On 18 October 2022, I introduced a motion to the ACT Legislative Assembly calling for the Government to review embedded networks in the ACT.
Embedded networks are private utility networks that serve multiple customer premises in a building or self-contained site. They are mostly used to supply electricity to consumers in developments such as apartment blocks, retirement villages, social housing, and caravan parks. Instead of each individual tenant having a contract with a retailer, the building has one contract, and the utility is on-sold by the building to the tenants.
With cost-of-living pressures rising, there has been a recent increase in community concerns about embedded networks. Under the current system, embedded network users are locked into contracts made by parties completely unknown to them that generate bills that may be more expensive than other market offerings. The problem is worse for renters who don’t have direct access to the decision making of their strata organisation, unlike owner-occupiers who have more freedom to advocate for change.
As a result of the passage of my motion, the Government will examine the appropriateness of legislative reforms including: a ban on new embedded networks (exempting buildings that use renewable energy microgrids to deliver low-cost renewable energy to apartment blocks); further regulation of embedded network providers; and further consumer protections for embedded network users to equalise consumer protections for on-market users.