The size and utility usage volumes of strata communities give Body Corporates the purchasing power to buy utilities in bulk on behalf of their community.
It makes sense for Body Corporates to use this collective power to purchase utilities in bulk to operate common areas and pass on the benefits to unit holders. This is known as bulk utility supply or bulk supply.
You’ll find that there are a number of utilities that can be purchased in bulk and then supplied to you through your Body Corporate (BC).
These may include some or all of the following utilities:
– Electricity: The BC pays for the electricity costs up front and then recovers this from residents based on their actual metered consumption.
– Hot Water: The BC own and maintain a hot water plant onsite which provides hot water to all the individual areas of the community. The Body Corporate pay for the energy used to heat the water which is then recovered from residents via their individual hot water meters and recorded consumption.
– Air Conditioning: The BC own and maintain a chilled water plant onsite which provides air conditioning to all the individual areas of the community. The Body Corporate pay for the energy used to maintain the chilled water plant which is then recovered from residents via their individual air conditioning meters and recorded consumption.
– Gas: The BC pays for the gas usage of the community up front which is then recovered from the individual residents based on metered or sometimes unmetered consumption.
– Water: The BC pays for the water usage of the community up front to their local city council. These costs are then recovered from residents based on their individual metered consumption.
It will come as no surprise that electricity is one of the most common types of bulk utilities offered by Body Corporates.
Due to the high-volume usage from multiple residences, strata title communities can buy electricity in bulk from their chosen provider on a single or bulk bill.
It’s great news for stratas as it means the Body Corporate can make significant savings on the running costs of the common areas as well as offer low electricity prices to the residents of the strata community.
There is one market meter that records all the electricity used by the strata community site from the grid. This is also referred to as a ‘gate meter’ or ‘parent meter.’
Each residence has an individual electricity meter installed, which is owned by the Body Corporate, to record their consumption. The individual meters are read on a regular basis (monthly or quarterly) and each unit holder is billed according to their recorded consumption.
This metering configuration, where the Body Corporate is in charge of the gate meter, is known as an embedded electricity network.
The Body Corporate will set the rate that you’re charged for your electricity. This is based on the costs that they incur when they buy the electricity on behalf of your community from their electricity retailer. Your strata community’s Body Corporate might offer to supply you your electricity under a bulk supply arrangement.
So, what’s in it for you?
There are a number of benefits associated with being in an embedded network with bulk supply power.
– Reduced electricity costs for Body Corporates: By purchasing electricity in bulk, your Body Corporate will pay significantly less than the current standard retail tariff, available to small market businesses.
– Lower electricity bills for residents: With reduced electricity tariffs, Body Corporates will be able to pass the savings on to you.Residents, this means that you’ll have the opportunity to buy electricity from your Body Corporate at a reduced rate than the best price you can secure directly from another retailer.
– Save with lower service fees: When you participate in an embedded network your fixed costs (service fees) will be reduced on your bill and will generally be lower than offers from other retailers.
– Save time and effort: You don’t need to shop around for an electricity provider – all the work has been done for you. You won’t need to remember to renegotiate contracts with your retailer. Put your feet up and have a cuppa, knowing that the heavy lifting has been done for you.
Of course, you do still have the power to choose an alternate electricity retailer if you don’t wish to participate. You can compare energy plans on the Australian Government Energy Made Easy website.
Being part of a strata community presents so many rewards, not to mention an opportunity to save money on your utility bills by using the purchasing power of the community.
Your Body Corporate may engage an energy management company to manage administrative tasks like meter reading, invoicing and payment enquiries for them. If you’re lucky, your Body Corporate will engage Silver Asset Services – we’re experts in utilities management for strata communities.
Does your Body Corporate offer these benefits?
We’re here to help. If you have any questions about how utilities are managed within your strata community get in touch. Contact Silver Asset Services and speak to one of our experts today.
We can help your Body Corporate to get the best utility rates. Feel free to pass our contact details on to your Body Corporate Manager or Strata Manager.
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