To allay uncertainties associated with the renewable energy (RE) premium rates of the Carbon Tax Act, the National Treasury has published a new draft RE Premium Notice, proposing the removal of the limitation of the tax period for which the RE premium rates would be applicable.
The Carbon Tax Act came into effect in June 2019 to help ease the electricity sector transition and to further promote investment in renewable energy, thereby provisioning for electricity generators to offset additional purchases of renewable electricity against their carbon tax liability for the first phase of the carbon tax until December 31, 2022.
