What are the advantages and disadvantages to the tenants and body corporate wanting to on-sell electricity?
A. Advantages: – Cost reduction – electricity prices can be negotiated and a market rate obtained at a lower rate than that of a current market tariff rate. The average weighted cost of electricity + network and other charges is usually lower than the cost to a customer on tariff. – Protection – A lot owner or tenant cannot be charged any more than the current market gazetted tariff rate, so the owner or tenant is protected by this legislation under the Electricity Act. – Surplus – A body corporate cannot make profit from the sale of electricity. Revenue generated (surplus) can go back into reducing the common area electricity account that could reduce levies for all lot owners or it can go straight back as savings passed directly to the tenants as an additional discount on their electricity accounts (savings they probably would not achieve by negotiating with a retailer direct). – Pricing control – A body corporate can set the rate it wishes to charges lot owners or tenants as long as
