Partial exemption for emissions-intensive trade-exposed activities
The RET legislation and regulations include provisions to provide partial exemptions from RET liability for electricity used in defined emissions-intensive trade-exposed (EITE) activities. Prescribed persons (typically entities that carry on these EITE activities) may apply for a partial exemption certificate (PEC).
Eligibility
The following EITE activities (as defined in schedule 6 of the regulations) are eligible:
- production of glass containers, production of bulk flat glass, production of methanol, production of carbon black, production of white titanium dioxide (TiO2) pigment, production of silicon, smelting zinc, integrated production of lead and zinc, aluminium smelting, production of high purity ethanol, production of magnesia, manufacture of newsprint, dry pulp manufacturing, cartonboard manufacturing, packaging and industrial paper manufacturing, printing and writing paper manufacturing and alumina refining.
Completing the Partial Exemption Certificate (PEC) Application
Information regarding eligibility and determination of the level of EITE assistance is contained in the PEC application form.
If an application is approved by the Regulator, the prescribed person will receive a PEC stating the amount of megawatt-hours of electricity for which exemption can be provided to the liable entity named on the PEC (usually the retail electricity supplier) for electricity used in the EITE activity in the year mentioned on the PEC.
Once issued with a PEC for a year, the prescribed person may need to apply for another PEC if there is a change of liable entity during the year, or if there are concurrent multiple liable entities for electricity used in the EITE activity in the year. Application forms covering these situations will be soon available from the ORER website.
Timelines for PECs (2010-2011)
2010
| Deadline | Activity | Who | Legislative Reference |
|---|---|---|---|
| 31 October | Lodge standard application for 2010 year* | Applicant | Reg 22W(1) |
| 31 December | Lodge application for 2010 year for a change of liable entity or second liable entity in the year* | Applicant | Reg 22W(2) |
| Lodge standard application for 2011 year* | Applicant | Reg 22X (1) |
2011
| Deadline | Activity | Who | Legislative Reference |
|---|---|---|---|
| 14 February | Lodge AEAS for 2010 year including copy of PEC issued | Liable entity | s44 |
| 30 June | Lodge application for 2011 year for a second liable entity in the year* | Applicant | Reg 22X (3) |
| 1 October | Information published on ORER website
|
ORER | s38 C(1)&(2) Reg 22E |
| 31 December | Lodge application for 2011 year for a change of liable entity in the year* | Applicant | s22X (2) |
| Lodge standard application for 2012 year* | Applicant | Reg 22X (1) |
* The timeline for ORER to issue a PEC for the 2010 and 2011 years is within the period of 60 days after receiving the application; however, if the Regulator sought further information in respect of the application, within the period of 45 days after receiving the further information. The details of a PEC must be published on the ORER website within 14 days after the PEC is issued.
Requirements for liable entities under the RET
To receive the exemption, the liable entity named on the PEC must obtain a copy from the person issued with the PEC and provide this copy to the Renewable Energy Regulator as part of its annual energy acquisition statement and annual renewable shortfall statement in February following the year mentioned on the PEC.
For more information regarding requirements for liable entities visit the Wholesale acquisitions of electricity page.
More information
ORER recommends that potential prescribed persons make themselves familiar with the legislation and if necessary seek their own legal advice prior to making an application for a PEC.
Visit
ORER has recently conducted a round of workshops regarding applying for a PEC.
To view the presentation visit - PEC presentation
For further advice contact the Partial Exemptions Team
Kim Collins
Manager
Partial Exemptions Team
E: kim.collins@orer.gov.au
Fiona Keen
Assistant Manager
Partial Exemptions Team
E: fiona.keen@orer.gov.au
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