When the embedded network provider increases rates, how can the strata accept the increase on residents' behalf?
What is the process with electricity tariffs when the embedded network provider wants to increase prices that are unacceptable to the owners corporation? When rates increase, how can the strata, who are not the end-paying residents, accept the increase on residents' behalf?
If the agreement requires OC approval for changes, the committee may need to review and formally accept the adjustment.
In an embedded network, the embedded network operator sets the tariff that resident's pay, typically in accordance with the terms of their agreement with the owners corporation (OC). The OC, acting on behalf of residents, may have already agreed to a pricing structure that allows for periodic adjustments, such as increases based on market rates, network cost changes, etc.
In many cases, the OC does not need to take any further action for a price increase to take effect, as the contract with the embedded network operator may include provisions allowing the operator to adjust tariffs directly. However, if the agreement requires OC approval for changes, the committee may need to review and formally accept the adjustment. Residents could refer to their OC’s agreement with the embedded network operator to understand how pricing adjustments are handled in their specific embedded network.
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Joseph Arena is the founder of Embedded Network Arena and Managing Director of Arena Energy Consulting. With more than 20 years' experience in the Australian energy sector, including over 15 years focused on embedded networks, Joseph advises Owners Corporations, Body Corporates, strata committees and strata managers on embedded networks and emerging energy technologies. An independent consultant, Joseph has extensive expertise across embedded electricity, hot water, gas, air conditioning and electric vehicle charging networks. He has led numerous embedded network reviews, contract audits and tender processes across Australia. Embedded Network Arena is a member of the Strata Community Association and the Owners Corporation Network of Australia. Joseph is also a regular presenter at industry events, webinars and forums on embedded networks, consumer outcomes and energy reform.
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