The first compliance period for the Peak Demand Reduction Scheme (PDRS) is from 1 November 2022 to 31 March 2023. 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 year, 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.
We will notify you of any shortfall penalty in a Notice of Assessment. Any shortfall penalty payable for the 2022-23 compliance period must be paid by 2 May 2024.
More information is available on the Scheme Participant requirements page.
Scheme penalty rate
The PDRS scheme penalty rate for the 2022–23 compliance period is $2.35 per certificate. The penalty rate will be indexed annually by the CPI. We will publish the penalty rate on our website before the compliance period begins on 1 November each year.