With prices for most services and utilities increasing and their associated costs having an impact on the overall levies raised by an Owners Corporation, the challenge was to seek where monies could be saved to keep levies at a stable level.
Whilst most people could approach the big electricity providers to seek a quote, putting all the information, rates and charges into a simple to read table and graph was difficult for the average consumer.
Accordingly, for a marginal fee, the licensee introduced the Strata Scheme to a broker to tender their electricity supply needs in the open market, to report back to the Executive Committee in a simple to read format and to give their recommendations on whom to enter into a contract with.
The tendering, reporting and recommendations made it easy for the Executive Committee to make a quick and informed decision on its electricity supplier.
The building chose to move electricity provider, generating a saving of approximately 30% per annum and $130,000 over three years. Accordingly, this saving helped minimise any increases in levies.
The building is now pleased with its new electricity contract and improved competitive rates. It has diarised to undertake the same tendering process closer to the end of the new current contract to ensure the best electricity rates are achieved again.