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Reporting liability

14 September 2018

Contents

Liable entities are required to report on their activities annually under the Renewable Energy Target.

All liable entities that make acquisitions of electricity in a year must lodge an energy acquisition statement.

Energy acquisition statements

Energy acquisition statements are completed in the REC Registry and must be submitted on or before 14 February each year, and relate to a liable entity's activities for the previous calendar year. Large-scale generation certificates (LGCs) and quarter four small-scale technology certificates (STCs) are surrendered at the same time.

Energy acquisition statements include information about the:

  • amount of liable electricity acquired, in megawatt hours
  • type of acquisition, either wholesale or notional wholesale, as well as a description of the acquisition
  • network the acquisition took place in
  • period of acquisition that is being reported, and
  • point of liability, such as an electricity meter.

Energy acquisition statements ensure the Clean Energy Regulator is informed about:

  • the liable entity's representatives
  • all relevant electricity acquisitions made by the liable entity
  • any exemption certificates claimed by the liable entity for that year
  • LGC and STC liability
  • any renewable energy shortfall charge information
  • any changes to information set out in an energy acquisition statement lodged in a previous year, and
  • any information relating to company mergers, ownership, company contact details, address details and electricity supply arrangements.

If liable entities do not surrender the required amount of certificates, they must complete a large-scale generation shortfall statement or small-scale technology shortfall statement (incorporated into their energy acquisition statement). If a liable entity fully acquits its certificate liability, the shortfall statement is taken to be zero.

Amending energy acquisition statements at the request of a liable entity

Liable entities may request amendments to the preceding energy acquisition statement under section 45A of the Renewable Energy (Electricity) Act 2000 (the Act) where information has changed. Liable entities who wish to amend the preceding energy acquisition statement must make the request within 12 months of original lodgement.

An amendment may be requested or initiated for various reasons including reporting:

  • change to the final settlement data provided by the Australian Energy Market Operator (AEMO/AEMO WA)
  • amendment to an exemption certificate reported in a previous year, including additional exemption certificate(s), and
  • relevant acquisitions that were not reported in the previous year.

A request for an amendment should include details of:

  • any relevant acquisitions that have changed, in megawatt hours
  • the exemption certificates that have changed​
  • any additional LGCs or STCs that the liable entity wishes to surrender
  • any large-scale generation shortfall charge calculated, and
  • any small-scale technology shortfall charge calculated.

Liable entities may surrender additional STCs and LGCs to acquit an increased liability, where an amendment is agreed to by the agency. If a liable entity does not surrender certificates to acquit an increased certificate liability, the liable entity may incur a renewable energy shortfall charge.

Amending an energy acquisition statement without surrendering additional certificates may result in the agency making an assessment under the following sections of the Act:

  • 48 - default assessment of large-scale generation shortfall charge
  • 48B - default assessment of small-scale technology shortfall charge, or
  • 49 - amendment of an assessment.

If a default assessment occurs, large-scale generation shortfall charges are not refundable under Part 8 of the Act.

Amending an energy acquisition statement on the Clean Energy Regulator's own initiative

If the agency identifies that an amendment to a previous year's energy acquisition statement is required, the agency may initiate an amendment under section 45B of the Act.

Liable entities who wish to report amendments to an energy acquisition statement lodged more than 12 months ago should contact the agency in writing. The agency can make amendments to an energy acquisition statement under section 45B of the Act within four years of the energy acquisition statement being lodged.

If the agency makes an amendment of an energy acquisition statement under section 45B, the liable entity will be provided with the opportunity to surrender additional certificates under section 45C of the Act. If the liable entity chooses not to surrender additional certificates it may result in the agency making an assessment under sections:

  • 48 - default assessment of large-scale generation shortfall charge
  • 48B - default assessment of small-scale technology shortfall charge, or
  • 49 - amendment of an assessment.

If a default assessment occurs, large-scale generation shortfall charges are not refundable under Part 8 of the Act.

Vintage rule

Liable entities can only surrender certificates that were created in the assessment year or earlier. This is referred to as the vintage rule. To surrender additional certificates related to an amendment of an energy acquisition statement, liable entities will need to ensure the certificates were created in the REC Registry in the year the electricity was acquired (or earlier years).

Example 1

If a liable entity lodges their 2017 energy acquisition statement, LGCs and STCs must have been created between 2001 and 2017. Certificates created in 2018 (between 1 January – 14 February) cannot be used to meet certificate liability for the 2017 assessment year or earlier years.

Example 2

If a liable entity requests an amendment to their 2016 energy acquisition statement or the agency initiates an amendment to the 2016 energy acquisition statement, LGCs and STCs must have been created between 2001 and 2016. Certificates created in 2017 and 2018 cannot be used to acquit certificate liability for the 2016 assessment year.

What if a liable entity does not lodge an energy acquisition statement?

There are a range of options, ​ including penalty charges, in circumstances where a liable entity does not meet their reporting obligations. Liable entities should contact the agency as soon as practical if they become aware of a failure to report or if they are unsure of their reporting obligations.​​​​

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