The Victorian Energy Upgrade (VEU) program is an energy efficiency program, designed to help Victorian households and businesses cut their energy bills and lower greenhouse gas emissions.
Accredited businesses undertake energy efficiency upgrades that entitle them to create energy efficiency certificates, which they can then sell. Victorian energy retailers must acquire and surrender these certificates to meet energy efficiency obligations.
Iberdrola Australia Energy Markets Pty Ltd was the only retailer that didn’t meet its 2024 liability. It had a certificate shortfall of 38,225 and paid $3.4 million (USD 2.2 million) in penalties.
The commission granted a two-month extension to energy retailers to acquire certificates and submit documentation to help them meet their obligations for 2024.
Since it began in 2009, the VEU program has led to millions of inefficient energy products being replaced in Victorian households and businesses.
Quotes attributable to Essential Services Commission Chairperson and Commissioner, Gerard Brody
“It’s pleasing to see almost all energy retailers fulfill their obligations for 2024, which is an improvement on 2023 compliance.”
“For the 2026 compliance year, the penalty applicable to a retailer for each certificate it fails to surrender will increase to $100 (from $90). We expect that this change will further encourage retailers to meet their surrender obligations.”
*Figure calculated using the certificate value of $83.25, the spot price on 1 December 2025
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