Plans are underway to amend the Strata Schemes Management Act 2015 to stop developers from locking in future owners corporations into long term utilities contracts.
Over 200,000 lot holders of strata schemes registered in NSW in the last five years will have the option to choose their utility provider allowing them the choice to find the best service for their individual needs.
Long term contracts locking an entire strata lot into a utility contract with a certain provider will now be treated the same way as long-term strata and building management contracts.
The owners corporation will review contracts and can renew, change or opt-out of contracts, potentially saving up to $9 million over ten years and improving consumer choice.