Retailer failure

The Retail Law contains provisions for a national Retailer of Last Resort (RoLR) scheme. The RoLR scheme is designed to ensure that, in the event of a retailer failing (a RoLR event), customers continue to receive electricity and/or gas supply.The AER has certain responsibilities under the RoLR scheme. The AER is required to:

  • register default and additional RoLRs
  • publish and maintain a register of RoLRs
  • appoint designated RoLRs in relation to RoLR events
  • publish RoLR guidelines and RoLR plans
  • conduct RoLR exercises simulating RoLR events
  • make RoLR cost recovery scheme determinations.

Registration and appointment of RoLRs

Under the Retail Law, the AER is required to appoint and register default RoLRs.

The Retail Law also provides that retailers that have submitted an expression of interest may be registered as additional RoLRs. Additional RoLRs may submit firm or non firm offers to take on customers in the case of a RoLR event. A firm offer is an agreement to take on customers, stipulating the number and classes of customers the retailer will take on (and in which jurisdictions), plus any cost recovery arrangements it proposes. A non firm offer does not provide binding terms and conditions, rather it is an indication that the retailer may wish to take on customers in the case of a RoLR event, with terms and conditions confirmed prior to appointment as a designated RoLR.

A retailer who wishes to be registered as an additional RoLR can submit an Expression of Interest (EoI) to the AER. The AER's RoLR Guideline contains further guidance on EoIs, and also specifies the manner and form of information that should be included in a retailer's EoI.

Current tenders for additional and default RoLRs

Further information on current tenders for additional and default RoLRs can be found on the Expressions of Interest and Appointments page.

Register of RoLRs

The AER must maintain and publish on its website a register of RoLRs. The register includes particulars of each retailer, including whether a retailer is registered as a default RoLR or an additional RoLR, and what conditions, if any, apply. The register also shows whether an additional RoLR is registered with a ‘firm’ offer or a ‘non-firm’ offer. The register of RoLRs was last updated on 27 September 2016.

RoLR plan

The AER must develop and maintain a RoLR plan that sets out the procedures to be followed by market participants in a RoLR event, including communication with the customers of the failed retailer. The plan also establishes the scope and frequency of RoLR scheme test exercises for RoLR plan participants.

RoLR notices issued

AER RoLR notice - Elysian Energy Pty Ltd - 1 September 2022 ( PDF 185.34 KB )  | Frequently asked questions - Elysian Energy Pty Ltd ( PDF 228.06 KB )
AER RoLR notice - Social Energy Australia Pty Ltd - 24 August 2022 ( PDF 189.04 KB ) | Frequently asked questions - Social Energy Australia Pty Ltd ( PDF 215.06 KB )
AER RoLR notice - Mojo Power East Pty Ltd - amended 27 July 2022 ( PDF 197.4 KB ) | Frequently asked questions - Mojo Power East Pty Ltd ( PDF 218.29 KB )
AER RoLR notice - Power Club Limited - 12 July 2022 ( PDF 526.31 KB ) | Frequently asked questions - Power Club Limited ( PDF 218.94 KB )
AER RoLR notice - Enova Energy Pty Ltd - 22 June 2022 ( PDF 147.27 KB ) | Frequently asked questions - Enova Energy Pty Ltd ( PDF 90.98 KB )
AER RoLR notice - Weston Energy Pty Ltd - amended 31 May 2022 ( PDF 160.59 KB ) | Frequently asked questions - Weston Energy Pty Ltd ( PDF 60.31 KB )
AER RoLR notice - Pooled Energy Pty Ltd - 24 May 2022 ( PDF 455.53 KB ) | Frequently asked questions - Pooled Energy Pty Ltd ( PDF 83.03 KB )
AER RoLR notice - Flow Systems Pty Ltd - amended 3 May 2019 ( PDF 371.97 KB )
AER RoLR notice - COzero Energy Retail Pty Ltd - 29 June 2018 ( PDF 116.24 KB )
AER RoLR notice - Urth Energy Pty Ltd - 2 February 2017 ( PDF 303.61 KB )
AER RoLR notice - GoEnergy Pty Ltd - gas - amended 13 April 2016 ( PDF 146.53 KB )

RoLR exercises

The AER must conduct regular RoLR exercises with RoLR plan participants. Reports on the conduct of the exercises must be published on the AER website. A RoLR exercise for electricity industry participants was held on 17 June 2015. A report on the conduct of that exercise was published in July 2015. A RoLR exercise for the gas industry was held on 10 November 2015. A report on the gas industry RoLR exercise was published in December 2015.

RoLR exercise reports:

Cost recovery schemes

On application by a registered RoLR the AER must determine a RoLR cost recovery scheme for the RoLR. A RoLR cost recovery scheme is designed to allow a RoLR to recover the costs it incurs in relation to the RoLR scheme. A designated RoLR may recover costs incurred on and after a RoLR event. Under a cost recovery scheme only default RoLRs may recover costs incurred in preparing for RoLR events.

Default RoLR cost recovery applications