Wondering if you should apply for a Network Exemption?
Today, it is almost impossible to be productive without electricity, one of our necessities. It is the government’s responsibility to make sure that all our basic needs are met, and strict laws have to be made so that they are fulfilled. To regulate this, they created microgrids to provide energy to areas with multiple residents and/or employees. They implemented embedded networks to benefit from and regulate these microgrids.
They centralise the distribution of the electricity within a certain area purchased from the National Energy Market at a smaller price. The electricity consumption is measured using a metre. The electricity is then “on-sold” to the customers within the embedded network, with prices based on their individual consumptions.
From there, it is up to the owner of the embedded network if they would reduce certain fees, upgrade infrastructure, or invest in renewable energy. Examples of areas wherein embedded networks operate in are apartments, commercial buildings, malls, or airports.
To be able to operate this way, it is important for corporations to apply for a Network Exemption Australia offers.
What embedded network operators do
Embedded network operators oversee reading meters, providing invoices, collecting payments, and many more to help the corporations and/or developers manage these embedded networks. This sort of service must operate within the boundaries of the law and its relevant policies.
Thus, it is important for corporations to apply for a Network Exemption through the Australia Energy Regulator (AER). If you overlook this step, it could result in violations and penalties like paying for a 20,000-dollar fine for every embedded network site. This will make sure the corporation doesn’t need to become a Network Service Provider to be able to distribute electricity. For the embedded network operators who want to be independent, it is best to apply for a Network Exemption. It will make life easier for everyone involved.
Network service provider vs. exempt network
The difference between being a network service provider and an exempt network depends on which governing body you register your embedded network. The former is registered through the Australian Energy Market Operator (AEMO) and the latter is registered through the AER. If you are unsure of what institution you should register with, consult with Embedded Network Solutions today!
When you apply for a Network Exemption in Australia, one must take note that, depending on the size of the area, multiple Network Exemptions must be used even if they are within the same area. Examples for this case includes malls, large developments, and retirement homes.
Given the size and volume of these areas and the complicated systems, you best apply for a Network Exemption and appoint an Embedded Network Manager. This is for cases where there are thirty (30) or more customers. These embedded network managers will also oversee retail competition in the electricity market.
If you’re looking for help with network exemptions or if you simply want to understand embedded networks more, Embedded Network Solutions has the resources to help you out.
Embedded Network Solutions will make sure that your corporation is on the right track and that you are following the relevant policies and regulations of embedded networks. ENM Solutions also provides consultation services and metering solutions. They make sure you don’t have to worry about this part of the process, so you can sit back and let them handle the work. To learn more, visit https://www.enmsolutions.com.au/industry-insight/understanding-network-exemptions-work-embedded-networks/.