Liable Entities, described as Scheme Participants in the Energy Savings Scheme legislation, must meet individual annual energy savings targets based on their electricity market share in NSW. The targets started at approximately 0.4% of total electricity sales and increase gradually to 4% in 2014.

• Annual statements and audits

  Each Liable Entity must lodge an annual statement detailing their target, the number of energy savings certificates surrendered and any shortfall. These statements must be audited by independent auditors selected from a panel established by IPART.
  

• Responsibilities

  Liable Entities must calculate and meet individual annual energy savings targets, submit annual statement and do audits, and pay any penalties for failing to surrender sufficient energy savings certificates.
  

• Targets and penalties

  Each Liable Entity must meet an energy savings target by surrendering a required number of energy savings certificates. If a Liable Entity does not surrender sufficient certificates to meet its target, it will be liable to pay a shortfall penalty.

• List of Liable Entities

  Liable entities, known as Scheme Participants in the Regulation, include electricity retailers, prescribed electricity generators supplying directly to retail customers, and customers who purchase electricity directly from the National Electricity Market.

• Exemptions

  The Minister may grant full or partial exemption from the Energy Savings Scheme for electricity used in conjunction with emission-intensive or trade-exposed industries.

• The Ministerial Order

  Gazetted each year, The Ministerial Order lists the exempted sites, their location, the emissions-intensive trade-exposed activity being carried out and the proportion of exemption granted.