Timelines and RET liable entities process for 2011 and future years (reporting and surrendering)

1

The Clean Energy Regulator

• Publishes the current year RPP
• Publishes the current year STP
• Publishes estimate STP for next 2 years

Regulator provides each liable entity with an estimate of required surrender amounts for quarters 1 – 3 for the Small-Scale Renewable Energy Scheme (SRES) using section 40C and 38AE of the Act.

Required surrender amounts are provided to RET liable entities so that the correct amount of STCs are surrendered for quarters 1 – 3 and are based on your previous year’s reduced acquisitions. Your previous year’s reduced acquisitions come from your lodged AEAS that is lodged on or before 14 February in the current year.

If you wish use another amount rather than the required surrender amount submit an application for the required surrender amount instead of or as if it were the previous year’s reduced acquisitions.

RET Liable entity

• Surrenders STCs for quarter 1 SRES compliance.
  • STCs can be purchased from the STC market or STC Clearing House.
  • If you do not meet the required surrender amount you will need to report and pay a Small-scale Technology Shortfall Charge (STSC) with your AEAS in quarter 4.
• Based on 35% of your previous year’s reduced acquisitions from your lodged AEAS.This equals your required surrender amount for quarter 1.
• Notify the Clean Energy Regulator of the STCs surrendered
  • Once all STC offers have been made for a quarter the REC Registry will require the liable entity to 'Notify the Regulator'. Once notification has been completed it is taken to be the notification to the Clean Energy Regulator under section 45(1) of the Act. If notification is not completed this may result in a shortfall charge.
• Pay STC surrender fee.

The Clean Energy Regulator

• Notifies acceptance of STCs.
• Accepts STCs within 2 weeks after 28 April.

2

RET Liable entity

• Surrenders STCs for quarter 2 SRES compliance.
  • STCs can be purchased from the STC market or STC Clearing House.
  • If you do not meet the required surrender amount you will need to report and pay a Small-scale Technology Shortfall Charge (STSC) with your AEAS in quarter 4.
• Based on 25 % of your previous year’s reduced acquisitions from your lodged AEAS. This equals your required surrender amount for quarter 2.
• Notifies the Clean Energy Regulator of the STCs surrendered.
  • Once all STC offers have been made for a quarter the REC Registry will require the liable entity to 'Notify the Regulator'. Once notification has been completed it is taken to be the notification to the Clean Energy Regulator under section 45(1) of the Act. If notification is not completed this may result in a shortfall charge.
• Pays STC surrender fee.

The Clean Energy Regulator

• Notifies acceptance of STCs.
• Accepts STCs within 2 weeks after 28 July.

3

RET Liable entity

• Surrenders STCs for quarter 3 SRES compliance.  
  • STCs can be purchased from the STC market or STC Clearing House.
  • If you do not meet the required surrender amount you will need to report and pay a Small-scale Technology Shortfall Charge (STSC) with your AEAS in quarter 4.
• Surrender is based on 25% of your previous year’s reduced acquisitions from your lodged AEAS.  This equals your required surrender amount for quarter 3.
• Notifies the Clean Energy Regulator of the STCs surrendered
  • Once all STC offers have been made for a quarter the REC Registry will require the liable entity to ‘Notify the Regulator’. Once notification has been completed it is taken to be the notification to the Clean Energy Regulator under section 45(1) of the Act. If notification is not completed this may result in a shortfall charge.
• Pays STC surrender fee

The Clean Energy Regulator

• Notifies acceptance of STCs.
• Accepts STCs within 2 weeks after 28 October.

RET Liable entities can apply for a required surrender amount for quarters 1 – 3, if AEAS provided on or before 14 February  

4

RET Liable entities can apply for a required surrender amount for quarters 1 – 3, if no AEAS has been provided for the year

RET Liable entity

• Surrenders STCs for quarter 4 (annual) SRES compliance.  
• STCs can be purchased from the STC market or STC Clearing House.
• If you do not meet the annual required surrender amount you will need to report and pay a Small-scale Technology Shortfall Charge (STSC) with your AEAS in quarter 4.

RET Liable entity surrenders LGCs for LRET compliance.

RET Liable entity

1. Determines relevant acquisition/s.
   • Relevant acquisitions are wholesale purchases of electricity. If you make relevant acquisitions under the Act you are liable for LRET and SRES.
   • The sum of relevant acquisitions (in MWh) is used for both LRET and SRES certificate liabilities and will form the basis of calculating your assessment year’s reduced acquisitions (actual relevant acquisitions for the year)
2. Determines partial exemption certificates (PECs), if applicable.
   • Companies conducting emission intensive trade exposed (EITE) activities can apply to the Clean Energy Regulator for PECs.  Once the Clean Energy Regulator issues a PEC to eligible renewable energy target EITE companies, the renewable energy target EITE company and RET liable entity can negotiate and agree to the terms of the PEC transfer.
   • If RET liable entity receives PECs, the RET liable entity uses PECs to reduce their relevant acquisition which reduces their overall STC and LGC liability.
3. Determines assessment year’s reduced acquisitions liability in MWh for SRES and LRET.  This is the your relevant acquisitions minus PECs, in MWh.
4. Determines STC and LGC liability.  This will be the basis for the number of STCs and LGCs that you will need to surrender in order to meet your compliance obligations.  Otherwise you will need to pay the Small-scale Technology shortfall Charge or Large-scale Generation Shortfall Charge for any certificate not surrendered, as applicable.
5. Purchases certificates.
   • For the SRES – STCs can be purchased from the STC market or STC Clearing House.
   • For the LRET – Certificates can be purchased from the LGC market.
6. Surrenders certificates.
   • Surrender STCs for quarter 4 for SRES. If you do not surrender sufficient STCs a small-scale technology shortfall charge (STSC) will apply.
   • Surrender LGCs for annual LRET.  If you do not surrender sufficient LGCs to acquit your annual LGC Liability you must pay the Large-scale Generation Shortfall Charge (LGSC) for any LGC not surrendered over 10% of you annual requirement.
7. Notifies the Clean Energy Regulator of the STCs and LGCs surrendered.
   • Once all STC offers have been made for a quarter, the REC Registry will request that the liable entity ‘Notify the Regulator’.
   • This is the notification to the Clean Energy Regulator under section 45(1) of the Act.
   • If notification is not completed this may result in a shortfall charge.
8. Lodges Annual Energy Acquisition Statement (AEAS) for SRES and LRET plus applicable shortfall charge as required.
   • Provide Small-scale Technology Shortfall Charge, where STCs have not been surrendered for Quarters 1 – 4.
   • Provide Large-scale Generation Shortfall Charge, if applicable.
9. Pays STC and LGC surrender fee.

The Clean Energy Regulator

• Assesses and finalises SRES and LRET assessments until 30 September.
• Notifies of SRES and LRET assessment.
• Notifies acceptance of STCs and LGCs.