Selling PRCs
After Accredited Certificate Providers (ACPs) have registered Peak Reduction Certificates (PRCs), they are able to sell them to buyers. Most PRCs are likely to be traded under a direct contract between an ACP and a buyer. They are transferred from seller to buyer through the certificate registry.
Contracts and prices are likely to vary, with no standard contracts or a recognised exchange for trading. As the market for PRCs matures, contracts for trading certificates may emerge, as they have for Energy Saving Certificates (ESCs) (see Selling ESCs).
Who will purchase PRCs?
Initially Scheme Participants will be the main buyers of PRCs. Scheme Participants are required under the Electricity Supply Act to surrender PRCs to meet their obligations.
As the number of PRCs created and familiarity with the PDRS increases, buyers could also include:
- ACPs that need to forfeit PRCs but don’t have enough on hand (forfeits occur when ACPs have improperly created certificates – usually found during an audit)
- intermediary agents who subsequently sell the PRCs to Scheme Participants
- organisations or individuals interested in voluntarily purchasing PRCs.
PRC pricing
The price for PRCs will vary depending on market conditions. IPART does not set the price.
As the market for PRCs matures, organisations such as the Australian Financial Markets Association and environmental brokers may provide regular updates on certificate wholesale market prices, as they currently do for ESCs under the Energy Savings Scheme. Subscription to these services typically involves a fee.
IPART's involvement
IPART is not involved in market transactions or negotiations. More information about IPART’s role as Scheme Regulator and Scheme Administrator is available on the IPART’s role page.