Form of Offer Letter to New High Tension Consumers who have applied for a
Distribution Connection
[Date]
Our Ref: Application No. [•]
[Consumer’s name and address]
Attn: [•]
Dear Sirs
Offer of Transmission Services for High Tension Connection
Thank you for your application dated [•] for Transmission Services (the “Application”).
This Offer Letter, together with the attached document entitled “Standard Terms and Conditions for
Transmission Services for Extra High Tension and High Tension Consumers” (the “Terms and
Conditions”), comprises the terms and conditions on which SP PowerAssets Limited (UEN:
200302108D) (the “Transmission Licensee”) is offering its Transmission Services to you (the
“Consumer”) in respect of the premises located at [insert address of the Consumer’s premises] (the
“Premises”). Please note the following:
SP PowerGrid Limited ("SPPG") (UEN:200306959Z) is the authorized agent acting for and on behalf of
the Transmission Licensee in the management and operation of all aspects of the regulated transmission
and distribution business, including any dealings and correspondences pertaining to the Transmission
Licensee’s performance, rights and obligations in this agreement.
SP Services Limited (UEN: 199504470N) shall act as the agent of the Transmission Licensee in the
calculation billing and collection of Transmission Charges payable in accordance with the terms of this
agreement.
Unless otherwise indicated, capitalised words and expressions used in this Offer Letter shall have the
meanings ascribed to them in the Terms and Conditions.
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The High Tension Connection of your Premises to the Distribution Network
1.1
[You [are]/[are not] required to provide [number and type] Substation(s) for the proposed
Connection.] [The completed Substation(s) must be handed over to the Transmission Licensee
no later than ten (10) weeks before the Target Date] or
[The existing substation(s) shall [remain]/[be modified in accordance with the Endorsed
Substation Plan at your cost.]] or
[Your High Tension Connection to the Distribution Network shall be [replaced by a new Service
Connection]/[re-established by way of an existing Service Connection].]
1.2
The Service Connection to your Premises shall:
(a)
be made up of [number and type] service cable(s);
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(b)
be supplied, installed and maintained by [the Transmission Licensee]/[you];
(c)
be at [22kV]/[6.6kV]
1.3
The Transmission Licensee will notify you in writing of the Target Commencement Date and the
Target Completion Date for the Works after consultation with your LEW.
1.4
The Target Date for Energisation shall be [•].
2
Connection Charges
2.1
The Connection Charge is $[•], inclusive of GST.
2.2
You shall pay the Connection Charge to the Transmission Licensee in full before the
Transmission Licensee commences the Works.
2.3
The Transmission Licensee shall not be obliged to meet the Target Date unless the payment is
made at least eleven (11) weeks before the Target Date for Connections where substations are
required, and at least seven (7) weeks in all other cases.
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Security for Transmission Charges
If you are not purchasing electricity from a retailer who offers a Consolidated Billing Service, the
amount of security which the Transmission Licensee will initially require from you to secure your
Transmission Charge payment obligations will be calculated and notified to you by SP Services
Limited. The security must be paid to SP Services Limited before the Target Date.
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Matters arising from the Works
4.1
The Transmission Licensee shall strive to achieve completion of the Works by the Target
Completion Date. However, where any delay in the completion of the Works, any defect or
deficiency in the Works or any delay in the issue or renewal of any Consent, is outside the
reasonable control of the Transmission Licensee, the Transmission Licensee shall not be
responsible for or liable to you in respect of such delay, defect or deficiency.
4.2
In the event that:
(a)
you notify the Transmission Licensee that the Connection is no longer required prior to
completion of the Works; or
(b)
this Agreement is terminated pursuant to paragraph [9.3] of this Offer Letter, or clause 16 or
clause 21 of the Terms and Conditions, prior to completion of the Works,
the Transmission Licensee will determine, within a period of four (4) months from such notification
or termination, the cost of any Works commenced, deduct this cost from the Connection Charge
and refund the balance (if any) to you.
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5
Contracted Capacity
Your minimum Contracted Capacity for the Five Year Period shall be:
(a)
in respect of the first year of the Five Year Period, [•] kW; and
(b)
in respect of the balance of the Five Year Period, [•] kW.
For the avoidance of doubt, and without prejudice to clause 12.8 of the attached Terms and
Conditions, you shall not be allowed to reduce the declared Contracted Capacity upon the signing
of this agreement, notwithstanding the fact that the energisation of the new supply has still not
taken place.
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Replacement of existing substations
6.1
If a new substation is required under paragraph 1.1 to implement the Connection, any existing
substation servicing the Premises shall not be decommissioned until the new replacement
substation(s) have been commissioned by the Transmission Licensee.
6.2
After the Transmission Licensee has:
(a) decommissioned the existing substation which is no longer required;
(b) removed its Equipment from the decommissioned substation; and
(c) returned the decommissioned substation to you,
you shall be responsible for demolishing the decommissioned substation at your own cost.
