What is an embedded network?
In some sites (typically apartment blocks, retirement villages, caravan parks and shopping centres) the electrical wiring is configured in such a way as to enable the owner of the site to sell energy to all the tenants or residents based there. This is known as an embedded network.
The owner of a site with an embedded network usually buys energy from an energy retailer and then ‘onsells’ the energy to the different consumers at the site. In some situations the energy sold by the owner may be generated on site. Most people that sell energy in embedded networks are known as exempt sellers because they do not need to become authorised by the AER as energy retailers. However, they do need to hold a valid exemption from the AER and to follow certain rules. These rules are there to protect your rights.
How does being in an embedded network affect your energy rights?
All energy consumers have protections and rights but they may be different if you buy your energy from an exempt seller; compared to when you buy your energy from an authorised energy retailer.
Choosing who you buy energy from
If you are in an embedded network you can buy your electricity from either an authorised energy retailer or an exempt seller. However, consumers in an embedded network may have difficulty buying energy from a seller other than from the exempt seller. This is because of the way the network has been wired or because energy retailers may not want to sell to a consumer inside an embedded network.
If you can choose and decide to buy from an energy retailer instead of the site’s exempt seller you will need to be careful that you don’t pay twice for network charges. Network charges are the fixed part of supplying energy to your home or business. Normally in an embedded network the owner or operator of the site pays the network charges and will then bill you for your share. This is not a problem if you buy your electricity from the owner or operator of the site. A retailer normally also charges consumers a network charge. To make sure you don’t pay twice you should check that the energy retailer will give you an ‘energy only’ offer or that the owner or operator of the site is able come to an arrangement with the retailer about who will bill you for your network charges.
Consumer of an authorised energy retailer
If you buy your electricity from an authorised energy retailer you will have access to all the protections that retailers are obliged to provide you under the National Energy Retail Law and National Energy Retail Rules. Refer to the ‘Get energy smart’ section of the Energy Made Easy website for more information.
To find out if your energy seller has been authorised by the AER check our public register of authorised retailers.
Consumer of an exempt seller
If you buy your electricity from an exempt seller, you have similar protections and rights. These are part of the ‘exemption conditions’ that the seller must comply with to sell energy in an embedded network and may be different to those of consumers outside an embedded network.
Your energy seller must tell you about your rights at the beginning of your contract or agreement. Your energy seller must also give you a copy of their exemption conditions and explain their obligations to you.
If you are a residential consumer (for example, a long term resident in a caravan park, a resident in a retirement village or apartment building, or a tenant), your consumer protections will include:
- flexible payment options if you are experiencing financial difficulty
- clear and set time frames for receiving and paying bills
- complaints handling arrangements
- energy charges that are no higher than the standing offer prices that a local area retailer can charge contracted consumers
- clear and reasonable disconnection procedures.
If you are a tenant you may also have energy related rights and obligations under your tenancy agreement.
If you are a retail or commercial consumer (for example, if you operate a small business in a shopping centre) your protections will include:
- clear, reasonable disconnection procedures
- clear, set time frames for receiving and paying bills
- energy charges that are no higher than the standing offer prices that a local area retailer can, in certain circumstances, charge their consumers (only small retail and commercial consumers)
- complaints handling requirements.
Can the energy ombudsman help with a problem?
Exempt sellers and network operators who supply energy to residential consumers must join the energy ombudsman in their state or territory if membership is available. Please contact your state or territory ombudsman to discuss your complaint.