- This topic has 3 replies, 4 voices, and was last updated 1 year, 1 month ago by -.
-
Topic
-
I am in unit block of around 80 apartments. Our contract for electricity is about to expire and I was wondering if we should get a Broker to tender for a new supplier? I have checked our electricity bills and it seems quite different to a normal household bill.
-
Replies
-
This may be more complicated than it seems. Basically you will be paying for two lots of electricity – one for common property through your levies and the other for personal usage. The personal usage charge could include an element for the hot water that you have run through your taps. Or not.
And the common property charges could be locked into a long-term embedded network contract that can’t be changed for a few years. Or not.
Everybody has a slightly different set of circumstances so the best thing you can do is talk to someone on your strata committee and ask them what all the charges mean and how much flexibility you have with changing energy providers.
You could be free to go to whomever you like for personal power, and your common property deal could be coming up for renewal. You might even be getting a better rate for that through your strata manager. Like I said, it’s complicated and the set-up in your block could be very specific.
As for getting a broker, it might be just as good to do a quick trawl through the comparison websites. Simples, as the annoying meerkat says.
If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. 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. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
You mention “I have checked our electricity bills and it seems quite different to a normal household bill.”. That would suggest you have a Smart Meter and have a detailed understanding of your electricity usage and behaviours. That will help in assessing potential suppliers. If not, I would suggest you organise a Smart Meter for your lot. In NSW at least, there should not be a charge for that. Then work out your patterns.
Armed with that information, then assess the options. And there are LOTS of options. The comparison sites can be helpful, but they can also be a somewhat blunt tool. Some brokers or consultants connect with your Smart Meter, analyse your data, and provide recommendations. That may be a good option for you, especially if your bills are high – the savings will pay back the cost quickly.
If you’re also looking at the common area electricity via your EC &/or strata manager, in a building of that size, a broker may also add value quickly. Bring the broker in at the same time to do multiple lots, and you may make some savings on the broker costs too.
If you have your own personal electricity account, go to the Australian Government’s energy made easy web site:
https://www.energymadeeasy.gov.au/
You need to have your electricity invoice at hand so that you can enter your NMI. That number is shown on your electricity invoice. The web site will ask a few questions about how long you lived there. It will go through your last twelve months of electricity usage and give you a list of electricity plans which you could consider.
I use this web site at least once a year to see if I am on the cheapest plan available. Be prepared to change electricity supplier if a cheaper plan is available.
As secretary of a strata plan, I have also entered the NMI of the strata plan’s electricity invoice to find a better plan. As stated earlier, if you are locked into a long term plan or your hot water heating is part of the strata’s electricity plan, you don’t have as many options.