Electricity Supply Act 1995

Despite any other provision of this Part, an amount of tonnes of carbon dioxide equivalent of greenhouse gas emissions of greenhouse shortfall in any compliance period (other than the compliance period commencing 1 January 2007 or the final compliance period) may, subject to the greenhouse gas benchmark rules, be carried forward to the next compliance period.

If an amount of greenhouse shortfall is carried forward, the amount of that shortfall is, to the extent to which it is not abated by the benchmark participant, subject to the greenhouse penalty at the end of the next compliance period and a greenhouse penalty is not payable for the shortfall amount at the end of the compliance period from which it was carried forward.

Any such penalty is payable at the same time as any greenhouse penalty for the next compliance period is payable (or would be payable, if owed).

A greenhouse shortfall that is carried forward may be abated at the end of the next compliance period by surrendering abatement certificates or counting renewable energy certificates.

For that purpose, the greenhouse shortfall after abatement is calculated by subtracting from the amount of the shortfall the total number of tonnes of carbon dioxide equivalent of greenhouse gas emissions attributable to any certificates surrendered or counted for the purpose of abating the greenhouse shortfall.

The amount of greenhouse shortfall carried forward in respect of a compliance period may not exceed 10% of the benchmark participant’s greenhouse gas benchmark for that compliance period.

An amount of greenhouse shortfall may be carried forward whether or not a shortfall was carried forward in the previous compliance period.