Lord Mayor Nick Reece outlines bold plan to slash power bills by bulk-buying renewable electricity

One million residents and small businesses across Melbourne’s inner suburbs could have their power bills slashed under an ambitious bulk-buying energy scheme proposed by Lord Mayor Nick Reece.

Lord Mayor Nick Reece and his running mate Roshena Campbell are pledging to roll out a renewable power purchasing plan. Picture: David Smith

Up to one million residents and small businesses across Melbourne’s inner suburbs could have their power bills slashed under an ambitious renewable energy plan unveiled by Lord Mayor Nick Reece.

The Herald Sun can reveal that, if elected in the October council election, Mr Reece and his running mate Roshena Campbell will roll out a renewable power purchasing plan in a bid to help Melburnians save on their energy bills.

The scheme, which is similar to one used by the City of Sydney as well as the owners of Melbourne Airport and Southern Cross Station, effectively bulk-buys renewable energy to secure a lower price for end users.

Under the initiative, the City of Melbourne would use the “collective buying power” of households and small businesses – who may not have the ability to install solar power – to secure the lowest possible rates for renewable electricity.

The scheme would effectively bulk-buy renewable energy to secure a lower price for end users.

According to Mr Reece, the scheme – dubbed MPower – could become Australia’s largest ever “community-led” bulk-purchasing scheme for renewable energy as it could benefit more than one million people.

This would be possible by inviting the M9 councils – which neighbour the City of Melbourne – to participate.

They include the cities of Yarra, Stonnington, Port Phillip, Moonee Valley, Maribyrnong, Merri-bek, Hobsons Bay and Darebin.

The Herald Sun understands that, under similar arrangements, participants have shaved up to 40 per cent off their power bills.

The scheme is expected to cost Town Hall about $2m as well as staff costs, with funding to be reallocated from within the existing City of Melbourne budget.

The M9 councils.

Mr Reece said the initiative would “give more than one million Melburnians” the chance to save money on their power 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,” he said.

“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.”

Ms Campbell added: “Local government is not the cause of increasing electricity costs, but we can help provide a solution.”

The policy is Mr Reece and Ms Campbell’s second cost-of-living pledge, having promised on Sunday to reduce the cost of taking a splash in the city’s pools to $2.

The City of Melbourne would begin consultations and negotiations for MPower in 2025, with the first contracts expected to be available in 2026.

The Herald Sun understands that the council would go out to tender to secure the best deals possible, with all energy purchased under the agreement to be 100 per cent renewable.

Zaim Ramani is Anthony Koutoufides’s deputy lord mayor running mate. Pictured with Marcus Bontempelli (left). Picture: Instagram

The hip-pocket policy comes as the mayoral race begins to heat up, with Carlton champion Anthony Koutoufides declaring on Wednesday he will run for lord mayor and Mr Reece and five other councillors controversially banning e-scooters on Tuesday.

The Herald Sun can confirm that commercial property director Zaim Ramani, 42, will be Koutoufides’s deputy lord mayor running mate.

“I’ve known Kouta for a long time so we thought we’d take the chance to do something to revive our once vibrant and safe city,” he said.

Mr Ramani, a Collingwood supporter, is director of ZLM Property Group based in Thornbury.

Koutoufides ensured eligibility to run for council by changing his Kouta Fit company’s principal place of business address on August 1 from a house in the northern suburbs to an office suite in Lt Collins St.