Legal Framework and Rules

This page describes the legal framework that establishes the ESS

Legal framework

The Energy Savings Scheme is established under Part 9 of the Electricity Supply Act 1995 (the Act), Part 8 of the Electricity Supply (General) Regulation 2014 (the Regulation) and the Energy Savings Scheme Rule of 2009 (ESS Rule).

The Scheme Administrator administers the scheme according to the legislation.

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 Scheme Participant.

The Act

Read the Electricity Supply 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.

The Regulation

Read the Regulation

The Act is supported by the Regulation, which describes the core functions of the Scheme Administrator and the Scheme Regulator.

For the Scheme Administrator, the Regulation sets requirements for accrediting and auditing Accredited Certificate Providers, and rules around the creation and transfer of energy savings certificates.

For the Scheme Regulator, the Regulation provides the principles governing compliance with the individual energy savings targets for Scheme Participants.

Rules governing the scheme

Energy Savings Scheme Rule

Consolidated Energy Savings Scheme Rule of 2009 – 31 July 20182.25MB PDF FileThe Energy Savings Scheme Rule of 2009 in effect from 31 July 2018.

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

  • eligibility requirements, and
  • calculation methods for determining the number of energy savings certificates that can be created.

A summary of the changes and commencement dates can be found on the Scheme Changes page. 

Accredited Certificate Providers should familiarise themselves with the Energy Savings Scheme Rules.

The immediately preceding version of the rule is provided for reference on the Rule archive page.

The Exemptions Rule

The Electricity Supply Act (s119) allows the Minister to publish an Order in the Gazette granting a full or partial exemption from the Energy Savings Scheme in respect of any electricity load used by a specified person or in connection with a specified activity or class of activities.

As part of that Ministerial Order, the Minister also authorises the Scheme Regulator to make rules relating to assessment of deductions of exempt loads by Scheme Participants (ie, the Exemptions Rule).

The Exemptions Rule (as amended from time to time) provides clarity on the values that are used to calculate the proportion of the load that is exempt (Exempt Proportion) for a specified activity at a particular location, as well as the associated deduction for losses.