Summary of key changes to the VEU program and what it means for industry participants.
Program changes under the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Act 2025 commencing 1 July 2025
1 July 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) Act 2025.
Further to our previous program update, some Act amendments took effect on 21 May 2025 and further amendments take effect from today, 1 July 2025.
The Act amendments expand and strengthen the Victorian Energy Upgrades (VEU) program, helping more households and businesses save on energy costs through cleaner, electric appliances.
The amendments that commence on 1 July 2025 include:
New obligations for industry participants
The amendments introduce new prohibitions on providing false or misleading information to the commission. The prohibitions apply to accredited persons, scheme participants, relevant entities and other industry participants. Industry participants may need to review and update their quality assurance practices to comply.
New Essential Services Commission (commission) compliance and enforcement powers
To maintain VEU program integrity and protect consumers, the commission has new and expanded compliance and enforcement tools including mandatory training and competency requirements for scheme participants, prohibition notices and improvement notices.
Further detail about the amendments commencing on 1 July 2025 and updated guidance documents to reflect these changes are provided below.
More information about Act amendments commencing 1 July
Act reference | Act amendment | What it means for industry participants in the VEU program |
New section s14FA Amended schedule 1 | New powers to require scheme participants to:
| These amendments help ensure scheme participants are appropriately skilled to deliver upgrades which meet the consumer needs. Scheme participants are now liable for:
Scheme participants may need to update their systems and processes to ensure compliance with these new requirements. Non-compliance with these requirements are subject to civil penalty amounts of 60 penalty units for natural persons and 240 penalty units for bodies corporate. Accredited persons remain liable for ensuring any scheme participants working on their behalf meet these requirements. |
New sections s20(8) and s68(2) Amended schedule 1 | Introduction of civil penalty requirements for the following breaches under the VEU program:
| These amendments provide the commission with expanded powers to take action against non-compliant actors in the program to help protect program integrity. Accredited persons, scheme participants, product applicants and relevant entities may need to review their quality assurance systems and processes to ensure they do not provide incorrect, false or misleading information/document to the commission. Providing false or misleading information to the commission may be subject to civil penalty amounts of 60 penalty units for natural persons and 240 penalty units for bodies corporate. This applies even where the person does not know the information is false or misleading. |
New sections s40AB | New power for the commission to issue an improvement notice to a scheme participant, accredited person or person holding themselves out to be an accredited person or scheme participant or acting under or in accordance with the VEU program. | These amendments provide stronger consumer protections and expand the commission’s compliance and enforcement powers. We may issue improvement notices to remedy appliances, equipment or services that has caused or is likely to cause harm to human health, safety or damage to property. Non-compliance with the notice is subject to civil penalty amounts of 60 penalty units for natural persons and 240 penalty units for bodies corporate. We may also:
|
New section 40AC | New power for the commission to issue a prohibition notice to a scheme participant or person holding themselves out to be acting under or in accordance with the VEU program. | These amendments provide stronger consumer protections and expand the commission’s compliance and enforcement powers. We may issue prohibition notices to prohibit a person from undertaking prescribed activities or regulated actions, if they have breached the program rules and has or is likely to cause harm to human health or safety, or damage to property. A person who fails to comply with the prohibition notice or an accredited person who knowingly allows a prohibited person to undertake a VEU activity or regulated action may be subject to civil penalty amounts of 60 penalty units for natural persons and 240 penalty units for bodies corporate. We may also:
|
Amended sections s40A and s66 (1) | Expanded powers to:
| These expanded powers support the commission to maintain the integrity of the VEU program by:
|
Amended section s15 | Flexibility to allow activities to be prescribed for:
| These amendments enable targeted incentives to be provided to vulnerable or low-income consumers and also where upgrades are required under other laws. Changes to regulations and other subordinate instruments would be required to introduce relevant activities and incentives. |
Updates to program documents
We have updated the VEET Guidelines to align with a number of the Act amendments including:
- updates to section 7 to specify training and competency requirements for scheme participants
- updates to sections 8 and 9 to specify the information that must be included in VEEC assignment forms and VEEC creation forms
- update to section 10 to specify the information that must be included in a VEEC transfer notice.
The notice of amendment of the VEET Guidelines is expected to be gazetted in the Victorian Government Gazette on 3 July 2025 and takes effect on the same day.
We anticipate publishing the updated VEET Guidelines on our website on the 3 July 2025 here.
We have also updated the Obligations and Program Guide for Accredited Persons to reflect the above amendments, 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.