On-Supply of Electricity

On-Supply

The Electricity Act 1994 allows the owner or occupier or user of premises to become an 'on-supplier' who can supply and sell electricity to the occupants of the premises (the receivers). The legislation contains provisions that must be followed in the on-supply of this electricity to the receivers. Penalties of up to 5,000 penalty units may be applied where legislation is breached. A penalty unit is currently valued at $75.00.

Examples of on-suppliers are shopping centre owners, caravan park owners, owners of blocks of flats and Bodies Corporate associated with blocks of residential or commercial units.

On-Supply Charges

The on-supplier purchases electricity directly from a retailer. The on-supplier can choose to sell the electricity to the receivers on a metered or non-metered basis.

If the electricity charge is based on metered consumption, the legislation states that the charge must not be greater than the lowest regulated tariff for non-market customers that would have been applied if the receiver had been a customer of the retailer.

To assist on-suppliers estimate the charges that could be applied to 'domestic' customers, 'reckoners' have been developed for weekly billing (PDF - 29KB), fortnightly billing (PDF - 29KB), four weekly billing (PDF - 53KB) and monthly billing (PDF - 218KB) accounts based on Tariff 11 - Domestic. An Explanation Sheet (PDF - 55KB) provides details of Tariff 11 - Domestic, as well as guidance in how to use the 'reckoners'.

The 'GST' column indicates the amount of GST that may be applicable to the receiver's electricity charges. However, these calculations are an indication only and it is suggested that the Australian Taxation Office or a tax consultant be contacted for GST advice.

The column indicating the 'rebated' electricity charge represents the applicable charges that apply where the on-seller allows eligible tenants to claim the Queensland Government Electricity Rebate (commonly called the 'pensioner rebate') that is available to eligible pensioners and seniors. Claiming the rebate on behalf of eligible tenants is at the discretion of the on-supplier, but if the rebate is claimed, the on-supplier must pass it on to the eligible tenant. The rebate is administered by the franchise retailers on behalf of the Department of Communities and details of the eligibility criteria are set out in Part 5 of the gazetted electricity tariffs for non-market customers. 

On-Supply by a Body Corporate

Additional actions need to be taken by a Body Corporate if it decides to become the on-supplier to a block of units in which the unit occupiers are currently non-market customers of a retailer.

• Decisions by a full meeting of the Body Corporate cannot override the supply contract between a unit occupier and the retailer;
• Because of this, a unit occupier cannot be forced to become a receiver of the on-supplying Body Corporate and
• Any unit occupier who does not want to become a receiver must be allowed to remain a customer of the retailer