The embedded networks collude with the builders and offer them the installation of wiring, air-conditioning, gas, hot water, and sometimes the internet – usually for free – and that happens before the strata comes into the picture. The strata is left with no choice but to inherit a fixed-term contract (typically 3-5 years), after which it can switch to… another embedded network.
The builders accept offers from embedded networks because it reduces their overall costs.
The NSW government has enacted the first tranche of regulations for embedded networks from the 1st of July this year, with the embedded networks price caps being introduced in early 2027 (that is the promise, anyway). If you live in NSW, IPART is the government body in charge of the regulation, and it is accepting submissions until the end of this month. Prepare and make your own submission whilst you can, as I have done.