Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000

What This Law Does

This is a short "companion" law to the main Renewable Energy (Electricity) Act 2000. Its sole practical purpose is to formally impose a financial penalty (called a "shortfall charge") on electricity retailers who fail to buy enough large-scale renewable energy certificates (LGCs) in a given year.

Who Does It Affect?

• Electricity retailers and large electricity buyers who are required under the main renewable energy law to purchase a set amount of renewable energy certificates each year.
• If they fall short of their required amount, they must pay $65 for every megawatt-hour (MWh) they are short — essentially a fine for not meeting their renewable energy obligations.

Why Does It Exist as a Separate Law?

Under the Australian Constitution, taxes and charges must be imposed by a specific Act of Parliament — they cannot just be buried inside a broader regulatory law. This Act exists purely to satisfy that constitutional requirement. The main Renewable Energy (Electricity) Act 2000 sets up the whole scheme; this Act simply "pulls the trigger" on the charge.

Key Points

• The penalty rate is $65 per MWh of shortfall — this acts as a strong incentive for retailers to meet their renewable energy targets rather than pay the charge.
• State governments are also bound by this law (meaning government-owned electricity businesses must comply), but the .