The Department of Finance is embarking on an electrifying venture that could revolutionise how the Australian Public Service handles its power consumption, with a keen eye on achieving net zero greenhouse emissions by 2030.
There's a current lack of clarity regarding the extent of the APS's electricity expenditure and its renewable energy usage. However, this move signifies a proactive step towards transparency and efficiency. By consolidating the multitude of electricity suppliers into a single master contract, the government aims to streamline procurement processes, ensuring agencies aren't overcharged amid fluctuating energy prices.
By establishing a centralised public sector reference price, a domino effect of positive change nationwide may take place.
Another strategy APS may choose to consider is entering into fixed pricing contracts. By negotiating fixed pricing over the duration of the contract, the Australian Public Service can avoid the uncertainty of price rises over time, providing budgetary stability and predictability.
For businesses looking to streamline their energy and utility procurement, a fixed price contract can ensure financial prudence and contribute to individual ESG goals. Your organisation’s goals may not necessarily mirror those of the APS, but your goals may still commit to sustainability as a whole. Talk to Procurement Australia about our Energy solution portfolio to see what is on offer for your organisation.
Source: https://www.themandarin.com.au/237438-power-games-aps-forced-to-consolidate-electricity-purchasing/
