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The Victorian Energy Efficiency Target (VEET) scheme is a Victorian Government initiative promoted as Energy Saver Incentive. Under the Victorian Energy Efficiency Target Act 2007 (the VEET Act), a relevant entity is a person who: sells either electricity or gas, or both electricity and gas, to customers has 5000 or more customers to whom either electricity or gas is, or both electricity and gas are, sold to in Victoria, and makes a scheme acquisition in connection with the sale of either electricity or gas, or the sale of both electricity and gas, to those customers. Relevant entities have a legal obligation under the VEET Act to surrender Victorian energy efficiency certificates (VEECs) to the Essential Services Commission (Commission) annually between 1 January and 30 April for the previous calendar year in proportion to their scheme acquisitions. Relevant entities are also required to lodge an audited energy acquisition statement with the Commission annually. Scheme acquisition Under the VEET Act, scheme acquisition is defined as the purchase for on-sale to prescribed customers in Victoria of electricity from NEMMCO and/or gas from a producer, storage provider or interconnected pipeline operator or from VENCorp. Prescribed customers are defined by the Victorian Energy Efficiency Target Regulations 2008 (VEET Regulations) to mean all residential customers of gas of electricity in Victoria. Actual and potential relevant entities are encouraged to review the VEET Act and the VEET Regulations and to seek independent legal advice on liabilities under the VEET Act where required. Greenhouse gas reduction rate The greenhouse gas reduction rate establishes the rate of liability of a relevant entity and therefore the number of VEECs they are required to surrender each year. The VEET Act provides for the setting of a greenhouse gas reduction rate for electricity (RE) and a greenhouse gas reduction rate for gas (RG). To determine their VEET liability each year, relevant entities need to: determine their liability for their electricity acquisition by multiplying their total liable electricity acquisition (i.e. amount of electricity in MWh acquired under scheme acquisitions in the year) for the year by the RE, and/or determine their liability for their gas acquisition by multiplying their total liable gas acquisition (i.e. amount of gas in GJ acquired under scheme acquisitions in the year) for the year by the RG. A relevant entity’s VEET scheme liability for the year will be the sum of their electricity liability and their gas liability for the year.The RE and RG is to be determined and published in the Victorian Government Gazette before 31 May of the year that it applies to. If the RE or RG is not fixed and published before 31 May, then the relevant reduction rate for the previous year is used to determine liability in the given year. VEET account In order to create, transfer or surrender VEECs, relevant entities will need to hold an active VEET account. To open a VEET account, complete and submit to the Commission a signed application for VEET account form. Surrender of VEECs Relevant entities are required to surrender registered VEECs equal to their VEET scheme liability for the previous calendar year. The Commission accepts VEECs for surrender from relevant entities between 1 January and 30 April each year to meet the previous year’s liability. To surrender VEECs, relevant entities must complete and submit a VEEC surrender request form to the Commission. There are no fees payable for the surrender of VEECs. VEECs surrendered to the Commission are marked as invalid due to surrender and will no longer be available for reuse in the VEET scheme. Annual energy acquisition statement All relevant entities that make scheme acquisitions under the VEET Act are required to report their acquisitions for each calendar year in an audited annual energy acquisition statement to be provided to the Commission by 30 April of the following year. Shortfall statement Where a relevant entity surrenders insufficient VEECs in respect of a year, the Commission may issue a shortfall statement setting out the energy efficiency shortfall penalty for which the entity is liable. The shortfall penalty rate for the 2009 compliance year is $40.
Relevant entities have a legal obligation under the VEET Act to surrender Victorian energy efficiency certificates (VEECs) to the Essential Services Commission (Commission) annually between 1 January and 30 April for the previous calendar year in proportion to their scheme acquisitions. Relevant entities are also required to lodge an audited energy acquisition statement with the Commission annually.
Scheme acquisition
Greenhouse gas reduction rate
The greenhouse gas reduction rate establishes the rate of liability of a relevant entity and therefore the number of VEECs they are required to surrender each year. The VEET Act provides for the setting of a greenhouse gas reduction rate for electricity (RE) and a greenhouse gas reduction rate for gas (RG). To determine their VEET liability each year, relevant entities need to:
A relevant entity’s VEET scheme liability for the year will be the sum of their electricity liability and their gas liability for the year.The RE and RG is to be determined and published in the Victorian Government Gazette before 31 May of the year that it applies to. If the RE or RG is not fixed and published before 31 May, then the relevant reduction rate for the previous year is used to determine liability in the given year.
In order to create, transfer or surrender VEECs, relevant entities will need to hold an active VEET account. To open a VEET account, complete and submit to the Commission a signed application for VEET account form.
Relevant entities are required to surrender registered VEECs equal to their VEET scheme liability for the previous calendar year. The Commission accepts VEECs for surrender from relevant entities between 1 January and 30 April each year to meet the previous year’s liability. To surrender VEECs, relevant entities must complete and submit a VEEC surrender request form to the Commission. There are no fees payable for the surrender of VEECs. VEECs surrendered to the Commission are marked as invalid due to surrender and will no longer be available for reuse in the VEET scheme.
All relevant entities that make scheme acquisitions under the VEET Act are required to report their acquisitions for each calendar year in an audited annual energy acquisition statement to be provided to the Commission by 30 April of the following year.
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Phone: 03 9651 4911 You can also email us if you have any inquiries.
For a list of businesses offering products and services in your area, click here. Accredited persons are urged to lodge VEECs with the Commission as early as possible to maximise the likelihood they can be created by 30 January 2010. After that, Relevant entities cannot use them to meet 2009 obligations.
For a list of businesses offering products and services in your area, click here.
Accredited persons are urged to lodge VEECs with the Commission as early as possible to maximise the likelihood they can be created by 30 January 2010. After that, Relevant entities cannot use them to meet 2009 obligations.
