As of 1 December 2017, building owners who operated embedded electricity networks for their tenants will be required to appoint, or become, an embedded network manager. These changes in the energy market will open competition for tenants in buildings or complexes that have previously had an embedded network run by the embedded network manager, landlords or building managers. The embedded network manager role is in place to make sure that embedded networks are fair, equitable and capable of providing quality service to tenants. At ENM Solutions, our embedded network consultants are ready to assist building owners in making this challenging but ultimately rewarding transition.
One of the reasons that new rules are on the way to regulate embedded electricity networks was that the embedded network model locked out the competition in many multi-unit buildings or complexes. From apartment buildings to shopping centres to office complexes, tenants in embedded network situations have not had the option to shop around and negotiate their own electricity services.
As a result, the power has always been in the hands of embedded network managers or building owners. They could negotiate great prices from energy companies at the gate meter but not offer their tenants competitive electricity rates, simply because the tenants had no other option for powering their units.
With new regulation looming, building owners have a choice: make their embedded networks competitive or sacrifice the convenience and surplus revenues that embedded networks can provide. Hiring a qualified embedded network management consultant will help you achieve the first option.
The key to a successful embedded network is purchasing electricity for your building at the lowest possible rate and then setting fair and competitive rates for your tenants. Most building owners have traditionally done okay with the first step. A building with a dozen tenants has more purchasing power than a single-tenant dwelling, and energy companies are quick to offer discounts and deals to get the extra business.
Where the average building owner or landlord fails is in the second part: setting competitive rates for tenants. Perhaps you aren’t sure what a ‘competitive rate’ resembles. Alternatively, maybe you are trying to make a bit of extra cash by running an embedded network and go overboard in marking up the price of energy.
Either way, investing in embedded network consulting for your building can help. An embedded network consultant can help you buy electricity at a low rate and set rates for tenants that maximise your revenues without pricing your network out of competitive range. In short, we can help you make sure that your embedded network plans are feasible—as well as compliant with the new national laws.
At ENM Solutions, as an accredited embedded network manager, we are happy to help you assess the viability of your embedded network plans. No matter where you are in developing your embedded network strategy, embedded network consulting can help to make sure your system is equitable and competitive. To schedule a feasibility consultation with our team at ENM Solutions, give us a call on 03 98 366 366.
