What is an embedded electricity network?

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What is an embedded electricity network?

How do I know if I’m living in an embedded network?

Is electricity more expensive in an embedded network?

Can I switch electricity retailers if I live in an embedded network?

Can I opt out of an embedded network?

Am I still eligible for concessions and rebates if I live in an embedded network?

Make the right energy move for your home

Long story short

Embedded networks supply energy within one site

They’re often found in apartments, retirement villages, and caravan parks.

Living in an embedded network? You should be told up-front

Apartment complexes and similar sites must disclose this, along with your rights and contract details.

Switching providers is possible, but complex

Technically, you can choose your own provider, but finding one that offers the right plan is hard, and you’ll still likely be wired into the embedded network.

What is an embedded electricity network?

An embedded network is a private electricity network that operates in a single site or building. The most common place you might find an embedded network in Australia is an apartment building. In these settings, the body corporate, owners corporation, or property owner (known as an exempt seller) acts like your energy distributor, buying electricity or gas in bulk from a retailer, then on-selling it to their tenants. This means that you’ll get your energy bill from your embedded network operator. While the building will have one parent meter for its gas and electricity supply, each resident will have their own sub-meter that measures their energy usage in their home.

While embedded networks are common across apartment blocks, retirement villages, caravan parks, and shopping centres, they’re not the only possibility. Some buildings can be connected to the grid through an older energy service method, which is why it’s important to check before moving in.

How do I know if I’m living in an embedded network?

If you’re living in an apartment complex, retirement village, or caravan, there’s a good chance that you’re an embedded network customer.

If you’re looking to rent or buy an apartment or townhouse, the body corporate or the building owner must tell you up-front if they run things on an embedded network, along with your rights and contract agreement details. Your energy seller should also let you know your rights and their obligations.

Is electricity more expensive in an embedded network?

The price of energy in an embedded network can vary. Some embedded network customers might have higher electricity pricing than those serviced by individual providers, while others can have lower costs. Either way, your embedded network can’t just make up its own costs as it sees fit. In Victoria, for example, the VDO (Victorian default Offer) is the maximum price for all tenants in an embedded network.

The way that embedded networks work – bulk buying energy and then onselling it to their customers – can also mean that electricity bills can slide to the cheaper side. It’s like when you buy washing detergent in bulk: the price for each use works out cheaper than buying smaller packs more often.

Gas can also work out in your wallet’s favour in an embedded network. With shared hot water systems and unmetered gas cooktops and heating (if you have natural gas), running costs can be split up, and tenants might only be charged a flat rate, no matter how much gas they use. This can help keep costs predictable.

Can I switch electricity retailers if I live in an embedded network?

Sometimes, but it really depends where your embedded retailer is and how your building works. For example, if you’re in a NSW embedded network, you have the right to choose your own energy provider, but you’ll have to make sure a suitable plan for an embedded network is available. The hard part is finding one.

Choosing your own energy retailer within an embedded network can be a complicated and costly process. If you want to buy your energy directly from an authorised retailer of your choosing instead of through your embedded network, you’ll need to find a provider that offers something called an ‘energy-only plan’. This means that your provider will only charge you for your energy, not any network costs for managing your energy.

But actually finding an energy-only plan is a bit like finding a needle in a haystack; not a lot of retailers offer them, or they might just flat out refuse to offer one to you. If you can find one, you’ll need to contact your embedded network operator and have them appoint a manager for your account. The manager will give you a metering identifier number and make sure your new retailer can sell you energy.

At the end of the day, you’ll technically still be a part of the embedded network, but you’ll have your own provider from the rest of the building’s residents. This will mean that when it comes time to get your bill, you’ll be getting one from your energy provider and another from your embedded network operator (lucky you!). While it sounds bad, it’s just your regular energy costs split in two. Your energy provider will charge you for the energy you use, and your embedded network operator will charge you a fee to maintain the energy network.

Helpful tip

If you don’t want to stay with the energy provider chosen by your building owner, double-check that you’re on an energy-only plan so you don’t have to pay the network charges twice. Any network fees should be only charged once, by your building owner, since they pay them on behalf of the entire building.

Julia Paszka

General Manager – Utilities

Can I opt out of an embedded network?

Technically, you can’t fully back out. Even if you go through the entire process of choosing your own electricity provider, you’ll still technically be a part of your building’s embedded network, even though you’ll have control of your own bills. Physically disconnecting from an embedded network means wiring your home to the main grid, bypassing the embedded network system. While it’s not impossible, it could be expensive and take a long time.

Am I still eligible for concessions and rebates if I live in an embedded network?

If you’re a part of an embedded network, you should still be eligible for concessions and rebates, like life support and pension card concessions. You’ll just need to look closer at the eligibility requirements to make sure you tick off all the boxes, since some rebates might need to be applied through your embedded network rather than individually. For example, embedded networks in Victoria had their Energy Bill Relief Fund automatically applied in a one-off payment once their exempt seller had applied for it, which is a little different to how other homes received their rebate.

Make the right energy move for your home

Whether you’re already living in an embedded network or scoping out a new place that does, understanding how your home is powered is the secret to a smooth-running household. While iSelect isn’t able to help out with embedded network energy comparisons, we can help with other homes. If you haven’t made the move to an embedded network just yet, or you’re just doing your homework when looking for a new place to live, use our online tool to compare from a range of providers and plans or call our energy comparison team at 1800 664 532 for more help.