Companies who carry out eligible emissions-intensive trade-exposed (EITE) activities may need to obtain and provide an audit report when applying for exemption certificates.

You need an audit report if you expect your certifiable amount to be 15,000 megawatt hours (MWh) or more for the certifiable amount period and either it:

  • is your first application for the site
  • has been 5 years since you lodged an audit report for the site.

We can request an audit report if:

  • your proposed use amount formula is very different from what you have reported before
  • we believe your certifiable amount is likely to exceed 15,000 MWh.

If you disagree with this decision you can request an internal review.

Relevant legislation: regulation 22UG(3)–(4) and part 8 of the Renewable Energy (Electricity) Regulations 2001.

Purpose of audit reports

An audit report provides assurance that you are eligible for an exemption certificate.

Audit reports support:

Audit reports underpin the accuracy and integrity of the certifiable amounts issued by us.

Who can complete an audit report?

A Category 2 registered greenhouse and energy auditor with no conflict of interest must complete the audit report.

Make sure you talk to an auditor early. This way you can lodge the audit report with your application. We recommend contacting your auditor at least 4 months before you submit your application.

Relevant legislation: part 3 of the National Greenhouse and Energy Reporting (Audit) Determination 2009.

Requirements for auditors

The audit should follow the relevant requirements for assurance engagements.

Auditors should be familiar with processes related to exemption certificate application. This includes understanding:

  • what a relevant acquisition of electricity is
  • the site layout, including metering arrangements, on site generation and activity boundaries.
  • what applicants must do for an exemption certificate and certifiable amount
  • relevant electricity market rules
  • current legislative terminology for the electricity use method.

When reviewing an application, auditors should consider if the applicant has:

  • shown they are accountable
  • given any false statements or withheld information
  • prepared a basis of preparation report that defines the EITE activity or activities on the site.

Auditors should also be able to tell us:

  • what they assessed during the audit process
  • whether they think any issues will appear in the future.

What should the audit report confirm?

Auditors need to verify if the applicant can provide appropriate metering data. Auditors must also be able to give a reasonable assurance conclusion for the application.

Metering data

Auditors need to confirm whether:

  • you believe the metering data is suitable to work out the amount of electricity use
  • the formula used to calculate the usage amount is valid.

If you don’t believe using metering data is suitable, you should choose another method and explain why.

Auditors should focus on the accuracy of the method. Our goal is to select the most precise method for working out the electricity use.

For more details refer to the requirements for exemption certificate application.

Relevant legislation: regulation 22O(h)(iii) of the Regulations.

Reasonable assurance conclusion

Auditors must give a reasonable assurance conclusion that:

  • the activity or activities meet the relevant criteria for eligible EITE activities
  • the application accurately and completely shows the use amount formula
  • the use amount formula includes only eligible electricity in the certifiable amount calculation
  • if the audit report is to amend an exemption certificate, your request to amend is reasonable.

Relevant legislation: regulation 22UH(3), 22S(3)(e) and 22T(2)(d) of the Regulations.