The NSW Government is delivering a new plan to try to help reduce energy bills and add protections to ensure customers who are part of an embedded network have a fairer go. 

Embedded networks supply electricity to multiple premises from a single connection point to the main energy grid. They are often found in apartment buildings, retirement villages and shopping centres and can provide customers with electricity, gas, hot water, chilled water or air conditioning.  

Customers in embedded networks can find it hard to shop around for the best deal, so the state government is stepping in to help consumers by introducing a price cap that will be broadly equivalent to competitive market offers. The price cap will be set at the median of the lowest offers in the market.  

In addition to fairer pricing, there will be new consumer protections, including: 

• access to free and independent dispute resolution through the NSW Energy and Water Ombudsman, 
• access to national and NSW energy rebates and payment support programs for customers struggling to pay their energy bills, 
• providing customers with information about embedded network arrangements before purchasing or leasing a property in an embedded network, 
• preventing customers from being locked into lengthy energy supply contracts. 

It is estimated that there are more than 95,000 households in NSW with electricity embedded networks. Embedded networks can lower costs for residents through sharing infrastructure and facilitating the installation of consumer energy resources like solar panels and efficient shared heat pump hot water systems. 

The action plan, which delivers on action 26 of the NSW Consumer Energy Strategy, has been informed by the Independent Pricing and Regulatory Tribunal’s (IPART) review into the future of embedded networks in NSW. The NSW Government has supported and is actioning 36 out of 38 recommendations of the IPART review.  

Implementation of the plan has commenced. The NSW Government will introduce legislation this year to enact key reforms, including the price cap. 

To view the plan, visit www.energy.nsw.gov.au/nsw-plans-and-progress/regulation-and-policy/nsw-embedded-network-action-plan. 

Minister for Energy, Penny Sharpe, said, “The Minns Labor Government is delivering a reliable, affordable energy system that benefits communities, strengthens the economy and cuts climate pollution.  

“This action plan is a decisive step to making sure every energy consumer in our state, regardless of where they live and work, can access a fair energy deal.” 

Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, said, “For too long, people living in apartments, residential land lease communities and other properties with embedded networks have faced challenges that others don't, including a lack of competitive choice and at times, unclear pricing.  

“These new measures will create a more sustainable and customer-focused embedded network market for the future.”