Regulator releases new consumer resources about pricing protections for embedded network customers

Do you live in an apartment building, caravan park or retirement village or other multi-tenanted premise? If so, your electricity may be supplied by a single energy seller. This is called an embedded network. The Essential Services Commission has released a suite of new consumer resources, including an animated video and multi-language consumer fact sheets to help inform Victorians about their rights and protections as an embedded network customer.

In Victoria, the maximum amount residential and small business embedded network customers can be charged for electricity is capped. Energy sellers cannot charge these customers any more than the Victorian Default Offer, which is set annually by the commission.

The Victorian Default Offer was introduced in 2019 to replace standing offers set by electricity companies with a simple, trusted, reasonably priced electricity standing offer set independently by the commission. In 2020, the Victorian Default Offer was adopted as the maximum price exempt sellers could charge residential and small business customers in embedded networks. Victorian Default Offer prices vary according to which electricity distribution zone the embedded network is supplied through. The current 2023-24 Victorian Default Offer prices came into effect on 1 July 2023. 

As part of the commission’s energy compliance and enforcement activities, we monitor exempt sellers fees and charges to ensure they are accurate and do not exceed the Victorian Default Offer.

Embedded network operators must also sell and supply electricity to consumers in line with other obligations under Victorian energy law. These include strict rules around billing and fees, providing payment assistance to customers facing bill stress, life support equipment requirements, including specific information on reminder notices and disconnection warnings, and when and how operators can and cannot turn off a customer’s electricity.

If you are an embedded network customer and have a complaint that you are not able to resolve with your electricity seller, contact the Energy and Water Ombudsman on 1800 500 509. This is a free and impartial dispute resolution service for Victorian consumers.