Industry consultation paper - Energy prices in embedded networks - 15 August 2023

The NSW Government has asked IPART to recommend appropriate price protections for customers supplied electricity, gas or hot or chilled water through an embedded network. We have also been asked to recommend whether new hot and chilled water embedded networks should be prohibited.

There are currently few limits on the prices paid by customers in embedded networks, and it is difficult for individual customers in embedded networks to switch retailers if they are unhappy with their supplier.

We are seeking your views on how maximum prices should be set, including the criteria for assessing cost setting methodologies. We consider that the Australian Energy Regulator’s Default Market Offer (DMO) which caps standing offers for electricity customers who are not in embedded networks is likely to be too high for individual embedded network customers who cannot easily shop around.

We are also seeking:

• related information, such as the costs of supplying customers through embedded networks, and the prices being charged.
• information from stakeholders on the benefits and disadvantages of hot and chilled water embedded networks

Submissions to this paper are due by 11 September 2023. We also encourage you to attend our online stakeholder workshop on 21 September 2023. There will be a further opportunity to make a submission to our Draft Report in November, before we finalise our recommendations in March 2024.

See also:

Media release

Consumer consultation paper