The future of utility networks in the commercial sector
Utility billing and solutions provider Tenco overhauls electricity networks
In a 12-month process, Tenco was commissioned by Precinct Properties to roll out embedded networks across its 14 commercial properties in Auckland and Wellington.
The move came about following Precinct’s purchase of the Downtown Shopping Centre from Westfield in Auckland in 2013, which was already running a Tenco managed embedded network.
Tenco Managing Director Nick Price who oversaw the project, says Precinct performed an extensive review and decided to have Tenco overhaul their existing utility arrangements.
“Precinct were quick to recognise the opportunities in implementing embedded networks across their portfolio to reduce their operating costs, capture new income streams and increase the capital value of their assets.”
Precinct Development Manager Mike Patching says Tenco made the process significantly easier by its customer-centric approach and vast industry knowledge, resulting in substantial commercial benefits for the company.
There were a few drivers behind our decision to pursue embedded networks across our portfolio. The portfolio has grown historically over time and our assets have included different electricity regimes with different revenue expectations. A significant driver behind this approach was to streamline our processes and be able to offer our clients choice of retailer. Many of our clients were keen to pursue their own electricity supply which previous to having embedded networks we were unable to offer.
Precinct was charging its clients for electricity at cost across several of its properties, and carrying a significant debt risk from each billing cycle. Patching says the old regime was not commercially feasible.
“Essentially we were buying electricity, paying to read the meters, paying for administrative resources, and selling it back at the same price, while carrying the debt risk until it was paid. Other issues added to complicate the process further such as arrears and disputes. It was commercially unsound to continue this model.”
Tenco have been managing private utility networks for more than 15 years. This has involved the conversion or setup of more than 275 embedded networks since 2005. Price says as commercial property operators become more astute, there is an increasing demand for embedded networks.
“Our clients include shopping centres, airports, commercial office buildings, apartment buildings and retirement villages. We work with New Zealand’s largest property owners including property that is owned or managed out of Australia. Tenco’s experience, technology and industry knowledge means it has all the necessary facets required to operate successfully across the full spectrum of the New Zealand electricity market. We have agreements with all the main industry participants including local network companies, large electricity retailers, metering equipment providers and meter reading services providers.”
Embedded Network
Precinct Properties / Snapshot
12 month process to roll out embedded networks for Precinct Properties across...
14 commercial properties in Auckland and Wellington
Tenco have rolled out over 275 embedded networks since 2005
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