Microgrid Power energy

For residents of gated communities and apartments, buying electricity from the grid isn’t as straightforward as it is for owners of standalone homes. 

In most multi-tenanted buildings, including shopping complexes, electricity is supplied through a private network connected to the grid. These private networks are also known as a microgrid or an embedded energy network and allow monitoring electricity usage for the entire building as well as for individually owned or tenanted units and shared common areas. 

Microgrid Power is one of the retailers providing embedded energy networks, while also encouraging the uptake of solar power to bring down the cost of buying electricity from the grid.  

Microgrid Power’s primary offering is a private embedded electricity network, which the company claims allows residents or tenants of buildings with many houses or shops to buy electricity from the local distribution network at a lower price. 

Additionally, Microgrid Power offers to install a solar photovoltaic system, bringing down the building residents’ dependence on the grid for electricity and, consequently, their energy bills. 

As with any embedded network, the electricity supplied to each apartment or shop is billed separately, as is the electricity used in common areas across the building. Separate meters are used for each unit within the building. 

Given this setup, the electricity costs incurred by any of the residents or tenants include the following components:

1. Supply charge - a fixed cost that covers expenses involved in electricity distribution to the building’s location.
2. Usage charge - which varies with the amount of electricity used in the residence or shop, and on the type of electricity tariff mentioned in the contract. In an embedded electricity network, customers may also need to pay a percentage of the cost of electricity used in common areas.
3. Network Use of System (NUOS) charges - which are levied by Microgrid Power and can include both fixed and variable charges. Customers have to pay these charges whether or not they buy electricity from Microgrid Power.

Microgrid Power offers embedded energy network services in the Australian Capital Territory (ACT), New South Wales (NSW), Queensland, South Australia (SA), and Victoria, and the supply charge can vary based on the distribution networks operating in each state or territory. 

Before signing a contract with Microgrid Power, customers should check the contract for the specific supply and usage charges levied in their postcode and compare these with offers from other electricity retailers. They should consider doing so periodically to avoid paying more than they can afford for electricity. Also, customers should factor in the NUOS charges when making these comparisons.

However, they may not need to switch electricity retailers if Microgrid Power offers their Best Rate Guarantee in their area. The Best Rate Guarantee offer allows customers who qualify for more reasonable electricity rates offered by another retailer to claim the same rates from Microgrid Power. However, customers need to provide proof in writing that such rates are available to them and meet the conditions of Microgrid Power’s offer. For instance, if the rates are offered as part of a short-term benefit or loyalty program, customers probably won’t be able to make a claim with Microgrid Power for such rates. When a customer makes a successful claim, they’ll see the rates reflected in their next monthly electricity bill.

The electricity customers are likely to sign are market retail contracts, which means Microgrid Power can change the price offered from time to time after giving customers advance notice. As a result, even customers successfully claiming the Best Rate guarantee shouldn’t assume that they’ll continue to get the better rate. However, as Microgrid Power doesn’t require customers to lock in their contracts or pay exit fees when exiting the contract, customers who wish to sign up with another retailer can do so at any time. 

As an embedded electricity network provider, Microgrid Power may not offer the same variety of electricity tariffs as other energy retailers, which can limit customers’ choices. At present, the retailer’s focus on solar energy systems and their Best Rate Guarantee could mean lower energy costs for customers.  Microgrid Power doesn’t offer any other discounts, but customers should check if the retailer will pass on any state or territory government-funded rebates or concessions that they may qualify for. 

Customers who choose to buy electricity from other retailers should remember that they still have to pay Microgrid Power NUOS charges and should confirm that their total energy costs are lower. Typically, electricity retailers may offer tariffs either set by them or regulated by federal or state laws and may include their profit margin. With an embedded electricity network like the one provided by Microgrid Power, customers are offered the wholesale electricity price offered by the local distribution network, but face additional NUOS charges. The use of a gate meter allows building owners to measure the electricity usage for their property as a whole, while individual apartments or shops have separate electricity meters whose readings can be used to calculate the electricity used therein.

Unlike other electricity retailers, Microgrid Power doesn’t offer solar feed-in tariffs. Instead, the company - through its tie-up with lighting and solar systems provider The Green Guys Group - offers building owners a “zero-risk zero-cost turnkey solution”. This is called a solar microgrid and generates electricity from solar power. This electricity is fed into the embedded electricity network to supplement the electricity supplied from the distribution network.

Further, Microgrid Power offers owners rental income when installing solar panels on their building’s roof. Owners thus have an incentive for choosing the company for installing an embedded network on the premises, even if this involves considerable retrofitting. They can also choose to channel some of the generated solar power at their discretion, such as to power shared spaces on the property. 

While Microgrid Power differs from other energy retailers in many respects, they have to follow energy laws when it comes to billing and processing payments and offer alternatives for customers facing financial hardship. They also cannot stop supplying electricity if customers fail to make payment arrangements.

However, customers facing difficulties in paying their bills should discuss their issues with Microgrid Power before their bill is due to avoid late payment fees and other penalties. Customers should confirm that their bill accurately reflects their electricity usage and should contact the retailer in case they’ve been charged more or less than they should have.

The options Microgrid Power offers such customers include:

• Bill smoothing involves paying a fixed amount every billing cycle, every month in this case, and reviewing the amount periodically against actual electricity costs.
• Variable payment intervals allow customers to pay whenever they can rather than every month or every quarter.
• Deferred payment deadlines extend the due date of a customer’s electricity bill at least once every year.
• Advance payments enable customers to pay more than the amount due to forestall future electricity costs.