Energy is one of the largest operating costs for hotels, and how it is managed directly impacts hotels profitability. Timing of when a contract is secured is crucial, as even small shifts in market conditions can materially impact costs. At the same time, billing errors can go unnoticed, quietly increasing expenses over time.
At Sheraton Grand Mirage Resort in Port Douglas, a review highlighted how significant these gaps can become.
How TTEG Helped
The resort engaged Trans Tasman Energy Group (TTEG) as part of a tender process involving multiple brokers.
Trans Tasman Energy Group implemented a strategic, results-driven approach. The existing contract was benchmarked against current market pricing, and a competitive tender process was conducted to evaluate options. A comprehensive audit of historical electricity bills was also conducted simultaneously. This ensured that both future pricing and past costs were thoroughly assessed.
What Was Found
The billing review identified discrepancies that had previously gone undetected. Once corrected, this resulted in $35,500 being recovered and credited back to the resort.
In addition, the procurement process delivered $196,192 in savings. This reduced the cost per kWh and improved overall commercial terms, including metering arrangements, providing greater cost certainty moving forward.
A Strategic Approach
A combined approach of strategic procurement and bill validation provides both immediate financial benefit and long-term control. By addressing these together, businesses can reduce current costs while also putting a structure in place to prevent unnecessary future expenses.
In a market that continues to shift, influenced by renewables, fuel costs, and network dynamics, this level of oversight is becoming increasingly important for hospitality operators.
Next Steps
If your hotel has not had a detailed review of its energy contract or billing, there could be opportunities to uncover errors, reduce costs, and gain greater certainty.
A simple review can quickly identify whether your current position reflects the market, or whether savings are being missed.
If you would like to review your hotel’s energy strategy or explore potential cost-saving opportunities, contact TTEG for a free energy assessment by reaching out to Christian Levett, Senior Energy Consultant, on call 0416 832 872 or email clevett@tteg.com.au