July 2017
Some are portraying recent increases in electricity prices as overcharging. A closer look suggests that current electricity prices may not be high. The cost of electricity is still, on a daily average, less than the cost of a Starbucks drink.
Recent increases in electricity pricing are the result of previously subsidized electricity prices, the decision to stop using lower cost coal for electricity generation and a failure to maintain the electricity generating infrastructure.
The same “pay now or pay later” reality is true for condo fees. Over 80% of all condo corporation expenses are likely uncontrollable on a year to year basis. Anyone promising lower condo fees without specifying how to reduce these fixed costs is not sincere. The only way to reliably reduce condo fees without increasing them by even more in the future is to find permanent ways to reduce expenditures.
Deferring work in a condo building comes with significant risks that include both safety and escalating repair costs.
Experience has shown it is more economical to pay for what needs to be done today rather than underfunding, living with problems and paying more over the span of a few years.
