IPART has issued a media release stating: "New laws for electricity pricing in communities with embedded networks" which can be falsely understood to be that all electricity suppliers are only able to charge up to a set price for electricity within embedded networks. Although there is speculation that the NSW government is currently consulting on the strata legislation that may enact an amendment to section 132A to include a maximum price, this is currently not the case and is only applicable to NSW Land Lease Community embedded networks. Further details regarding NSW Land Lease Community embedded networks are provided below.
Change to maximum price for electricity NSW Land Lease Community embedded networks
Legislation has recently been passed in New South Wales regarding changes to the maximum price for electricity within embedded networks in Land Lease Communities. These changes are intended to ensure transparency and fair pricing within embedded networks in NSW Land Lease Communities.
The key points are as follows:
- Effective Date: The changes will take effect from September 25, 2024.
- Pricing Cap: The maximum price that operators and third parties can charge occupants in these communities is now limited to the price set by the Independent Pricing and Regulatory Tribunal (IPART).
- Scope Expansion: Previously, Section 77 did not apply to third parties, but this is no longer the case under the new legislation.
- Operator Obligations:
- Operators must notify residents in writing of the charges they pay for electricity supply through an embedded network at least once a year.
- Operators are required to review and compare their current supply contract offer with at least one other comparable offer from another electricity retailer, particularly if the contract period exceeds two years.