Power bills for households and small businesses could be slashed by hundreds of dollars a year under a re-elected Nick Reece as Lord Mayor, with Australia’s largest ever community-led bulk purchasing scheme for renewable energy set to be implemented across inner Melbourne, potentially capturing more than one million people.
We know that the cost of living in Melbourne is at an all-time high. Fuel, rent, mortgage payments, food and many other costs have kept rising and are putting many residents and small businesses under significant financial stress.
While electricity prices are driven by factors out of the control of local government, it doesn’t mean we shouldn’t be doing all we can to help those that need it most.
We also know that many people living and trading in the city don’t get the chance to install solar power or access renewable energy - this initiative will give them this option for the first time.
Under the MPower initiative, the City would use the collective buying power of households and small businesses to secure the lowest possible rates for renewable electricity. It’s a way that everyone can take greater control of their energy costs and contribute to lowering emissions.
The City will also look to ensure that residents and small businesses within the M9 group of inner Melbourne councils can also participate in the initiative.
These Councils represent around 30 per cent of the Victorian economy, and if they participate it could potentially bring more than one million people and many small businesses into the scheme, which would mean bigger savings for everyone. In emissions reduction, it would mean removing the equivalent of one million cars from the road.
By aggregating demand, the City of Melbourne will negotiate a bulk electricity purchase agreement that could save participants hundreds of dollars each year. Unlike some other schemes, the City of Melbourne will not charge any fees for organising these agreements, ensuring that all savings are passed directly to consumers.
The City of Melbourne will begin consultations and negotiations for MPower in 2025, with the first contracts expected to be available in 2026. The MPower initiative is expected to cost $2 million in addition to staffing costs, with the funding to be reallocated from within the existing City of Melbourne budget.
Quotes attributable to Lord Mayor Nick Reece:
“The MPower initiative will give more than one million Melburnians the chance to save money on their energy bills and help make the switch to renewable energy. Bulk purchasing works and we know that it can reduce power bills by hundreds of dollars a year, while also delivering big cuts to greenhouse gas emissions.”
“We know bigger is better when it comes to bulk purchasing so we will seek to partner with other M9 Councils and build the biggest community-led energy purchasing agreement in Australia.”
“The City of Melbourne will run the bulk purchasing agreement, taking on the research, negotiation and administration of the scheme – giving people comfort that they all they need to do is sign up to get cheaper power.”
Quotes attributable to Councillor and Deputy Lord Mayor Candidate Roshena Campbell
“Residents and businesses are being crippled by energy bills and we have a plan to slash them and deliver desperately needed savings.”
“Small businesses are telling me they want to see local government doing everything it can to ease cost-of-living pressures – this is exactly what the MPower initiative is all about.”
“Local government is not the cause of increasing electricity costs, but we can help provide a solution.”