These case studies are examples of typical business models that Energy Policy WA understands are being used in embedded networks in Western Australia, and that may fall under the Voluntary Embedded Networks Code of Practice. They are not representative of all business models used and are not to be relied on to understand how any specific embedded network is operated.
A new residential strata complex was built by a developer who contracted with a third party, EnergyCo, to install and operate an on-site embedded network that maximises use of on-site renewable energy generation and energy storage. The contract with EnergyCo was novated to the strata company at the first Annual General Meeting of the strata company.
The strata company owns and maintains most of the internal wiring within the building, but under the contract EnergyCo owns and manages the other embedded network infrastructure (meters, the distributed energy resources (DER) such as solar, batteries and/or electric vehicle chargers, and any associated wiring and electrical infrastructure).
EnergyCo procures electricity from the main grid at the master meter for the strata complex to augment the solar electricity generated on-site. EnergyCo is also responsible for on-selling electricity to occupants. It issues electricity bills directly to occupants, who sign up through its website under individual contractual agreements (regardless of whether they are owner-occupiers or tenants).
The electricity price paid by occupants is part of the contractual agreement between EnergyCo and the strata company, which was entered into by the developer prior to lots in the complex being sold. EnergyCo sets the electricity price by reference to Synergy’s regulated residential electricity tariff and may offer a discount to this rate and/or an annual contribution to a strata sinking fund to share the financial benefits of the embedded network with owners and/or occupants.
The costs of electricity for common areas is billed to the strata company, and lot owners contribute to these costs via their strata fees.
Who should register as the ENS under the Voluntary Embedded Networks Code?
EnergyCo should register as the embedded network seller (ENS).
Why?
EnergyCo:
- holds the contract to purchase electricity at the master meter for the embedded network;
- determined prices paid for electricity by occupants (whether owner occupiers or tenants) as part of contract negotiations with the developer; and
- manages all aspects of the embedded network operation itself.
Note: The professional services model may also apply in non-residential or mixed use strata complexes.
