The Energy Savings Scheme is established under Part 1, Schedule 4A of the Electricity Supply Act 1995 (the Act), Part 6 of the Electricity Supply (General) Regulation 2014 (the Regulation) and the Energy Savings Scheme Rule of 2009 (ESS Rule).

The Scheme Administrator administers the scheme according to the legislation.

In addition, the Energy Savings Scheme - Scheme Regulator Exemptions Rule No. 1 of 2016 (Exemptions Rule) sets out how the Scheme Regulator will determine that exempt loads have been correctly deducted by a Scheme Participant.

The Act

The Electricity Supply Act 1995 (the Act) sets out the legal framework of the Energy Savings Scheme. It also sets out the functions and responsibilities of the Scheme Regulator and Scheme Administrator.

The Regulation

The Electricity Supply (General) Regulation 2014 (the Regulation) which describes the core functions of the Scheme Administrator and the Scheme Regulator, supports the Act.

For the Scheme Administrator, the Regulation sets requirements for accrediting and auditing Accredited Certificate Providers, and rules around the creation and transfer of Energy Savings Certificates.

For the Scheme Regulator, the Regulation provides the principles governing compliance with the individual energy savings targets for Scheme Participants.

The Regulation is being updated to include administration and compliance reforms. The Office of Energy and Climate Change will consult on the Regulation in the second half of 2022. More information is available on the Energy website. We will provide further details on the changes to the Regulation as they become available.

The Exemptions Rule

Clause 22 of Schedule 4A of the Act allows the Minister to publish an Order in the Gazette granting a full or partial exemption from the Energy Savings Scheme in respect of any electricity load used by a specified person or in connection with a specified activity or class of activities.

As part of The Ministerial Order, the Minister also authorises the Scheme Regulator to make rules relating to assessment of deductions of exempt loads by Scheme Participants (ie, the Exemptions Rule).

The Exemptions Rule (as amended from time to time) provides clarity on the values that are used to calculate the proportion of the load that is exempt (Exempt Proportion) for a specified activity at a particular location, as well as the associated deduction for losses.