >1TJ).

For supply to smaller sites without the required interval meters, health services are encouraged to discuss their options directly with HPV.

The Victorian Government has statewide contracts for the supply of electricity and natural gas that can be accessed by public health services. More details are available from the Victorian Government Procurement Board.

LPG bulk purchasing guide

The bulk LPG (liquid petroleum gas) purchasing guide, which is available from the department, gives general information on the market and the types of issues that health services should consider when tendering for LPG. Health services need to seek multiple tenders for all contracts and to clearly specify hospital requirements.

The Energy for the Regions Program will create access to reticulated natural gas from a compressed natural gas (CNG) delivery solution in 11 regional towns, providing an alternative to LPG for facilities in those towns. Facilities using LPG that are within the proposed new network zones should evaluate the option of transitioning to the piped natural gas supply. HPV can assist.

Reviewed 10 November 2023

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