A tenant opens their electricity bill. The rate looks higher than the deals they have seen online. They ring the strata manager with a simple question. Is the landlord allowed to charge more than the retailer?
For residential customers in an embedded network the short answer is no. Whoever sells the electricity cannot charge more than the standing offer of the local area retailer. In NSW and Victoria that ceiling is getting firmer every year.
The rate is rarely where the real trouble sits. We see far more disputes start with the kilowatt hours underneath the price. A legal tariff applied to an estimated read or the wrong meter still produces an unfair bill.
Key Points
A NSW tenant only has to pay for electricity when the premises is separately metered.
An embedded network seller cannot charge residential customers more than the local area retailer’s standing offer.
Standing offers are capped by the Default Market Offer in NSW, south east Queensland and South Australia and by the Victorian Default Offer in Victoria.
From 1 July 2026 exempt sellers must publish their tariffs and show the discount from the local standing offer.
IPART expects new NSW maximum prices for embedded networks to start in the first half of 2027.
SATEC’s NMI approved EM133-XM and BFM136 gives strata managers billing data along with load profiling that holds up when a tenant asks the question.
Where the Price Ceiling Comes From
Two sets of rules work together here. Tenancy law decides who pays. Energy law decides how much.
Under the NSW Residential Tenancies Act 2010 a tenant pays for electricity only if the premises is separately metered. The meter must measure supply to that premises alone and allow a separate bill. In an embedded network the meter does not need its own National Meter Identifier to qualify.
The price is a different matter. Anyone who on-sells electricity inside a building needs a retail exemption from the Australian Energy Regulator. Under the AER’s Retail Exempt Selling Guideline an exempt seller must not charge a residential customer more than the standing offer price of the local area retailer.
So Can a Landlord Charge More?
Not legally, for a residential customer in an embedded network. A landlord, owners corporation or operator who sells electricity to residents is acting as an exempt seller. The cap applies to them in the same way it applies to a specialist operator.
Here is the part that catches people out. When tenants say “the retailer rate” the rules mean the standing offer. They do not mean the cheapest market deal a tenant can find online. An embedded network price can sit above a discounted market offer and still be within the law.
That gap is exactly why tenants feel overcharged when they are not. It is also why transparency matters so much. From 1 July 2026 the AER requires exempt sellers in the relevant classes to publish their tariffs on a website. Each published price must show its discount from the local standing offer.
What Is Changing in NSW and Victoria
NSW has gone further than the national framework. IPART took on new embedded network functions from 1 July 2026. Embedded network sellers must now belong to the Energy and Water Ombudsman NSW and publish their prices.
The next step is a state price ceiling. IPART expects maximum prices for electricity, gas, hot water and centralised air conditioning in embedded networks to start in the first half of 2027. Those prices remain subject to Ministerial approval.
Victoria already has a firm line. The Essential Services Commission sets the Victorian Default Offer as the maximum price for embedded network customers.
How the Rules Compare
| Situation | Who Bills the Tenant | Price Ceiling |
|---|---|---|
| Apartment on its own retail account | The tenant’s chosen retailer | Market offers set by contract; standing offers capped by the DMO or VDO |
| NSW embedded network (residential) | The embedded network seller | No higher than the local area retailer’s standing offer; IPART maximum prices expected in the first half of 2027 |
| Victorian embedded network (residential) | The embedded network seller | The Victorian Default Offer |
| NSW premises not separately metered | Nobody for usage | The tenant is not required to pay usage charges |
The Real Risk Is the Kilowatt Hours
Most strata managers worry about the rate. In our experience the measurement is the weaker link. A price ceiling only protects a tenant if the consumption underneath it was legally measured.
Meters used to bill residents are used for trade. They must carry NMI pattern approval under NMI M 6-1. A cheap meter without that approval leaves the whole bill open to challenge, however fair the tariff.
The other common faults are quieter. Estimated reads fill gaps in the data. Meters get mapped to the wrong lot during fit out. Tenants move out without a final read. Each one turns a lawful price into a disputed bill. Our guide to meter requirements for embedded network billing in NSW covers the accuracy class and approval rules in detail.
What Strata Managers Should Check Now
Do not wait for the first angry phone call. Before IPART’s caps arrive, confirm a few basics with your embedded network operator.
- The seller holds a current AER exemption and publishes its tariffs.
- Every billing meter is NMI pattern approved for its application.
- Bills are based on actual interval reads rather than estimates.
- Each meter is mapped to the correct lot and checked after any fit out.
If any answer is unclear, treat it as a risk to fix. Our article on multi-tenant submetering in Australia walks through approval and cost allocation in more depth.
How SATEC Supports Fair Tenant Billing
SATEC designs metering for exactly this question. The BFM136 multi-circuit meter is NMI approved under NMI M 6-1 with certificate 14/2/80. It is the only NMI approved multi-circuit monitor in Australia.
One BFM136 monitors up to 36 single-phase or 12 three-phase circuits. That means a full floor of apartments can be metered from a single compact unit in the switchboard. Fewer devices also mean fewer mapping errors.
For larger loads the EM133-XM is an NMI approved Class 0.5S CT-connected meter. Both meters feed Expertpower, our energy management platform hosted on Australian Microsoft Azure infrastructure. Billing reports come from actual interval data rather than estimates.
Residents can check their own usage too. With the eXpertConnect app an approved resident sees their individual submetered consumption. Common area data stays private to the building.
Make Every Bill Easy to Defend
A tenant asking whether a landlord can charge more than the retailer deserves a clear answer. The best answer is a published tariff backed by NMI approved data. Talk to SATEC about metering your building with the BFM136 before the 2027 price caps arrive.
FAQs - Can a Landlord Charge More Than the Retailer Rate for Electricity?
Can a Landlord Add an Admin Fee to a Tenant’s Electricity Bill?
An exempt seller’s charges to a residential customer must stay within the local area retailer’s standing offer. Ask the seller for its published tariff. Then compare it with the local standing offer before accepting any extra fee.
Who Can a NSW Tenant Complain to About an Embedded Network Bill?
Start with the seller and your landlord or strata manager. Embedded network sellers in NSW must now be members of the Energy and Water Ombudsman NSW. NSW Fair Trading and the Tenants’ Union can help with tenancy questions.
Does an Apartment Submeter Need NMI Approval?
Yes, when it is used to bill residents. Billing is trade measurement. The meter must be pattern approved under NMI M 6-1. The SATEC BFM136 and EM133-XM both hold NMI approval.
Is the Price Cap the Same as the Cheapest Deal Online?
No. The cap is the local area retailer’s standing offer, which is usually higher than discounted market offers. An embedded network price can be above a market deal and still be lawful.
