Umair Gaines
In Victoria, most people get their electricity from licensed retailers, but some buy their electricity from a private network known as an embedded electrical network (EEN). An EEN is a collection of networked electricity meters that serve a group of private properties and associated electricity customers, connected via a parent market electricity meter into the National Electricity Market. Since 1 July 2018, embedded networks operating in Victoria must join the EWOV scheme as members, which provides customers with clear consumer protections and access to a free and independent dispute resolution service. The Victorian Government intends to reform the regulatory framework for embedded networks in residential sites to enable competitive retail offers and enhanced consumer protections.
| Characteristics | Values |
|---|---|
| Definition | A collection of networked electricity meters serving a group of private properties and associated electricity customers, connected via a parent market electricity meter into the National Electricity Market. |
| Who is it for? | Some customers in Victoria buy their electricity within a private network, known as an embedded network, rather than from licensed retailers. |
| Who operates it? | Embedded Network Operator (ENO) – responsible for and authorised by relevant Regulators to operate an Embedded Network and sell electricity purchased as a National Electricity Market Customer to customers within that electrical installation. |
| Metering | All meters within embedded networks must be issued with a National Meter Identifier to enable unencumbered access to the electricity retail market. |
| Consumer protections | Since 1 July 2018, embedded networks operating in Victoria must join the EWOV scheme as members, giving customers access to clear consumer protections and a free and independent dispute resolution service. |
| Regulatory reform | The Victorian Government intends to reform the regulatory framework for embedded networks in residential sites to enable competitive retail offers and enhanced consumer protections. |
| New licensing regime | Anyone who supplies and sells electricity in new residential sites containing an embedded network will need to obtain a specific Local Energy Services (LES) licence. |
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What You'll Learn
- Embedded electrical networks (EEN) are collections of networked electricity meters serving private properties
- Embedded network operators (ENO) are authorised to operate embedded networks and resell electricity
- Greenfield (GF) sites are empty with no buildings or metering present
- Brownfield (BF) sites have existing retailer metering within existing buildings
- Consumer protections and dispute resolution services for customers in embedded networks
Embedded electrical networks (EEN) are collections of networked electricity meters serving private properties
Embedded electrical networks (EEN) are a collection of networked electricity meters serving private properties and their associated electricity customers. In other words, it is a private electricity network within a larger public electricity network. EENs are connected to the National Electricity Market through a parent market electricity meter.
EENs are commonly found in residential sites such as apartment buildings, social housing, retirement villages, and residential parks. In these settings, individual dwellings are connected to the EEN, which in turn is connected to the main electricity grid. This allows for the centralised management and distribution of electricity to multiple customers within the network.
The Embedded Network Operator (ENO) is responsible for operating the EEN and reselling electricity purchased from the National Electricity Market to customers within the network. ENOs are authorised by relevant regulators and are subject to specific regulations and consumer protection obligations.
In Victoria, there have been proposals for regulatory reform to enhance consumer protections and enable competitive retail offers for customers within embedded networks. These reforms include the introduction of a new licensing regime, requiring anyone supplying or selling electricity in residential sites with embedded networks to obtain a Local Energy Services (LES) licence. The Victorian Government's Expert Panel released a report in January 2022 with 16 core recommendations for reform, which are expected to be implemented in stages.
It is important to note that customers within embedded electrical networks have the right to switch to a different electricity provider. However, in practice, there may be barriers to switching providers, and assistance may be required to navigate the process successfully.
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Embedded network operators (ENO) are authorised to operate embedded networks and resell electricity
An embedded electrical network (EEN) is a collection of networked electricity meters that serve a group of private properties and associated electricity customers. These customers are connected via a parent market electricity meter into the National Electricity Market. An embedded network operator (ENO) is responsible for operating an EEN and reselling electricity to customers within that electrical installation.
In Victoria, most people get their electricity from licensed retailers, but some buy their electricity within an EEN. Since 1 July 2018, ENOs operating in Victoria must join the EWOV scheme as members, providing their customers with clear consumer protections and access to a free and independent dispute resolution service.
There are a number of large ENOs operating in Victoria, including WINenergy, Energy On, Active Utilities, ENSA, Energy Intelligence, Benergy, Network Energy Services, and Seene. Customers within an EEN have the right to transfer to a different company, but there are often barriers to switching providers.
The Victorian Government intends to reform the regulatory framework for ENOs in residential sites to enable competitive retail offers and enhanced consumer protections. A new licensing regime is expected to be introduced, requiring anyone who supplies and sells electricity in new residential sites containing an EEN to obtain a Local Energy Services (LES) licence. This is expected to come into force from 1 January 2023, with existing networks required to update their registration by 31 December 2022.
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Greenfield (GF) sites are empty with no buildings or metering present
Greenfield (GF) sites are empty sites with no buildings or metering present. In the context of electricity networks in Victoria, Australia, a Greenfield site refers to undeveloped land that is being prepared for residential development. These sites are typically former rural lands in Melbourne's growth areas, which are being transformed into residential lots for housing, often detached houses.
The Urban Development Program (UDP) identifies Greenfield land and facilitates its conversion into residential areas. This involves subdividing the land into lots, providing essential infrastructure, and ensuring compliance with planning guidelines. As of December 2022, Melbourne's Greenfield land had the potential to yield around 375,000 residential lots, with an estimated capacity to meet demand for approximately 19 to 23 years.
