Long Run Marginal Costs (LRMC) of generation, transmission and ...

EUROPEAN UNION

CALL FOR TENDERS

INTERNATIONAL CALL FOR TENDERS

UNDER THE OPEN PROCEDURE, WITH SEALED TENDERS AND

AWARD CRITERION THE ECONOMICALLY ADVANTAGEOUS

TENDER FOR THE SELECTION OF THE CONSULTANT

FOR THE PROJECT:

Long Run Marginal Costs (LRMC) of generation, transmission and distribution in the electricity

sector of Greece

ATHENS – 10th MAY 2006

This project is financed by: 3rd CSF PROJECT 2000-2006 – Operational Program «Competitiveness»

(European Regional Development Fund – National Funds)

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CfT on Long Run Marginal Cost (LRMC) Page 3 of 27

CONTENTS

1. Introduction and Background ................................................................................5 2. Scope of the Consultancy Services ........................................................................5 2.1 Objectives and main tasks of the Project ...............................................................5 2.2 Project Tasks and Time Schedule Requirements...................................................7

2.2.1 Methodological Framework Overview ..................................................7 2.2.2 Collection and Processing of Required Data ........................................8 2.2.3 Development of Consumer Categories and Load Profiles ....................8 2.2.4 Software for the Calculation of the Long Run Marginal Costs .............9 2.2.5 Estimation of Long Run Marginal Costs (LRMC) ...............................10 2.2.6 Overview and Implementation of Efficiency and Demand Response

Incentives .............................................................................................11 2.2.7 Examination of Scope of Using Hourly Meters ...................................12 2.2.8 Training................................................................................................12 2.2.9 Examination of Tariffs of the Regulated Power Utilities.....................12 2.2.10 Proposals for the Gradual Modification of the Current Tariff

Regime.…………………………………..…………………………...13 3. Participation .........................................................................................................13 4. Validity and Duration of Contract .......................................................................15 5. Deliverables and Time Schedules, other terms....................................................15 6. Budget ..................................................................................................................16 7. Remuneration – Terms of Payment .....................................................................16 8. Submission of Tenders.........................................................................................17 9. Distribution of the Call ........................................................................................17 10. Clarifications....................................................................................................17 11. Validity of Tenders ..........................................................................................17 12. Tender Files .....................................................................................................18

12.1 Documents File ............................................................................................18 12.1.1 General Profile .....................................................................................18 12.1.2 Financial and Technical Declarations of the Consultant - Prior

Experience............................................................................................21 12.2 Technical Proposal File................................................................................22 12.3 Financial Proposal File ................................................................................23

13. Submission and Evaluation procedure.............................................................23 13.1 Steps of the proceedings ..............................................................................23 13.2 Procurements Committee.............................................................................24

14. Evaluation of Tenders ......................................................................................24 14.1 Technical Evaluation ...................................................................................25

14.1.1 Technical Evaluation Criteria ..............................................................25 14.2 Financial Evaluation ....................................................................................27 14.3 Final Marking of Tenders ............................................................................27

15. Results - Contract Award.................................................................................27


THE REGULATORY AUTHORITY FOR ENERGY (RAE) OF THE HELLENIC REPUBLIC

Acting on its authority based on Law 2773/1999

LAUNCHES an international Open Procedure Call for Tenders, for an estimated maximum budget of one million two hundred forty nine thousand and five hundred euro (€ 1.249.500) including all taxes and VAT, if applicable, with sealed Tenders and award criterion the economically advantageous tender, for the selection of a Contractor for the project «Long Run Marginal Costs (LRMC) of generation, transmission and distribution in the electricity sector of Greece». The time limit for submission of Tenders shall be thirty-six (36) days days from the day of dispatch of the relevant contract notice of this Call to the Supplement of the Official Journal of the European Communities, as provided for in the Directive 2004/18/EC, art.38 par. 4 and the prior information notice sent to the Supplement of the Official Journal of the European Communities no. 2006 S 14-015733, of 21.01.2006.

Participation is open to all private individuals or legal entities and groups of companies or consortiums established in Greece or abroad – established according to the laws of an EU member-state and have their statutory premises, central administration or central installation within the European Union, the European Economic Union and within the states that are parties to the Agreement on government procurement of the WTO (GATT Agreement), and / or consortiums or groups of companies that submit a joint Tender – that fulfill the legal, financial and technical conditions of the present Call (hereafter referred to as “the Consultant”) and possess the requested professional experience and adequacy, proven skills and expertise in the fields given below:

Energy and Regulatory Policy Economics of electricity markets Electricity Rate Design Marginal Cost Pricing Load Profiling Software Development and Customization

Consultants (private, legal entities, groups of companies, consortiums etc) wishing to submit their fully binding Tenders should demonstrate (themselves alone and not their potential subcontractors) significant specialized experience in the field of the project, for at least the last three (3) years in Greece or abroad, as well as availability of highly skilled and expert personnel to be assigned to the project. Consultants do not have the obligation to form a consortium during the tendering procedure. Consultants should also indicate in their Tender any share of the project they may intend to assign to third parties as subcontractors. In the latter case, the experience of any potential subcontractor shall be without prejudice to the question of the principal economic operator’s (Consultant’s) liability and experience.

The present Call and the Contract that shall be drafted accordingly, as well as any other contractual material, shall be governed exclusively by Directive 2004/18/EC of the European Parliament and of the Council of 31.03.2004, Law 3310/2005, as amended by Law 3414/2005, RAE’s By-laws (Greek Presidential Decree 139/2001–


G.G.O.G. Α’ 121), the present Call and supplementary by §82 to 85 of Law 2362/1995 (G.G.O.G Α’ 247) and by Greek Presidential Decree 394/1996 (G.G.O.G. Α’ 266), as in force. Greek Presidential Decree 346/1998 (Greek Government Official Gazette Α’ 230) as amended by Greek Presidential Decree 18/2000 (Greek Government Official Gazette Α’ 15), shall apply to the extent that it does not contradict the provisions of Directive 2004/18/EC.

This project falls within the ambit of Action 6.4.3 of the Operational Program «Competitiveness» of the 3rd Community Support Framework Project for Greece and shall be co-financed 50% by the European Regional Development Fund and 50% by National Funds. The aim of the European Regional Development Fund is to help redress the main regional imbalances in the Community; whereas the ERDF therefore contributes to reducing the gap between the levels of development of the various regions and the extent to which the least-favoured regions and islands, including rural areas, are lagging behind and to promoting economic and social cohesion by correcting the main regional imbalances and participating in the development and conversion of regions.

The original text of the present Call for Tenders has been drafted in English. No Greek text or translation of the present Call into Greek is available.

1. Introduction and Background 1.1 The Regulatory Authority for Energy of the Hellenic Republic (RAE) is

established by Greek law 2773/1999, as an Independent Administrative Authority with competence over the whole of the energy sector. Its establishment falls within the framework of the harmonisation of Greek legislation with the Community Directive 96/92/EC and is related to the energy markets modernization policy in Greece.

