Renters in Cairns are increasingly finding themselves locked into higher electricity bills as landlords and property developers switch to embedded networks, a new report has revealed.
What Are Embedded Networks?
Embedded networks are private electricity networks that supply power to multiple tenants within a single building or complex, such as apartment blocks, shopping centres, or caravan parks. Instead of choosing their own retailer, tenants are forced to buy electricity from the embedded network operator, often at higher rates than the standard market offer.
According to the Australian Energy Regulator (AER), the number of embedded networks in Queensland has grown significantly in recent years, with Cairns experiencing some of the highest concentrations. The AER estimates that around 10% of Queensland households are now part of an embedded network, with numbers expected to rise.
Impact on Renters
For renters, the lack of choice can lead to significantly higher power bills. A report by the Queensland Council of Social Service (QCOSS) found that customers in embedded networks can pay up to 40% more than those on the standard market offer.
“Renters are particularly vulnerable because they have no control over the energy arrangements in their building,” said QCOSS CEO Mark Henley. “They can’t shop around for a better deal, and they often don’t even know they are in an embedded network until they receive their first bill.”
The QCOSS report highlighted cases where tenants in Cairns were paying as much as $300 more per year on electricity compared to similar households outside embedded networks.
New Regulations on the Horizon
In response to growing concerns, the Queensland government has announced new regulations aimed at protecting tenants in embedded networks. From July 2025, all new embedded networks will be required to offer tenants the option to choose their own electricity retailer. Existing networks will have until 2027 to comply.
“We are giving renters the power to choose, just like other consumers,” said Queensland Energy Minister Mick de Brenni. “These reforms will ensure that tenants are not locked into unfair contracts and can access the competitive energy market.”
The new rules will also require embedded network operators to provide clearer information about tariffs and charges, making it easier for tenants to compare prices.
Industry Concerns
However, some property developers and landlords have raised concerns about the cost of implementing the changes. The Property Council of Australia warned that retrofitting buildings to allow tenants to choose their own retailer could be expensive and may ultimately be passed on to renters through higher rents.
“We support transparency and choice, but we need to ensure that the regulations are practical and cost-effective,” said Property Council Queensland Executive Director Jen Williams. “There is a risk that the costs of compliance could outweigh the benefits for tenants.”
Despite these concerns, consumer advocates argue that the reforms are long overdue. “Landlords and developers have been profiting from these captive markets for too long,” said Mr Henley. “These new laws will finally give renters a fair go.”
What Renters Can Do Now
For current renters in embedded networks, the AER recommends checking their electricity bill to see if they are being charged above the reference price. If they believe they are being overcharged, they can lodge a complaint with the Energy and Water Ombudsman Queensland.
Tenants are also advised to speak with their landlord or property manager about their energy arrangements and ask for a breakdown of costs. In some cases, landlords may be willing to switch to a different embedded network operator or allow tenants to opt out.
As the reforms roll out, renters in Cairns can expect more transparency and choice in their electricity supply, potentially saving hundreds of dollars a year.
