Portfolio Budget Statements 2004-2005

The following section provides details of the budget implications for the Office of the Renewable Energy Regulator. Specifically it provides in the following order:

Sub-outcome and Output
		Total		Departmental
		Price	Administered	Outputs
		Outputs	Appropriation	Appropriation
		$'000	$'000	$'000



	OFFICE OF THE RENEWABLE ENERGY REGULATOR	2,646	502	2,646


*Sub-outcome -* Increased Renewable Electricity Generation

1.1	Renewable energy certificate (REC) management	1,852		1,852
1.2	Managing compliance with legislation	794		794

	TOTAL SUB-OUTCOME	2,646	502	2,646

This structure shows the relationship between the Government Sub-outcome and contributing outputs for the Office of the Renewable Energy Regulator, presented here as output groups. Financial details for this Sub-outcome by outputs and output group appears in Table 2.1 while non-financial information for the Sub outcome appears in Table 2.2.

OUTPUT COST ATTRIBUTION

The Office of the Renewable Energy Regulator allocates corporate overheads on the basis of employee costs attributed to each output.

Relationship Between Sub-outcome and Contributing Output

The following chart provides a diagrammatic representation of the output groups and individual outputs feeding into those groups, contributing to Outcome 1 (Environment).


Outcome 1 -	The environment, especially those aspects that are matters of national environmental significance, is protected and conserved


Sub-outcome -	Increased Renewable Electricity Generation


1.1	Renewable energy certificate (REC) management		Maintain register of registered persons, register of applications for accreditation, register of accredited power stations and register of RECs. Manage accreditation of power stations. Manage creation and validation of RECs. Manage internet based registry facility including updating software. Manage administrative updates to Regulations. Number of RECs validly created in the year. Total REC liability expressed as a percentage of the annual renewable energy target. Total number of RECs surrendered in the year as a percentage of the target.

1.2

Managing compliance with legislation

Assess annual compliance statements.

Impose any penalties.

Assist participants in providing pertinent information to ORER.

Redeem any shortfall charges.

Audit participants.

Maintain other administrative procedures for effective operation of the Renewable Energy (Electricity) Act 2000.

The percentage of accreditation applications assessed within six weeks of receipt of completed applications and other necessary information.

The percentage of RECs annually created that are validated.

The number of liable parties having shortfalls.

The sum of all shortfalls expressed in RECs.

Note: Revenue from Government through appropriations contributes to 100% of the total output price for this outcome for 2004-05.

CHANGES TO OUTCOMES AND OUTPUTS

There have been no changes to the output structure for the Office of the Renewable Energy Regulator since the 2003-04 Portfolio Additional Estimates Statements.

Outcome 1 -	The environment, especially those aspects that are matters of national environmental significance, is protected and conserved
Sub-outcome -	Increased Renewable Electricity Generation

The Office of the Renewable Energy Regulator (ORER) is a prescribed agency within the Environment and Heritage portfolio. The ORER's role is to administer the Renewable Energy (Electricity) Act 2000, the Renewable Energy (Electricity) (Charge) Act 2000 and the Renewable Energy (Electricity) Regulations 2001. Together, the Acts and Regulations support the Australian Government's mandatory renewable energy target, designed to increase renewable energy generation by 9500 GWh by 2010.

The legislation administered by ORER imposes obligations on wholesale purchasers of electricity to meet individual targets each calendar year for purchasing renewable-based electricity. This is achieved by obtaining and surrendering renewable energy certificates to the ORER.

MEASURES AFFECTING THE SUB-OUTCOME

The Climate Change Strategy – continuing administration of the Mandatory Renewable Energy Target
	2004-05	2005-06	2006-07	2007-08
	$'000	$'000	$'000	$'000
Office of the Renewable Energy Regulator	2,589	2,664	2,731	2,619
Related revenue	500	600	700	900

The Government will provide an additional $10.6 million over four years to the Office of the Renewable Energy Regulator to continue administration of the Mandatory Renewable Energy Target.

The Office is a separate statutory agency within the Environment and Heritage Portfolio.

This measure will be partly offset through the continued collection of fees from industry participants in the Mandatory Renewable Energy Target scheme, amounting to $2.7 million over four years.

TOTAL RESOURCES FOR THE SUB-OUTCOME

The following Table 2.1 provides details of the financial resources for the Office of the Renewable Energy Regulator. It shows the expenditure for each output group, revenue from Government, revenue from other sources and the total price of outputs. The average staffing level for this Sub outcome also appears at the end of the table.