1.2 With its Decision dated 11th January 2006, and again on 15th March 2006, RΑΕ scheduled to launch the Call and award the contract of this project within the present year, after relevant notice published in the Supplement of the OJ of the European Communities, and according to the specifics laid herein, as were decided upon and approved by RAE in its subsequent sitting of 10th of May 2006.

1.3 This Call will follow the “open procedure with prior publication of a tender notice”. In this respect and by applying article 28 of Directive 2004/18/EC, tenders within the framework of the present Call will be submitted according to the model and contents specified in Chapter 12 herein and in the way described below, within a deadline of thirty-six (36) days from the day of dispatch of the contract notice of this Call to the Supplement of the OJ of the European Communities.

2. Scope of the Consultancy Services

2.1 Objectives and main tasks of the Project This project aims to:

(1) Prepare estimates of the long run marginal costs of generation, transmission and distribution of electricity in Greece


(2) Provide RAE with the required knowledge base and tools in order to fulfill its responsibilities for the regulation of electricity tariffs in Greece.

(3) Provide a proposal for the modification of the tariff system based on which the regulated power utilities should design and handle their tariffs to RAE for approval. The proposal must take due note of the followings:

a) All economic costs should be fully reflected.

b) Efficient use of electricity should be promoted. In particular the goal is to encourage reduced consumption during the peak period of power demand, which will help reduce generation, transmission and distribution investments in the long run.

c) The financial recovery of the regulated power utilities must be secured in order to ensure their viability and enable future expansion of their operations.

d) Fairness and equal treatment should be promoted by eliminating cross subsidization from one consumer category to another.

(4) Devise a mechanism for the electricity tariff adjustment that should be flexible and adaptable to the changing fuel and electricity prices under the competitive market.

Upon completion of the project, the Consultant is expected to have delivered:

(a) methods and detailed estimates of the long run marginal costs of generation, transmission and distribution in the high, medium and low voltage sectors

(b) an evaluation of the existing tariff structure and a proposal for its modification to an effective, cost oriented one, as well as a comparison of both of these tariff structures with the estimates of the long run marginal costs of production, transmission and distribution, and

(c) an analysis of the results and proposal of measures that may be taken in order to remove existing distortions within the current tariff structures and promote efficient pricing based on marginal costs (remove cross-subsidization among consumer categories), whilst taking into consideration public service obligations.

The main tasks of the project are the followings:

(i) Presentation of a detailed up-to date overview of the methods followed by other EU member states for estimating the long run marginal costs of generation, transmission and distribution and for the design of electricity tariffs.

(ii) Collection and processing of all necessary data related to the electricity market and are essential for the completion of the subsequent tasks.

(iii) Development of consumer categories, based on their load profiles, their voltage connection level and their technical and behavioral characteristics.

(iv) Development of the appropriate software tool in order to enable RAE to evaluate the medium and long term marginal costs of the supply of electricity in Greece.

(v) Estimation of the generation, transmission and distribution marginal costs on broad regional characteristics (that is rural versus urban areas, or tourist versus industrial areas, etceteras) and time-differentiated basis.


(vi) Recommendation of measures to remove distortion from tariffs of the regulated power utilities in order to implement a more efficient tariff structure which will be based on cost orientation, ensuring the absence of cross subsidization among different categories of consumers.

(vii) Preparation of a detailed, up-to date overview of the incentives which other EU member states have implemented in order to promote efficiency and demand response and assessment of their effectiveness.

(viii) Evaluation of the costs and benefits from installing telemeters for the hourly metering of each consumer.

(ix) Provision of training to the monitoring team of RAE on the calculation of marginal costs, the rate design and the use of the software.

During the entire period of the project, the Consultant will have regular meetings (e.g. once a week) with the monitoring team of RAE in order to discuss the progress of their works. The monitoring team of RAE will have the right to also request other, unscheduled, meetings with the Consultant. In any case, the frequency of the regular meetings will be discussed between the Consultant and the monitoring team of RAE with the latter taking the final decision. The meetings will take place at RAE’s premises unless otherwise specified by RAE.

2.2 Project Tasks and Time Schedule Requirements The objectives of the project, as they have been described in Chapter 2.1 hereinabove, will be accomplished through completion of the tasks described below. The project splits into two discrete phases. Under the first phase of the project (PHASE A), the Consultant is expected to: (a) prepare the software and collect the relevant data, and (b) prepare estimations for the long run marginal costs of generation, transmission and distribution of electricity. Under the second phase (PHASE B), the Consultant is expected to: (a) provide a proposal for the modification of the tariff system based on which the regulated power utilities should design and handle their tariffs to RAE for approval. and (b) provide an assessment of how the new tariffs compare with the findings of the long run marginal costs of generation, transmission and distribution that the Consultant estimated under the first phase of the project. More specifically, in PHASE B, the Consultant is expected to: (a) evaluate the tariffs of the regulated power utilities and examine how these tariffs are compared with their long run marginal costs, and (b) provide recommendations for the transition of the existing tariff system of the regulated power utilities towards tariffs that are based on their long run marginal costs. For the purposes of this project, the Consultant has to take into account: a) the existing market rules, as described in the main text of the Greek Grid and

Exchange Code, without taking into consideration the rules for the transitional period of the market, and

b) the development of competitive wholesale markets and the expected opening of the retail electricity market.

PHASE A

2.2.1 Methodological Framework Overview

The first task to be completed by the Consultant is to provide an overview of the different pricing policies followed by the EU-15 member states in the electricity


sector and to analyze the relevant information required for the design of efficient tariffs. Attention must be given on efficiency adjustments which may have been implemented. For specific member states, as agreed between RAE and the Consultant, a further analysis of pricing policy and their tariffs will be undertaken. The Consultant will also review and present alternative methods for the design of tariffs (i.e. average versus marginal cost). If there are any specific characteristics of electricity markets that require appropriate approaches for tariff design, such features and approaches must be considered. The required data for the implementation of each method will be explicitly described. Remarks should be made on the availability and the difficulty in obtaining and validating such data. Furthermore, the Consultant will submit a detailed up-to date description of the principles underlying marginal cost estimation in the electricity sector, referring separately to the generation, transmission and distribution businesses. The Consultant will present all the required assumptions and parameters in order to determine the marginal costs of each business and therefore will be used in the software for the marginal costs estimations. The data used for the marginal costs estimations must be explicitly described. Schedule: The methodology and the EU overview is expected to conclude two (2) weeks after the kick-off meeting.

2.2.2 Collection and Processing of Required Data

The Consultant will prepare a detailed list with the required data for the completion of the subsequent tasks of the project, to be collected from RAE, PPC, HTSO and/or other official institutions. There must be recommendations for alternative data that will be used in order to overcome any obstacles in obtaining such information. In case that specific data are not available, assumptions will be made based on the EU experience in collaboration with the monitoring team of RAE. The list of data will be updated during the progress of the project according to the Consultants’ needs and the approval of the monitoring team of RAE. Indicatively, the data which is expected to be used include:

• Consumer load profiles per consumer category. • Capital expenses per unit, for all available technologies and fuel

consumed. • Fixed and variable expenses per unit. • Transmission system and distribution network costs. • Transmission system and distribution network loses per demand level. • Other costs required for the calculation of the marginal costs of the

electricity system and the regulated power utilities. Schedule: The initial list of the required data is expected to become available four (4) weeks after the kick-off meeting. All data received from organisations other than RAE (PPC, HTSO and/or other Institutions), will be also delivered to RAE.

