Persons required to participate in the Energy Savings Scheme, known as Scheme Participants, must meet an individual energy savings target each year.
A Scheme Participant meets its individual energy savings target by surrendering energy savings certificates (ESCs) equivalent to the individual energy savings target.
If the Scheme Participant fails to meet its individual energy savings target it has an energy savings shortfall and is liable to pay an energy savings shortfall penalty in respect of that year.
Each Scheme Participant must lodge an annual statement detailing its individual energy savings target, the number of ESCs surrendered and any energy savings shortfall.