When developing a Greenfield site, a fresh Embedded Electrical Network (EEN) is established, which includes the installation of a new site parent meter. The EEN is a collection of networked electricity meters serving a group of private properties connected to the National Electricity Market through a parent market electricity meter.
Greenfield sites offer various benefits, including affordability, environmental considerations, walkability, and compactness. They are designed to be affordable, with serviced lots priced lower than equivalent options in other cities. Greenfield areas also incorporate up to 20% open space, including local wetlands, and promote walking and cycling infrastructure by ensuring that essential amenities are within a 10-minute walk for residents. Additionally, these sites are more compact than established suburbs, with higher density requirements.
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Brownfield (BF) sites have existing retailer metering within existing buildings
In the context of electricity networks, a Brownfield (BF) site refers to an area with existing retailer metering within existing buildings. In other words, it is a site with an existing Embedded Electrical Network (EEN) metering system in place within pre-existing structures. This is in contrast to a Greenfield (GF) site, which is an empty site with no buildings or metering infrastructure in place.
In the state of Victoria, Australia, electricity distribution and metering are regulated by local distribution businesses, as outlined by the AEMC (Australian Energy Market Commission). While Victoria has its own state regulations, the new national rules for metering apply to customers in New South Wales, Queensland, Tasmania, the Australian Capital Territory, and South Australia. These rules mandate advanced meters for new connections, enabling features like 'demand response' and providing detailed data on energy consumption.
Brownfield sites, with their existing metering infrastructure, are typically associated with previously developed or abandoned properties. These sites may have been used for commercial or industrial purposes and could be contaminated due to the past use of hazardous substances or the presence of materials like asbestos and lead paint in older buildings. Redeveloping Brownfield sites can be challenging due to the potential environmental and health risks associated with contamination.
When reactivating or redeveloping a Brownfield site, it is essential to address environmental cleanup liability. This involves conducting thorough site investigations, including drilling, sampling, and laboratory analysis, to determine the presence and extent of any contamination. Once the contamination is characterised, remediation measures can be implemented to make the site safe for reuse. This process of Brownfield remediation can revitalise underutilised land, improving the environmental, social, and economic conditions of the surrounding community.
In the context of electricity networks, the presence of existing metering on Brownfield sites can impact the implementation of Embedded Electrical Networks (EENs). When establishing an EEN on a Brownfield site, the existing metering infrastructure may need to be integrated into the new network or upgraded to meet current standards and regulations, such as the requirement for advanced meters in Victoria.
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Consumer protections and dispute resolution services for customers in embedded networks
In Victoria, the Essential Services Commission (ESC) has introduced a range of consumer protections and dispute resolution services for customers in embedded networks. These protections aim to safeguard the rights of those who receive their electricity supply from a multi-tenanted building or area, through a privately owned and managed supplier.
The ESC has developed resources such as an animated video and multi-language fact sheets to educate Victorians about their rights and protections as embedded network customers. One key protection is the Victorian Default Offer, which caps the maximum amount that residential and small business customers in embedded networks can be charged for electricity. This offer, set annually by the ESC, ensures that customers in embedded networks are not charged more than those with a licensed retailer.
The Energy Retail Code of Practice and the Electricity Distribution Code of Practice provide further protections for customers in embedded networks. These codes outline the obligations of embedded network providers, including strict rules around billing and fees, payment assistance, life support equipment requirements, and disconnection policies. For instance, retailers must offer assistance to customers facing bill stress, which may include providing flexible payment options or referrals to government-funded assistance programs and financial counselling.
If customers in an embedded network have a complaint that they cannot resolve with their electricity seller, they can contact the Energy and Water Ombudsman. This free and impartial dispute resolution service can be reached by calling 1800 500 509. The Ombudsman service helps Victorian consumers resolve issues related to their energy supply, ensuring their rights as customers are respected.
Additionally, the ESC encourages customers to report potential non-registration of embedded networks. If a customer believes their electricity is supplied by an unregistered embedded network, they can anonymously contact the ESC at [email protected]. This reporting helps ensure that all embedded networks are properly registered and compliant with the relevant codes and policies protecting customers.
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Frequently asked questions
An Embedded Electricity Network is a private network of electricity meters that serve a group of private properties and their associated electricity customers. These are connected via a parent market electricity meter into the National Electricity Market.
The Embedded Network Operator is authorised to operate an Embedded Electrical Network and sell electricity purchased as a National Electricity Market Customer to customers within the same electrical installation.
A Brownfield Network is a site with an existing Embedded Electrical Network (EEN) metering system within existing buildings.
The Energy and Water Ombudsman Victoria (EWOV) is a free and independent dispute resolution service for energy and water consumers in Victoria. Since 1 July 2018, embedded networks operating in Victoria must join EWOV as members, providing clear consumer protections for their customers.
The Victorian Government intends to reform the regulatory framework for Embedded Networks in residential sites to enable competitive retail offers and enhance consumer protections. A new licensing regime is expected to require electricity suppliers and sellers in new residential sites with Embedded Networks to obtain a Local Energy Services (LES) licence.
