Navigation path
On-supply of electricity
The Electricity Act 1994 allows the owner or occupier or user of premises to become an 'on-supplier' to 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 electricity to receivers. Currently, penalties of up to $500,000 may be applied where legislation is breached.
Examples of on-suppliers are shopping centre owners, caravan park owners, owners of manufactured home parks, owners of blocks of flats and Bodies Corporate associated with blocks of residential or commercial units.
How does on-supplying work?
The on-supplier purchases electricity directly from a retailer. The on-supplier may sell 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.
There may be other specific requirements relating to electricity supply under body corporate legislation or the Manufactured Homes (Residential Parks) Act 2003. On-suppliers should contact the Department of Communities in relation to manufactured home parks and bodies corporate should contact the Residential Tenancies Authority to ensure compliance with requirements of legislation applicable to their situation.
To assist on-suppliers estimate the charges that could be applied to 'domestic' customers, 'reckoners' have been developed for weekly billing (XLS, 144 kB), fortnightly billing (XLS, 194 kB), four weekly billing (XLS, 245 kB) and monthly billing (XLS, 250 kB) accounts based on Tariff 11 - Domestic.
An explanation sheet (PDF, 32kB) provides details of Tariff 11 - Domestic, as well as guidance in how to use the 'reckoners' and other relevant considerations including GST and allowing receivers to claim the Queensland Government Electricity Rebate which is available to eligible pensioners and seniors. It should be noted that for manufactured home parks, use of the reckoner is not applicable due to the requirements of the Manufactured Homes (Residential Parks) Act 2003 regarding the charging of utilities, including electricity.
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 electricity retailers on behalf of the Department of Communities.
On-supply by a Body Corporate
If a Body Corporate decides to become the on-supplier to a block of units in which some or all of the unit occupiers are currently non-market customers of a retailer, certain conditions apply.
Decisions by a full meeting of the Body Corporate cannot override an existing supply contract between a unit occupier and a 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 with their current retailer.
Further information
If you require further information or clarification about the on-supply of electricity, or have an unresolved dispute with your on-supplier, please phone the DEEDI Business Information Centre on 13 25 23 anytime between 8:30am and 5:00pm Monday to Friday, or email energyclientmatters@deedi.qld.gov.au
Last updated 29 June 2011