TABLE 2.1 – TOTAL RESOURCES FOR THE SUB-OUTCOME
	Estimated
	Actuals	Budget
	2003-04	2004-05
	$'000	$'000

ADMINISTERED SPECIAL ACCOUNTS	0	0

ADMINISTERED SPECIAL APPROPRIATIONS	123	502

TOTAL ADMINISTERED APPROPRIATIONS	123	502⁽¹⁾

DEPARTMENTAL APPROPRIATIONS
Output 1.1 – Renewable energy certificate (REC) management	1,094	1,852
Output 1.1.2 – Managing compliance with legislation	469	794

TOTAL REVENUE FROM GOVERNMENT (Appropriations)	1,563	2,646
Contributing to Price of Departmental Output	100%	100%

REVENUE FROM OTHER SOURCES
Output 1.1 – Renewable energy certificate (REC) management	0	0
Output 1.1.2 - Managing compliance with legislation	0	0

TOTAL REVENUE FROM OTHER SOURCES	0	0

TOTAL PRICE OF DEPARTMENTAL OUTPUTS	1,563	2,646

DEPARTMENTAL SPECIAL ACCOUNTS	0	0
TOTAL ESTIMATED RESOURCING	1,686	3,148


	2003-2004	2004-2005
AVERAGE STAFFING LEVEL (NUMBER)	10.0	10.0
(1) The ORER will receive $0.502m in special appropriations in 2004-05. The special appropriation represents penalty refunds, drawn down from the Official Public Account and paid to companies meeting certain conditions under the Renewable Energy (Electricity) Act 2000 and able to redeem prior penalty payments.

CONTRIBUTION OF OUTPUTS

The Office of the Renewable Energy Regulator outputs are targeted towards achieving the governments objective of Increasing Renewable Electricity Generation. The objectives are to:

PERFORMANCE INFORMATION FOR THE SUB-OUTCOME

The following Table 2.2 lists the performance information that the Office of the Renewable Energy Regulator will use to assess the level of its achievement of the Sub outcome during 2004 05. It is comprised of three parts:

(B) performance information for Administered items – qualitative and quantitative information for each administered item; and

Table 2.2 – Performance Information for the Sub-Outcome
(A) Effectiveness – Overall Achievement of the Outcome
Increased Renewable Electricity Generation	The amount of renewable electricity generated in the year and potentially eligible under the Renewable Energy (Electricity) Act 2000, expressed as a percentage of the mandated target for the year.

(B) Performance Information for Administered Items
Incoming REC fees: REC management	Quantity	Renewable energy certificate fees collected in line with the Renewable Energy (Electricity) Act 2000 and agreed administrative guidelines for the collection of small amounts.
	Quality	All renewable energy certificate fees transferred to the Official Public Account within 5 working days of receipt of fees and verification that amounts are correct.
Incoming penalty fees: Compliance	Quantity	Ensure, through a comprehensive assessment process, that all renewable energy shortfall fees owing to the Commonwealth are recovered from liable parties.
	Quality	All renewable energy shortfall fees transferred to the Official Public Account with 5 working days of receipt of penalty fees and verification that amounts are correct.
Outgoing REC fees: Compliance	Quantity	Ensure that renewable energy shortfall refunds are correctly calculated taking into consideration the relevant administrative charges specified under the Renewable Energy (Electricity) Regulations 2001.
	Quality	All renewable energy shortfall refunds paid to the liable party within 6 weeks of verification that shortfall refunds are legally payable under the Renewable Energy (Electricity) Act 2000 and that amounts are correct.

(C) Performance Information for Departmental Outputs
OUTPUT GROUP 1.1 – RENEWABLE ENERGY CERTIFICATE (REC) MANAGEMENT
	Quality	Maintain register of registered persons, register of applications for accreditation, register of accredited power stations and register of RECs. Manage accreditation of power stations. Manage creation and validation of RECs. Manage internet based registry facility including updating software. Manage administrative updates to Regulations.
	Quantity	Number of RECs validly created in the year. Total REC liability expressed as a percentage of the annual renewable energy target. Total number of RECs surrendered in the year as a percentage of the target.
	Price	$1.852m



OUTPUT GROUP 1.2 – MANAGING COMPLIANCE WITH LEGISLATION
	Quality	Assess annual compliance statements. Impose any penalties. Assist participants in providing pertinent information to ORER. Redeem any shortfall charges. Audit participants. Maintain other administrative procedures for effective operation of the Renewable Energy (Electricity) Act 2000.
	Quantity	The percentage of accreditation applications assessed within six weeks of receipt of completed applications and other necessary information. The percentage of RECs annually created that are validated. The number of liable parties having shortfalls. The sum of all shortfalls expressed in RECs.
	Price	$0.794m

PERFORMANCE INFORMATION

Achievement of planned performance will be reported in the Office of the Renewable Energy Regulator 2004 05 Annual Report.

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