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When you need an audit report

21 October 2020

You will need an audit report if your facility’s exemption is expected to be 15,000 megawatt hours (MWh) or more in your nominated 12 month period and it is your first application for an exemption certificate for the facility under the electricity use method.

If you are unsure whether you will consume 15,000 MWh or more in your 12 month period we encourage you to get an audit report.

Why is an audit report required?

An audit report provides assurance that the:

  • emissions-intensive trade-exposed (EITE) activity is eligible
  • use amount formula reflects the amount of exemption in MWh. This is the certifiable amount, which represents relevant acquisitions of electricity (liable electricity) used to undertake the EITE activity
  • use amount formula does not include electricity that is not eligible - non-liable electricity, and
  • reasons for amending one or more liable entities are reasonable.

An audit report provides details of the application year and the use amount formula including why meters, substations, equipment loads or other elements are reflective of the formula.

Who can complete an audit report?

An audit report must be completed by a Category 2 registered greenhouse and energy auditor who has no conflict of interest. The audit must be conducted in accordance with the relevant requirements for assurance engagements under the National Greenhouse and Energy Reporting (Audit) Determination 2009. Ensure that you engage with your auditor early, so that the audit report is submitted with your application. We recommend you engage with your auditor at least 4 months before you want to submit your application.

How to provide an audit report

You must attach an audit report to your:

  • exemption certificate (electricity use method) application when you apply for the first time for the facility and the amount of exempt electricity consumed to produce the EITE products exceeds 15,000 MWh for the nominated 12 month period, and
  • change of liable entity / multiple liable entities form if your use amount formula is materially different from what was issued initially and the amount of electricity you consume to produce the relevant product exceeds 15,000 MWh for the nominated 12 month period.

You must provide a new audit report every three years, following your first exemption certificate (electricity use method) form application that requires an audit report. For example, if you applied for a 2018 exemption certificate application year with an audit report your next audit report is not required until the 2021 exemption certificate application year.

Clean Energy Regulator can request an audit report

We can request an audit report to be provided with your application for an exemption certificate if we believe that the use amount formula for the site is likely to be materially different from what was reported in the current or previous year’s application.

We can make this request under 22UG (3) – (4) of the Renewable Energy (Electricity) Regulations 2001, and a decision to request an audit report is a reviewable decision under Part 8.

See Internal review of decisions for guidance on seeking a review of the assessment outcome.


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