IPART has completed its review of the future of embedded networks in NSW. We recommended:
- methodologies for setting maximum prices for electricity, gas, and hot and chilled water for customers in embedded networks, based on what on-market customers pay for these services
- a compliance and enforcement framework for any new protections
- that the NSW Government should not prohibit the establishment of new hot and chilled water embedded networks.
The NSW Government is currently considering IPART’s recommendations
The NSW Government is currently considering IPART’s recommendations as part of its Embedded Network Action Plan. This plan aims to bring outcomes for embedded network customers in line with those for customers in traditional energy supply arrangements. It includes a number of actions in addition to setting maximum prices for embedded network customers. These include ensuring embedded network customers have equal access to emergency financial support in times of crisis, and protecting electricity embedded network customers in strata schemes from long contract terms.
New maximum prices will come into effect for embedded network customers in residential land lease communities
While the NSW Government is considering our recommendations and how they will apply to all embedded network customers, it has introduced new maximum prices for a subset of embedded network customers.
From 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. The new laws require IPART to determine what the median market offer is.
Our determination of maximum prices, 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.