The future of embedded networks in NSW

In March 2026, amendments were made to NSW laws for embedded networks.

The reforms implement recommendations from IPART’s review into the future of embedded networks in NSW. They aim to ensure that embedded network customers pay similar prices and have equivalent customer protections to on‑market customers (those not in an embedded network). 

Under these reforms, IPART has new functions, including publishing billing standards, setting maximum prices for electricity, gas, hot water and centralised air‑conditioning supplied through embedded networks, and monitoring compliance with these obligations. 

IPART consulted on a billing standard and components of a draft methodology for setting maximum prices 

In June 2026 we released a consultation paper requesting stakeholder comment on a draft billing standard and aspects of the methodology to set maximum prices for residential embedded network customers. 

We received 52 submissions to this paper. The non-confidential submissions have been published. We would like to thank stakeholders for their detailed engagement, which will help inform our final implementation. 

The approach set out in our draft recommendations sits within a broader regulatory landscape for embedded networks. We are continuing to consider how maximum price methodologies and billing arrangements interact with other legislative, regulatory and consumer protection frameworks as we develop our final recommendations.

Stakeholders have highlighted the importance of providing certainty about future obligations and ensuring any new requirements can be implemented efficiently. We recognise that embedded network operators and other stakeholders require sufficient time to prepare for and implement any new arrangements. We will provide further updates to stakeholders as they become available.

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 
• if they provide centralised air-conditioning and bill customers for their consumption, they must  publish on their website information about the system’s energy efficiency. 

IPART is monitoring and enforcing compliance with these requirements from 1 July 2026. 

You can read more about the new requirements for embedded network sellers here. 

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

The NSW Government has already introduced maximum prices for 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. 

Further information on IPART’s determination of maximum prices for residential land lease communities and our role in setting these prices is available here. 

NSW Fair Trading also provides information on commonly asked questions about electricity in residential 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 change energy retailer or supplier if they are not satisfied with prices or service levels.