Category: Embedded Networks

The Independent Pricing and Regulatory Tribunal (IPART) has been requested by the Hon. Victor Dominello MP, Minister for Customer Service, to investigate and report on embedded network issues in New South Wales (NSW). Embedded networks are private energy networks that serve multiple customers and are connected to another distribution or transmission system in the national grid. They are typically found in residential developments, shopping centers, caravan parks, and other lend lease communities. The investigation aims to address regulatory gaps in customer protection frameworks and ensure fair pricing for customers in embedded networks. Proposed Changes and Impact on Businesses: IPART will develop appropriate methodologies for setting maximum prices for hot and chilled water supplied through embedded networks. The possibility of prohibiting new embedded networks for hot and chilled water in NSW…

NSW distributor Ausgrid is proposing, in its draft plan 2024-2029, to introduce new embedded network tariffs that would have the effect of increasing network costs by approximately 30%. The reasons that Ausgrid advance for the proposed EN Tariffs centre around the nebulous concepts of equity and fairness to other network users. When comparing the electricity market today to the electricity market in April or May 2022, we see that there are fewer market offers available for consumers, higher prices on most market offers, and fewer retailers (with 8 retailers entering the Retailer of Last Resort scheme since 1 May 2022). Against this background, a proposal to introduce EN Tariffs that would result in a ~30% increase in network charges (Ausgrid’s Pricing Directions Paper for 2024-2029 para 4.4.3), needs to be…