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21 June 2024: Important information on refrigerated cabinets and activity consultations

Important information on refrigerated cabinets

In January 2024, the Victorian Government released its Refrigerated Activity Review Response to Consultation. The Response to Consultation noted that the Department of Energy, Environment and Climate Action (DEECA) expected to publish updated regulations and specifications and re-introduce the RC activity into the VEU program by 1 July 2024. DEECA provided a clear cautionary note that:

  • four-sided display plug-in products would be excluded
  • DEECA would monitor the types of products being installed by accredited providers and would move quickly to expand this exclusion to other products if required.

The NSW Department of Climate Change, Energy, the Environment and Water has recently published a rule change update on refrigerated cabinet upgrades under the Energy Savings Scheme (ESS) in response to emerging issues in that state. Updates to refrigerated cabinet upgrades under the NSW ESS include:

  • Suspending all new refrigerated cabinet installations
  • Removing eligibility for any four-sided display cabinet
  • Removing the 'Total Display Area' from the calculation of lifetime
  • Clarifying replacement upgrades must be for like-for-like equipment.

The issues that have recently emerged in NSW follow concerning conduct from some accredited providers in Victoria in 2022 as outlined in the VEU Refrigerated Cabinet Activity Review. Recent feedback from industry representatives indicates that refrigerated cabinets with a four-sided display area are likely to be of poor quality and may have been designed to maximise available incentives. The large total display area for these products results in a high star rating when calculated in accordance with the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) 2020 Determination, and increased incentives under the VIC and NSW activities.

DEECA has been made aware that some accredited providers are now looking to promote other multi-sided display cabinets for installation under the VEU program once the activity is re-introduced which will result in a higher star rating as result of their large total display area, increasing available incentives. This is concerning given the recent issues in NSW. DEECA considers that these issues require attention before the RC activity is to be reintroduced in the VEU.

DEECA will therefore be delaying the introduction of incentives for plug-in refrigerated cabinet activities until further notice while these matters are fully investigated.

DEECA will consider whether further changes to the activity are required to ensure products and activities are consistent with the objective of the Act and the program, once the activity is re-introduced. DEECA will issue further communications on the status of the refrigerated cabinet activity once further information is to hand.

Please note: that remote refrigerated cabinet products (GEMS Classes 12 to 15) which use a common central condensing system to supply units with refrigerant and require qualified tradespersons to install will continue to be eligible to be installed under the VEU program.

Co-payments and warranties and induction cooktops consultations

In April 2024, DEECA published consultations on electrification co-payments and warranties and the proposed introduction of a new induction cooktop activity. Both consultation papers stated that a response to consultation would be released prior to the planned commencement of activity requirements in July 2024. DEECA is finalising its position on both consultations. Response to consultations will be published in Q3 2024, with stakeholder given advance notice and a transition period before any requirements come into effect.

16 April 2024: Outcome of consultation on banning telemarketing and doorknocking under the VEU program

The Department of Energy, Environment and Climate Action (DEECA) recently consulted on banning telemarketing and doorknocking under the Victorian Energy Upgrades (VEU) program.

DEECA would like to thank the 211 stakeholders for their participation and engagement in this second round of consultation.

We have carefully read and considered all submissions, using insights gained to inform the response to consultation.

Response to consultation

The response to consultation broadly identifies the issues and themes raised by stakeholders during the consultation and provides reasons for implementing the preferred option, a phased ban on both telemarketing and doorknocking (Option C).

Option C was maintained as the preferred option, as it is expected to provide the best outcome for both consumers and the VEU industry, by balancing the benefits and risks for consumer protection and market stability.

For more information and to download the response to consultation document, please see our Engage Victoria consultation page.

Ban implementation dates

From 1 May 2024, accredited providers and scheme participants will no longer be permitted to use telemarketing to market energy-efficient products and services in the VEU program. A further ban on doorknocking methods will take effect on 1 August 2024.

The final regulations will be uploaded to the Victorian Energy Efficiency Target Regulations 2018 page and the Engage Victoria page in the coming weeks.

Design of the ban

Under the requirements for both bans, accredited providers and scheme participants cannot:

  • telephone a person, or doorknock at a person’s premises, except in certain circumstances where the person has provided express consent to being telephoned or doorknocked.
  • arrange an employee, contractor, or agent to telephone or doorknock a person’s premises, unless the person has provided express consent.
  • purchase a person’s contact details from a third party. To be specific, the contact details of a person who had previously expressed interest in a product upgrade under the VEU program, whether that be during, or after the person was either telephoned or doorknocked at their premises.

Regulation of the ban

The Essential Services Commission (ESC), as regulator and administrator of the VEU program, is engaging with VEU-accredited providers and installers to ensure they understand their obligations under the ban.

The ESC will actively monitor compliance once the ban is in effect through an expanded range of tools and will take strong enforcement action for breaches of the ban. Industry guidance material will be published on the ESC website in the coming weeks.

VEU consultations are currently open

The VEU program has a number of consultations open on Engage Victoria. DEECA acknowledges that having several consultations open at once may be challenging for some stakeholders. We hope that the summary below assists you in prioritising consultations that you may be interested in.

Victorian Energy Upgrades Induction Cooktops

  • Closes 21 April 2024.
  • Seeking feedback from stakeholders on the proposed design, Specifications, and Issues Paper regarding the introduction of a new induction cooktop activity.

Victorian Energy Upgrades Electrification co-payment and warranties

  • Closes 21 April 2024. 
  • Seeking feedback from stakeholders on the proposed introduction of new co-payment and warranty requirements for heat pump water heaters, reverse cycle air conditioners and cold rooms

Project-based Activities (PBAs)

  • Closes 29 April 2024.
  • Seeking stakeholder feedback on proposed changes to the Project Based Activities - measurement and verification.

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Page last updated: 25/06/24