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Skip Navigation LinksDepartment of Housing and Public Works > Housing > Industry regulation > Manufactured homes > Electricity charging in residential parks

 Electricity charging in residential parks

​Important message from the Director-General

The implementation of the Manufactured Homes (Residential Parks) Amendment Act 2010 and its associated legislative changes to the Manufactured Homes (Residential Parks) Act 2003 on 1 March 2011, introduced a new section 99A – cost of utility supply.
 
The policy intent of section 99A is to prevent park owners from charging more for the supply of electricity to residents than the actual cost charged to the park owner by the retailer.  I am aware there is dissatisfaction among home owners who have made complaints to the Department of Housing and Public Works alleging overcharging on their electricity bills.
 
I understand that some park owners may be misapplying the Ready Reckoner, provided by the Department of Energy and Water Supply as a guide to charging for the on-supply of electricity under the Electricity Act 1994.  Applying the rates in the Ready Reckoner without regard to the actual costs is not consistent with section 99A of the Manufactured Homes (Residential Parks) Act, and may constitute a breach which can carry a maximum fine of 20 penalty units ($2200).
 
As a guide, the market contract for the bulk supply of electricity with your retailer will be a competitive price lower than the notified price (Gazetted Tariff 11 – Domestic).  Section 99A requires that this lower, actual price is passed on to the home owner.  In calculating electricity charges for electricity consumed by individual home owners during a billing period, the consumption rate used should therefore be a lower per kilowatt hour amount than that of the notified price.  For instance, if the adjusted rate you purchase electricity for is 19.00 cents per kilowatt hour, this is the rate used to charge home owners, not the notified price of 26.73 cents per kilowatt hour (GST inclusive).
 
It has been discovered some park owners are adding meter read fees, account fees, infrastructure and administrative charges in excess of the actual cost of supplying the electricity to residents.  The policy intent of section 99A of the Manufactured Homes (Residential Parks) Act is to prevent the imposition of these kinds of charges.
 
The site rent charged to home owners may include a component to cover the legitimate costs of providing utility infrastructure within the park.  Should a park owner need to increase and/or adjust the amount of site rent to cover the costs outside the terms of the Site Agreement, they may do so following the procedures outlined in the Manufactured Homes (Residential Parks) Act.
 
I strongly urge you and your management to review current charging regimes for the on-supply of utilities and ensure that your park operations comply with the provisions of the Manufactured Homes (Residential Parks) Act.
 
Additional information including prescribed forms​ can be found on the Manufactured Homes website. 
 
If you require any further information or assistance in relation to this issue, please contact the Residential Services Unit on (07) 3008 3450 or write to GPO Box 690, Brisbane QLD 4001, or email residentialservices@hpw.qld.gov.au.


Last updated 12 May 2015    Creative Commons Attribution 4.0 International (CC BY 4.0)


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