What are embedded networks?
Embedded networks are private energy networks for services such as electricity, gas, hot water and air-conditioning. They are commonly found in newer residential apartments and strata schemes, retirement villages, and shopping centres.
The operators of embedded networks pay to receive energy from the grid and then on-sell the energy to customers in the embedded network. Due to this set up, it can be challenging for customers in an embedded network to change energy provider if they are unhappy with the price or service they receive.
There are price protections in place for some electricity customers supplied through an embedded network, including for those who live in residential land lease communities. However, for many customers there are currently no price caps in place.
IPART made recommendations to the NSW Government about how maximum prices should be set
Through its Embedded Network Action Plan, the NSW Government has been working to bring consumer and price protections for embedded network customers in line with those received by typical ‘on-market’ customers supplied outside of an embedded network.
As part of this plan, the NSW Government asked IPART to make recommendations on how maximum prices should be set for electricity, gas, and hot and chilled water supplied to small customers through embedded networks. Our Final Report was delivered to the NSW Government in 2024.
In October 2025, the NSW Government published its response to our recommendations after further consulting with stakeholders. In its response, the NSW Government stated that it will enact legislation to introduce maximum prices for electricity, gas, hot water and air conditioning embedded networks in NSW, and authorise IPART to determine the maximum prices.
IPART does not yet have a role determining maximum prices
In November 2025, the Energy Legislation Amendment Bill 2025 (NSW) was passed. This will provide IPART with powers to investigate, monitor and enforce compliance with maximum prices in embedded networks, once IPART has determined maximum prices.
IPART’s power to determine maximum prices will be implemented through regulations. Regulations have not been passed providing IPART with a price determination function.
IPART will continue to update our website with the latest available information.
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