Deferred Capacity Charge Plan Terms and Conditions – Agribusiness

1. Other terms and conditions: The terms and conditions of the Deferred Capacity Charge Plan (“DCC Plan”) are additional to, and should be read in conjunction with, Meridian’s Standard Terms and Conditions for the Supply of Electricity, Meridian’s Fixed Energy Plan terms and conditions and any other terms and conditions agreed with Meridian. In the event of inconsistency between the DCC Plan terms and conditions and our Standard Terms and Conditions, the Standard Terms and Conditions shall prevail.

2. Eligibility Criteria: To be eligible for the DCC Plan you must be:

  • on a Meridian fixed energy plan;
  • on a Meridian fixed energy plan;
  • an Ashburton Trading Society, trading as Ruralco (“ATS”) account holder and must pay your Meridian invoices through your ATS Account as approved by ATS from time to time (“ATS Meridian Account Holder”); and
  • on an eligible Electricity Ashburton pricing code.

3. Cancellation of DCC Plan: Once you have signed up to the DCC Plan, it will continue to apply until the expiry or termination of your fixed energy plan, or until the termination of the DCC Plan in accordance with clause 8 below. When the DCC Plan terminates in accordance with clause 8, clauses 9 - 10 will apply.

4. ATS as billing agent: You acknowledge that as an ATS Meridian Account Holder, ATS has been appointed as Meridian’s billing agent in relation to all amounts due by you to us. Meridian may revoke ATS’s appointment as its billing agent and instruct you to pay Meridian directly.

5. Capacity Charges: Your network company, Electricity Ashburton, charges capacity charges (“Capacity Charges”) throughout the year. Under this DCC Plan, Meridian will defer payment of your Capacity Charges during the period of 1 May, until 31 August ("DCC Period”) in accordance with these terms. The standard billing period runs from 1 September, until 30 April (“Summer Period”).

6. DCC Period: During the DCC Period, Meridian will defer the payment of Capacity Charges incurred during that DCC Period and your Meridian invoice will not include a Capacity Charge amount. However, you will still accrue Capacity Charges during the DCC Period and be liable to pay such charges in accordance with clauses 7, 9 and 10 below. Subject to clauses 9 and 10, the Capacity Charges incurred during the DCC Period will not become due and payable to Meridian until the Summer Period.

7. Summer Period: During the Summer Period, your invoice will include a Capacity Charge component, and this component will be higher for the whole Summer Period (when compared to a standard plan that does not defer Capacity Charges), to account for the Capacity Charges deferred during the DCC Period.

8. Termination: The DCC Plan will terminate if:

  • You switch your account from Meridian to another electricity retailer;
  • You switch one or more of your sites from Meridian to another electricity retailer;
  • You cease to meet the eligibility criteria in clause 2;
  • ATS instructs Meridian to cease electricity transactions through your ATS account; ore. In Meridian or Ashburton Trading Society’s reasonable opinion either believe that you are unlikely to be able to pay your current and/or future Meridian invoices.  We will provide you with reasons in writing if this occurs.

    If the DCC Plan is terminated, Meridian may terminate your fixed energy plan, and you must either accept and agree to a new plan or switch to a different electricity retailer.

9. Wash up amount: On 31 March each year, or if the DCC Plan is terminated, Meridian will calculate a wash-up amount reconciling the amount of the Capacity Charges network component paid on the DCC Plan with the amount that would have been paid if you were on a standard plan without deferred Capacity Charges (“Standard Plan”). If, after this calculation, Meridian determines that you have paid:

  • less than you would have on a Standard Plan, your next invoice will include a charge for this amount; or
  • less than you would have on a Standard Plan, your next invoice will include a charge for this amount; or
  • more than you would have on a Standard Plan, Meridian will credit an amount equal to that amount on your next invoice.

10. If this DCC Plan is terminated in accordance with clause 8 above, or in accordance with any other terms agreed between you and Meridian, Meridian will calculate the wash-up amount in accordance with clause 9 and this amount, and any other unpaid amounts, will become immediately due and payable to Meridian.  As soon as practicable after termination of the DCC Plan, you will receive a Meridian invoice relating to all due amounts, including any wash up amount.  If on termination Meridian owes you an amount, this will be credited to your account.

11. Cancellation of DCC Plan: Meridian reserves the right at any time to cancel the DCC Plan and not offer it in future years.  Meridian will give you one month’s written notice (which may be via letter or email) of such cancellation. As soon as practicable after Meridian’s cancellation, you will receive your Meridian invoice relating to all amounts incurred prior to cancellation.