For many Queensland hotels, 2027 may feel a long way off. However, when it comes to electricity procurement, planning ahead often provides greater flexibility and access to more favourable market opportunities.
Energy markets move well before contracts expire. Retailers continuously price future electricity based on expected wholesale market conditions, network costs and supply outlooks. As a result, businesses do not need to wait until the final months of a contract to begin reviewing their options.
Current market conditions remain relatively favourable, with forward electricity prices continuing to trade well below the highs experienced over recent years. While no one can predict exactly where prices will move next, history has shown that businesses with more time available before renewal generally have greater flexibility to monitor the market and secure pricing when conditions are favourable.
Why start preparing now?
Beginning the process early doesn’t mean committing early.
Instead, it provides the opportunity to:
- Understand when your current contract expires.
- Review your current pricing and network tariff.
- Monitor market movements over time rather than making decisions under time pressure.
- Compare offers when the timing is right.
- Develop a procurement strategy that aligns with your business objectives.
For hotels with larger energy consumption, even relatively small changes in electricity rates can have a meaningful impact on annual operating costs.
Every business is different
The right time to secure a contract will vary depending on your current agreement, energy usage and risk appetite. Some businesses benefit from locking in pricing well ahead of expiry, while others may choose to continue monitoring the market before making a decision.
Having a plan in place simply provides more options.
Looking ahead
With wholesale markets continuing to evolve, increasing renewable generation, battery storage and changing network tariffs are all influencing future electricity pricing.
For Queensland hotels with contracts ending during 2027, now is a sensible time to understand your current position and begin planning ahead. Early preparation can help avoid rushed decisions and provide greater confidence when renewal discussions begin.
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 Jordan Manning, Senior Energy Consultant, on 0425 983 338 or via email at jmanning@tteg.com.au.
