The Victorian Energy Efficiency Target (VEET) scheme is a Victorian Government initiative promoted as the Energy Saver Incentive. It was established under the Victorian Energy Efficiency Target Act 2007 (the Act) and commenced on 1 January 2009. It is legislated to continue in three-year phases until 1 January 2030.
The purpose of the VEET scheme is to reduce greenhouse gas emissions, encourage the efficient use of electricity and gas, and to encourage investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by energy consumers.
The scheme operates by placing a liability on large energy retailers in Victoria to surrender a specified number of energy efficiency certificates every year. Energy retailers with a liability under the scheme are known as Relevant Entities. Relevant Entities are able to create certificates directly, or purchase certificates in a competitive market, or both.
Each certificate represents a tonne of greenhouse gas abated and is known as a Victorian energy efficiency certificate (VEEC). For the first three-year phase of the scheme (2009-11), the scheme target is 2.7 million VEECs per annum, increased to 5.4 million VEECs per annum during the second three-year phase, starting on 1 January 2012.
The Act and the Victorian Energy Efficiency Regulations 2008 (the Regulations) allow for accredited entities, known as Accredited Persons, to create VEECs when they help energy consumers make selected energy efficiency improvements to their homes, business premises or other non-residential premises. These improvements are specified in the Regulations and are known as Prescribed Activities. Revenue generated through the sale of VEECs enables Accredited Persons to offer energy consumers special benefits that may reduce the cost of undertaking these energy efficiency improvements.
The Act and the Regulations are maintained by the Department of Environment, Land, Water and Planning, while the Essential Services Commission (ESC) is responsible for administering the scheme, which includes such functions as accrediting persons to create certificates, auditing those persons, and managing the certificate register. The ESC has also produced the Victorian Energy Efficiency Target Guidelines.
For more details on the Victorian Energy Efficiency Scheme visit www.veet.vic.gov.au