We are consulting on how to set maximum prices that exempt sellers may charge embedded network customers.
Maximum electricity prices for embedded networks and other exempt sellers review 2020
Consultation paper11 February 2020
Submissions to our consultation paper close10 March 2020
Draft decisionApril 2020
Submissions to our draft decision closeMay 2020
Final decisionJune 2020
Some electricity sellers are exempt from requiring a retail licence to provide electricity and related services. This includes some suppliers of electricity to embedded networks.
The Victorian Government has asked us to set a maximum price that these electricity sellers can charge embedded network customers (or categories of embedded network customers).
We are currently consulting on how these prices will be formulated.
Our consultation paper sets out our initial views on our approach to issues we will need to consider.
We are seeking input from stakeholders on the issues you think we need to take into account in formulating a maximum price.
View our consultation paper
What we are proposing
Our initial view is that the Victorian Default Offer is an appropriate price for the cost of selling electricity in an embedded network.
The default offer is currently not available to most embedded network customers. It was introduced for residential and small business customers in July 2019.
We propose to extend coverage of the Victorian Default Offer to all exempt sellers and their customers in embedded networks.
What is an exempt seller?
Some electricity sellers are exempt from requiring a retail licence. Generally exempt sellers buy electricity at a ‘gate’ meter, on selling it to individual customers.
Exempt sellers who sell electricity to residential and small business customers through an embedded network may include:
- apartment buildings
- caravan parks
- retirement villages
- shopping centres
- rooming houses.
Have your say
We are seeking feedback on our proposed framework for formulating maximum prices exempt sellers may charge embedded network customers.
Submissions should be made by 5 pm 10 March 2020.
Visit Engage Victoria to have your say.