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Compliance Update – December 2019

05 December 2019

Welcome to our first issue of the Compliance Update.

Future issues can be received directly by subscribing to our email update service.

Our Compliance Update will keep you informed of our activities related to our Compliance and Enforcement Priorities and other important information to help you comply with our schemes.

Small-Scale Renewable Energy Scheme (SRES) compliance activities

During July to September 2019, 483,344 small-scale technology certificates (STCs) in 3,791 separate claims were incorrectly created by registered agents which meant they were failed. Common reasons for failed STCs included previously created and registered information, a lack of compliance paperwork and incorrect details in STC claims related to system, address, system owner and installation date.

From October 2019, average STC processing timeframes are 24 hours for Solar Panel Validation (SPV) claims (subject to successfully meeting all eligibility requirements), and two weeks for non-SPV claims. This has led to a growing uptake of SPV, offering a simple and easy way to check that products being installed are approved and eligible for STCs.

We are targeting non-compliance and fraud associated with the misuse of CEC installer accreditation details in relation to the STC claims and are working with other regulators and industry bodies. A number of investigations have commenced, using information such as number of installs per day and locations.

Large-Scale Renewable Energy Target compliance activities

During July to September 2019, 142,502 large-scale generation certificates (LGCs) across 83 separate claims were failed. The most common reason for failed LGCs are errors when participants enter generation data. The majority of LGCs were failed due to a data entry error made by one participant.

The number of failed claims is trending upwards as a result of enforcing stricter timeframes to respond to requests for further information in relation to LGC claims.

We conducted audits of five nominated persons and their accredited power stations using Registered Greenhouse and Energy Auditors. The focus of the audit program was large power stations with complex LGC methodologies.

Renewable Energy Target liability

98.2% of liable entities met their Quarter 3 STC surrender obligations. Two liable entities did not surrender sufficient STCs to meet their obligations and may be subject to shortfall charges. The non-tax deductible shortfall charge of $65 per certificate is significantly more than the average spot price of STCs.

Emissions Reduction Fund (ERF) project aggregators – Fit and Proper Person Requirements

In 2019, some landholders have raised concerns with us about behaviour under their contracts with the entity they have appointed as their project proponent.

Project proponents must maintain their fit and proper person (FPP) status. We are required by law to assess the status of any person who is, or proposes to be, an ERF project proponent or an Australian National Registry of Emissions Units (ANREU) account holder. We must also assess a project proponent’s FPP status when deciding whether or not to issue Australian Carbon Credit Units (ACCUs).

As outlined in our FPP posture we will have regard to a person’s capability, competence and business practices in making decisions about their suitability to become or remain project proponents. This could include having regard to an aggregator’s interactions with landholders, such as making payments to landholders in accordance with their aggregation contracts.

Enforceable undertakings

On 24 October 2019 we entered into an enforceable undertaking with GB Environmental Trading Pty Ltd for unknowingly receiving false information from a third party that led to the improper creation of 1,128 small-scale technology certificates.

On 18 October 2019 we entered into an enforceable undertaking with More Green Energy Pty Ltd for the improper creation of 5,090 STCs from 44 installations of non-compliant solar photovoltaic (PV) panels.

On 22 July 2019 we entered into an enforceable undertaking with Nasir Taimoor Kahloo for providing STC assignment forms containing false information regarding the installation of 41 systems to a REC Agent.

On 24 September 2019 P & N NSW Pty Ltd completed an enforceable undertaking.

See all Current Enforceable Undertakings.

Recent prosecutions and court decisions

7 August 2019 Clean Energy Regulator investigation leads to jail for solar installer

Solar Panel Validation (SPV) keeps you on track

SPV helps protect the integrity of the Small-scale Renewable Energy Scheme (SRES), giving industry and consumers an easy way to check that solar panels are approved by the Clean Energy Council, meet Australian standards and are backed by manufacturer warranty.

SRES Smart is your key to STC claim success – find out why

If you are a new or an existing registered agent under SRES you should be completing SRES Smart. It provides us with assurance that agents understand their expected capabilities and standards of practice. Your STC applications and processing timeframes may be faster if all your STC creators complete SRES Smart.

Spotlight on Auditors – learnings from our auditor inspection program

Audits underpin the effectiveness and integrity of the schemes we administer. Read more about our findings from our inspections.

Human-induced regeneration and native forest from managed regrowth methods

Be aware of the guidelines for all projects operating under the human-induced regeneration and the native forest from managed regrowth methods. As part of our 2019-20 Compliance and Enforcement Priorities, we may audit project proponents’ adherence to these guidelines.

National Greenhouse and Energy Reporting (NGER)

For the 2018-19 reporting year, 99.21% of NGER reporters reported on time.

Take advantage of our guidance to ensure you are complying.

Like to know more about our work?

Browse our 2018–19 Annual Report or the outcomes of the 2018-19 Compliance Priorities.

Got a tip?

If you have information on potential fraudulent or non-compliant behaviour, report it today.

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