This Statement of Intent has been prepared in response
to the Australian Government's Statement of Expectations
of 13 September 2012 and has been endorsed by the
Members of the Clean Energy Regulator for presentation
to the Minister for Climate Change and Energy Efficiency,
the Honourable Greg Combet AM MP. The Statement
of Intent addresses each section within the Statement
of Expectations and culminates by discussing the five
specific responsibilities of the Clean Energy Regulator.
These five elements form the foundation of the Clean
Energy Regulator's corporate plan, which will be finalised
and presented before 1 April 2013.
The Clean Energy Regulator undertakes a broad range
of functions to facilitate participation in and ensure the
The Clean Energy Regulator's roles include educating
clients, determining entitlements and liabilities,
accrediting auditors, managing access to registries and
publishing information. The Clean Energy Regulator
works in partnership with other agencies, particularly
when exercising compliance and enforcement functions.
The Clean Energy Regulator will continue to be
responsive to the Government and to the Parliament.
Systems and processes have been developed and
implemented to ensure that, in fulfilling its statutory
functions, the Clean Energy Regulator continues to
meet its obligations as a Commonwealth entity under
the Financial Management and Accountability Act 1997
(the FMA Act).
The Clean Energy Regulator is part of the Climate
Change and Energy Efficiency portfolio. To play its part
effectively, the Clean Energy Regulator will continue to
work co-operatively with the portfolio Department and
the offices of the Minister and Parliamentary Secretary
as well as other agencies that are contributing to the
Government's plan for a clean energy future.
The Clean Energy Regulator has adopted a continuous
improvement approach to its operations. As a new
Agency, the Clean Energy Regulator continues to
implement fit for purpose governance and performance
systems and frameworks that support its roles and
functions. The Clean Energy Regulator embraces the
values and code of conduct of the Australian Public
Service through its performance management approach
and the culture of performance that it fosters.
Providing information and education on the carbon
pricing mechanism, Renewable Energy Target, National
Greenhouse and Energy Reporting Scheme and
Carbon Farming Initiative is one of the central roles
and responsibilities of the Clean Energy Regulator.
Considerable effort and resources are directed into
engagement with clients (namely, participants in the
schemes which we administer) and other stakeholders,
to seek their input as new systems and processes are
developed. The Clean Energy Regulator is working
closely with clients to put into practice the principles that
The Clean Energy Regulator works with other
international and national regulatory bodies and
law enforcement agencies, including the Australian
Securities and Investments Commission, the Australian
Competition and Consumer Commission, the Australian
Taxation Office, the Australian Transaction Reports and
Analysis Centre, the Australian Federal Police and the
Commonwealth Director of Public Prosecutions. The
Clean Energy Regulator has developed memoranda
of understanding with relevant state and territory
government and Australian Government agencies, in
relation to information exchange, to assist the agencies
to meet their regulatory responsibilities in line with the
requirements of the relevant legislation.
The Clean Energy Regulator is an independent statutory
decision maker but is nevertheless accountable to
the Government and to the Parliament for its use of
resources in the performance of its functions, and the
way in which it performs those functions.
The Clean Energy Regulator will report regularly to enable
the Government to assess the Agency's performance
against agreed performance indicators. This includes
providing to the Minister annual reports under section 40
of the Clean Energy Regulator Act 2011 and under section
105 of the Renewable Energy (Electricity) Act 2000 for
tabling in the Parliament. The Clean Energy Regulator's
annual report will be prepared in accordance with the
Requirements for Annual Reports for Departments,
Executive Agencies and FMA Act Bodies approved by
the Joint Committee of Public Accounts and Audit.
Consistent with section 39 of the Clean Energy
Regulator Act 2011, the Clean Energy Regulator will
also submit to the Minister a Corporate Plan which
covers a three year period. The Chief Executive Officer
will report against the corporate plan and inform the
Minister of any changes to the plan or significant
matters that may impact on the achievement of the
objectives contained within.
