Applying for PECs
The Large-scale Renewable Energy Target (LRET) and Small-scale Renewable Energy Scheme (SRES) legislation and regulations include provisions to provide partial exemptions from LRET and SRES liability for electricity used in defined emissions-intensive trade-exposed (EITE) activities. Prescribed persons (typically entities that carry out these EITE activities) may apply for a partial exemption certificate (PEC).
Completing the Partial Exemption Certificate (PEC) application
If a partial exemption certificate (PEC) application is approved by the Regulator, the prescribed person will receive a PEC stating the amount of megawatt-hours of electricity for which exemption can be provided to the RET liable entity named on the PEC (usually the retail electricity supplier) for electricity used in the emissions-intensive trade-exposed (EITE) activity in the year mentioned on the PEC.
Once issued with a PEC for a year, the prescribed person may need to apply for another PEC if there is a change of RET liable entity during the year, or if there are concurrent multiple RET liable entities for electricity used in the EITE activity in the year.
Applicants intending to apply for a PEC should read the guidelines for completing the application for a partial exemption certificate before completing their application.
Audit reports for partial exemption certificate applications
Applications for partial exemption under the Renewable Energy (Electricity) Act 2000 (the Act) and the Renewable Energy (Electricity) Regulations 2001 (the Regulations) are required to be accompanied by an audit report where:
- the application is made by a prescribed person under regulations 22G, 22H, 22I, 22J or 22K of the Regulations, and
- the amount of partial exemption (in MWh) applied for exceeds 15,000MWh for the application year.
The legislative reference for this requirement is s46A(2)(bb) of the Act and Subdivision BA of Division 4 of Part 3A. The audit report must comply with the requirements of regulation 22UB of the Regulations, and guidelines are available to assist you and your auditor in preparing the audit report.
However, it is not necessary to submit an audit report with a PEC application if:
- the Clean Energy Regulator has already been given an audit report with a Jobs and Competitiveness Program application under paragraph 603(1)(b) of the Clean Energy Regulations 2011, and
- the other criteria of subregulation 22UA(4) of the Regulations are met.
Guidelines for completing the application for a partial exemption certificate (PEC)
These guidelines provide information that may assist in completing the application for a partial exemption certificate (PEC). However, this information is of a general nature only and the Clean Energy Regulator suggests you seek your own legal advice, if necessary, before completing a PEC application form.
Applications for a Partial Exemption Certificate (PEC)
This form must be completed by any prescribed persons who wish to apply for a partial exemption certificate (PEC) for electricity used in defined emissions-intensive trade-exposed (EITE) activities.
The 2014 application is due on or before 31 March 2014.
If you are applying in relation to an EITE activity at a site which produces more than one type of relevant product, please complete 'Appendix C – Quantity of relevant product' in relation to each additional type of relevant product produced.
Date last updated: 18 Mar 2014