The biggest package of NSW strata reforms in years commenced on 1 April 2026, and one of the quieter changes carries some of the loudest implications. From that date, every NSW Strata Information Certificate must disclose whether the building is on an exclusive supply network (commonly known as an embedded network), and the nature of that network.
It is a small change in the legislation. It is a meaningful change in practice.
If you sit on a committee, manage a building, or advise an owners corporation, here is what the reform actually says, why it matters, and what to do about it.
What the new rules require
From 1 April 2026, the Strata Information Certificate (the document buyers and lenders rely on to understand a strata scheme) must include details of any exclusive supply networks at the property. That covers embedded networks for electricity, gas, hot water and increasingly EV charging.
In plain terms, an embedded network is a privately owned network that sits behind a single bulk supply meter and on-sells utility services to residents within the building. Done well, embedded networks can deliver significant savings and infrastructure investment to a scheme. Done poorly, they can lock residents into uncompetitive rates and leave committees with limited oversight.
The new disclosure rules do not change the underlying right of an owners corporation to operate an embedded network. They simply make sure that buyers, lenders and incoming residents can see, in writing, that the network exists and what its terms are.
A second change later in 2026 will require the same disclosure in off-the-plan contracts of sale.
Why the reform matters for owners corporations
For most owners corporations the change has three practical effects.
The first is transparency. Embedded network details have historically been buried deep in strata records and often discovered after settlement, sometimes during a billing dispute. The reform brings those details to the front of the document buyers actually read.
The second is reputation. Schemes with well-structured embedded networks now have a clear way to demonstrate the savings, infrastructure and resident benefits the network provides. Schemes with old, poorly negotiated agreements may face awkward questions at sale time.
The third is administration. Strata managers and committees will need to ensure that the information shown on the Strata Information Certificate is accurate and up to date. That means knowing what kind of network exists, who operates it, what the resident tariff is, what the term and exit terms look like, and whether the network is on the AER exemption register.
What to do now
Whether you are running an embedded network or thinking about one, the reform is a good prompt to do four things.
First, locate the agreement. Agreements set up years ago by previous committees often sit in a folder no one has opened recently. Confirm who the operator is, what the term is, what the exit and renewal triggers are, and what tariff residents are paying.
Second, benchmark the resident tariff against the open market. Embedded networks are designed to deliver competitive pricing to residents. If yours is not, that is a conversation to have with the operator.
Third, make sure the data you will need to disclose is documented. Many committees will be surprised by how scattered the answers are when a Strata Information Certificate is requested.
Fourth, treat the reform as a chance to review value, not just compliance. A well-run embedded network can deliver hundreds of thousands of dollars in infrastructure value and ongoing resident savings. A poorly run one can do the opposite.
How Strata Energy Services helps
Strata Energy Services has structured embedded network tendering process for buildings of all sizes, from boutique schemes through to multi-stage residential portfolios. We run competitive tenders that can lead to infrastructure value to the owners corporation, transparent and competitive tariffs to residents, and the documentation a committee needs to comply with the new disclosure rules.
If you would like a review of an existing embedded network, or independent advice on whether a new one would benefit your building, visit https://www.strataenergyservices.com.au/ or email CENtenders@strataenergyservices.com.au and we will walk you through it.
Sources
.png)
