Embedded electricity networks

Embedded networks are private electricity networks that serve multiple premises, such as in apartment blocks, caravan parks and shopping centres.

The owner of the site with an embedded network runs the network infrastructure. In most cases, owners also buy energy from an energy retailer and on-sell it to the occupants of the site.

This page explains the rules governing the operation of these networks, including recent changes that allow customers to access electricity retailers directly if they choose to do so.

Licensing requirements

If you own, operate or control a private embedded network, you need the necessary permissions to supply and sell electricity to occupants.

Network exemptions

Embedded network operators must obtain an exemption from the requirement to register as a network service provider with the Australian Energy Market Operator (AEMO).

Find out how to apply for a network exemption.

Retail exemptions

If you also sell electricity within your network, you must apply to the Australian Energy Regulator (AER) for an exemption from the requirement to hold a retailer authorisation, unless in a deemed class.

The AER exempt selling (retail) guideline details the types of exemptions available and how to apply for a retail exemption.

Customer access to energy retailers

Users of your embedded network can choose to buy electricity from you or from an authorised retailer.

These new customer access rules started on 1 December 2017. Owners or operators of embedded networks must now comply with the requirements explained below.

Appointing or becoming an embedded network manager

Only some embedded network operators were required to appoint an embedded network manager (ENM) by 31 March 2018.

Others are permitted to delay the appointment of an ENM until a resident or tenant enters a contract with an energy retailer and the 10-day cooling off period has lapsed.

Use the interactive tool on the AER website to work out your ENM requirements.

The role of the ENM is to help customers in your embedded network access energy offers from electricity retailers. They will, for example, allocate National Metering Identifiers to customers and help in the settlement of bills.

For information on the accreditation process and for a list of accredited ENMs, visit the Australian Energy Market Operator (AEMO) and see Accredited Embedded Network Managers National Electricity Market (PDF, 156KB).

Metering requirements

All meters installed after 1 January 2012 should be National Electricity Market (NEM) compliant.

Customers wanting to buy electricity from a retailer need an NEM-compliant meter.

If the meter is compliant, the retailer or the customer can either:

  • purchase or lease the meter from you
  • replace the meter with a meter of their choice.

If the meter isn't compliant, it will need to be replaced. If the non-compliant meter was installed on or after 1 January 2012, you will have to pay for a replacement. The retailer or customer will have to pay if it was installed before 1 January 2012.

Network charges

You are allowed to recover your network costs from your occupants (i.e. costs charged to you by your retailer for supplying electricity from the grid to the site), even if they have chosen to purchase their energy from another supplier. The AERs network service provider registration exemption guideline explains the requirements for network service charges.

Calculating electricity charges for customers

What you can charge customers for their electricity is regulated by various state laws.

The Manufactured Homes (Residential Parks) Act 2003 applies to owners/managers of residential parks who supply electricity to manufactured homeowners.

The Residential Tenancies and Rooming Accommodation Act 2008 applies to general tenancies as well as tenancy agreements for caravans, caravan sites, houseboats and rented manufactured homes.

The Body Corporate and Community Management Regulation 2008 applies to body corporates who on-supply electricity to home owners.

Cost of living and small business rebates

To help with cost of living challenges, we are providing:

  • a one-off $1,000 Cost of Living Rebate to all eligible residential customers, including those in privately owned embedded networks
  • a one-off $325 small business rebate to all eligible small businesses, including those in privately owned embedded networks.

Energy providers will apply the rebates to eligible accounts from 1 July 2024.

Eligibility

Access the eligibility requirements for:

How to apply for and distribute a rebate

As an embedded network operator, you should notify your retailer of how many eligible residential or small business customers you had in your network on 1 July 2024 as soon as possible after that date, using the relevant form for 2024–25.

When processed, your retailer will apply a bulk credit to your account which will be reflected on the next electricity bill they issue to you.

You or your billing agent should apply the rebate as a lump-sum credit to all eligible customers in your network and communicate this on the next bill/invoice you issue after receiving the bulk credit from your retailer. You may choose to use your discretion to pay rebates to eligible accounts earlier if you wish.

Corrections and reconciliation

In some cases, after you submit a claim to your retailer, you may need to make a correction. If this occurs, you should notify your retailer and submit a reconciliation claim using the same form.

Once processed, any required correction will be reflected on your next bill.

Also consider....

  • Last reviewed: 27 Jun 2024
  • Last updated: 28 Jun 2024