Maximum electricity prices in land lease communities for customers in an embedded network 

In residential land lease communities, a community operator will own the land that a resident’s home sits on. Many land lease communities are supplied their electricity through an embedded network, which means that the operator also owns the network infrastructure like the wires within the community. In these cases, most customers will be unable to choose their electricity supplier and so there are rules about how much their operator can charge them for their electricity. 

On 24 June 2024, legislative amendments were passed which have changed the rules for how much customers in residential land lease communities can be charged for their electricity. 

Under the new laws, community operators must charge less than or equal to the rates for the median market offer in your area. The new laws require IPART to determine what the median market offer is and advise the Commissioner of Fair Trading. 

IPART’s current determination of maximum prices are in the table below. These prices apply from 25 September 2025 until our next determination. Under legislation, our next determination must commence no later than 25 September 2026.

IPART determination of maximum electricity prices for land lease communities

Status Date issued Date applicable Determination
Current August 2025 25 September 2025 Determination of maximum electricity prices for residential land lease communities August 2025 
Superseded July 2024 25 September 2024 Determination of maximum electricity prices for residential land lease communities July 2025 

For information on how we determine the median market offer, please see our methodology paper.

These arrangements are likely to be an interim measure while the NSW Government finalises its Embedded network action plan. 

If you have any concerns relating to the way that prices are set under the Residential (Land Lease) Communities Act (NSW), please contact NSW Fair Trading on 13 32 20 or make an enquiry on their website.

IPART has conducted a broader review of how prices for all embedded network customers should be set

As part of the NSW Government’s Embedded network action plan, IPART made recommendations on how maximum prices should be set for all customers living in embedded networks. This includes people living in land lease communities, and also other customers such as those living in a new development. 

We recommended that IPART would determine maximum prices based on the median of the lowest market offer from each retailer in that area. This is a different methodology to that set out in the new laws relating to residential land lease communities.

The NSW Government is currently considering IPART’s recommendations. If our recommendations are implemented, we expect this would result in maximum prices that are on average 9-12% lower than the maximum price under the new laws for residential land lease communities.

 

How do I know if I am living in a land lease community where these maximum prices apply?

If you are not sure whether you are living in a residential land lease community, you can search your address on the NSW Fair Trading Register of Communities (Residential Land Lease).

The Energy and Water Ombudsman NSW (EWON) also provides information to help you understand whether you are living in an embedded network.

For more information, please see the NSW Fair Trading commonly asked questions about residential community electricity.

For general information, please see the NSW Fair Trading page about residential land lease communities.

Am I entitled to a discount if my site is supplied with less than 60 amps?

Yes. If your site is supplied with: 

  • between 30 amps and 60 amps - you will receive a 30% discount to your daily supply charge.
  • less than 30 amps - you will receive a 60% discount to your daily supply charge. 

Discounts are not applied to your consumption charge.

Who can I call if I have an issue with my operator or billing?

Always talk to the operator of your land lease community first. 

If you consider that your community operator is charging a higher amount than the maximum supply charge or the maximum usage charge, please contact NSW Fair Trading on 13 32 20 or make a complaint on their website.

For other issues, you can contact the Energy & Water Ombudsman NSW (EWON), which is the government approved dispute resolution scheme for New South Wales electricity and gas customers. You can complain to EWON if: 

  • you think your electricity usage charges have not been correctly calculated or you believe they are based on incorrect usage
  • you think the discount to your daily supply charge based on the amps supplied to your home is incorrect
  • you have concerns about your ability to pay your invoice or you believe you might be at risk of disconnection.

For more information about EWON, please visit their website.

Why has the NSW Government changed the rules?

In 2021, the NSW Department of Customer Service recommended changes to how maximum prices are set. The NSW Government accepted these changes, and the NSW Parliament enacted the changes. 

For information on reasons for the changes, please see the Department of Customer Service Residential (Land Lease) Communities Act 2013 Statutory Review. 

The second reading speech also provides the NSW Government reasons for the amendments.

What were the previous rules for maximum charges?

The previous maximum electricity prices in residential land lease communities depended on who was sending you your bills:

  • If your operator is billing you directly for your electricity, then they could not  charge you more than the operator has been charged by the electricity retailer for the supply or use of the electricity consumed at your site. For more information, please see the NSW Fair Trading commonly asked questions about residential community electricity.
  • If the operator is outsourcing the billing to a third-party retailer, then there were no limits to how much residents can be charged.

For more information, please see the NSW Fair Trading commonly asked questions about residential community electricity.