The NSW Independent Pricing and Regulatory Tribunal (IPART) released its final report on embedded networks in April 2024, outlining significant changes and recommendations to enhance consumer protections and pricing transparency in embedded networks.
In case you missed reading the 169 page report, we thought we would summarise what we believe are the 5 key elements to be aware of.
The key IPART recommendations following aim to create a more transparent, fair and competitive environment for customers in embedded networks, reflecting IPART's commitment to consumer protection and market efficiency.
1. HOT WATER
Hot water should be billed based on the underlying energy units (e.g., megajoules for gas), rather than per litre of water consumed. This aligns billing practices with those outside embedded networks and provides greater transparency and protection for customers under energy regulations.
2. BENCHMARKING
Maximum prices for electricity and gas should be benchmarked against the median of the lowest retail offers listed on the Australian Energy Regulator’s Energy Made Easy website. This ensures that prices are competitive and reflective of the broader market.
3. IPART OVERSIGHT
IPART seeking to be the regulator that determines and enforces compliance with the maximum prices for the sale of electricity, gas, hot and chilled water to customers in embedded networks in NSW.
4. PROTECTIONS FOR RESIDENTS
Residential customers in embedded networks should be protected by maximum price regulations, ensuring fair treatment across the board.
5. ACCESS TO EWON
Recommending the NSW Government enact legislation to require all embedded network sellers of hot and chilled water in NSW to become members of the Energy and Water Ombudsman NSW.
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