Can NGER reporting obligations be transferred to another company?

Section 22X agreements

Under section 22X of the NGER Act, a controlling corporation can transfer its section 19 reporting obligations for a facility to another member of its corporate group. The group member must have operational control of the facility covered by the agreement, and is then known as the responsible member. The agreement must be submitted to the Clean Energy Regulator by 30 June of the relevant financial year, and the responsible member then lodges a section 22X report for that facility.

Section 22X reports still sit within the controlling corporation’s group for some purposes. For example, if any facility in the group reports market-based Scope 2 emissions, facilities in associated section 22X reports must report them too.

Reporting transfer certificates

A reporting transfer certificate allows NGER reporting obligations for a facility to move from the controlling corporation with operational control to the corporation with financial control of the facility. The certificate holder then reports for that facility.

Obligations move with the transfer

Both mechanisms carry their own civil penalty provisions. A responsible member can contravene sections 22X(2) and 22XA, and a certificate holder can contravene sections 22G and 22H, if it fails to provide a compliant report or otherwise breaches the Act. Holders of a reporting transfer certificate cannot be deregistered while they hold one.

Changes of ownership are different

A transfer is not the same as a change of ownership. If ownership of a group member or corporate group changes, the acquiring company takes on the reporting. If operational control of a facility changes part way through the year, each corporation reports for the period it had control. The Regulator publishes separate guides on acquisitions, disposals and mergers.