2.2.3 Development of Consumer Categories and Load Profiles

The Consultant will develop consumer categories based on the obtained data and according to at least the following characteristics: (a) Connection level: high, medium, low voltage.


(b) Broad regional characteristics: (i) Based on demographic criteria, that is urban, semi-urban and rural areas (ii) Based on economic activity that is industrial, tourist, agricultural area (iii) any other category recommended by the Consultant.

(c) Technical and behavioural characteristics such as seasonality, use of electricity or other recommended by the Consultant.

The Consultant will develop time, day and season differentiated load profiles for each consumer category. The profiles will be associated with day-of-the-week (e.g. Monday through Sunday), holidays (e.g. Christmas, Easter), hours of daylight and ambient temperature conditions (e.g. Daily Maximum and Minimum dry bulb temperatures). The load profiles can be calculated from data collected by the Consultant or provided by the regulated power utilities. If not available otherwise, they could be based on EU experience. Schedule: Consumer categories and load profiles are expected to be concluded by month two (2).

2.2.4 Software for the Calculation of the Long Run Marginal Costs

Models and software will be developed in order to calculate the long run marginal costs for the supply of electricity in Greece. The software will encompass the following:

a. An optimization tool that considers the future development of the Greek electricity production system by replicating the system planning process. The optimum expansion of the generation system will be based on the minimization of the present value of the total costs (operating, investment, capital) by taking into account explicitly the following factors: - Technical characteristics for the existing and new electricity

generation technologies (technical minimum, maximum capacity, heat rates at minimum and maximum capacity, forced outage rates and days of scheduled maintenance).

- Economic characteristics for the existing and new electricity generation technologies (fuel expenses, fixed and variable operation and maintenance expenses, initial investment expenditures, and operational life).

The optimization tool will provide the optimum expansion plan of the electrical generation system, the load factor of different generation units and the present value of the production and investment costs.

b. An optimization tool that considers the future development of the Greek electricity transmission system. The optimum expansion of the transmission system will be based on the minimization of the present value of the total transmission costs by taking into account explicitly the following factors: - The maximum capacity of the supply nodes of the transmission system

which will be differentiated by time. - The load of the demand nodes of the transmission system which will

be differentiated by time. - Typical unit expenses for the increase of the capacity of the

transmission system in case of congestion problems. These expenses


are expected to be calculated for typical configuration for the expansion of the transmission system.

c. An optimization tool that considers the future development of the Greek electricity distribution system under different cases (for example urban and rural areas). The optimum expansion of the distribution system will be based on the minimization of the present value of the total distribution costs by taking into account explicitly the following factors: - The maximum capacity of the supply nodes of the distribution system

which will be differentiated by time. - The load of the demand nodes of the distribution system which will be

differentiated by time. - Typical unit expenses for the increase of the capacity of the

distribution system in case of congestion problems. These expenses are expected to be calculated for typical configuration for the expansion of the distribution system under different cases (for example urban and rural areas).

d. A cost allocation tool, which will split the total marginal costs evaluated by the optimization tools (for generation, transmission and distribution systems) into consumer categories specified by the tool user. The cost will be allocated separately for each individual cost element. The user will be able to set the allocation principles upon which the costs will be split to each category.

It is envisaged that the software, as well as each of its components, will be offered to RAE with perpetual licence and optionally with annual maintenance and support fees. Such fees, after the first year of the deliverance, related to the maintenance, support or upgrading of the software, will be covered by RAE. Apart from the software, the deliverables of this task will include:

• Description of the applied theories. • The objectives of each step. • The way that information is used in each step. • The assumptions made due to lack of data availability and the possible

problems that arise from using alternative information. • The findings of studies that have been carried out in the past will be

considered, analyzed and updated. • A detail manual, with all necessary theoretical background, including

examples, for using the software described. Schedule: The design of the tools will be completed by month four (4) after the kick-off meeting. Software implementation of the tools will be completed by month five (5). Improvements and modifications may take place during the tariff structure comparison and medium and long term simulation tasks.

2.2.5 Estimation of Long Run Marginal Costs (LRMC) The Consultant will analyse how a marginal change in demand or load of electricity (KWh and KW) affects the generation expenses in the long run. Coincidently, the Consultant will examine how a marginal change of the available capacity of generation, on different locations of the grid affects the long run marginal costs of transmission and distribution.


Thus, the method for estimating marginal generation, transmission and distribution costs should be based on the system planning process. Therefore, the estimation of the long run marginal costs will take into account the efficient system expansion, which will be modelled by the Consultant. That is decisions for new investments in generation units and new transmission and distribution lines will be based on an optimum system operation. The long run marginal costs will be decomposed into their elements (generation, transmission, distribution) and their estimation will be carried out separately for each of the following: 2.2.5(a) Long Run Marginal Costs of Generation

Estimation of the long run marginal costs of generation will be carried out under a number of scenarios for the most important marginal costs drivers, like fuel prices, hydrological conditions and the future mix of generation technologies. The dependence of the marginal costs on each of these drivers will be analyzed in detail, and where possible, the Consultant will provide simple formulas to quantify the effect of each cost driver on the long run marginal costs. The Consultant will incorporate these estimations in the software tool described in 2.2.5. Estimation of the long run marginal cost of generation will be allocated separately to the three electrical markets in Greece that is the wholesale energy market, the market for capacity and the market for ancillary services.

2.2.5.(b) Long Run Marginal Cost of Transmission Estimation of the long run marginal cost of transmission will be carried out separately for each of its cost elements (for example losses, expansion of transmission system, new connections to customers). The estimation will be made under a number of scenarios concerning future expansion of the transmission system.

2.2.5.(c) Long Run Marginal Cost of Distribution Estimation of the long run marginal cost of distribution will be carried out separately for each of its cost elements (for example medium or low voltage, losses, expansion of distribution network) and per geographical area (for example urban, rural, semi-rural or industrial or tourist area). The estimation will be made under a number of scenarios taking into consideration the future expansion of the distribution network.

Schedule: Long run marginal costs estimations must be completed by month seven (7).

2.2.6 Overview and Implementation of Efficiency and Demand Response Incentives

The Consultant will describe the conceptual framework for the effective integration of incentives used to induce efficiency and demand response among consumers. Different incentives implemented in the EU member states will be described and assessed in relation to their effectiveness. Based on the results and proposals of the above tasks, recommendations about appropriate incentives for Greece will be proposed.


