Reduced acquisitions are the most important calculation that a liable entity preforms to determine their annual
large-scale generation certificate (LGC) and quarterly
small-scale technology certificate (STC) liability under the Renewable Energy Target. This page provides information about reduced acquisitions for the current and previous assessment years and how to apply or vary them.
Liable entities must report reduced acquisitions on an annual basis through the energy acquisition statement and renewable energy shortfall statement. Reported reduced acquisitions are used by the Clean Energy Regulator to calculate annual LGC and STC liabilities.
To determine and calculate relevant acquisitions, see
acquisitions and networks exemption.
Exemption certificates reduce the amount of relevant acquisitions reported by liable entities.
Reduced acquisitions for STC liabilities are used for two calculations.
The purpose of the first calculation is to estimate the number of STCs required to surrender for quarters one to three of the assessment year. In this case reduced acquisitions are known as the 'previous year's reduced acquisitions' [refers subsection 38AA(3) of the
Renewable Energy (Electricity) Act 2000]. Previous year's reduced acquisitions apply if a liable entity:
The second is to back-date the number of STCs which were calculated for surrender in quarters one to three for the assessment year. In this case reduced acquisitions are known as the assessment year's reduced acquisitions, and are used to impose STC required surrender amount shortfalls and charges for quarters one to three if a liable entity:
Liable entity customers that conduct eligible emission-intensive trade-exposed activities may apply to the Clean Energy Regulator to receive exemption certificates. To apply for exemption certificates, the companies who conduct eligible emission-intensive trade-exposed activities must nominate the person who will be entitled to use the exemption certificate for liability purposes. Only the liable entity nominated on the exemption certificate can use the exemption certificate.
Liable entities may purchase exemption certificates from companies conducting emissions trade exposed activities. It is the liable entity's responsibility to determine when a benefit can be provided to exemption certificate customers, assuming the exemption certificate customer provided exemption certificates to a liable entity. The benefit of an exemption certificate can be:
Companies or individuals who become liable for an assessment year for the first time, or are intermittently liable for assessment years, under the Renewable Energy Target should apply for a reduced acquisition amount to apply as if it were the previous year's reduced acquisitions, so that STCs can be surrendered for quarters one to three of an assessment year [refers section 38AG of the
Renewable Energy (Electricity) Act 2000 (the Act)].
Companies and individuals are liable if they are the first person to acquire electricity, therefore making a relevant acquisition for the purposes of the Act. It is the responsibility of the Clean Energy Regulator to determine another amount to apply, and approve or refuse the amount applied for.
If the person fails to lodge an application, the Clean Energy Regulator will impose STC shortfalls and small-scale technology shortfall charges, including interest charges, for quarters one to three of the assessment year.
If you are a new liable entity complete the following steps:
If you are an intermittent liable entity complete the following steps:
Liable entities who lodged an energy acquisition statement and renewable energy shortfall statement on or before 14 February or before 1 April may apply to vary their previous year's reduced acquisitions and propose an amount to apply instead of the previous year's reduced acquisitions for quarters one to three [refers section 38AF of the
Renewable Energy (Electricity) Act 2000].
Liable entities may choose to apply for a variety of reasons including: a loss or gain of customers, including those who conduct eligible emission-intensive trade-exposed activities.
To apply to vary the previous year's reduced acquisitions:
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.