Benefits of On-Selling Electricity as an Owners Corporation21 July 2020
An Owners Corporation is responsible for the day to day running of their buildings and handling all common area issues. This generally includes how electricity is consumed throughout the building. .
Most Owners Corporations buy their electricity in bulk and on-sell to tenants, residents and businesses. That said, however, sometimes Owners Corporations do not have visibility of the buying in bulk and on-selling process, and sometimes their building isn’t setup to do so..
On-selling electricity through the Owners Corporation is known as an Embedded Electricity Network, which has numerous benefits for the Owners Corporation as well as their tenants.
Embedded Electricity Network
An Embedded Electrical Network can be found in multi-tenant developments such as shopping centres, apartment buildings, retirement complexes and industrial estates.
The Owners Corporation installs a parent meter and purchases electricity for their entire property as a ‘large market customer’. All electricity usage is compiled at the parent meter, with each tenant fitted with their own private meter.
Using an Embedded Electricity Network allows the Owners Corporation to have a whole site supplied by one electricity company within the one account. This is becoming increasingly common with residential apartment buildings across Australia.
Value for the Customer
By on-selling electricity through the Owners Corporation, Energy On can provide significant value to the Owners Corporation and residents.
As the Embedded Network Operator, Energy On operates the utility network on behalf of the Owners Corporation, managing the entire service. This means site feasibility, evaluation and planning, implementation, meter reading, reporting, customer service, invoicing and financial management is all managed by the network operator. This means the Owners Corporation of multi-dwelling apartment buildings no longer need to be concerned or burdened with utility management duties.
Owners Corporations benefit from an Embedded Electricity Network, as the network model Energy On has created involves the Owners Corporation operating as the owner of the network. This means the surplus income generated from the on-selling process goes directly to the Owners Corporation. This income can then be used to reduce common area costs, or for maintenance, or for any other building-related expenses. This makes the building cheaper to run and maintain.
Market Competitive Pricing
It’s easy to see how electricity on-selling can offer significant cost savings for both residents and Owners Corporation.
Tenants receive the convenience of being part of a single account, allowing the property owner to sell electricity to each tenant at a more competitive rate.
Whether for new developments or existing properties, the network operator can manage the on-selling of electricity and other utilities to ensure supply contracts, network rates and building efficiencies are at their optimal, without incurring additional costs to residents.
With Embedded Electricity Networks, the on-site metering and infrastructure are installed, owned, and operated by the network owner and manager. The owner of the site becomes the customer of the retailer, instead of each occupant of the premises having an individual contract with any number of retailers. This traditionally leads to better pricing for all.
Through an energy consulting appointment with Energy On, we can help Owners Corporations realise the potential for Electrical Embedded Networks. To find out how you can set up embedded networks within your properties, contact Energy On today.