Qld lot owners would like to know about how to change utility contracts such as embedded network operators and gas suppliers. Also, who can use common property electricity.
Table of Contents:
- QUESTION: How much notice does the Body Corporate have to give before turning off water?
- QUESTION: A number of our residents charge their mobility scooters in the basement car park, using electricity from common power points and paid for by the body corporate. Should this usage be reimbursed?
- QUESTION: We’ve arranged for a much better deal on Hot water and Gas. Do we have to wait until our AGM to get the contract approved or can we set it in motion now and ratify the decision at the AGM?
- QUESTION: What is the process the Body Corporate Committee will need to follow to change to another Embedded Network Operator?
Question: How much notice does the Body Corporate have to give before turning off water?
The Body Corporate have recently turned off the Water Utility supply to 44 Lots on multiple occasions for periods of between 5 and 8 hours while looking for and repairing the leak. This has been done with approx. 12 hours Notice or, in one case, zero Notice.
How much notice does the Body Corporate have to give before turning off water?
Answer: Any timeline would likely depend on the urgency of the situation.
There are no mandatory notice periods for works like this and any timeline would likely depend on the urgency of the situation. Water leaks can cause major damage to the building and lead to considerable costs so stopping them as quickly as possible is always important.
What’s not clear from the question is the nature of the leaks or why they are occurring. To get a better understanding of this it would be worth contacting the committee and asking for an update to be sent to all owners so that you have a better picture of what is happening at the building. It might not change the stoppages, but would hopefully give some understanding as to why the issue is occurring.
Otherwise, for scheduled water stoppages, especially for an extended period of time, you would expect a reasonable notice period to be provided. ‘Reasonable’ could vary from building to building and might depend on how easy it was to contact all occupants but owners, are entitled to a respectful notice period.
William Marquand
Tower Body Corporate
E: [email protected]
P: 07 5609 4924
This post appears in Strata News #533.
Question: A number of our residents charge their mobility scooters in the basement car park, using electricity from common power points and paid for by the body corporate. Should this usage be reimbursed?
In my large unit block a number of residents charge their mobility scooters in the basement car park, using electricity from common power points and paid for by the body corporate, estimated at up to $200 per year per scooter.
What rules are about using common property electricity to charge items such as mobility scooters and what can be done to ensure the body corporate is reimbursed for the power usage?
Answer: Owners and/or occupiers are entitled to use common property electricity
Owners and/or occupiers are entitled to use common property electricity, subject to any by-law in the community management statement for the Scheme regulating electricity usage.
In order to be reimbursed for electricity, the Body Corporate must:
- have an agreement with the relevant owner or occupier in respect of the services.
This agreement is commonly referred to as a supply agreement; and
- only be reimbursed to the extent required to cover the electricity usage.
The Body Corporate would be required to have evidence to support the amount of reimbursement being sought from the relevant owner or occupier.
Hayley Gath
Mathews Hunt Legal
E: [email protected]
P: 07 5555 8000
This post appears in the June 2021 edition of The QLD Strata Magazine.
Question: We’ve arranged for a much better deal on Hot water and Gas. Do we have to wait until our AGM to get the contract approved or can we set it in motion now and ratify the decision at the AGM? The contract was voted on by the Committee two month ago.
Answer: Depending on the limitations the contract proposal may need to be formally ratified at a general or committee meeting. These can be called at any time so there is no need to wait for the AGM.
Generally, the role of the Strata Committee is the day to day administration of the Body Corporate – that includes agreeing on items such as utility contracts. Providing the Committee had a transparent process for selecting the new provider that may be sufficient.
However, before a contract can be implemented you need to consider any restrictions on the Committee’s decision making authority such as spending limits, the nature of the scheme or the need to get multiple quotes. Your strata manager should be able to review these for you and advise of any requirements for your plan.
Depending on the limitations the contract proposal may need to be formally ratified at a general or committee meeting. These can be called at any time so there is no need to wait for the AGM.
William Marquand
Tower Body Corporate
E: [email protected]
P: 07 5609 4924
This post appears in Strata News #430.
Question: What is the process the Body Corporate Committee will need to follow to change to another Embedded Network Operator?
Our apartment complex (<5 years old) consists of 100+ residential lots and a number of commercial lots. The embedded network equipment was installed by a major energy provider who bills the Body Corporate (common area usage only) and each of the lots individually (monthly). The energy provider installed the metering equipment at its own cost.
Termination of the existing agreement requires 6 months notice. The Body Corporate Committee has been approached by a number of Embedded Network Operators (ENO) offering significantly lower tariffs than those currently being charged. What is the process the BCC will need to follow to change to another ENO? For example, does the Body Corporate Committee need to seek formal approval from the BC to proceed? What type of resolution would need to be passed?
Answer: It is 100% a contractual issue. One thing to be aware of is that some providers build the capital costs of a system into the tariffs and have them paid back over a period. This avoids the need for an up front payment.
William Marquand, Tower Body Corporate:
The relationship with your embedded network supplier will be contractual in nature so the strata basics of changing to a new contractor would be the same as those required for any change of contract. Given the size and nature of the contract this is most likely to be via a general meeting with a majority decision on motions for termination of the existing contract and appointment of the new supplier. Your strata manager should be able to advise you on the requirements for your plan.
Any time you are changing a contract you should consider what effect the termination will bring and what the new contractor will provide. This is especially true of an embedded network where the costs of change could be substantial. It would be worth having a lawyer review the existing contract with your current supplier to fully understand the implications of the termination clauses and what exactly you would be handing over at the point of change from one supplier to the next. For example, you should be completely clear on which party owns the installed network equipment on finalisation of the contract or any costs for the transfer of this. In turn, this knowledge may affect any deals offered new suppliers.
We would recommend that any new supplier considered be a member of the Energy and Water Ombudsman Queensland’s (EWOQ) regulatory scheme. This will allow you access to EWOQs dispute resolution services in the event of any issues: EWOQs Embedded Networks
Frank Higginson, Hynes Legal:
It is 100% a contractual issue. One thing to be aware of is that some providers build the capital costs of a system into the tariffs and have them paid back over a period. This avoids the need for an up front payment.
William Marquand
Tower Body Corporate
E: [email protected]
P: 07 5609 4924
Frank Higginson
Hynes Legal
E: [email protected]
P: 07 3193 0500
This post appears in Strata News #428.
Have a question about how to change embedded network operators or something to add to the article? Leave a comment below.
Read Next:
- QLD: Management Rights Assignments For Bodies Corporate
- QLD: Q&A Anniversary of the Annual General Meeting
Visit our Strata Committee Concerns OR Strata Legislation QLD Pages
Looking for strata information concerning your state? For state-specific strata information, try here.
After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.
RE Gas, Electricity contracts. What I’ve seen happen on two occasions is this, when the schemes involved were offered electricity deals which were simply too good to miss… but the contracts exceeded 12 months. The Cmttees signed up, but sent out to all owners full details re what they had done, why they had done it, and gave notice that they would seek retrospective approval from the owners at the next General Meeting. Further, they also preemptively contacted a few owners whom they knew kept a close eye on things, just to ensure there would be no problems. Not surprisingly, no one demurred or complained. The key to smart business practices like this is full, pro-active transparency.