Reminding Scheme Participants of Their Compliance Obligations

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As participants in the NSW Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS), you have various obligations you must meet to comply with the schemes. This article provides an overview of the key compliance obligations and includes guidance and quotes directly from IPART’s Compliance Guide – Scheme Participants to remind you of what is required.

Notify IPART of PDRS Exemptions and Liable Acquisitions
Under the PDRS, you must notify IPART of any exempt electricity loads or liable acquisitions from non-market sources. According to the Compliance Guide, “You must notify us whether your PDRS liable acquisitions for the period between 2:30pm and 8:30pm AEST on each of the 4 peak days include:

  • exempt electricity loads, or
  • purchases of electricity from a person other than the Market Operator.”

IPART requires a simple yes or no notification by the due date specified in the compliance timeline. Failure to provide this notification can result in significant penalties.

Prepare Your Declaration of Liable Acquisitions

You must prepare a Declaration of Liable Acquisitions (DLA) to report your liable acquisitions under the ESS and PDRS. The DLA summarizes your liable acquisitions for the compliance period and forms the basis of your ESS Annual Energy Savings Statement and PDRS Individual Liable Demand submissions. According to the Compliance Guide, “The DLA requires you to report your liable acquisitions information under the following three categories:

  • Market acquisitions
  • Non-market acquisitions
  • Exempt loads”

The DLA template and instructions for how to prepare the DLA are available on IPART’s website.

Have Your DLA Audited (Unless Exempt)
Most scheme participants are required to have their DLA audited by an approved auditor prior to submitting in IPART’s online system, TESSA. There are limited exemptions from the audit requirement as outlined in Section 5 and Figure 3 of the Compliance Guide. Where an audit is required, you must engage an auditor from IPART’s Audit Panel to conduct the audit in accordance with IPART’s Audit Guide – Scheme Participants.

Report in TESSA
You must use IPART’s online system, TESSA, to submit your:

  • ESS Annual Energy Savings Statement
  • PDRS Individual Liable Demand
  • PDRS Annual Statement

The information in your DLA provides the basis for completing these submissions in TESSA, where IPART will review your submissions, determine your compliance and issue a Notice of Assessment and any penalty invoices. Failure to submit in TESSA by the due dates can result in default assessments and significant penalties.

Pay Any Penalties
If IPART assesses any shortfall penalties based on your ESS Annual Energy Savings Statement or PDRS Annual Statement, you must pay these penalties by the due date to avoid further compliance action. Penalties can be paid through TESSA or offline using direct deposit.

To meet your obligations and avoid compliance issues, you should carefully review IPART’s Compliance Guide – Scheme Participants and the relevant legislation in full. By understanding your obligations, preparing thoroughly and reporting accurately, you can achieve compliance with the ESS and PDRS. Please contact IPART should you have any questions or require clarification on your obligations.

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