Embedded Network Customer Protections

Embedded Network Customer Protections

Embedded Network Customer Protections

Controversial media stories regarding embedded networks have recently been released advising there is a lack of legislation and protection in place for customers as well as bringing to light some bad eggs within the industry. SAS have years of experience in this field and want, not only our customers but all customers enjoying the strategy of aggregating energy usage within their communities to know that there is legislation in place protecting energy sales in their building.

In order to on-sell electricity to customers, strata corporations or site operators in QLD and NSW must hold an exemption issued by the Australian Energy Regulator from holding a retailer authorisation and follow the rules and conditions of this exemption.

SAS provide guidance to our strata committees to ensure they follow these rules and are compliant but to also protect their customers and ensure they are receiving the benefits of being in an embedded network.

A significant topic covered by the media is that embedded network operators are charging their customers exorbitant prices however the AER Exemption Guidelines specifically state that exemption holders must not charge customers higher than the standing offer of the local area retailer, for example in Southeast Queensland the local area retailer is Origin, so exemption holders use their Standing Offer rates as a pricing cap.   There are several determining factors that may vary the price the operator opts to on-sell energy for, such as the buildings load profile, the number of defaulting customers, the quality of the infrastructure, the provision for operational expenses.  A well run, well designed, honest and customer-focused embedded network will not be beaten on price.  SAS have 16 years of experience in customer focused embedded network support and we’re passionate about doing a good job first time, every time.

Part of SAS’ role is to keep up to date with legislation and any changes that are to be introduced to ensure that our committees know their responsibilities and to ensure their customers within the embedded network are protected.

If you would like further information regarding the rules surrounding embedded networks or to find out how SAS can assist your committee, please click here to contact us.

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