Alinta pays RET penalty, following ERM
Source: AFR, 1 February 2017
The Clean Energy Regulator has increased pressure on ERM Power, Alinta Energy and other electricity retailers to fulfil their renewable energy obligations and abide by the "spirit of the law" and help meet the 2020 target.
Retailers that elect to pay penalties instead of submitting renewable energy certificates should "make concrete plans" to make good the shortfall, the regulator said amid heightening concerns about the viability of the scheme.
A surge in the cost of Large-scale Generation Certificates (LGCs), each of which represent 1 megawatt-hour of renewable energy, has meant that for some retailers it makes economic sense to pay the "shortfall charge" rather than source expensive certificates.
Alinta, in contrast, will acquit most of its liability through LGCs but still pay the charge for a small portion, which it said would help it back renewables projects at a later date.
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