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Compliance Update – 1 January to 31 March 2020

11 May 2020

The Clean Energy Regulator is open for business and committed to maintaining normal business operations during the COVID-19 pandemic.

We are currently drafting our 2020-21 Compliance and Enforcement Priorities and we take into account the impact of the COVID-19 pandemic on our scheme participants.

2018-19 Safeguard compliance results are in

The agency published the 2018–19 safeguard facility reported emissions on Thursday 26 March 2020. All entities met their obligations by ensuring facilities did not have emissions that exceeded their baselines on or after 1 March 2020. In total, covered emissions from 210 facilities had a carbon dioxide equivalence of 144.2 million tonnes. This was 36.8 million tonnes below total baselines.

RET liability – 2019 reporting period

For the 2019 reporting period, all liable entities reported on time. By the 31 March 2020 a total of 98% of liable entities had acquitted their obligations (whether through surrendering certificates, paying shortfall charges or permitted carry-over). The large-scale generation certificates (LGCs) on-time surrender rate was 76.6 per cent, and the small-scale technology certificates (STCs) on-time surrender rate was 99.9 per cent.

For more information, see our Surrender update following 2019 assessment year and the updated certificate shortfall data, including a list of liable entities who have incurred shortfall in all assessment years.

Strong uptake of Solar Panel Validation Initiative (SPV)

Over 35 per cent of all STC applications are now using SPV. SPV applications are experiencing faster processing times, within 24 hours. We continue to see growth in manufacturer participation in SPV, with over 94 per cent of panels associated with STC claims under the Small-scale Renewable Energy scheme available for verification.

Learn more about how SPV gives 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.

Compliance action in the Small-Scale Renewable Energy Scheme (SRES)

The misuse of accredited installer details in the SRES continues to be dealt with.

Based on information provided by the Clean Energy Regulator, the Clean Energy Council has suspended the accreditation of 18 installers. The installers have been offered the opportunity to provide reasons why their accreditation should not be cancelled. Information has been referred to state and territory electrical safety regulators for consideration of regulatory response.

Guidance on GST and the SRES

The Australian Tax Office has updated their online guidance on GST and the SRES. It is now easier to access the right information depending on whether you are the system owner, an installer or an agent.

LGC eligibility — notify us of any changes and check your data

We are noticing an increase in the number of transactions with failed LGCs due to data entry errors and improper creation of LGCs due to incorrect Marginal Loss Factors. In the period January through March 2020, 2,735,387 LGCs across 200 separate claims were failed. All failed LGCs are published on the Register of large-scale generation certificates. To ensure correct LGC creations:

  • make sure your data entry for LGC claims are accurate, and
  • tell us when your Marginal Loss Factors change so that you receive the correct number of LGCs.

Annual Audit Program

Given the current restrictions on travel and requirements for social distancing, it is likely that Auditors will need to work with scheme participants to find alternative ways for gathering evidence usually obtained through site and office visits.

Scheme participants and auditors are encouraged to discuss with the agency specific cases where it is impracticable to obtain an opinion without a site visit.

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

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