If you live in an apartment block, or another type of residential complex, you might find you’re part of an embedded electricity network.
In this Canstar Blue guide, we run through what an embedded electricity network is, how it works and what your options are if you’re placed into one.
On this page:
- What is an embedded electricity network?
- How do embedded electricity networks work?
- Do embedded electricity networks come with a lock-in contract?
- Are embedded electricity networks cheaper?
- Are embedded electricity networks a good idea?
- Embedded electricity network pros and cons
- What should you do if you are placed in an embedded network?
- What happens if my energy supplier goes out of business?
- Can I access energy rebates in an embedded network?
- Frequently asked questions about embedded electricity networks
What is an embedded electricity network?
An embedded electricity network is effectively a contract between the building owners and an energy retailer for the latter to supply power to all of the properties in that development. This allows the building owner to buy electricity in bulk from a retailer, then sell it to residents or tenants.
An embedded network can be established wherever electricity infrastructure is privately owned and managed, such as commercial or industrial properties, or shopping centres.
Embedded networks are also common in high-rise or large residential developments. If you live in an apartment building, caravan park or a retirement village, you may be part of an embedded network.
How do embedded electricity networks work?
Embedded electricity networks supply energy to a site to a single metered point, often called the ‘parent meter’ or ‘master meter’. This meter is connected to the National Electricity Market (NEM).
Energy is then delivered to each separate resident or tenant and usage is measured through individual sub-meters, with each sub-meter then billed separately.
The big selling point for embedded network customers is the ability for a group of residents to combine their purchasing power and buy energy in bulk, potentially accessing discounted rates that aren’t available to customers buying individually.
There are obviously benefits to embedded electricity networks, though it’s another question about whether those benefits are passed down to you. While there seems to be a lot of incentives for an embedded network for suppliers and building developers, the most important person at the end of the day is you – the consumer.
Do embedded electricity networks come with a lock-in contract?
Bill-payers who are part of an embedded electricity network are not necessarily required to stay ‘locked in’ to that supplier. Thanks to Power of Choice legislation introduced in 2018, embedded networks that appear in the wholesale market systems, or MSATS, are required to nominate an Embedded Network Operator (ENO) to help customers switch out of the network.
While it may be a longer process than if customers were to switch plans themselves outside of an embedded network, it does create some peace of mind for bill-payers that are looking for more choice when it comes to their energy provider.
For example, customers on an Origin embedded network aren’t locked in to their contract. This means that the customer can end the contract at any time, so long as they provide at least six months’ warning.
Although embedded network customers have the right to switch to a different energy retailer, it may be difficult to find one that is able to service your home. You’ll also need to shop around yourself and inform the building operator who is in charge of your home’s embedded network that you’re planning to change retailers. Once you have made the switch, you’ll still need to pay network charges to the embedded network supplier, while your usage is billed separately and paid to your nominated energy retailer.
Are embedded electricity networks cheaper?
Many embedded network providers will claim to offer very competitive prices, and while many do deliver on this promise, some customers will want to shop around for the best deals themselves. However, it’s important to remember that energy prices are just one part of the equation.
Compare energy deals
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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11% Less than reference price |
$1,614 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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10% Less than VDO |
$1,304 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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4% Less than reference price |
$1,990 Price/year (estimated) |
Go to Site |
Are embedded electricity networks a good idea?
For building developers, embedded networks can be a convenient solution to supplying power to all of the properties within one site, especially as there’s the opportunity to make money from selling to residents. For residents, it can be attractive having an energy option already available to them about when they move homes.
Embedded electricity networks can sometimes be cheaper, although this isn’t guaranteed; ultimately, residents may need to cross-reference their charges and usage rates with other energy offers in their area to see if they’re getting a good deal.
Many energy providers also offer to purchase green energy solutions on the customer’s behalf. This could be through adding GreenPower to plans, or by opting for carbon neutral programs and solar. However, these may come at an additional cost to customers.
Embedded electricity network pros and cons
| Pros | Cons |
|---|---|
| Convenient, takes the fuss out of choosing a provider. | Switching providers, while not impossible, may be a lengthier process than normal. |
| Increased purchasing power means that you may be able to save money. | There may be little incentive for a provider to be competitive. |
| The embedded provider may have a suite of green initiatives. | Providers may have no green options. |
| Your embedded contract may work in your favour. | The contract could be hard to get out of. |
What should you do if you are placed in an embedded network?
It depends on your personal circumstance as to whether or not an embedded network will suit you and your energy usage. Some customers may prefer the convenience of not having to choose their own energy retailer, especially if the rates offered to customers are competitive or discounted. For others who wish for a little more freedom of choice, it may be worth checking what your options are in regards to switching out of your embedded electricity network before moving into a residential development.
The laws are constantly evolving to ensure fair choice when it comes to electricity supply in Australia; as such, consumers are being given the upper hand when it comes to picking an energy plan that’s right for them. Be sure to stay up to date with your rights as an energy customer by checking your state or territory government’s website.
What happens if my supplier goes out of business?
If the worst case scenario happens and your energy provider decides to close shop, you will need to switch to another energy supplier. To make the switch easy, the Australian Energy Regulator (AER) recommends finding an energy retailer that can take control of the embedded energy network; however, this will generally be up to the building or site operator managing your network.
Your building operator may decide to buy energy from a new retailer and continue to offer embedded network services, or arrange to have all residences connected back to the main electricity network. If it’s the latter, you’ll then be able to choose your own electricity retailer and plan.
Can I access energy rebates in an embedded network?
Using an embedded network shouldn’t prevent you from accessing any energy rebates or bill relief payments, if your home is eligible. However, you may need to apply for any bill relief payments that regular retail energy customers receive automatically.
If you’re unsure, you can visit the Energy.gov.au’s rebate finder or your state or territory government’s energy website for more details, or contact your embedded network manager.
Frequently asked questions about embedded electricity networks
Is Origin an embedded electricity network?
In addition to individual retail and business energy plans, Origin also offers electricity and hot water services in embedded networks. You can check if this is an option at your address on Origin’s website.
Is AGL an embedded electricity network?
AGL offers residential and business energy plans, however it does not currently provide embedded electricity services.
Is EnergyAustralia an embedded network?
EnergyAustralia sells individual retail and business energy, and can help establish and provide embedded electricity services through The Embedded Network Company. Contact EnergyAustralia for more information.
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