Energy Policy WA is developing improved protections for customers in embedded electricity networks.
Traditional supply of electricity
Most electricity customers buy electricity directly from a licensed retailer such as Synergy or Horizon Power. This electricity is supplied through Western Power or Horizon Power’s grid directly to the customer. Customers have an individual meter at their property which is owned and maintained by the grid operator.
Licensed retailers are obliged to provide protections to their customers. The protections include a mandatory Code of Conduct and access to the Energy and Water Ombudsman to resolve disputes. The conduct of licenced retailer’s is monitored for compliance by the Economic Regulation Authority.
What is an embedded network?
An embedded network is a private electricity network servicing multiple lots or tenancies within the one property. It is connected to the grid through a “master meter” which measures the electricity supplied for everyone on that property at that connection point.
The operator of the embedded network may be the property owner (or owners), or a third party under contract.
On-selling electricity in an embedded network
The embedded network operator buys electricity from a licensed retailer to supply the whole property and on-sells that electricity to individual consumers on the property. There may be solar panels or batteries in the embedded network that contribute to the electricity supply for the property. The consumption of each lot or tenancy is usually measured by its own sub-meter. These sub-meters also form part of the embedded network.
Importantly, customers in an embedded network buy electricity from the embedded network operator, not from a licensed electricity retailer.
More information on the current regulations for on-selling electricity in Western Australia can be found on the Energy Policy WA website On-selling of electricity and gas.
Embedded networks can take many forms
Embedded networks can be found in:
- apartment buildings
- retirement villages
- caravan and long stay parks
- shopping centres
- office blocks
- industrial parks
- university and health campuses
- airports
- sea ports
Not all of these types of buildings will have an embedded network - some can have separate Western Power or Horizon Power master meters for each lot. If you receive your electricity bill from a licensed retailer such as Synergy or Horizon Power, you are not in an embedded network.
However, a lot of the time, these types of properties are embedded networks.
What happens if you buy electricity through an embedded network?
While embedded networks can offer advantages such as cost savings and innovation in sustainable technologies. The main drawback is more limited access to customer protections than customers who buy electricity from licensed retailers.
Limited customer protections
Electricity is an essential service and customers of licensed retailers have certain rights protected under the Code of Conduct for the Supply of Electricity to Small Use Customers. They also have access to the Energy and Water Ombudsman to resolve disputes, and the licenced retailer’s activity is monitored for compliance by the Economic Regulation Authority.
None of these protections apply if you buy electricity from an embedded network operator.
Some limited customer protections apply under the licence exemption framework. For information on the current regulations for on-selling electricity in Western Australia see our fact sheets about on-selling.
Eligible customers in embedded networks can also access concessions directly from RevenueWA through the Energy Concession Extension Scheme.
