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Scheme compliance

05 May 2022


What is non-compliance

Liable entities are seen to be complying with their legislated obligations set under the Renewable Energy (Electricity) Act 2000 (the Act) if they:

  • lodge their energy acquisition statement by the 14 February or a date agreed by the Regulator
  • surrender large-scale generation certificates annually, and small-scale technology certificates quarterly, and
  • pay any applicable shortfall charges by the invoice due date.

The Clean Energy Regulator (the agency) validates all energy acquisition statements and conducts audits. Investigations may be undertaken in certain circumstances.

There are a range of options, including penalty charges, in circumstances where a liable entity does not meet their reporting, surrender, and shortfall payment obligations. Liable entities should contact the agency as soon as practical if they become aware of a failure to report or if they are unsure of their obligations.

Inability to meet reporting or surrender obligations

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 a criminal offence that may attract penalties.

All shortfall charges must be paid on time; any unpaid shortfall charge will attract interest charges. 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.

The agency strongly recommends liable entities seek professional and independent advice on their specific circumstances if they do not understand the requirements or believe that they may have difficulty fulfilling their obligations.

Interest charges

Interest applies to shortfall charges and penalty charges that are not paid by the due date. Interest is automatically applied to any large-scale generation shortfall charge, small-scale technology shortfall charge, or penalty charge that is not paid by a liable entity by the due date for the charge. This includes interest applied to unpaid interest charges. The principal amount and any applicable interest must be paid.

Interest is calculated daily by multiplying the unpaid amount by the general interest charge rate for the day (calculated under section 8AAD of the Taxation Administration Act 1953 and set out on the Australian Taxation Office’s website).

Penalty charges

Penalty charges are incurred where a liable entity has not met its obligations. Circumstances include:

CircumstancePenalty charge
Failing to lodge a statement or information relevant to shortfall charges for a year.= 2 x shortfall charge payable for the year ($130 per certificate not surrendered)
Failing to keep or produce records detailing calculations of a certificate shortfall or surplus for a year.= 2 x shortfall charge payable for the year ($130 per certificate not surrendered)
Making false or misleading statements, or omitting information from a statement rendering it false or misleading, and the renewable energy shortfall charge properly payable by the entity exceeds the charge that would have been payable if it were assessed on the basis that the statements were not false or misleading.= 2 x the excess ($130 per certificate).
Making an arrangement solely or principally for the purpose of avoiding or reducing a shortfall charge.= 2 x the amount avoided or reduced ($130 per certificate).

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