Thousands of NSW households on embedded electricity networks to receive price cap amid government crackdown
Thousands of people are lining up to get cheaper electricity bills as the NSW state government prepares to impose a price cap on buried networks.
More than 95,000 households in the state are estimated to be on buried electrical networks; This means that electricity is supplied to multiple buildings from a single connection point to the main grid.
They are often found in apartment buildings, nursing homes and shopping malls, and can provide customers with electricity, gas, hot water, cold water or air conditioning.
Due to the difficulty of finding better deals, a planned price cap “generally equivalent to competitive market offers” will be imposed on such networks, giving customers a “fairer path forward”.
Other consumer protections will also be introduced, such as access to free and independent dispute resolution through the NSW Energy and Water Ombudsman, national and state-based energy rebates, payment support programs and protection from lengthy energy supply contracts.
NSW Energy Minister Penny Sharpe said the changes follow an Independent Pricing and Regulatory Tribunal (IPART) review into the future of embedded networks in the state.
The government is implementing 36 of the 38 recommendations made in the review.
“This action plan is a decisive step to ensure every energy consumer in our state has access to a fair energy deal, regardless of where they live and work,” Ms Sharpe said.
Minister for Better Regulation and Fair Trade Anoulack Chanthivong said people living with established networks had faced greater challenges than others “for too long”.
“These new measures will create a more sustainable and customer-focused embedded network market in the future,” he said.
In August, as budget estimates for NSW’s energy management were heard, tense scenes erupted as the Coalition squabbled over who would question Ms Sharpe.
Ms Sharpe was facing questions about the future of the Eraring power station and clean energy infrastructure projects.
During questions about long-term storage and production targets, Ms. Sharpe said: “So we’ll make sure we’re constantly adjusting what we need.”
“I hope the Liberal Party will support it. I’m not so sure about the National Party,” he continued.
