Residential land lease communities: electricity charging options

Electricity charges vary across different residential land lease communities. In around 40 per cent of these communities, the operator supplies electricity to the residents through a network within the community rather than the residents being supplied and billed directly by a licensed retail electricity company. If you live or work in one of these communities, we’d like to hear from you.

In a residential land lease community, you own or rent the home you live in, but the land is leased from the community operator. More than 35,000 people live on permanent sites in over 500 caravan and residential parks across NSW.

The Department of Customer Service is reviewing the laws under the Residential Land Lease Communities Act 2013 and invited public feedback from December 2020 to March 2021.

We asked for comment on three options for how people living in residential land lease communities could be charged for electricity. Your feedback raised concerns about the current method being too complex and that it doesn't allow community operators to recover any costs of managing the supply of electricity to residents. Feedback did not show strong support for the alternative options.

For more information on the earlier review, please visit the consultation page.

New options for electricity charging

After considering several other policy options, we are now asking for your feedback on setting the maximum amount that a resident in a land lease community may be charged for electricity at the median market price. This could be achieved through:

For more detail read our case studies in the tabs below showing how the new options apply in different scenarios.

Tell us what you think

You can have your say by completing the quick poll or the survey.

Thank you for your feedback

This engagement closed on 16 August 2021. Thank you to participants for providing your input.

To see the consultation findings, read the report on the Residential (Land Lease) Communities Act 2013 Statutory Review.

You can also read the written submissions in the Submissions box on the right-hand side of this page.

Electricity charges vary across different residential land lease communities. In around 40 per cent of these communities, the operator supplies electricity to the residents through a network within the community rather than the residents being supplied and billed directly by a licensed retail electricity company. If you live or work in one of these communities, we’d like to hear from you.

In a residential land lease community, you own or rent the home you live in, but the land is leased from the community operator. More than 35,000 people live on permanent sites in over 500 caravan and residential parks across NSW.

The Department of Customer Service is reviewing the laws under the Residential Land Lease Communities Act 2013 and invited public feedback from December 2020 to March 2021.

We asked for comment on three options for how people living in residential land lease communities could be charged for electricity. Your feedback raised concerns about the current method being too complex and that it doesn't allow community operators to recover any costs of managing the supply of electricity to residents. Feedback did not show strong support for the alternative options.

For more information on the earlier review, please visit the consultation page.

New options for electricity charging

After considering several other policy options, we are now asking for your feedback on setting the maximum amount that a resident in a land lease community may be charged for electricity at the median market price. This could be achieved through:

For more detail read our case studies in the tabs below showing how the new options apply in different scenarios.

Tell us what you think

You can have your say by completing the quick poll or the survey.

Thank you for your feedback

This engagement closed on 16 August 2021. Thank you to participants for providing your input.

To see the consultation findings, read the report on the Residential (Land Lease) Communities Act 2013 Statutory Review.

You can also read the written submissions in the Submissions box on the right-hand side of this page.

  • Case studies for new electricity charging methods

    The below case studies have been provided to show how different charging methods result in different pricing depending on the scenario. While these examples are from not real cases, the calculations have been based on real bills. For how the below figures were calculated, see our case study calculations.

    Carol

    Carol lives in a residential land lease community in Dubbo and is serviced by the Essential Energy network. Carol lives by herself and uses about 200 kilowatt hours of electricity per month and has a supply quality of 50 amps.

    Summary: Carol’s monthly bill and operator funds


    Reckless (current)

    Single charge

    Separate charges

    No regulation

    Monthly bill

    $55.56

    $60.80

    $76.77

    $86

    Calculation based on/ charged

    Flat rate 28c kWh

    Based on commercial bill of a real residential land lease community with Essential network

    Flat rate

    38c kWh


    Flat rate

    24c kWh

    Discounted service availability charge (by 30%) of $28.77 per month

    Flat rate

    43c kWh

    Discount

    No discount

    20% off her total bill as supply quality is less than 60 amps (bill has been reduced by $15.20)

    Existing discounts for low amperage (bill has been reduced by 30% or $12.33)

    No discount

    Potential operator funds available for managing electricity supply compared to Reckless

    No extra funds

    Up to $5.24 per month

    Up to $21.21 per month

    Up to $30.44 per month

    kWh= kilowatt hours


    Rashid and Glenda

    Rashid and Glenda live together in a residential land lease community in Katoomba and are serviced by the Endeavour network. Rashid and Glenda use about 325 kilowatt hours of energy per month and have a supply quality of 25 amps.

    Summary: Rashid and Glenda’s monthly bill and operator funds


    Reckless (current)

    Single charge

    Separate charges

    No regulation

    Monthly bill

    $74.71

    $83.20

    $87.05

    $113.75

    Calculation based on/ charged

    Flat rate 23c kWh

    Based on commercial bill of a real residential land lease community with Endeavour network

    Flat rate

    32c kWh

    Flat rate

    23c kWh

    Discounted service availability charge (by 50%) of $12.30 per month

    flat rate

    35c kWh

    Discount

    No discount

    20% off total bill as supply quality is less than 60 amps (bill has been reduced by $20.80)

    Existing discounts for low amperage

    (bill has been reduced by 50% or $12.30)

    No discount

    Potential operator funds available compared to Reckless

    No extra funds

    Up to $8.49 per month

    Up to $12.34 per month

    Up to $39.04 per month

    kWh= kilowatt hours