What is Embedded Network?

In an embedded network, the owners of large commercial or industrial properties such as shopping centres or apartment blocks sign a contract with the energy retailer to supply electricity to their entire property. The tenants of the property pay for their usage as each tenant is fitted with their private meter and all the electricity used by the tenants is aggregated to the parent meter.

The embedded network operator sells electricity to the tenants and collects the revenue. He pays for the building’s energy usage as one account. As the electricity is supplied in bulk, the operator or owner can sell electricity to the occupants at a more competitive rate.

The embedded network operators need to register with the Australian Energy Regulator (AER) and abide by the conditions set out in their Exempt Selling Guidelines (Retail and Network). The primary aim is to ensure that the tenants/customers gets adequate protection.

Benefits of an Embedded Electrical Network

There are a number of benefits to supplying electricity in a Embedded Network, as opposed to a traditional electricity infrastructure.

Tenant Advantages

For the tenants of a residential or commercial property, a significant advantage is a decrease in power prices, since they and the various other residents of a building are integrating their electricity use and get what totals up to a bulk discount from the electricity provider.

An Embedded Network likewise eliminates the hassle of needing to search for an electrical retailer. Relocating into a new house can be a demanding. An EEN allows the customer to rest peacefully in the awareness that they’ll be getting a competitive price for their power.

Owner Advantages

In an EEN, individual meters are provided to occupants and the operator sells the electrical power to occupiers and collects the revenue. For the operator of a property, an EEN provides an income source for maintenance and other building expenses.

It benefits both parallely by providing an income stream to the operator (covering the additional costs of operating such a network) whilst still providing tenants with greater savings than they would otherwise be able to negotiate independently with an on-market retailer.

Suitable settings for embedded networks include:

  • Apartment buildings

  • Retirement villages

  • Gated residential communities

  • Shopping centers

  • Commercial towers

  • Business parks

Regulatory framework Changes for embedded electricity networks

As we know earlier, customers under the embedded network didn’t have the choice to choose their electricity provider. But, AEMC in 2017, carried out some regulatory changes under the Power of Choice reform that came into effect to enhance competitors within the Embedded Network Market. The rules had put additional obligations on embedded network operators and lowered the barriers for tenants wanting to leave the embedded network due to earlier decreased freedom.

The Australian Energy Market Commission released its final report, updating the regulatory frameworks for embedded networks, on June 20th, 2019. The AEMC has now extended its proposed new regime to cover certain existing(or legacy) embedded electricity networks.

AEMC has established two new roles and responsibilities within the regulatory framework to lower the parties eligible for network and retail exemptions.

  • Off-market retailers: The currently eligible entities need to take authorization from AER as off-market retailers. The off-market retailer will have limited authority under the proposed framework to on-sell electricity, purchased at a parent connection, to consumers at a child connection point.
  • Embedded network service providers: ENSPs need to comply with many of the existing requirements levied on distribution network service providers, as well as the AER’s extensive regulatory powers (including monitoring, investigation, and information gathering) and reporting requirements.

The new framework instructs ENSPs:

To register all child connection points with AEMO, and

To maintain relevant data in AEMO’s systems; and

Off-market retailers to appoint a metering coordinator at off-market child connection points, in line with the requirement for authorized retailers in the NEM.

AEMC has taken several consumer protection initiatives as part of the new framework. The retail customers in embedded networks will have the same consumer protections as standard supply customers. Significantly, customers in new embedded networks registered with AEMO will be deemed “retail customers,” supplied by either an authorized on-market NEM retailer or an authorized off-market retailer under the new framework.

Click Here to get detailed information of the updations in the regulatory framework of embedded network!

How to Obtain an Embedded Electrical Network:

Solarmatic provides the complete service for you. We start by evaluating the site and then plan network implementation accordingly. You need not to worry about meter reading, invoicing, and credit management of occupiers, we take care of everything for you.

We provide single point of contact for all utility-related matters, providing you a companion with a primary focus on customer support, having in-depth knowledge, and understanding of your site.

Whether you are a builder of new sites or the building supervisor of existing properties, there is a special team of experts that can deliver for you.

To get an overview of how Electrical Embedded Network can provide for your multi-tenant setting, we need to know a few simple things:

  • A Single Line Diagram
  • The number of apartments and the number of rooms in each
  • The number of common areas, lifts, etc.
  • The number of business tenancies

Call us today on 1300 980 640 to learn how beneficial is your development is for you. It is that easy.

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