Thousands of NSW households on embedded electricity networks to receive price cap amid government crackdown

Thousands of people are in line to get cheaper electricity bills as the NSW state government prepares to introduce a price cap on embedded networks. It is estimated more than 95,000 households in the state are on embedded electricity networks - meaning electricity is supplied to multiple premises from a single connection point to the main grid. They are often found in apartment buildings, retirement villages and shopping centres and can provide customers with electricity, gas, hot water, chilled water or air conditioning. Because of the difficulty in being able to find better deals, a planned price cap “broadly equivalent to competitive market offers” will be imposed on such networks, ensuring customers have “a fairer go”. Other consumer protections, such as access to free and independent dispute resolution through the NSW Energy and Water Ombudsman, national and state-based energy rebates, payment support programs and protections from lengthy energy supply contracts, will also be introduced. NSW Energy Minister Penny Sharpe said the changes follow the Independent Pricing and Regulatory Tribunal’s (IPART) review into the future of embedded networks in the state. The government is implementing 36 of the 38 recommendations in the review. “This action plan is a decisive step to making sure every energy consumer in our state, regardless of where they live and work, can access a fair energy deal,” Ms Sharpe said. Better Regulation and Fair Trading Minister Anoulack Chanthivong said people living with embedded networks had faced greater challenges than others “for too long”. “These new measures will create a more sustainable and customer-focused embedded network market for the future,” he said. In August, tense scenes erupted during a budget estimates hearing into NSW’s energy management as the Coalition bickered over who would question Ms Sharpe. Ms Sharpe was facing questions on the future of the Eraring power station and clean energy infrastructure projects. During questions about long-duration storage and generation targets, Ms Sharpe said: “So, we’re going to make sure that we’re constantly adjusting what we need.” “I would hope the Liberal Party would support that. The National Party, I’m not so sure,” she continued.