22Penalties for noncompliance

22 Penalties for noncompliance (1) If a NERL retailer’s retailer energy savings result is a net shortfall, the retailer is liable to pay a penalty (a shortfall penalty) to the Territory. (2) If a tier 1 NERL retailer’s retailer priority household result is a net shortfall, the retailer is liable to pay a shortfall penalty to the Territory. (3) The amount of a shortfall penalty is the amount per megawatt hour of energy in the net shortfall determined by the Minister. Note A shortfall penalty imposed under this Act must be paid to the Territory. (4) In determining an amount under subsection (3), the Minister must take into account the objects of this Act.

Section 22 page 24 Energy Efficiency (Cost of Living) Improvement Act 2012 (5) The Minister must make a determination at least 3 months before the start of the compliance period to which the shortfall penalty relates. (6) A determination is a disallowable instrument. (7) In this section: net shortfall means— (a) for a tier 1 NERL retailer—the total of the retailer’s— (i) retailer energy savings result shortfall less the amount of the shortfall that the retailer carries forward to the next compliance period; or (ii) retailer priority household result shortfall less the amount of the shortfall that the retailer carries forward to the next compliance period; and (b) for a tier 2 NERL retailer—the total of the retailer’s retailer energy savings result shortfall, less— (i) the amount of the shortfall that the retailer carries forward to the next compliance period; and (ii) the retailer’s energy savings contribution.

Administration Part 4 Section 23