ACCC Authorise Large Retail Electricity Negotiation
The Australian Consumer and Competition Commission (ACCC) has confirmed its authorisation of a determination permitting Large Format Retail (LFRA) members to jointly tender and negotiate cheaper electricity power prices – benefiting retailers such as Costco, IKEA, Bunnings and Officeworks.
Following the draft determination released in September, the consumer watchdog provided final authorisation for competing Large Format Retail businesses to form a national collective buying group to negotiate better electricity prices.
The authorisation runs for a period of 11 years, and within that period electricity consumption must not surpass 1% of the total state or territory energy consumption.
Philippa Kelly, CEO of the LFRA, said members could ‘potentially pass on’ savings in the form of lower prices, investments into product offerings or employing additional staff.
Sentiments echoed by ACCC Commissioner, Stephen Ridgeway who claimed that collective tendering is ‘likely to save retailers time and money compared to individual negotiations’.
Renewable energy is also on the agenda, with Ms Kelly suggesting a strong representation into the energy generation sector, as part of the tender response, especially considering in 2018, $200 million was spent on electricity by the combined 41 members of the LFRA.