What is an Embedded Network?
Welcome to our second Between the Lines, Tenco's new publication, highlighting our capability, people, and ideas. First up, we discuss Embedded Network Management. Nick Price, Tenco Managing Director, explains what an Embedded Network is and answers your most commonly asked questions. Also, in this edition, Gordon Napier, Tenco's Head of Client Services, reflects on our inaugural Customer Feedback Survey. We also get to know Laura Fraser, Tenco's Billing Manager. A keen traveller, Laura's overseas experience in Canada was rudely interrupted by Covid-19 bringing her back to these shores at short notice. We learn what drew Laura to Tenco and why she's excited about what lies ahead.
What is an Embedded Network?
An embedded network is an electricity market construct that enables a property owner to generate revenue from the electricity infrastructure within their building or development.
What Do I Need To Know?
This is electricity infrastructure that the property owner already controls and is responsible for maintaining. Tenco establishes an embedded network on behalf of the property owner and bulk purchases line charges from the local network company (e.g. Vector). We also on-charge the electricity, retail companies (i.e. Meridian, Contact Energy, etc.) who operate on the network, supplying and billing the tenants.
Implications For My Property?
An embedded network allows the end consumers (i.e. tenants) to take supply from an electricity retailer of their choice, thus negotiating the best commercial terms for their individual needs. Each end consumer is assigned a connection, referred to as an installation control point (ICP) in the New Zealand electricity industry. The end consumers would pay the same lines charges if an embedded network were not in place. The embedded network owner is required to install a meter at the main supply point to the property. Due to the size of this connection and the volume of energy that flows through it, the lines tariff applied is a bulk tariff with a lower overall rate per unit of electricity delivered. This results in a recurring revenue stream for the property owner.
Tenco and the property owner manage the lines and network billing within a building or property. Once set up, Tenco provides network billing and reporting in industry-standard formats, allowing you to focus on your core business, confident that all the day to day management and compliance is taken care of.
Frequently Asked Questions
Can tenants still choose their retailer under an embedded network?
Yes - an embedded network allows for each connection to continue to choose their independent electricity retailer. 15+ retailers (including all of the major retailers) currently trade across Tenco networks, so tenants retain the ability to select their retailers.
Will an embedded network increase tenant charges?
Tenco mirrors the published lines company rates (e.g. Vector, Wellington Electricity or Orion) for tenants under our model, so tenants are price neutral from a line charge perspective when establishing an embedded network.
Who owns the electrical line's infrastructure within my property?
Typically, the property owner or body corporate owns the lines after the demarcation with the local lines company. This fact does not change when Tenco establishes an embedded network on your behalf.
Is the common area power included within the embedded network?
Most often, all common area power and landlord supply are included within the embedded network.
Can embedded network setup costs be financed?
Yes, Tenco offers this in most cases and setup costs can be paid down with network profits.
How will I know if my embedded network is performing well?
Tenco provides a statement to clients monthly that details the financial performance of the embedded network. Tenco also prepares a summary report annually that details how the network performed in the prior year and our financial projections for the upcoming year.
What physical work is required before Tenco can establish an embedded network?
Often, Tenco only needs to install a gate meter within the main switchboard or development. Tenco performs a site investigation to confirm before proceeding.
What Does This Mean For Me?
Tenco is the largest provider of private utility network solutions in New Zealand. Tenco has been serving the property industry since 1998 and manages over 300 networks. If you are a building owner or manager, body corporate, member or developer, contact us for a free desktop assessment.
Schedule your private utility network assessment today.
0800 359 500
info@tenco-ebs.co.nz
What's New?
In July, we issued our inaugural Customer Feedback Survey. A big thank you to everyone who participated. The overwhelming response rate reminds us how lucky we are to have such a highly engaged client base. The feedback received is critical as we continuously improve our service offering and become a truly customer-centric organisation. Congratulations to Karina Tainui in the Colliers Property Management team at Eastgate Shopping Centre. Karina won the $200 Visa Prezzy Card in our randomised prize draw.
We have recently released a new case study showcasing our Commercial Bay project in conjunction with Precinct Properties. It was a real privilege for us to partner with them on the most transformational project Auckland has ever seen.
Gordon Napier, Head of Client Services
027 605 4585
gordon.napier@tenco-ebs.co.nz
Team Spotlight
Hailing from the deep south, Laura grew up on the farm where problem-solving skills were part of everyday life. Some might say this was a perfect precursor for a career navigating the complexities of the New Zealand electricity industry. Before joining Tenco in May 2020, Laura spent eight years at Meridian Energy, initially as an Agriculture Account Specialist. She dealt with new sales enquiries, complex billing issues and procurement requests and latterly, she headed up the Billing Team.
Q: What drew you to Tenco, and why do you enjoy working here?
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"Tenco is an organisation I was well aware of during my time at Meridian Energy. We are well known in the market for punching above our weight, and when an opportunity to come aboard presented itself, I jumped at the chance. I was drawn to Tenco by its agile approach to problem-solving, which was refreshing after eight years of working for a large corporate. Tenco encourages creative outside the box thinking and is more likely to embrace change and radical ideas. I love how at Tenco, I get to wear many different hats that expose me to many aspects of the business and teach me a range of skills that I may not have had a chance to learn otherwise. Being small and specialised also means I work closely with company leaders, which adds to the community feel."
What's Coming Up?
Following our newsletter earlier this year, if you have any energy supply agreements expiring in the next six months, you need to consider your contract renewals now. Tenco operates an in-house tender desk and is well versed in the process of sourcing electricity and gas contracts for your business.
All Tenco offices will close at noon on Friday 24th December, reopening on Wednesday 5th January at 8.30 am. We wish you and your family a happy, healthy and safe holiday season.
