Some people or businesses who sell or supply electricity are exempt from our electricity licensing requirements. These people may need to register their exemption with us.
Information on electricity licence exemptions for sellers and suppliers
Overview
Anyone supplying, selling, generating or transmitting electricity in Victoria must hold a licence granted by us, or be exempt from that requirement.
What are licensing exemptions and embedded networks?
In Victoria, if you are engaged in the generation, supply, sale, transmission, or distribution of electricity, or the sale or supply of natural gas or operation of a natural gas distribution pipeline, you need a licence from the Essential Services Commission (the commission).
It is prohibited to engage in these activities without a licence unless you have either been specifically granted an exemption or are eligible for a general exemption.
Certain activities related to the small-scale sale, supply and generation of electricity are eligible for a general exemption from licence requirements under the provisions the General Exemption Order 2022 (GEO 2022). While people covered by the GEO 2022 may be exempt from the legal requirement to have a licence, this does not mean that they are exempt from regulation.
Key changes in the General Exemption Order 2022
In October 2018, the Victorian Government announced an election commitment to restrict embedded networks in new residential apartment buildings, with limited exemptions.
The GEO 2022 implements phase one of the reforms, restricting the sale of energy in relation to the new embedded networks (where there are 10 or more residential customers) unless the exempt person can meet specific conditions, including a new renewable energy condition.
Persons who are undertaking sale in relation to an embedded network pursuant to an exemption under the GEO 2017 will not, however, need to comply with the renewable energy condition, as this only applies to new embedded networks as of 1 January 2023.
The GEO 2022 requires that electricity sold or supplied by an exempt person, including new embedded networks which have to meet the new renewable energy condition, must not exceed the Victorian Default Offer which is the relevant maximum price formulated by the commission.
The GEO 2022 also exempts persons that sell or supply electricity for the purposes of charging an electric vehicle from having to obtain a licence.
The GEO 2022 commenced on 1 January 2023. From 1 January 2023, anyone relying on an exemption under the GEO 2022 will be responsible for ensuring they register with the commission (if applicable) and comply with any application conditions.
Transitional provisions under the GEO 2022 give certainty to existing exemption holders that their exemptions under the GEO 2017 will continue to apply.
Additional information about the changes is included in this Department of Energy, Environment and Climate Action fact sheet.
New renewable energy condition
The new renewable energy condition requires that 100 per cent of electricity sold by an exempt person at a new embedded network site, with 10 or more residential customers, must come from renewable energy sources.
The condition requires that at least five per cent of the electricity sold to residential customers must be generated using onsite renewable energy facilities and that the balance is covered by offsite renewable energy.
An exempt person at a new embedded network must keep records of the following for at least seven years and provide a summary of this information to the commission annually:
- the amount of electricity supplied to that new embedded network from a licensed distribution company’s distribution system;
- the amount of electricity supplied to that new embedded network that is generated by means of that new embedded network’s onsite renewable energy facilities;
- the amount of electricity the exempt person sells to residential customers in that new embedded network including the amount of that electricity that is generated by means of that new embedded network’s onsite renewable energy facilities;
- any qualifying LGCs voluntarily surrendered by the exempt person;
- any voluntary surrender arrangement; and
- any GreenPower arrangement.
We have published templates on our website to assist relevant exempt persons with providing information in the required format to meet these reporting obligations.
Electric vehicle (EV) charging stations
The sale or supply of electricity from EV charging stations is now covered by deemed exemption categories in the GEO 2022.
Each year on or before 31 March, such deemed exempt persons must provide information to the commission. Please see the 'Reporting obligations' section for more information.
What are my obligations as an exempt person?
Even if you are exempt from holding an electricity licence, you must still comply with obligations that are applicable to your category of exemption/s. This ensures customers of exempt electricity sellers and suppliers have similar protections to other Victorian electricity customers.
Some sale and supply activities covered by the GEO 2022 require exempt persons to comply with either the provisions of the Energy Retail Code of Practice or the Electricity Distribution Code of Practice that are specified by the commission. In addition, all persons eligible for the general exemptions must comply with other conditions specified in the GEO 2022.
The commission has published the Registration Guideline for Exempt Persons, which has been updated to reflect the GEO 2022, to assist you with understanding your obligations on matters such as:
- registering your exemption with the commission
- joining the commission's approved customer dispute resolution scheme - Energy and Water Ombudsman (Victoria)
- maximum pricing rules
- provision of information requirements
- disconnection rules.
We have also developed a range of documents to assist in the operation of your embedded network including sample bills, a disconnection warning notice, and service agreement templates.
Reporting obligations
Retail exemptions listed in Table 2 of Division 1 of the GEO 2022, some EV charging stations, and VR2 exemptions for new embedded networks have annual reporting obligations.
What data and information must be reported depends on whether:
- the exemption category is listed in Table 2 of Division 1 of the GEO 2022
- the exemption category is a VD8 EV charging exemption
- the exemption category is a VR2 exemption for a new embedded network as defined in the GEO 2022.
Please refer to the GEO 2022 to determine whether reporting obligations apply to any exemptions you hold.
