In February each year, liable entities are required to 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 meet their obligations by acquitting their liability through the surrender of certificates. We validate all energy acquisition statements and conduct audits. Investigations may also be undertaken in certain circumstances.

Non-compliance

There are serious consequences for entities that do not meet their 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.

Shortfall charge and publication

Liable entities that do not surrender sufficient certificates to meet their obligations incur a shortfall charge of $65 per renewable energy certificate not surrendered. The shortfall charge is not tax deductible.

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.

Data will be updated and amended as required, in line with ongoing compliance and assessment activities.

2017 certificate shortfall

Large-scale generation certificate shortfall (10 per cent or more)

The table below lists liable entities with large-scale generation certificate shortfalls of more than 10 per cent assessed for the 2017 assessment year following the annual reporting and certificate surrender deadline on 14 February 2018.

Liable entity    LGC liability (No of certificates)    LGCs surrendered    LGC shortfall (No of certificates)    LGC shortfall (percentage of total LGC liability)    Value of LGC shortfall charge ($)    Alinta Energy Retail Sales Pty. Ltd. 373,552 8,590 364,962 97.7% 23,722,530 Alinta Sales Pty Ltd 300,099 - 300,099 100% 19,506,435 Perth Energy Pty Ltd 256,977 - 256,977 100% 16,703,505 Progressive Green Pty Ltd 70,615 - 70,615 100% 4,589,975 Blue NRG Pty. Ltd. 68,471 - 68,471 100% 4,450,615 Alinta DEWAP Pty Ltd 65,884 - 65,883 99.99% 4,282,395 Next Business Energy Pty Ltd 38,907 - 38,907 100% 2,528,955 Qenergy Limited 42,053 5,729 36,324 86.37% 2,361,060 CovaU Pty Limited 30,596 - 30,596 100% 1,988,740 Alinta Energy Transmission (Roy Hill) Pty Ltd 30,336 - 30,336 100% 1,971,840 1st Energy Pty Ltd 27,299 - 27,299 100% 1,774,435 Sumo Power Pty Ltd 25,420 - 25,420 100% 1,652,300 Rimfire Energy Pty Ltd 12,048 - 12,048 100% 783,120 Online Power & Gas Pty Ltd 10,401 - 10,401 100% 676,065 People Energy Pty Ltd 8,704 - 8,704 100% 565,760 Globird Energy Pty Ltd 7,749 - 7,749 100% 503,685 Mojo Power Pty Ltd 7,746 250 7,465 96.37% 485,225 Sanctuary Energy Pty Ltd 4,726 - 4,726 100% 307,190 OzGen Retail Pty Ltd 3,616 - 3,616 100% 235,040 Karara Energy Pty Ltd 23,217 20,657 2,560 11.02% 166,400 Change Energy Pty LTd 1,532 - 1,532 100% 99,580 Braemar Power Project Pty Ltd 318 - 318 100% 20,670

Large-scale generation certificate shortfall (less than 10 per cent)

Under the Large-scale Renewable Energy Target, liable entities with a shortfall that is less than 10 per cent of their total large-scale generation certificate liability for an assessment year may carry forward that shortfall amount to the following assessment year. For example, liable entities with a large-scale generation certificate shortfall of less than 10 per cent for the 2017 assessment year will have this amount added to their liability for 2018. In 2018, these liable entities must surrender sufficient large-scale generation certificates to acquit their 2018 large-scale generation certificate liability and 2017 shortfall. The ability to carry forward a small amount of shortfall gives liable entities flexibility to manage their obligations between assessment years, where required.

Liable entity    LGC liability (No of certificates)    LGCs surrendered    LGC shortfall (No of certificates)    LGC shortfall (percentage of total LGC liability)    Value of LGC shortfall charge ($)    IPOWER 2 PTY LIMITED and IPOWER PTY LIMITED TA Simply Energy 566,821 511,600 55,221 9.74% - Amanda Energy Pty Ltd 19,158 17,300 1,858 9.69% - EnergyAustralia Pty Ltd 1,628,380 1,496,655 130,144 7.99% - EnergyAustralia Yallourn Pty Ltd 1,158,893 1,066,182 92,711 7.99% - Enwave Mascot Pty Ltd 3,773 3,600 173 4.58% -

Small-scale technology certificate shortfall

The table below lists small-scale technology certificate shortfall for the 2017 assessment year.

Liable entity    STC shortfall (No of certificates)    Value of STC shortfall charge ($)    Mojo Power Pty Ltd 3,232 210,080 Karara Energy Pty Ltd 1,267 82,355 TEC Hedland Pty Ltd 678 44,070 COzero Energy Retail Pty Ltd 596 38,740 Globird Energy Pty Ltd 2 130

This table lists liable entities who did not surrender sufficient small-scale technology certificates for quarters 1 to 4 of the 2017 assessment year, by 14 February 2018. 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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