Compliance and Auditing

The Victorian Energy Efficiency Target (VEET) scheme is a Victorian Government initiative promoted as Energy Saver Incentive.



Relevant Entities  


Annual energy acquisition statement

Relevant entities that make scheme acquisitions under the Victorian Energy Efficiency Target Act 2007 (VEET Act) are required to report their acquisitions for each calendar year in an audited annual energy acquisition statement, to be provided to the Essential Services Commission (Commission) by 30 April of the following year.   The attached guidance paper has been prepared by the Commission to assist Relvant entities determine the acquisitions to be reported.

Relevant entities must ensure that their statement or return is audited in accordance with the Victorian Energy Efficiency Target Scheme Guidelines 2008 before being submitted to the Commission.   For further information on the VEET scheme’s audit process and requirements, please refer to explanatory note - relevant entities : audit process for annual energy acquisition statements.

The Commission will establish an approved VEET panel of auditors.  Relevant entities may (but are not required to) nominate auditors from the panel list to conduct audits of their annual statement.   

Greenhouse gas reduction rates

The greenhouse gas reduction rates establish the rate of liability of a relevant entity and therefore the number of VEECs they are required to surrender each year.  There are separate greenhouse gas reduction rates for gas and electricity with RE being the greenhouse gas reduction rate for electricity and RG being the greenhouse gas reduction rate for gas.  Relevant entities determine their liability for each year by multiplying the total liable electricity acquisitions for a year by the RE and the total liable gas acquisitions for a year by the RG

The RE and RG factors are to be determined and published in the Government Gazette before 31 May of the year that it applies to.  The RE and RG factors are published in advance to allow relevant entities time to plan their VEEC acquisition strategies.  If the RE and RG factors are not published prior to 31 May, then the default process under section 32(3) of the Act applies.

The RE factor for the 2009 compliance year (1 January to 31 December 2009) has been set at 0.13727 and the RG factor for the 2009 compliance year (1 January to 31 December 2009) has been set at 0.00817.

Shortfall statement

Where a relevant entity surrenders insufficient certificates in respect of a year, the Commission can issue a shortfall statement setting out the energy efficiency certificate shortfall penalty for which the entity is liable.  The penalty rate for the 2009 compliance year, as published in the Victorian Energy Efficiency Regulations 2008, is $40.00 per shortfall certificate.


Accredited Persons  


Under the VEET scheme, accredited persons are required to keep records and documents which provide evidence of the following:  
  • details of all Victorian energy efficiency certificates (VEECs) created by the accredited person during the year;
  • assignments of rights to create VEECs;
  • sales, purchase and/or service records of each product or service which constitutes a prescribed activity for which VEECs have been created, including make and model number if applicable, and the street address and postcode of the consumer, and
  • evidence of removal or destruction of existing products where removal or destruction is required by the regulations.  

These records must be kept for a period of 6 years after the VEECs were created.  

As an accredited person under the VEET scheme, you will be subject to periodic audits by the Commission to ascertain that you have kept the necessary records and to confirm that you have created VEECs in accordance with the VEET legislation. This may include site audits to ensure that the prescribed activities undertaken have been carried out in accordance with the requirements of the Victorian Energy Efficiency Target Regulations 2008.    

For further information on the scheme’s audit process and requirements, please refer to:  


Audit panel members  


The Commission has established a VEET panel of approved auditors from which scheme participants may nominate to conduct audits of their annual returns or statements.  The panel has been established to reduce a scheme participant's administration costs associated with identifying and nominating auditors that meet the Commission's key selection criteria, as well as improving the timeliness of the auditing process.

Firms may apply for appointment to the VEET panel of auditors at any time. For further information on how to become an audit panel member, please refer to Explanatory note - Information for potential VEET audit panel members.  This document will include details of information that a firm will need to provide the Commission and selection criteria against which they will be evaluated.

Firms wanting to be appointed to the panel will need to provide in principle agreement to the terms and conditions of a standard Tripartite Deed before being appointed to the panel.  

The Victorian Energy Efficiency Target Scheme Guidelines 2008 establishes the framework for the administration of the audit requirements under the VEET scheme. All applicants should be familiar with this document before applying to join the panel.   Audit panel members will need to execute a VEET tripartite deed in order to conduct an audit for the purposes of the VEET scheme. Under the terms of the tripartite deed, firms undertaking audits will have a primary duty of care to the Commission.