ESC FAQs
1. What is an ESC?
2. Who is participating in the ESS scheme?
3. How many ESCs can I get?
4. What is an ESC worth?
5. Does it matter where the activity occurs?
6. Do I need to be registered with the IPART to create ESCs?
7. Which products are eligible?
8. What does Green Energy Trading do with my ESCs?
9. How does Green Energy Trading make their money?
10. When will I get paid?
11. How long do I have to claim ESCs?
12. Which buildings are included?
13. What are my obligations?
14. My customers want more details, what should I do?
15. What information is required?
16. When can an ESC be created?
17. When do ESCs expire?
18. What are the targets for the ESC scheme?
19. Where can I get more information?
1. What is an ESC?
Under the New South Wales Energy Savings Scheme (ESS), Energy Savings Certificates (ESCs) are designed to support households and businesses (e.g. commercial and industrial) by providing a financial incentive for Energy Saving activities in order to reduce electricity consumption and electricity costs. Each ESC represents one tonne of carbon dioxide equivalent (CO2-e) abated by a prescribed activity.
2. Who is participating in the ESC scheme?
The Independent Pricing and Regulatory Tribunal (IPART) administers the scheme. Green Energy Trading is an ‘Accredited Certificate Provider’ which means we create ESCs on behalf of the Original Energy Saver i.e the person/company that pays for the electricity.
Green Energy Trading then sells ESCs to liable parties who are required to surrender them to the government as a demonstration of their support for energy efficiency measures. If they do not surrender enough certificates they must pay a prescribed penalty per ESC. For 2012 the penalty rate before tax is set at $24.86 (after tax $35.51).
3. How many ESCs can I get?
IPART has created a Commercial Lighting Calculation Tool which can be downloaded here. The Tool is pre-programmed with default values. Non default values for emerging technologies (including LED) may be approved by the IPART who will then provide a customised calculator for that product.
4. What is an ESC worth?
ESCs are a commodity traded on the open market so the ESC price will fluctuate. The price is unlikely to exceed the penalty rate, which for 2012 is $35.51 (after tax). Our current buyback price for uncreated ESCs can be found on our pricing page.
5. Does it matter where the activity occurs?
The activity must occur in New South Wales.
6. Do I need to be registered with the IPART to create ESCs?
No. Green Energy Trading has registered with IPART to create ESCs on your behalf so there is no need for you to register.
7. Which products are eligible?
GET can assist its clients with the creation of ESCs for commercial lighting. For each new product, IPART requires the Accredited Certificate Provider (i.e. Green Energy Trading) to submit a request for product acceptance under the scheme. Speak to Green Energy Trading if you would like your Commercial Lighting product(s) to be submitted for acceptance.
8. What does Green Energy Trading do with my ESCs?
Your ESCs are collected into parcels typically of 5,000-10,000 and sold on the open market to liable parties. Liable parties include large NSW’s electricity retailers who must purchase and surrender certificates in proportion to their electricity sales or pay a penalty.
9. How does Green Energy Trading make their money?
Green Energy Trading’s ESC buyback price is based on what we believe we can sell the ESCs for, less a margin to cover our costs and the cost of registering the ESCs. Factored into the price that Green Energy Trading offers are IPART’s charge of $0.70 fee per ESC and significant external auditing costs.
10. When will I get paid?
Please refer to our payment terms and conditions for ESC turnaroud times.
11. How long do I have to claim ESCs?
ESCs can be created up to 30 June in the calendar year after the installation date for full deemed value. After each 30 June anniversary, one year of deemed value is lost. Green Energy Trading cannot guarantee full deemed value for registration forms received between 31 May and 30 June each year, in the run-up to year end.
For installations that have already taken place, GET can only create certificates from savings that occurred on or after 19 May 2011 on a pro-rata basis.
12. Which activities are included?
As an Accredited Certificate Provider (ACP) under the NSW Energy Saving Scheme, Green Energy Trading is able to create Energy Saving Certificates (ESC) for eligible Recognised Energy Saving Activities (RESAs) in Commercial Lighting projects.
Under our Commercial Lighting Aggregation Accreditation we can create ESCs for the following activities:
- Lamp replacement (e.g. replacing T8s with T5s)
- Lighting control systems
- Voltage Reduction Units
*In the case of emerging technologies such as LED products, Induction lamps, T5 Adapter kits and Voltage Reduction Units, approval may take longer due to additional requirements (refer to IPART’s ESS – Fact Sheet 4).
13. What are my obligations?
As a client of Green Energy Trading you are required to ensure that your installers comply with the requirements of the ESC scheme as outlined by IPART. Installers undertaking prescribed activities must be qualified electricians, meet industry standards/council regulations and provide a certificate of compliance for the electrical work.
14. Where can I find more details?
Green Energy Trading has developed an ESC overview of the scheme which is available on our website here. Further information can be found on the IPART website.
15. What information is required?
Green Energy Trading will provide form templates and associated documentation guidelines to facilitate the efficient and compliant processing of activity projects. Listed below are examples of the types of documents that may be required:
- Nomination form with supporting documents
- Installation invoice (including discount given for certificates)
- Reflective ceiling plan (before and after if applicable)
- Physical light counts
- Photos of installation (before and after situation; verifying the lamp and ballast types etc.)
- Operating hours evidence (if open for more than 3000 hours per year (=default))
- Lux level test report
- Fit-for-purpose declaration from the end-user
- GET-Client assignment form
Green Energy Trading is required to keep this information with your records for at least six years.
In addition, when submitting product approval requests to Green Energy Trading, the following information is required:
- Product brand
- Product model number
- Has the product been used in a lighting upgrade/s for which ESCs will be created?
- Will the product be used in a lighting upgrade/s within the next three months?
- What is the location of the upgrade/s? [business name and business address required]
16. When can an ESC be created?
An ESC can be created after the Recognised Energy Saving Activity (RESA) has been undertaken and only for activities undertaken after the start of the ESS scheme on 1 July 2009. GET can create the ESCs for energy savings that occurred on or after 19 May 2011.
Importantly, a RESA does not include an activity that has been undertaken to comply with any Statutory Requirement. This ensures there is regulatory additionality in the ESS. Moreover, a RESA cannot reduce the scope or quantity of production or service from the use of electricity.
17. When do ESCs expire?
ESCs never expire. For example, an ESC created in 2009 can still be surrendered in 2012.
18. What are the targets for the Energy Savings Scheme?
In the first four years (2009-2013) of the ESS, it is estimated that 8.5 million megawatt-hours (MWh) of electricity will be saved. As ESCs are quantified in terms of carbon dioxide equivalents (CO2e), the ESS will reduce around 9 million tCO2-e, equating to another 710,000 households carbon neutral for a year. Targets for following periods will be set in the year preceding its commencement.
19. Where can I get more information?
Visit the ESS website www.ess.nsw.gov.au or contact Green Energy Trading on 1300 077 784 or 03 9805 0700.