As part of the Victorian Government’s implementation of the Embedded Networks Review, recent changes have been made to the way gas embedded networks are regulated in Victoria.
There are many embedded gas networks operating in Victoria, in multi-tenancy or shared ownership sites such as apartment buildings, shopping centres, caravan parks, retirement villages, office blocks, airports or transit hubs, and business parks.
Gas licence exemptions Victoria
The Gas Embedded Networks Exemption Order 2025 (GEO) exempts those who provide services, by means of a distribution pipeline to customers within an embedded network, from the need to hold a distribution licence if they were in operation on 25 February 2025 or earlier (exempt distributor). The GEO remains in force until 30 June 2031.
If you started supplying gas after 25 February 2025, you will need to apply for a licence or specific exemption.
If you sell gas to retail customers within an embedded network, you still need to obtain a licence from the Essential Services Commissioner under the Gas Industry Act 2001.
What is the difference between supplying and selling gas?
In an embedded network, supplying gas relates to the distribution infrastructure within the embedded network. The owner or operator of this network may recoup costs for providing this infrastructure to consumers through the bill.
The sale of gas means gas sold to a consumer by a licenced gas retailer.
Example
An owners’ corporation operates an embedded network in an apartment building with a common gas connection. Each apartment has access to shared gas for cooking provided by the gas meter at the building connection, rather than each apartment having a meter for gas. The owners’ corporation is supplying gas through the pipes it owns in the site, but is not selling the gas directly to the consumers.
The licenced gas retailer will charge consumers for their usage, including the cost of supplying through the embedded network and distribution charges to the parent meter.
What are the new protections for consumers in gas embedded networks?
These changes provide consumers in gas embedded networks in Victoria with additional protections, similar to the existing protections available for consumers in electricity embedded networks. Exempt distributors must:
- become a member of the Energy and Water Ombudsman Victoria (EWOV) to ensure consumers have access to free and independent dispute resolution in gas embedded networks if they have an issue they can't sort out with their exempt distributor
- meet key applicable consumer protection requirements outlined in the Gas Distribution Code of Practice as set out by the Essential Services Commission
- not exceed the regulated cost of gas meter abolishment where consumers seek to electrify their homes
- meet key information provision requirements and reporting to the Essential Services Commission.
The Essential Services Commission is responsible for making sure providers are complying with consumer protection requirements. Specific gas distribution network operator reporting requirements will also apply. Visit the Essential Services Commission website for more information.
How do I join EWOV?
Visit the Joining EWOV page for more information about how to become a member.