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How is Electricity Distributed in a Strata?

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Key Takeaways

  • Strata properties can be connected to power through individual master meters or sub-meters.
  • In sub-metered properties, the strata company is billed by the energy retailer and generates invoices for power consumption.
  • Access to electrical cupboards, where power is distributed in sub-metered properties, is restricted to qualified personnel.

How Electricity is Distributed

Electricity distribution in strata properties involves the connection of power through either individual master meters or sub-meters.

Sub-meters are commonly used in retirement villages, where the strata company takes responsibility for the common connection to the electricity provider and the common electrical system within the village. Sub-metering allows for the tracking of electricity consumption at the individual property level, providing a more accurate measurement of usage. This enables the strata company to generate invoices for power consumption based on the actual consumption of each resident. It also allows for greater transparency and fairness in the allocation of electricity costs among the residents.

In contrast, individual master meters are set up where the energy retailer owns the meters, reads them, and bills the customer directly. This is typically the case in properties that are not part of a retirement village or strata complex. The energy retailer is responsible for connecting the power and maintaining the meter, while the customer is billed directly for their electricity usage. The use of individual master meters provides a more direct and independent connection to the energy retailer, allowing customers to have more control over their energy consumption and billing. However, it also requires customers to individually contact the energy retailer to set up an account and arrange for a power connection.

Billing and Account Setup

Billing and account setup for power consumption in strata lots involves the establishment of a payment system and the creation of an account with the energy retailer or strata company.

In sub-metered properties, the strata company is responsible for billing and generating invoices for power consumption. This means that residents do not need to individually contact an energy retailer to connect power in their properties. Instead, the power for sub-metered properties is distributed through electrical cupboards, which are only accessible to qualified personnel.

On the other hand, for properties with individual master meters, the energy retailer owns the meters, reads them, and bills the customer directly. In this case, residents need to contact an energy retailer to set up an account and arrange power connection. It is important to note that when moving into a property with an individual master meter, Western Power will disconnect the meter from the supply. Residents should contact their energy retailer to arrange for power re-connection.

In retirement villages, village operators commonly on-sell electricity and charge usage and supply costs to residents. The strata company, which is often managed by the strata manager, is responsible for the common connection to the electricity provider and the common electrical system within the village.

The calculation of a resident’s consumption costs depends on the terms and conditions of the residence contract. Sub-meters can be used to determine actual electricity consumption for individual properties. If sub-meters are unregistered, the operator will calculate the resident’s charge using the respective electricity tariff costs. For properties without sub-meters, the calculation method may be based on the total number of dwellings in the village.

It is worth noting that there is a cap on the amount that can be charged to residents, as outlined in the Exemption Order. However, this cap does not apply if another licensed retailer supplies the electricity or if the on-seller generates the electricity themselves. To ensure transparency, on-sellers must provide residents with information on the quantity of electricity supplied, fees, and charges.

Understanding Consumption Costs

In order to accurately determine the costs associated with power consumption in strata lots, an understanding of the factors that contribute to consumption costs is essential. Here are some key points to consider:

  • Sub-meters: Sub-meters play a crucial role in determining the actual electricity consumption for individual properties. These meters measure the amount of electricity used in each strata lot, allowing for accurate billing based on individual usage. It is important to ensure that sub-meters are registered and functioning properly to avoid any discrepancies in consumption costs.

  • Calculation Methods: The method used to calculate consumption costs can vary depending on whether sub-meters are installed or not. If sub-meters are unregistered or absent, the operator may calculate the resident’s charge using the respective electricity tariff costs. In some cases, properties without sub-meters may have a calculation method based on the total number of dwellings in the village. It is important to understand the specific calculation method outlined in the residence contract to have a clear understanding of how consumption costs are determined.

  • Cap on Consumption Costs: The Exemption Order sets a limit on the amount that can be charged to residents for electricity consumption, which is usually based on the standard residential consumption tariff. However, this cap may not apply if the electricity is supplied by another licensed retailer or if the on-seller generates the electricity themselves, in which case the cap would be the cost of generation. It is important to be aware of these limitations and understand how they may affect the consumption costs in strata lots.

  • Electricity Services and Charges: Consumption charges are separate from the charges for electricity services. Electricity services include the supply, maintenance, reading of electrical supply meters, and the preparation and issuance of electricity supply accounts. These charges may differ from the consumption charges and should be considered when calculating the overall electricity costs for strata lots.

  • Restrictions and Limitations: Depending on the location of the strata village, there may be certain restrictions or limitations on what can be charged for electricity services. For example, if the village is located within a licensed area of Synergy or Horizon Power, the operator can only charge the A1 and A2 tariff daily supply charges. However, if the village is located outside a licensed area, there are no restrictions on what can be charged. It is important to be aware of these restrictions and limitations when considering the overall consumption costs in strata properties.

Understanding these factors and considerations can help strata lot owners and residents have a clearer understanding of the costs associated with power consumption. By being aware of the specific calculation methods, limitations on charges, and the distinction between consumption charges and electricity services, individuals can make informed decisions and effectively manage their electricity usage in strata properties.

Frequently Asked Questions

What qualifications are required to access electrical cupboards in sub-metered properties?

Access to electrical cupboards in sub-metered properties requires individuals to have the necessary qualifications. These qualifications are typically related to electrical expertise and knowledge, ensuring that only qualified personnel can access and work with the electrical components in these cupboards.

Who is responsible for the common connection to the electricity provider in a retirement village?

The strata company is responsible for the common connection to the electricity provider in a retirement village. They are also responsible for the common electrical system within the village.

Are there any restrictions on the charges for electricity services in licensed areas?

There are restrictions on the charges for electricity services in licensed areas. If located within a Synergy or Horizon Power licensed area, operators can only charge the A1 and A2 tariff daily supply charges. However, if located outside a licensed area, there are no restrictions on what can be charged.

Can operators charge residents individually for the daily residential supply tariff?

Operators can charge residents individually for the daily residential supply tariff. However, the ability to pass on the full charge may be limited by clauses in the residence contract. Administrative costs cannot be passed on to residents already being charged for electricity services.

Where can residents seek assistance or resolution for matters related to the on-selling of electricity in their residence contracts?

Residents can seek assistance or resolution for matters related to the on-selling of electricity in their residence contracts by contacting the village operator or strata manager. They can also reach out to the village residents’ committee, Consumer Protection’s Contact Centre, or the Energy & Water Ombudsman for further support.

Donna Gordin

By Donna Gordin

Donna is a decisive industry leader with a flair for getting things done. Donna's direct, honest approach is refreshing and reassuring, and her longevity in the industry speaks volumes. Put your strata in safe hands. Donna and her team have the expertise to ensure your strata scheme benefits from well organised, proactive strata management.

Perth Strata Co

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