Legislative framework

The Energy Savings Scheme is established under Part 9 of the Electricity Supply Act 1995 (the Act) and Part 9A of the Electricity Supply (General) Regulation 2001 (the Regulation).

The Scheme Administrator administers the scheme according to the legislation and the Energy Savings Scheme Rule of 2009 (ESS Rule).

In addition, the Energy Savings Scheme - Scheme Regulator Exemptions Rule No. 1 of 2009 (Exemptions Rule) sets out how the Scheme Regulator will determine that exempt loads have been correctly deducted by the Liable Party.

The Act

The Act sets out the legal and technical framework of the Energy Savings Scheme. It also sets out the functions and responsibilities of the Scheme Regulator and Scheme Administrator.

Read the Electricity Supply Act

The Regulation

The Act is supported by the Regulation, which describes the operation of the scheme. 

For the Scheme Administrator, the Regulation provides:

• the core eligibility requirements for accreditation as an Accredited Certificate Provider
• the authority to impose conditions of accreditation, either as specified by the Regulation, or at the discretion of the Scheme Administrator
• rules around the creation and transfer of energy savings certificates
• the fees applicable to registering energy savings certificates.

For the Scheme Regulator, the Regulation provides the principles governing:

• its assessment of Liable Parties’ compliance with their individual energy savings target
• any adjustments to the energy savings shortfall
• the mechanism for the CPI adjustment of the penalty rate.

The Regulation also establishes powers of the Scheme Administrator and Scheme Regulator to audit Liable Parties and Accredited Certificate Providers.

Read the Regulation

Rules governing the scheme

Energy Savings Scheme Rule

The Energy Savings Scheme Rule applies to Accredited Certificate Providers and their energy savings projects.  It provides detail about:

• eligibility requirements of Accredited Certificate Providers
• calculation methods for determining the number of energy savings certificates that can be created.

Find out more about how the Energy Savings Scheme Rule is applied:

• methods for calculating energy savings
• the obligations of Accredited Certificate Providers
• how to apply for accreditation.

Note that any guidance provided is not a substitute for the Energy Savings Scheme Rule.  Accredited Certificate Providers are advised to familiarise themselves with the Energy Savings Scheme Rule:

Energy Savings Scheme Rule of 2009 - 22 December 2011159.19KB PDF FileThe Energy Savings Scheme Rule of 2009, or ESS Rule, sets out how Energy Savings Certificates can be created. This is the current ESS rule.

Previous versions of the Rule can be found in Publications.

The Ministerial Order and Exemptions Rule

The Exemptions Rule provides guidance to Liable Parties about claiming deductions from their total liable electricity load.

Under the scheme, deductions are allowed for electricity loads associated with emission-intensive, trade-exposed industries or activities.  These industries or activities are identified by the NSW Minister for Resources and Energy and are listed in the Schedule to the Ministerial Order. 

The Exemptions Rule defines how liable parties are to calculate exempt loads and additional deductions for network losses.  The Exemptions Rule also specifies the evidence that Liable Parties are to provide in support of their claim for the deduction.

Exemptions Rule19.19KB PDF FileThis version of the Exemptions Rule should be used for all calculations relating to liabilities for the surrender of certificates from 2010 and 2011. This should be read in conjunction with the Ministerial Order of 16 December 2011.

Ministerial Order - 16 December 201132.57KB PDF FileThe Ministerial Order of 16 December 2011 will apply from 1 January 2012, and will govern the calculation of exempt loads for the 2012 compliance year onwards, until revoked.

Previous versions of the Ministerial Order can be found in Publications.

Further detail regarding exemptions from the Energy Savings Scheme and the Ministerial Order, including applying for an exemption, can be obtained from the document Policy Framework – Energy Savings Scheme (ESS) Exemptions – Ministerial Order available on the NSW Department of Trade and Investment, Regional Infrastructure and Services website www.trade.nsw.gov.au.