Understanding the Embedded Network Code of Practice

What is the Embedded Network Code of Practice?

The Embedded Network Code of Practice is a proposal under the Alternative Electricity Services (AES) regulatory framework. Its objective is to define standards of conduct in the supply of electricity and related services to Customers by an Embedded Network Seller (ENS).

What is defined as an Embedded Network?

The code defines an Embedded Network as a Distribution System that:

(a) is located on a Property; and

(b) supplies Electricity to at least one Customer who is not a person in control of the Distribution System, or related to a person in control of the Distribution System; and

(c) is supplied with Electricity by another Distribution System operated by another person; and

(d) is not part of a Covered Network.

Strata – An embedded network could be as small as a single property with a granny flat to a large multi-unit strata tower.

Commercial,/Retail/Precinct/Retirement Living – Embedded networks are commonly found in shopping centres and office buildings where electricity is supplied to multiple tenants via a single connection point to the broader electricity grid.

For both sectors, the code applies regardless of whether a profit is made.

 Who is responsible?

The Embedded Network Seller (ENS) is the person who has the contract for the purchase of Electricity from the grid at a master meter or another person who has notified and been approved by the regulating body.

Key Obligations

Terms of engagement

There are requirements for a Supply Agreement (separate to lease terms)

and written disclosure statement (prescribed format) for each Tenant (Strata) or Lot Owner (Commercial,/Retail/Precinct/Retirement Living) which must be updated if details change. An ENS is also obliged to facilitate works if a Customer seeks an Alternate Supply, although this is at the Customer cost.

Metering Infrastructure

The ENS must, if requested, provide a Lot Owner (Strata) or Tenant (Commercial,/Retail/Precinct/Retirement Living) with meter information, facilitate the installation of an interval meter (at Lot Owner or Tenant cost), conduct meter testing (Lot Owner or Tenant only pays if no issues) and provide the Lot Owner or Tenant with access to see their meter.

Billing

A bill must be issued to a Lot Owner or Tenant at least once every 60 days and must set out, amongst other things, if a meter was read or estimated, amount of arrears or credit, meter number and start/end of supply period. Billing data must be retained for a period of 2 years.

Tariffs

The supply agreement must set out a tariff and a default flat rate tariff

must be offered which is less than or equal to the L1 Tariff for Strata and L1 tariff for Commercial,/Retail/Precinct/Retirement Living sectors.

Renewables & Emissions

There are exceptions on tariffs for EV charging and renewables supply but Customers cannot be charged if they don’t own or benefit from the renewable asset.

 Other obligations on supply

The ENS has obligations around financial hardship, family violence, dispute resolution and life support with requirements for policies and of notification.

What next?

Understand your obligations under the code & start implementing any required changes prior to commencement.

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This information is in alignment with the Voluntary Embedded Networks Code of Practice, Feb 22 2024.