What is an embedded network and why should I care?

It is understandable to question how a strata company sets up the electricity meters could hold such importance for considering Sustainability, taking climate action and creating long-term cost savings for the strata levies.

But to have a master meter at the front of the property and each unit with a sub-meter creates a valuable opportunity for the owners of the property to work together and introduce sustainability improvements like Solar PV and batteries.

An embedded network also allows purchasing bulk electricity cheaper than Synergy provides to individuals, which can generate savings to reduce strata levies. The electricity comes from Western Power the same as it always has, Synergy often remains the retailer but other retailers provide a competitive market, like Kleanheat and Alinta.

The key difference

Physically the difference between an embedded network property and a multi-meter is only the gate meter at the front of the property. This reads the electricity usage for all units, so only one electricity account exists.

There are multiple ways to manage the embedded network. Generally, there will be a sub-meter for each unit, which is read so each resident pays for the usage in their lot. The meter reading management is often through the strata management company or a third-party provider who will issue the invoices.

The Risks

There have been issues with the management of embedded networks, mostly in the eastern states, before the laws were improved for consumer protection. WA is currently having a review on our legislation and code of conduct to make sure our protection and laws keep up with a fast-changing industry, as renewable energy and Electric vehicles are not fitting with the 1990’s legislation.

The code of conduct changes will ensure all owners and residents are more consistently managed, and information is more transparent, such as meter readings and tariff rates. A recent (2022) Energy Policy WA survey found that most residential users in embedded networks are happy and better off compared to standard provision, but the information needed to be more consistent and available.

WA has had strata using embedded networks for decades and there are over 450 properties using this system. So it is not a new concept. What is new is the ability to easily convert from a multimeter to an embedded network and have renewable infrastructure made available to owners with the embedded network.

The conversion

Strata companies with 20 or more units should consider the benefits of converting to an embedded network for their property. Commercial buildings might consider with smaller lots if there is higher electricity use.

It is a long process, but careful planning ensures the desired outcome will be met. Only a majority acceptance is required from the owners to proceed, but all units will be part of the conversion.

Switchboard Upgrade

The highest cost for most strata companies to complete the conversion is upgrading the electrical infrastructure to gain Western Power approval. This varies depending on the age of the building and previous works that may have taken place.

Many strata companies will proceed with the embedded network conversion when they need to have the switchboards or major upgrades done, as this provides a way to recover the maintenance cost and improve the existing system.

The Cost

This is the big question. Unfortunately, there is no easy answer, it depends mainly on the upgrade requirements and the size of the strata company. The good news is that most companies that provide the conversion will offer a payment plan that allows the strata company to use the cost-saving benefits to pay the conversion cost over a set number of years – usually between 3-10 years.

The first step

Having the information to make an informed decision is the first step. ESM Strata has an in-house advisor to get you on the right track, obligation and cost-free. Once the council members feel this is something they should be considering, Lee de Castro, the sustainability and energy advisor, will assist with the feasibility report and getting all the information needed customized for your building.

Information from Energy Policy WA Link

Types of Embedded Networks in Srata

Page updated

Report abuse