Hold AER authorisation as energy retailer
Selling electricity or gas to small customers requires AER retailer authorisation.
Who must comply
Any person or business selling electricity or gas by retail to customers in Queensland, New South Wales, the ACT, Tasmania or South Australia, unless covered by an AER retail exemption. Authorised retailers carry the ongoing Retail Law obligations.
What triggers it
Engaging in the retail sale of energy in a National Energy Customer Framework jurisdiction, or applying for, transferring or surrendering a retailer authorisation.
When due
Authorisation must be held before retail sales begin. Ongoing obligations apply for as long as the authorisation is held: the customer hardship policy must be AER-approved and maintained, and performance reporting metrics must be supplied to the AER as required.
Evidence required
AER retailer authorisation (on the public register); application evidence of organisational and technical capacity, financial viability and suitability, with the AER checklist and declarations; approved customer hardship policy and records of its application; retail performance reporting returns; compliance records under the AER's Compliance Procedures and Guidelines.
Max penalty
For conduct on or after 1 July 2026, a body corporate breaching a Tier 1 civil penalty provision of the Retail Law faces the greater of $12,390,000, 3 times the benefit obtained, or (if the benefit cannot be determined) 10% of annual turnover; Tier 2 up to $1,778,000 and Tier 3 up to $210,600, plus daily amounts for continuing breaches (AER civil and criminal penalty indexation, NERL s 4A). Natural persons: up to $619,500 (Tier 1)
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Under the National Energy Retail Law, a person or business that engages in the retail sale of electricity or gas needs a retailer authorisation issued by the Australian Energy Regulator (AER), unless it is an exempt seller under an AER retail exemption. The AER regulates retail energy markets in Queensland, New South Wales, the ACT, Tasmania and South Australia, the jurisdictions that have adopted the National Energy Customer Framework; Victoria, Western Australia and the Northern Territory are outside that framework. To be authorised, an applicant must show organisational and technical capacity, financial resources and viability, and suitability to be a retailer, assessed under the AER's Retailer Authorisation Guideline. Once authorised, a retailer must meet the Retail Law and Rules, including an AER-approved customer hardship policy for residential customers in payment difficulty, and supply performance data to the AER.
Enforced by
Source legislation
Topics
Related
- CWLTHGEMS (Greenhouse + Energy Minimum Standards)Regulated products must meet energy efficiency MEPS + display label.
- CWLTHDesign and Distribution Obligations (DDO) — RG 274Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
- CWLTHNGER reporting (Clean Energy Regulator)Threshold-triggered annual emissions, energy production + consumption reporting.
- CWLTHSafeguard Mechanism baseline decline 4.9% paAustralia's 215 largest emitters face declining baselines under Safeguard Mechanism reform.
- CWLTHConsumer Credit Hardship Notice (NCC ss 72-73)Credit providers must respond to hardship notice + assess variation request.
- CWLTHRegister with AEMO for National Electricity Market participationGenerators + retailers + market participants must register with AEMO and meet NER obligations.
Reading
Frequently asked questions
- Who must comply with AER authorisation as energy retailer?
- Any person or business selling electricity or gas by retail to customers in Queensland, New South Wales, the ACT, Tasmania or South Australia, unless covered by an AER retail exemption. Authorised retailers carry the ongoing Retail Law obligations.
- What triggers AER authorisation as energy retailer?
- Engaging in the retail sale of energy in a National Energy Customer Framework jurisdiction, or applying for, transferring or surrendering a retailer authorisation.
- When is AER authorisation as energy retailer due?
- Authorisation must be held before retail sales begin. Ongoing obligations apply for as long as the authorisation is held: the customer hardship policy must be AER-approved and maintained, and performance reporting metrics must be supplied to the AER as required.
- What is the maximum penalty for AER authorisation as energy retailer?
- For conduct on or after 1 July 2026, a body corporate breaching a Tier 1 civil penalty provision of the Retail Law faces the greater of $12,390,000, 3 times the benefit obtained, or (if the benefit cannot be determined) 10% of annual turnover; Tier 2 up to $1,778,000 and Tier 3 up to $210,600, plus daily amounts for continuing breaches (AER civil and criminal penalty indexation, NERL s 4A). Natural persons: up to $619,500 (Tier 1)
- What evidence is required for AER authorisation as energy retailer?
- AER retailer authorisation (on the public register); application evidence of organisational and technical capacity, financial viability and suitability, with the AER checklist and declarations; approved customer hardship policy and records of its application; retail performance reporting returns; compliance records under the AER's Compliance Procedures and Guidelines.
Source: https://www.aer.gov.au/industry/retail/authorisations. Rules Mate is not a law firm. Always verify against the live regulator source before acting.