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Do you need a by-law to install an EV station?

A by-law is essential whether or not the owners corporation or individual lot owner are carrying out the installation. If the owners corporation installs the charger then ensure there is a billing system that individualises the use and cost. Check with your local authority if they have any regulations applicable to the installation and maintenance of EV stations and engage a strata lawyer with expertise in this area to advise and draft a by-law.

 

We also suggest you also contact your insurer to establish if they have any mandatory requirements that affect your cover and/or premiums.  There are also specific sections in the Strata Schemes Management Act 2015 that relate to sustainability infrastructure and matters that the owners corporation must consider prior to implementing this. 

 

What decisions can the Strata Committee NOT make?

The Strata Committee may make any decision of the Strata Scheme except for decisions that the SSMA says it cannot make. The decisions that the Committee cannot make are called “restricted matters”. This means that the Committee can do anything that is otherwise within the power of the strata scheme, except for the following matters that can only be decided at a general meeting:  

 

– Striking levies or special levies.  In most instances, the Strata Committee should understand and agree (as a majority) to the proposed budget  

– Changing the by-laws  

– Major renovations including all bathroom renovations that impact the waterproofing  

– Appointing a Building Manager  

– Appointing a Strata Manager  

– Borrowing money on behalf of the Strata Scheme  

– Altering common property  

– Agreeing to a License or Lease over common property  

– Restricted Matters that the Strata Scheme at general meeting has determined may only be considered at a general meeting  

– Any matters set out in the Act as requiring an ordinary resolution, a special resolution or a unanimous resolution  

– Legal action costing over $13,000   

– Payments to a member of the Strata Committee (honorarium)  

What is an Embedded Network?

Embedded networks are private electricity networks that serve multiple premises, such as in apartment blocks, caravan parks and shopping centres. 

 

If you do not have an embedded network in your scheme, be prepared to be approached. When and if that occurs, immediately contact a legal adviser who has experience and expertise in this area. It is a tricky and complex area of law and the devil in the detail.  

 

Embedded networks in strata buildings can have both advantages and disadvantages. It’s important to establish whether they are mandatory or not and can vary by location and regulations. In New South Wales, the rules differ. In addition to consulting with a lawyer, it is worthwhile to consult with the local authorities for guidance.

What are the Pros of an Embedded Network?

Cost Savings: Embedded networks can sometimes negotiate better energy rates, resulting in potential cost savings for residents. 

 

Centralized Management: They allow for centralized energy management, making it easier to monitor and optimize energy usage. 

 

Renewable Energy Integration: Embedded networks can facilitate the integration of renewable energy sources, reducing the environmental impact. 

 

Potential Income: Strata committees can earn income from managing the embedded network, which can offset other strata costs. 

What are the Cons of an Embedded Network?

Limited Choice: There may be limited options for energy providers, reducing competition and potentially leading to higher prices. 

 

Lack of Transparency: It is not unusual to find it challenging to understand how energy costs are calculated within embedded networks, leading to transparency issues. Hence the engagement of experts is recommended. 

 

Contractual Obligations: One of the risks is after signing up you may find the owners corporation is locked into energy contracts which can lead to future unhappiness and disputes from residents/owners because of the limit of flexibility. 

 

Regulatory Changes: Regulations governing embedded networks can change over time, potentially impacting their viability. It is important to keep abreast of any changes. 

Are Embedded Networks Compulsory?

Whether embedded networks are mandatory, depends on local regulations and the strata by-laws.  

 

Consult with legal experts familiar with NSW strata laws to determine the specific requirements for your situation and advice. This should be recorded and hopefully that will help establish that the owners corporation has acted in the best interests of the owners and residents and minimise future misunderstandings and disputes. 

 

Here is a useful link from the New South Wales Fair Trading