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Failure of large-scale generation certificates

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16 July 2019

The Clean Energy Regulator assesses information, data and documents submitted by nominated persons to determine whether large-scale generation certificates (LGCs) are eligible for registration. Assessment of information is made subject to section 26 of the Renewable Energy (Electricity) Act 2000 (REE Act), which may find LGCs ineligible for registration and failed in the REC Registry.

LGCs can be ineligible for registration for a number of reasons, the main being:

  • more certificates being created than the power station is eligible for due to user error
  • LGCs being created for the wrong time period
  • the use of auxiliary electricity, ineligible fuel or supplementary generation not been properly accounted for in calculating an entitlement to LGCs
  • a claim not supported by generation data (e.g. interval meter data) or other evidence
  • the electricity produced by the power station does not match other reliable, independent sources of information regarding that power station’s electricity generation, and
  • an analysis of generation data or other information shows anomalies, challenging the validity of electricity generation.

Notice of intent to determine certificates ineligible for registration

If the Clean Energy Regulator is not satisfied LGCs are eligible for registration, a notice of intent to determine certificates ineligible for registration (notice to fail) will be sent through the REC Registry.

The notice to fail serves to inform the nominated person that the Clean Energy Regulator intends to make an unfavourable decision and fail LGCs created for the power station. The notice to fail is made in reference to the relevant generation month of the power station, and states:

  • the number of LGCs to be failed
  • the reason for the intended decision
  • any action or additional information required of the nominated person before a final decision is made, and
  • the time limit that applies.

What should I do?

The nominated persons for an accredited power station must comply with conditions set out in a notice to fail. If you do not do this by the due date, all ineligible LGCs may be failed in the REC Registry.

You may also make an additional submission or provide additional information that enables the Clean Energy Regulator to be satisfied the LGCs are eligible for registration.

Timeframe

The nominated person for an accredited power station has a minimum of 14 days to comply with conditions set out in a notice to fail.

You may request an extension in time on the time limit set out in the notice, giving reason for your request. The Clean Energy Regulator may agree to, or refuse, the extension request. If you do not intend to make a submission or provide information, please notify the Clean Energy Regulator through the REC Registry as soon as practicable.

Failure of large-scale generation certificates

Following the notice period, and taking into consideration any additional information or submissions provided by the nominated person, the Clean Energy Regulator will make a final decision to determine the LGCs eligible for registration. You will receive a notice of this decision.

A record of failed LGCs will appear on your electricity generation return when it is opened for lodgement.

A record of the failed LGCs will be published on the public register of LGCs in the REC Registry.

A notice to fail does not prevent you from creating further LGCs relating to electricity generated for that power station for that generation month, in accordance with section 19 of the REE Act. Any further creation would need to be supported by any additional information previously required by the Clean Energy Regulator to enable it to determine the newly created LGCs are eligible for registration.

Review of decisions

A decision in relation to the registration of a certificate made under section 26 of the REE Act is a reviewable decision. The person who created the certificate may request that the Clean Energy Regulator reconsider the decision under section 66 of the REE Act. The request must be made in writing to the Clean Energy Regulator within 60 days from the date of decision. The Clean Energy Regulator must reconsider the decision and confirm, vary or set aside the decision.

The Clean Energy Regulator is taken to have confirmed the original decision if written notice of an intent to review the decision is not given within 60 days of the person’s request.

An application may be made to the Administrative Appeals Tribunal for review of the Clean Energy Regulator’s review decision to confirm, vary or set aside the original decision.

Improper creation of certificates

The Clean Energy Regulator’s response or action in respect of the creation of LGCs, including the improper creation of certificates, is taken in accordance with the agency’s compliance, education and enforcement policy.

A person commits an offence, under Subdivision C, Part 2 Division 4, of the REE Act, if they create a certificate they are not entitled to create.

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