EECCA welcomes Vic Labor's committment to VEET Scheme

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Publication date: August 13, 2014.

Status note: Present-tense statements, market figures, deadlines and program details in the archived record belong to its publication date. Check current official sources before making a decision.

What this article reported

The Energy Efficiency Certificate Creators Association has welcomed today's commitment by the Victorian Labor Party to the Victorian Energy Efficiency Target (VEET) scheme.

"More than 1.4 million households and businesses across Victoria have benefited from the VEET scheme in the last five years," Mr Bruce Easton, President of EECCA, said.

"We are very disappointed that the Victorian Government has today passed legislation in the Upper House to reduce the Target and close the VEET scheme."

"This will cost over 2000 jobs, it will cost households and businesses, and it will discourage take up of energy efficiency activities in Victoria," Mr Easton said.

EECCA welcomes Victorian Labor's commitment to VEET and looks forward to hearing more about its policy in the lead up to the November state election.

"We want to see the VEET scheme continue to 2029 as it was originally intended, and strengthened so that more Victorian households and businesses can benefit from the take up of energy efficiency activities," Mr Easton said.

The VEET scheme commenced in 2009 and was established to help Victorian households and businesses reduce their energy consumption and save money. It aligns with similar schemes in NSW, South Australia and the ACT, all of which are delivering real savings and benefits.

"Victorians want to be energy efficient; they want to install energy efficient lighting, heating, insulation and appliances," Mr Easton said.

"Scrapping VEET, which is saving more than one million Victorian households and businesses over $100 a year each and making us more energy efficient, just doesn't make sense."

EECCA believes that the modelling put forward by the Government to justify scrapping the VEET scheme is flawed.

"The assumptions used by the Government had no base and didn't understand how the Scheme actually operates," Mr Easton said.

"Our analysis shows that the scheme has actually delivered proportionally more energy efficiency activities to lower-income areas, reducing their energy costs and saving them money."

The Energy Efficiency Certificate Creators Association represents Australian businesses that operate in energy efficiency schemes in Victoria, NSW, South Australia and the ACT.

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What was EECCA's position on the Victorian Labor Party's commitment to the VEET scheme announced in August 2014?

EECCA welcomed Victorian Labor's commitment to the Victorian Energy Efficiency Target (VEET) scheme. This was significant because the Victorian Government had previously passed legislation to reduce the Target and close the scheme. EECCA's support reflected the scheme's track record: over 1.4 million households and businesses had benefited from VEET in its first five years since commencing in 2009. The scheme had delivered proportionally more energy efficiency activities to lower-income areas, reducing their energy costs and saving participating households and businesses over $100 per year each.

What were EECCA's concerns about closing the VEET scheme, and what did the organisation want instead?

EECCA warned that scrapping VEET would cost over 2,000 jobs and discourage Victorian households and businesses from adopting energy efficiency measures. The organisation wanted the scheme to continue to 2029 as originally intended and to be strengthened to expand participation. EECCA argued the Government's modelling justifying closure was flawed, with assumptions that lacked foundation and did not reflect actual scheme operations. This position aligned with similar energy efficiency schemes operating successfully in NSW, South Australia, and the ACT, all delivering real savings and benefits to participants.

How did EECCA's analysis challenge the Government's case for closing VEET?

EECCA criticised the Government's modelling as fundamentally flawed, arguing that the assumptions used had no factual base and failed to understand how the VEET scheme actually operated. The organisation's own analysis demonstrated that the scheme had delivered proportionally more energy efficiency activities to lower-income areas, directly reducing their energy costs. With over one million Victorian households and businesses saving more than $100 annually through the scheme, EECCA's evidence countered claims that VEET was ineffective or uneconomical. This analysis highlighted the practical, measurable benefits that households and businesses were realising through energy efficiency improvements.

What does EECCA's position on VEET reveal about energy efficiency certificate schemes in Australia?

EECCA represents Australian businesses operating across energy efficiency schemes in Victoria, NSW, South Australia, and the ACT, demonstrating that certificate-based schemes operate across multiple jurisdictions. The organisation's strong defence of VEET illustrates that energy efficiency certificate schemes create measurable economic and employment benefits. VEET's delivery of proportionally more activities to lower-income areas showed that well-designed schemes can address equity considerations alongside emissions reductions. The scheme's 1.4 million participants and over $100 annual savings per household indicate that certificate schemes can drive meaningful behaviour change and cost savings when properly structured and supported.

How does the VEET scheme comparison with other states inform energy efficiency programme design?

EECCA noted that VEET aligns with comparable schemes in NSW, South Australia, and the ACT, all delivering real savings and benefits. This multi-jurisdiction alignment suggests that energy efficiency certificate schemes can operate within different regulatory frameworks while achieving similar outcomes. The schemes' success in generating household and business participation, combined with employment creation and cost savings, provides evidence for programme design. However, in practice, scheme eligibility and benefits are not automatically portable: historical case studies do not establish eligibility for new projects, and each scheme's specific rules, activity requirements, and measurement pathways must be assessed individually for each proposed project.

What practical implications does EECCA's support for VEET continuation have for energy efficiency projects in Victoria?

EECCA's advocacy for VEET continuation to 2029 and strengthening reflects confidence in the scheme's framework for creating Victorian Energy Efficiency Certificates for eligible activities. For businesses and households considering energy efficiency projects, scheme continuity affects long-term funding certainty and certificate value. However, our guidance emphasises that a scheme's existence does not guarantee project eligibility: specific activities, equipment, measurement and verification requirements, and professional scope must be verified against current scheme rules and methods. Projects should be assessed on their technical merit and operating value independently of certificate expectations, with certificate revenue treated as a separate variable in investment cases.

Why did EECCA emphasise employment impacts alongside energy savings from VEET?

EECCA warned that closing VEET would eliminate over 2,000 jobs, linking energy efficiency to economic activity and livelihoods. This reflects that energy efficiency schemes generate employment across auditing, installation, measurement and verification, and advisory services. Our operating model—spanning energy audits, feasibility studies, measurement and verification, and project implementation across multiple sites and sectors—demonstrates how energy efficiency programmes sustain professional service employment. The job-loss concern also highlighted that scheme closure would disrupt established service chains. For organisations considering energy efficiency investments, understanding the full economic ecosystem—including professional services, installer networks, and supply chains—informs realistic project delivery and timeframes.

How does EECCA's analysis of VEET's equity impact relate to energy efficiency assessment practices?

EECCA's finding that VEET delivered proportionally more energy efficiency activities to lower-income areas demonstrates that well-structured schemes can address equity alongside environmental outcomes. This is relevant to how energy audits and opportunity registers are scoped and prioritised across portfolios with mixed sites. Our six-stage delivery approach—from assessment through ongoing performance—can be applied across diverse facilities and organisational structures. The VEET equity finding suggests that energy efficiency opportunities should not be concentrated only in high-value or large facilities; systematic assessment of all sites, including those serving lower-income communities, can identify proportionally significant savings and benefits that improve both operating costs and affordability.

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