On-sellers purchase electricity or gas supplied from the main network or grid and sell it to consumers in a privately-owned and operated network, usually called an embedded network.
There are two types of embedded networks for electricity supplies, multi property networks (MPNs) and single property networks (SPNs).
Multi property networks (MPNs) are licenced under the Electricity Industry Act 2004 and must hold an electricity licence with the Economic Regulation Authority.
On-sellers that on-supply electricity and gas in single property networks (SPNs) are exempt from the requirement to hold a retail, distribution and or transmission licence under certain conditions.
However, the rules to supply electricity in SPNs are changing soon. SPNs will be regulated under the Alternative Electricity Services (AES) framework from mid-2027.