In summary:
- Common property power and gas bills should be reviewed regularly, even in smaller Owners Corporations.
- Comparing rates, supply charges and usage patterns can help identify better-value energy plans.
- Clear records and committee oversight make it easier to manage recurring costs and explain decisions to owners.
Common property energy bills can quietly become part of the yearly routine. The invoice arrives, it is paid, the amount is added into the budget, and owners may only notice the cost when the budget is reviewed and fees are increased. For many Victorian Owners Corporations, these bills may relate to simple shared services such as hallway lighting, garden lighting, an electric gate, a garage door, an intercom, a shared hot water system or a common gas meter.
Because the services can feel minor, the bills are easy to overlook. Yet small recurring costs still matter. A few hundred dollars saved each year can help offset other increases, reduce pressure on levies or free up funds for maintenance. For larger properties, the opportunity can be more significant, particularly where pumps, lifts, heating, cooling and ventilation systems are also involved.
Energy plans also change. Retailers update offers, discounts expire, usage patterns shift and regulated reference prices are reviewed. That means an Owners Corporation may have started on a suitable plan, then gradually drifted into a less competitive position without anyone making an active decision.
What makes common property energy bills different from household bills?
A household bill usually reflects one resident’s private usage. A common property bill is shared by all owners through the Owners Corporation. That makes transparency important. Owners should be able to understand what services the bill relates to, why the cost is included in the budget and whether the plan has been reviewed recently.
Common property usage can vary significantly from one property to another. Some small blocks use very little power, perhaps only communal lighting and an intercom system. In that case, the daily supply charge can make up a large part of the total bill. A plan with an attractive usage rate may deliver limited value if the property barely uses electricity. Another plan with a lower daily supply charge may suit the site better.
Gas can raise similar questions. A common gas meter may service shared hot water, heating or at times, cook tops in the individual lots. If usage has changed, or if equipment has been upgraded, the old plan may no longer match the property’s needs.
How often should power and gas rates be reviewed?
An annual review is a sensible habit. It does not need to be complicated. The committee with the assistance of the strata manager can gather recent bills, to compare available offers against the property’s actual usage and the current rates on offer
Reviews are especially worthwhile when a contract period is approaching its expiry, when a retailer advises of a rate change, if common property equipment changes, if usage has been estimated as opposed to an actual read, or when the owners notice an irregular increase in costs. A review can also be useful before the Annual General Meeting, as it gives the committee clearer information when preparing the proposed budget.
For smaller Owners Corporations, the process may be quite straightforward. There may be only one electricity bill and no gas bill. Even then, a quick check can confirm whether the current plan remains competitive.
What should be checked before changing energy retailers?
Start by understanding the current bill and confirming that thesupply address and meter number are correct. Then look at the tariff type, daily supply charge, usage rate, contract end date and any fees or conditions, including potential exit fees if the contract has not yet expired. It’s also important to check that the bill relates only to common property, especially in older buildings where meter arrangements may be less obvious. If the bill does not appear to relate solely to common property, it’s important to clarify the meter arrangement before proceeding.
The next step is to compare the total yearly cost rather than focusing only on discounts. A large percentage discount can look appealing, but the final cost depends on the underlying rates, supply charges and conditions. The most useful comparison is based on the property’s actual usage over the past 12 months.
Before switching, the Owners Corporation should also check who has authority to approve the change. Some committees may have delegated authority for routine supplier decisions, while others may prefer to make the decision at their Annual General Meeting. . Keeping clear records in the minutes of the meetings helps avoid confusion later.
These steps apply to properties with a direct retail energy supply. Some developments operate within an embedded network, where energy is supplied and billed differently, and switching retailers may be limited. If your property does have an embedded network, it’s important to understand how this may affect available options. Your MBCM Strata Specialist can help guide these discussions.
Why can good record keeping make energy reviews easier?
Energy reviews are much easier when bills, contracts and supplier details are well organised. This is where professional strata management can make a practical difference. MBCM Strata Specialists support Owners Corporations with financial management, payment of accounts, budgeting and records, which helps committees see where regular costs are going and when they should be reviewed.
