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.
Prosecution update
An investigation conducted by the Clean Energy Regulator (CER) has resulted in the conviction of Mr Gavin Brady, Director of Shine Tech Solar Pty Ltd. Between October 2020 and April 2021, Mr Brady received a financial benefit by falsely claiming to have installed 11 solar photovoltaic (PV) systems that were never installed.
On 1 February 2023, Mr Brady pleaded guilty in the Moorabbin Justice Centre to 5 offences of dishonesty under the Commonwealth Criminal Code. The Magistrate imposed a Community Correction Order for 2 years, requiring Mr Brady to complete 300 hours of unpaid community work within 2 years. The Magistrate also made a reparation order requiring Mr Brady to compensate the agent for an amount totalling $48,528. The agent has surrendered an equivalent number of certificates to those unlawfully created. Read the full media report on this matter.
On 14 December 2022, the CER commenced civil penalty proceedings in the Federal Court of Australia against a company, and 2 individuals – a current director and former director – for contraventions of s.24B(1) Renewable Energy (Electricity) Act 2000 (Cth). The company's business includes installing solar panel systems in Australian homes. The proceedings were instituted because of false information being provided to the CER by the company and the individuals. That false information related to the identity of the persons who actually carried out the installations of the solar panel systems and the actual installers' Clean Energy Council (CEC) accreditations. The false information was relied upon by the CER and other companies in the creation of small-scale technology certificates (STCs) in the Renewable Energy Certificate Register. The matter had its first court date at the Federal Court in Brisbane on 16 February 2023.
The CER will continue to refer briefs of evidence to the Commonwealth Director of Public Prosecutions (CDPP) concerning the alleged giving of false or misleading information in relation to solar PV installations. We will also continue to commence civil penalty proceedings with respect to contraventions of legislation administered by the CER.
Compliance and assurance for the Australian Carbon Credit Unit (ACCU) Scheme
The CER has begun to implement the ACCU Review Panel's recommendation on the Human Induced Regeneration (HIR) method. This means that ACCU crediting applications may take longer to process while CER staff review data and evidence on suppressors in the project's baseline period and their removal or cessation during the crediting period. Many proponents already provide large amounts of information, which will be adequate to meet the evidentiary requirements to implement the HIR recommendation. Some project proponents that have provided relatively less evidence and information may receive formal Requests for Further Information as part of this process.
Enforceable undertakings
In 2021, CER accepted Enforceable Undertakings for Peabody Australia Holdco Pty Ltd and Diamond Offshore General Company LLC to improve the quality of their NGER reports. The CER can enter into a voluntary but enforceable undertaking (EU) with NGER reporters. Once an EU is agreed, its requirements have regulatory effect.
The CER is closely monitoring enforceable undertakings with 2 NGER reporters, one of which is also a Safeguard reporter. The 2 reporters were identified as having a history of submitting incomplete and inaccurate reports. The EUs require the companies to hire expert assistance to review and improve reporting governance, improve their internal reporting systems, and ensure their emissions reporting is “signed off” at CEO or board level.
CER monitors compliance with these EUs closely and the companies are complying with all requirements.
Warning on unlawful sharing of passwords and logins to CER registry systems
The CER operates a number of registries and online systems including the Australian National Registry of Emissions Units (ANREU) and the Renewable Energy Certificate (REC) Registry.
Persons and entities using these registries are reminded of their legal obligations to not share login details or passwords. The CER is monitoring and will take enforcement action in response to such breaches.
Under the ANREU Act and Regulations, a person contravenes a civil penalty provision if they allow any other person to gain, or try to gain, unauthorised access to the Registry (Section 27(4) of the Act and Regulation 34(2)), with a maximum civil penalty of 10,000 penalty units (equivalent to $2,750,000 per occurrence of such unlawful access). CER may also suspend access to accounts where it believes such accounts are being used for unlawful purposes.
Under the terms and conditions for access to the REC Registry system, CER may suspend or terminate a REC Registry account if an account owner or any user has breached these conditions – including section 3.1 which prohibits the disclosure of any passwords for the account to any other person, or where a user allows 'any person other than a user to use the account'.
Sharing of login credentials can also result in a review of whether a person remains a fit and proper person for participation in CER administered schemes.
Where we see suspicious transactions in our registries, or patterns of transactions, we disclose the data to other Australian Government regulators including the Australian Transaction Reports and Analysis Centre, Australian Taxation Office and Australian Securities and Investments Commission.
STC compliance checks and enforcement action ramping up
CER is continuing to fail STC applications which do not meet the installer on-site attendance and other requirements.
Small-scale Renewable Energy Scheme participants are reminded that evidence in the form of selfie photographs of the CEC accredited installer on-site should include the distinct stages in the background of each image. These must be collected at a minimum of:
- job setup taken in front of the letterbox with no solar panels on the roof
- mid-installation taken when the racking is installed
- final commissioning image of the inverter or the completed solar panel array.
CER has been ramping up the volume of assessments conducted and seeing a high overall level of compliance in this area. We will continue to fail certificates where evidence does not demonstrate this requirement, and where necessary enforcement action may be undertaken if false evidence is provided.
If you have information on potential fraudulent or non-compliant behaviour, report it to cer-referrals@cleanenergyregulator.gov.au today.