An independent review into embedded electricity networks has assessed benefits and risks for ACT customers, recommending that embedded networks continue to be allowed in the Territory.
Minister for Water, Energy and Emissions Reduction Shane Rattenbury said that the ACT will make sure that consumers are charged fair prices and have strong consumer protections.
"In recent years, the ACT has seen a significant increase in the number of embedded networks, particularly in residential apartments and units," Minister Rattenbury said.
"With the rapid rise of embedded electricity networks, the ACT Government commissioned a comprehensive independent review in 2022 to make sure Canberrans are getting a fair deal. It's important that people living in apartment blocks are getting the fair prices and the same consumer protections as other customers.
"The review made 21 recommendations, the majority of which the ACT Government agrees with in principle. The review does not recommend banning embedded networks in the Territory due to the significant benefits that embedded networks can offer customers. The review found no evidence of price gouging in the Territory, and in fact found there were potential benefits offered to consumers by embedded networks such as lower network costs and bulk-purchase electricity arrangements.
"The ACT Government also agrees on the importance of improved customer access to renewable energy and innovation and is already delivering a number of programs to support this, including a partnership with the Australian Government to deliver a $3.6 million dollar solar installation program in multi-unit apartments. This will benefit over 2,100 Canberra households.
"We acknowledge there is a case for better regulation and consumer protections and will investigate and implement options for making improvements through the existing framework. Any required legislative amendments will only be made through extensive consultation with the ACT community and stakeholders.
"The ACT Government does not agree with some of the recommendations, which include imposing a reference price or price cap specifically for embedded networks. The existing ACT reference price already applies to the majority of embedded network operators, and we will look to extend this to cover all operators.
"Some of the recommended reforms are complex and will take time to achieve. We will undertake a thorough investigation of these recommendations and present detailed options for how they are implemented.
"As an immediate first step, we have developed a dedicated web page on the Everyday Climate Choices site to help community members to understand how embedded networks work, the implications for consumers, and how to make sure you are getting a fair price."
Learn more about embedded networks in ACT on the Everyday Climate Choices website or read through the full Independent Review and Government response on the Legislative Assembly website at www.parliament.act.gov.au
