About

The Energy Savings Scheme commenced on 1 July 2009. It is designed to increase opportunities to improve energy efficiency by rewarding companies who undertake eligible projects that either reduce electricity consumption or improve the efficiency of energy use.  Reducing electricity use will help NSW families and businesses to save money on their power bills and will shield customers from rising electricity prices and from future electricity price increases.

The ESS establishes legislated annual energy savings targets that must be met through the creation and surrender of Energy Savings Certificates (ESCs). In the first year the target has been set to 0.4 per cent of total electricity sales. The target will increase gradually to four per cent in 2014.

Electricity retailers and certain other parties such electricity generators who supply direct to a customer and market customers who buy or sell electricity in NSW are known as Scheme Participants. They are mandatory participants in the ESS.

Scheme Participants are required to meet individual energy savings targets based on the size of their share of the electricity market. If Scheme Participants fail to meet their targets, then a penalty is assigned. Some large electricity users, classified as emissions-intensive trade-exposed industries, will however be exempt from the Scheme.

The tradable ESCs are created by Accredited Certificate Providers (ACPs), when they carry out Recognised Energy Savings Activities as defined under the Energy Savings Scheme Rule.

In the first four years of the Scheme, it is estimated that 8.5 million megawatt-hours (MWh) of electricity will be saved. This is equivalent to around 8.5 million tonnes of carbon dioxide.

The Independent Pricing and Regulatory Tribunal of NSW (IPART) has two functions, as both the ESS Scheme Administrator and Scheme Regulator. These roles include assessing applications, accrediting parties to undertake eligible activities and to create certificates, monitoring ESS compliance and monitoring the performance of the Scheme Participants.

The Scheme Administrator also manages the online Registry which records the registration and transfer of certificates created from Recognised Energy Savings Activities.

• Click here for more information about the Energy Efficiency Target.
  
  
• Click here for more information about eligible activities for the creation of Energy Saving Certificates (ESCs).
  
  
• Click here for more information about the process of becoming an Accredited Certificate Provider (ACP).