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Energy Savings Scheme (ESS) Stakeholder Update - 11 November 2019 Disclaimer: These slides do not constitute legal advice. They should not be relied upon when addressing particular issues in the ESS, for which you may need to seek independent


  1. Energy Savings Scheme (ESS) Stakeholder Update - 11 November 2019 Disclaimer: These slides do not constitute legal advice. They should not be relied upon when addressing particular issues in the ESS, for which you may need to seek independent legal advice.

  2. Introductory items Housekeeping • Mobile phones on silent, please • Foyer - public hotspot • Emergency exits & procedure • This session is being webcast Upcoming event • Module 1: Introduction to the ESS (12 December 2019) 2

  3. AGENDA 8:30am – 9:00am Registration & introductions 9:00am – 9:20am Meet the ESS Committee & Message from the Chair 9:20am – 10.00am ESS Update 10:00am – 10:30am Questions and answers 10:30am – 11:00am Networking break 11:00am – 12:30pm Project Impact Assessment with Measurement and Verification ( PIAM&V ) Guidance Consultation 12:30pm – 12:40pm Close 3

  4. Welcome Philippa Fague General Manager, ESS ESS Stakeholder Update 11 November 2019

  5. Meet the ESS Committee & CEO Ed Willett, Chair, ESS Committee Chair Pamela Soon, Brian Executive Spalding, ESS Director & Committee ESS Member Committee Member Liz Livingstone, CEO, IPART 5

  6. Message from the Chair Ed Willett Chair, ESS Committee ESS Stakeholder Update 11 November 2019

  7. ESS Update Philippa Fague General Manager, ESS ESS Stakeholder Update 11 November 2019

  8. IPART’s role Meet the objectives of the ESS by building a compliance culture, ensuring Scheme integrity through compliance Industry Administration, Capacity regulation, building, guidance legislation, policy ESS Objectives DPIE IPART Feed learnings to policy maker 8

  9. A Culture of Compliance – success factors High rates of compliance & low rates of enforcement 1. High level of understanding of the legislative 2. framework High levels of ACP capacity and capability to apply 3. all methods Modern systems and robust processes to prevent 4. non-compliance, rather than react to it Understanding trends and setting priorities to shape 5. behaviours Improved relationships – respectful and open 6. 9

  10. What are we doing now? RISK BASED AUDITING COLLATING USING OUR INFORMATION FROM ‘REGULATORY ▼ Auditors – act on A VARIETY OF TOOLKIT’ behalf of IPART not SOURCES independent of IPART What is the risk to scheme integrity? 10

  11. ESS Team work program Business • Applications, audits, amendments, queries • Investigations, enforcement actions as usual • Scheme Participants compliance process • Reporting, liaising with policy makers • Process improvements Projects • Documentation improvements • Bespoke IT systems • Responses to ESS Rule changes 11

  12. BAU Improvements Team structure & capacity Administration Communication 12

  13. What do we have planned? Compliance priorities Review of communication and engagement with stakeholders • Accessible and clear guidance documents • Timely provision of Notices and responses to questions Reviews of processes and supporting documentation • Review of guidance documents • Review of evidentiary requirements • Review of applications process 13

  14. Projects Audit Scope submission form reduced processing times • Sampling guidance added consistency Audit recommendation tracking in Portal Audit report template project 14

  15. Supporting auditors Support our auditors • Help them perform their statutory function Ensure consistent outcomes Provide regular feedback 15

  16. What if I have a question? Why do How soon What if I How are we ask for can I don’t like they questions expect a the prioritised? in writing? response? response? 16

  17. Complaints/Reviewing a decision What if I have a complaint/grievance with IPART? Review of decision Other Complaint 17

  18. Complaints Varies by situation 1. Make submissions for consideration 2. We will acknowledge your issue and attempt to address it. 3. If you are not happy with the response, there is an escalation process. IPART Scheme ESS GM CEO Administrator 18

