Electricity Supply Act 1995 No 94
Current version for 11 November 2014 to date (accessed 22 December 2014 at 20:12)
Part 9Division 4Section 114

114   Changes to base penalty rates and penalty conversion factors

(1)  The Governor may, by regulation made on the recommendation of the Minister, amend Schedule 5A to change the base penalty rate or the penalty conversion factor (or both) for a specified year or years.
(2)  Accordingly, any such regulation may omit an amount specified in column 2 or 3 of Schedule 5A and substitute a new amount.
(3)  Any such regulation does not affect the base penalty rate or penalty conversion factor for any year that commences on or before the date the regulation is made or within 12 months after the date the regulation is made.
Note. For example, a regulation to prescribe a different base penalty rate or penalty conversion factor for the year 2011 and subsequent years would have to be made on or before 31 December 2009.
(4)  The Minister may recommend the making of a regulation to amend Schedule 5A to change the base penalty rate for a year or years only if the Minister has certified in writing to the Governor that, in the Minister’s opinion:
(a)  the change to the base penalty rate is appropriate to achieve greater uniformity or harmonisation with a scheme in another jurisdiction with similar objectives to the energy savings scheme, or for the purposes of implementing a national scheme with similar objectives to the energy savings scheme, or
(b)  the change to the base penalty rate is appropriate because of a sustained under supply of energy savings certificates, as evidenced by scheme participants being required to pay a substantial energy savings shortfall penalty for 2 or more consecutive years, or
(c)  the change to the base penalty rate is appropriate because of a sustained over supply of energy savings certificates, as evidenced by the total number of certificates created substantially exceeding the total number of certificates required to meet all individual energy savings targets for 2 or more consecutive years, or
(d)  the change to the base penalty rate is appropriate because of significant changes to the rules governing the creation of energy savings certificates, or
(e)  the change to the base penalty rate is otherwise appropriate because of significant changes to the policy or regulatory framework, or the market conditions, in which the energy savings scheme operates.
(5)  To avoid doubt, subsection (4) does not apply to a regulation that changes the penalty conversion factor for a year or years.
(6)  This section does not apply to a regulation that provides for the adjustment of base penalty rates for movements in the consumer price index.
Note. The penalty rates specified in Schedule 5A are base rates only. Adjustments for movements in the consumer price index do not necessitate any change to Schedule 5A.
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