Do Tenants Pay Electricity Supply Charge in NSW? – Martin and Grace Version
NSW tenancy agreements state who is responsible for utility charges such as electricity in rental properties. If a property is separately metered, it is generally the tenants’ responsibility to pay for their usage and supply of electricity and other services.
Find out more about rental utility charges in New South Wales, who is responsible for paying and what rules and conditions apply.
Let’s take a closer look.
Do Tenants Pay For Other Utility Charges?
In NSW, the legislation that governs utilities is the Residential Tenancies Act. Utility costs such as electricity, gas, oil, sewerage, and water are generally paid for by the tenant, but only if it is separately metered. If the rented property does not have a meter, it is the landlord’s responsibility to pay.
The landlord will also be responsible for the installation and initial connection of utilities and any repairs.
Details of utility costs should be stated in the residential tenancy agreement.
When tenants move into a rental, they are responsible for having the utility services, such as electricity, reconnected in their name.
When a renter moves out, they must notify the service provider to advise the date they are leaving the rented premises. This will generate a final bill that the renter must pay. After this date, the landlord must pay for all utility costs until another renter moves into the property. This will avoid paying for another tenant’s water usage.
What Is Separately Metered?
A tenant will only be required to pay for electricity, gas and water if the rental property is separately metered. This way, the tenant will only pay for what they use.
A meter at a rented premises can measure a quantity of:
- Electricity (national meter identifier NMI)
- Gas (delivery point identifier DPI or meter installation registration number MIRN)
- Water
- Oil
The DPI, MIRN and NMI are unique numbers used by the energy suppliers to identify the meter and can be found on the energy bills. It is a way to match the property with the account to ensure that the correct invoice is issued.
A charge for “separately metered” can only make if the meter is:
- Installed as per industry practice or manufacturer’s guidelines
- Satisfies the Australian standard
- Only measures water supplied to the rental property
- Enables a separate bill to be issued
What Are Embedded Network Rentals?
For high density apartment buildings, strata schemes, retirement villages, and land lease communities using an embedded network, which may not be separately metered, the payment of utilities may be managed differently.
As a private energy network within a building, it is managed by the site owner or owner’s corporation. They buy energy from a retailer and sell it to the residents.
The tenants will only pay for the services they use and must check the conditions in the residential tenancy agreement.
A landlord or agent must state in the tenancy agreement that the electricity or gas supply is from an embedded network.
High Usage
When a tenant receives an unusually high bill for such charges as water, electricity, gas or another utility, it may be due to a hidden fault at the rented premises. When an excessive usage charge appears the rental provider will only need to pay for the very high bill under the following circumstances;
- The landlord was notified quickly by the tenant
- The tenant provided the details of the fault responsible for the excessive bill
- The issue was not the tenant’s fault
- The service provider was not responsible for the issue
If a tenant has paid for a high utility, that is the landlord’s responsibility, they are entitled to request payment/reimbursement for the charges.
Bottled Gas
If the rented premises use bottled gas, the landlord pays for the installation, initial connection and supply of gas bottles at the beginning of the tenancy. The tenant must pay for all supplies or hire of the gas bottles during their lease.
The landlord must pay for all gas supply charges if there are no gas appliances within the rental premises.
The rules for gas payments are different in buildings with a centralised hot water system, such as for social housing tenants. Payment for gas is calculated by individual hot water meter readings, which record how much hot water is provided to the property.
Water
Before a tenant can pay their for their water usage in a rental premises, the landlord and the property must comply with the following;
- The property must be separately metered
- The rental premises must pass the water efficiency standards
- The flow rate should be less than nine litres/minute for all taps in the home except laundry taps, bathtub taps, dishwasher, washing machines and outside taps
- No leaking taps
- Must have a 3-star water efficiency rating
- The charges must not exceed the amount stated on the water bill
- Payment for a bill must be made within three months, or the tenant is not required to pay
- Water usage charges should be paid separately to rent
- The tenant should be provided with a copy of the water bill and given at least 21 days to pay
- The landlord should pay the water supply service charge
- If a landlord receives a rebate, they should pass on the discount to the tenant
The water billing periods will generally not align with the lease commencement date. It is crucial that the water meter reading is noted on the condition report at the beginning and end of the tenancy to ensure that the tenant only pays for their water use.
Septic Tanks
A tenant is responsible for paying for the pumping out a septic system at a rental premises for their usage only. The level of the septic tanks should be noted in the ingoing condition report.
The landlord or property owner must pay any charges relating to sewerage infrastructure or cleaning of tanks.
Tenancy agreements should specify the details of sewerage charges.
Phone And Internet
Generally, the tenant must pay for all ongoing usage costs for the phone and internet. The tenant pays for all associated costs if it is a new property and they want to set up a landline or telephone line. They must also obtain the landlord’s permission. Suppose there is an existing line at the property, and a tenant wishes to set up a connection. In that case, they must pay for the general connection fee unless alternative arrangements have been specified in the rental agreement.
A landlord is not responsible for providing telephone, internet or television connections within the home. If tenants wish to set up internet connections, they must obtain permission from the landlord or rental provider.
How Do Utility Charges Work In Share Accommodation?
In a rental premises with multiple tenants with one residential tenancy agreement, it is a joint responsibility for all utility bills to be paid.
In a share house, if the account is in one person’s name, they take full responsibility for the bills. The burden can be shared jointly if the account has more than one name. The account details should be kept up to date.
As it can be difficult to determine individual usage, effective communication is essential in share accommodation environments. Everyone is responsible for contributing financially, and they must agree on how the changes will be divided.
Summary
In NSW, the legislation that governs utilities is the Residential Tenancies Act. Utilities such as electricity, gas, oil, sewerage, and water are generally paid for by the tenant, but only if it is separately metered. The meter must satisfy the Australian standard, be installed correctly and enable a separate bill to be issued.
If the rented premises use bottled gas, the landlord pays for the installation, initial connection and supply of gas bottles at the beginning of the tenancy. The tenant must pay for all supplies or gas hire during their lease.
A landlord is not responsible for providing telephone, internet or television connections within the home.
A tenant must pay for pumping a septic system at a rental premises for their usage only.
The landlord will also be responsible for the installation and initial connection of utilities and any repairs.
Details of utility fees should be stated in the residential tenancy agreement.
For apartment buildings, strata, retirement villages, and land lease communities using an embedded network, which may not be separately metered, the payment of utilities may be managed differently.
The rental premises must pass the water efficiency measures before a tenant can pay for their water usage for rental premises. A separately metered system will ensure that only the tenant’s usage is charged.