What is Embedded
Embedded electricity networks are privately owned and managed electricity networks that often supply all premises within a specific area or building. Embedded networks generally buy electricity in bulk and then on-sell it to customers inside their network at a competitive rate.
An embedded network operator or retailer manages the network on behalf of the owners corporation and tenants and looks after customer service and billing. Some networks are run by retailer centers or private developers.
Most embedded networks must register with the ESC for a network and/or retail licence exemption. Embedded networks must also comply with relevant obligations in industry codes that the ESC and the Australian Energy Regulator (AER) administer. All embedded networks must be members of the Energy and Water Ombudsman (Victoria) (EWOV).
There are around 600,000 meters in Embedded networks today and the market is growing at around 60 - 75K per annum through new greenfield developments or brownfield conversions as multi occupancy sites convert to embedded networks.
Typical embedded networks sites require REC works when converted, have electricity, water and gas metering and renewable infrastructure such as solar and hot water plants. More and more we are seeing the addition of battery and EV. Embedded networks are well placed to drive large and rapid roll out of renewable conversion.
We started with a single customer 18 months ago and spent some time building out our systems, team and processes to be able to compete in this market. To do this we engaged deeply with customers and have harnessed their insight to enrich their experience.
A large scale transformation project was completed after 6 months with over 250 capabilities developed to support the delivery of our value proposition and customer promises. This included custom systems, default contracting, large scale automation, digitization, new order forms, new QA processes etc.
We started with a focus on greenfield electricity and winning and proving ourselves through the delivery of our core metering offer which was based on reliable and consistent delivery at every stage of the journey. This was underpinned by our 5 core promises each with three key proof points. See our embedded site here to learn more.
We set about winning customers and proving ourselves and have built a base of 30 customers now as a strong platform for organic growth. We have also grown our meter portfolio from 50K to over 200K which includes the purchase of the 120K WIN Connect and Choice Metering embedded portfolios.
We have also added a brownfield services, wired water solutions to our product mix, CT sales and REC works as a service and have started investing in Solar, EV and Hot Water Boiler infrastructure with select customers, all to grow revenue and value for customers.
We have a strong focus on 6 key areas to keep growing with a dream to grow our portfolio to 500K meters in 5 years through organic growth, product and market expansion and further alliance, partnership and acquisition opportunities.
Our 6 "Big Rocks" are:
Onboard new customers - Finalise contracts and onboard ASENO, Energy On, Real Utilities and Energy Australia among others we will chase.
Grow value added services - Offer RE EN DE EN services (Manual first then remote) and build and launch an energy management portal. Both are strong value added revenue opportunities and things customers want and need.
Deliver Project Berlin (Integration of WIN and Choice meter fleets) - Deliver agreed Berlin program incl WA set up, replacement and reprogramming of 30K meters & integration of Secure Meters/MDP. Secure meters/MDP can reduce significant costs and having a second meter de-risks us as we only use EDMI. Secure meters also offer the ability to save significant installation costs as it is a wireless solution and preferred by many Embedded Operators in order for them to use us.
Build water capability - Build end to end water metering capability solution to grow share and compete in EN market including wireless pulse and ultrasonic metering and reliable MDM and workflow system as not currently supported in OFSC, IWS and OUMSC. Water is large untapped opportunity in this market.
Find other ways to grow - Pursue opportunities for acquisition & infrastructure financing outside current model. There are lots of opportunities to chase here.
Grow in new states - Leverage Berlin capability to compete in WA and win new customers in TAS.