38AEQuarterly shortfalls for the quarters of a year

#### 38AE Quarterly shortfalls for the quarters of a year First quarter of year (1) The following method statement shows how to work out a liable entity’s quarterly shortfall for the first quarter of a year (the assessment year). Method statement Step 1. Work out 35% of the previous year’s reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount. Step 2. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the first quarter; and (b) the amount of any quarterly surplus that the liable entity has for the fourth quarter of the previous year. The result is the surrendered amount. Step 3. Subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the first quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the first quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the first quarter of the assessment year equal to the result (expressed as a positive). Second quarter of the assessment year (2) The following method statement shows how to work out a liable entity’s quarterly shortfall for the second quarter of the assessment year. Method statement Step 1. Work out 25% of the previous year’s reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount. Step 2. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the second quarter; and (b) the amount of any quarterly surplus that the liable entity has for the first quarter of the assessment year. The result is the surrendered amount. Step 3. Subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the second quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the second quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the second quarter of the assessment year equal to the result (expressed as a positive). Third quarter of the assessment year (3) The following method statement shows how to work out a liable entity’s quarterly shortfall for the third quarter of the assessment year. Method statement Step 1. Work out 25% of the previous year’s reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). The result is the required surrender amount. Step 2. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the third quarter; and (b) the amount of any quarterly surplus that the liable entity has for the second quarter of the assessment year. The result is the surrendered amount. Step 3. Subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the third quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the third quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the third quarter of the assessment year equal to the result (expressed as a positive). Fourth quarter of the assessment year (4) The following method statement shows how to work out a liable entity’s quarterly shortfall for the fourth quarter of the assessment year. Method statement Step 1. Work out the assessment year’s reduced acquisitions. Multiply this by the small‑scale technology percentage for the assessment year and round the result to the nearest MWh (rounding 0.5 upwards). Step 2. Subtract from the amount worked out under step 1 the total of the required surrender amounts for the first, second and third quarters of the assessment year. The result (which may be less than zero) is the required surrender amount. Step 3. Add together: (a) the total value, in MWh, of small‑scale technology certificates surrendered, under Subdivision A of Division 1 of Part 5, by the liable entity during the surrender period for the fourth quarter; and (b) the amount of any quarterly surplus that the liable entity has for the third quarter of the assessment year. The result is the surrendered amount. Step 4. If the required surrender amount is zero or greater, subtract the surrendered amount from the required surrender amount. Result: If the result is greater than zero, the liable entity has a quarterly shortfall for the fourth quarter of the assessment year equal to the result. If the result is zero, the liable entity does not have a quarterly shortfall for the fourth quarter of the assessment year. If the result is less than zero, the liable entity has a quarterly surplus for the fourth quarter of the assessment year equal to the result (expressed as a positive amount). Step 5. If the required surrender amount is less than zero, add together that amount (expressed as a positive) to the surrendered amount. Result: The liable entity has a quarterly surplus for the fourth quarter of the assessment year equal to the result.