Embedded Networks in NSW Strata: What Apartment Owners Need to Know in 2026

If you live in an apartment building in NSW, you may receive your electricity, gas, hot water or even air-conditioning through something called an embedded network.

But many owners and residents don't actually know what an embedded network is or whether their building has one.

That's becoming increasingly important.

New rules introduced in NSW during 2026 have increased transparency and consumer protections around embedded networks, making this a good time for owners corporations, strata committees and apartment owners to understand how these arrangements work.

What is an embedded network in strata?

An embedded network is essentially a private energy network within a building or development.

Instead of every apartment connecting independently to the main electricity or gas network, the building may have one main connection. Electricity or another service is then distributed to individual apartments through the building's own network.

Embedded networks can provide services including:

• electricity

• gas

• hot water

• centralised air-conditioning.

They are particularly common in newer apartment developments and larger strata schemes.

How do I know if my apartment building has an embedded network?

One of the easiest clues is your utility bill.

If you receive your electricity, gas or hot water bill from an embedded network provider rather than one of the major energy retailers, your building may be operating through an embedded network.

Your strata records may also contain agreements with an embedded network provider.

Importantly, NSW strata reforms that commenced on 1 April 2026 require information about exclusive supply networks, which include embedded networks, to be included in strata information certificates.

This means there should now be greater visibility for prospective purchasers about these arrangements when buying into a strata scheme.

Why do strata buildings use embedded networks?

There can be advantages.

By purchasing energy collectively, a building may potentially negotiate competitive rates or support shared infrastructure such as solar, batteries or centralised energy systems.

However, embedded networks have also attracted criticism because residents have historically not always had the same level of choice and consumer protection available to customers purchasing energy directly from the broader retail market.

This is one of the reasons NSW has introduced reforms.

What changed for embedded networks in NSW in July 2026?

From 1 July 2026, new NSW Government requirements began strengthening protections for customers receiving services through embedded networks.

Among the changes, embedded network sellers are required to:

• join the Energy & Water Ombudsman NSW (EWON)

• publish information about the embedded network services they provide

• publish information about prices

• provide greater transparency for customers.

Further reforms, including maximum pricing arrangements and new billing standards, are expected to commence in 2027.

For apartment owners and residents, the overall direction is clear: greater transparency and stronger consumer protection.

Can I choose my own electricity provider if I live in an embedded network?

This is one of the most common questions residents ask and unfortunately, there isn't always a simple yes or no answer.

Your options can depend on how the embedded network has been structured, the infrastructure within the building and the arrangements with the network operator.

If you're unsure, start by checking your current energy bill and asking your strata manager or embedded network provider for information about the arrangement applying to your building.

What should an owners corporation know about its embedded network?

For strata committees, an embedded network shouldn't simply be treated as another contract sitting in the building's records.

Committees should understand:

Who operates the network?

Know which company supplies the service and what responsibilities sit with that provider.

What does the contract say?

Understand the term of the agreement, pricing arrangements, responsibilities and any renewal or termination provisions.

When does the agreement expire?

Long-term contracts can easily disappear from view as committee membership changes over the years.

What are residents actually paying?

Committees should understand whether residents are receiving competitive pricing and clear information about their charges.

Are the building's records up to date?

With the increased disclosure requirements introduced in 2026, accurate record keeping is particularly important.

What should buyers check before purchasing a strata apartment?

Embedded networks should now form part of the due diligence undertaken when buying an apartment.

Before purchasing, consider asking:

• Does the building have an embedded network?

• Which services does it provide?

• Who operates it?

• What are the current charges?

• How long does the agreement run?

• Are there restrictions on changing providers?

• Are there any disputes or complaints relating to the network?

It's another reason why carefully reviewing the strata records before purchasing an apartment is so important.

Why this matters for strata committees

Embedded networks are a good example of how strata management is becoming increasingly complex.

Modern apartment buildings can involve dozens of contracts and service arrangements covering everything from lifts and fire systems to energy, telecommunications, security and building management.

The challenge for an owners corporation isn't simply signing these agreements.

It's making sure someone is actively monitoring them.

Knowing when contracts expire, understanding what owners and residents are paying, keeping appropriate records and periodically reviewing whether an arrangement continues to represent value are all part of good strata governance.

The bottom line

If your NSW strata building has an embedded network, now is a good time to understand exactly how it operates.

The reforms introduced during 2026 are bringing greater transparency and consumer protection to embedded network arrangements but owners corporations still need to understand the contracts and infrastructure operating within their own buildings.

A well-managed strata scheme doesn't simply pay invoices and renew contracts.

It understands what it is paying for, who is providing it and whether the arrangement continues to serve the interests of owners and residents.

At Centric Strata, we believe proactive strata management means looking beyond the day-to-day administration of a building and helping owners corporations understand the contracts, costs and responsibilities that can affect their property over the long term.

Need help understanding or managing your strata scheme? Contact Centric Strata to find out how our customer-focused approach to strata management can help your building.