The effective performance of the Clean Energy
Regulator will be underpinned by the establishment
of collaborative relationships across government.
The Clean Energy Regulator works closely with the
Department of Climate Change and Energy Efficiency
(the Department), which is the principal advisor to
the Government on climate change policy. This is
done through a formal executive-level co-ordination
committee as well as frequent meetings and information
exchange at all levels on current and emerging issues.
In particular, the Clean Energy Regulator will provide
advice and input into any further policy development
relevant to the legislation which it administers. The
Clean Energy Regulator will work collaboratively with
the Department to ensure a shared understanding
and appropriate level of awareness of the Agency's
operations and priorities. The Clean Energy Regulator
also relies on the Department for the provision of certain
corporate services through a shared services agreement.
The Clean Energy Regulator will inform the Portfolio
Secretary of significant briefings, reports, media releases
and correspondence, and ensure that this information
is provided in parallel with information submitted to the
Minister. In addition, the Clean Energy Regulator will
contribute to the development of formal government
submissions relating to its activities and resources, which
will be submitted and coordinated by the Department.
The Clean Energy Regulator will work closely with
the Department to draw on practical experience and
expertise to inform the development of clean energy
policy. Advice and support will also be provided to the
Minister and Parliamentary Secretary, to assist the
administration of both clean energy policy and programs.
The Clean Energy Regulator has a specific
responsibility to provide timely and accurate advice
to support the annual setting of the Small-scale
Technology Percentage and Renewable Power
Percentage. The Small-scale Technology Percentage
sets the rate of liability for the Small-scale Renewable
Energy Scheme and will be set annually to reflect
demand for Small-scale Technology Certificates (STCs).
Section 40B of the Renewable Energy (Electricity) Act
2000 requires the Regulator to publish the non-binding
Small-scale Technology Percentage estimate for the
next two years before 31 March each year. The
Small-scale Technology Percentage will be set annually
after considering estimated STCs that will be created
in a year along with the estimated amount of electricity
acquired by liable entities and any shortfall or excess
of STCs created in previous years. Setting a correct
Small-scale Technology Percentage helps liquidity in the
STC market by ensuring STCs created in the year are
surrendered and removed from the market.
The Clean Energy Regulator is a critical element in the
implementation and administration of a major economic
reform and is responsible for the credible regulation of
the primary carbon market, including the establishment
and security of a new class of property rights. This
means that regulatory, business and assurance models
must be of the highest standards.
The Clean Energy Regulator governance framework sets
out the relationships, structure, systems and processes
that underpin the operations of the Agency. As part of
a performance culture, the Clean Energy Regulator
promotes accountability in which officers act with integrity,
trust and respect. The governance arrangements are
reflected in the business planning framework, audit and
assurance activities, risk management, fraud prevention
and control, the Chief Executive's Instructions, policies and
guidelines and in the performance management approach.
The Clean Energy Regulator will continue to review and
progress its governance arrangements to ensure that
it maintains its currency, reflecting the Government's
policies and priorities and contemporary best practice.
The Clean Energy Regulator will report its performance
to the Minister through a number of mechanisms,
including the annual report which outlines performance
against the key performance indicators published in
the portfolio budget statement, the corporate plan and
monthly performance reporting.
The Clean Energy Regulator will continue developing
its capabilities and procedures to manage its financial
affairs in accordance with the Financial Management
and Accountability Act 1997, along with other relevant
legislation and financial policies. The Clean Energy
Regulator acknowledges the requirement to manage
Commonwealth resources in an efficient, effective,
ethical and economical manner, ensuring cost effective
outcomes and the financial sustainability of the Agency.
In line with the principles of accountability and
transparency, the Clean Energy Regulator will
make available significant corporate documents,
including the Statement of Expectations, Statement
of Intent and annual reports, on our website. Other material
published on the website includes technical guidance
and advice, news and updates, contact details and
scheme data such as the Liable Entities Public
Information Database and the non-binding estimates
of the Renewable Power Percentage and the
Small-scale Technology Percentage for forward years.
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