Landmark energy deal to cut power bills for accommodation owners
A landmark deal being finalised by Tourism Accommodation Australia NSW is expected to shave millions off the power bills of accommodation owners.
TAA NSW acting chief executive Adele Lausberg says the agreement, which will result in “huge direct savings” in energy bills, will be a world first.
“This will be a ground-breaking deal which will help break the back of high electricity prices paid by our members whilst simultaneously reducing our carbon footprint,” she said.
“It will mean huge direct savings previously not available to the sector.”
A Power Purchase Agreement (PPA) is a contract to purchase electricity at an agreed price for a period of time between an energy customer and an electricity generator direct, such as a solar or wind farm.
Traditionally, an energy customer buys electricity from an energy retailer, which sources most of its power from the wholesale energy market.
“The PPA price is expected to be significantly lower than both the current retail and wholesale price of power and should save the participating accommodation hotels millions over the life of the agreement,” Lausberg said.
“This new offer is not simply a group buy, it is much more. By contracting directly with the electricity generator, it secures for our members a better-than-wholesale price for energy.
“Members who are currently investigating or negotiating new energy supply arrangements should consider this PPA.”
Sheridan Randall, 13th May 2019
