Five Things Every Strata Manager Needs to Know About the New Alternative Electricity Services Compliance Rules

Western Australia's Alternative Electricity Services (AES) framework is moving from voluntary to mandatory regulation. For strata managers overseeing buildings with embedded networks, the obligations are real and the preparation window is now open.

Here are five things worth understanding before the mandatory deadline arrives.

1. The compliance obligation sits with the “Embedded Network Seller”.

The AES Code attaches compliance obligations to the Embedded Network Seller — the entity legally responsible for supplying electricity to residents within the network.

In many WA apartment buildings, that entity is not a specialist operator. It is the strata company itself. If a building manages its own embedded network, collects electricity payments, or holds the master meter supply contract without a specialist provider in place, the strata company is likely the Embedded Network Seller.

For strata managers, the question to raise with every committee in your portfolio is straightforward: who is the Embedded Network Seller for this building?

2. The regulatory timeline is confirmed.

The AES regulatory timeline for embedded networks is now confirmed by the WA Government.

Key dates:

• Consultation on the draft AES Code of Practice for embedded networks is expected in the second half of 2026.

• Registration with the Economic Regulation Authority (ERA) opens mid-2027.

• Mandatory compliance follows registration.

The enabling legislation, the Electricity Industry Amendment (Alternative Electricity Services) Act 2024, has already passed through Parliament. This is a confirmed regulatory program, not a proposed change.

3. There are nine compliance obligations.

Many strata-run networks currently meet fewer than half of these obligations. Based on the voluntary code and publicly available consultation materials, the mandatory AES Code is expected to require the following:

• Registration with the Economic Regulation Authority

• Membership of the Energy and Water Ombudsman scheme

• Written supply agreements with each resident

• Billing at least every 60 days

• Itemised invoices meeting specified format requirements

• A formally adopted financial hardship policy

• A formally adopted family violence policy

• A maintained life support register

• A formal internal dispute resolution process

For strata-run embedded networks, several of these are genuinely new territory. Written supply agreements, formally adopted hardship policies and a maintained life support register are not currently standard practice across most WA strata schemes. These are enforceable obligations under the incoming mandatory code, not administrative formalities.

4. The strata committee decision cycle is the biggest timing risk.

Strata committees typically take three to six months to make significant operational decisions. Committees meet infrequently, resolutions require proper process, and by-laws may need updating. A committee that becomes aware of the ERA registration requirement when the portal opens in mid-2027 has, at best, a marginal window to assess its position, pass the necessary resolutions and complete registration before the mandatory deadline arrives.

The practical implication for strata managers is clear. Buildings with embedded networks should begin their compliance assessment now, not when the portal opens.

5. A free compliance assessment tool is available.

Bright Connect has built a free interactive compliance assessment tool to help strata managers and strata committees understand their obligations. The tool is available at aes.brightconnect.live and takes approximately five minutes to complete.

It walks through the key obligations under the current voluntary code and the expected mandatory requirements, identifies where a building may have compliance gaps, and generates a written compliance report and action plan tailored to the building's situation. The report can be taken directly to the next committee meeting as a basis for discussion.

Bright Connect's approach Bright Connect provides metering, invoicing, payment collection, debt management and full code compliance as an outsourced service for strata companies operating embedded networks.

Under this arrangement, the strata company retains pricing control and the commercial benefits of the embedded network, while compliance obligations are handled by a specialist provider already registered under the voluntary code.

For strata managers looking to understand the compliance position of their buildings ahead of the mandatory code, the assessment tool at aes.brightconnect.live is a practical first step.

This article is brought to you by SCA (WA) sponsor Bright Connect. Bright Connect Pty Ltd is a Perth-based embedded network utility services provider operating across residential and commercial developments in Western Australia.

Bright Connect is registered under the Voluntary Embedded Networks Code of Practice. 1300 908 760 | admin@brightconnect.com.au | aes.brightconnect.live