Legislation

The Energy Efficiency Improvement Scheme is a regulatory scheme. Legislation outlines how the scheme operates.

The legislation includes:

• the overarching Energy Efficiency (Cost of Living) Improvement Act 2012
• a set of supporting instruments that provide guidance on how the objects of the Act can be met.

This legislation and supporting instruments should be read by all electricity retailers in the ACT, which are obligated parties by law.

All of the scheme’s legislation can be found on the ACT Legislation Register, with a summary of each below.

The Act

The Energy Efficiency (Cost of Living) Improvement Act 2012 establishes the scheme and sets out the objectives of the scheme. It describes how the scheme achieves energy savings, arrangements for administration, information sharing and enforcement.

The Act was notified on 17 May 2012 and commenced on 1 January 2013. It will run until 31 December 2030 after 2 extensions in recognition of the scheme’s success.

Activities Determination

The Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Determination is a Disallowable Instrument made under Section 10 of the Act, which establishes eligible activities that can be undertaken by electricity retailers to achieve the Energy Savings Target. This instrument defines the activities, sets minimum performance specifications, installed product requirements, when activities are complete and how the energy savings factor for each activity is calculated.

Activities Code of Practice

The Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Code of Practice is a Notifiable Instrument made under Section 25 of the Act, which gives details on how activities are to be undertaken. It explains the general obligations and competencies required for delivering all scheme activities. It provides activity-specific information on:

• training
• safety
• licensing
• other requirements.

Record Keeping and Reporting Code of Practice

The Energy Efficiency (Cost of Living) Improvement (Record Keeping and Reporting) Code of Practice is a Notifiable Instrument made under Section 25 of the Act, which gives details on how the Act and other scheme instruments are administered. It describes general obligations and establishes the requirements for compliance plans, activity records, activity certification compliance period reports, and independent information audits. Activity-specific record keeping and reporting requirements are also included.

Energy Savings Target

The Energy Efficiency (Cost of Living) Improvement (Energy Savings Target) Determination is a Disallowable Instrument made under Section 7 of the Act, establishing the total energy savings to be achieved by retailers in each compliance period (calendar year). It is expressed as a percentage of their total sales in the ACT.

Energy Savings Contribution

The Energy Efficiency (Cost of Living) Improvement (Energy Savings Contribution) Determination is a Disallowable Instrument made under Section 11 of the Act, establishing the contribution payable by tier 2 retailers for a compliance period, if they choose to pay the contribution instead of delivering energy savings activities to achieve their Retailer Energy Savings Obligation.

Priority Household Definition

Priority Households under the scheme are defined in the Energy Efficiency (Cost of Living) Improvement (Priority Households) Determination 2020.

Priority Household Target

The Energy Efficiency (Cost of Living) Improvement (Priority Household Target) Determination is a Disallowable Instrument made under Section 8 of the Act, which establishes the percentage of a tier 1 Retailer Energy Savings Obligation that must be achieved at priority households.

Penalties for Non-compliance

The Energy Efficiency (Cost of Living) Improvement (Penalties for Noncompliance) Determination is a Disallowable Instrument made under Section 22 of the Act, establishing the Shortfall Penalty applying each year. The Shortfall Penalty acts as a disincentive for non-compliance.

All other penalties within the Act are set at standard penalty unit rates, established under the Legislation Act 2001.

Administrator appointment

The Energy Efficiency (Cost of Living) Improvement (Administrator) Appointment is an Appointment Instrument is made under Section 23 of the Act. The Executive Group Manager, Climate Change and Energy, is the Administrator.

Approval of interstate energy efficiency schemes

The scheme is an energy efficiency obligation scheme (EEO), similar to other EEOs that operate in numerous countries as well as other Australian jurisdictions. The scheme    activities are designed considering those in EEOs in Victoria, New South Wales and South Australia.

The Energy Efficiency (Cost of Living) Improvement (Interstate Energy Efficiency Schemes) Determination is a Notifiable Instrument made under Section 10A of the Act. Other schemes complementing the scheme have been approved to minimise administrative costs and increase scheme competitiveness. These schemes were all approved on 13 April 2016:

• NSW Energy Savings Scheme (ESS)
• Victorian Energy Upgrades scheme (VEU)
• South Australian Retailer Energy Efficiency Scheme (REES).

All current legislation

Framework legislation

• Energy Efficiency (Cost of Living) Improvement Act 2012 A2012-17
• Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Determination 2020 (No 2) DI2020-218
• Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Code of Practice 2020 (No 2) NI2020-802
• Energy Efficiency (Cost of Living) Improvement (Record Keeping and Reporting) Code of Practice 2020 (No 2) NI2020-804
• Energy Efficiency (Cost of Living) Improvement (Priority Households) Determination 2020 DI2020-255

Instruments for scheme parameters in 2023

Instruments for scheme parameters in 2024

Instruments for administrative arrangements

• Energy Efficiency (Cost of Living) Improvement (Administrator) Appointment 2019 NI2019-502
• Energy Efficiency (Cost of Living) Improvement (Interstate Energy Efficiency Schemes) Approval 2016 (No 1) NI2016-186
• Environment Protection (Authority and Authorised Officers) Appointment 2019 (No 1) NI2019-129
• Environment Protection (Authorised Officers) Appointment 2019 (No 1) NI2019-128

Further regulatory impact statements

• Regulatory Impact Statement for Energy Efficiency Improvement Scheme - Extension until 2030 [PDF 1.1MB]
• Regulatory Impact Statement for Expanding classes of priority households Energy Efficiency (Cost of Living) Improvement Regulation 2017
• Regulatory Impact Statement for Inclusion of the non-residential sector, 2013
• Regulatory Impact Statement for the Energy Efficiency (Cost of Living) Improvement Bill, 2012

Find historic legislation on the ACT Legislation Register.