The Consultant will be able to demonstrate the way that the application of the proposed incentives is expected to affect the marginal costs of generation, transmission and distribution for specific types of consumers. The Consultant is expected to perform a cost-benefit analysis of each proposed incentive. The time schedule for the application of each incentive should be provided. Schedule: This task will be completed by month eight (8).

2.2.7 Examination of Scope of Using Hourly Meters

The Consultant will analyse the option of replacing all existing meters with hourly meters, by doing a cost-benefit analysis. The analysis will also consider the importance of the hourly meters in the opening of the market, their impact on the load profiles and the potential increase of the load factors. In particular the goal is to encourage less consumption during the periods of peak demand, which will help reduce generation, transmission and distribution costs in the long run. The relevant experience and policy in the other EU member states will be reviewed and presented. Schedule: This task will be completed by month nine (9).

2.2.8 Training

The Consultant is expected to train the monitoring team of RAE on long run marginal costing, rate design and the use of the software. In addition two (2) short seminars will be offered at the middle and at the end of the project.

• The Consultant will train the members of the RAE’s monitoring team on the economic and technical parameters of marginal costs estimation and rate design. The training will also provide the monitoring team with the required knowledge to overpass probable difficulties in designing tariffs. The monitoring team will be also trained in the use of the software and the adaptation of the parameters according to the desired pricing policy of RAE. The parameters with the high materiality for the results will be highlighted. and characterised according to the possible use of alternative data.

• Two one-day open seminars focusing on the results of the project will take place. RAE’s staff and any other invited by RAE will participate.

• The monitoring team has the right to ask the Consultant by email or telephone for any clarification or assistance or advice for a period of at least 3 months after the completion of the project.

Schedule: This task will be completed by month ten (10). PHASE B

2.2.9 Examination of Tariffs of the Regulated Power Utilities The Consultant will analyze the tariff structure of the regulated utilities and compare it with the results of the marginal costs estimations completed in Phase A. Furthermore, the Consultant will propose efficient tariffs for each consumer category, based on the software, the load profiles and the long run marginal costs of production, transmission and distribution. The efficient tariffs will be used for the evaluation of the proposed tariffs by the regulated power utilities for each consumer category.


A detailed analysis of the results will be provided, including an analysis of all cross subsidies among the consumer categories in the tariffs. Schedule: This task should be completed by month thirteen (13).

2.2.10 Proposals for the Gradual Modification of the Current Tariff Regime

The Consultant is expected to recommend methods that may be followed by RAE for the modification of the existing tariffs of the regulated power utilities to a tariff structure appropriate for the liberalised electricity market in Greece. The new tariffs must cover a time period of at least five (5) years. The proposals should refer to each consumer category, allowing consumers to incur (or avoid) marginal costs as their demand increases (or decreases) and thereby promoting the overall efficiency with which energy is consumed and avoiding cross subsidisation. The proposed methods must show minimal transition costs from the existing tariffs of the regulated power utilities to an efficient tariff structure, while the irregularities that are caused by the public service obligations are minimized. The impact of the oil prices on the tariffs shall be considered and tariffs must have an automatic mechanism for the updating of tariffs in relation to oil price changes. Schedule: This task will be completed by month fifteen (15).

3. Participation Participation is open to all private individuals, private or public law legal entities, their groupings or consortiums (hereafter referred to as “the Consultant”), that submit a joint Tender and are established in Greece or abroad – established according to the laws of an EU member-state, or an European Economic Union member state or a state that is party to the Agreement on government procurement of the WTO (GATT Agreement) – and have their statutory premises, central administration or central installation within the European Union, the European Economic Union and within the states that are parties to the Agreement on government procurement of the WTO (GATT Agreement). Groupings in specific do not have the obligation to vest a specific legal form during the tendering procedure. In case though of contract award to a grouping, said grouping might be asked to form a consortium. In the latter case the grouping should do so. Each Member of the consortium will then be held jointly and in full liable towards RAE for the entirety of the project. Those not fulfilling the criteria of paragraphs 1 and 2 of article 45 of Directive 2004/18/EC and supplementary the criteria laid down by articles 24-27 of Greek Presidential Decree 346/1998, as in force and to the extent that its provisions are not contradictory to those of the aforementioned Directive, shall be excluded from the participation in a public contract and in particular in case of: 1. a Tenderer who has been the subject of a conviction by final judgement of which

RAE is aware for one or more of the reasons listed below:

a) participation in a criminal organization, as defined in Article 2(1) of Council Joint Action 98/773/JHA,

b) corruption, as defined in Article 3 of the Council Act of 26th Μay 1997 and Article 3(1) Joint Action 98/742/JHA respectively,


c) fraud, within the meaning of Article 1 of the Convention relating to the protection of the financial interests of the European Communities,

d) money laundering, as defined in Article 1 of Council Directive 91/308/ΕEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering,

2. a) A Tenderer who is bankrupt or wound up, or where his affairs are being administered by the court, or where he has entered in an arrangement with creditors, or where he has suspended business activities or is in any other analogous situation arising from a similar procedure under national laws and regulations,

b) is the subject of proceedings for a declaration in a bankruptcy, for an order for compulsory winding up or administration by the court or of an arrangement with creditors or of any other similar proceedings under national laws and regulations,

c) has been convicted by a judgment which has the force of res judicata in accordance with the legal provisions of the country of any offence concerning his professional conduct,

d) has been guilty of grave professional misconduct proven by any means which RAE can demonstrate,

e) has been unappealably excluded from any Public Authority or Public entities for not fulfilling their contractual obligations,

f) has not fulfilled his obligations relating to the payment of social security contributions in accordance with the legal provisions of the country in which he is established or with those of Greece,

g) has not fulfilled his obligations relating to the payment of taxes in accordance with the legal provisions of the country in which he is established or with those of Greece,

h) is guilty of serious misrepresentation in supplying the information required under this Chapter or has not supplied such information,

i) any other foreign legal or physical entity that is the subject of the above noted penalties.

3. Further excluded from the participation in a public contract are:

a) Greek stock companies not submitting the documents and certificates provided for in Law 3310/2005, as was amended by art. 8 of Law 3414/2005,

b) Foreign stock companies not submitting equivalent documents according to the legal provisions of their country in which they are established,

c) Tenderers not submitting a Bank Guarantee for Participation according to the provisions laid down in Chapter 12.1.1 of the present Call,

d) Foreign legal or physical entities that do not submit the whole of their documents of Chapter 12.1.1 officially translated into Greek.

It is stressed that in the case of a submission of a joint Tender, all the above noted conditions for disqualification apply equally to all parties to said Tender. If there is a reason for disqualification of even one of the parties, the whole joint Tender will be disqualified on this account.


4. Validity and Duration of Contract Following RAE’s Decision on the award of the Contract, the Consultant shall be invited for the signing of the agreement within a peremptory period set by RAE.1 Upon signing, the Consultant will submit a Bank Guarantee for Good Performance amounting to 20% of the contract sum. Should the Consultant not proceed with the signing, RAE reserves the right to revoke its award Decision and proceed with the award of the Contract to another Tenderer, according to the Final Marking Table (see Chapter 13.1 of the present Call). The project shall commence upon signing of the Contract.

