IPART has completed its review of embedded networks in NSW. We recommended:
- methodologies for setting maximum prices for electricity, gas, and hot and chilled water in embedded networks, based on what on-market customers pay for these services
- a compliance and enforcement framework for new protections
- that the NSW Government should not prohibit the establishment of new hot and chilled water embedded networks.
The NSW Government has responded to IPART’s recommendations
The NSW Government has responded to IPART’s report as part of its Embedded Network Action Plan, which aims to give embedded network customers the same protections as those with traditional energy supply arrangements. The NSW Government supported and is actioning 36 of IPART’s recommendations, including:
- introducing maximum prices for electricity, gas, hot water and air conditioning in embedded networks to protect consumers from paying too much
- authorising IPART to determine these prices.
The NSW Government’s Embedded Network Action Plan includes several other actions to ensure embedded network customers:
- can access free and independent dispute resolution through the NSW Energy and Water Ombudsman
- can access NSW energy rebates and payment support programs
- are protected from long energy supply contract terms.
Embedded network customers in residential land lease communities are already protected by maximum price caps
The NSW Government has already introduced maximum prices for a subset of embedded network customers in residential land lease communities.
Since 25 September 2024, operators of land lease communities in NSW must charge less than or equal to the rates for the median market offer for that distribution area as determined by IPART.
Our determination of maximum prices for residential land lease communities, and information on our role in setting these prices, is available here.
NSW Fair Trading also publishes information on commonly asked questions about residential community electricity.
About embedded networks
Embedded networks are private energy networks for services such as electricity, hot water and gas. They are typically found at more recent residential developments, shopping centres, and caravan parks.
Customers in embedded networks have limited access to retail competition and competitive market forces to put downward pressure on prices.