On 18 April 2019, the AEMC made a final rule to recognise exempt sellers in the National Gas Rules, allowing them to participate in various east coast gas retail markets. 

Under the final rule, an exempt seller under the National Energy Retail Law (NERL):

• Will be able to register as a 'self contracting user' if they are only selling gas to related businesses in the NSW-ACT, Queensland and South Australian retail gas markets
• Will be able to register as a 'retailer' if they are selling gas to third parties in the NSW-ACT, Queensland and South Australian retail gas markets
• Would be able to register as a 'market participant - retailer' if they are selling gas to third parties in the Victorian retail gas market or as a 'market participant - other' if they are only selling gas to related businesses, subject to Victoria's adoption of the NERL.

The final rule will commence on 8 August 2019. This will allow the Australian Energy Market Operator (AEMO) to consult on and make relevant amendments to its retail market procedures consistent with the new rules.

Background

The exempt seller regime in the NERL allows businesses to sell energy to an end user without needing to be authorised as a retailer. The Australian Energy Regulator oversees the retailer authorisation and exempt seller processes.

In addition, if a business wants to participate in a gas retail market, it needs to either register with AEMO as a gas market participant or be exempted by AEMO from registration. Both options require AEMO to allocate the business to one of the registrable capacities set out in the National Gas Rules for the retail market that the business intends to participate in.

AEMO's rule change request proposed changing the National Gas Rules to recognise an exempt seller as:

• a self-contracting user, where the exempt seller is only selling gas to a related business
• a retailer, where the exempt seller is selling gas to an unrelated business.

The AEMC considered that the rule change request should be subject to the expedited rule making process. Written objections to the expedited process closed on 21 March 2019. No objections were received.

Submissions in response to the rule change request and consultation paper were to be submitted by 4 April 2019. Three submissions were received.