Page 63 - SAIT Compendium 2016 Volume2

Energy ef ciency INCOME TAX ACT: REGULATIONS ANd NOTICES Energy ef ciency
Procedure for claiming allowance
2. A person that claims the allowance must, in respect of each year of assessment for which the allowance is claimed- (a) register with SANEDI in the form and manner and at the place that SANEDI may determine;
(b) appoint a measurement and veri cation professional to compile a report containing a computation of the energy
ef ciency savings in respect of that person for that year of assessment; (c) submit the report to SANEDI; and
(d) obtain a certi cate from SANEDI.
Responsibilities of SANEDI
3. (1) SANEDI must appoint suitably quali ed persons to consider reports submitted by a person claiming the allowance. (2) If after consideration of a report SANEDI is satis ed that the information contained in a report-
(a) complies with the standard;
(b) is an accurate re ection of the energy ef ciency savings of the person claiming the allowance in respect of the year
of assessment for which the allowance is claimed; and
(c) complies with these Regulations,
SANEDI must issue a certi cate containing the information set out in regulation 4 to the person claiming the allowance. (3) SANEDI may investigate or cause to be investigated any energy ef ciency savings of a person contained in a report
to be satis ed that the information contained in the report is an accurate re ection of the energy ef ciency savings
of the person submitting the report.
(4) SANEDI must-
(a) keep and maintain all reports submitted for consideration;
(b) create and maintain a database of all certi cates issued by SANEDI in accordance with these Regulations; and
(c) at all times provide the Minister of Finance and the Commissioner for the South African Revenue Service with
ready access to-
(i) the reports contemplated in paragraph (a); and
(ii) the database contemplated in paragraph (b).
Content of certi cate
4. The certi cate issued by SANEDI as contemplated in regulation 3 (2) must contain-
(a) the baseline at the beginning of the year of assessment for which the allowance is claimed, derived and adjusted in
accordance with regulation 5 and determined in accordance with the standard;
(b) the reporting period energy use at the end of the year of assessment for which the allowance is claimed, determined
in accordance with the standard;
(c) (i) the annual energy ef ciency savings expressed in kilowatt hours or the equivalent of kilowatt hours for the year
of assessment for which the allowance is claimed, determined in accordance with the standard; and
(ii) in case of a captive power plant, the difference between the kilowatt hours equivalent of energy input and the
kilowatt hours equivalent of energy output during the year of assessment in accordance with the standard;
(d) the initials and surname of the measurement and veri cation professional who compiled the report;
(e) the name and accreditation number of the measurement and veri cation body under whose auspices the measurement
and veri cation professional compiled the report;
(f) the name and tax registration number of the person to whom the certi cate is issued; (g) the date on which the certi cate is issued; and
(h) the certi cate number.
Baseline calculation
5. (1) For the purpose of this regulation ‘green eld project’ means a project that represents a wholly new project which does not utilise any assets other than wholly new and unused assets.
(2) The baseline-
(a) for the rst year of assessment for which the allowance is claimed must-
(i) in the case of a green eld project, be constructed from comparable data in the relevant sector; or
(ii) in any other case, be derived from data gathered during the year of assessment preceding the rst year of
assessment for which the allowance is claimed; and
(b) must be adjusted for every year of assessment for which the allowance is claimed-
(i) in accordance with the methodology in the standard; and
(ii) by taking into account the reporting period energy use at the end of the immediately preceding year of
assessment for which the allowance was claimed to compute the baseline for the beginning of the subsequent year of assessment for which the allowance is claimed.
Limitation of allowance
6. (1) For the purpose of this regulation-
‘co-generation’ means combined heat and power;
‘combined heat and power’ means the production of electricity and useful heat from a fuel or energy source which
is a co-product, by-product, waste product or residual product of an underlying industrial process;
‘energy from waste’ means waste or under-utilised energy in the form of process furnace off-gas from an industrial process; ‘renewable sources’ means-
(a) biomass;
(b) geothermal; (c) hydro;
(d) ocean currents;
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