What utility charges can an operator pass on to homeowners?
In a land lease community, it is common for the operator to re-supply utilities to residential sites within the community. In these circumstances, an operator may ask homeowners to pay directly for any or all of the following:
- electricity
- gas
- water
- sewerage – only if the local water supplier charges for this separately.
Homeowners can be asked to pay for:
- usage charges – this varies depending on how much they use
- service availability charges or supply charges – that are fixed amounts.
Before an operator can pass on utility charges:
- the use of the particular utility on the site must be separately measured or metered
- the homeowner must have agreed to pay the particular charge under the terms of the site agreement. This is a standard term of the agreement.
If a site is not metered, and you want to charge for utilities, you must pay the cost of installing the meter.
If a homeowner hasn’t been paying a utility charge and an operator wants them to, the operator must give the homeowner at least 14 days written notice. There needs to be an agreed offset of the site fees. If the operator and homeowner cannot agree, an application can be made to the NSW Civil and Administrative Tribunal (the Tribunal).
The maximum service availability charge a homeowner can be asked to pay for both water and sewerage service availability is $50 in total each calendar year.
What is an operator’s billing responsibilities?
For electricity and gas bills, the operator (or third-party supplier) must provide bills in line with their obligations under the National Energy Retail Rules or the Australian Energy Regulator (AER) Exempt Selling Guidelines.
For non-electricity and gas bills, an operator must issue a bill to the resident, at least once every 3 months. The bill must include more details such as the:
- operator’s contact details
- date of issue
- date on which payment is due
- billing period
- identifier of the meter, if any
- dates on which meter readings were taken, and
- charges, fees and tariffs that apply and how each was calculated, including the usage rate and the total usage charge.
How does an operator charge for electricity in a community with an embedded network?
The new electricity charging reforms replace the previously used ‘Reckless’ method.
Since 25 September 2024, operators and third-party suppliers can only charge up to a set price for electricity that they sell to residents in communities with electricity embedded networks.
The Independent Pricing and Regulatory Tribunal (IPART) will set the maximum prices for each distribution district, which are the areas that different electricity distributors supply.
IPART’s determination of the median retail market offer
The table below lists the determined median market offer for residential customers in each distribution district in NSW (including GST, nominal).
| Distribution district (network) | Supply charge (cents/day) | Usage charge (cents/kWh) |
|---|---|---|
| Ausgrid | 94.91 | 34.72 |
| Endeavour Energy | 87.92 | 36.52 |
| Essential Energy | 143.00 | 41.65 |
To help you understand electricity pricing in communities with embedded networks, we have provided answers to commonly asked questions.
How much time must an operator give to pay?
When an operator provides an itemised account, they must give the homeowner at least 21 days to pay the charges.
What receipts must an operator provide?
An operator must immediately provide a receipt for any utility payments made in person. If payments are made by any other method, they only have to give a receipt if they are asked for one. A receipt for a utility payment must include:
- the name and address of the community
- the homeowner's or tenant's name
- their site number
- the amount paid
- any amount in debit or credit as at the date of payment
- the period covered by the payment, and
- the date the payment was received.
What if the electricity supply is not up to standard?
If the electricity being supplied to a site by the operator is less than 60 amps, the following daily supply charge discount applies:
Level of supply to site | Maximum daily supply charge |
|---|---|
less than 30 amps | 40% of daily supply charge |
30-59 amps | 70% of relevant daily supply charge |
Where 60 or more amps are capable of being supplied, a homeowner is required to pay the full service availability charge even if the home is not capable of receiving this amount of supply.
Can an operator charge late fees?
Yes. If a utility bill is not paid by the due date, an operator can charge a late fee. Late fees cannot be more than the local utility provider would charge. Check the local supplier’s website to see what fees they charge for late payments.
What else can an operator do if homeowners do not pay utility bills?
In addition to, or instead of, charging late fees, an operator can apply to the Tribunal for an order. The Tribunal can make an order in these situations without a hearing, if both parties agree. This order can be enforced as a debt in the local court. Extra fees and charges could be added if it gets to this stage. stage.
Can site fees be used to cover utility bills?
No. An operator cannot use money paid as site fees towards the payment of any other charges, including utilities.
Can an operator charge a fee for reading the meters?
An operator has the right to enter a site to inspect, read, service, repair or replace any meter, but no fee can be charged.
How are disputes over utility bills settled?
If a homeowner has an issue with the amount they are being charged, they should discuss this with the operator in the first instance. Homeowners have the right to ask the operator to provide them with reasonable access to bills and other documents that relate to their utility charges. If an agreement is reached the operator may:
- refund the overpayment directly, or
- allow the homeowner to deduct the amount from their site fees.
If you cannot agree, apply to the Tribunal for an order to resolve the dispute.