Embedded Electricity
The Strata Plan – 104 residential apartments, 5 retail shops and 2 common property supplies.
This Building was locked into a long-term embedded network contract that residents never had a say in. They had no control over their own infrastructure and none over what they paid for electricity.
The Owners Corporation asked The NRG Company to review their embedded network contract and find a way out. Our team combined its technical and legal know-how to identify a viable exit pathway. We wrote to the network’s retailer through the strata manager and negotiated the exit.
The retailer wanted a payout fee for the electricity meters. We examined how that fee was calculated and found it would be considerably cheaper to remove the meters and hand them back. So we did. The NRG Company then installed replacement meters throughout the building at no cost to the Owners Corporation.
The results
- $0 to exit the old contract, and $0 for the new metering equipment.
- A full tender processfor the building’s main electricity supply. We gave the committee every result along with our recommendation, so the decision stayed with them.
- Over $20,000 returned to the Owners Corporation in the first six months.With the new wholesale rates in place, the committee chose to keep residential tariffs unchanged, and the surplus went back to the building.
- Metering errors found and fixed.During the meter replacement, we discovered that more than 15% of meters were assigned to the wrong apartment. Those residents had been paying for their neighbours’ electricity.
We run it, so you don’t have to
The NRG Company manage the network’s day-to-day operation on the Owners Corporation’s behalf. That covers meter reading, invoicing, credit management and compliance. We also obtained all the necessary licences and ombudsman registration for the strata plan, so the committee carries none of that burden.
Is your building locked into an embedded network contract?
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.