The Australian Hotels Association (South Australia) represents and protects the commercial interests of more than 630 hoteliers throughout South Australia. AHA SA members range from small country pubs to five-star hotels and resorts.
With the cost of energy increasing exponentially across the country, the association was interested in exploring how it could help its member hotels to reduce their energy costs.
How we helped
Choice Energy partnered with AHA SA to secure a collective energy procurement tender comprised of 47 hotels. The tender comprised 29,000,000 kWh of annual consumption and over $8.4m of energy spend.
Choice Energy executed the contract at the bottom of the market, meaning further savings for the customer. We also aligned all contracts to reflect their preferred start date with the winning retailer price locked in for two years. Our offering was $377,000 cheaper than a competing offer from a rival energy.
By arranging independent metering and monitoring for the group, AHA SA member hotels have also levered sunk cost and can now benefit from network tariff reviews, demand reviews and tackle their power factor costs.
As a result of the group tender, AHA SA member hotels saved more than $2 million over two years, when compared to their previous contract.
47 hotels benefited from energy cost savings.
The contract secured was 15% cheaper than if secured outside of a group buying arrangement.