Embedded networks are increasingly common across Australia’s multi-user developments, servicing high-rise apartment blocks, shopping centres, retirement villages, commercial precincts, caravan parks and more. Delivered through private infrastructure, they offer efficiency, cost savings and emerging sustainability solutions. But what rights do consumers have to opt out if they want to make their own energy choices?
This post explores consumer rights, legal frameworks and switching options, leveraging insights and guidance provided by ENM Solutions.
An embedded network is a private electricity network owned or controlled by a property owner or operator. The network purchases energy at a parent meter and redistributes it to occupants through internal infrastructure .This arrangement often delivers cost efficiencies and centralised energy management across multi-tenant facilities.
All embedded networks fall under the Power of Choice reforms introduced on 1 December 2017. These reforms aim to empower consumers by enabling access to competitive energy retail offers and smart meter deployment.
A central enabler under this regime is the Embedded Network Manager (ENM), a role accredited by AEMO (Australian Energy Market Operator). An ENM facilitates market access by assigning a National Meter Identifier (NMI) to consumers, enabling them to switch to an on-market retailer of their choice.
Once designated “on-market”, a consumer may later revert to the embedded network (as “off-market”) if they accept an offer from the Embedded Network Service Provider (ENSP).
The Australian Energy Regulator (AER) continues to refine the embedded network regulatory framework. Its Issues Paper (Nov 2023) outlines key principles: exempt customers should have similar consumer protections as regular retail customers, including the right to choose a retailer.
ENM Solutions further examines the proposed update to the Network Exemption Guideline (Version 7 draft), with important reforms such as:
Additionally, recent rule changes aim to curb “loyalty penalties”, ensuring embedded network retailers cannot charge prices exceeding the standing offer when contract benefits change or expire, backed by civil penalties. Electricity tariffs cannot rise more than once per year, and certain vulnerable consumers are protected from fees.
In summary, yes, many embedded network customers can opt out, but the process involves multiple steps:
While legal rights exist, their feasibility depends on infrastructure, operator cooperation and retailer availability.
By understanding the role of ENMs and the broader implications of Power of Choice, businesses can leverage the benefits of this reform to make informed decisions about their energy usage and costs.
For embedded network operators, the creation of the role of an Embedded Network Manager (ENM) is significant. The ENM facilitates the connection between embedded networkcustomers and the broader National Electricity Market (NEM), ensuring accurate registration in market systems.
If you’re navigating this process and need clarity or technical support, ENM Solutions specialises in embedded network compliance, and ENM accreditation to help ensure a seamless transition.
Contact us today!
