The Many Benefits Of Electricity On-selling19 October 2018
There are many benefits from the on-selling electricity in an embedded electricity network, but the over-arching benefit is control.
Control of the financial outcomes. Control over your pricing. Control of the distribution network. When you control your embedded network, your are able to ensure that your embedded network provider or embedded network operator (ENO) provides you with he flexibility and transparency to deliver an outcome that meets the strategic needs of your building.
The model Energy On believe works best involves the Owners Corporation (Body Corporate, Stata Community, etc.) operating as the owner of the network. Why? Because in this embedded network provider model, the surplus income generated from the on-selling process is income to the Owners Corporation. This income can then be used to reduce common area costs, or for maintenance, or for any other building related purposes. This makes the building less expensive to run, minimising the costs to owners, which can flow through to costs like rent and other tenant related costs.
In a well-designed, well-run and effective embedded network, no occupier, be they owner occupier or tenant, should ever be disadvantaged in the cost of the electricity supplied to them. As the embedded network provider, you can provide market competitive pricing or better. A well-run embedded network should not force customers into paying on time by direct debit or credit card to access the pricing. Depending on the size of your network, if you control the pricing, not only can you bring your common area power costs down to zero, you can be in a position to offer the best pricing in the market to residents.
An effective embedded network adds value to your building. Control of your embedded electricity network can lead to one single point and that is lower fees. Lower fees make properties easier to sell. Lower fees make properties cheaper to live in. Lower fees make investments less costly. Effective embedded network providers allow you to create value.
When you are an embedded network provider you become the electricity distributor for your site. Your electricity embedded network is the only competitive solution available within the monopoly distribution networks that operate in most states. This gives you control when it comes to important sustainability initiatives in your building, particularly the implementation of solar generation. As the distributor, you can manage your renewable generation to benefit not only common areas, but residents by utilising excess generation inside your building and not exporting it back to the grid.
More than electricity:
An embedded network provider can offer benefits beyond electricity. Recovery solutions for circulating hot water can deliver substantial costs savings and potentially generate additional revenue. Buildings with ineffective solutions for cold water, gas and air-conditioning should also look at the way that sub-metering and billing using the same principles as an embedded electrical network can help to recover costs.
These are just some of the ways that you can benefit from the on-selling process for electricity or other utilities. Energy On can help you to uncover the potential in your building, with a simple, free, evaluation. If you are interested in learning more, get in touch with us today. You can also learn about the elements of an effective embedded network by downloading our simple 7-step guide.
Learn more about Operator’s Role In On Selling Electricity and Other Utilities.