Quarterly STC Liability Surrender

RET Liable entities must surrender STCs in the REC Registry each quarter during the applicable surrender periods each quarter for the given compliance year.  Once STCs are accepted by the Clean Energy Regulator the STCs are permanently removed from the STC Market.

• For surrender periods see Timelines
• For determining the number of STCs that need to be surrendered see Determining Liability.

RET Liable entities can surrender each quarter:

• Clearing House STCs.  If these STCs have been purchased and no trade has occurred they can be surrendered at anytime as the creation date does not apply. If these STCs are traded they are considered STC market STCs.
• STC Market STCs.  If you are acquitting current year liabilities and wish to surrender STC Market STCs these must have a creation date on or before 31 December, of the previous year.

o   For example, a RET liable entity offers STC Market STCs in January 2012, during quarter 4 surrender period (29 October 2011 – 14 February 2012), for a 2011 STC liability.  In this case, only STC Market STCs created on or before 31 December 2011 are eligible for surrender. This is the same for STC Market STC offers for quarter 1 to 3 surrender periods (15 February – 28 April 2011, 29 April – 28 July 2011, 29 July – 28 October 2011).

• If a RET liable entity surrenders STCs in addition to the required surrender amounts for the relevant quarter they will have a carried forward surplus for the next quarter. This includes surplus that is carried forward to quarter 1 in the next year.

RET Liable entities must also 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 RET liable entity to ‘Notify the Regulator' in the REC Registry. 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.

RET Liable entities are required each quarter to pay an 8 cent surrender fee.

• When the surrender offer is accepted by the Clean Energy Regulator a STC surrender fee is generated by the REC Registry as a fee item.
• At the time of STC acceptance, emails are sent to the account administrator and appropriate account user indicating that a payment for the fee item be made within 28 days of the email notice.
• The surrender process is not finalised until the STC surrender fee is paid.

RET Liable entities have an STC shortfall when the number of STCs surrendered is less than the required surrender amount for the relevant quarter(s).  To avoid payment of the Small-scale Technology Shortfall Charge (STSC), RET liable entities must choose to purchase STCs directly from the STC market or from the STC Clearing House at a cost of $44 (incl GST) per STC prior to the surrender deadlines.  The Clean Energy Regulator recommends that STCs are purchased at least two weeks from the STC Clearing House prior to the quarter surrender deadline to allow for processing.

If RET liable entities have a 1 or more STC shortfall* they are required to pay the STSC. The STSC is:

• paid annually with the Annual Energy Acquisitions Statement/Small-scale Technology Shortfall Statement (AEAS/STSS) and must be lodged with the Regulator by 14 February for the give compliance year.  If you fail to pay the STSC with the AEAS/STSS, interest charge can be applied.  For more information about interest charge view section 70 of the Act.
• $65 per STC not surrendered for the 2011 and future compliance years. 
• not redeemable.  RET liable entities cannot make up a STC shortfall in any future quarter or annually.
• defined by the Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010 (SCharge Act).

Please note if RET liable entities are 1 STC short the Regulator under section 134 of the Act may publish a list of RET liable entities that do not discharge their liability through STC surrender.