Exemptions

There are a small number of loads which will be able to obtain an exemption from the annual GEC liability for a fixed period. Any interested person for an electricity load may apply to the regulator to receive an exemption.

If an interested person applies to the Regulator for an exemption, they should give a copy of the application to any other interested persons. The copy of the application should be accompanied by a notice stating that the other interested person has 20 business days after receiving the notice to make written submissions to the regulator about the application. These submissions will be considered by the regulator before the application is decided.

If the application is granted, the regulator must give a copy of the exemption certificate to each interested person for the electricity load. If the application has been refused, each interested person will be notified of the decision by the Regulator.

An interested person must be a scheme participant to claim the benefit of the exemption. However, the applicant for the exemption will automatically become a registered scheme participant upon granting of the exemption.

State Development exemption

The State Development exemption considers the requirements of very large, energy intensive consumers that provide substantial economic development benefits to Queensland. There are certain threshold criteria that must be met to be eligible for a State Development exemption:

• The business or enterprise which seeks the exemption must be part of any of the following projects (a "significant project") -
  - a project that under the State Development and Public Works Organisation Act 1971, has been declared a significant project
  - another project that the Regulator decides provides, or will provide, substantial strategic and economic benefits to the State
• The total load for the business or enterprise is, or will be, more than 750 gigawatt hours (GWh) a year.

The exemption can only be awarded to a single business or enterprise at a single locality; the 750 GWh plus threshold cannot be met by aggregating the electricity loads of various branches or subsidiaries, such as those in other cities across the state.

Renewable energy exemption

The renewable energy exemption rewards electricity loads generated from renewable energy sources which result in greenhouse gas emission benefits. Parties will be eligible to obtain the renewable energy exemption if the electricity load is supplied by a power station to an end user using a dedicated line or an on-site generator and the electricity is generated:

• from a renewable energy source prescribed under a regulation
  or
• from a renewable energy source recognised under a law or program prescribed under a regulation.

The application should provide evidence of the direct supply arrangement or on-site generation from a prescribed renewable energy source or a source under a prescribed program. The application should also include information that will allow the regulator to decide the proportion of electricity generation that can be attributed to renewable sources and hence awarded the exemption.

Auxiliary load exemption

Auxiliary load is the amount of electricity used within a power station to generate electricity. Auxiliary loads will not be eligible for the creation of GECs, nor will they incur any liability under the scheme. Because auxiliary loads are generally unlikely to be captured in relevant liability measurement points, applying for an auxiliary load exemption will usually not be necessary unless the electricity used for auxiliary load is imported from outside the power station. It is a condition of the exemption that the electricity load, the subject of the exemption, must continue to be an auxiliary load.

Compliance information

Each interested person for the exempted load must give the regulator an exemption compliance report for the last year (either on or before the relevant date). This must be accompanied by payment of the annual fee for the current year. If there is more than one interested person for the load, only one annual fee and one compliance report need be submitted by them jointly.