The total duration of the Consultant’s effort shall not exceed a period of ten (10) months for PHASE A and a period of five (5) months for PHASE B following signing of the Contract. This period can be prolonged upon mutual agreement of both parties as to the terms of such prolongation and in no case shall this prolongation exceed the 30th November 2008.

5. Deliverables and Time Schedules, other terms Deliverables and the associated time schedule have been defined under the task description in Chapter 2. In particular, these include: D1: European experience in long run marginal costs and tariffs. Schedule: Week 2. D2: List of required data. Schedule: Week 4. D3: Consumer load profiles. Schedule: Month 2 D4: Software comprised of an optimization tool for the generation, an optimization

tool for the transmission system, an optimization tool for the distribution system and an allocation tool to split the marginal costs to consumer categories together with detailed manual. Schedule: Month 5

D5: Estimation of the long run marginal costs for generation, transmission, distribution. Schedule: Month 7

D6: Demand response overview and implementation. Schedule: Month 8 D7: Study on the scope of using telemetering. Schedule: Month 9 D8: Training. Schedule: Month 10 D9: Examination of tariffs of the regulated power utilities and proposal for tariffs

that reflect the long run marginal costs. Schedule: Month 13 D10: Proposals for the gradual modification of the current tariff regime. Schedule:

Month 15 1 Before the contract is signed, control and approval by the Court of Audit of the Hellenic Republic takes place,

according to the provisions of par. 27 art. 12 of Law 3310/2005. Furthermore, cross-checking and control of data – with regards to incompatibility or prohibition of the

Consultant, due to his capacity – is performed by the Greek High Authority on Radio –Television, according to the purport and under the conditions of the provisions of art. 3, 4, 5 and 8 of Law 3310/2005 (regarding nominalization of stocks), as was amended by the provisions of Law 3414/2005 and in line with passage b par. 1 art. 45 of Directive 2004/18/EC/31.03.2004. The Consultant shall then furnish the relevant Certificate to RAE. Within the ambit of the aforementioned control and in the case of contract award to a Greek stock company, the latter has the obligation (according to art. 3 of Greek Presidential Decree 82/1996, as amended by par. 7 art. 8 of Law 3310/2005) to provide to the High Authority before contract signing the documents described in par. 2 art. 1 of .P.D. 82/1996. Finally, in case of contract award to a consortium / group of companies, control of concurrence of incompatibility shall be performed independently for each and every member of the consortium / group, given that the provisions of par. 4 art.3 of Law 3310/2005 – as amended by Law 3414/2005 – apply.


The reports and documents prepared as part of the project shall be submitted by the Consultant both in hard and electronic copy. The working language and the language of the training seminars can be English. However, the final deliverables will be submitted by the Consultant in both Greek and English languages. The Greek version will prevail.

The Consultant should foresee regular and close cooperation with RAE during all phases of the project. The rendering of the Consultant’s services shall take place in RAE’s premises, in his own and in any other location where the data necessary for the implementation of the project can be obtained.

RAE shall make available to the Consultant any information and datum that will possess as to the proper implementation of the project.

RAE’s setting of a new deadline for re-submission of any of the Consultant’s Reports / Deliverables shall in no case result in an extension of the deadline for submission of subsequent Reports / Deliverables, notwithstanding an express approval as to the contrary by RAE.

Members of the Consultant’s Project Team that have undertaken the implementation of specific Tasks (either members of the Consultant’s personnel or external assistance), can be replaced only after RAE’s relevant approval. RAE may request the replacement of members of the Project Team during all phases of the project.

6. Budget The total estimated budget of this project shall not exceed the amount of one million two hundred and forty nine thousand and five hundred euro (€ 1.249.500) for both phases A and B. This amount is inclusive of VAT, if applicable and of any other direct and indirect taxes and duties in connection with the performance of services by the Consultant and generally all and every tax duty imposed by any applicable law. This amount is also inclusive of all cost elements necessary for the implementation of the project. It is expected that the actual contract sum will reach a much lower level.

7. Remuneration – Terms of Payment The selected Consultant will be remunerated as follows: (1) Thirty percent (30%) of the total Contract sum, including VAT if applicable,

upon completion - and relevant acceptance by RAE - of deliverables D1-D3, as set out in Chapter 5 of the Present Call.

(2) Thirty percent (30%) of the total Contract sum, including VAT if applicable, after acceptance of deliverables D4-D5 as set out in Chapter 5 of the present Call.

(3) Twenty percent (20%) of the total Contract sum, including VAT if applicable, after acceptance of deliverables D6-D8 as set out in Chapter 2.2.5 and Chapter 5 of the present Call.

(4) Twenty percent (20%) of the total Contract sum, including VAT if applicable, after acceptance of Deliverables D9-D10 as set out in Chapter 2.2.6 and Chapter 5 of the present Call.

For execution of each payment to the Consultant, relevant legal invoices / documents will be requested. Justified reductions according to the law in force and relevant


circulars issued by the Ministry of Finance will be applied on each invoice submitted by the Consultant.

8. Submission of Tenders Tenders (one copy) are submitted by registered mail, hand or courier delivery to RAE’s address: Panepistimiou 69 & Aeolou Str., GR 10564 Athens, Greece. Deadline for receipt of proposals at the premises of RAE: 13th July 2006, on 11:00 a.m hours, to the attention of the Procurements Committee. Tenders, and in particular the Technical Proposal, should be submitted in the English language.

9. Distribution of the Call The present Call is available at RAE’s website, www.rae.gr.

No record of receipt of the Call will be kept.

RAE makes every effort to ensure but cannot guarantee that the documents laying in its website are correct and complete.

Information: Ms. Andy Kontoudakis, tel. 210-3727410.

10. Clarifications 10.1 Questions and clarifications may be addressed to RAE by e-mailing to

[email protected], up to sixteen (16) days prior to the deadline of receipt of Tenders. Replies are provided by RAE, or by its specially appointed agency, via e-mail. Additionally, RAE will post at its website within a reasonable time frame a common reply, addressing all questions and clarifications requested by the Tenderers according to the above noted procedure.

10.2 Tenderers may in no way claim clarifications offered by word of mouth on behalf of RAE’s personnel, all communications with regards to this Call being in writing.

11. Validity of Tenders The Tender is binding for the Consultant for a time period of a hundred and eighty (180) days, starting the next day from the deadline for submission of Tenders. Tenders setting a shorter period of validity are considered unacceptable and thus are immediately rejected. In case of an extension in the validity of the Tenders, the Procurements Committee of the project will address a written demand to the Tenderers, at least ten (10) days prior to the expiration date, to extend the validity of their Tender for a given period. Tenderers should reply in writing within three (3) working days. Notice of the award of the Contract can be posted even after expiration of the validity of the Tender concerned, with a binding effect as to the Consultant concerned only after his acceptance of such notice.