Reporting templates are found below and in the resources tab. Please complete the appropriate template that applies to your exemption/s.
Data is to be supplied on an annual basis on or before 31 March for the previous calendar year.
Please submit completed templates to exemptionregister@esc.vic.gov.au.
Exempt persons with a retail exemption listed in Table 2 of Division 1 of the GEO 2022 have annual reporting obligations. Please complete this template if this applies.
(XLSM, 101.54 KB)
Exempt persons with a VD8 deemed exemption (a person selling metered or unmetered electricity that is used by the customer to charge an electric vehicle) have annual reporting obligations under the GEO 2022. Please complete this template if this applies.
(XLSM, 89.05 KB)
Exempt persons with a VR2 exemption for a new embedded networks have annual reporting obligations under the GEO 2022. Please complete this template if this applies.
The template contains the definition of a new embedded network in the ‘instructions’ tab.
Note: Reporting on VR2 exemptions for existing embedded networks should be completed in the Division 1 reporting template instead.
(XLSM, 121.02 KB)
Embedded network register
The majority of people selling/supplying electricity through an embedded network need to register with us for an electricity licence exception.
Embedded electricity networks such as apartment buildings or shopping centres with 10 or more residential customers or commercial tenants need to be registered.
All caravan parks, holiday parks, marinas, residential land lease parks, manufactured home estates and retirement villages with an embedded network must register with us, regardless of how many customers are located 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 do not fall into any of these exemption categories, you may need to apply to us for an electricity licence.
What activities need registering
Deemed exemptions are automatic and do not need to be registered with the commission.
Registration exemptions require the person undertaking the activity to apply to register their exemption with the commission as a condition of the exemption.
You may need to register with us for a licence 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.
We aim to process 90 per cent of completed exemption registration requests within five business days of receiving the request.
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 licence 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 2022.
Also ensure you register with us for a licence 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 of Practice.
If you are an exempt electricity supplier, you must also comply with the relevant clauses of the Electricity Distribution Code of Practice.
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 exemptions
If you fall into this category of exemption, you do not need to register with us for a licence exemption. However, you still need to comply with the GEO 2022.
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
- sells or supplies electricity that is used to charge an electric vehicle.
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
Most exempt persons which are eligible for a ‘deemed exemption’ are required to become a member of the commission's approved dispute resolution body. We have approved the Energy and Water Ombudsman (Victoria) as a dispute resolution scheme for electricity licence exemptions. The GEO 2022 specifies which exemption categories must comply with this condition. You are not required to be a member of the Energy and Water Ombudsman (Victoria) if you are selling or supplying electricity at an electric vehicle charging station.
Exempt persons must comply with the relevant clauses of the Energy Retail Code of Practice and the Electricity Distribution Code of Practice.
Multiple activity exemption
You may fall into this category if you generate or distribute electricity on:
- a site you do not own or occupy
- a portion of a site that you occupy (but do not 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 licence exemption and comply with the conditions of your exemption as shown in the GEO 2022.
Contact us if you have questions
If you have any queries about electricity licence exemptions, email us at exemptionregister@esc.vic.gov.au.
If you fall into the 'registration' or 'deemed' exemption categories, you must become a member of an approved dispute resolution body (note: this does not apply to the multiple activity exemption). We have approved the Energy and Water Ombudsman (Victoria) as a customer dispute resolution scheme.
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1 January 2023
This guideline outlines the information we ask exempt persons to provide when registering with the commission and reflects the new requirements of the General Exemption Order 2022. It also provides detail on who is and is not required to register, why exempt persons are required to register, and how to register.
This guideline comes into force on 1 January 2023.
(pdf, 435.68 KB)
Resources
1 January 2023
This guideline outlines the information we ask exempt persons to provide when registering with the commission and reflects the new requirements of the General Exemption Order 2022. It also provides detail on who is and is not required to register with the commission, why exempt persons are required to register, and how to register.
This guideline came into force on 1 January 2023.
(pdf, 435.68 KB)
If you fall into the 'registration' or 'deemed' exemption categories, you must become a member of an approved dispute resolution body (note: this does not apply to the multiple activity exemption). We have approved the Energy and Water Ombudsman (Victoria) as a customer dispute resolution scheme.
(, )
If your embedded network electricity retailer goes out of business, there are steps you can take so your electricity supply is not affected.
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Exempt persons with a retail exemption listed in Table 2 of Division 1 of the GEO 2022 have annual reporting obligations. Please complete this template if this applies.
(XLSM, 101.54 KB)
Exempt persons with a VD8 deemed exemption (a person selling metered or unmetered electricity that is used by the customer to charge an electric vehicle) have annual reporting obligations under the GEO 2022. Please complete this template if this applies.
(XLSM, 89.05 KB)
Exempt persons with a VR2 exemption for a new embedded networks have annual reporting obligations under the GEO 2022. Please complete this template if this applies.
The template contains the definition of a new embedded network in the ‘instructions’ tab.
Note: Reporting on VR2 exemptions for existing embedded networks should be completed in the Division 1 reporting template instead.
(XLSM, 121.02 KB)