Sub-metering of multi-unit and non-residential properties

Prior to 1 January 2008

Prior to 1 January 2008 it was not mandatory to install water meters within multi-unit residential premises and commercial premises.

For community title schemes water meters were usually installed outside the property boundary by the water service provider (mostly local government). Charges for water supplied to the lots within the scheme are often levied on the body corporate.

Under the Body Corporate and Community Management Act 1997 (BCCM) these charges were often distributed amongst lot owners on the basis of lot entitlements. This meant that individual lot owners had no knowledge of their individual water use and may be discouraged in their attempts to reduce their individual consumption.

Some local governments chose to mandate the supply of water meters within community title schemes by conditioning development approvals. However, issues relating to ownership of water meters have remained unresolved.

In addition, like community title schemes, many commercial and industrial premises had no means of measuring water use to some buildings.

Changes after 1 January 2008

The provision of sub-meters in new buildings from 1 January 2008 will allow for the delivery of personalised information on water use to households and businesses in new multi-unit developments.

The intent is that any premises drawing a water supply from the water service provider will be required to install sub-meters for separate lots in any type of building under a community title scheme, including common property, and all rented or leased sole occupancy units in class 2, 4, 5, 6, 7 or 8 new buildings. In a multistorey office building (e.g. a class 5 building) that is not under community title where the sole occupancy units cannot be identifed then as a minimum one sub-meter per floor will be required.

The QPW code is the primary tool for introduction of sub-meters. Part 4 of the QPW code specifically deals with "Water meters for new premises". It is divided into four performance criteria and four acceptable solutions. These have been designed to be simple and easy to read. An important part of the introduction of meters is the premises upon which the meters must be installed. The code specifically defines the 'meterable premises' that are required to be supplied with water meters.

This measure will ensure that water service providers will be able to directly charge the owners of separate lots in new buildings for water consumption. It will also enable the provision of an itemised bill based on sub-meter readings to the owners of new buildings under single title with multiple tenancies. The owner can then opt to pass the cost of water onto the individual user.

Amendments will also be made to the BCCM to prohibit body corporates from making their own charging arrangements for water use. This will apply to meters installed in a new community title scheme established after 1 January 2008 for plumbing compliance requests made after 31 December 2007.

Water service providers will own and maintain the sub-meters under the Water Act 2000, with the service provider either installing, or contracting with a plumber, to install sub-meters. Section 383 of the Water Act 2000 provides that a meter is the property of the water service provider. To provide consistency with the Water Act 2000, amendments to the BCCM will clarify that a device installed for measuring the reticulation or supply of water for a community titles scheme is the property of the service provider and not the body corporate.