The Clean Energy Regulator (CER) has made available information for organisations meeting their liability under the carbon pricing mechanism –
During the fixed price period, the Clean Energy Regulator advises that “a business must meet liability at two points in the year during the fixed price period:
- “Against the Interim Emissions Number by 15 June of the same financial year, and
- Against the Final Emissions Number by February 01 of the following financial year.
“Liable entities can meet their liabilities by either surrendering units to meet obligation, or paying a unit shortfall charge.
Surrender
“Eligible emissions units can be surrendered to meet the obligation.
“During the fixed price period, to meet the liability through unit surrender, the following conditions must be met:
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15 June (fixed price year only) |
Report interim emission numbers, if you have any. Surrender units covering interim emissions numbers to avoid a unit shortfall. Carbon units are available 1 April to 15 June from the Clean Energy Regulator |
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15 June + 5 business days (fixed price year only) |
If not enough units are surrendered to cover interim emissions numbers, a unit shortfall charge is due and payable and late payment penalties start to accrue. |
|
1 February |
Surrender units to cover emissions number. Carbon units are available emissions number publication date to 1 February from the Clean Energy Regulator |
|
1 February + 5 business days |
If not enough units are surrendered to cover emissions number, a unit shortfall charge is due and payable and late payment penalties start to accrue. |
“During flexible price (1 July 2012 – 30 June 2015), the final surrender date is the single point for 100 per cent of an entities liability.
Unit Shortfall Charge
“If a liable entity does not meet its emissions obligations through the surrender of units, then it will be subject to a unit shortfall charge for those units it has not surrendered.
- “The unit shortfall charge will be 130 per cent of the fixed charge unit price for the relevant fixed charge year.
- The unit shortfall charge will be up to 200 per cent of the benchmark average auction price for the relevant period in the flexible period.
“When a unit shortfall charge is imposed on a liable entity, it is payable within five business days from the surrender date.”
AEBN comment
The Australian Environment Business Network (AEBN) will be holding the forthcoming Australia’s Carbon Price Update Seminar on 28 August 2012 in Melbourne to assist businesses to understand and meet their statutory obligations under the Clean Energy Act and National Greenhouse and Energy Reporting (NGER) Act.
The Seminar will provide a regulatory and legal perspective on liability, carbon claims, cost pass through, contracts, dealing with suppliers, customers and much more. The Seminar will also include the tools for ‘developing and implementing a carbon strategy for your business’.
A detailed program and on-line registration is now available.
Please register early as places are limited.
