- This topic has 11 replies, 6 voices, and was last updated 1 year, 4 months ago by .
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I’m in a group of six units in SA with a self managed strata corporation. Is it possible for us to have one connection to SAPN instead of each unit having its own connection? That way we’d only pay one supply charge and divide it between us. The strata corp would get a cheap electricity plan and each unit would have its own consumption meter behind the SAPN meter for billing. If someone wants to get out, they can just rewire the switchboard back to having their own SAPN connection.
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What you propose is called an ‘Embedded Network’. The Australian Energy Regulator (AER) has very stringent rules about how such an embedded network must operate. I think it would be doable but an early step to take would be to read their guidance.
There is a change in the air. As renewable energy rolls out, it is going to be more important to respond to fluctuations in supply to avoid having to unnecessarily overprovision for that supply. The traditional off peak times are an anachronism tied to the days when all our electric energy came from fossil fuels. Yet retailers still charge this way. Now the best time to buy energy can be in the middle of the day when the wholesale price can be as low as 5 cents/kWh.
In Sydney, I buy my power from [company name redacted] which gives me access to wholesale prices (12 cents on 15 February at 1045 hours) in exchange for a flat monthly flag fall) This requires a smart meter and an app but will be how electricity is consumed and billed for more people in the future.
The supply charge should be dealt with by a separate charge to the body corporate for supply only with each occupant being billed for their usage. Choosing the time unit occupants use higher load appliances is limited but there is scope nevertheless.
- This reply was modified 1 year, 4 months ago by .
…Choosing the time unit occupants use higher load appliances is limited…
This is the bit that worries me about sharing any electricity tariff with different rates at different times. What happens if some are very diligent about shifting loads to times of lower cost while other can’t be bothered? Would it lead to discord? Is there a mechanism for equitable cost sharing? On a flat tariff it is easy. A simple kWh counter in line with each unit allows for pro rata sharing.
BTW. EV charging and water heating are substantial loads that can usually be shifted fairly easily.
Embedded networks are clearly uncompetitive and only advantage the retailers. As one new to the concept, I can’t understand how they still exist given the constant political attention to the burden of energy costs.
Listohan
there is nothing wrong with a good embedded network.
The strata buys electricity at a wholesale price. Each lot has a separate meter. Each lot is charged a retail rate. The strata pockets the difference, which ultimately goes back to the owners. You need a network manager to do the meter reading and billing.
Unfortunately many new buildings are sold with an embedded network manager thst does not advantage the strata. It’s akin to selling the building management rights on a long contract.
I believe that the law says you must be allowed to change your energy provider if you wish, regardless of who owns the rights to the embedded network. That allows for healthy competition, but it only applies to power supplies.
If your developer has done a deal with, say, a ventilation company to install fans for your garage areas for free in exchange for promising to dupe the owners corp into a decades-long maintenance contract, then it is definitely NOT to the owners’ advantage.
The worst example I have heard of is a company installing storm water overflow tanks for free in exchange for a 99-year agreement that they would get the filter maintenance contract, with a guaranteed 5 per cent rise every year. Just to save you getting your calculators out, with the interest compounding a $5000 contract in year 1 would cost just under $8000 in year 10 – an increase of 60 per cent over 10 years.
Nice work if you can get it.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
Regarding overload and optimising cheap electricity (if there is such a thing anymore) I believe there are centralised distribution systems available that will share the power supply to where and when it’s needed, slow down or shut off the car charging during peak domestic usage hours and otherwise use power when it’s at its least expensive.
EVSE Australia is just one provider that will install such a system. There are others but not all have dedicated unit block systems. This is one instance where an embedded network may be exactly what you are looking for – the provider installs the equipment and on-sells the power at a profit and your EV owners get it on a user-pays basis.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
It’s definitely possible – as others have said, it’s called an embedded network. Working out if you would save money overall is very complicated – large customers are charged very differently to smaller customers.
If the embedded network is run for the benefit of the owners it can be worthwhile – not every embedded network is bad. If it’s run by an external for-profit company who has to recoup their investment in meters/etc then they can be bad for the owners.
I’ve looked into it for my work strata building. For us there is the opportunity to add a 100kW solar system on the roof and then sell that power to owners via an embedded network. Pros are that the body corp gets retail rates for their solar (so 40c/kWh in peak times) rather than the feed in rates (10c or less).
Cons are that the overall billing depends a lot on the maximum demand charge. This is driven by the maximum usage in a 1/2hr peak period and then billed at that (or a higher) Rate for the next 12 months. So if you have one super hot summer’s day where everyone has their AC cranking at peak times and the solar is offline you end up with a massive maximum demand charge that you’re stuck with for the next 12 months.
If you’re serious about it my suggestion would be to install a 3 phase power monitor on the incoming mains to record the power usage for the next year or so. That will allow you to see what your maximum demand will be and that will allow you to get a better idea of the overall economics.
I think there is also an issue of any profits made being taxable in the hands of the individual owners but I’m not a lawyer and it all got too hard to understand very quickly.
Hicies 1973
Its easy and hard to arrange your own electricity supplier in an embedded network
You do not need a new meter. The embedded meter is used – its just that the embedded network manager send the billing units to your preferred supplier.
Thats the theory
In some cases, the embedded network manager may charge high, but not exorbitant meter reading costs that make any savings disappear
And remember that an embedded network supplier suppliers electricity at a regulated price. They can only charge for usage and supply at a rate regulated by the government.
So unless you are able to obtain electricity at a wholesale rate (most residential consumers cant) , its not worth it.
As for time of use charging. Embedded network meters are of the smart kind. The manager can choose to bill for time of use, if thats what the network agreement says
As I said earlier, embedded networks can have benefits for the individual owners and the Owners Corporation if the deal is a fair one.
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