‘400 Per Cent Markup’: Pensioners Hit with Massive Power Bill Surge at NSW Land Lease Village

Residents of an over 50s land lease community on the NSW Central Coast are battling huge power bills, with one pensioner facing a devastating 400 per cent markup on his electricity costs due to an embedded network structure.

The steep price hike, coupled with rising annual land lease fees, is forcing seniors living on a single pension into financial distress.

The problem stems from the unique structure of Kincumber Nautical Village, which is split into two power systems. While residents in the newer section can choose their provider, approximately 200 sites in the older section are on an embedded network.

In an embedded network, the park’s owners—Hampshire Property Group, which took over ownership earlier this year—buy power in bulk from the main provider (Ausgrid) and then resell it to the residents.

Residents at Kincumber Nautical Village on the NSW Central Coast already pay a weekly lease fee on the land where their homes sit, which increases every year.

Residents were shocked to discover the park was purchasing the electricity for an average of just six cents per kilowatt-hour (kwh). They are being charged the maximum allowable price: 36 cents/kwh. This enormous difference equates to the 400 per cent markup.

The financial burden is severe for residents like Tony Barnes, who is battling two forms of cancer. He was charged a staggering $2,100 for electricity for a five-month winter period, a cost he estimates the owners would have paid around $300 for.

Despite the shocking prices, the operator, which runs over 50 villages across Australia, is not breaking any rules. New legislation sets the maximum resale price, reviewed annually, and the operator has simply chosen to charge this maximum rate.