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Portfolio budget statements

Portfolio Budget Statements 2006-07

Environment and Heritage Portfolio
Budget initiatives and explanations of appropriations specified by outcomes and outputs by agency
Budget Related Paper No. 1.7
ISBN 1 741 77538 8

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Agency Budget Statements (continued)
Office of Renewable Energy Regulator (continued)

Tables in this section

Section 3 - Agency Outcomes

General Government Sector (GGS) agencies are required to plan, budget and report under an outcomes structure. GGS agencies produce outputs (departmental items) and also administer activities and programmes on behalf of the Government (administered items). This section explains how the resources identified in Section 2 will be used to deliver outputs and administered items to contribute to the outcome for the Office of the Renewable Energy Regulator (ORER).

3.1: SUMMARY OF OUTCOMES AND CONTRIBUTION TO OUTCOMES

The relationship between activities of ORER and the outcomes is summarised in Figure 4.

Figure 4: Contributions to outcomes

Figure 4: Contributions to outcomes

3.2: OUTCOMES - DEPARTMENTAL AND ADMINISTERED

Departmental appropriations by outcome

There is only one outcome for ORER.

Administered appropriations by outcome

There is only one outcome for ORER.

3.3: OUTCOMES AND PERFORMANCE

Outcome 1 resourcing

Table 3.1 shows how the 2006 07 Budget appropriations translate to total resourcing for Outcome 1, including administered expenses, revenue from government (appropriation), revenue from other sources, and the total price of outputs.

TABLE 3.1 – TOTAL RESOURCES FOR THE OUTCOME
Estimated
actual
2005-06
$'000		 Budget
estimate
2006-07
$'000
Administered appropriations 117 447
Total administered appropriations 117 447
Departmental appropriations
Output Group 1.1 - 1,881 1,924
Subtotal Output Group 1.1 1,881 1,924
Departmental appropriations
Output Group 1.2 - 806 825
Subtotal Output Group 1.2 806 825
Total revenue from government (appropriations)
contributing to price of departmental outputs		 2,687 2,749
Other resources available to be used
Administered Item 1 - -
Administered Item 1 - -
Output 1.1 - -
Output 1.2 - -
Total revenue from other sources - -
Total resources
(Total revenue from government and from other sources) 2,804 2,749
Total estimated resourcing for Outcome 1
(Total price of outputs and administered appropriations) 2,804 2,749
2005-06 2006-07
Average staffing level (number) 11 12
Measures affecting Outcome 1

There are no new measures for Outcome 1 in the 2006-07 budget.

Contributions to achievement of Outcome 1

ORER contributes to increased renewable electricity generation through establishment of a market for renewable energy certificates. ORER oversees the implementation of the Renewable Energy (Electricity) Act 2000, the Renewable Energy (Electricity) (Charge) Act 2000 and the Renewable Energy (Electricity) Regulations 2001.

Administered activities

The administered activities of ORER comprise the management of revenue collected and refunds payable under the Renewable Energy (Electricity) Act 2000. This Act imposes obligations on wholesale purchasers of electricity to meet targets for purchasing renewable-based electricity in order to meet the outcome of increased renewable electricity generation.

Departmental outputs

ORER has one output with two sub outputs.

Output 1.1 - management of renewable energy certificates.
The management of renewable energy certificates enables liable parties to demonstrate the level to which they are complying with the legislative requirements to use additional renewable energy each year from 2001 to 2010 in order to achieve the overall outcome of increased renewable electricity generation.

Output 1.2 - managing compliance with legislation.
This involves the assessment of annual compliance statements from liable parties, the imposition of any penalties and assistance to participants in providing required information to ORER, in order to ensure that the administration of the Renewable Energy Acts and regulations is effective in achieving the overall outcome of increased renewable electricity generation.

Performance information for Outcome 1

Performance information for administered items, individual outputs and output groups relating to ORER are summarised in Table 3.2

TABLE 3.2 – PERFORMANCE INFORMATION FOR OUTCOME 1 (A) Effectiveness – Overall Achievement of the 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 renewable energy certificate (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 management    
  Quality Maintain register of registered persons, register of applications for accreditation, register of accredited power stations and register of Renewable Energy Certificates (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 $1.924m
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 $0.825m
Evaluations for Outcome 1

There are no evaluations or major reviews planned for ORER in 2006-07.

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Budget statements

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