NSW Climate and Energy Action

NSW Embedded Network Action Plan

Embedded network hero
 

We are making changes, so embedded network customers get a fair energy deal. These changes mean embedded network customers will:

  • pay prices similar to traditional (on-market) energy customers
  • have similar consumer protections as on-market energy customers. 

You can read more about these changes in the Embedded Network Action Plan.

Understanding embedded networks

Embedded networks are private energy networks, where one main connection to the National Energy Market (NEM) supplies multiple premises within the site. They can provide customers with electricity, gas, hot water, or centralised air conditioning. 

They are common in:

  • apartment buildings
  • strata schemes
  • caravan parks
  • retirement villages
  • shopping centres. 

They offer benefits like lower bills and shared solar energy costs. However, customers in embedded networks often face challenges, like less choice of energy retailers. 

Embedded Network Action Plan 

Our plan will improve consumer and price protections for embedded network customers by:

  • introducing a maximum price for energy sold to electricity, gas, hot water and air conditioning embedded network customers, so consumers don’t pay too much
  • developing legislation to implement these protections. 

We also have an updated Ministerial Statement of Expectations which outlines our expectations for embedded network operators. This includes:

  • ensuring hot water and centralised air conditioning embedded network customers have the same protections as those in on-market arrangements
  • requiring all electricity providers in embedded networks to follow Default Market Offer price limits.

The NSW Government has responded to The Independent Pricing & Regulatory Tribunal's (IPART) final report on the Future of Embedded Networks in NSW. The response is published on IPART's website.

Contact us 

If you have questions about the action plan, please contact the Energy Consumer and Policy team at [email protected].