How the Scheme Assists Business
Through the creation of ESCs, the Scheme provides financial incentives for businesses to implement energy saving projects (“Projects”) eligible under the Scheme. Businesses may choose to work with Watt Efficiency as an Accredited Certificate Provider (ACP) to implement lighting Projects. Once ESCs are created, Watt Efficiency may then sell the ESCs to mandatory participants in the Scheme, known as “Liable Parties”. The price achieved by Watt Efficiency on sale will depend on the market for ESCs at the time.
The benefits of making your business more energy efficient
As a business, investment in energy efficiency is one of the most economic ways to reduce your operating costs and environmental footprint. Whilst implementing some Projects may be uneconomic or marginal if they are assessed only on the basis of cost savings from the reduction in energy consumption and maintenance, as an ACP, Watt Efficiency may “subsidise” the Project cost through the sale of ESCs.
Watt Efficiency as an Accredited Certificate Provider
As an Accredited Certificate Provider under the Scheme, Watt Efficiency is responsible for compliance with the Scheme, and receives income from the sale of Energy Savings Certificates created by Watt Efficiency Projects.
Financial Incentives for Saving Energy
When businesses voluntarily invest in reducing their energy use in accordance with the scheme, energy savings certificates (“Certificates”) are created. Electricity retailers (“Retailers”) are required under the legislation to buy Certificates to meet their own legislated targets, as required by law. Through the sale of Certificates to Retailers, the cost to businesses of the supply and installation of energy-saving equipment may be reduced. The Certificates are the 'currency' of the scheme. The Energy Savings Scheme is not a rebate scheme.
Regulation of the Scheme
The Energy Savings Scheme is governed by NSW legislation. The development of the policy framework is the responsibility of the Office of Environment and Heritage and the Department of Trade and Investment, Regional Infrastructure and Services.
The Independent Pricing and Regulatory Tribunal (IPART) manages the scheme as:
- the Scheme Administrator (which administers Accredited Certificate Providers); and
- Scheme Regulator (which administers Liable Parties).
IPART’s responsibility is to administer the scheme by applying the Act, Regulation and Rules, and to report on the performance of the scheme and its participants to the Minister each year.
Further Information
Further information about the Scheme may be found at the Energy Savings Scheme website at www.ess.nsw.gov.au
