In 2023 the body corporate committee sought to enter into a 60-month agreement with Locality Planning Energy Pty Ltd (LPE) to be the designated power provider at the complex from January 1, 2024 until December 31, 2028.
Our view was that this is lengthy agreement, especially given the lack of transparency on aspects of this would operate.
For example, the then proposal made no mention of the ‘offset’ arrangement it had negotiated with LPE for common property electricity. We were told in official Newsletter No.27 that “the body corporate is expecting to receive an annual offset of approximately $291,155 including GST to be applied against common property electricity charges . . . which is expected to cover all future common area electricity charges.”
A one-year initial agreement would have been wiser, especially considering possible electricity charges that we could be locked into paying.
Nevertheless, the committee’s motion passed at the 2023 Annual General Meeting unamended. The motion said:
That the body corporate agrees:
- to enter into a 60-month Agreement with Locality Planning Energy Pty Ltd ACN 148 958 061 (LPE), for a term commencing on 1 January 2024 and expiring on 31 December 2028, in the terms and conditions of the attached Agreement and Schedules, to continue as the retailer for the scheme’s existing embedded network for the supply and billing of electricity, water heating and cooker gas to the common property and all lots;
- that LPE will operate a tender for the energy supply through an independent third Party;
- that the committee has the authority to do all things necessary to provide relevant information to LPE and to sign any documentation to allow the tender to be conducted by LPE;
- that LPE will endeavour to achieve agreement for all parent meter NMIs to be included in one contract to ensure that the best wholesale rate is secured and all NMIs align with the same contract end date;
- that LPE will endeavour to ensure the electricity rate applied will be same across all Community Titles Schemes on the site;
- that the committee has the authority to accept the best available wholesale offer received through the tender process;
- that the committee has the authority to agree to the wholesale energy rate within 7 days of receiving the results of the tender process;
- that LPE will bill electricity at Passthrough (cost price) plus the recovery cost of the tender process and the billing fee;
- that all residential customers will have access to consumer rights, protections, and financial support in accordance with current legislation;
- that the seal of the body corporate is to be affixed to the Agreement and two members of the committee be authorised to sign it.