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Net billing rate best suits BL&P customer

Dick Stoute

Net billing rate best suits BL&P customer

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I have compared the BL&P’s buy all/sell all (BASA) tariff with the net billing (NB) tariff that some customers were allowed to retain after the latest rate adjustment. The customer I did this for had to pay BL&P about $212.00 more on the BASA rate than on the NB rate, over a period of 280 days.

The VAT on the increased amount the customer had to pay was a big contributor, making up about $144.00 of the difference. 

It seems strange that a customer has to pay BL&P for electricity the customer generates and consumes on site. It is even stranger that they have to pay BL&P for the fuel it would use if it had to generate this electricity at their power station.

This must be a great deal for BL&P as they get revenue for fuel that they do not burn.

But the icing on the cake is the customer has to pay VAT on electricity that they produce and consume on site. This electricity never leaves their home, but according to the Fair Trading Commission (FTC) decision they have to buy it from BL&P and pay VAT on the purchase. How can this be justified?

I hope that the FTC is monitoring what is happening and is getting ready to ensure that BL&P permit customers who so choose to use the net billing rate.

– Dick Stoute