What is an Embedded Network?
The Embedded Network is the on-site network of internal wiring and meters that distribute the electricity from the main supply point to the electricity users, such as the tenants and common areas. This network is usually owned and operated by the body corporate or the owner of the premise. By eliminating the need for the distributor to individually meter each tenant, the whole site is supplied by one connection from the local distribution network. The owner of the site becomes the customer of the distributor and the retailer, instead of previously where each tenant on the premise had an individual contract with the distributor and retailer.
What Is an Embedded Electricity Network?
Let’s start by defining what an Electrical Embedded Network is and how it differs from a traditional electricity supply.
In an Embedded Electrical Network, the owner of a multi-tenant environment installs a parent meter and purchases electricity for their entire property as a ‘large market customer’. The whole site is supplied by one connection from the local distribution network.
All of the electricity used by the tenants of a building is aggregated to the parent meter, with each tenant fitted with their own private meter. The operator sells electricity to occupiers and collects the revenue, whilst paying for the building’s energy use as one account.
Electricity is effectively being supplied in bulk and the owner of a property is able to sell electricity to each tenant at a more competitive rate.
The on-site metering and infrastructure are installed, owned, and operated by the network owner and manager. The operator of the site becomes the customer of the retailer, instead of each occupant of the premises having an individual contract with any number of retailers. This traditionally leads to better pricing for all.
The traditional supply of electricity to occupiers has three key components:
- Retail market of electricity
- Distribution network for transmission and supply of electricity to an individual meter on the customer’s premise; and,
- Other Costs (Renewable Energy Charges, Australian Energy Market Operator fees, Metering charges etc.)
The retailer has the responsibility of sourcing the electricity on the customer’s behalf and invoices the customer for the electricity used, the transmission through the distributor’s network, and other costs.
This arrangement consists of the operator’s site being treated as many individual customers, with the retailer directly charging each customer separately.