This article discusses embedded networks and smart meters for VIC owners corporations.
Table of Contents:
- QUESTION: An owners corporation would like to switch embedded network providers. Can they exit if their contract is not due to expire for ten years?
- QUESTION: The meter box in our old four lot block requires maintenance. Is the power company responsible for maintaining meter boxes, or is this an owners corporation responsibility?
- QUESTION: We recently ran an extension cord from a common property power point to light up our car space. I’ve been reported for stealing power. Really!
Question: An owners corporation would like to switch embedded network providers. Can they exit if their contract is not due to expire for ten years?
I am a strata manager. An owners corporation in our portfolio has an embedded network. The owners corporation has queried switching embedded network providers. We know the new provider needs to purchase the infrastructure. However, how does the OC get out of the contract? It is not due to expire for ten years.
Answer: Explore any commercial termination options in the contract, and if not, then consider a legal review to assess if the agreement is fair and reasonable.
Let’s talk about it from a commercial and then a legal point of view.
- Commercial: The agreement may have commercial terms that allow for termination. Some agreements do, and some don’t. You must review the agreement to assess whether that’s even an option. If the agreement has been executed correctly and it’s got the owners corporation’s stamp, it’s a formal agreement. It’s hard to get out of those agreements unless there’s a termination option.
- Legal: Is it a fair agreement? Get legal advice. Are there any breaches of Australian Consumer Law? Is it a fair and reasonable agreement? Does the committee have an appetite to potentially take the contract to court? It’s very site-specific and contract-specific.
Raise your concerns with the embedded network operator and try to negotiate a better outcome. We have had some success renegotiating existing agreements.
Joseph Arena Embedded Network Arena E: joseph@embeddednetworkarena.com.au P: 0431 925 908
This post appears in the September 2024 edition of The VIC Strata Magazine.
Question: The meter box in our old four lot block requires maintenance. Is the power company responsible for maintaining meter boxes, or is this an owners corporation responsibility?
Our small block of four strata units in west Melbourne is old, and all our smart meters are in an enclosure fixed to the side of unit 1 facing the common driveway.
The 1970s wooden meter box is falling apart, and the meters inside are mounted to a water-damaged chipboard. Is this a safety hazard?
Is the power company responsible for maintaining meter boxes, or is this an owners corporation responsibility?
Answer: It’s important to communicate actively with your local distributor and energy retailer to ensure you are not taking any action that could lead you astray.
Depending on how west of Melbourne CBD you are, your local distributor (Local Network Service Provider) will likely be Powercor, Jemena or Citipower. In 2006, the Victorian Government committed to the Advanced Metering Infrastructure (AMI) program to replace manually read meters with smart meters, supported by your local distributor in rolling these upgrades out to your premises.
Major Electricity Companies, through certain exemptions, can maintain inherited timber meter boards and panels, providing they are in good condition. The operative phrase being, in good condition.
Although there are important differences between strata established electricity networks and embedded networks at this point in your electricity supply, the responsibility for the housing of meters will generally sit with the customer. Our team often hear from owners corporations either looking to retrofit to an embedded network or address these regulatory challenges and required works.
When negotiating how to move forward, it’s important to note that the owners corporation may be responsible for maintaining this meter housing and may need to individually notify each meter’s retailer (Financially Responsible Market Participants). The Owners Corporation Act features sections about the repair or maintenance of common property. If in doubt, Consumer Affairs Victoria provides some great resources.
It’s important to communicate actively with your local distributor, either Jemena, Powercor or Citipower and your energy retailer to ensure you are not taking any action that could lead you astray. You should also keep in mind that a Registered Electrical Contractor will need to be involved in any upgrade work to the switchboard and meter panel.
Angus Gauld ENM Solutions E: Angus@ENMSolutions.com.au P: 1300 000 366
This post appears in Strata News #700.
Question: We recently ran an extension cord from a common property power point to light up our car space. I’ve been reported for stealing power. Really!
My partner and I are renting a ground floor apartment in Melbourne. I recently carried out some maintenance work to my car in our designated basement car space. To illuminate the area, I ran an extension cable to a common property power point for a short period of time.
A resident reported this to the Owners Corporation and the Owners Corporation emailed my real estate agent outlining that I was committing theft by using the common property power.
What are the rules and regulations around residents using common area power points and electricity? Did I commit a crime?
Answer: Requesting permission from the committee before utilising the OC power supply is a good idea that may avoid future tensions or nasty messages from rental agents.
Interesting situation! Generally speaking, if you wanted to use anyone else’s electricity that was not your own (in any setting), surely you would agree that it would be polite to simply request permission first? And doing so may result in avoiding being accused of “committing theft” in the agent’s words. In saying that, if you have indeed used the common supply without seeking permission I can understand why some may be upset at this.
So let’s just agree that moving forward, requesting permission from the committee before utilising the OC power supply is a good idea that may avoid future tensions or nasty messages from rental agents.
With all of this in mind, let’s quickly look at what it might cost if someone wanted to run a halogen light bulb from common power. According to commercial lighting supplier LEDified, running a 50W Halogen Bulb for 8 hours at a rate of $0.30 per KWH will come to an almighty $0.12. Yes, you read that right! 12 cents. Far from sheep stations.
If it were me wanting to do the same on a recurring or regular basis, I would request permission and would offer to tip in $10.00 for the annual OC Christmas party fund which, based on my calculations, would forward fund around 666.666 hours of electricity consumption (devils in the detail!).
It is also important to mention, you must also respect its position if the Owners Corporation decides for whatever reason that it does not wish (or is not comfortable) allowing you to utilise its common electricity supply. There may be legitimate concerns around a third party using the supply with, for example, items that have not been tested and tagged, which has the potential to open up a can of liability worms for the Owners Corporation if something were to go wrong.
I hope you found this response energising and illuminating.
Deryck Walker SMTI deryck.walker@smti.com.au
This post appears in the December 2021 edition of The VIC Strata Magazine.
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