29 June 2022
The Minister for Energy has released a declaration of a discount factor for refrigerated cabinets under section 19(2) of the Victorians Energy Efficiency Target Act 2007.
The discount factor removes all incentives for any product installed that is listed on the Essential Services Commission’s register as belonging to product class 1 to 11 (inclusive) under the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2020 (Cth).
The Minister has also provided the following media release on the decision:
Suspension of fridge discounts after reports of gaming
Government incentives for energy-efficient refrigerated cabinets will be removed from the Victorian Energy Upgrades (VEU) program until a full activity review can be undertaken.
The Minister for Energy has acted swiftly to protect Victorians following reports of providers dumping fridges and gaming the energy efficiency program by removing all VEU incentives for 'plug-in' refrigerated cabinets.
The review will ensure the VEU program continues to meet its goals, making Victorian households and businesses more energy efficient and appropriately incentivising upgrades.
The review will also look to strengthen the requirement to replace existing refrigeration cabinets and limit the number of fridges per business.
The removal of incentives builds on the action taken last week by the Essential Services Commission, the regulator and administrator of the VEU program, to pause the processing of Victorian energy efficiency certificates for multiple installations of refrigerator cabinets while investigating any wrongdoing.
Since 2009, more than two million households and businesses across Victoria have saved on their energy bills thanks to the highly successful VEU program, helping Victorians cut power bills and reduce emissions through discounted energy-efficient products and services.
From 1 July, a Code of Conduct will be introduced for businesses working under the program, alongside legislative reforms and improved communications to consumers.
The Code includes protections for Victorians regarding marketing and sales, contracts, communication, installation, after-sale follow-up and customer dispute resolution. These protections are in step with industry codes and Australian Consumer Law.
On average, households save $110 a year on energy bills through the VEU program, with average businesses saving $3,700. Savings can run into hundreds of thousands of dollars for larger businesses. All Victorians benefit from lower energy prices thanks to these energy efficiencies.
DELWP is committed to reviewing the refrigerated cabinet activity. This review will ensure that all facets of the refrigerated cabinet activity meet the VEU program's objectives and appropriately incentivise the upgrade and installation of all classes of refrigerated cabinet products. The review will consider feedback received as part of the discount factor consultation and will be supported by further stakeholder consultation. The outcomes of the review will be finalised by early 2023.
Page last updated: 20/09/22