• VEU Proposed changes see program extension to 2045
• IPART reinforce marketing requirements and compliance
• VEEC market activity spikes following VEU announcement
• ESC market begins to show price recovery

VEU Proposed Changes See Program Extended to 2045.

This week, the Victorian Energy Upgrades program (VEU) announced a series of proposed legislative changes to the program aimed at boosting uptake by further supporting energy efficiency and degasification. Wednesday’s announcement saw the VEEC spot and forward markets trade down in quick succession as one of the proposed changes looks to extend the liability deadline, reducing market pressure to reach target ahead of the normal 30 April deadline. There are three primary proposed changes as outlined below.

 

1. Program extension from 2030 to 2045

The extension will lend to providing investment certainty and aligns directly with Victoria’s 2045 net zero target.

 

2. Strengthening the Commission’s regulatory powers

Currently the Commission’s enforcement powers only extend to Accredited Providers (APs) under the program. The extension would allow for greater oversight over the licensed installers performing the upgrade works, and allow the Commission to address non-conformance directly.

 

3. Removing the ‘Vintage Rule’ for liable entities

The annual VEEC target is relevant for the compliance period each year running from 1 February to 31 January, and coincides with the estimated volume of VEECs required to be surrendered by liable entities. This means that market supply and demand is governed by all VEECs created within the compliance year (known as being within the ‘vintage’) plus any surplus creation from previous years. By removing the requirement for VEECs surrendered to be created before 31 January, this extends the period of eligible creation and therefore may increase available supply for the target each year.

 

IPART Reinforce Marketing Requirements under the Program.

Recently IPART released a notice to remind all participants within the Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS) of appropriate marketing policies. All companies must have a contractor licence before advertising, contracting or subcontracting the following works:

• • All electrical wiring work
  • All plumbing, drainage and gas fitting work
  • All air conditioning and refrigeration work (excluding plug-in appliances)

On request, all participants must be able to provide evidence of their contractor licences for the activities they are either advertising or installing.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.