This page describes annual energy savings targets set for electricity retailers and how they are met under the Energy Savings Scheme
Annual energy savings targets
To meet the objectives of the Energy Savings Scheme, the Act sets annual energy savings targets. It requires electricity retailers and Liable Entities (or Scheme Participants), to meet these targets by purchasing and surrendering energy savings certificates.
It also provides for parties to be accredited to create energy savings certificates from specific energy savings projects. These parties are known as Accredited Certificate Providers.
Annual energy savings targets
The annual energy savings targets are expressed as a percentage of the Liable Entity's total annual liable electricity acquisitions. They increase each year until 2014, after which they remain steady until 2020. The energy savings target for 2011 was 2.5% of all liable acquisitions made during the compliance year. This is equivalent to 1,334,259 MWh of energy saved, or 1,414,315 certificates.
Energy savings shortfall and penalties
The Act makes provisions to allow Liable Entities who do not have enough certificates to meet their individual energy savings target (referred to as an energy savings shortfall) to either:
- carry forward the energy savings shortfall, up to a maximum of 10% of their individual energy savings target, to the next compliance year, or
- make payments in lieu of surrendering certificates (referred to as a penalty).
To help manage compliance with the scheme, the Act empowers the Independent
Pricing and Regulatory Tribunal (IPART), as Scheme Regulator and Scheme Administrator, to impose audit requirements on the parties that participate in the scheme. We have established a panel of independent third-party auditors, known as the Audit Services Panel, to undertake these audits.
The Electricity Supply Act 1995 prescribes IPART’s functions as Scheme Administrator and Scheme Regulator for the Energy Savings Scheme. Under the Act, IPART must submit a report on compliance with the scheme by participants by no later than 31 July each year. The Minister is required to table the report before both Houses of Parliament. Once the report is tabled, it is made publicly available.
Annual Report to the Minister 20121.25MB PDF FileIPART is required to submit a report on compliance by all participants (both Liable Entities and Accredited Certificate Providers) by no later than 31 July each year. This is the fourth compliance report, covering the 2012 calendar year.
Annual Report to the Minister 20111.12MB PDF FileIPART is required to submit a report on compliance by all participants (both Liable Entities and Accredited Certificate Providers) by no later than 31 July each year. This is the third compliance report, covering the 2011 calendar year.
Annual Report to the Minister 2010502.63KB PDF FileIPART is required to submit a report on compliance by all participants (both Liable Entities and Accredited Certificate Providers) by no later than 31 July in each year. This is the second compliance report, covering the 2010 calendar year.