Fact Sheet: Amendments to the
Energy Savings Scheme Rule of 2009
3 April 2017
WHAT
This fact sheet provides important
information on amendments to the Energy
Savings Scheme Rule of 2009 (ESS
Rule). It is not a comprehensive list of
every amendment and you should ensure
that you are familiar with the amended
ESS Rule. 1
WHY
The NSW Government has committed to
reviewing the ESS Rule each year with a
major review of the ESS Rule every three
years. The most recent major review was
in 2015-16.
Annual updates to the ESS Rule are
intended to:

incorporate stakeholder feedback and
evaluation results

maintain the effectiveness of the ESS
Rule, through updates to savings
factors, and adding activity schedules
for new technologies

complement changes to building and
equipment standards

incorporate
new
methods
or
sub-methods for calculating energy
savings, and

make other enhancements to the ESS
Rule to maintain its integrity or reduce
transaction costs.
The Office of Environment and Heritage
(OEH) and the Division of Resources and
Energy (DRE) are responsible for
developing the policy behind the Energy
Savings Scheme (ESS).
DRE is
responsible for the ESS legislation,
including the ESS Rule, which is the legal
framework of the scheme.
WHO
This fact sheet should be read by
applicants,
Accredited
Certificate
Providers (ACPs), auditors, installers and
other interested parties.
WHEN
The amendments to the ESS Rule were
gazetted on 31 March 2017 and will take
effect from 28 April 2017. Clause 11 of
the amended ESS Rule provides
transitional provisions to allow the
previous version of the Rule to be used in
certain circumstances.
WHAT NEXT
IPART is updating all relevant method
guides and associated documents.
Applicants, ACPs and auditors will be
advised by email as updated documents
are released over coming weeks.
Applicants, ACPs, auditors, installers and
other affected parties should review the
amended ESS Rule and update their
processes, documentation, calculations
and compliance practices to incorporate
the ESS Rule amendments and Scheme
Administrator requirements.
Refer:
www.ess.nsw.gov.au/How_the_scheme_work
s/Legal_Framework_and_Rules
1
Independent Pricing and Regulatory Tribunal (IPART)
Fact Sheet
METHOD SPECIFIC AMENDMENTS
Clause 7A – Project Impact Assessment with Measurement and Verification (PIAM&V)

Clause 7A.2 has been amended to clarify that energy models (ie, Estimate of the Mean,
Regression Analysis, Computer Simulation) can be developed for single sites (based on
measurements) or multiple sites (using a Sampling Method).

Clause 7A.5(f1) has been added to clarify that measurement periods must include time
periods during which independent variables may increase energy consumption.

Clause 7A.8 and equation 7A.2 have been amended to clarify the upper and lower limits
of effective range.

Clause 7A.15 has been amended to clarify that Measurement and Verification (M&V)
Professionals must demonstrate an understanding of the PIAM&V method, as well as
best practice measurement and verification techniques. Applications to become an
M&V Professional must be in the form and manner approved by the Scheme
Administrator.

ACPs or new applicants may now apply to use the Sampling Method. Clause 7A.20 has
been added to the ESS Rule to specify requirements for use of the Sampling Method.
Other PIAM&V clauses have also been amended to account for the Sampling Method.
Clause 8 – Metered Baseline Method

The NABERS Baseline sub-method (clause 8.8) was amended to include
NABERS−rated hospitals as eligible NABERS buildings. The NABERS tables in
Schedule A of the ESS Rule (Tables A20 and A21) have been amended to include
NABERS Hospital data. In addition, the NABERS Rating Period was defined in
clause 10.1.

The Aggregated Metered Baseline (AMB) sub-method (clause 8.9) was amended to
clarify that the Accredited Statistician is responsible for performing the randomised site
allocation and validating the statistical methods prior to the implementation date.
Clause 9 – Deemed Energy Savings Method (all sub-methods)

Clause 9.2A.5A was added to clarify the current process for Scheme Administrator
acceptance (or rejection) of products including emerging lighting technologies.
Consequential amendments have also been made to clauses in each sub−method.

Many of the tables and schedules relating to the deemed methods have been updated
with new and amended factors, activity requirements and references to relevant
standards. Stakeholders should ensure they have reviewed the tables and schedules
relevant to their activities in detail prior to calculating energy savings using the amended
ESS Rule.
Clause 9.3 – Sale of New Appliances (SONA) sub-method

The deemed electricity equipment savings for all activities in Schedule B have been
updated.
IPART – Fact Sheet: ESS Rule Amendments – 3 April 2017
Page 2

Activity Definition B1 was amended to include equipment requirements for combination
washer dryers.
Clause 9.4 – Commercial Lighting Energy Savings Formula sub-method

The co-payment requirement (clause 9.4.1(e)) was amended to clarify that energy
savings may only be calculated using that method if the purchaser has paid a net
minimum of $5 per mega-watt hour of electricity saved (excluding GST). This clarifies
the existing requirement that the minimum co-payment must be made before ACPs can
apply to register energy savings certificates (ESCs). In kind payments are not
acceptable and co−payments must not be reimbursed either before or after ESC
registration.

