Electricity charges in land lease communities
As a home owner in a residential land lease community you have rights under the Residential (Land Lease) Communities Act 2013 and Residential (Land Lease) Communities Regulation 2015. This factsheet explains the law in NSW regarding electricity charges.
If the operator supplies electricity to the residential site they can charge a home owner if:
- it is a term of the site agreement, and
- the electricity is separately measured or metered, and
- the operator gives the home owner an itemised account and allows at least 21 days to pay.
Usage and supply charges
Electricity usage is charged per kilowatt-hour (kWh). Operators and third party suppliers can charge for usage and a daily supply charge (service availability charge).
The operator or the third party supplier cannot charge a usage charge or daily supply charge for the use of electricity that is more than the median retail market offer in the distribution area.
The Independent Pricing and Regulatory Tribunal (IPART) makes a determination once every 12 months of the median retail market offer in each distribution area.
The current determination commenced on the 25th September 2024:
Discount on daily supply charges
If the supply to your site is less than 60 amps the supply charge must be discounted as follows:
- if less than 30 amps is supplied you receive a 60% discount
- if between 30 amps and 60 amps you receive a 30% discount
Access to operator records
The operator or a third party supplier must provide all residents at least once a year written notice of the charges they pay for the supply of electricity to the community.
The operator must conduct a review of the offer in their contract or the third party suppliers contract for supply of electricity to the community once every 2 years unless the length of their contract exceeds 2 years then it must be conducted before they enter into a new contract.
To ensure they are receiving the best offer under the supply contract they must compare with at least one comparable offer from another retailer.
Within 30 days of the review being carried out the operator must provide to all residents written notice of the review including the comparable offers considered and the outcome of the review.
Refund of overpaid amounts
If you have been overcharged you are entitled to recover the overpayment. If the operator agrees you can deduct the amount from site fees that are payable by you.
If the operator disagrees that you have been overcharged, or with the amount you have been overcharged, you can apply to the NSW Civil and Administrative Tribunal (NCAT) to have the dispute resolved. The application must be made within 28 days of you becoming aware that you were being overcharged.
Reduction of site fees
If electricity supplied to your site by the operator is not separately measured or metered and the operator installs a meter, or stops supplying electricity, the operator must notify you of the change within 14 days of it occurring by giving you a utility cost notice.
The notice must state the cost of electricity that was factored into your site fees and how that has been worked out. It must also tell you what your new site fees will be and the date from which they are payable.
The notice must advise you of your right to apply to NCAT within 30 days if you dispute the amount of the utility cost i.e. the amount by which your site fees have been reduced.
Receipts
The operator must provide you with a receipt for accounts you pay in person, or upon request. The receipt must include the following particulars:
- the name and address of the community and the number of your residential site,
- your name,
- whether you are in debit or credit and by what amount,
- the period for which the charges are paid,
- the date on which payment was received, and
- the amount paid.
Late fees
If you have a site agreement pursuant to the Residential (Land Lease) Communities Act 2013 the operator can charge you a fee for a late or dishonoured payment. This fee cannot be more than the fee that the operator or third party supplier can charge as a retailer or exempt seller.
Exempt seller
The operator is an on-seller of electricity and is required to hold a retail exemption and abide by the Australian Energy Regulator (AER) (Retail) Exempt Selling Guideline.
As an exempt seller the operator is also required to be a member of the Energy and Water Ombudsman NSW (EWON).
You can make a complaint to the AER or EWON about your electricity supply, billing or charges.
See also
Updated 25 September 2024
This factsheet is intended as a guide to the law and should not be used as a substitute for legal advice. It applies to people who live in, or are affected by, the law as it applies in New South Wales, Australia. © Tenants’ Union of NSW.
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