Reforms to improve energy for 95,000 households in NSW welcomed by energy advocates

• The NSW Government has today announced reforms to embedded networks, making immediate changes and committing to substantial medium-term reforms.
• Embedded networks are private electricity networks, where the owner of a site buys bulk electricity and sells it to the occupants. They are often found in apartment buildings, retirement villages and strata schemes.
• More than 95,000 households are estimated to be in embedded networks in NSW.
• Currently, people in embedded networks often pay more for energy, have less choice about energy supply, have less robust protections and less opportunity to choose the energy provider and deals they want than people with direct access to the energy market.
• The NSW Government has said they will immediately introduce a maximum energy price for people in embedded networks, recommended by the Independent Pricing and Regulatory Tribunal (IPART).
• The medium-term reforms announced aim to ensure people will:
  • pay similar prices to households elsewhere;
  • have equivalent access to important protections and supports;
  • have equivalent access to independent dispute resolution when they experience problems;
  • have important and timely information about embedded networks before they move into one; and
  • have hot and chilled water services billed more fairly and transparently.
• The Justice and Equity Centre has long called for reforms to embedded networks in NSW.

Comments attributable to Douglas McCloskey, Program Director of Energy and Water Justice, Justice and Equity Centre

‘We welcome today’s announcement of reforms which mean people in embedded networks in NSW will start to be protected from unreasonably high energy costs.’

‘We also support the commitment to important medium-term reforms which, if implemented correctly, will help ensure people in embedded networks in NSW can have similar energy services, pricing and protections as other households in the state.’

‘Despite these changes, there are still fundamental issues with embedded networks and few demonstrated benefits for residents. In the long term, we support the NSW Government phasing out or heavily restricting embedded networks. But these reforms are a big step forward. They respond to the poor experiences of too many households in NSW, and years of advocacy by the Justice and Equity Centre and others.’

‘We congratulate the NSW Government on committing to these reforms and look forward to working with them on the introduction of further longer-term reforms to embedded networks.’

Media contact:
Communications Coordinator, Seamus May: 0478 739 280