Would you like to know if your building or development can sell electricity and the peace of mind that you are not breaching the Electricity Act?
The Queensland Electricity Regulations authorises a Commercial Building Owner to bulk purchase lower priced electricity through the National Electricity Market.
By aggregating the common area and the total residential and any commercial electricity consumption, a Building Owner can on sell electricity to electricity customers within the building complex.
The Queensland Regulations include a requirement that electricity cannot be on sold at a Tariff greater than the Government Gazetted relevant Franchise Tariff.
The electricity is still delivered through the existing Distribution System (i.e. Energex cables and wires), therefore the quality and reliability of supply is not adversely affected by the implementation of bulk supply arrangements.
ERC provides all the necessary Professional Engineering and Administration to manage the bulk supply on selling arrangements on behalf of the Commercial Building Owner.
By transferring to the ERC Bulk Electricity Supply Arrangements, Commercial Buiding Owners have the option of maximising their return on investment through creating a revenue stream from on-selling electricity. Alternatively Commercial Building Owners may choose to provide partial savings as a tenantcy incentive to increase business viability for their tenants.
ERC does not make money from your electricity, we do not receive a brokering fee from any retailer and do not receive commission from any metering agent.
This approach ensures you receive an impartial recommendation for the appointment of your retailer following a thorough tender process ERC conducts on your behalf.
ERC's only revenue from facilitating the arrangement is the ongoing contract for the administration of the building complex which is paid for by the tenants.
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Energy Champions is a program that recognises people who are trained to implement measures to reduce energy costs in the home and workplace.
For more information visit www.energychampions.com.au
Frequently Asked Questions
ERC is pleased to provide answers to the following questions that are frequently asked when discussing the concept of bulk utilities supply with Commercial Property Owners:
Q How much profit can I make?
A You are not allowed to charge more than the government gazetted tariff so your profit margin will be dependant on the price we can negotiate to purchase for. You may also choose to pass on part or all of the savings achieved to tenants depending on your driver for proceeding with the process.
Q Will the reliability of my utilities supply change as a result of this conversion?
A No. The infrastructure supplying your property remains the property of the local utilities network providers and are maintained regularly. If there are any supply interruptions you simply call the same emergency number that you may have used previously for each utility.
Q Will tenants have to use the property owner as their utilities supplier?
A A tenant does have Power of Choice he purchase of utilities from the Property Owner can be clearly detailed in the lease agreement however a tenant has Power of Choice if they are able to secure an energy only offer from a retailer
Q How do I get connected if I am a new unit occupier?
A You simply obtain an application form from your leasing agent or ERC and return it to us by fax or mail so that utilities supply can be maintained . Please note that an application fee may apply.
Q What if a tenant's utilities bill looks too high?
A If your tenant has a bill query, we first check the meter reading data against their billing history. If the bill still looks too high they may request an audit of the site or invoice data to identify any faulty equipment and/or poor utilities management that may be contributing to the excess utilities usage.
Q What options will tenants have for paying their utilities bill?
A We are pleased to offer a range of payment options that suit the majority of businesses including Cheque, BPay, credit card etc. A direct debit facility is also provided.
Q What additional charges are likely to incur?
A A reminder notice fee may be charged to tenants for overdue accounts. If your tenants anticipate a problem, they may contact us promptly to avoid reminder fees and disconnection as a reconnection fee may be charged after disconnection. A security deposit may also be required.
Q Who will be sending the bill?
A ERC will send an invoice on your behalf to all tenants.
Q How long until I recover the funds to pay the bulk bill?
A Tenants will have 14 days from the invoice date to pay your bill, if not paid by the due date a reminder notice will be issued. If the bill remains unpaid a disconnection order may be processed.
Q Who owns the utilities reticulation assets such as the building main switchboard and unit meters at the end of the first contract period?
A The Owner retains ownership of the modified switchboard however the unit meters may either be owned by the owner or the unit meters may remain the property of Energex / Metering Dynamics who will rent the meters to the Owner.