AER Releases Draft Guidelines: Major Changes Proposed for Embedded Network Operators
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AER Releases Draft Guidelines: Major Changes Proposed for Embedded Network Operators

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On March 17, the Australian Energy Regulator (AER) released its long-awaited draft decision and proposed amendments to the Network Exemptions Guideline and Retail Exempt Selling Guideline. These changes are part of a broader review launched in late 2023 to address customer harms and modernise protections for embedded network residents.

If you are part of a strata committee or a resident within an embedded network โ€“ this affects you.

What's Changing?

The AER is now consulting on several significant changes. Here are the 4 major ones likely to impact residential embedded networks the most:

 

 

๐Ÿ“Š Annual Reporting of Customer Numbers
From 1 July 2026, most registered embedded network operators must report annual residential customer numbers to the regulator.

This increases visibility and compliance accountability across networks.

 

๐Ÿ’ธ Requirement to Publish Tariffs and Discounts
Operators must now publicly display electricity tariffs and any discounts (compared to local standing offers), either on a website or a communal noticeboard.

This improves price transparency and allows residents to better understand their options.

 

๐Ÿ“ข Clearer Pricing Rules
Exempt sellers will be required to:

Notify customers of price changes at least 5 business days in advance

Avoid charging fees not applied by local area retailers (e.g. credit card surcharges)

Publish all charges transparently

 

โ›” Stronger Disconnection Safeguards
Disconnections will be prohibited in cases involving family violence or if they would pose a safety risk. This brings embedded networks closer to the NERL (National Energy Retail Law) standard of care.

REVIEW YOUR EN AGREEMENT TODAY

๐Ÿ’ฌ What Happens Next?
The AER is currently reviewing feedback on the draft guidelines. Final decisions are expected later this year. Embedded Network Arena will continue to provide analysis and support tools to help you stay compliant.

๐Ÿ‘‰ Need Help Interpreting the Draft?

All we need is a proactive approach โ€“ from your strata manager, your committee, or both. We help lay out all the options based on your embedded network agreement so you can make an informed, confident decision. ๐Ÿ“Šโœ…

Letโ€™s get more out of your network.

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The Embedded Network Arena are an independent consultancy firm, and we operate for the benefit of our clients. Our parent company, ARENA Energy Consulting, is a signatory to the Energy Charterโ€™s National Customer Code and we were appointed as a founding Council Member in December 2020. Additionally, we are proud to support the Strata Community Association and the Owners Corporation Network of Australia.

We operate under a โ€˜fee-for-serviceโ€™ advice model, which means that we do not receive brokerage commissions from suppliers. This ensures our independence is guaranteed.

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