You may hear or read the phrase "Power of Choice" at some stage while moving into or living within an Embedded Network. What this means is that within all Embedded Networks, you always have the option to choose your Energy Retailer.
So, what does that mean and why is it different? This article will provide you with all the information you need to know to make an informed decision and understand your power of choice.
Why is an Embedded Network different?
An Embedded Network allows the Owners of a site to purchase electricity for the entire development at a bulk rate and then sell it to residents at a more competitive rate than would normally be available directly from a retailer.
The building owners also own all the infrastructure on site, this means that the meters are private meters owned by the site owners.
How does this work?
The principle of an Electrical Embedded Network (EEN) is that the Owner of the network, organises the supply of electricity for the entire complex (residential apartments and common areas) at one single point, known as a Parent Meter. Because the supply is delivered in bulk, it is possible to achieve a discount on the cost of the electricity, which is then on-sold to Occupiers, both owners and tenants. This process allows Occupiers to be provided with a market-competitive rate for their electricity supply.
It is not compulsory for you to purchase your electricity through the Electrical Embedded Network (EEN).
The Australian Energy Regulator (AER) Power of Choice regulation is in place to ensure all electricity consumers have a right to their electricity retailer of choice. Energy On and your Owners Corporation support this regulation and if you can secure a more competitive rate on face value to those on offer from your OC, you are entitled reach out to us and compare rates, or to change retailers.
What does Energy On do in this process?
Our role in this is to assist you in the evaluation of the estimated rate/quote you receive from a retailer and ensure that you will, in fact, be better off under the new arrangement and, if so, to assist you with the process.
In order to accurately assess the value of the offer being made to you by your retailer of choice, there are some things you need to know.
The retailer you're speaking with will need to understand that the apartment is part of an EEN (Electrical Embedded Network). Once they are aware of this situation, they will then supply you with a quote that is for energy (electricity) only.
The supply charges that are levied by the Distributor in your network, cannot be passed through to you by your retailer of choice as they are being charged and paid for by the site Owners at the Parent Meter. The site is essentially the representative of the Distributor, passing on their supply charges. Your retailer will not receive these charges and cannot pass them on to you.
What does it mean if I choose to exit the Embedded Network?
If you choose to exit the EEN, you will receive two (2) electricity invoices; one for your electricity usage from your retailer of choice and one from Energy On for your network charges. It is important to note that your retailer may also require you to install a new meter to record your electricity usage, as they are unable to read the meter that currently records your energy usage. This is a private meter, forming part of the EEN and cannot be used to record usage for another retailer.
They may charge you to supply and install the meter. It is possible that this cost could be as high as $500.00. Once these arrangements have been made, your retailer of choice will contact Energy On as the Embedded Network Manager at your premises and arrange for the changeover.
Please contact us if you would like us to send you further fact sheets with more information, we're here to help.
Alternatively, you can download the AER's Fact Sheet via the link below.