Information on electricity licensing exemptions for sellers and suppliers

Anyone supplying, selling, generating or transmitting electricity in Victoria must hold an electricity licence granted by us, or be exempt from that requirement.

What are licensing exemptions and embedded networks?

A licensing exemption is needed by anyone (people or businesses) who want to sell or supply electricity to a particular area, like an apartment block, caravan park or retirement home. These people are exempt from our electricity licensing requirements, but may need to register with us as an ‘exempt person’.

This is because the Victorian Government has made changes to the General Exemption Order (a document that provides the regulatory framework for electricity licensing exemptions). Use the information in this section to determine how to make sure you comply with Victoria's electricity licensing and exemptions regulations.

Regardless of if you charge your tenants for metered or unmetered electricity without holding a licence, you need an exemption from the Essential Services Commission. A condition of your exemption is that join the Energy and Water Ombudsman's dispute resolution scheme.

If you operate the electricity for an apartment building, caravan park or retirement village but you have a licencing exemption, you are an exempt seller.

What are my obligations as an exempt person? 

Even if you are exempt from holding electricity licence you must still comply with the relevant obligations. This is to ensure that customers of exempt electricity sellers and suppliers have similar protections to other Victorian electricity customers.

We have identified which obligations in the Energy Retail Code will apply to different exemption categories from 1 January 2019. Find out more about the obligations as part of our Energy Retail Code review 2018 (obligations for exempt sellers).

We're reviewing the maximum price for embedded networks

There is a maximum pricing rule under the General Exemption Order that caps the tariffs embedded network operators and exempt persons can charge customers. You can find out more about the current maximum embedded network tariffs.

We are currently reviewing maximum prices embedded networks and other exempt sellers may charge, and have made a draft decision.

Our draft decision proposes that from 1 September 2020 Victorian Default Offer prices will be the new maximum price for all households and most businesses in embedded networks.

We have sought stakeholder feedback on our draft decision and held an online public forum in June. We will release our final decision in July 2020.

Embedded network register

Majority of people selling/supplying electricity through an embedded network need to be registered with us for an electricity licensing exception.

If you are running an embedded network or if your apartment building or shopping centre has 10 or more residences/tenants, you need to be registered.

All caravan parks, holiday parks, residential land lease parks, manufactured home estates and retirement villages with an embedded network must register with us, regardless of how many customers reside at the site.

Check if you need to register

You may qualify to register for an electricity licence exemption if you fall into one of the following exemption categories. Make sure you read our Registration Guideline for Exempt Persons to confirm you have identified the correct category.

If you don't fall into any of these exemption categories, you need to apply to us for an electricity licence.

What activities need registering

You may need to register with us for a licensing exemption if you are involved in:

• network (supply) activities
• retail (selling) activities
• solar power purchase agreement providers and community energy projects may also be covered under a ‘multiple activity exemption’ category.

You may also need to register for an exemption if you: 

• sell or supply electricity through an embedded electricity network
• purchase electricity (from a licensed retailer) that is sold to customers who are individually metered.

This exemption category includes people who supply or sell electricity through a third-party service provider or agent.

If you are undertaking an activity that falls in a registration category you must register via the self-service portal.

You can search for your address here to see if you’re on an embedded network.

Network not registered?

Notify us about embedded networks that may not be registered: exemptionregister@esc.vic.gov.au.  

What do I do if I fall into the 'registration exemption' category?

You must become a member of an approved dispute resolution body. We have approved the Energy and Water Ombudsman (Victoria) as a dispute resolution scheme for electricity licensing exemptions. Note, this does not apply to solar power purchase agreement providers, community energy projects or generators that are exempt under the General Exemption Order (a key document related to electricity licensing exemptions).

Also ensure you register with us for a licensing exemption (if you are eligible to register).

If you are exempt electricity seller, you must comply with the relevant clauses of the Energy Retail Code.

If you are an exempt electricity supplier, you must also comply with clause 1.3.5 of the Electricity Distribution Code.

Some embedded networks may not need to be registered

If there are less than 10 residences/tenants, you may still be sold and supplied electricity via an embedded network. However, the seller and supplier are not required to register with us. Even if they are not on the register, they still need to abide by rules that protect your consumer rights.

Deemed exemption

If you fall into this category, you don't need to register with us for a licensing exemption. However, you still need to comply with the General Exemption Order (a key document related to electricity licensing exemptions).

You may fall into the deemed exemption category if you are a business or person that:

• sells or supplies metered electricity to fewer than 10 small commercial/retail customers
• sells or supplies metered electricity to fewer than 10 residential customers, or to occupants of holiday accommodation on a short-term basis (this excludes retirement villages, caravan parks, holiday parks, residential land lease parks, and manufactured home estates. If you fall into one of these excluded areas, read our Registration Guideline for Exempt Persons for more information)
• temporarily sells or supplies electricity on construction sites
• sells or supplies electricity to a related company (for example, a parent company selling electricity to a subsidiary company)
• sells or supplies electricity ancillary to telecommunication services, such as data centres.

You may also fall into the ‘deemed exemption’ category if you are a government agency selling or supplying metered electricity to non-residential customers for purposes that are ancillary to their primary functions or objectives under the laws under which they are established.

What you need to do if you fall into the 'deemed exemption' category

You must become a member of an approved dispute resolution body. We have approved the Energy and Water Ombudsman (Victoria) as a dispute resolution scheme for electricity licensing exemptions. Note, this does not apply to solar power purchase agreement providers, community energy projects or generators that are exempt under the General Exemption Order (a key document related to electricity licensing exemptions).

If you are are exempt electricity seller, you must comply with the relevant clauses of the Energy Retail Code.

If you are an exempt electricity supplier, you must also comply with clause 1.3.5 of the Electricity Distribution Code. 

Multiple activity exemption

You may fall into this category if you generate or distribute electricity on:

• a site you don't own or occupy
• a portion of a site that you occupy (but don't own) for the purpose of generating and distributing electricity.

 You may also fall into this category if you supply or sell electricity: 

• to the owner or occupier of the premises on which the generation occurs
• to a licensed retailer.

What you need to do if you fall into the 'multiple activity exemption' category

You must register with us for a licensing exemption and comply with the conditions of your exemption as shown in the General Exemption Order (a key document related to electricity licensing exemptions).

Contact us if you have questions

If you're not sure if you qualify for an exemption, email us at exemptionregister@esc.vic.gov.au.