2019-12-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                              10 DECEMBER 2019


8.      Options
Option 1: Not implement a user pays system for electricity consumption
          Council continues to include electricity charges in the daily tariff for powered sites
This option involves Council continuing to set fees and charges for the Noosa River Holiday Park
to include electricity in the daily tariff for powered sites.
Opportunities
a)      There is no adaptation required from park management or customers to a new user pays
        system.
b)      The budget proposed for installation of the metered powerheads can be allocated to
        another project.
c)      Avoids the possibility of aggrieved customers complaining about a new user pays system.
Risks
a)      Power consumption is likely to continue to increase because there is a lack of financial
        incentive for customers to decrease electricity consumption under the current system as
        electricity is considered to be ‘free’ as part of the daily tariff.
b)      Continuation of the current system results in customers not having information to make
        informed decisions regarding electricity consumption (via the metered powerheads).
c)      Council’s lack of action will be interpreted by some sectors of the community as not doing
        enough to support its own stated policy position to reduce emissions.
d)      The current fees and charges methodology is likely to be subject to future community
        scrutiny because it is incongruent with other established user pays electricity consumption
        systems, e.g. user pays system established for domestic homes.
e)      The current fee structure facilitates customers consuming less electricity subsidising those
        who consume more. Subsequently, customers who would otherwise be electricity
        conscious are likely to revert to uneconomical energy consuming behaviour due to a
        reluctance to subsidise others.


Option 2: The daily tariff includes a kWh power allowance
          The daily tariff includes a minimum kWh power allowance with consumption above
          the allowance the customer’s responsibility
This option involves Council installing metered powerheads to all powered sites and adopting a
user pays for electricity consumption approach, however each powered site tariff includes a kWh
allowance for electricity consumption with consumption above the kWh allowance the customer’s
responsibility
Opportunities
a)      Contributes to a reduction in emissions and Council’s ZEN 2026 targets.
b)      Allows customers to monitor their own electricity consumption and make informed
        decisions.
Risks
a)      This approach will not be fully effective in changing electricity consumption behaviour
        because electricity will to some extent, still be considered ‘free’.
b)      Council’s effort to reach emission targets will be reduced and the introduction of this
        approach will be interpreted by some sectors of the community as Council not doing
        enough to support its own stated policy position to reduce emissions.




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