Who must hold AER authorisation as energy retailer?
The applicability test for Hold AER authorisation as energy retailer (AER), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies when the business has energy retailing.
What the obligation is
Selling electricity or gas to small customers requires AER retailer authorisation.
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.
The applicability test
Applies when the business has energy retailing.
How the regulator frames it: 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.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: no).
The answer is the same in every industry: no. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "no".
Size does not change the answer across all industries: at every size band the answer is "no".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires energy retailing.
What you must do, and when
- 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.
- Frequency
- Ongoing
- Evidence to keep
- 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.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum 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)
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Enforcement examples
Where it sits in the corpus
Rules Mate tracks 6 published obligations tagged "energy", 3 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Energy Regulator.
AER: National energy market regulator — electricity + gas networks, retail authorisations, wholesale markets.
Free tools that help with this obligation:
Questions
- Who must hold AER authorisation as energy retailer?
- Applies when the business has energy retailing.
- Do sole traders need to hold AER authorisation as energy retailer?
- No. Across every industry and every size band, the engine's answer for a sole trader is: no.
- Do businesses with 1–5 employees need to hold AER authorisation as energy retailer?
- No (1–5 employees, turnover $100K–$1M).
- When is "Hold 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.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.