Energy Retail Authorisation

Energy Retail Authorisations
The Energy Retail Experts

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How We Do It

Below is a list of some of the key components of an energy retail authorisation application.

The public facing application document is actually one of the easiest documents to prepare. The application document simply needs to cover those areas that are set out in the AER’s guideline on retail authorisations. We have an in-house designer who will work with you to ensure that your public facing documentation looks professional and portrays the brand that you are seeking to develop. As part of the application process, your application document will be published and individuals will be able to submit their views on your application through the public consultation period that runs for one month. Should you receive any submissions, we will work with you to formulate an appropriate response.

The Business Plan

We work with you to develop a comprehensive and well structured business plan that will be reviewed by the AER. As part of your business plan, we can help you develop a comprehensive financial model that includes the various fixed costs of setting up and running an electricity retailer. Our financial model includes balance sheet and profit and loss analysis. You can then use our financial model and amend it over time to reflect the performance of your business.

Compliance and Risk Management Plan

Compliance and Risk Management are two of the most important areas of your retail authorisation application. We have extensive experience and understanding of the regulator obligations of an out to sea retailer operating in the NEM. As a result, we can supply you with a vast array of resources including checklists and guidelines covering virtually every aspect of energy retail operations including, for example billing, customer complaints, customer hardship, disconnection and reconnection with, with and market retail contract requirements.

Third Party Involvement

All applications must include a declaration from an independent accountant or auditor stating that they believe that your business will be able to fund its energy retail activities and stating that they are not aware of any solvency concerns.

Applications are also required to include the results of an independent audit of assurance of your compliance and risk management documentation.

We are able to introduce you to potential third-party providers of the above declarations and of services and products that you will require when operating as an energy retailer.

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Obtaining an Energy Retail Authorisation?

When it comes to obtaining an energy retail authorisation in Australia, we are the experts. Over three consecutive years, we have been responsible for approximately 75% of the retail authorisation applications lodged. We have a 100% success rate when it comes to obtaining energy retail authorisations.

Obtaining an energy retail authorisation is not easy. You will need to prove to the AER that you have the requisite level of technical expertise, access to systems and processes, understanding of the energy market, understanding of regulatory compliance, and access to sufficient capital to fund your energy retail business. There are three entry criteria that must be satisfied and they are:

Organisational and technical capability: meaning that you have the necessary organisational technical capability to meet the obligations of an energy retailer.

Financial resources: meaning that you have resources or access to resources required to ensure that you can conduct a financially viable energy retailer.

Suitability: meaning that the applicant is a suitable person to hold an energy retail author patient.

The application document itself must be consistent with the AER’s retail authorisation guideline. The application document can run up to 800 pages including a comprehensive and well structured business plan and a large number of documents that set out the processes and procedures you will follow to ensure compliance with applicable regulatory obligations.

What are the common pitfalls?

The two areas that prospective retailers typically struggle with are

a) having access to sufficiently qualified and experienced staff to conduct retail operation. Here we able to work with you to either recruit the individuals you require or to find suitably qualified consultants to provide those services on a contract basis.

b) having access to sufficient capital to run a retail business. Here we are able to give you guidance on the level of capital that you will require. We get to assist you by developing investor documentation and by introducing you to potential investors in some circumstances.

The energy market is an exciting and dynamic market with opportunities for innovative businesses seeking to make a positive difference for both consumers and the environment.

What We Do

We’re able to handle all aspects of an energy retail authorisation application including discussions and correspondence with the regulator, engagement with consultants, drafting the application document itself, and seeing the application through to successful approval.

Our Engagement Model

If you are ready for a proposal for us to obtain a retail authorisation on your behalf we will send you a document setting out the services that we will provide. We charge a fixed fee that is partly based on success. We also offer a Compliance Manager service, i.e, we can act as your external compliance manager and manage complex regulatory obligations on your behalf.