The ERA manages and participates in the development of licences for supplies of gas and gas services.

Gas licensing provisions became effective on 22 October 1999. An Amendment Act introduced these gas licensing provisions into the Energy Coordination Act 1994. These provisions, in Part 2A of the Act, apply to gas distribution systems designed to operate at a pressure of less than 1.9 megapascals and to the supply of gas to customers using less than 1 terajoule per year (small use customers).

The Proclamation of Schedule 2, Division 4 of the Economic Regulation Authority Act 2003 transferred the gas licensing function from the Coordinator of Energy to the Economic Regulation Authority effective from 19 March 2004. The Economic Regulation Authority is responsible under legislation for licensing the supply of gas (other than gas workers) within Western Australia.

Gas distribution licences, developed and granted under the Act, provide for the right to operate and maintain gas distribution pipelines within defined areas of the State and also include such conditions as the obligation to connect to residential customers, the obligation to plan for future development of gas distribution systems, performance monitoring, asset management, accounting standards and third party access to pipelines not the subject of the Gas Pipelines Access (Western Australia) Act 1998.

Gas trading licences, granted under the Act, provide for the licence holder to sell and supply gas to customers using less than 1 terajoule per annum (known as "small use customers") and also include provisions relating to the obligation to offer to supply small use customers in certain circumstances, a requirement to maintain supply to existing customers, an obligation to market gas, standard customer contracts, back-up trader arrangements, customer service standards and performance bonds.

For details of licensing requirements for gas workers, please refer to EnergySafety. EnergySafety manages the technical and safety requirements relevant to customer gas installations. The Authority has developed a Memorandum of Understanding with EnergySafety.