Provision

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The term “ provision ” refers to a term from the energy industry , a booking process in the ordering system or services provided by a client in the project business .

Energy industry

In the energy industry , provision is a market opening rule. The provision is used to describe a process whereby end customers (consumers) can switch when purchasing energy ( electricity , gas ) or when providing telecommunications services (see also: changing electricity providers ).

The private end customer concludes his supply contract (gas or electricity, telecommunications services) with the new supplier / service provider. This purchases the energy / services (gas or electricity, telecommunications services) from the local network operator (or from its associated supplier), who previously had the monopoly , within the framework of a supply agreement. This triangular relationship gives the end customer the opportunity to choose the direct contractual partner himself. The disadvantage here, however, is that the end customer remains indirectly dependent on the local network operator / provider and that the network operator / provider continues to have a secure purchase market in his former supply area, whereby he may be able to sell the products more expensively than to his end customers he delivers them immediately.

On the German energy market, the provision was only a temporary preliminary stage to non-discriminatory network access by means of so-called transmission. The private end customer also concludes his supply contract with the new supplier. However, the latter does not obtain the electricity from the local network operator (or its associated supplier), but delivers it himself through the network of the local network operator and through the respective upstream networks to the private end customer. The regulation of the network usage charges to be published by the Federal Network Agency (BNetzA) means that the total electricity price is much more transparent for the end customer and thus basically the possibility of purchasing electricity from the cheapest provider.

Project business

Provisions generally refer to services that are supplied by the client and used, processed or integrated for their own order.

Typical examples of provisions are:

  • Documents,
  • Test data,
  • Provision of computing time on the client's systems,
  • Licenses,
  • special test equipment.

Ordering

For an order from a company to a supplier , the ordering company can provide raw material, semi-finished products or components. B. processed into the finished product in the form of a work contract .

Free provision is typical here. If the material is provided free of charge, the supplier does not receive an invoice for the material provided. Instead, the ordering company records the material flow internally. B. the semi-finished product at the ordering company at a fixed price, which is then included in the calculation of the sales price of the supplier to the ordering party.

Provisions can be differentiated according to the form in which they are returned to the customer.

  • The provided article is not returned in its separable form. Example: a color provided.
  • The provided article is returned in a different form. Example: Outsourcing of surface processing, hardening and coating.
  • The provided article is returned in unchanged form. Example: addition of a tool, a device, a measuring device.

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