Div 2Energy productivity activities

Division 2—Energy productivity activities 24—Energy productivity targets (1) The Minister must, by notice in the Gazette, set the annual energy productivity targets for the purposes of this Part, being the amount of normalised gigajoules required to be achieved by retailers through the carrying out of energy productivity activities in accordance with this Part and Part 4 of the Gas Regulations 2012. (2) The Minister must, for the purposes of subregulation (1), set annual energy productivity targets relating to each of the following 5 year periods: (a) 2021 to 2025 (inclusive); (b) 2026 to 2030 (inclusive). (3) The Commission must set an annual energy productivity target (EPT) for each retailer by apportioning the relevant annual target set by the Minister between retailers in accordance with any requirements of the Minister. 25—Primary and secondary subtargets (1) The Minister may, by notice in the Gazette, determine that a percentage or specified amount of an annual energy productivity target is to be achieved by any 1 or more of the following (a primary subtarget): (a) the provision of energy productivity activities to a class of customers specified in the notice; (b) the undertaking of a kind of energy productivity activity specified in the notice. (2) For the purposes of this Part, the Minister— (a) must determine a primary subtarget in relation to priority group households; and (b) may determine other primary subtargets. (3) A notice under this regulation may specify that a percentage or specified amount of a subtarget is to be achieved by any 1 or more of the following (a secondary subtarget): (a) the provision of energy productivity activities to a class of customers specified in the notice; (b) the undertaking of a kind of energy productivity activity specified in the notice. Example— The Minister determines (under subregulation (1)) that 50% of an annual energy productivity target must be achieved by retailers through the carrying out of energy productivity activities in households (the household primary subtarget). The Minister determines (under subregulation (3)) that 50% of the household primary subtarget must be achieved by retailers through the carrying out of "demand-response" energy productivity activities (specified by the Minister) (the demand-response secondary subtarget). (4) The Commission must, in accordance with any requirements of the Minister— (a) set primary subtargets for each retailer by apportioning each primary subtarget determined by the Minister in accordance with any requirements of the Minister; and (b) set secondary subtargets for each retailer by apportioning each secondary subtarget determined by the Minister (if any) in accordance with any requirements of the Minister. 26—Energy productivity activities (1) A retailer must, subject to subregulation (2), undertake energy productivity activities sufficient to achieve the EPT that applies to the retailer for that year (as adjusted to take into account any shortfall added under subregulation (3)). (2) A retailer will be taken not to have failed to achieve the EPT that applies to the retailer for a year if the retailer undertakes energy productivity activities in the year sufficient to achieve at least 90% of the EPT. (3) Despite subregulation (2), where a retailer fails to achieve its EPT in a year, the energy productivity shortfall must be added to an EPT that applies to the retailer in a subsequent year. (4) An energy productivity activity undertaken by a retailer for the purposes of achieving a primary subtarget or secondary subtarget under regulation 27 is taken to be included as an energy productivity activity undertaken by a retailer for the purpose of achieving its EPT under this regulation. (a) a retailer undertakes energy productivity activities in a year sufficient to achieve at least 90% of its EPT for that year but does not achieve its EPT; and (b) in the subsequent calendar year this Part no longer applies to the retailer as a result of the operation of regulation 22(1), the retailer must undertake energy productivity activities in the subsequent year to account for its energy productivity shortfall from the previous year. (6) If— (a) a retailer fails to achieve its EPT with respect to any year; and (b) the retailer— (i) pays a shortfall penalty in accordance with the requirements of section 94B of the Act with respect to that failure; or (ii) is subject to a penalty on account of a prosecution in respect of that failure, the energy productivity shortfall to which the shortfall penalty or prosecution relates will no longer apply to the retailer. (7) In this regulation— energy productivity shortfall means the difference between the EPT that applies to the retailer for a year and the amount of normalised gigajoules actually achieved (in accordance with this Part) by that retailer in that year through the conduct of energy productivity activities. 27—Energy productivity activities—subtargets (1) A retailer must, subject to subregulation (2), undertake energy productivity activities sufficient to achieve each primary subtarget and secondary subtarget applying to the retailer for a year (as adjusted to take into account any shortfall added under subregulation (3)). (2) A retailer will be taken not to have failed to achieve a primary subtarget or secondary subtarget applying to the retailer for a year if the retailer undertakes energy productivity activities in the year sufficient to achieve at least 90% of the primary subtarget or secondary subtarget (as the case requires). (3) Despite subregulation (2)— (a) if a retailer fails to achieve a primary subtarget in a year, the Commission must ensure that the energy productivity shortfall is added— (i) if an equivalent primary subtarget applies to the retailer in the subsequent year—to that primary subtarget; or (ii) in any other case—to the EPT that applies to the retailer in a subsequent year; and (b) if a retailer fails to achieve a secondary subtarget in a year, the Commission must ensure that the energy productivity shortfall is added— (i) if an equivalent secondary subtarget applies to the retailer in the subsequent year—to that secondary subtarget; or (ii) in any other case—to the EPT that applies to the retailer in a subsequent year. (4) If— (a) a retailer undertakes energy productivity activities in a year sufficient to achieve at least 90% of a primary subtarget or secondary subtarget for that year but does not achieve the primary subtarget or secondary subtarget (as the case requires); and (b) in the subsequent calendar year this Part no longer applies to the retailer as a result of the operation of regulation 22(1), the retailer must undertake energy productivity activities in the subsequent year to account for its energy productivity shortfall (for the relevant primary subtarget or secondary subtarget) from the previous year. (a) a retailer fails to achieve a primary subtarget or secondary subtarget that applies to the retailer for a year; and (b) the retailer— (i) pays a shortfall penalty in accordance with the requirements of section 94B of the Act with respect to that failure; or (ii) is subject to a penalty on account of a prosecution in respect of that failure, the energy productivity shortfall to which the shortfall penalty or prosecution relates will no longer apply to the retailer. (6) In this regulation— energy productivity shortfall means— (a) in the case of a failure by a retailer to achieve a primary subtarget applying to the retailer in a year—the difference between the primary subtarget and the amount of normalised gigajoules actually achieved by that retailer in that year by undertaking energy productivity activities to achieve that primary subtarget; or (b) in the case of a failure by a retailer to achieve a secondary subtarget applying to the retailer in a year—the difference between the secondary subtarget and the amount of normalised gigajoules actually achieved by that retailer in that year by undertaking energy productivity activities to achieve that secondary subtarget. 28—Determination of activities or measures that constitute energy productivity activities (1) The Minister may, by notice in the Gazette, on the Minister's own initiative or by application, determine 1 or more activities or measures that may be undertaken by retailers to be energy productivity activities for the purposes of this Part. (2) An application under subregulation (1) must be made in a manner and form determined by the Minister. (3) A determination may be of general application or limited (according to criteria determined by the Minister) in its application to a particular retailer or particular retailers. (4) A notice published under this regulation must set out relevant information relating to an activity or measure that constitutes an energy productivity activity, including— (a) a description of the activity or measure that constitutes the energy productivity activity; and (b) the minimum specification in accordance with which the activity or measure that constitutes the energy productivity activity must be performed; and (c) the amount of normalised gigajoules taken to be achieved, or the method of calculating such an amount, if the activity or measure that constitutes the energy productivity activity is undertaken; and (d) any other matter the Minister thinks fit. (5) The Minister may, by notice in the Gazette, vary or revoke a determination made under this regulation.