Harvey Norman, IKEA lead big retailing buyers group looking for renewables

Source: Renew Economy

25th October 2019

A group of leading “large format” retailers have been given permission by the competition regulator to form a “buyer’s group” and are targeting renewable energy supplies in a major auction for their energy contracts.

The group of 41 of some of the best-known retailing companies, including Harvey Norman, Bunnings, Beacon,  and IKEA represent more than one terrawatt hour of annual electricity consumption across the country, and have been given permission by the Australian Competition and Consumer Commission to form a “bulk-buying” group.

They say this will deliver them an opportunity to negotiate a better deal than they could individually, and they will conduct a tender process for the supply of their aggregated electricity demand.

“Electricity is usually the third biggest cost for most of the businesses in this buyers group,” says Philippa Kelly, CEO of the Large Format Retail Association.

“Today’s authorisation means these businesses will have access to competitively priced and reliable electricity supply which will further secure their ongoing business operations.

“As part of the tender response we are hoping to have strong representation from the renewable sector. With an 11-year horizon, and the size of the supply deal, we think it’s big enough for some respondents to consider investment in new sources of generation.”

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