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Respite ahead of energy price hike

A body corp management company is helping unit owners save anywhere from 10% to 40% per annum on their electricity bills by enlisting an independent consulting company to audit customers’ accounts in the lead up to energy price hikes in Queensland.

Energy Options Australia has already begun auditing complexes in Brisbane and the Gold Coast and providing tailored recommendations and referrals to combat the looming 22.6% hike in fees.

Grant Mifsud, sustainability project manager at Archers Body Corporate Management, said the audit recommendations, that ranged from reviewing a customer’s existing tariff to referrals to different retailers or electricity arrangements, would lessen the impact of the power price rises for their customers.

Andrew McNair, principal consultant at Energy Options Australia, said the account audits they undertake are simple and in most cases don’t require an upfront expense. “Most schemes are not required to pay any audit fees until they begin to see their savings,” Mr McNair said.

The Docks is a 148-lot residential high rise in Kangaroo Point which provides a home for both long- and short-term tenants. The complex consists of two towers containing a combination of studio units and one and two bedroom apartments. Originally, each apartment and the body corporate common area had its own separate electricity arrangements. The body corporate had previously initiated some savings for owners in the common area under a market contract arrangement with the retailer and it was determined to explore options for saving more money throughout the rest of the complex.

In 2011, the body corporate engaged Energy Options Australia to investigate the potential savings that bulk electricity supply could provide for its residents. Under this arrangement, the entire complex’s usage would need to be combined to deliver the lowest possible costs.

Energy Options Australia liaised with the body corporate to manage the bulk conversion process and no unit owner was required to pay a fee to terminate an existing contract. It quickly identified potential savings of up to 35% per annum for all residents compared to the standard regulated tariff charges. After establishing all costs for the project the body corporate sought approval at an annual general meeting and voted to proceed.

Project costs will vary depending on complex size and most costs can be recovered over a defined period of time. The only upfront cost incurred by unit owners was the cost to modify the building’s meter to capture the total consumption.

The building conversion was carried out successfully in July 2012. Initial reviews after the bulk conversion showed savings of around 34%. Because The Docks’ body corporate has chosen to recover the conversion costs over a period of three years some of the savings will be held back until project costs are paid. For this period of time, savings of approximately 26% are passed on to all residents. This is well above any discount available from an energy retailer for an individual resident.

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