New rules are planned to help lower energy costs for households and small businesses in embedded networks across Victoria.
Embedded networks are private energy systems used in places such as apartment buildings, retirement villages, caravan parks, and shopping centres. Around 174,000 households and 20,000 small businesses in Victoria use these networks.
Many customers in embedded networks have limited choice because they cannot easily change energy providers or compare prices.
Under the proposed changes, energy companies will be required to offer lower electricity and gas prices to embedded network customers. The changes will also apply to bundled energy services.
Estimated savings from electricity costs alone could reach up to $250 per year for households and up to $600 per year for small businesses.
The new pricing rules will follow consultation with industry groups and consumers. The lower prices are expected to begin from 1 July 2027.
Previous reforms introduced price limits for embedded networks through the Victorian Default Offer (VDO). The new changes aim to further reduce prices and bring them closer to the most competitive energy rates available.
Additional protections have also been introduced for embedded network customers. These include clearer rules for billing, support during financial hardship, and electricity disconnections.
New apartment-based embedded networks will also need to meet stricter renewable energy standards before they can be established.
The changes are part of wider efforts to improve energy affordability and protect customers. More than half a million Victorian households and small businesses are also expected to save on energy bills from 1 July this year through energy efficiency upgrades and renewable energy investment.