The Energy Saver Incentive Scheme

Energy Saver Incentive is the public name for one of the first mandatory energy efficiency target schemes in Australia. The target itself is called the Victorian Energy Efficiency Target (VEET) and is a legislative requirement placed on energy retailers through the Victorian Energy Efficiency Target Act 2007.

The scheme will help families reduce greenhouse gas emissions and cut their power bills.

The Energy Saver Incentive sets a target for energy savings, initially in the residential sector, and requires energy retailers to meet their own targets through energy efficiency activities, such as providing households with energy saving products and services at little or no cost.

The first phase of the energy saver incentive will save 8.1 million tonnes of greenhouse gas – the equivalent of making around 675,000 households carbon neutral for a year. It will play an important role in achieving the Government’s targets of reducing Victoria’s overall emissions to 60 per cent below the level it was in 2000 by 2050.

The scheme commenced on 1 January 2009 and is administered by the Essential Services Commission.

If you are a householder and would like to know more about how to access energy saver incentives and save energy, go to www.saveenergy.vic.gov.au (external website)

If you are a business and would like more information on how you can be involved in the scheme, including accreditation go to www.esc.vic.gov.au/veet (external website) or call (03) 9651 4911

The Victorian Energy Efficiency Target Act (VEET Act), passed on 11 December 2007, can be viewed online at the Parliament Victoria (external website).


Proposal to amend certificate creation practices for the Energy Saver Incentive

On 6 November 2009, the Department of Primary Industries (DPI) hosted a forum to provide information on a proposal to amend the Energy Saver Incentive to ensure the number of certificates created more accurately reflects the value of CO2-e greenhouse gas emissions abated. DPI also presented its preferred option to amend the Energy Saver Incentive to meet this objective. Please view the presentation below:

You will need Adobe Acrobat Reader to view the document below. A free copy can be downloaded from Adobe Acrobat (external link).

ESI Consultation Presentation
ESI Consultation Presentation (PDF 129KB)

DPI is seeking submissions on the proposed amendment. Submissions should be sent to DPI by Friday 20 November 2009.

Email submissions to:energysaverincentive@dpi.vic.gov.au

The Department will issue a Position Paper following its consideration of submissions received.

New activities under the Energy Saver Incentive

The Department of Primary Industries (DPI) received a number of formal submissions for new activity categories to be included under the Energy Saver Incentive, following an invitation that it issued in August 2009. Respondents were asked to provide submissions by 28 August and refer to submission guidelines (PDF 481KB) that were issued by DPI.

A government review panel is currently examining the submissions. The review panel will assist DPI to determine what activity categories should be included under the scheme, the abatement values to be deemed for activities and other information that will be included in revised Regulations.

DPI expects that draft Regulations will be available for consultation in February 2010.

Declaration of a discount factor

On 27 July 2009, the Minister for Energy and Resources published a Notice of Declaration (PDF 296KB) (external link) under section 19 of the Victorian Energy Efficiency Target Act 2007. The Notice declares a discount factor of zero in respect of ceiling insulation activities under the scheme. The discount factor will be effective from 28 July 2009 and expire on 31 December 2011.

Please find the Department's response to submissions (PDF 468KB) received on the discount factor.


Greenhouse Gas Reduction Rates

An Order under section 32(1) of the Victorian Energy Efficiency Target Act 2007 fixing greenhouse gas reduction rates for electricity and for gas for 2009 was made on 27 May 2009. See attached Order in Council.

The greenhouse gas (GHG) reduction rates allow relevant entities to calculate their liability under the Victorian Energy Efficiency Target scheme.


Victorian Energy Efficiency Target Regulations 2008

The Victorian Energy Efficiency Target Regulations 2008 (PDF 81KB) were made on 11 December 2008. This follows the Department's consultation on the exposure draft of the proposed Regulations and subsequent response to submissions received.

The Regulations affect, in particular, energy retailers, households, and businesses which choose to create tradeable energy efficiency certificates under the scheme.

The VEET Act indicates, in section 75, that Regulations may be made to determine a range of matters essential to the operations of the scheme. These relate primarily to:

• prescribing the energy efficiency activities that may serve as the basis for creating tradeable energy efficiency certificates under the scheme;
• determining the number of certificates which may be made with respect to these activities, and the circumstances in which these may vary; and
• prescribing a penalty rate for non-compliance with the requirements of the scheme.

• be made in writing to DPI at energysaverincentive@dpi.vic.gov.au;
• provide independent assessment of both the amount of energy to be saved, and the expected lifetime of the activity. This should be based on data which best approximates product performance under Australian conditions, for a period of not less than 12 months, and based on a statistically significant number of sites or observations;
• indicate the expected uptake of the activity (number of households per annum);
• indicate the expected upfront, installed capital cost of the activity; and
• indicate any other benefits or risks associated with the activity.