2019-12-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                              10 DECEMBER 2019


Option 3: Implement a user pays system for electricity consumption for all tariffs
          Council implements a new user pays system for electricity consumption for powered
          sites
This option involves Council installing metered powerheads to all powered sites and adopting a
user pays electricity system for electricity consumption from 1 July 2021 replacing the current
charging structure which includes electricity in the daily rate for powered sites.
Opportunities
a)      Encourages customers to change electricity consumption behaviour because they pay for
        electricity usage.
b)      Establishes Council as a market leader and innovator.
c)      Council’s new approach may help to influence a wide-scale market shift.
d)      Maximises contribution to Council’s emission reduction objectives.
e)      Allows customers to monitor their own electricity consumption and make informed
        decisions.
f)      Customers who consume less electricity won’t be subsidising those customers who use
        more electricity.
g)      The powerhead installation payback period is within 3 years. Council’s financial investment
        is repaid quickly.
h)      Implementation timeframe allows ample time to inform customers of the new user pays
        system.
i)      Customers will likely activate solar panels and battery backup systems. This outcome is
        also encouraged because it decreases reliance on mains power and reduces emissions.
Risks
a)      Infrastructure and other potential site issues (legacy wiring issues arising from ad hoc and
        aged additions over time) which will prevent a smooth and cost effective roll out of the
        powerhead installation.
b)      Resources and troubleshooting advice is not available to support the introduction of the
        technology.
c)      Some customers using excessive electricity will prefer the current fees and charges
        structure and may be disgruntled with the new user pays system.

9.      User Pays System for Electricity Consumption implementation timeframe

Given the new management agreement is timed to commence 1 July 2021 it is proposed the new
user pays system for electricity consumption also commence 1 July 2021. The period between
the installation of the metered powerheads in August 2020 and the commencement of the new
management agreement and user pays system on 1 July 2021 will allow customers up to 12
months to familiarise themselves with the new system. The mechanisms to advise customers of
the proposed new user pays system are expected to include the following:

      Electronic information notices to customer database
      Website information
      Information notice displayed on each powerhead in addition to real time data on electricity
        usage.

10.     Proposed Fees and Charges for adoption

Council maintains a forward fees and charges schedule for all holiday parks to allow for future
booking of sites by customers. Council maintains an 18 month advance booking period which is
commensurate with industry standards and it is proposed Council set fees and charges for the
Noosa River Holiday Park to 30 June 2021 to maintain the advance booking period.



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