The National Greenhouse and Energy Reporting (NGER) period deadline for the 2009/10 financial year is now over, and the corporate threshold will drop again for the 2010/11 financial year. Companies who exceeded the reporting threshold for the last financial year should have successfully reported by the 31st October 2010 deadline. Those companies who may exceed the new threshold should determine if they will do so, and begin to prepare now.

The National Greenhouse and Energy Reporting Act 2007 (the NGER Act) requires all businesses that are a constitutional corporation and meet a reporting threshold for greenhouse gases or energy use or production for a reporting (financial) year to register with the Greenhouse and Energy Data Officer, Department of Climate Change and Energy Efficiency. A registered corporation that met the corporate reporting threshold (85kt) or whose corporate group has operational control over a facility that met a facility reporting threshold (25kt) in the financial year 2009-10, must have applied to register by the 31st of August 2010 and report energy consumption, energy production and greenhouse gas emissions for the 2009/2010 year by the 31st of October 2010.

On the 1st of July 2010 the corporate threshold dropped to 50kt of greenhouse gas emissions (CO2 equivalent) for the FY 2010-11 for a corporation, remaining at 25kt of greenhouse gas emissions (CO2 equivalent) for a facility. The facility threshold is roughly equivalent to 28,000 megawatt hours of electricity (~$3.36 million of electricity at $0.12/KWh), 4,000 kL of LPG or 2.6 megalitres of diesel. Significant penalties apply for non-compliance with the NGER Act with maximum civil penalties of $220,000 and daily penalty provisions for continuing offences. It is important to understand your obligations under the Act and if you are likely to trigger the threshold this year or in future years.

Although your organization will not be required to report until 31st October 2011 if you trigger in the 2010-11 year, it is important to know what GHG emissions and energy data will be required to meet the detailed reporting requirements under the program. You should then put in place the systems now to record, analyse and report the yearly emissions so that you are sure you have all of the required data in a form that is sufficient to enable you to meet the NGER reporting requirements. For more details about the program visit the Department’s website.

If you are not sure about your corporation’s greenhouse emissions or energy production and consumption, wish to see if you could trigger the threshold, or require assistance to prepare your NGER inventory and documentation call our experienced professional team for help on 08 6467 7122 or email us here.