Question: What should a WA strata company do about the January 2027 embedded network requirements?
We are in a Western Australia strata scheme with an embedded electricity arrangement. Our strata company has always negotiated pricing with the provider, used metering, and had our strata manager bill lots based on usage.
We understand that from January 2027, a government requirement means we must engage an external company to manage this process on our behalf, which will add costs and take control away from our council of owners and building manager. We have kept levies low through hands-on management, and we are concerned that companies approaching us will buy and on-sell electricity on their terms, not necessarily to our benefit.
What practical steps should a volunteer council of owners take to prepare, and what risks should we watch for when selecting a provider?
Answer: Under the new framework, the strata scheme is the legally responsible party.
Strata communities across Western Australia are understandably concerned about the upcoming regulatory changes affecting embedded electricity networks. Many schemes like yours have managed their networks responsibly for years through negotiated supply agreements, on‑site metering arrangements and diligent internal oversight. The new requirements coming into effect from January 2027 will introduce additional obligations, and the volunteer council of owners’ members must have clear, practical information.
What the new rules mean
It is important to clarify that the new regulatory framework does not prevent strata communities from continuing to operate their own embedded electricity networks, provided they meet the compliance requirements. However, the reforms will introduce additional costs, including mandatory registration with the Economic Regulation Authority and the Energy and Water Ombudsman, as well as compliance with the new code when it comes into effect in around January 2027.
Who is responsible for compliance?
Under the new framework, the strata scheme is the legally responsible party. This means the scheme is the entity that must comply with the AES Code of Practice and all associated regulatory obligations.
A strata manager can assist with coordination and administration, but embedded network compliance is not their area of technical expertise. The requirements involve specialised regulatory knowledge, consumer‑protection obligations, and detailed reporting that fall outside the scope of standard strata management.
To meet its obligations, the scheme may need to instruct the strata manager to obtain specialist advice or engage a specialist provider on the scheme’s behalf. This ensures the scheme meets the regulatory requirements, while still maintaining oversight and decision‑making authority.
Schemes generally have two pathways
| option | what it involves |
|---|---|
| Retain ownership and outsource compliance | The scheme keeps ownership of its metering and renewable assets and engages a specialist provider on a fee‑for‑service basis to manage compliance. This allows the scheme to maintain control, continue negotiating competitive electricity prices, and retain long‑term savings from solar, batteries or EV charging (if applicable). |
| Engage a third-party electricity retailer | Some retailers offer to take over the entire energy‑selling role. While this may reduce administrative work, it usually means the scheme hands over ownership and control of its infrastructure and loses the ability to benefit from future cost savings. Pricing and decision‑making shift to the retailer. |
Each scheme will need to carefully consider which model best protects owners’ long‑term interests.
Industry advocacy and next steps
The Strata Community Association WA (SCA WA) has recently reiterated concerns to the State Government about the practical impacts of the reforms. The Government has released an Exposure Draft of the AES Code of Practice. Still, several important elements from the earlier Voluntary Embedded Network Code of Practice have not yet been addressed. A further draft is expected, and the sector is awaiting clarity.
What volunteer CoO members can do now
- Review your current embedded network arrangements
- Ask your strata manager how they plan to obtain specialist compliance support
- Be cautious about unsolicited offers from retailers
- Consider the long‑term value of retaining ownership of your infrastructure
- Stay informed as the final code is released
This post appears in the April 2026 edition of The WA Strata Magazine.
EnergyTec E: damien.moran@energy-tec.com.au P: 08 9382 7700
