Wholesale acquisitions of electricity
Under the Renewable Energy (Electricity) Act 2000 (the Act), persons making wholesale acquisitions of electricity (relevant acquisitions) are required to demonstrate that they are supporting the generation of renewable electricity by purchasing increasing amounts of renewable energy certificates (RECs). These persons, called liable parties, demonstrate compliance by surrendering RECs to the Office of the Renewable Energy Regulator (ORER) annually between 1 January and 14 February for the previous calendar year (compliance year).
In most cases, relevant acquisitions are made by large purchasers of electricity, such as electricity retailers or big electricity generation companies. There are two types of relevant acquisitions:
- wholesale acquisitions; and
- notional wholesale acquisitions.
Sections 31 to 34 of the Act provide details about relevant acquisitions. Actual and potential liable parties are encouraged to review these sections and where required seek independent legal advice on liabilities under the Act. Special exclusions apply for self-generators of electricity as stipulated under Section 31 (2) (b) and Section 33 (3) of the Act. However, the party must be able to demonstrate that they meet the self-generator criteria described in the Act. For more information about determining and discharging liabilities under the Act.
Annual Energy Acquisition Statement and Renewable Energy Shortfall Statement
All liable parties who make relevant acquisitions under the Act are required to report their acquisitions for each compliance year. Part 3 of the Act, relating to the acquisition of electricity, outlines the electricity acquisitions that attract a liability under the legislation. For more information about the Annual energy acquisition statement and renewable energy shortfall statement.
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