Maximum electricity prices in land lease communities for customers in embedded networks

In residential land lease communities, a community operator owns the land that a resident’s home sits on. Many land lease communities are supplied with electricity through an embedded network. This means that the operator also owns the network infrastructure, such as the poles and wires, in the community. 

In these cases, customers are generally not able to choose their electricity supplier or change supplier if they are unhappy with the price or service. As a result, there are rules about how much their land lease operator can charge residents for their electricity. 

These rules changed in 2024 when new laws were passed. Under these laws, community operators must charge less than or equal to the rates for the median market offer in the relevant distribution network area. These laws require IPART to determine the median market offer. 

IPART's determinations of maximum electricity prices for residential land lease communities are set out in the table below.

IPART determination of maximum electricity prices for land lease communities

Status Date applicable Determination
Applies from 25 September 2026 25 September 2026 Determination of maximum electricity prices for residential land lease communities August 2026
Current 25 September 2025 Determination of maximum electricity prices for residential land lease communities August 2025 
Superseded 25 September 2024 Determination of maximum electricity prices for residential land lease communities July 2025 

How IPART calculates the median market offer

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

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 review of how maximum prices should be set for all embedded network customers

In 2023-24, IPART conducted a Review into the Future of Embedded Networks. As one part of this review, we recommended how maximum prices should be set for electricity, gas, hot water and centralised air-conditioning supplied through embedded networks in NSW. This covers people living in land lease communities, as well as those living in apartments and retirement villages supplied with these services through an embedded network.

We recommended that the maximum price for electricity should be based on the median of the lowest market offer from each retailer in a distribution network area. This differs from the methodology set out in the Residential Land Lease Communities Act, which sets the maximum price at the median market offer. 

The NSW Government released its response the recommendations in IPART’s review in October 2025 and supported IPART’s approach to setting the maximum prices. Reforms were passed in March 2026 to facilitate IPART setting maximum prices.

IPART consulted on the implementation of new billing standards and the maximum prices in July 2026. We anticipate these maximum prices will come into effect in 2027.

If our recommendations are implemented, we expect this would result in maximum electricity prices for embedded networks that are on average 5 to 9% lower than the maximum price under the laws for residential land lease communities.

You can find more information the reforms to embedded networks here: Embedded network services in NSW.

 

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.