A new aggregated agreement or group purchase deal on electricity being finalised by Tourism Accommodation Australia is set to save accommodation hotels millions in power bills, the organisation said today.

The Power Purchase Agreement (PPA) will see the sector purchase power directly from a specific generator – such as solar, wind or traditional – at an agreed price for an agreed length of time. Deals such as these provide a power company with long-term certainty on price minimums and provide the customer with long-term consistency on its bills. Traditionally, energy retailers buy power from the wholesale market and on-sell it to consumers at fluctuating prices.

“By contracting directly with the electricity generator it secures for our members a better than wholesale price for energy,” TAA NSW Acting CEO, Dr Adele Lausberg said.

“Members who are currently investigating or negotiating new energy supply arrangements should consider this PPA.”

Dr Lausberg said TAA members had a track record of being able to save money through aggregated or organisation-wide agreements, such as Workers Compensation premiums via hotel industry insurance firm HEM.

“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,” Dr Lausberg added.