Embedded electricity networks

Fact Checked

What is an embedded electricity network?

An embedded electricity network is a private contract between a site operator and an energy retailer to supply power to buildings or homes in a specified area. This allows the operator to purchase electricity in bulk and resell it to residents or tenants.

Unlike authorised energy retailers, site operators hold valid exemptions from the Australian Energy Regulator (AER) to resell energy— they are known as “exempt sellers”.

Embedded electricity networks are commonly found in multi-residential areas, not limited to:

• Apartment complexes
• Caravan parks
• Retirement villages
• Shopping centres.

How do embedded electricity networks work?

Embedded electricity networks supply energy to a site to a single metered point, often called the ‘parent meter’ or ‘master meter’. This meter is connected to the National Electricity Market (NEM).

Electricity is then distributed and billed to residents or tenants through their private sub-meters for their energy use. The network supply charges, or the cost to deliver energy to the entire area, are split evenly.

Are embedded electricity networks cheaper?

Embedded electricity networks could be cheaper than energy plans in the market, but that depends on your situation.

One common selling point is that customers in an embedded electricity network can leverage their combined purchasing power, possibly accessing discounted electricity rates that individual customers can’t.

However, embedded network retailers are not obligated to offer competitive prices, which means you might be paying more than you would for other plans in the market.

Can I switch to an energy retailer from an embedded electricity network?

You can choose to buy electricity from a retailer other than your embedded network operator, who is prohibited from stopping you.

Switching to an energy retailer outside of an embedded network typically follows these steps:

1. Find a retailer willing to exclusively supply your home with energy within the embedded network.
2. Once an energy retailer outside the embedded network agrees to sell electricity to you, immediately inform your network operator of your decision.
3. Your network operator is legally required to hire an embedded network manager (ENM), whose job is to assist you in accessing the wider energy market.
4. The ENM will assign a Network Meter Identifier (NMI) to your meter, helping customers go ‘on market’.
5. Your preferred retailer will charge you for every kilowatt hour (kWh) of energy you use, while your network operator will bill you for the supply charges (the daily fixed cost to supply energy to your home).
6. Make sure that your preferred provider puts you on an ‘electricity-only’ plan to avoid paying for supply charges twice with your provider-of-choice and network operator.

Keep in mind that switching takes longer than if it were conducted outside an embedded network.

Moreover, switching may not be possible due to these barriers:

• Your sub-meter may need replacing to be eligible for a regular energy plan. If you’re renting, you’ll have to seek permission from your landlord, who can deny that request.
• Energy retailers can choose not to sell you electricity.

Compare energy deals

• NSW
• VIC
• QLD
• SA

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

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Based on the general usage^ in the Ausgrid network the AER reference price is: $1,810 / year

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*^View important information

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

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View all electricity plans listed on Canstar Blue

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What are your rights in an embedded electricity network?

Your rights go beyond the right to choose an energy plan. These rights are outlined by the AER and aren’t limited to:

• Receiving bills every three months that clearly list all tariffs, fees, and charges.
• Charges and fees cannot exceed your network supplier’s standing offer.
• Be notified of price changes when immediately applicable.
• Be informed about government rebates, concessions or relief schemes at the start of your residency or tenancy.
• Having at least 13 business days to pay each bill.
• Access to the Energy Ombudsman to assist in resolving disputes with your network operator (who must be a member of the ombudsman scheme in your state or territory)
• A hardship policy for payment difficulties, outlining options such as payment plans.
• Protection from disconnection in the following circumstances:
  • Payment difficulty (if you have informed the exempt seller and have not yet agreed to a payment plan, or you are already committed to one).
  • Specified times of the day or days in the year.
  • If you are on life support equipment.
  • Matters unrelated to energy bills (e.g. rent arrears).

Are embedded electricity networks worth it?

Whether being in an embedded electricity network is worth it or not depends on your preferences. Here is a quick summary of its pros and cons: 

Price, convenience, and sustainability are three common factors that would significantly influence whether you choose to stay or exit an embedded electricity network. 

Some Aussies might prefer to avoid the hassle of finding their own energy providers, especially if the discounted rates or green energy initiatives in the network are enticing enough to stay. 

On the contrary, others may prefer the freedom to shop around for an energy plan that best meets their needs. 

If you’re interested in making the switch, the comparison table below showcases some of Canstar Blue’s cheapest energy plans on the market.

Compare energy plans

For a range of quotes specific to your area, it’s best to use our free comparison tool, which gives you the option to filter plans based on features such as conditional discounts and contract length. 

FAQs about embedded electricity networks