Renewable Energy (Electricity) (Charge) Amendment Act 2009

Overview

The Renewable Energy (Electricity) (Charge) Amendment Act 2009 was enacted by the Parliament of Australia to address the need for increasing the rate of the renewable energy shortfall charge as stipulated under the Renewable Energy (Electricity) (Charge) Act 2000. This legislation was introduced to ensure that the renewable energy shortfall charge better reflects the costs associated with encouraging the use of renewable energy sources, thereby facilitating a more effective transition towards sustainable energy practices. The Act aims to amend the original Act by raising the shortfall charge from $40 to $65, effective for renewable energy certificate shortfalls occurring between 1 January 2010 and 31 December 2030. This change is intended to provide a more accurate financial representation of the costs incurred in promoting renewable energy, thus supporting policy objectives related to environmental sustainability and energy diversification.

Scope and Application

The Renewable Energy (Electricity) (Charge) Amendment Act 2009 amends the Renewable Energy (Electricity) (Charge) Act 2000 by increasing the rate of the renewable energy shortfall charge from $40 to $65. This amendment applies to shortfalls in renewable energy certificates for the period starting on 1 January 2010 and ending on 31 December 2030, thus affecting entities and persons involved in electricity transactions within Australia during these years. The Act's amendments extend to the Commonwealth level, ensuring a uniform application across the nation. There are no stated exclusions or exemptions within the provided text, although the specific impact may vary depending on the particular circumstances of the entities involved. The Act's provisions are enforced through the Renewable Energy (Electricity) (Charge) Act 2000, which is subject to further amendments and interpretations through subordinate instruments.

Key Provisions

The Renewable Energy (Electricity) (Charge) Amendment Act 2009 primarily modifies the Renewable Energy (Electricity) (Charge) Act 2000 by increasing the rate of the renewable energy shortfall charge from $40 to $65 (Schedule 1, item 1). This amendment is effective for renewable energy certificate shortfalls that occur between 1 January 2010 and 31 December 2030 (Schedule 1, item 2(1)). The term "renewable energy certificate shortfall" is defined as per the Renewable Energy (Electricity) Act 2000 (Schedule 1, item 2(2)). The Act serves to enhance the financial mechanisms for encouraging the production and use of renewable energy within the specified timeframe. Under this Act, entities responsible for managing electricity distribution and those obligated to hold renewable energy certificates are required to comply with the increased shortfall charge rate for the designated period. This includes ensuring that the appropriate charge is levied on shortfalls in renewable energy certificates, thereby supporting the transition to more sustainable energy practices (Schedule 1, item 1). The amendment aims to incentivise investment in renewable energy infrastructure by making the shortfall charge more financially impactful. Breach of the provisions set out in the Renewable Energy (Electricity) (Charge) Amendment Act 2009 could potentially result in civil or criminal consequences, although specific penalties are not detailed within the Act itself. The penalties for non-compliance could include fines or other legal actions as prescribed by relevant laws governing electricity and renewable energy. The maximum penalties for such breaches would typically be determined by the courts, taking into account the nature and severity of the offence. It is essential for parties governed by this Act to adhere to the specified requirements to avoid any legal repercussions.