Embedded network services in NSW

From 1 July 2026,  NSW Government regulations will strengthen protections for customers who receive electricity, gas, hot water or centralised air-conditioning through an embedded network.

These reforms aim to make sure embedded network customers pay similar prices and have equivalent protections to on-market energy customers that are not in an embedded network.

Embedded network sellers will also be required to publish information about the embedded network services they provide on their website

What is an embedded network

An embedded network is a private energy network that supplies services such as electricity, gas, hot water or centralised air‑conditioning to multiple customers at a site.

The operator of an embedded network pays to receive energy from the grid, and then on-sells that energy to customers at the site.

Embedded networks are common in newer apartment buildings, strata schemes, retirement villages, shopping centres and caravan parks.

What changes for embedded network sellers

From 1 July 2026, embedded network sellers must: 

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

IPART will monitor and enforce compliance with these requirements from 1 July 2026.

We recognise the regulations create new obligations for embedded network sellers. Our initial focus will be on engaging with industry to assist embedded network sellers in meeting these new requirements and providing information and guidance.

Maximum prices and billing standard requirements will not start on 1 July 2026 

Under the regulation, IPART will recommend to the Minister for Energy (Minister): 

• a methodology to set maximum prices for electricity, gas, hot water and centralised air-conditioning in embedded networks
• a billing standard for how embedded network sellers must bill their customers.

If the Minister approves these, IPART can then determine the maximum prices and publish the billing standard. 

IPART will specify the date the maximum prices and billing standard come into effect.

Consultation to start soon

IPART will start consultation by early July 2026 on: 

• a draft billing standard
• 2 components of the methodology to determine maximum prices
• an implementation timeline for when the maximum prices and billing standard will come into effect.

We will update this web page with further information once consultation starts.

Get updates

We will update this web page as more information becomes available. This will include: 

• the consultation process and how to make a submission
• methodology to determine maximum prices and the billing standard, once they have been approved by the Minister
• when the maximum price and billing standard requirements will start.

Contact us

If you have any questions about IPART’s role, please contact us at electricity@ipart.nsw.gov.au.