Embedded electricity networks
If you live in an embedded network, you have a right to choose your electricity retailer. However, depending on your meter type, Compare the Market may not be able to offer plans to all customers living in an embedded network.
What is an embedded electricity network?
When a building or development is privately owned, the operator may contract an electricity retailer to be the sole power supplier to every property in the building – this is known as an embedded network. It is a private electricity network where the owner of the building or site will purchase electricity from the retailer and then onsell it to the tenants. This works by having a single metered point that all the tenancies connect to, although each tenant will have a personal sub-meter to record their individual energy use.
The owner or operator of the embedded network must be registered with the Australian Energy Regulator (AER) and is then considered an ‘exempt seller’.1
In a building without an embedded network, each tenant will be individually connected to the electricity supply grid and be able to freely choose their retailer, although it may be more complicated for an embedded network customer to switch.
Can I switch my electricity retailer if I live in an embedded electricity network?
If you’re living in an embedded network, you have the right as an electricity consumer to be able to switch your electricity retailer – however, embedded network customers may find this a little more difficult than usual, and it may come with additional fees.
You may need to ask the site owner what you need to do to switch retailers (e.g. whether your current electricity meter is suitable or if you’ll have to purchase a new one). Once you have a suitable meter, you may be able to compare the electricity market for market offers.
You may also have to ask your new retailer for an ‘electricity only’ plan that does not include supply fees; otherwise, you may have to pay the supply cost for the embedded network and for your new retailer.
Compare the Market may offer electricity plans for embedded networks customers that have a residential meter. However, if we cannot match your National Meter Identifier (NMI), our online comparison service may return less electricity offers as a result. If the embedded network is registered as having a business meter, we will not be able to offer you electricity plans at this time.
Understanding how embedded electricity networks work
Do I live in an embedded network?
If you live in a single-tenanted property, you won’t be part of an embedded network. Embedded networks are found in multi-tenanted buildings or areas such as:
- Apartment buildings
- Caravan parks
- Retirement villages or parks
- Gated communities
- Shopping centres.
Not all of these types of buildings will be embedded networks. Your energy seller may inform you that you’re in an embedded network when you move in. If you aren’t sure, you can look for a National Metering Identifier (NMI) on your electricity bill; if you find one you likely aren’t part of an embedded network. You can also contact your body corporate or property manager and ask.
What is the electricity rate for embedded networks?
Retailers in embedded networks can choose their own rates, so they will vary depending on where you’re living and what state you’re in. In Victoria, the Victorian Default Offer (VDO) applies to embedded networks.2 The VDO is a benchmark plan that is considered a fair price for electricity in Victoria. Market plans can be more or less than the VDO. Generally, market offers are cheaper than the VDO to encourage customers to sign up with them. This keeps retailers from overcharging customers living in embedded networks. However, this doesn’t mean their prices will be as competitive as market offers for customers not living in an embedded network.
Am I still eligible for concessions in an embedded network?
Yes, you may be eligible for energy concessions, even when living in an embedded network. You may have to contact the person or embedded network operator that sends you your electricity bill and they may be able to apply for concessions on your behalf, as long as you’re eligible. You can find the full list of energy concessions in Australia here.
Are embedded networks cheaper?
There may be some pros to being in an embedded network, such as having the convenience of your electricity being sorted for you, but electricity customers may save more from being on a competitive market plan.
In an embedded network, your energy retailer does not need to have competitive pricing, which means you might be charged at a higher rate than someone on a market offer.
Meet our Head of Energy, Meredith O’Brien
As the Head of Energy at Compare the Market, Meredith O’Brien believes in educating Australian customers about the everchanging gas and electricity market so they can adjust their energy usage habits and get the most out of their energy plans.
Meredith has six years within the energy industry, following 15 years of experience in financial services and is currently studying a Master of Business Administration. Meredith is a dedicated customer advocate who is passionate about empowering Australians to find the right products to suit their needs by removing the confusion from comparing.
Want to know more about energy?
1 Queensland Government. Embedded electricity networks. Updated June 2024. Accessed October 2024.
2 Victorian Government. Victorian Default Offer. Accessed October 2024.