This information applies to eligible emissions-intensive trade-exposed (EITE) entities.

When applying for an exemption certificate, you must provide complete and accurate information. If we need to ask for or clarify any details, it will cause delays in the assessment and approval process.

False or misleading information

Under the Criminal Code Act 1995 it's a criminal offence to provide us with false or misleading information, including withholding information.

Electricity use amount formula

You need an electricity use amount formula to work out your certifiable amount in megawatt hours (MWh).

To ensure accuracy, it’s important to understand how the electrical system of your site works. This also helps if any changes occur with your site and you need to update the formula.

In order of priority, your use amount formula should include data from:

  • billing or internal meters
  • other elements.

When deciding on the formula, you should consider:

  • electricity use within and outside the EITE activity boundary (published by the Department of Climate Change, Energy, the Environment and Water)
  • meter and element accuracy
  • how robust the formula is
  • your certifiable amount period and proxy data (if applicable).

Relevant legislation: regulation 22ZHC of the Renewable Energy (Electricity) Regulations 2001.

How to work out your electricity use amount formula

You must use the electricity use method. You can use this method to calculate exemption amounts.

Exemption is based on metered electricity used to undertake the EITE activity in the year.

Relevant legislation: Division 5A of the Regulations.

Follow these tips then provide details in your basis of preparation report.

Keeping your use amount formula simple can help to reduce the amount of monthly data you need to submit. You can:

  • use brackets to resolve calculations in the correct order
  • use elements to allow for changing constants
  • avoid using more meters or elements than necessary.

Aim to have a confidence interval of 95% or higher. This means that the certifiable amount must be accurate within 5% or 5,000 MWh, whichever is lower.

If you need more information, contact us.

A certifiable amount period is a calendar year that represents either:

  • actual data (default)
  • actual data for at least 9 months with estimated (proxy) data for the rest of the year.

Proxy data is often used instead of actual data when errors occur with meters.

If you apply for an exemption certificate with proxy data:

  • contact us before applying to amend your exemption certificate.
  • we will approve or change your proposed certifiable amount period
  • you must lodge your data for the year within 30 days of when the actual data ended.

Consider if using metering data is suitable. You should assess:

  • the suitability of network billing meters, site incomer(s) or site-specific internal meters
  • the location of meters at the site
  • how to use metering data to calculate the certifiable amount
  • the meter accuracy.

Regardless of whether you use metering data you must:

  • include details of all meters in your basis of preparation report
  • add meters for your use amount formula in your application
  • explain why you have or haven’t used metering data.

This information will help us assess what electricity is eligible for exemption.

Meter accuracy

The accuracy of meters is an important factor for working out the certifiable amount.

Network billing meters are 100% accurate. This includes:

  • customer meters
  • national meter identifier
  • billing meters.

If your formula relies only on billing meters, then the margin for error should be 0% or 0 megawatt hours.

Non-billing meters are also included in the electricity market rules. This includes:

  • check meters
  • site specific meters
  • internal meters.

For these meters you need to check their specifications. Most non-billing meters have an accuracy of 98 to 99.5%.

Refer to the following to make sure your calculation is correct:

Consider using other elements if either:

  • there are no meters available
  • meters alone are inadequate to calculate the certifiable amount.

If you use other elements you must explain:

  • what it calculates
  • what testing or factors were used
  • why it’s appropriate.

You must also provide evidence to support your calculations for non-metered data.

What you need to provide

You must provide documents to support your exemption certificate application.

Some documents impact your eligibility while others help us to process your application quicker.

Relevant legislation: regulation 22O of the Regulations.

Basis of preparation report

This report should include how you worked out your use amount formula. You must make sure all details are current for the application year.

Your report must explain why your use amount formula is fit for purpose. It should also provide details about the site in clear, plain English such as:

  • statements against legislative references
  • relevant maps and schematics
  • site meter locations and related information
  • functions that are and aren’t part of the EITE activity boundary
  • on-site generator locations and how much electricity they generate and use
  • other elements and constants with an explanation of how you calculated them.

You can use the basis of preparation report template.

Download the template

You should also include the following details with your report if applicable.

Relevant legislation: subregulation 22O(2) of the Regulations.

For new activities at an existing site you must provide a statement that you:

  • have approval to carry out the activity at the site
  • will have evidence of approval by the time of making the application.

For new and existing sites you must provide a site map that shows:

  • where the activity or activities take place
  • the location of on-site generators and their nameplate rating (in MW)
  • electricity used at the site that isn’t a relevant acquisition of electricity
  • the connection to an electricity network with a capacity of 100 MW or more.

For new and existing sites you must provide detailed and well-annotated electrical line schematics. They must include:

  • all meters (billing and internal)
  • on-site generators (if applicable)
  • other technical information to support your use amount formula.

Prescribed person documents

You must provide documents that are applicable for your prescribed person category.

Relevant legislation: regulations 22S – 22T of the Regulations.

Refer to the legislation for the definition of a controlling person, operator and nominated person.

Relevant legislation: subregulations 22G – 22K of the Regulations.

A current electricity contract that has the:

  • applicant's name
  • electricity retailer(s)
  • start and end dates of the contract
  • customer billing meter(s) with physical site address.

If your electricity contract will end during the year, provide either:

  • evidence of a contract extension
  • details of the new retailer that you're likely to switch to.

A current electricity contract that has the:

  • applicant's name
  • electricity retailer(s)
  • start and end dates of the contract
  • customer billing meter(s) with physical site address.

Documents proving you operated the site for at least 6 months before applying and either:

  • the site used more than 30% of the electricity
  • the electricity used was a relevant acquisition.

Documents should have details that prove your prescribed person category such as:

  • ownership papers
  • electricity market registration papers
  • invoices
  • environmental approvals
  • Commonwealth statutory declaration.

The document(s) must state the applicant's name and electricity retailer status.

Documents proving you were the first prescribed person at the site to use over 30% of the electricity.

Documents should have details that prove your prescribed person category such as:

  • ownership papers
  • electricity market registration papers
  • invoices
  • environmental approvals
  • Commonwealth statutory declaration.

The document(s) must state the applicant's name and electricity retailer status.

Documents proving:

  • any of the prescribed persons above nominated you to apply for exemption
  • you are a controlling person for the primary activity (principal facility) of the site.

Documents should have details that prove your prescribed person category such as:

  • ownership papers
  • electricity market registration papers
  • invoices
  • environmental approvals
  • Commonwealth statutory declaration.

The document(s) must state the:

  • applicant's name
  • electricity retailer(s)
  • customer billing meter(s) with physical site address.

Provide an audit report

You must also provide an audit report if your activity or activities meet certain criteria. For more details refer to exemption certificate audits.

Submit monthly data

If you are issued an exemption certificate, you must submit monthly data for your certifiable amount.

You must submit monthly data at the end of the calendar year, likewise if the exemption certificate is amended. The certifiable amount is the benefit applicants receive after applying for an exemption certificate. The benefit is:

  • the calculated amount of electricity consumed within the emissions-intensive trade-exposed (EITE) activity boundary
  • used by liable entities to reduce their relevant acquisitions of electricity in their annual statements. For more information go to reporting liability.