Embedded power networks to be banned

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Private power networks will be banned in new residential apartment buildings and existing networks will be reformed, the state government announced on July 26.

Embedded networks, or private power networks, serve multiple customer premises in a building or self contained site, which the government says prevents households from sourcing a fairer deal.

These networks are commonly used to supply consumers in apartment blocks, retirement villages, social housing, and caravan parks.

Energy Minister Lily D’Ambrosio said the ban would drive down the cost of living across Victoria, including in Sunbury and the Macedon Ranges, “when people need it most”.

“We’ve already delivered energy market reforms, banned door-to-door sales and cold calling, and increased penalties for retailers who engage in dodgy behaviour. This is delivering a better deal for all Victorians,” she said.

In a statement, the government said an expert panel appointed as part of an election commitment to improve consumer outcomes in the energy market panel had heard hundreds of frustrated Victorians who felt trapped in embedded networks.

“The ban on embedded networks in new residential apartment buildings begins in January 2023, with limited exemptions for buildings that run on 100 per cent renewable energy to the benefit of their residents,” the government said.

“A second phase of the review process, which will involve further consultation with industry and consumer groups, will determine the details of a licensing regime that is intended to ensure greater choice and protections.

“The reforms will mean the more than 140,000 Victorians living in residential embedded networks will benefit from increased consumer protections and greater access to competitive retail offers.”