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.

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.

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.

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.