A Peak Reduction Certificate (PRC) is active for a limited time. It expires 3 years from the beginning of the compliance period when capacity is first made available.

This flow chart shows that PRC status changes from Active to Cancelled or Expired as described in the paragraph above.

For example, take a PRC that relates to capacity made available in the 2023–24 compliance period. That compliance period begins on 1 November 2023, so the PRC will expire 3 years later on 31 October 2026.

If a certificate isn’t used within the 3 years, it expires and cannot be used to meet an obligation – that is, it cannot be traded or surrendered.