Review of the Retailer Energy Efficiency Scheme Guideline

by Energy Action | Aug 21, 2015
The Energy Commission of South Australia is seeking comment on draft changes to the Retailer Energy Efficiency Scheme Guideline. The proposed changes are to clarify the Guideline to ensure that data provided by retailers is on a consistent basis.

One function of the Energy Commission of South Australia (ECOSA) within both the electricity and gas industries is to administer the Retailer Energy Efficiency Scheme (REES).

Established by the Government of South Australia and commenced on 1 January 2009, REES requires energy retailers which meet specified thresholds of customer numbers and energy sales to provide energy audits and energy efficiency activities to South Australian households and businesses in accordance with annual Ministerial targets.

Obliged retailers are set an energy audit target and greenhouse gas reduction target (delivered through energy efficiency activities). A proportion of greenhouse gas reductions (35 per cent of the annual target) must be undertaken in priority group households.

The Minister for Mineral Resources and Energy has set the REES obligation thresholds, targets and methodology to apportion REES annual targets to obliged retailers to apply for the years 2015 to 2017. ECOSA is responsible for determining which energy retailers are REES obliged retailers, and for apportioning the Minister’s targets to those retailers.

The process of apportioning the REES 2015 targets and feedback from retailers highlighted the need for further clarification and reconsideration of some aspects of the Guideline.

This Draft Decision paper discusses designated electricity and gas purchases. These are energy purchases made by a retailer for the purposes of supplying energy to large customers (those consuming more than 1,000 MWh or 3,600 GJ of energy in a year). These amounts, grossed up by distribution losses, can be netted off a retailer’s total electricity and gas purchases in apportioning the annual Energy Efficiency Target. The Guideline requires retailers to report customer sales data to these large customers as a proxy for designated electricity and gas purchases.

This Draft Decision paper sets out proposed changes to the Guideline. Submissions are sought from stakeholders on proposed changes which would:

  • - require customer sales to be based on consumption for the period 1 July to 30 June, rather than sales for bills issued in that period

  • - allow retailers to gross up customer sales by the relevant Distribution Loss Factors (DLF) applying to the sites supplied

  • - require the following additional information to be provided by retailers in their Statistical Information Annual Return:

  • - consumption for each site where multiple sites have been aggregated under a single customer contract

  • - the DLF applied to each National Meter Identifier (NMI)

  • - total consumption in the year for each NMI grossed up by the DLF

  • - total electricity and gas purchases

  • - provide examples of the types of records that retailers must maintain as evidence of their designated energy purchases

  • - require retailers to have a documented process in place regarding producing designated energy purchases data 

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