The future of embedded networks in NSW

Maximum prices for electricity and centralised air-conditioning

On 9 November, the Minister for Energy approved IPART’s methodologies for setting maximum prices for electricity and centralised air-conditioning supplied to residential embedded network customers.

The Minister has written to IPART requesting that the maximum electricity prices commence within 3 months after we make the determination. The Minister has also asked that the maximum prices for centralised air-conditioning commence later, at the same time as the maximum prices for centralised hot water and gas.

We will shortly publish a determination setting the maximum electricity prices for residential embedded network customers. The determination will specify the date when these maximum prices commence. The proposed maximum electricity prices are shown below.

Proposed maximum electricity prices for residential embedded network customers (including GST), 2026-27

We set maximum prices by benchmarking them to electricity offers available to on-market residential customers during July and August. For each electricity distribution district, we use the median of active retailers’ lowest supply charges and the median of their lowest usage charges over the benchmarking period. Active retailers are those with at least 1,000 residential electricity customers.

Further information on how these maximum prices have been set is available in the Report on Consultation Outcomes.

We will update stakeholders through the embedded network mailing list when the determination is published.

We have not recommended a billing standard or maximum price methodologies for centralised hot water or gas

We have not recommended to the Minister a billing standard or methodologies for setting maximum prices for centralised hot water or gas supplied to residential embedded network customers.

We will continue to engage with stakeholders as we develop the billing standard and remaining maximum price methodologies. We will provide stakeholders with further information about this work in 2027.

We have published a report on consultation outcomes

In June 2026 we released a consultation paper seeking stakeholder views on a draft billing standard and aspects of the methodologies for setting maximum prices for residential embedded network customers. 

We received 52 submissions. The non-confidential submissions have been published. We would like to thank stakeholders for their detailed engagement.

We have published a report on consultation outcomes. The report explains the issues raised in stakeholder submissions and how we took these into account when recommending methodologies to the Minister.

New requirements for embedded network sellers from 1 July 2026 

From 1 July 2026, embedded network sellers have been required to: 

• be a member of the Energy & Water Ombudsman NSW (EWON), if they are not already
• publish, and keep up to date, on their website information about the services they provide, the prices they charge and the addresses where they supply those services
• publish information about the system’s energy efficiency, if they provide centralised air-conditioning and bill customers for their consumption

We are monitoring and enforcing compliance with these requirements. 

Read about the requirements for embedded network sellers in NSW.

Maximum prices apply to land lease customers that receive electricity through an embedded network 

In 2024, the NSW Government introduced maximum prices for embedded network customers in residential land lease communities. 

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. 

Read about maximum electricity prices for residential land lease communities.

About embedded networks 

Embedded networks are private energy networks for services such as electricity, hot water and gas. They are often found in apartment blocks, retirement villages and caravan parks. 

Customers in embedded networks often have limited ability to switch energy retailer or supplier if they are not satisfied with prices or service levels.