Good records also help committees explain decisions to owners. Whether a retailer is changed or retained, owners can see that the decision was based on usage, rates and expected annual cost, and that the bill was carefully considered.
How can Owners Corporations reduce usage as well as rates?
A better retail rate is only one part of the picture. Usage matters too. Many small improvements can reduce common property energy costs without changing how residents use the building.
In some cases, an Owners Corporation may also have access to a group or portfolio energy arrangement through their OC management company, depending on eligibility and location. These arrangements bring multiple properties together to negotiate energy supply as a collective, which can result in more competitive rates and simplified contract management.
A great place to start to understand your property’s options is with an energy audit. It generally focuses on common area lighting and provides proposals for LED upgrades, motion sensors, timers and daylight sensors to reduce unnecessary usage in stairwells, entries, car parks and garden areas. It may also consider other shared services such as garage doors, pumps, fans and shared hot water systems.
An audit can also highlight where equipment may not be operating as efficiently as expected, prompting further review, maintenance or, where appropriate, replacement. Regular maintenance checks and servicing of systems such as pumps, fans and hot water systems can reduce unnecessary energy use and extend the life of the equipment. Well-maintained systems typically operate more efficiently and use less energy than those that are not properly maintained.
Depending on the building, an audit may also highlight broader opportunities to improve efficiency, including renewable energy options such as solar and, in some cases, improved metering arrangements to better track and allocate usage.
Committees should consider whether the cost of upgrades is proportionate to the size of the property. In a small block, a modest lighting change may be more realistic than a major project, while larger upgrades such as new metering arrangements or renewable energy systems may only be appropriate where the cost and benefit align. The best approach is usually practical, staged and suited to the building.
What should owners ask at the next meeting?
Owners do not need to be energy experts to ask useful questions. They can ask when the common property electricity or gas plan was last reviewed, whether the current rate is fixed or variable, whether any discounts have expired and whether the property’s usage has changed.
They can also ask whether energy costs are expected to rise in the next budget and whether any simple efficiency improvements have been considered. These questions keep the conversation constructive and focused on shared benefit. While not all of these details may be available at the time of the meeting, they can prompt a review and help ensure this information is considered as part of the committee’s ongoing oversight. For committees, the aim is steady oversight. Common property energy bills rarely need dramatic action, but they do deserve regular attention. A simple yearly review can help ensure the Owners Corporation is paying fair rates, using energy sensibly and making informed budget decisions.
Committee’s may also find it useful to refer to independent comparison tools, such as the Victorian Government’s comparison website, to better understand how energy offers are structured and what to look for when reviewing plans. While these tools are primarily designed for households and small businesses, they can provide a helpful reference point when considering options for the property.
Where committees do not feel confident managing energy procurement directly, they may consider seeking assistance from an energy broker. Brokers can help compare available plans, negotiate with retailers and review contract terms, using their knowledge of the market to identity competitive options.
FAQs
Can an Owners Corporation change energy retailers?
Yes, provided the decision is made through the proper Owners Corporation process and any contract conditions and infrastructure limitations are checked first.
Is the cheapest offer always the best choice?
The best choice depends on annual cost, contract terms, billing clarity and how well the plan suits the property’s usage.
Do small blocks need to review energy bills?
Yes. Small blocks may have simple bills, but supply charges and expired discounts can still affect the annual budget.
Should gas and electricity be reviewed together?
Where both apply, reviewing them together gives the committee a clearer view of total common property energy costs and may strengthen the Owners Corporations position when comparing or negotiating with retailers.
Glossary of Terms
Common property: Shared areas or services managed by the Owners Corporation.
Supply charge: The daily cost of being connected to electricity or gas.
Usage: Refers to the amount of energy the property consumes over a period of time, typically measured in units such as kilowatt hours (kWh) for electricity or megajoules (MJ) for gas.
Tariff: The pricing structure applied to a meter, which determines how energy usage is charged.
Retailer: The company that sells electricity or gas and issues the bill.
Meter: The device that records electricity or gas usage for the property.