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Temporary High Tension Connections
(Paragraph 7 should only be retained where the Transmission Licensee has agreed to provide a
temporary Connection to a Consumer. Paragraph 5 “Contracted Capacity” shall be applicable, but
without the Five Year Period.)
7.1
The Transmission Licensee shall have exclusive use of the Temporary Substation, together with
the site on which it is located, and you shall be deemed to have granted to the Transmission
Licensee an irrevocable licence at all times to have full and unrestricted use thereof and free
access thereto.
7.2
The Transmission Licensee shall install the necessary cables, supply lines, Switchgear
Equipment and transformers for the Temporary Substation. You shall pay the Transmission
Licensee a hire charge (the “Hire Charge”) of $[•] per month for the use of this equipment, such
payment to commence from the first day of the calendar month immediately after the equipment
is installed, regardless of whether the Temporary Substation has been Connected to the
Transmission System and shall cease to be payable on the last day of the calendar month in
which the temporary Connection is De-Energised. The Hire Charge will include the cost of
insuring the equipment and GST.
7.3
The term of the temporary Connection shall be twenty four (24) months. You shall notify the
Transmission Licensee in writing no later than thirty (30) days prior to the expiry of the term for
the temporary Connection whether you wish to extend the term of the temporary Connection.
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Upon receipt of a request from you for an extension of the term of the temporary Connection, the
Transmission Licensee may (at its discretion) extend the term of the temporary Connection for a
defined period.
7.4
The Transmission Licensee shall De-Energise and Disconnect the temporary Connection upon at
least one (1) month’s notice from you, or upon the expiry of the term of the temporary
Connection, whichever is the earlier.
7.5
Upon termination of the temporary Connection, you shall allow the Transmission Licensee
reasonable access to the Premises for the purpose of Disconnecting and decommissioning the
temporary Connection and the Temporary Substation.
8
Additional terms
The Transmission Licensee’s offer is subject to the additional terms below:
[SPPG to insert with reference to its schedule of special terms.]
9
Change in circumstances
9.1
The offer of Transmission Services set out in this Offer Letter is based on the following
assumptions:
9.2
(a)
that your Connection requirements are those specified in the Application; and
(b)
that (where applicable) any existing Service Connection which may be used to implement
the Connection is in a serviceable condition and no Works are required in respect of the
same.
If the Transmission Licensee reasonably determines that any one of the above assumptions
cannot be, or is unlikely to be, met, the Transmission Licensee shall be entitled to deliver to you a
revised offer (the “Revised Offer Letter”) which may include revisions to:
(a)
the Connection Charge;
(b)
the Target Date; and/or
(c)
the method of implementing the Connection,
referred to in this Offer Letter and prescribe a Target Commencement Date and a Target
Completion Date for any Works required.
9.3
If you do not accept the revised offer set out in any Revised Offer Letter by the date prescribed in
such letter, then the Transmission Licensee would not be able to comply with its obligations in
relation to the Service Connection Works to be undertaken in this Agreement. In the event of
your non-acceptance, the Agreement shall be deemed to be terminated on the date prescribed in
the Revised Offer Letter.
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Acceptance of this offer
The offer set out in this Offer Letter may be accepted by your countersignature and return of the
attached duplicate of this Offer Letter to SP Services Limited not later than two (2) months after
the date of this Offer Letter. Once you have countersigned and returned the duplicate Offer
Letter together with the payment for Connection Charges pursuant to clause 2.1 to SP Services
Limited within the stipulated time period, this Offer Letter and the Terms and Conditions will
comprise a binding agreement between you and the Transmission Licensee. This offer will lapse
if it is not accepted by you within the stipulated time period.
Signed by [state name of signatory]
Authorised Representative
SP POWERASSETS LIMITED
_________________________________________________________________________________
[The text below will only appear on the duplicate Offer Letter to be sent with the Offer Letter to the
Consumer]
To:
SP Services Limited
10 Pasir Panjang Road, #03-01, Mapletree Business City, Singapore 117438
It is hereby acknowledged that by countersigning this duplicate copy of the Offer Letter and returning it to
SP Services Limited, this Offer Letter and the Terms and Conditions shall have the effect of a binding
contract between the Consumer and the Transmission Licensee from the date written below.
[In the case of a natural person]
Signed by:
_____________________________
(Name)
_____________________________
(NRIC number)
_____________________________
(Date of signature)
_____________________________
Witnessed by:
_____________________________
(Name)
_____________________________
(NRIC number)
_____________________________
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[In the case of a body corporate]
Signed by:
_____________________________
for and on behalf of [insert name of body corporate]
(Name)
_____________________________
(Designation)
_____________________________
(NRIC number)
_____________________________
(Date of signature)
_____________________________
Witnessed by:
_____________________________
(Name)
_____________________________
(Designation)
_____________________________
(NRIC number)
_____________________________
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