The Victorian Government has banned private electricity networks (also known as embedded networks) from being implemented in newly constructed apartment buildings and similar dwellings. The ban took effect on the 1st of January this year.
For many apartment dwellers, embedded power networks have long been a source of frustration, stripping them of their choice of energy provider. Being reliant on only one energy retailer has made them more susceptible to higher electricity prices. And it’s not just apartment owners and renters that have been affected. Embedded networks are also found in retirement homes, social housing and caravan parks.
More change on the way for existing embedded network customers
Consumer advocacy groups welcome the ban, predicting it will better protect the most vulnerable and potentially energy stressed people in our community. Although these new regulations only apply for new builds, Victoria’s Essential Services Commission has foreshadowed a second phase of reforms. The new reforms will apply to existing embedded networks. Back in 2020, the government price-capped rates for existing embedded networks at the Victorian Default Offer level. This meant the maximum price those operators can charge is in line with all other customers able to access market offers. The next phase of changes will see existing embedded network customers having access to the same protections and choice of retailer as other Victorian customers.
If your building has an embedded network system that runs off 100% renewable energy then you’ll be treated as an exception. This is because there are clear benefits to residents in this situation. It’s good to see opportunities for energy efficiencies using solar, community batteries and potentially even Virtual Private Networks won’t be stymied by this regulatory step forward!
What can you do if you live in an apartment currently?
So what are your options if you are an apartment dweller or live in community housing, etc? Firstly, check whether you are on an embedded network. If you’re not sure, contact the company billing you for your energy and ask them directly. You can also ask the manager of your residential complex, retirement village or residential park.
If you’re not on an embedded network, then it’s good news. It means you are able to check your current plan against all other market offers. By doing this, you can ensure you are on a great rate, and not paying more than you need to.
You can do this using Joulius, for free, personalised and unbiased results. All we need is a recent bill in electronic pdf format to get started. We’ll check your current plan against all publicly available plans of the same tariff type to find you savings. Get started here – it will take you less than 5 minutes and it’s completely free to use.
How many customers are on an embedded network?
The Australian Energy Market Commission (AEMC) estimates that there are currently more than 500,000 energy customers using an embedded network in Australia. Victorians account for over 140,000 or 28% of this number.
If you are on an embedded network, remember you should be paying no more than the Victorian Default Offer (VDO). As a renter, if you are thinking of moving, you can check with the agent on the status of the electricity arrangement in the apartment building. By doing this, you’ll know what to expect in terms of ongoing electricity costs.
