Under the Renewable Energy Target (RET), liable entities are required to surrender certificates. The number of small-scale technology certificates required to be surrendered are calculated partly by the liable entities’ reduced acquisitions from the previous year.
Liable entities may apply to vary the surrender amounts for quarters one to 3 of the assessment year.
Applying to vary the surrender amount
Section 38AF of the Renewable Energy (Electricity) Act 2000 (the Act) outlines applications to vary a required surrender amount. A liable entity may apply to vary the surrender amount if their reduced acquisitions in the assessment year are significantly different to the previous year’s acquisitions.
A variation in reduced acquisitions could be due to:
- loss of a large customer or multiple customers
- issuance of an exemption certificate
- cessation of trade
- a merger with another corporation,
- migration of customers between entities.
Liable entities can submit this application more than once in an assessment year.
Eligibility
To be eligible to vary the surrender amount, the liable entity must:
- have lodged an energy acquisition statement for the previous assessment year before 1 April, and
- submit the application before 1 October.
Potential risk
Please note the potential risks involved with applying to vary the surrender amount. If the assessment year’s reduced acquisitions (AYRA) exceed the proposed amount in the application by more than ten per cent, the AYRA (lodged in the EAS) will be used to recalculate the required surrender amount (RSA) for quarters one to 3.
This would lead to automatic shortfall for the first 3 quarters of the assessment year and shortfall charges will be incurred.