20Compliance with energy savings obligations—retailer

20 Compliance with energy savings obligations—retailer energy savings result (1) This section applies to— (a) a tier 1 retailer; and (b) a tier 2 retailer that tells the administrator under section 19 (2) (f) that the retailer energy saving obligation will not include an energy savings contribution. (2) The administrator must determine the result (a retailer energy savings result) of a NERL retailer’s compliance with the retailer’s energy savings obligation, expressed as a number of megawatt hours of energy. (3) A retailer energy savings result for a NERL retailer must be worked out as follows: (RESO + CFS) – (A + S) undertaken or acquired in the compliance period. RESO means the retailer’s energy savings obligation.

Section 20 page 16 Energy Efficiency (Cost of Living) Improvement Act 2012 (4) The administrator may exclude from the calculation of a retailer energy savings result the energy savings factor for an eligible activity reported by the retailer under section 19 if the administrator is not satisfied that the activity complies with a relevant approved code of (5) If the administrator excludes data from a calculation under subsection (4), the administrator may substitute data that the administrator believes on reasonable grounds is correct. Example—reason for excluding an energy savings factor the energy savings factor has been miscalculated (6) A retailer energy savings result is— (a) if the result is a positive number—a shortfall; and (7) The administrator must give a NERL retailer written notice of the retailer’s retailer energy savings result. (8) If the NERL retailer has a surplus, the notice must show the surplus to be carried forward to the next compliance period. (9) If the NERL retailer has a shortfall, the notice must give the retailer the following information: (a) the shortfall; (b) the maximum percentage of the retailer’s retailer energy savings result that the retailer may carry forward to the next compliance period being the following:

Section 20A (10) Not later than 10 working days after receiving a notice mentioned in subsection (9), the NERL retailer must give the administrator written notice of the percentage of the retailer’s retailer energy savings result that the retailer elects to carry forward to the next compliance period. (11) Not later than 10 working days after receiving a notice mentioned in subsection (10), the administrator must give the NERL retailer (a) the amount of the retailer’s retailer energy savings result to be carried forward to the next compliance period; and (b) the shortfall penalty payable by the retailer.