Through strategic procurement and tenant engagement, the City of Mitcham and Tandem Energy delivered cost savings, long-term energy certainty, and community-wide climate impact, strengthening council operations and empowering 54 building tenants.
Introducing City of Mitcham
The City of Mitcham is a forward-thinking local government in South Australia, committed to sustainability and community empowerment. Its energy strategy initiatives span both internal operations and external engagement with residents and tenants.
Our work, together
Tandem Energy has supported City of Mitcham to evolve its energy strategy over time, via two interrelated energy projects:
1. Strategic Energy Procurement Analysis
In late 2022 and mid-2023, Tandem Energy was engaged to evaluate electricity pricing offers from a bespoke energy retailer and the LGA offer for all councils. The goal was to identify the most cost-effective energy partner for Council assets, as well as associated risks and opportunities.
2. Tenant Electricity Valuation and Engagement
Building on the success of the Community Renewables Program, which offered residents solar and battery solutions with no upfront costs, the City of Mitcham sought to extend its Green Energy Plan to 54 council building tenants. The goal was to offer a 10-year fixed-cost energy plan based on 2023 consumption data.
Tandem Energy was tasked with calculating individual energy offers for each tenant using 2023 electricity consumption data and agreed negotiation principles, as well the development of a tenant-facing presentation contextualising the offer within broader energy market trends.
Opportunities identified
From the Procurement Analysis:
In addition to identifying the most cost-effective and innovative electricity pricing offer to suit Mitcham’s needs, our review of electricity consumption data also identified the following:
- Battery installations at key civil sites could mitigate peak pricing.
- Efficiency upgrades at a particular sports ground could reduce high-cost consumption.
- Smaller electricity retailers offer greater flexibility for future energy innovations.
From the Tenant Engagement:
- Energy Literacy: Tenants gained insights into their energy use and market context
- Cost Certainty: Fixed pricing over 10 years shields tenants from market volatility
- Community Engagement: Strengthens Council-tenant relationships and sustainability goals
Challenges
Procurement Analysis:
- Retailer Risk: Review of energy retailer capacity raised concerns about long-term pricing and operational capacity for the smaller energy retailer.
- Data Availability: Data gaps and inconsistencies required us to extrapolate electricity consumption and likely costing for some sites.
Tenant Engagement:
- Data Complexity: Each site had unique consumption patterns and billing histories requiring us to carefully review each electricity bill and consumption data.
- Communication: It was essential to simplify technical content for diverse audiences, both within Council and for tenants.
Outcomes
Mitcham was able to save approximately $31,000 over six months through strategic procurement, and deliver fixed-price certainty for tenants paying at least 20% less than current pricing over 10 years.
Strategic Procurement
- We estimated that the smaller retailer’s offer was 8% cheaper over six months than the LGA offer.
- Council gained a deeper understanding of energy market dynamics and contract risks.
- The analysis supported a more agile, innovation-friendly procurement approach.
Tenant Engagement
- Delivered tailored long-term fixed-price energy offers to 54 tenants based on 2023 data.
- Enhanced tenant understanding and confidence in Mitcham’s Green Energy Plan.
- Supported a smooth transition to new energy providers.
Next Steps
- Mitcham and Tandem continue to work together, most recently on an organisational climate risk assessment.
- Use smart meter data to identify further savings.
- Track tenant uptake and feedback.
- Explore further energy efficiency and solar opportunities.
- Begin planning for a long-term energy contract.
