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insightsMarch 25, 2026

Gas Sub-Metering: Fundamentals

An overview of how gas is measured and converted in strata schemes, and why correct methodology is essential for fair cost allocation.

By Ivy Ling

Gas Sub-Metering: Part 1 – Fundamentals

Gas sub-metering is increasingly common in Western Australian strata schemes, yet the way gas is measured, converted, and charged is still widely misunderstood.

This knowledge gap often leads to:

  • Incorrect cost calculations
  • Inconsistent practices between strata managers
  • Avoidable disputes between owners and councils of owners

This article explains how gas is measured in Western Australia, why a conversion is required, and how strata schemes should apply that conversion to ensure fair, transparent, and accurate cost allocation.

This is practical, experience-based guidance, not a technical or legislative standard.

How Gas Is Measured in Western Australia

In Western Australia, gas meters, including sub-meters installed within strata schemes are measured in volume, not energy.

Most meters record gas usage in cubic metres (m³). In some older residential or commercial buildings, you may still encounter imperial meters that record usage in cubic feet (ft³).

However, gas retailers do not bill based on volume.

Retailers charge for energy, which is expressed in megajoules (MJ) (or sometimes gigajoules, GJ). This distinction is critical:
the number shown on the meter is not the number used for billing.

As a result, all gas usage must be converted from volume to energy before costs can be allocated.

Why a Conversion Factor Is Required

Gas expands and contracts depending on:

  • Pressure
  • Temperature
  • Gas composition

Because these conditions vary across the network and over time, the energy content of one cubic metre of gas is not constant.

To account for this, retailers apply a conversion factor, which is made up of:

  • A heating value
  • A pressure correction factor

These components are combined into a single factor that appears on the gas bill.
Importantly, this factor can change each billing cycle.

What This Means for Strata Sub-Metering

Most gas sub-meters installed in strata schemes also measure volume (m³).

To allocate gas costs fairly, strata managers must replicate the retailer’s conversion process, not invent their own methodology.

If a scheme allocates costs using only raw m³ readings:

  • Owners may be over-charged or under-charged
  • The total recovered may not match the retailer’s bill
  • Disputes and loss of confidence are likely

This is especially important where the retailer bills in MJ or GJ, not m³.

Best-Practice Approach for Strata Managers

To ensure accuracy and transparency, the following steps should be applied consistently:

  • Confirm the unit of measurement for each lot’s sub-meter (m³ or ft³)
  • Identify the gas retailer’s conversion factor for the same billing period
  • Convert each lot’s usage using the retailer’s factor
  • Apply the retailer’s tariff rate
  • Reconcile the total allocations against the retailer’s invoice

This final reconciliation step is critical. It ensures the strata company is neither under-recovering nor over-recovering gas costs.

Why This Matters

Gas sub-metering is only fair when the conversion from volume to energy is applied correctly and consistently.

By aligning lot allocations with the retailer’s billing methodology, strata companies achieve:

  • Transparent cost recovery
  • Accurate, defensible billing
  • Alignment with industry-accepted practice
  • Confidence for owners and councils of owners

This is the standard Veritas advocates: clarity, accuracy, and integrity in every operational process, to the fullest extent achievable.

Coming Next

Gas Sub-Metering: Part 2 – Common Errors, Reconciliation Issues, and Practical Fixes