An Electrical Embedded Network (EEN) is a form of retail electricity supply where the Owner and Operator of the electrical network are exempt from the requirement to hold and Authorised Retail License from the AER and the ESC Vic or to be a registered participant in the Australian Energy Market through the AEMO.
Embedded Networks “on-sell” electricity to the Occupiers in their networks. On-selling is purchasing through one account all the electricity needed to meet the needs of the a multiple-tenancy site and selling it to Occupiers. It is called on-selling as the supply is purchased in bulk and then sold on.
Individual meters are provided for each occupancy and the operator sells the electricity to Occupiers and collects the revenue. Surplus generated between the cost of the electricity supply and the on-sold retail value is then available to the owner of the network.
Traditional Electricity Supply Arrangements
The traditional supply of electricity to Occupiers has three key components:
- Generation of electricity at a power plant
- Distribution network for supply of electricity to an individual meter on the customer’s premise; and,
- Retail market of electricity.
The retailer has the responsibility of sourcing the electricity from a generator on the customer’s behalf and invoices the customer for the electricity used and the transmission through the distributor’s network.
Electricity in an Electrical Embedded Network (EEN)
In an EEN, the whole site is supplied by one connection from the local distribution network. This connection is metered by a parent meter, which is usually located on the network boundary. The EEN takes supply of electricity at that point and it is paid for as one account by the owner.
As there is now one bulk supply rather than multiple individual supplies, it is possible to negotiate considerably better rates for the same consumption.
The on-site metering and infrastructure is installed, owned and operated by the network owner and Operator. 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.
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