  19. Review of decisions Merits Review Judicial Review • Asks “was the decision • Asks “was the decision the best one?” made lawfully?” • Review by NCAT • Review by a court • Reviewer “stands in the • Generally available for shoes” of the original all IPART’s ESS decision-maker decisions • Reviewer can vary or replace a decision • Available only for specific types of decisions 19

  20. Merits review Examples of ESS decisions subject to merits review: A decision to refuse accreditation • A decision to cancel or suspend an accreditation • A decision to refuse registration of ESCs • A decision to impose or vary a condition of accreditation • Right to seek review You have the right to make an application for internal review of this decision within 28 days after the date of this statement. The application must be in writing, lodged at IPART's offices and specify an address to which a notice of the result of the review can be sent. 20

  21. Administrative review process IPART’s ESS Decisions Judicial Review Merits Reviewable Internal NCAT Decisions Merits Merits Review Review 21

  22. Questions and answers www.ess.nsw.gov.au 11 November 2019

  23. Networking Break 10:30am – 11:00am Please return promptly to your seats at the time indicated above 11 November 2019

  24. PIAM&V Guidance Consultation Ed Willett Chair, ESS Committee ESS Stakeholder Update 11 November 2019

  25. 1. Required records Question 1: What types of supporting evidence and explanatory reasoning should be included in the Preliminary M&V Professional Report? Existing record keeping requirements include an M&V Plan, • M&V Report and M&V Professional Report. 25

  26. 2. Measurement period where energy consumption is subject to seasonal variation Question 2: What types of evidence and justification can be provided to demonstrate that a proposed Measurement Period covers the full operating cycle for implementations where energy consumption is affected by weather? The Measurement Period used for the baseline and operating energy • models must cover at least one full operating cycle of the End User Equipment (EUE). Where energy consumption is affected by weather, a full operating • cycle is typically described by 12 months of data. Measurement Periods for the Baseline and Operating Energy Models • should be selected to reduce statistical bias such that they are the same length (eg 12 months) • Integer multiples of the operating cycle, not fractions of the operating cycle. • 26

  27. 3. Normal operating conditions Question 3: What other factors should be considered when defining normal operating conditions? The definition of normal operating conditions must include: • That the EUE is properly installed, maintained and used in • accordance with the original equipment manufacturer’s instructions The normal hours of operation of the EUE • Weather conditions (if applicable) and • Normal production. • 27

  28. 4. Measurement and Verification Professional (M&VP) engagement Question 4: What should be addressed by the explanatory reasoning in the Preliminary M&V Professional Report to demonstrate the appropriateness of factors related to the baseline Measurement Period? The proposed Rule change to clause 7A.5(h) will mean that • ACPs will need to demonstrate that an M&VP has been engaged and provided feedback on the measurement procedures before the project is implemented. We propose to require a Preliminary M&VP Report be used to • meet this requirement. 28

  29. 5. Measurement Boundary Question 5: What options (other than sub-metering), that can be supported by acceptable evidence, are available to ACPs to define the measurement boundary? M&V Plan must document all EUE included in the Implementation • within the measurement boundary Energy savings calculated using data from a utility meter must occur • due to the Implementation If Energy savings cannot be isolated from utility meter data as • occurring as a result of the Implementation an ACP must: use Sub metering • Change the RESA definition to include all activities at the Site. • 29

  30. 6. Independent variables Question 6: What other modelling criteria and corresponding thresholds should be considered? Question 7: Is there supporting evidence that can justify different thresholds than those provided in Table 1 and, if yes, what is that evidence? Selected Independent Variables must affect the energy consumption of • the EUE that is upgraded. We have proposed key statistical tests of good fit to assess • Independent Variables Modelling criteria Threshold t-statistic of Independent Variable Absolute value >2 Adjusted R 2 (coefficient of determination) >0.75 30

  31. 7. Accuracy factor Question 8: What additional guidance or tools may provide support for the calculation of data uncertainty? All material sources of error associated with the development of the • model must be taken into consideration when calculating the relative precision of the Energy Savings. These sources of error could include: Data uncertainty • Measurement uncertainty, and • Modelling uncertainty • 31

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