The State Government’s decision to ban embedded networks – private electricity networks that serve multiple customer premises in a building or self-contained site – is set to reduce the number of households prevented from being able to source a potentially fairer deal.
They are commonly used to supply power to consumers in apartment blocks, retirement villages, social housing, and caravan parks.
Minister for Energy Lily D’Ambrosio said the Victorian Government is banning embedded networks because all Victorians deserve to get the same competitive energy deals and protections.
“It is driving down the cost of living when people need it most,” she said.
“We’ve already delivered energy market reforms, banned door-to-door sales and cold calling, and increased penalties for retailers who engage in dodgy behaviour. This is delivering a better deal for all Victorians.”
An expert panel heard from hundreds of frustrated Victorians feeling ‘trapped’ in embedded networks.
The ban on embedded networks in new residential apartment buildings begins in January 2023, with limited exemptions for buildings that run on 100 per cent renewable energy to the benefit of their residents.
A second phase of the review process, which will involve further consultation with industry and consumer groups, will determine the details of a licensing regime that is intended to ensure greater choice and protections.
The reforms will mean the more than 140,000 Victorians living in residential embedded networks will benefit from increased consumer protections and greater access to competitive retail offers.
For more information visit engage.vic.gov.au/embedded-networks-review.
