Embedded electricity networks – common in retirement villages, land lease communities, apartment blocks and shopping centres – supply multiple premises from a single grid connection and may include electricity, gas, hot water, chilled water or air conditioning. An estimated 95,000 NSW households are covered by these arrangements.
NSW Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms address longstanding issues of limited choice and opaque pricing. “These new measures will create a more sustainable and customer-focused embedded network market for the future,” he said.
The NSW Government has announced a price cap for embedded networks, set broadly equivalent to competitive market offers and pegged to the median of the lowest offers available.
Alongside fairer pricing, new consumer protections will include:
- Free, independent dispute resolution via the NSW Energy & Water Ombudsman
- Access to national and NSW rebates and payment support for customers in hardship
- Upfront disclosure of embedded network arrangements before purchase or lease
- Limits on contract length, preventing customers being locked into lengthy supply deals
Currently, many operators outsource their embedded networks to third-party retailers. A gap in the law means these providers can charge residents more than the Act’s utility limits allow. The reforms close that gap.
The State Government is implementing Action 26 of the NSW Consumer Energy Strategy and says it has supported and is actioning 36 of IPART’s 38 recommendations on embedded networks. Implementation has begun, with legislation to be introduced this year to enact the price cap and other key changes.
To view the NSW Embedded Network Action Plan, click here.