Embedded network complaints and case studies

This quarter EWON opened 87 complaints from embedded network customers. 

Table 7 – Embedded network customer complaints by service provider, October to December 2022

EWON closed 90 complaints from customers whose electricity or gas (including hot water) is supplied through an embedded network.

Table 8 – Top 10 core issues for embedded network complaints closed, October to December 2022

Table 9 – Top 10 issues for embedded network complaints closed, October to December 2022

Customers in embedded networks have also been impacted by rising wholesale energy prices however they do not have practical access to retail competition, so cannot switch to a better offer from another energy retailer. This means customers have no option but to pay the price increases set by their current retailer or exempt seller, or the strata corporation can try to renegotiate the selling arrangements within the network. 

 Market conditions lead to increased prices

A customer contacted EWON for advice about the sale of electricity in a residential building. The building was set up as an embedded network and an authorised energy retailer had the rights to sell electricity within the network. The customer was both a resident of the building and the chair of the strata committee. He advised that there was a five year agreement in place with the authorised retailer, and the strata had been notified that the prices for each customer would be increasing by approximately 65% for the final year of the agreement. The customer complained to the energy retailer, and it explained this was due to the increased cost of energy. The retailer offered to review the prices if the contract was renewed for a longer period. 

 EWON provided information on embedded networks, and price increases. We also confirmed the provider was an EWON member and advised the customer that, if any future issues relating to billing or provider actions were unable to be resolved, he could return to EWON. 

 Price change notice and increased rates on bill not consistent  

A customer complained to EWON that the rates for electricity consumption applied to his recent bill were not the same as the rates included in his most recent price change notice from his energy retailer. He lived in an embedded network and his retail services were provided by an authorised energy retailer. The customer went to the retailer’s website to confirm what its current energy rates should be and he found the price information had been removed from the website. He called the retailer which confirmed that price information was no longer available. The retailer also advised that a price change notice had been sent to him nine months earlier. The customer complained to the retailer that the prices on his current bill were higher than in the price change notice he had received. 

 We referred the matter to the authorised retailer, for resolution at a higher level. The customer returned to EWON after he received no further response from the retailer. EWON contacted the retailer to obtain further information about the customer’s electricity billing. The retailer advised EWON that the prices on the customer’s current bill had increased and he had not been sent a price change notice as required by the National Energy Retail Rules. The retailer agreed to issue a new price change notice that would provide five days’ notice of the price increase. The retailer also agreed to apply a credit to the customer’s electricity account to compensate the customer for the price increase that had not been communicated.