A new clause (clause 9.4.1(h)) was added to stipulate that lighting upgrades of traffic
signals must meet the relevant requirements of AS2144:2014 or other standards or
benchmarks as specified by the Scheme Administrator.

Default factors and classifications in Schedule A have been amended for lamp circuit
power (LCP) values (Table A9.2) and air conditioning multipliers (Table A10.5).
Clause 9.4A – Public Lighting Energy Savings Formula sub-method

Clause 5.4(c) was amended to clarify that Network Service Providers may undertake
energy saving activities that include non-network options, such as demand
management. New terms are defined in clause 10.1.

Default factors and classifications in Schedule A have been amended for LCP values
(Table A9.2) and air conditioning multipliers (Table A10.5).
Clause 9.7 – Removal of Old Appliances (ROOA) sub-method

The definitions of small business building and residential building have been expanded
to include additional Building Code of Australia (BCA) classes (Clause 10.1).
Clause 9.8 – Home Energy Efficiency Retrofits (HEER) sub-method

The co-payment requirement (clause 9.8.1(g)) has been reduced to $30 (excluding
GST) for each implementation. In-kind payments are not acceptable and the minimum
co-payment must not be reimbursed either before or after ESC registration.

The requirement to create a minimum of four ESCs per implementation (clause 9.8.1(f))
was amended to only apply to low cost activities, ie, lighting, showerheads and
draught−proofing (Schedule E activities). The minimum four ESC threshold has been
removed for high cost (Schedule D) activities.

Energy savings factors and lifetimes have been updated for some Schedule D and
Schedule E activities.

The definitions of small business building and residential building have been expanded
to include additional BCA classes (Clause 10.1).

Data reporting requirements for HEER activities (under clause 6.8) have been
expanded. ACPs are now required to report electricity and gas savings for each activity
definition in their Implementation Data Sheet.
IPART – Fact Sheet: ESS Rule Amendments – 3 April 2017
Page 3
Clause 9.9 – Installation of High Efficiency Appliances for Businesses (IHEAB)
sub−method

Schedule F of the ESS Rule has been amended to include new activity definitions for
gas fired boilers and heaters and, as a result, Equation 17 has been updated to include
gas calculations.

Installation requirements for high efficiency air conditioners (activity definition F4) have
been amended to allow eligible equipment to be installed in small businesses.

Deemed hours for high efficiency liquid chilling packages (activity definition F2) and high
efficiency air conditioners (activity definition F4) have been amended.

Data reporting requirements for IHEAB activities (under clause 6.8) have been
expanded. ACPs are now required to report electricity and gas savings for each activity
definition in their Implementation Data Sheet.
Clause 9.10 – 1-for-1 Residential Downlight Replacement

This method is inactive and has been removed from the ESS Rule.
ADMINISTRATIVE UPDATES
Implementation data sheet
The Scheme Administrator has amended the spreadsheet used to submit the data required
under clause 6.8 of the ESS Rule (Implementation Data Sheet). More information on the
amended Implementation Data sheet will be available on the ESS Website over the coming
weeks. 2
Guidance Documents
Updated method guides and associated documents will be published on the ESS website 3
over the coming weeks. The previous documents will be made available on the ‘document
archive’ page.
www.ess.nsw.gov.au/Methods_for_calculating_energy_savings/Document_archive
It remains the responsibility of all ACPs to ensure that they comply with the Electricity Supply
Act 1995, Electricity Supply (General) Regulation 2014 and the ESS Rule.
GENERAL AMENDMENTS
Steps towards integration of the ACT Energy Efficiency Improvement Scheme
Clauses 1.1(b), 5.4(k), 5.4(l) and 5.9 of the ESS Rule have been amended to accommodate
possible integration of the ACT Energy Efficiency Improvement Scheme (EEIS) with the
NSW ESS. ACT integration, however, will not commence unless, and until, the ACT EEIS is
recognised by the NSW Minister for Energy and Utilities as an approved corresponding
www.ess.nsw.gov.au/Registry/Registering_certificates
3 Refer: www.ess.nsw.gov.au
IPART – Fact Sheet: ESS Rule Amendments – 3 April 2017
Page 4
scheme and an EEIS integrated commercial lighting method is determined by the ACT
Minister for Climate Change and Sustainability.
FREQUENTLY ASKED QUESTIONS
Where do I find information on the policy intent behind the ESS Rule amendments?
DRE released a position paper outlining the policy intent for the amendments to the ESS
Rule. This paper also summarises feedback from the public consultation process and the
NSW Government’s position. A track change (non-official) version of the ESS Rule is also
available on the DRE website. 4 If you have any questions about the general amendments or
method specific amendments, please contact DRE at:
[email protected].
I have a question on the ESS Rule amendments. Who do I speak to?
If you have any questions about administration of the amended ESS Rule, please contact
IPART at:
[email protected].
Refer: www.resourcesandenergy.nsw.gov.au/energy-consumers/sustainableenergy/efficiency/scheme/energy-savings-scheme-rule-change-2016-17
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IPART – Fact Sheet: ESS Rule Amendments – 3 April 2017
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