Our Compliance Update keeps you informed of activities related to our Compliance and Enforcement Priorities and other important information to help you comply with our schemes.
Outstanding Renewable Energy Target (RET) shortfall charge debts
The agency has no tolerance for entities attempting to delay meeting their compliance obligations or avoid paying their shortfall debts. Appropriate action will be taken to pursue recovery of debts through any means available.
For the 2022 RET liability assessment year, 14 entities failed to meet their surrender obligations and failed to pay their shortfall charge debts on time. A significant number of those entities have now been issued with statutory demands for repayment of debts, and the agency has commenced applications to wind up entities that failed to discharge their shortfall debt in full. We have also reported entities to other Commonwealth regulators such as the Australian Securities and Investments Commission in cases of potential solvency concerns.
RET – Enforceable Undertakings
These undertakings demonstrate that the agency requires the highest standards of compliance and integrity within the Small-scale Renewable Energy Scheme (SRES) to access the Commonwealth financial incentive, and takes decisive action where they are not met, ensuring businesses and consumers can have confidence in Australia’s solar industry.
Trina Solar (Australia) Pty Ltd
Following an extensive assurance process, Trina Solar, at its expense, was required to:
- remove and replace all the solar panels on over 100 systems across Australia
- transport one panel from each system to a testing facility
- have each panel extensively tested for safety and performance.
CER is satisfied that the relevant panels meet the appropriate safety and quality standards.
The enforceable undertaking resulted from Trina Solar’s failure to comply with panel eligibility requirements as the panels were built in facilities without the required certification or were manufactured to an outdated standard. See further information here.
One Stop Warehouse Finance Pty Ltd
In August 2020 the agency accepted an enforceable undertaking from SRES Agent One Stop Warehouse Finance Pty Ltd. One Stop Warehouse, at its expense, had an accredited installer inspect 359 of the 379 solar PV systems and rectify any issues identified. For the 20 systems that were not able to be inspected, 1909 Small-scale Technology Certificates (STCs) were surrendered (approximate value of $69,000).
As part of its undertakings One Stop Warehouse was also required to develop and implement comprehensive compliance procedures to minimise the risk of future contraventions.
SRES agents are a primary control in ensuring the integrity of STCs created. We expect that all SRES agents have the appropriate procedures in place to verify third party claims and ensure the eligibility requirements of systems are met.
Registered Scheme Auditors – rotation requirements
To avoid the risk of over-familiarity between the auditor and participant and to ensure ongoing independence in that relationship, auditors must not be the audit team leader for more than 5 consecutive audits of the same kind with the same industry participant.
The Regulator has refused a request from an auditor for an exemption to this requirement. Auditors are registered under the National Greenhouse and Energy Reporting Act 2007 and their independent assurance role is a key compliance monitoring measure. The rotation requirements are designed to ensure that auditors looking at the ACCU Scheme (formerly Emissions Reduction Fund), National Greenhouse and Energy Reporting (NGER) and Safeguard facilities, remain strictly independent from the audited entities.
ACCU Scheme compliance update
The agency continues to implement the Australian Carbon Credit Unit (ACCU) Review Panel’s recommendation on the Human-Induced Regeneration (HIR) Method (Recommendation 8). The agency recently published guidance for HIR projects which outlines the agency’s expectations around information and record keeping for both registration and crediting. The guidance describes requirements to demonstrate the causal relationship for suppression, the removal of suppressors, and the consistent application of FullCAM guidelines.
Over time the information provided by most HIR project proponents to describe suppressors and project activities has become more detailed and we now expect considerable supporting evidence. The agency expects that project proponents understand their reporting obligations and comply. Where proponents provide such information, the agency can conduct the analysis necessary to implement Recommendation 8 and issue ACCUs more quickly than would otherwise be the case.
The agency has required proponents to provide additional information and evidence, and resubmit applications, to ensure projects are complying with scheme requirements. The agency withholds ACCU issuance until satisfied of compliance. Where intentional or reckless non-compliance is identified, the agency will take escalated compliance action.
If you have information on potential fraudulent or non-compliant behaviour, report it today.