The Peak Demand Reduction Scheme (PDRS) compliance period is from 1 November to 31 March. You must tell us how you will meet your obligations when you submit your annual statement. The annual statement and any elections you wish to make must be submitted to us by 18 March.
As a Scheme Participant, you can meet your obligations for the PDRS by:
- surrendering peak reduction certificates (PRCs)
- carrying forward a shortfall
- paying a shortfall penalty.
Carrying forward a shortfall
You can meet your individual certificate target by surrendering PRCs. If you don’t surrender the required number of certificates to meet your target, you can elect to carry forward a shortfall to the next compliance period. The maximum percentage of your individual certificate target that can be carried forward as a shortfall is:
- 20% for the 2022–23 compliance period
- 10% for all other compliance periods.
If you carry forward a shortfall you must pay it back at the end of the following compliance period, either by surrendering the required number of PRCs or by paying a shortfall penalty.
Shortfall penalties
If you don’t meet your individual certificate target by either surrendering certificates or carrying forward a shortfall, you must pay a shortfall penalty. Your shortfall penalty is equal to the number of PRCs in your shortfall, multiplied by the scheme penalty rate in dollars per PRC.