Embedded Network Operators are currently ripping hundreds of thousands of dollars from residents living in apartments across Australia, due to a failure of governments to regulate this industry.
The Member for Castle Hill, Ray Williams MP, was shocked when he learnt of local constituents living in Kellyville, being charged thousands of dollars for the heating of bulk hot water by Embedded Network Operator WINconnect.
Mr Williams said “This shonky system has been allowed to operate across this country for years and must be regulated immediately to protect consumers. We currently have individuals being charged for their water by Sydney Water, and then charged again for the “heating” of their water by WINconnect”
“One resident in Kellyville has been charged $10,000 over a 20 month period for heated water, which is nothing short of extortion.”
Mr Williams said, “I could boil a kettle and provide enough hot water for a standard apartment for less than $10,000.”
WINconnect provide electricity and gas to apartments, and on top of this they have devised a devious plan of charging residents excessive amounts of money to also heat their water.
Mr Williams went on to say “Embedded Network Operators like WINconnect ought to be ashamed of their greedy display of overcharging for heated water.”
1st tier energy providers such as Origin Energy have also recently recognised the lucrative financial benefit of these rorts, and are now purchasing energy providers such as WINconnect.
Mr Williams said “At a time when governments are focussing on lowering energy prices, Embedded Networks are milking the system and forcing prices sky-high. It’s currently a licence to print money, with an estimated 500,000 customers nationally already trapped in the Embedded Networks system.”
NCAT has said “the way a bulk hot water service is metered does not appear to meet the requirements of the Residential Tenancies Act.”
The Australian Energy Market Commission states, “in the AER retail guidelines the sale of bulk hot water cannot be considered a ‘sale of energy.” They say “the current exemption framework suffers from an inadequate compliance and monitoring regime and it is therefore likely that consumers are paying high or inaccurate bills for hot water because of these external factors.”
Mr Williams asks “If these regulatory bodies have known about these gaps in Legislation, then why has nothing been done about it to protect customers?”
“It’s time for all Governments to step up and regulated this shonky industry.”
“Unfortunately without the proper regulations, we will only see Embedded Network Operators become more brazen in the rorts they pull off”.
Mr Williams concludes that “This is a responsibility for both Federal and State Governments and it is now time they work together to provide the necessary regulatory and legislative framework that stops Australians being ripped off thousands of dollars a year by Embedded Networks.”
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