12. Tender Files All Tenders are submitted in one (1) original, sealed envelope bearing the indication:

TENDER

Call for Tenders under the Open Procedure for Award of the Contract «Long Run Marginal Costs (LRMC) of generation, transmission and distribution in the electricity sector of Greece»

Deadline for submission of Tenders: 13/07/06

and the name and full details of the Consultant (address, no, city, P.C. tel., fax, e-mail, etc). Every page of the Tender should bear the signature of the legal representative of the Consultant and be numbered unintermittently.

Each Tender should include three (3) sealed inner Files:

1. A File named «Documents»

2. A File named «Technical Proposal»

3. A File named «Financial Proposal»

Tenders that according to the Procurements Committee judgment are vague and non-assessable, or contain clauses variable or undetermined and/or conditional to those set out by the present Call, are considered unacceptable and are thus rejected.

The Tender submitted should cover every clause of the present Call, which in whole are considered compulsory and substantial, unless otherwise and expressly set out.

12.1 Documents File In order to ascertain their qualifications, their professional reliability, the financial credibility and generally their financial status, as well as their technical qualifications, the Tenderers should include in their Tender the following supporting documentation:

12.1.1 General Profile Case- by-case supporting documentation and relevant other documents. (1) Cover Letter. (2) Candidate’s Identification Sheet, bearing information as to the corporate name,

organization, address, contact numbers etc as well as the Tenderer’s legal status and VAT number.

(3) Certificate issued by the competent administrative or legal Authorities establishing that the Tenderer is not in a situation of bankruptcy, liquidation, compulsory administration of property (escrow proceedings), under composition in bankruptcy or in any analogous situation and additionally that there he has not been the subject of bankruptcy proceedings, liquidation proceedings, or any court decision for commencing escrow proceedings or composition in bankruptcy proceedings or pending proceedings for any analogous situation.

(4) Decision by the Board of Directors or of equivalent competent agency of the Tenderer for approval of his participation to this Call, for approval of his participation in the specific group / consortium / joint-venture (if such is the case), for the appointment of a legal representative, for acceptance of joint


responsibility of all partners of the group / consortium / joint-venture (if such is the case) and of their percentage in it.

(5) Proof of Tenderer’s legal existence and status (such as Articles of Association, General Assembly’s decision for B.o.D. selection, B.o.D.’s decision for convening, etc.).

(6) Certificate of enrolment, as prescribed in his country of establishment, in the relevant professional or trade registers.

(7) Valid abstract of the Tenderer’s criminal record (in case of physical entities), issued by the competent administrative or judicial Authorities in the country of origin three months prior to the date of submission at the most, establishing that the Tenderer has not been convicted for any offence with regards to:

his professional activities and

the offence of participation in a criminal organization, as defined in Article 2(1) of Council Joint Action 98/773/JHA.

In case of legal entities, the abstract of the criminal record shall be furnished for the members of the Board of Directors / Trustees / Partners that have powers of representation and in general for those managing and representing each company form.

(8) Certificate by the competent authority, establishing one has fulfilled one’s obligations relating to the payment of social security contributions in accordance with the legal provisions of the country in which one is established, or with those of the country of the contracting authority, and valid for at least two (2) months after its issue.

(9) Certificate by the competent authority establishing one has fulfilled one’s obligations relating to the payment of taxes in accordance with the legal provisions of the country in which one is established, or those of the country of the contracting authority and valid for at least two (2) months after its issue.

(10) In the case of submission of a joint Tender by a group / consortium / joint-venture, a constitution deed is required as well as a relevant statement of responsibility from which the leader of the union of companies / consortium, who also has the right to submit and sign all Tender or other relevant to the Tender documents, can be clearly deducted, and in the case of legal persons using subcontractors or associates, written association agreement. The Tender, or the constitution deed, should clearly indicate the quantity, percentage or the part of the project that each of the member will undertake. The documentation mentioned in points (3) to (9) hereinabove is required only for the legal person submitting the proposal, while in the case of a consortium such documentation shall be furnished for each member of the consortium. In the case of contract award to a group / consortium / joint-venture, the latter should furnish a constitution deed and a relevant proxy, duly validated and certified by the competent authority. In the case where due to force majeur or for any other reason of impossibility a member of the group / consortium / joint-venture cannot fulfill the obligations deriving from the group / consortium / joint-venture during the phase of evaluation of the Tenders, the rest of the members continue to be held responsible of the joint Tender in whole and for the same rate. If the same impossibility occurs during the implementation of the contract, the rest of the


members bear the responsibility of fulfilment of the contract with the same rate and the same terms and conditions. In both cases, the rest of the constituting parties of the group / consortium / joint-venture can propose a replacement. The replacement can only be accepted after RAE’s decision or a decision by its appointed agency, following relevant recommendation by the Procurements Committee.

(11) In the case of submission of the Tender by a stock company, the documents of art. 8 of Law 3310/2005, as was amended by art. 8 of Law 3414/2005 - and for each and every case of stock company cited therein - should be furnished, according to the laws of the state in which it is established (nominalization of stocks).

(12) ORIGINAL Bank Guarantee for the participation in the Tender, equal to 5% of proposed project cost, amounting to € 62.475, on a penalty for non-submission. This Guarantee for Participation will be returned to the selected Consultant and all other Tenderers within a period of five (5) days from signing of the contract and after further submission by the selected Consultant of a Bank Guarantee for Good Performance, as specified below. The Bank Guarantee for Participation should either be of indefinite time validity, or be valid until our written notice to the issuing institution, or else be valid for at least one (1) month after the expiry of the Tender’s validity period, according to this order of precedence, and should be issued by credit institutions or other legal entities that lawfully operate in Greece or in any other EU or EEA member states or in third countries that are parties to the Government Procurement Agreement of the WTO, that has been ratified by Greek Law 2513/1997 and possess, according to the laws of such states, the right to do so.

The selected Consultant will be further asked to provide a Bank Guarantee equal to 20%, of the proposed project cost for Good Performance. The validity period of such Bank Guarantee should extend for a further period of two (2) months after the contractual date of completion of the project. This bank guarantee is returned to the Consultant after fulfilment of his contractual obligations and approval of the Final Report.

In case of Consultants maintaining their official seat abroad, the documents of art. (3) - (10) hereinabove are issued according to the laws and practices of the country of their residence. For the documents of art. (11) hereinabove in particular and in the case where the law in the country in which they maintain their official seat does not provide for such obligations (i.e. as to the registration/nominalization of stocks), Consultants should provide a relevant Certificate from the competent authority, or, if such Certificate is not provided for, a statutory declaration of the company’s legal representative as to such non-obligation. True copies of original documents are certified according to the Greek legislation. The applicability of the provisions of Law 1497/84 (G.G.O.G. Α΄188) regarding the authentication of foreign public documents (Apostille) should be considered. All documents should be submitted in original. Documents File should be unintermittently numbered and signed.


No supplementary documents can remedy any lack or omission of the submitted Documents File - part 12.1.1 General Profile. If the above noted documents are not submitted according to the provisions laid herein, the Tender shall be considered null and void.

