Strata apartment buildings can make it tricky for comparing and switching energy retailers. Here's what Bill Hero can do.
Residential apartments use energy same as any other kind of dwelling, but the supply arrangements in strata can be different.
Embedded networks
Some strata buildings have their own private internal electricity distribution networks, known as 'embedded networks'.
If you are in an embedded network you can buy your electricity from either an authorised energy retailer, which is any open market retailer, or from your embedded network operator which is know as an 'exempt seller'.
However, in practical terms, its difficult for consumers inside an embedded network to buy energy from the open market, because the unique network conditions and costs will not be incorporated into the pricing offered by mainstream retailers, and because energy retailers typically do not want to sell to a consumer inside an embedded network.
If you can find an energy retailer willing to service you inside your embedded network, you will need to be careful that you are paying for an 'energy only' offer, so you don’t pay twice for network charges.
Network charges are the fixed part of supplying energy to your home or business.on a typical residential bill these are presented as 'daily connection charges'.
Normally in an embedded network the owner or operator of the site pays any network charges, including any daily connection charges for the 'gate meter' that connects your private network to the main distribution network, plus any internal charges for embedded network usage. You'll be charged for your share in each bill.
An open market retailer normally also includes the daily connection charge in their standard plans.
To make sure you don’t pay twice you will need to check that the energy retailer will give you an ‘energy only’ offer or that the owner or operator of the site is able come to an arrangement with the retailer about who will bill you for your network charges.
The bottom line is that embedded networks make it too hard to access the open market, even though the regulations say that you are allowed to purchase from the external market if you wish.
If you are in an embedded network, the rules are that your network operator must not charge you more that the standing offer prices for your local area retailer.
An exempt seller must not charge the exempt customer tariffs higher than the standing offer price that would be charged by the relevant local area retailer for new connections, if the local area retailer were to supply that quantity, or estimated quantity, of energy directly to the premises of the exempt customer.
Direct supply
Not all residential apartment buildings have embedded networks - its more common for an apartment to have a 'direct supply' arrangement.
This means the apartment will have its own meter connected directly to the mains distribution network, and residents can access any open market plan they choose.