An embedded network can affect how utilities are supplied, managed and charged in a community titles scheme. It may also raise questions about the body corporate’s responsibilities, service providers, meters and dispute processes.
The available body corporate legislation does not provide a technical definition of an embedded network. It does set out how a body corporate can supply services, manage common property and engage contractors. This guide explains what to check and who may help.
What is an embedded network?
In practical discussions, an embedded network usually refers to utility infrastructure and supply arrangements for a building or complex containing multiple lots. The utilities may include electricity, water or other services.
The Body Corporate and Community Management Act 1997 (BCCM Act) says a body corporate may supply services for the benefit of owners and occupiers, or engage another person to supply those services, where authorised by the applicable regulation module. It must also administer, manage and control common property and body corporate assets reasonably and for the benefit of lot owners.
The body corporate’s records and contracts are therefore important when you are working out how services are supplied at your scheme. The term “embedded network” does not, by itself, tell you who owns the infrastructure, who issues invoices or how costs are allocated.
For a general explanation of utility infrastructure, see our article on utility infrastructure.
How can you tell whether your body corporate has an embedded network?
Start by checking the documents held by your body corporate. Useful records may include:
- contracts for electricity, water or other utility services
- service agreements with a utility provider or network manager
- information about meters and common property infrastructure
- general meeting motions approving contracts or expenditure
- invoices, levy notices and financial records
- correspondence about utility supply or changes to the network.
Ask your body corporate manager or committee:
- How are utilities supplied to each lot?
- Who owns and maintains the relevant infrastructure?
- Who reads the meters and issues invoices?
- Is there a service provider or embedded-network manager?
- What contract or body corporate resolution authorises the arrangement?
- How are problems, billing questions and maintenance requests handled?
The BCCM Act allows a body corporate to deal with common property and body corporate assets in the way authorised by the applicable regulation module. It may also supply services or engage another person to supply them.
A body corporate must keep proper accounting records and prepare a statement of accounts for each financial year. These records can help the committee understand payments made under utility arrangements and the services engaged by the body corporate.
If you are buying a lot, the body corporate records and contract information may help you identify ongoing utility arrangements before settlement. You can also ask for specific information through the appropriate body corporate records process.
Who supplies and manages utilities in an embedded network?
The supplier may be the body corporate or another person engaged by the body corporate. The legislation permits the body corporate to engage another person to supply services for owners and occupiers, subject to the authority provided by the applicable regulation module.
A body corporate may also engage a person as a service contractor. In the Standard Module, an engagement must be in writing and state the term, the functions the contractor must or may perform, and the basis for calculating payment.
The body corporate must approve an engagement of a service contractor by ordinary resolution. For some service contractor engagements, the motion must also be decided by secret ballot, and the meeting material must include the relevant terms of the engagement.
An embedded-network manager may therefore be engaged as a service contractor, depending on the arrangement. The contract should state who is responsible for administration, maintenance, meter-related work, billing enquiries and communication with residents.
Check the contract before assuming that the body corporate, the service provider or individual lot owners are responsible for each part of the arrangement. You can also ask whether the infrastructure is common property or a body corporate asset. Our guide to installing water meters may be useful where water metering is involved.
How are electricity, water and other utility charges calculated?
There is no single charging method for every embedded network. The result may depend on the utility, the metering arrangements, the contract, the applicable legislation and the body corporate’s records.
Ask for a written explanation of:
- the period covered by the charge
- the meter reading or other basis for calculation
- any fixed or service charges
- the person or entity issuing the charge
- whether the charge is separate from body corporate contributions
- the process for checking or disputing the amount.
Body corporate contributions are a separate matter. The body corporate must adopt administrative and sinking fund budgets each financial year, then fix the contributions payable by owners based on those budgets.
A contribution notice must state the total contribution, the amount currently payable, the payment date, any discount, any penalty and any arrears. The notice may also include an amount payable for a specially contracted service enjoyed by the owner.
That provision does not answer every question about embedded-network billing. A body corporate contribution needs to be distinguished from a utility charge issued under a separate supply arrangement.
If a charge appears on a levy notice, ask the body corporate manager what it relates to and the authority for including it. Keep copies of notices, invoices, meter information and correspondence.
Who pays for meters, upgrades and switching costs?
Meter installation, replacement, upgrades and changes to supply arrangements can involve different parties. The answer may depend on the existing infrastructure, the relevant contracts, the location of the equipment and the rules applying to the proposed work.
The person requesting a change, or the body corporate, does not automatically pay. Ask for:
- a written scope of the proposed work
- the estimated cost and who prepared it
- details of any required access to common property
- the contract or resolution authorising the work
- information about future maintenance and replacement
- confirmation of who will own any new equipment.
The body corporate is responsible for managing common property and body corporate assets reasonably and for the benefit of lot owners.
If the proposed work involves body corporate spending, the committee should check the applicable approval and quotation requirements. For major spending considered by a general meeting, owners must generally receive at least 2 quotations, unless an exceptional reason makes that impracticable.
A change to a utility arrangement may also require access to a lot or common property. The body corporate’s statutory entry power generally requires at least 7 days written notice, unless there is an emergency.
Get advice on the specific contract and technical arrangements before agreeing to significant costs or changes. Individual switching rights and electricity-market requirements are not covered by the body corporate sources used for this article.
What should you do if you have an embedded-network billing dispute?
Start with the supplier or person who issued the charge. Write down the issue clearly and attach the relevant invoice, meter reading, levy notice or contract extract.
Ask for:
- an explanation of how the charge was calculated
- the records supporting the amount
- confirmation of the responsible decision-maker
- correction of the account if an error is identified
- details of the next step if the issue remains unresolved.
If the issue concerns a body corporate decision, common property, a body corporate contract or the administration of the scheme, raise it with the committee or body corporate manager first. Keep the discussion focused on the particular decision, document or charge in dispute.
The Office of the Commissioner for Body Corporate and Community Management provides information about body corporate legislation and dispute resolution services. It can help with BCCM Act disputes through conciliation or adjudication, but it cannot provide legal advice or help with matters dealt with under other laws.
You should try to resolve a body corporate dispute through self-resolution before making a formal dispute resolution application. If the matter remains unresolved, conciliation or adjudication may be available, depending on the type of dispute.
Who can help with an embedded-network problem?
The right contact depends on the problem:
- Body corporate manager or committee: ask about the scheme’s contracts, decisions, infrastructure and records.
- Utility supplier or network manager: ask about invoices, readings, supply arrangements and service requests.
- Office of the Commissioner for Body Corporate and Community Management: ask about BCCM legislation and whether a body corporate dispute resolution process may apply.
- Solicitor or other qualified adviser: obtain advice about individual contracts, disputed costs, technical requirements or rights under laws outside the BCCM legislation.
The Commissioner’s Office provides general information, forms and dispute resolution services for relevant body corporate disputes, but it cannot give legal advice, directions or rulings about other laws.
For electricity-market questions, check the current information provided by the relevant energy authority or obtain advice about your particular circumstances. The body corporate’s BCCM obligations do not answer every question about electricity supply, metering or retailer arrangements.
An embedded-network question is usually resolved by checking the supply arrangement, contract, meter information and body corporate records rather than relying on assumptions. If you need help understanding your body corporate records or utility arrangements, contact our team at reception@stratacare.com.au.