12.1.2 Financial and Technical Declarations of the Consultant - Prior Experience

1. Declarations with regards to the expertise and the Tenderer’s available infrastructure, professional experience and know-how, financial credibility and solvency and technical competence. This section shall necessarily include the following documents:

(1) Details of the firm (name, address, tel., name of the legal representative and contact person for the Tender).

(2) Description of Business Structure (legal status, organogram, business range).

(3) Description of all professional activities of the Tenderer: businesses, services, clients.

(5) Description of financial data (capital and shares, turnover, profits). (6) Balance sheets of at least the previous three (3) years for those bearing

the obligation under the law of drafting balance sheets, as well as annual turnover data establishing his financial status.

(7) Statutory Declaration with regards to the total turnover pertaining to the provision of similar to the project services during the previous three (3) years and relevant analysis.

(8) List and description of the total of the personnel of the Tenderer, job description, professional status, type of employment etc.

(9) Declaration as to the level of technical infrastructure relevant to the present Call.

(10) Description of the means and infrastructure available for the implementation of the project.

2. Past Relevant Experience of the Tenderer. This section includes the following: (1) A detailed description of Tenderer’s past experience, especially

references on previous experience in consulting on the subject of this project

(2) List of private or public sector entities – recipients of the services of the Tenderer and the relevant similar projects undertaken during the last (3) years and their description, as well as of the role assumed by the Tenderer.

(3) In particular, detailed description and record of recent and extensive experience of the Tenderer in the three (3) most recent projects bearing significant similarities with the project in question during the last three (3) years.

(4) Detailed CVs of the Consultant’s personnel committed to work for the project, presentation of their qualifications, description of their experience, with emphasis on their technical / professional capacity relevant to their work on this project.


Given the fact that all the documents of par. 2 hereinabove will form the basis for the qualitative selection of the Tenderers, these should be as analytical and substantiated as possible, in order to present a clear picture of the Tenderer’s past experience in similar projects like the project in question.

Any existence or combination of unfavorable or insufficient financial or technical characteristics of a Tenderer may result in barring of the Tender from any further evaluation on the grounds of a dully justified opinion of the Procurements Committee.

Any lack or inaccuracy of a document established after relevant control will entail the rejection of the Tenderer whose documents were found inaccurate or incomplete. In any case, and specifically for the Declarations provided for in art. 12.1.2, the Procurements Committee can order in writing the provision of any supplementary documents, within a specific deadline.

Where the Tenderer does not participate in person, he can be replaced by his legal representative, delegated in this respect (by proxy).

If the above noted documents and declarations are not issued in the country of origin, they may be replaced by the Tenderer’s affidavit before a judicial or administrative Authority, notary or the competent professional agency in the country of origin. In the cases where in a Tenderer’s country of origin an affidavit is not foreseen, this can be replaced by a statutory declaration, in which the signature is authenticated by the competent judicial or administrative authority or a notary.

12.2 Technical Proposal File The File consists of a single section containing information and implementation description for the below noted: 1. A presentation of the understanding by the Consultant of the problem and the

general methodological approach he proposes to follow. 2. A description of the services to be offered, as envisaged by the Consultant by

Task, the corresponding methodology, and the proposed consultation and reporting requirements.

3. Timetable of the project and deadlines for the deliverables, according to the terms of the present Call.

4. Software implementation. 5. Detailed description of the organogram to be established for the management of

the Project. Detailed proposed time schedule and project organization including assignment of persons to each project task with mentioning of man-hours (man-days, man-months) per person and task.

6. Detailed presentation and relevant substantiation of the composition of the proposed project team, based on their technical qualifications and relevance as presented in par. 2(4) of Chapter 12.1.2 and in combination with the technical demands of the project.

7. List of the personnel and the external experts to be appointed by the Consultant for the Project, programming skills, description of the position and duties assigned to each one of them.

8. Description of other projects that members of the Project Team will be occupied at the same period that might create conflicts of interest.


12.3 Financial Proposal File A financial proposal for the consultancy services, indicating a lump-sum for total project cost and relevant breakdown by task and type of service (algorithmic design, software design, software programming, consulting etc.). No readjustment of prices will be accepted. Prices must be quoted inclusive of applicable VAT.

13. Submission and Evaluation procedure

13.1 Steps of the proceedings 1. The proceedings will be conducted by the Procurements Committee appointed

after RAE’s Decision. RAE, upon recommendation by the Procurements Committee, controls the Documents File, evaluates the Technical and Financial Files and awards the Contract.

2. The unsealing of the Tender File (Documents File only) will take place in RAE’s premises on the date and hour set at Chapter 8 of the present Call. Unsealing of the Technical (at first) and Financial (consequently) Files will take place on a date and hour communicated to the Tenderers in due time and in writing.

3. Each Tender File is unsealed and the existence within it of the inner three (3) Files is ascertained. If any of the enclosed Files within the Tender File described in Chapter 12 of the present Call is missing, the Tender will not be accepted by the Procurements Committee and will be returned to the Tenderer, without opening of any of the enclosed files. Against this decision of the Procurements Committee no appeal is considered. If the Tenderers declare that they will appeal against the above decision to a Courts of Justice, their Files are kept for the period necessary for the completion of the evidence proceedings.

4. The Procurements Committee proceeds with the unsealing of the Documents File of all Tenders and decides if all terms and conditions of the present Call are fulfilled. In the case where any of the required documents under art. 12.1.2 alone has not been submitted or is missing from the Documents File of any of the submitted Tenders, the Procurements Committee may call the Tenderer, whose Declaration Section is evidently incomplete, to submit within the same day the relevant missing documents.

5. The Procurements Committee proceeds with the control of the documents provided for in Chapter 12.1.1 of the present Call in total, as well as with the checking of the Declarations provided for in Chapter 12.1.2 respectively, and submits its recommendation to RAE as to the acceptance or not of the Documents File and to the acceptance or not on the basis of their merits of the Declarations of Chapter 12.1.2 of the present Call. RAE decides accordingly.

6. The Technical and Financial Proposals of any non-acceptable Tenders remain sealed for the rest of the procedure and are returned to the respective Tenderers after the end of the procedure.

7. The Procurements Committee proceeds – after RAE’s decision on whether the Documents Files are made acceptable or not – with the unsealing of the Technical Files. The pre-selected as described hereinabove Tenderers are notified to attend on a set date and hour such unsealing.


8. Once unsealed and controlled in front of every interested Tenderer –or its legal representative, the Technical Files are subsequently examined and evaluated by the Procurements Committee. During this course of events, the Committee shall request one or more meetings with Tenderer representatives in order to evaluate more fully the Tenderer’s understanding of the project and its specific requirements, as well as the Tenderer’s sufficiency and technical competence. During these meetings:

a. the written proposals will be orally presented,

b. questions will be posed in order to obtain clarifications on the Technical Proposal as needed,

c. the specific role and responsibilities assigned to the Tenderer’s proposed team members will be elaborated upon and duly substantiated.

