Strata Residential
The Building: 74 residential apartments, 3 shops and 1 common property supply.
The Exit
This Building was tied to an embedded network contract that was no longer serving the building. The NRG Company reviewed the agreement and found hidden auto-roll clauses that would have locked the Owners Corporation into the same deal for many more years.
We negotiated an early exit with the previous embed network provider, and managed the entire transition from start to finish.
The Tender
With the exit secured, we ran a full tender for the building’s main electricity supply. More than 15 retailers were invited to price it, and from the top five offers received for a 48-month term. EnergyAustralia came out ahead of every other retailer, including Origin Energy.
Rank | Retailer | Estimated 48-month cost |
1 | EnergyAustralia | Lowest cost (winning offer) |
2 | AGL | 5.7% higher |
3 | Momentum | 6.1% higher |
4 | Shell Energy | 9.6% higher |
5 | Origin Energy | 11.1% higher |
Based on total electricity costs over the 48-month term, using the building’s past 12 months of usage. Actual costs will vary with usage.
From the tender results we calculated what the Owners Corporation could on-sell electricity for. We gave the committee every option for every possible new rate, including exactly how much they could reduce both the common property and residential tariffs. The committee decided to reduce all tariffs by 14%, which leaves a surplus that flows into the building’s capital works fund.
The Results
- An early exitfrom a contract that would have auto-rolled for years.
- The best price in the market.EnergyAustralia’s offer was an estimated $26,000 cheaper over 48 months than the highest offer, from Origin Energy.
- A 14% reduction on all tariffs,residential and common property, chosen by the committee.
- A surplus paid into the capital works fund,instead of into a retailer’s pocket.
A seamless New Year’s Eve changeover
The previous provider’s last day happened to be New Year’s Eve. The NRG Company managed the entire project, and the changeover went through with no power outages and no other issues.
We run it, so you don’t have to
We manage the network’s day-to-day operation on the Owners Corporation’s behalf. That covers meter reading, invoicing, credit management and compliance, so the committee carries none of that burden.
Is your building stuck in an embedded network contract that keeps rolling over?
Whether your building is brand new or has been in an embedded network for decades, we can help. Let us review your building and show you what’s possible.