Retail exemptions

Under the Retail Law, a person usually must hold a retailer authorisation in order to sell energy.

However, there are some situations where a retailer authorisation is not necessary or appropriate, and a person selling energy may be exempt from the requirement to have an authorisation. This may include situations such as:

• Retirement villages where an owner or manager buys electricity from an authorised retailer, and then ‘onsells’ it to tenants living in the village;
• Caravan parks (or holiday parks) where an owner or manager buys electricity from an authorised retailer, then ‘onsells’ it to tenants;
• Bodies corporate/owners’ corporation who buy electricity from an authorised retailer, then ‘onsell’ it to tenants or occupiers.

These situations are often known as ‘exempt selling’ or ‘onselling’. People engaging in such activities may be eligible for a retail exemption. The AER administers retail exemptions.

If you also own, operate or control a privately owned network, you may also need an exemption from the requirement to register with the Australian Energy Market Operator (AEMO). These are also administered by the AER. The AER's Electricity NSP Registration Exemption Guideline  contains more information on these network exemptions, including a full list of the classes of network exemption available.

The AER's Exempt Selling Guideline sets out the AER’s approach to retail exemptions, including a full list of the types of activities which are exempt from the requirement to hold a retailer authorisation.

The guideline explains that there are three different types of retail exemptions: 

• Deemed exemptions
• Registrable exemptions
• Individual exemptions

The Guideline will help you determine if you are eligible for a retail exemption and what you have to do to obtain a retail exemption.

Deemed exemption

If you are eligible for a deemed exemption, you do not need to apply to the AER. Instead, you are ‘deemed’ to fall within a particular class of exemption. However, you still need to abide by the conditions attached to the relevant class of exemption. The Guideline sets out these conditions.

Registrable exemptions

If you are eligible for a registrable exemption, you do not need to apply to the AER, however, you must fill out the registration form (below) and send it to the AER. Once you have done this, and we have placed your details on the public register, your exemption will come into force. You will need to abide by the conditions attached to the relevant class of registrable exemption. The Guideline sets out these conditions.

Individual exemptions

If your activities do not fall into one of the AER’s classes of exemption (that is, not a deemed or registrable exemption), you may apply to the AER for an individual exemption to cover your activities. Individual exemptions are tailored to specific situations, with conditions attached to the exemption where necessary (the AER will decide on any appropriate conditions when assessing your application). The Guideline contains information on how to apply for an individual exemption. We recommend that you contact the AER to discuss your specific circumstances if you are considering applying for an individual exemption. If you successfully apply for an individual exemption, you will be included on the AER’s public register. If you are eligible for a registrable retail exemption and a registrable network exemption, you only have to complete one form.