How does the Renewable Consumption Obligation notification work out a distribution company's compliance percentage?
The Renewable Consumption Obligation (RCO) notification's Annexure I, Example 2, takes a distribution company with 30,000 million units (MU) of input, adds 500 MU of rooftop injection, removes 2,000 MU nuclear and 900 MU green tariff supply, and divides 10,500 MU of renewable energy by 27,600 MU. The result is 38.04%.
The example, line by line
- Input at the periphery excluding transmission losses: 30,000 MU, made up of nuclear (A) 2,000 MU, renewable sources (B) 10,000 MU including hydro, wind, solar and co-firing of biomass and municipal solid waste, distribution losses (C) 1,500 MU, renewable energy requisitioned by consumers under the Green Energy Open Access Rules and supplied at green tariff (D) 900 MU, and fossil sources (E) 18,000 MU.
- In addition, 500 MU (F) is generated on rooftops and injected into the grid.
- Adjusted consumption = total input + F minus A minus D = 30,000 + 500 minus 2,000 minus 900 = 27,600 MU.
- Renewable energy consumed = B + F = 10,000 + 500 = 10,500 MU.
- Compliance = 10,500 / 27,600 x 100 = 38.04%.
What the green tariff line does
Green tariff units (D) are taken out of the base the distribution company is measured on. That is the example's treatment: it subtracts D from the denominator. Paragraph 8 of the notification says the obligation is calculated on energy supplied within the periphery and does not include open access consumption from other sources or captive self-consumption. For a designated consumer in Example 1's position, units requisitioned at green tariff count as renewable consumption in its own obligation.
Where the printed example does not tie
The five listed lines, A, B, C, D and E, add to 32,400 MU, not 30,000. A + B + E alone add to 30,000, which leaves out both C and D. The printed list therefore ties to 30,000 only if D sits inside B and C sits inside the other lines or is a loss rather than a supply source. Both points are our reading, and the notification gives no explanation of either. If D is inside B, the numerator keeps the 900 MU while the denominator drops it.
Distribution losses (C), 1,500 MU, are listed but the printed formula does not subtract them. Paragraph 8 speaks of energy supplied to consumers, which would suggest losses matter, so follow the printed formula and ask the Bureau of Energy Efficiency if your own case turns on it.
Checking the notification's sums
- 30,000 + 500 minus 2,000 minus 900 = 27,600
- 10,000 + 500 = 10,500
- 10,500 / 27,600 = 0.3804, so 38.04%
- A + B + E = 30,000. Adding C and D as well gives 32,400, so the printed list does not add up on its face.
All figures are the notification's own, which it presents as an example. They are not any real distribution company's data.
What Senseible does here
Senseible reads your electricity bills and fuel invoices into dated records, so the units on your bills are on file. It does not work out your distribution company's obligation or confirm who may claim the green units.
- Distribution company green units and your Scope 2
- RCO targets by year
- Counting captive consumption for RCO
- Green tariff and zero Scope 2
- Emissions calculators
Last reviewed 2026-11-06. Read from Annexure I, Example 2, and paragraph 8 of S.O. 4421(E), 27 September 2025, on 6 November 2026, and every sum was added again, including the 32,400 MU total of the five listed lines. The tie-out reading in the last section is our own; the notification prints no explanation.