Interim EITE Exemptions added to Energy Savings Scheme

Energy Minister Ian MacDonald has announced interim exemptions for emissions intensive, trade exposed (EITE) industries under the Energy savings Scheme (ESS). The Interim Exemptions Order, to be revoked on 31 December 2009, lists a number of NSW-based industries that qualify for the partial exemption of either 60% or 90% of total load. Retailers can deduct 5% of this exempted load from their overall ESS obligations.

An accompanying Policy Framework document explains how the exemptions were arrived at in absense of Commonwealth Government legislation defining EITE exemptions (such as the stalled CPRS Bills and the interim RET assistance).

The framework is based on the approaches taken in the following Commonwealth documents:

• Assessment of activities for the purposes of the emissions-intensive trade-exposed assistance program, Guidance Paper, February 2009;
• Establishing the eligibility of activities under the emissions-intensive trade-exposed assistance program, June 2009;
• The Carbon Pollution Reduction Scheme White Paper, December 2008;
• The draft Carbon Pollution Reduction Scheme Regulations, June 2009; and
• Activity Definitions from the Department of Climate Change website, as at 30 July 2009.

At this stage, no firm decisions have been made on future orders to run from January 2010.