Skip Ribbon Commands
Skip to main content

Audits under the Renewable Energy Target webinar

Suggested Reading Suggested Reading

06 March 2019

A webinar was held on Wednesday 5 December 2018 to help greenhouse and energy auditors better understand the Clean Energy Regulator’s expectations of audits under the Renewable Energy Target (RET).

Please note a recording of this webinar is unavailable.

Presentation slides

Documentasset: Audits under the Renewable Energy Target webinar

Questions and answers

The following questions were raised during the webinar. Please note information relating to specific individuals or auditing firms has been removed.

Audit timing

Does an audit of every three years apply only once using the electricity use method?

Under regulation 22UG of the Renewable Energy (Electricity) Regulations 2001 (RET Regulations), audits are required every three years unless the Clean Energy Regulator requests an audit report per year. If this occurs, it can happen at any time during the year, not necessarily before the exemption certificate application due date.

For clarity, an emissions-intensive trade-exposed (EITE) company applying under the electricity use method for the 2019 application year will be required to lodge an audit report if their electricity consumption exceeds 15 000 MWh. Assuming the agency did not additionally request an audit report for the 2020 and 2021 application years, the EITE company would require another audit report for the 2022 application year.

Method transition

Reporters can use the electricity use method for the 2019 application year. Specifically, is the Clean Energy Regulator referring to the 2017–18 financial year period for lodgement in 2019?

This is correct. Unlike the production calculation method which is calculated on a financial year basis, the electricity use method is calculated on a calendar year period with the MWh amount being finalised in January following the application year.

For clarity, the electricity use method is based on a calendar year (2019 application year) with the amount of exemption in MWh being provided in January of the following year (2020).

Can reporters use the production method for the 2017–18 financial year period and not transit to the electricity use method for 2019 application?

That is correct. The last year they can do so is this year. All EITE companies must apply under the electricity use method for the 2020 application year.

Metering

Where there is reliance on a sub-meter (i.e. not an NMI meter), what standards does the Clean Energy Regulator apply for meter accuracy? Electricity meters are not usually calibrated after installation.

The accuracy of individual meters (including sub meters/internal meters) has not at this stage been specified, but higher accuracy is required for meters than total exemption. An option is to use specifications in the National Greenhouse and Energy Reporting (NGER) legislation or other parts of the RET. Guidance for meters for RET large-scale generation are included in Chapter 7 in the National Electricity Rules and is summarised on page 19 of the Exemption certificate – Electricity use method guideline.

How does the Clean Energy Regulator define 'industry standard or norms' for sub-meters that could be 20-30 years old and haven't been calibrated since they were installed?

The accuracy of individual meters (including sub meters/internal meters) has not at this stage been specified, but higher accuracy is required for meters than total exemption. An option is to use specifications in the National Greenhouse and Energy Reporting (NGER) legislation or other parts of the RET. Guidance for meters for RET large-scale generation are included in Chapter 7 in the National Electricity Rules and is summarised on page 19 of the Exemption certificate – Electricity use method guideline.

Audit coverage

The compliance priorities slide mentions that auditors should consider non-compliances in previous reporting periods and note these in Part B of the audit report. Could these be noted in Other Matters or does the Clean Energy Regulator prefer findings raised?

Yes – the Clean Energy Regulator would like to see any non-compliances listed in Part B, particularly if relevant to the current reporting period. For all other issues outside the reporting period we accept your judgement on where to include it; in Other Matters if relevant.

With reference to previous reporting periods, auditors would need to request previous audit reports. How far back should auditors consider?

As audits under the electricity use method are not required every year, the auditors will need to go back to and refer to the previous audit report.

Administration

If everything is now submitted directly into an online portal, should auditors gain access to the portal to understand what was submitted by the applicant to provide the assurance?

EITE companies will be able to lodge the application through the online portal. The company can print the application for you to view and also save the document for you to view later. The online portal allows the audit report to be uploaded as part of the application form.

Documents on this page Documents on this page

Was this page useful?

LEAVE FEEDBACK
 
 
preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only