Gas Electricity Certificates

A Gas Electricity Certificate (a 'GEC') is an electronic certificate created by accredited generators for each whole megawatt hour (MWh) of eligible gas-fired electricity generated. GECs are a mechanism for providing an incentive to the power stations to generate electricity using eligible fuels. The accredited parties can trade GECs to other registered scheme participants through the GEC market.
Liable parties will source GECs from the GEC market and surrender them to the regulator to meet their annual GEC liability.

If a liable party does not meet their annual liability by the compliance date, they are required to pay a penalty. The penalty is calculated by applying a shortfall charge according to the formula specified in the Act.

Only accredited generators for accredited power stations may create GECs. A GEC may be created only if the month in which the relevant electricity was generated was no more than 12 months before creation of the GEC.

Also, GECs can not be created for eligible gas-fired electricity if a certificate has been created in relation to the generation of the electricity under a corresponding law of the Commonwealth or of another state, the purposes of which include the promotion of the reduction of greenhouse gases.

When an accredited generator creates a GEC, they are required to pay the regulator the appropriate fee. The Regulator will undertake a validation check to determine whether the GEC was validly created.  If the Regulator determines that a GEC has been validly created, the Regulator will electronically register the GEC and give the accredited generator notice of the registration. 

A GEC takes effect and continues to be in force only if it has been registered by the Regulator.

For any registered GEC, the accredited generator that created it becomes its registered owner.

If the regulator determines that a GEC was not validly created, the accredited generator will be given an information notice about the decision.

The validation check is undertaken as soon as practicable after a GEC is created so that there is minimal delay between creation and registration.

Registration may also occur automatically in a way approved by the regulator.

A GEC expires at the end of the second year after its vintage year. For example, a GEC registered on 1 May 2008 (a 2008 vintage) expires at the end of 2010. A registered GEC ceases to be in force if it is surrendered or cancelled. A registered GEC also has no validity during any period in which it is suspended.