Got an embedded network in your building?
Having implemented a default offer for residential electricity, the Victorian Essential Services Commission is now looking to set a maximum price for embedded networks and wants to hear from you. They’ll be making recommendations mid 2020.
For those residents who’ve been stuck with non-competitive electricity prices thanks to their incumbent embedded network provider being able to charge much higher prices than residential suppliers, the pricing for this special type of retailer are about to come squarely under new regulations designed to force retailers to set fairer prices. This comes after the success of the Victorian Default Offers which now require retail energy suppliers in Victoria to set a default offer.
A recent report by the Victoria Energy Policy Centre found that customers in embedded networks in Victoria were paying up to $439 a year more than the best deal they could get if they were able to switch retailers. A typical customer on an embedded network could reduce their bill by 36 per cent if they were able to switch to the best deal on the market.
Regulation to allow residents to decouple from their embedded network was enacted a few years back but this still required the resident to pay the costs of installing a separate meter, which could cost up to $1000.
The VSE is now seeking to provide embedded network customers with the same price protections available to other customers. The Vic Government recently froze the maximum price exempt sellers can charge embedded network customers at standing offer prices that applied in early 2019. Regardless, these prices are still likely to be higher than what other types of customers are paying.
You can also read what our friends at Flat.chat say about the long term cost of embedded networks here.
What’s an embedded network?
Embedded Networks are private electricity networks that serve multiple units/premises within a building. Common examples of embedded networks include shopping centres, apartment blocks and office buildings.
Do I have one?
You’ll likely be on embedded network if you can’t switch your electricity to a retailer of your choice.
What can I do?
Right now, you can have your say here.