Before you apply for an emissions-intensive trade-exposed (EITE) exemption certificate it is important that you understand what activities are conducted on the site, electricity metering and other elements to calculate the amount of exemption in megawatt hours (MWh).
In your application you must define a 'use amount formula' that accurately represents the electricity that is a relevant acquisition of electricity (liable electricity) consumed for all EITE activities at a site. This is defined as the 'electricity use method advice' in the
Renewable Energy (Electricity) Regulations 2001 (the Regulations). The calculation of the amount of exemption in MWh then represents your certifiable amount.
This information will help you determine a use amount formula for your site, including
meter accuracy and gives some
This information should be read in conjunction with the
Renewable Energy (Electricity) Act 2000 (the REE Act) and the Regulations.
We encourage you to seek your own legal advice and support.
Identify if you conduct one or more EITE activities or make EITE products by undertaking
eligible EITE activities.
Where an EITE activity occurs over several sites, with an intermediate product transferred between the sites as part production of the final product, the sites may constitute an
The certifiable amount must be calculated for each site that is part of the activity group and a separate application form submitted for each site.
Where multiple activities are carried out at a site and are an activity group you need to:
Electricity that can be considered for your certifiable amount of exemption is outlined below.
If you receive liable electricity from an electricity retailer you will consider:
You will also consider:
Acquisitions and network exemption for more details about liable electricity.
If you are the same legal entity that is eligible for an exemption certificate and reports liable electricity as a liable entity under the legislation, you will consider the following:
See Acquisitions and network exemption for more details about liable electricity.
You must identify what meter(s) are required for the use amount formula at the site for the EITE activities.
If you identify a meter, whether alone or as part of a formula with other elements, you must provide details of the meter. This includes, as applicable the:
If your meter reads kilowatt hours (kWh) you must convert this measurement to MWh for the purpose of the use amount formula. This ensures that your certifiable amount represents MWh. To do this you divide kWh by 1000.
You must consider whether metering data is appropriate to identify the use amount formula and provide an explanation as to why or why not.
If applying for the first time skip this step, continue to step six.
If you have not requested an amendment to include adjustments to the previous nominated 12 month period certifiable amount then you must include adjustments to the coming nominated 12 month period.
Review your meter readings for the previous nominated 12 month period that represents the certifiable amount to see if they were adjusted. Include adjustments to the use amount formula for the current application year.
For example, your settlement data for your nominated 12 month period (2018 or 2019 certifiable amount) may have been adjusted by you, your electricity retailer, the Australian Energy Market Operator or other market operator. This adjustment could increase or decrease the electricity you consumed to produce the relevant product for that nominated 12 month period. You must report the adjustment by including it in the use amount formula for the nominated 12 month period that covers the current application year (2020 certifiable amount).
amending an exemption certificate for more information.
Meters must be used rather in preference to other elements to calculate your certifiable amount. If necessary, you can include other elements in the use amount formula where it is considered that meters are insufficient to calculate the certifiable amount. In this case you must provide a use amount formula you consider is appropriate to identify the certifiable amount of electricity. You must explain:
You can nominate the use amount period. Meter data for this year must reflect a:
For example, your nominated 12 month period may start on 1 January to 31 December or from 1 October and end on 30 September.
We aim to issue a certifiable amount in MWh with a confidence interval of 95 per cent or higher.
A correctly reported accuracy includes the associated confidence interval with a default confidence interval of 95 per cent most commonly used.
This means that the certifiable amount, when calculated by the use amount formula, must have an accuracy of 5 per cent or 5000 MWh, whichever is lower. For example, a site with a calculated certifiable amount of:
Meter accuracy is an important aspect of the data you use to calculate your certifiable amount.
Network billing meters are considered absolutely accurate. If the use amount formula only uses billing meters then the accuracy is 0 per cent and 0 MWh.
Non billing meters (this is check meters) are also included in the rules. For these meters you need to check the meter's specifications. Most non-billing meters have an accuracy between 0.5 and 2 per cent. Consider using the following options to ensure your calculation is as accurate as it can be:
Meters should be used rather than using other elements to calculate your certifiable amount.
We have provided the following examples to help you to determine a use amount formula. The use amount formula must be reflective of your certifiable amount for the EITE activity conducted at the site.
The following examples are related to any eligible EITE activity.
A site has one billing meter and all the site's electricity is used for an EITE activity. This meter measures relevant acquisitions of electricity (liable electricity) supplied to the site, that is electricity consumed for the site to produce the EITE activity.
The certifiable amount for the EITE activity is the sum of the meter.
A site has two meters, conducts EITE activities and conducts non-EITE activities.
Meter one is a billing meter for the site that measures liable electricity supplied to the site, that is electricity consumed at the site. There is no non-liable electricity used at the site.
Meter two is an internal meter for the site that measures non-EITE activities, that is electricity that is not eligible for your certifiable amount.
The certifiable amount for the EITE activity is the sum of meter one minus meter two.
Only the accuracy of the non-billing meter needs to be considered, that is meter two. If most of the site's electricity is used for the non-EITE activity then an alternative formula just using meter one may be more accurate.
About The Clean Energy Regulator
Carbon Farming Initiative
Carbon Pricing Mechanism
National Greenhouse And Energy Reporting
Renewable Energy Target
Emissions Reduction Fund
Our Systems And Their Resources
Clean Energy Markets
Data and information
Subscribe to email updates
Information Publication Scheme
Freedom of Information
The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.