In February each year, liable entities are required meet their obligations under the Renewable Energy Target by lodging an energy acquisition statement and surrendering large-scale generation certificates and small-scale technology certificates in proportion to their share of the electricity market. We expect electricity retailers to comply with their obligations by fully acquitting their liability through the surrender of certificates.
Liable entities that fail to surrender certificates to meet their compliance obligations incur a shortfall charge of $65 per renewable energy certificate not surrendered. The shortfall charge is not tax deductible.
We will investigate all cases of intentional failure and if necessary have the power to conduct audits.
There are serious consequences for entities that fail to meet compliance obligations, including significant additional
financial penalty charges and interest charges. Failure to lodge statements on time is also a criminal offence that may attract criminal penalties. Where a debt is incurred, we will pursue that debt in accordance with the law, up to and including applications to wind up companies in appropriate cases.
We strongly recommend liable entities seek professional, independent advice on their specific circumstances if they do not understand the requirements or believe that they may have difficulty fulfilling their obligations.
Under section 134 of the
Renewable Energy (Electricity) Act 2000, the Clean Energy Regulator publishes a list of liable entities who have large-scale generation shortfall or small-scale technology shortfall. The Clean Energy Regulator also reports on renewable energy certificate shortfalls in its administrative report.
Compliance data will be updated and amended as required, in line with ongoing compliance and assessment activities.
For a complete list of certificate shortfall information relating to all assessment years, see the
certificate shortfall register.
The table below presents large-scale generation certificate shortfalls of more than 10 per cent assessed for the 2016 assessment year following the annual reporting and certificate surrender deadline on 14 February 2017.
Under the Large-scale Renewable Energy Target, liable entities with a shortfall of less than 10 per cent of their total large-scale generation certificate liability in an assessment year may carry forward their shortfall amount to the next assessment year (that is, it is added to their liability for 2017). In 2017, these liable entities must surrender sufficient large-scale generation certificates to acquit their 2017 large-scale generation certificate liability and 2016 shortfall. The ability to carry forward a small amount of shortfall gives liable entities flexibility to manage their obligations between assessment years, where required.
The table below presents small-scale technology certificate shortfall assessed for the 2016 assessment year.
This table lists liable entities who did not surrender sufficient small-scale technology certificates for quarters 1 to 4 of the 2016 assessment year, by 14 February 2017. Any shortfalls must be acquitted with the payment of the small-scale technology shortfall charge. Note, the small-scale technology certificate shortfall charge is $65 per certificate. Small-scale technology certificates can be purchased through the STC clearing house for a fixed price (currently $40 per certificate).
There is no option to carry forward a small-scale technology certificate shortfall or to provide small-scale technology certificates at a later date to receive a refund on the shortfall charge paid.
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.