New Energy Deal Set to Revolutionise Accommodation SectorDate: 07 May 2019
Accommodation hotels, pubs and bars in Canberra are set to reap the benefits of a landmark new low-price energy deal being finalised by the Australian Hotels Association.
The AHA is set to sign a major new aggregated Power Purchase Agreement (PPA) which will revolutionise the way AHA ACT members pay their ever-increasing energy bills.
AHA ACT General Manager Anthony Brierley said the agreement is 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,” he said.
“It will mean huge direct savings previously not available to the sector. The PPA price is expected to be significantly lower than both the current retail and wholesale price of power and should save the participating members millions over the life of the agreement.”
A Power Purchase Agreement (PPA) is a contract between an energy customer and an electricity generator direct – such as a solar or wind farm – to purchase electricity at an agreed price for a period of time. Traditionally, an energy customer buys electricity from an energy retailer which sources most of its power from the wholesale energy market.
“This new offer is not simply a group buy – it is much more,” Mr Brierley said.
“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.”
Mr Brierley said, “Last year, the AHA ACT committed to our members that we would investigate innovative ways of reducing their business costs. While we’re still investigating solutions to credit-card merchant fees and workers compensation insurance premiums, it’s really exciting to have an electricity solution ready to present to our members.”
Mr Brierley said further details about the PPA would be released in coming weeks.