Targets and penalties

Individual scheme participant targets

ESS individual energy savings target

Scheme participants of the Energy Savings Scheme (ESS) are required to meet their individual energy savings target, calculated as per clause 9 of Schedule 4A to Electricity Supply Act 1995. 

The energy savings scheme target and energy conversion factor for each compliance period is published in Schedule 5 of the Electricity Supply Act - 1995. 

Your individual energy savings target is calculated in your ESS Annual Statement case in TESSA.

PDRS individual certificate target

Scheme participants of the Peak Demand Reduction Scheme (PDRS) are required to meet their individual certificate target, calculated as per clause 92 of Schedule 4A to the Electricity Supply Act 1995.

Your individual certificate target is a proportion of the scheme certificate target based on your individual liable demand and the scheme liable demand.

Your individual liable demand is calculated in your Individual Liable Demand case in TESSA, calculated as per clause 89 of Schedule 4A to the Electricity Supply Act 1995.

The scheme liable demand and scheme certificate target are published in our Relevant information for scheme participants spreadsheet.

Your individual certificate target is calculated in your PDRS Annual Statement case in TESSA.

Liable acquisitions

Liable acquisitions include the purchase of and supply of certain electricity. 

Liable acquisitions are defined in clause 10 of Schedule 4A to the Electricity Supply Act 1995 for the ESS and in clause 90 of Schedule 4A to the Electricity Supply Act 1995 for the PDRS and explained in detail in the Compliance Guide - Scheme Participants.

A scheme participant may be entitled to deduct from their liable acquisitions an exempt electricity load. Our Exemptions legislation page provides further information on exemptions.

Meeting your individual target

Scheme participants meet their ESS individual energy savings target by surrendering Energy Savings Certificates (ESCs) equivalent to their individual energy savings target.

Scheme participants meet their PDRS individual certificate target by surrendering Peak Demand Reduction Certificates (PRCs) equivalent to their individual certificate target.

A scheme participant may elect to carry forward a shortfall of up to 10% of their individual energy savings target or individual certificate target to the next year. This must be remedied in the next year.

Scheme participants nominate to surrender certificates or to carry forward a shortfall in their ESS Annual Statement or PDRS Annual Statement in TESSA, by the due dates listed on the Scheme participant compliance timeline.

Shortfall penalties

Energy savings shortfall penalty (ESS)

If a scheme participant fails to meet their individual energy savings target or shortfall carried forward from the previous year, they have an energy savings shortfall and are liable to pay an energy savings shortfall penalty by the due date listed in the scheme participant compliance timeline.

A scheme participant’s energy savings shortfall penalty is calculated in their ESS Annual Statement in TESSA, as per clause 15 of Schedule 4A to the Electricity Supply Act 1995.

Shortfall penalty (PDRS)

If a scheme participant fails to meet their individual certificate target or shortfall carried forward from the previous year, they have a shortfall and are liable to pay a shortfall penalty by the due date listed in the scheme participant compliance timeline.

A scheme participant’s shortfall penalty is calculated in their PDRS Annual Statement in TESSA, as per clause 98 of Schedule 4A to the Electricity Supply Act 1995.

Notification of a shortfall penalty

We will advise the scheme participant of any energy savings shortfall penalty (ESS) or shortfall penalty (PDRS) in the Notice of Assessment issued in the ESS Annual Statement or PDRS Annual Statement case in TESSA. We will also issue an invoice for the energy savings shortfall (ESS) or shortfall penalty (PDRS). Do not pay the penalty until you receive the invoice.

Scheme penalty rates

The Scheme Penalty Rate for each scheme are adjusted annually for movement in the Consumer Price Index. The Scheme Penalty Rate for each compliance period and scheme is published on our Relevant information for scheme participants spreadsheet.