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1. Activities F1.1 and F1.2 will replace activity F1
The New ESS Rule replaces the existing Activity Definition F1 – Install a New High Efficiency Refrigerated Cabinet or Replace an Existing Refrigerated Display Cabinet with two new ActivityÂ
Definitions:
• Activity Definition F1.1 – Install a New High Efficiency Refrigerated Cabinet, and
• Activity Definition F1.2 – Replace an Existing Refrigerated Display Cabinet
Activity Definition F1.1 must be used for new installations and cannot be used for a replacement installation. Activity Definition F1.2 must be used for a replacement installation.
A new installation occurs when the refrigerated cabinet is installed, where there is:
• No existing End-User Equipment (EUE) of the same type, function, output or service (such as where there is no existing refrigerated display/storage capacity), or
• Existing EUE of the same type, function, output or service, but the new refrigerated cabinet will not replace this EUE (such as where the new EUE works together with the existing EUE to provide additional capacity).Â
2. A minimum co-payment requirement applies to activities F1.1 and F1.2
For activities F1.1 and F1.2, the New ESS Rule requires the purchaser to have paid a net amount of at least $250 (excl. GST) per installed RC (new or replacement) for the implementation and other associated works carried out at the site (minimum co-payment). This amount cannot be reimbursed and must be evidenced to the satisfaction of the Scheme Administrator.Â
The purchaser is the person who purchases or leases the goods or services that enable the energy savings to be made. For activities F1.1 and F1.2 the purchaser would typically be the person who purchases or leases the efficient RC. However, the purchaser cannot be:
• an ACP unless it will be installed at their own site, or
• any person who purchases or leases the equipment for the purpose of reselling that equipment
3. IHEAB cannot be used for residential activities
As of 1 August 2022, the New Rule clarifies that the IHEAB method cannot be used to calculate the energy savings from activities undertaken at a residential building. However, a limited exemption to this requirement applies to some activity definitions, typically in relation to the common areas of apartment buildings. The exemptions are specified in the eligibility criteria for the relevant activity definition.
​A residential building is a building or part of a building classified under the Building Code of Australia (BCA) as Class 1, 2 or 4 building (including any BCA Class 10a building or Class 10b structure) on the same site. The HEER method includes several similar activities to the IHEAB method and is intended for use with residential buildings.
4. Updated documentation is available
We have updated our ESS documentation to ensure consistency with the New ESS Rule.
5. Commencement and transitional arrangements
The New ESS Rule, including Activity Definitions F1.1 and F1.2, commences on 1 August 2022. The New ESS Rule includes several transitional arrangements to assist ACPs and their customers transition to the new requirement.
6. Refrigerated cabinets remain a compliance focus
The installation of refrigerated cabinets has been identified as a compliance priority and is subject to increased compliance monitoring and escalated enforcement action. ACPs should be aware that we are closely scrutinizing installation evidence to verify nominations of ACPs by purchasers and evidence which demonstrates that RCs have been properly installed.
Following commencement of the New ESS Rule, this will also include verification of the minimum co-payment or verification of an existing contractual arrangement. This will include interviews with purchasers and conducting site inspections. You will be unable to create ESCs in situations where and ACP has not been properly nominated as the energy saver for the installation or where the RC has not been properly installed.
Further, we note that the Crimes Act 1900 provides serious penalties of up to 10 years imprisonment for making, possessing or using a false document (including altering a genuine document) for the purpose of obtaining a financial benefit. ACPs are accountable for the actions of their agents and contractors. We will act against ACPs that break the rules or fail to control the conduct of their agents or contractors.
The Scheme Administrator can have regard to the standard of honesty and integrity shown in previous commercial dealings by a person and its associates in deciding whether that person is eligible to be (or remain) accredited. We encourage ACPs to share this notice with their agents and contractors