9. Following evaluation performed on the Technical Files by the Procurements Committee, the later draws up the Technical Marking Table of the technically accepted Files and submits its Report to RAE. RAE decides if the Technical Files are made acceptable or not.

10. After RAE’s Decision on the technically accepted Files, the Procurements Committee proceeds with the unsealing of the Financial Files. This unsealing regards only those Tenders that have been finally technically accepted according to the method and criteria specified herein below. Upon conclusion of the evaluation (both Technical and Financial) the Procurements Committee draws up its Report and submits its recommendations as to the Final Marking Table and the award of the Contract. RAE decides accordingly and communicates its Decision to the Tenderers.

11. Corrections of any of the Tender Files or counter-offers are not allowed. Tenders containing vague or incomprehensible answers – based on the Procurements Committee’s opinion – will be excluded from any further evaluation.

12. Tenders departing considerably from the provisions of the present Call are overruled.

13.2 Procurements Committee For the present Call, a Procurements Committee will be set up after relevant decision by RAE. This Committee will consist of three (3) regular members and three (3) deputy members, as well as a secretary. The Committee conducts the proceedings and refers to RAE its opinion as to the evaluation of the Tenders and the award of the contract. RAE decides upon the evaluation and the award.

14. Evaluation of Tenders In order to appoint the Consultant, the evaluation procedure follows numerical marking and calculation of the final mark for each of the Tenders, based on the contents of the Technical and Financial Files submitted by the Tenderers and on the presentations described in Chapter 13.1(8) hereinabove, according to the methodology presented herein below. Tenders should necessarily comprise the total of the project, any Tender drawn up for only part of it will be overruled.

Counter-offers both as to the technical or financial contents of a Tender are unacceptable and thus rejected. RAE reserves the right however - if necessary - to


request in writing clarifications with regards to the contents of a Tender. In this case the provision of such clarifications is deemed compulsory and is not considered a counter-offer.

The above noted clarifications should be submitted within a maximum time period set out by RAE, otherwise the Tender is rejected. It is noted that from the clarifications provided, only those specifically requested for will be considered.

The Consultant shall in no case assign the contract to a third party, the sole responsibility of the implementation of the project lies with the Consultant.

For ensuring the quality, the smooth progress and the successful completion of the project, in case of Tenderers who’s Financial Tenders contain abnormally low bids, in the sense of art. 55 of Directive 18/2204/EC, RAE reserves the right to request a detailed justification of the Tenderer budget. In the event that the justification is deemed insufficient or unsatisfactory to RAE, the Tender will be rejected.

14.1 Technical Evaluation The Procurements Committee marks the Technical Tenders according to its judgment as follows:

The marking of the Technical Tenders will be conducted by assigning marks for each criterion, as follows:

0-49: when the Tender is unacceptable with reference to the criterion

50-59: when the Tender is inadequate with reference to the criterion

60-84: when the Tender is satisfactory with reference to the criterion

85-100: when the Tender is excellent with reference to the criterion

The total mark for each Tender will be calculated as sum of products of the mark per criterion, the weighting factor of the corresponding criterion and the weighting factor of the group in question. Tenders marked with zero (0) even to one of the criteria groups (A and B) will be rejected.

Technical Tender (ΤTk): TTk = ∑ i (Weighting Factor for the criterion )i *

(Mark for the Criterion) k, i *(Group W.F.) i

Where k : Tender submitted

i: Criterion for the Technical Evaluation

14.1.1 Technical Evaluation Criteria The criteria and their groupings on which the technical evaluation will be based are presented below. Each group’s relevant weighting factor is given into parenthesis. The break-down of these weighting factors for each of the criteria in both groups is given in tabular form hereinafter. Group A: Technical merit criterion (W.F. 50 %) Technical merit of proposal in terms of the proposing team’s understanding of the project requirements and the proposed methodology and approaches to deal with these


requirements, including the proposed management of the project in terms of the assurance and promotion of (i) the potential collaboration among team members and the ability of the team to work cohesively towards the completion of the tasks and the production of high quality deliverables, and (ii) the potential to communicate effectively with RAE personnel assigned to the project in a manner that the project requirements are understood and dealt with effectively and the requisite skills are transferred to RAE personnel to enable it to use constructively the software and the tariff evaluation recommendations which will be part of the deliverables. Presentations and discussions described in Chapter 13.1(8) hereinabove will provide additional input to the technical merit evaluation Group B: Qualifications and competence of the proposed Personnel criterion (W.F. 50 %) Evaluation of qualifications and competence will be based on:

1. Written presentation of the Proposal section described under Chapter 12.2(6). 2. Oral presentations by Tenderer representatives described in Chapter 13.1(8)

and in particular: a. The input and substantiation during the oral presentations of relevant

quality, technical capacity and capabilities of the Consultant’s personnel (programmers, analysts etc).

b. The outcome of discussions during the oral presentations on the understanding of the project, its specific requirements, the sufficiency and technical competence of the personnel assigned for the execution of the project in respect of the project tasks and the time schedule requirements.

Criteria Criteria

Weighting Factor

Group W.F.

Group A: Technical merit 50%

Understanding of project requirements and quality of methodology proposed and quality control 40%

Clarity in the description of services and deliverables 40%

Project organization and management, timetable, proposed work flows and potential collaboration with and requisite skills transfer to the RAE team

20%

Group B: Qualifications and competence of the proposed Personnel criterion 50%

Project manager (competence, technical capacity and time for the project) and management team 30%

Project team sufficiency, specialties (economists, energy analysts, software developers, etc) and time for the project, in relation to project key areas

70%


14.2 Financial Evaluation For the marking the total lump-sum amount of each Financial Tender is used. For each of the Tenders the Total Mark for the Financial Tender is calculated (TFTMk) thus:

TFTMk = (Minimum of all Financial Tender) / (Financial Tender)k

14.3 Final Marking of Tenders At this stage the final evaluation is performed, compiling the list of the Tenders in descending order of Total Marks, the maximum of which determines the economically advantageous Tender. Total Mark is computed as follows:

Total Mark: TMk = (TTk / TTmax x 0,70 ) + ( TFTMk x 0,30 )

Where TTk : Technical Tender submitted

TTmax: The maximum technical marking of all Tenders submitted

15. Results - Contract Award In the case of RAE’s appraisal of the Tenders as economically non-advantageous or unsatisfactory, RAE reserves the right to call-off this Call.

Pleas are submitted according to the provisions of art.15 of the P.D. 394 / 96.

The award of the Contract is communicated by RAE to the selected Consultant in writing as well as to the other participants.

RAE reserves the right to annul, amend or postpone the Call for any reason whatsoever, in any phase and without any obligation whatsoever to whosoever.

Tenderers have no right to withdraw their Tender or part of it after submission. In the case where his Tender -or part of it- is withdrawn, the Tenderer will be made subject to penalties and in particular:

a. Dismissal and abolishment of any rights to the participation and the award of the Contract

b. Partial or full forfeiture of bank guarantee for participation, without any further formalities or legal action.

For ΡΑΕ

M. Caramanis Chairman

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