More choices for embedded network customers

17 December 2015

The AEMC today released its final determination to facilitate customers in embedded networks such as apartment blocks, shopping centres, retirement villages and caravan parks choosing their own electricity retailer.

Embedded networks are private electricity networks serving multiple premises. Many operators of embedded networks also sell electricity to their embedded network customers.

The final determination released today reduces barriers to embedded network customers buying electricity from retailers in the competitive retail market if they wish to do so. This will provide embedded network customers with the ability to choose the electricity products and services that suit them best.

This rule change is part of the AEMC’s market-wide energy reform program called Power of Choice which is putting in place new arrangements which enable people to have more choices in the way they use electricity and manage their bills.

The likely benefits from allowing embedded network customers access to the competitive retail market relate to price, variety of products, and easier access to government schemes and consumer protections.

The rule change does not prevent embedded network operators from continuing to sell embedded network customers electricity. Instead, it provides them with greater incentives to compete with retailers.

The new rules will commence on 1 December 2017 and take effect in Victoria, NSW and South Australia. Their application in Queensland, Tasmania and the ACT is dependent upon those governments making relevant legal changes to recognise the metering and other arrangements regarding embedded networks.