Maximum prices for embedded networks in NSW

IPART’s new functions and new requirements for embedded network sellers

In March 2026, the NSW Government made regulations that give IPART new functions for embedded networks and create new requirements for embedded network sellers.

IPART’s new functions include:

• recommending a methodology to the Minister for Energy (the Minister) for setting maximum prices for electricity, gas, hot water and centralised air-conditioning supplied through an embedded network. Then, if approved, determining the maximum prices
• recommending a billing standard to the Minister and, if approved, publishing the standard
• monitoring compliance and taking enforcement action where needed.

Embedded network sellers are required to:

• comply with maximum prices and the billing standard (once IPART has published them)
• become a member of the Energy and Water Ombudsman of NSW, if they are not already
• publish information on their website about the embedded network services they supply (including prices and addresses)
• if they provide centralised air-conditioning, publish information on their website about the system’s energy efficiency.

When these changes will start

IPART’s new embedded network functions and the requirements for embedded network sellers commence on 1 July 2026. 

However, the new maximum prices and billing standards will not be in effect by 1 July. 

We are aware that these requirements may require embedded network sellers to update prices and notify customers, and update their billing systems. IPART will ensure that sellers are given reasonable notice prior to any new pricing obligations and billing standards taking effect. 

As we work on implementing these new functions, we will publish updates on our website, including:

• any consultation that may be required with stakeholders
• when the new maximum prices will start.

What are embedded networks?

Embedded networks are private energy networks that supply services such as electricity, gas, hot water and air-conditioning within a site or building. 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 currently price protections in place for some electricity customers supplied through an embedded network, including for those who live in residential land lease communities. The new laws will ensure that there are price protections in place for all small energy users supplied through an embedded network.