City set to join other councils in attempt for cheaper power deal

CITY of Coffs Harbour will move to join other councils and lock-in a power supply deal set to deliver “significant financial benefit”.

At its meeting on 26 February, Council resolved to give the General Manager delegated authority to enter into a Power Purchasing Agreement.

The City currently buys ‘black’ power from Shell Energy for small sites and street lighting, and from AGL for large sites.

Both of these contracts are set to expire on 30 June 2027.

“Our membership of the Mid North Coast Joint Organisation – which I am passionate about – has opened the door for us to enter into a Power Purchasing Agreement which should lead to considerable savings,” Mayor Nikki Williams said.

“Further, the agreement would see us lock-in fixed rates which will provide greater budget certainty and shield us from any market volatility.

“The proposed new ‘green’ power arrangement will also help the City with its renewable energy targets.”

The City will look to join the Southern Sydney Regional Organisation of Councils (SSROC) power-buying group through a scheme known as the Program for Energy & Environmental Risk Solutions (PEERS).

SSROC’s current agreement – which covers 25 Councils – is with Zen Energy and there are plans to extend that arrangement out to 2030.

Past participants in the scheme have saved from 22 to 27 percent on electricity costs, and SSROC is inviting additional Councils to sign up for the next planned phase of the contract with Zen.

“The buying group’s bargaining power will potentially increase if more Councils come onboard,” General Manager Murray Wood said.

“Certainly the group will be able to achieve superior commercial terms to anything the City could do if acting in isolation.”

Under delegated authority, the General Manager will now move to accept the identified preferred offer for the purchase of electricity supply at small and large sites, and street lighting, for the period between 1 July 2027 to 31 December 2030.