Council saves big on new Electricity Contract - 11 August 2016

Centroc member councils have just struck a deal for electricity with savings in excess of $350,000 in the first year.  The new contract is for just under 1,000 small tariff sites across 12 participating member councils including Blayney, Cabonne, Central Tablelands Water, Cowra, Forbes, Lachlan, Lithgow, Oberon, Orange, Parkes, Upper Lachlan and Weddin.

The Orana Regional Organisation of Councils (OROC) also participated in the process, adding to the large buying power of the group.

“This is such a fantastic example of the efficiencies councils can achieve by working together.  Our Council alone has saved $19,052 on electricity for small tariff sites,” said Mayor Kathy Sajowitz.

“The procurement of electricity is such a complex area, so we engaged an external energy consultant, Energy and Management Services (EMS) to conduct the process.  The effort by Council staff has been minimal, with the Consultant managing the project from start to finish,” said Mayor Kathy Sajowitz.

“The savings of over $350,000 across the region equate to a percentage saving of around 13.46% for Oberon from the prices we are paying on the current contract,” Clr Sajowitz.

“Centroc has been lobbying the State Government to change the current procurement legislation to enable ROCs to do more great work like this.  The current legislation makes it quite hard for councils to get the best price for commodities like electricity, however we sought legal advice to ensure we were running a sound process,” said Mayor Sajowitz.

“This really does demonstrate the great work being undertaken by ROCs, especially when councils all band together to achieve such great cost savings.  Working with other ROCs, like OROC, is always something that we aim to do wherever possible,” said Mayor Kathy Sajowitz.