Changes to the VEU program by the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill 2024

Summary of key changes to the Victorian Energy Upgrades (VEU) program and what it means for industry participants.

20 May 2025

The Victorian Government has made amendments to the Victorian Energy Efficiency Target Act 2007 (Act) via the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill 2025.

These amendments expand and strengthen the Victorian Energy Upgrades (VEU) program, helping more households and businesses save on energy costs through cleaner, electric appliances.

Act amendments commencing 21 May 2025

Key amendments to the Act commencing on 21 May 2025 are listed in table below:

Act reference	Act amendment	What it means for the program and industry participants
Amended sections 17(1), 27(2) and 30(g)	Extension of the VEU program and target periods to the end of 2045 (from end of 2030)	Program participants can continue to deliver upgrades and create Victorian energy efficiency certificates (VEECs) under the VEU program until the end of 2045. This provides long-term certainty for industry and will help households electrify as the state works towards net zero emissions by 2045.
Removal of section 34(b)	Removal of the 31 January creation deadline for which VEECs can be surrendered to meet an energy retailer’s liability for the previous compliance year.	Energy retailers can acquire any registered VEECs to surrender to meet their annual energy liability for the previous compliance year up to the date they submit their annual energy acquisition statement with the commission. Impact for 2024 compliance year liability: As the commission has extended the 2024 annual energy acquisition statement deadline to 30 June 2025, energy retailers can acquire any registered VEECs for surrender up to June this year.
New section 76AA, 76EA, 76EB Amendments to sections 76D and 76E Removal of sections 26B(1)(c), 76B(5) and 76C(4)	Update to VEET Scheme registry account (VSRA) sections of the Act to deal with identified transitional issues.	Related body corporates are now able to apply for and be granted VSRAs. Transitional arrangements particularly relating to management of VEECs held by the applicant have been clarified.

Act reference

Act amendment

What it means for the program and industry participants

Amended sections 17(1), 27(2) and 30(g)

Extension of the VEU program and target periods to the end of 2045 (from end of 2030)

Program participants can continue to deliver upgrades and create Victorian energy efficiency certificates (VEECs) under the VEU program until the end of 2045.

This provides long-term certainty for industry and will help households electrify as the state works towards net zero emissions by 2045.

Removal of section 34(b)

Removal of the 31 January creation deadline for which VEECs can be surrendered to meet an energy retailer’s liability for the previous compliance year.

Energy retailers can acquire any registered VEECs to surrender to meet their annual energy liability for the previous compliance year up to the date they submit their annual energy acquisition statement with the commission.

Impact for 2024 compliance year liability:

As the commission has extended the 2024 annual energy acquisition statement deadline to 30 June 2025, energy retailers can acquire any registered VEECs for surrender up to June this year.

New section 76AA, 76EA, 76EB

Amendments to sections 76D and 76E

Removal of sections 26B(1)(c), 76B(5) and 76C(4)

Update to VEET Scheme registry account (VSRA) sections of the Act to deal with identified transitional issues.

Related body corporates are now able to apply for and be granted VSRAs.

Transitional arrangements particularly relating to management of VEECs held by the applicant have been clarified.

Other minor Act amendments commencing on 21 May 2025 include:

Amendment to the powers to extend the date of lodgement of the annual energy acquisition statement by energy retailers.
Minor amendments related to the following to reflect that these records must contain information specified in the Victorian Energy Efficiency Target Guidelines:
- assignment forms
- form and content of VEECs
- notification of VEEC transfers.

Act amendments to commence via proclamation (anticipated date of 1 July 2025)

Introduction of civil penalty requirements for the following actions under the VEU program:

Accredited persons creating VEEC(s) that contain incorrect information or do not comply with program rules for creating certificates or recording prescribed activities.
Persons giving false or misleading information or producing a document that is false or misleading in a material particular to the commission, even where the person does not know the information or document is false or misleading.

Providing Essential Services Commission with:

New powers to issue an improvement or prohibition notice to non-compliant scheme participants to encourage and enforce compliance with the Act.
Expanded powers to:
- issue warnings and impose conditions under section 40A of the Act
- disclose information about a scheme participant’s conduct to accredited persons.
Enforcement powers where scheme participants do not comply with training and competency requirements specified by the commission and do not provide evidence of that compliance to the accredited persons.

Flexibility in the Act to allow activities to be prescribed for:

activities required to be undertaken by other laws
activities to be undertaken only in respect of vulnerable and low-income consumers.

Updates to program documents

We have updated the Relevant Entity Guide to reflect above amendments which commences on 21 May 2025, in addition to other minor updates.

Where to get help

If you have any questions about this update, please contact the VEU program support team by:

Phone: (03) 9032 1310
Email: veu@esc.vic.gov.au.