› Flat Chat Strata Forum › Community Title › Manager profits from gas stored in our tank › Current Page
Hi Robert
There is one large LPG tank on the site, the property managers are billed by Elgas to keep it filled and then they on-sell to all lot owners. There is a gas meter on each lot just like for natural gas in a suburban situation. Being situated on the Mid North coast of NSW there is no natural gas provided in this region, it is all LPG. It is what is known as an embeded network where they are acting as an energy retailer. There is some very interesting reading regarding this on the following website.
https://www.aer.gov.au/retail-markets/retail-exemptions
I have raised my concerns of this with both the Property Managers and with the EC but they have failed to even acknowledge any of this! They have blatantly defended their right to make a profit on the on-selling of gas.
Incidentally I have received quotes of supply from Elgas and Origin, both are very similar and Elgas is the current supplier to the site already. The rep indicated unofficially that they would be paying the same or similar rates as I am eligible for therefore I would be confident the price difference is simply their margin.
The AER themselves were of little help when I contacted them as they said verbally that they don’t deal with LPG, the NSW based energy ombudsman was the same, however they took the details of my complaint and said they would escalate it as it is not the first time they’ve come across this problem with LPG. Interestingly all terminolgy within their website and publications there is no reference to LPG not being covered and the blanket term used is just “Energy”. Legally I don’t see why LPG would not be covered by the same laws.
I strongly feel that the Property managers are particularly defensive about the topic as they would be making a considerable margin for the whole site and the EC seem to be supportive of this scheme. There is no disclosure to the owners within the scheme of this which I am not sure is legal?
Any advice or suggestions would be greatly appreciated!
Cheers
D