October 10, 2022
On the 29th of September, the Victorian Government published an update to the General Exemption Order (GEO). This update falls within the first phase of reforms into the ban on new Embedded Networks in residential apartment buildings, taking effect from 1 January 2023.
A new embedded network has been defined as embedded networks that were not operating under an existing exemption or with an agreement in place for the operation or meter installation for the residential embedded network prior to 1 January 2023.
Captured within the update are new conditions of exemption for all new Embedded Networks with 10 or more customers in the VR2 exempt category:
All new residential buildings operating as Embedded networks with 10 or more residential customers, must now provide 100% renewable electricity to those residential customers to be eligible for exemption. This can be sourced via a combination of on or off site renewable electricity. Electricity supplied/sold to common areas or shared Electric Vehicle (EV) charging stations, does not fall within this figure.
Within the 100% renewable electricity, 5% of this must be sourced from on-site renewable generation. Embedded Networks operating under this requirement will need to report annually to the Essential Services Commission (ESC) on how they are meeting these requirements. The form of on-site generation is not stipulated.
GEO 2022 specifically captures that the VDO applies as the maximum price cap for customers within 'new' embedded networks that fall under the new renewable energy conditions of exemption.
The revised GEO provides for a new deemed exemption category that the provision of EV Charging within Embedded Networks will fall under. This will apply to EV Charging stations offering either the sale or supply of metered or unmetered electricity.
From 1 January 2023, these exemptions will apply to the Embedded Network itself rather than to 'sites' in general. The exemption conditions will also require anyone not the owner of a Residential Embedded Network supplying electricity to customers to have in place an agreement entitling them to control and operate the embedded network. That agreement must be in place prior to 1 January 2023.
Embedded Networks with existing exemptions in place under the previous GEO, do not need to apply again for a new exemption. Transitional provisions will allow for these to rollover, with new Embedded Networks subject to the new exemption conditions under the revised GEO.
For advice on how these changes will impact your network, energy strategy and compliance - reach out to our knowledgeable team for an obligation free discussion on how we can help future proof your Embedded Network, and prepare you for the opportunities and challenges ahead.
Contact Us: https://www.enmsolutions.com.au/contact-us
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