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Renewable Energy (Electricity) Bill 2000

Part 4 Renewable energy certificate charge

Division 1 Liability to charge

35   Liable entities

                   A person who, during a year, makes a relevant acquisition of electricity is called a liable entity .

Note:          Relevant acquisition is defined in section 31.

36   Charge payable by liable entity

             (1)  Subject to subsection (2), if a liable entity has a renewable energy certificate shortfall for a year, renewable energy certificate charge is payable in respect of the shortfall.

             (2)  No renewable energy certificate charge is payable by a liable entity for a year if its renewable energy certificate shortfall for the year is less than 10% of the liable entity’s required renewable energy for the year. However, the renewable energy certificate shortfall becomes a carried forward shortfall for the year.

             (3)  Renewable energy certificate charge imposed in respect of a liable entity’s renewable energy certificate shortfall for a year is payable by the liable entity.

37   Amount of charge

                   The amount of renewable energy shortfall charge payable by a liable entity is worked out using the formula:

where:

rate of charge is the rate of charge for the year as specified under the Renewable Energy (Electricity) (Charge) Act 2000 .

38   Determination of renewable energy certificate shortfall

                   The following method statement shows how to work out a liable entity’s renewable energy certificate shortfall for a year.

Method statement—working out the renewable energy certificate shortfall

Step 1.    Work out the total amount, in MWh, of electricity acquired by the liable entity during the year under relevant acquisitions.

Step 2.    Multiply the total electricity acquired by the renewable power percentage for the year and round the result to the nearest MWh (rounding 0.5 upwards). Add to the result any carried forward shortfall from the previous year or subtract any carried forward surplus for the previous year. The result is the liable entity’s required renewable energy for the year.

Step 3.    Subtract the total value, in MWh, of renewable energy certificates surrendered to the Regulator for that year by the liable person from the required renewable energy for the year.

Result:   If the result is greater than zero, the liable person has a renewable energy certificate shortfall for the year equal to the result.

              If the result is zero, the liable person does not have a renewable energy certificate shortfall for the year.

              If the result is less than zero, the liable person has a carried forward surplus for the year.



 

Division 2 Renewable power percentage

39   Regulations to specify renewable power percentage

             (1)  The renewable power percentage for a year is the percentage specified in the regulations. The regulation specifying a percentage for a year must be made on or before 31 March in the year.

             (2)  If the regulations do not specify a percentage for a year, the percentage for the year is:

                     (a)  for the year commencing on 1 January 2001—0.24%; and

                     (b)  for any later year—the rate worked out using the formula:

             (3)  Before the Governor-General makes a regulation under subsection (1), the Minister must take into consideration:

                     (a)  the required GWh of renewable source electricity for the year; and

                     (b)  the amount estimated as the amount of electricity that will be acquired under relevant acquisitions during the year; and

                     (c)  the amount by which the required GWhs of renewable source electricity for all previous years has exceeded, or has been exceeded by, the amount of renewable source electricity required under the scheme in those years.

             (4)  The amount of renewable source electricity required under the scheme in a year is worked out using the formula:

             (5)  A failure to comply with subsection (3) does not affect the validity of the regulations.

40   Required GWh of renewable source electricity

                   The required GWh of renewable source electricity for a year is set out in of the following table:

 

Required GWh of renewable source electricity

Year

Required additional GWh

2001

400

2002

1100

2003

1800

2004

2600

2005

3400

2006

4500

2007

5600

2008

6800

2009

8100

2010 and later years

9500



 

Division 3 Other provisions related to the charge

41   Arrangements to avoid or reduce renewable energy shortfall charge

                   If:

                     (a)  a liable entity makes an arrangement; and

                     (b)  as a result of the arrangement the liable entity’s renewable energy certificate shortfall in a year is reduced; and

                     (c)  in the Regulator’s opinion the arrangement was made solely or principally for the purpose of avoiding payment of renewable energy shortfall charge otherwise than in accordance with this Act;

the liable entity is liable to pay for the year an amount of renewable energy shortfall charge equal to the amount that, in the Regulator’s opinion, the liable entity would have been liable to pay if the arrangement had not been made.

42   Application of Act to Commonwealth

             (1)  The Commonwealth is not liable to pay renewable energy shortfall charge (including additional renewable energy shortfall charge) that is payable under this Act. However, it is the Parliament’s intention that the Commonwealth should be notionally liable to pay renewable energy shortfall charge (including additional renewable energy shortfall charge).

             (2)  The Minister for Finance may give such written directions as are necessary or convenient for carrying out or giving effect to subsection (1) and, in particular, may give directions in relation to the transfer of money within an account, or between accounts, operated by the Commonwealth.

             (3)  Directions under subsection (2) have effect, and must be complied with, despite any other Commonwealth law.

             (4)  In subsections (1) and (2):

Commonwealth includes:

                     (a)  an Agency (within the meaning of the Financial Management and Accountability Act 1997 ); and

                     (b)  a Commonwealth authority (within the meaning of the Commonwealth Authorities and Companies Act 1997 );

that cannot be made liable to taxation by a Commonwealth law.

43   Cancellation of exemptions from charges

             (1)  This section cancels the effect of a provision of another Act that would have the effect of exempting a person from liability to pay charge payable under this Act.

             (2)  The cancellation does not apply if the provision of the other Act:

                     (a)  commences after this section commences; and

                     (b)  refers specifically to charge payable under this Act.