Embedded Network Provider (ENP)

A B C D E F G H I L M N O P Q R S T U V W
Em Ex

Embedded Network Providers (ENPs) refer to energy retailing companies who team-up with the developer or builder to provide the rough-ins (i.e., contribute to, or build the building energy infrastructure) in exchange for exclusive reselling rights of delivered utility services to the end users of the strata scheme in question. (e.g. Government pays a public works company to build a road or tunnel in exchange for a concession during an agreed period of time between the contractor and contractee).

The contractor (developer/builder) may choose to appoint an exclusive operator for both the electrical and gas services, or remain hybrid and only appoint an Embedded Electricity Network (EEN) provider. In any case, this then creates an ongoing income stream for the embedded network provider and the original building owner (i.e. developer/builder) for the duration of the contract. They may choose to retain the discount and/or not pass it on to the purchasers of the off-the plan project, and thus withhold it until all unsold or retained units are finally sold…

As such: –

a) Embedded network providers are more and more frequent as these offer builders/developers the opportunity of realising considerable “economies of scale”.
b) Property investors should do their due diligence as the presence of an ENP may affect the gross rental yield considerably.
c) Occupants (i.e., landlords and tenants alike) and including prospective tenants may be locked into monthly billing or approximations of consumption, instead of real energy readings.

Occupants in a multi-unit environment are totally reliant on the ENP’s inquestion ‘bona fide’ who may choose to act as a monopolist or not…

Here below are 2 examples of how an ENp works per service.

For Electricity (EEN)

Source: Energy On EEN provider

 

For Gas (EGN)

JEMENA - OC Apportionment of the cost of gas cooking per apartment

PDF from Jemena explaining how an EGN works

For more info:-