99Penalty rates

99 Penalty rates

99 Penalty rates

(1) The scheme penalty rate for a compliance period is the rate prescribed by the regulations—

(a) on the commencement of this clause, or

(b) as amended in accordance with this clause.

(2) A regulation to amend a prescribed scheme penalty rate for a compliance period must be made at least 12 months before the commencement of the compliance period.

Example—

An amendment to the scheme penalty rate for the 2023–2024 compliance period must be made on or before 31 October 2022.

(3) A regulation to amend a prescribed scheme penalty rate for a compliance period may be made only if the Minister is satisfied that the change to the prescribed scheme penalty rate is appropriate—

(a) for the purposes of achieving greater uniformity or harmonisation with a scheme in another jurisdiction with similar objectives to the peak demand reduction scheme, or

(b) for the purposes of implementing a national scheme with similar objectives to the peak demand reduction scheme, or

(c) because of an under supply or over supply of certificates that may be surrendered, as evidenced in the way set out in the regulations, or

(d) because of a target breach identified in an energy security target monitor report under the Electricity Infrastructure Investment Act 2020, or

(e) because of significant changes to the scheme rules relating to the creation of certificates, or

(f) because of significant changes to the policy or regulatory framework, or the market conditions, in which the peak demand reduction scheme operates.

(4) Subclauses (2) and (3) do not apply to a regulation that provides for the adjustment of scheme penalty rates for movements in the consumer price index.