Electric shock for body corporates

ZEN founder Vivien Griffin. Supplied.

By Zero Emissions Noosa, Inc.

Zero Emissions Noosa (ZEN) Inc has issued a warning to body corporate committees and owners within embedded networks to be aware of certain business practices related to their electricity supply.

“ZEN Inc has become aware that a number of body corporate committees with embedded networks are being asked to sign new electricity price increase contracts at very short notice,” ZEN Inc spokesperson Vivien Griffin said.

“We are urging body corporate committees in this situation to contact their supplier immediately and seek a review.

“The contract terms of one particular Embedded Network Operator (ENO) and retailer seem to allow the company to increase the rate, even where an energy rate had been set for a particular term.

“As advised to ZEN Inc, these strata properties are being given very short notice of increases of 10-15 cents per kilowatt hour (an increase of up to 150 per cent) which will involve many thousands of dollars over a year.

“These rates are higher than the Default Market Offer (DMO) set by the Australian Energy Regulator each year intended to protect small customers from excessive retail rates. Retailers’ default rates, known as standing offers, should be below the DMO.”

Ms Griffin continued: “We also believe the company is offering contracts which charge the increased high rates, but only bill rates which are below the DMO.

“Then, at the end of the 12-month period, the difference between the billed amount and the owed amount (the deferred amount) is calculated. The company offers to ‘work with the community’ to recover the deferred amount plus up to 10 per cent interest not appearing in the proposal.”

ZEN Inc is urging body corporate committees or owners who find themselves in this situation to immediately:

1. Advise your body corporate committee and body corporate manager of the price increase notification.

2. Contact your ENO/Retailer to ask what other, lower rates are available to owners and the BC.

3. If no rates are offered lower than the DMO, decline the increased rates and ask to go onto the ENO/Retailer’s standing offer.

4. If no standing offer is made available, seek resolution of your complaint through the Energy and Water Ombudsman Queensland (EWOQ).

5. At the same time, commence the process of calling for alternative supply charge/energy usage retailers.

“The obvious first action to take is to seek to resolve your concerns with your ENO,” Ms Grififn said.

“If that is not productive, we urge affected body corporate committees to call EWOQ on 1800 662 837 but also to submit a complaint in writing.

“Our discussions with the EWOQ have revealed that if it receives an increase in complaints about particular providers, it will notify the Australian Energy Regulator (AER).”

ZEN Inc will be alerting local MP Sandy Bolton and industry bodies of the need for government intervention in this specific area.

Ms Griffin said the Victorian Government was already moving on regulatory reform in the embedded network residential sector, where it has stated, “The panel found that the residential electricity embedded network market in Victoria is not working in the best interests of customers and that intervention is required to ensure better consumer outcomes while supporting renewable energy uptake”.

As a not-for-profit, community organisation, with a goal to reach net zero emissions by 2026, ZEN Inc advises all residents and business, whether in an embedded network or not, to investigate the economic (and environmental) returns of installing solar, particularly when compared to these price hikes.

Generating your own electricity can provide protection against the volatile energy market – not just this year, but with a payback and protection over 15-20 years or more.

Further information: Vivien Griffin 0407116105/Ian Wright 0476544356