Embedded Networks 101 - What do you know?

Despite their widespread and longstanding presence within the National Electricity Market (NEM), there are many questions and uncertainties around embedded networks that we commonly encounter.

What many of those already familiar with Embedded Networks take for granted, is that unless you have worked in the industry or lived in one – the experience and configuration differs so drastically to the average house on the street, that it can take a few passes to even convey what they’re all about. With that in mind, we start with the first and most crucial building block of Embedded Networks.

1. What is an Embedded Network?

Put simply, an Embedded Network is a type of energy network connected to the national grid that involves the supply of energy to a third party, most commonly found in privately owned and operated multi-tenant developments. These developments usually have business or residential tenants living or working in them, whose energy consumption is added together at a single connection to the grid, known as a Parent Connection Point, rather than individually. Owners or operators can then measure the energy used by each tenant through specific meters, and on-sell energy. Not all embedded networks involve the sale of energy.

2. What's an example of an embedded electricity network?

Common examples of embedded networks include apartment buildings, commercial office spaces, shopping centres, caravan parks, markets, ports and retirement villages. Each of these can obtain some benefit from the use of a private network to supply energy to customers or tenants. All of these involve supply for the whole development being consolidated to the single, or multiple, parent connection points and then on-supplied to those tenanted at the site. Despite this, many more kinds of sites are looking to become embedded networks that would not normally fit this definition. As new energy solutions become available, owners and operators are becoming more innovative in their use of embedded networks to benefit customers and utilise renewable energy.

3. How do I know if I am in an embedded network?

One of the first things you can look at to determine if you are in an embedded network is look at your electricity invoice. If the invoice you’re receiving does not have a national meter identifier (NMI) then it is likely you are being billed within an embedded network. Off-market customers who are living within Embedded Networks do not have NMI’s, which is a number used to identify a connection point in the National Electricity market. Most apartment buildings are embedded networks.

Other options:
- When you moved in, you should have been informed if your tenancy was in an embedded network. Check your information pack.
- You may be asked to sign up to an energy provider when moving in that you don’t recognise, many embedded network providers specialise only in embedded networks.
- Ask your landlord or rental agent, they should be able to advise you.
- Check the AER’s public register of embedded networks, if you’re in Victoria, check the ESC’s list:
     - AER: https://www.aer.gov.au/industry/registers/network-exemptions
     - ESC: https://escvic.microsoftcrmportals.com/rex-home/

4. Is Embedded Network electricity cheaper?

Whether or not you are receiving cheaper electricity will depend on the owner and operator of the embedded network you are living in. One of the potential benefits is that the building can combine all tenant usage, and negotiate a better rate by buying energy for the building in bulk. This provides access to better energy rates. However, the costs of running the embedded network and it’s services must also be recovered. What you are charged will depend on just how cheap the rates are your building has procured, what costs they need to recover and what profit they may be building to upgrade the network, building or invest in on-site renewables. All this plays into whether your embedded network electricity rates will be cheaper.

One of the tougher parts for smaller embedded networks is getting a good rate for the building, that’s why doing the work before commencing an embedded network is important – or bringing on specialist partners who have lots of experience supporting embedded networks to get a great result can be very beneficial. Like any other customer, if you’re not happy with your rates you can always ask for an improvement or consider changing your energy provider from the one at the Embedded Network.

Did we cover your question?

If not or you would like some more information – reach out to our helpful team at Info@ENMSolutions.com.au, we’re more than happy to help or answer further questions you might have.

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