The Energy Saver Incentive Scheme
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Backed by legislation, the Energy Saver Incentive, also known as the Victorian Energy Efficiency Target (VEET) is the first scheme of its kind in Australia. It is a market-based mechanism for emissions reductions, which places a legal requirement on energy retail companies through the Victorian Energy Efficiency Target Act 2007 and the Victorian Energy Efficiency Target Regulations 2008.
The Energy Saver Incentive is helping Victorians cut their power bills and reduce greenhouse gas emissions. The scheme gives households, and from 2012 businesses, access to discounts on a growing range of energy efficient products and services. Under the scheme, “Victorian Energy Efficiency Certificates” may be generated for installing eligible energy efficient products. The number of certificates that can be generated is based on the greenhouse gas savings associated from choosing the higher efficiency product over a regular product.
The Victorian Government requires energy retailers to meet an annual target through retiring Victorian Energy Efficiency Certificates. The annual target for the first three years of the scheme (2009-2011) will save 8.1 million tonnes of greenhouse gas, the equivalent of making around 675,000 households carbon neutral for a year.
The target for the second three years of the scheme has doubled and will save 16.2 million tonnes of greenhouse gas. In addition the scheme will be extended to allow businesses to benefit from energy efficiency activities.
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 or call 13 61 81.
For further information on the operation of the scheme, including for businesses that wish to deliver energy efficiency solutions, contact the scheme administrator the Essential Services Commission or call the ESC on (03) 9651 4911.
The Department of Primary Industries is responsible for future development of the scheme, including introducing new energy efficiency activities. View a summary of the process to introduce new energy efficiency activities to ESI.
Expansion of Energy Saver Incentive
To support the expansion of the scheme from 2012 new energy efficiency activities are being introduced.
New activities are being developed in stages:
Stage 1: Existing residential activities extension to business
Effective from 7 December 2011, eleven activities previously restricted to the residential sector are available to businesses through the ESI. These activities include:
- Water heating upgrades
- Space heating and cooling improvements
- Water efficient shower rose replacements
- Energy efficient lighting, televisions, refrigerators or freezers.
Submissions on the remaining residential activities to be extended to businesses – including standby power controllers – are being considered by DPI. It is anticipated that businesses will be able to access benefits for those activities from February 2012.
Stage 2: Proposed business specific activities
Following external consultation for business specific activities, a Final Position Paper and Consultation Report, together with draft regulations developed by DPI are now available here.
Final public comments, particularly on the draft regulations, are invited by 7 February 2012.
Thank you for your contributions to date
Subject to the outcomes of that final consultation, it is anticipated that the initial batch of new business sector specific activities could be available in March 2012.
DPI will continue to examine opportunities to introduce further business specific activities, including project-based activities, throughout 2012.
Stage 3: Invitation to propose new activities
Submissions are invited for new activity categories. Submissions may be relevant to the residential and/or business sectors, and include ‘deeming' approaches and ‘project based' approaches. Submissions for new activities should follow the Submission Guidelines. Please review activities already under development listed on this paper. Note that there is no need to resubmit a proposal already under consideration.
The closing date for Stage 3 has been extended to allow proponents additional time to prepare submissions.
Submissions now close Monday 27 February 2012.
Other activities under development
In addition to the development of the above activities, the inclusion of residential in-home displays, standby power controllers for businesses and the re-inclusion of residential ceiling insulation are currently being examined.
In-home Displays
DPI is currently considering submissions on the draft Victorian Energy Efficiency Target Amendment (In Home Displays) Regulations 2012, and any submissions on the consultation paper that also pertain to the Regulations.
Once stakeholder input has been fully considered the Regulations will be finalised. Provided that no unforeseen delays occur, the Regulations are likely to come into operation by early March 2012.
In November, the Department released a consultation paper on the potential inclusion of in-home displays (IHDs) into the Energy Saver Incentive scheme. Submissions on the consultation paper closed on Monday 12 December 2011. The paper has now been updated to reflect stakeholder feedback and can be accessed here.
The November IHDs consultation paper informed the (draft) Victorian Energy Efficiency Target Amendment (In Home Displays) Regulations 2012. The draft Regulations can be viewed here. Submissions on the draft Regulations closed on Friday 13 January 2012 and are now being considered.
Standby power controllers for business sector
A Discussion Paper on the proposal to extend standby power controllers to businesses is also available for comment here.
Submissions closed Monday 12 December 2011. Standby Power Controllers are to be introduced into Energy Saver Incentive as part of Stage 1, described above.
Residential ceiling insulation
After considering submissions received on the Minister’s proposal to declare a new discount factor for ceiling insulation by Friday 16 December 2011, the Minister has decided to proceed with extending the suspension of ceiling insulation from ESI for a further 6 months. The Minister’s notice of declaration may be viewed on the Victoria Government Gazette website.
The declaration of a new discount factor will enable further public consultation on steps taken by the Victorian Government to ensure the safety and integrity of ceiling insulation activities that occur under ESI.
Submission process and key dates
Email submissions are preferred, all submissions should be emailed to energysaverincentive@dpi.vic.gov.au with a relevant email header, for example: “Proposed new activity category”.
Submissions may also be made in writing to:
Energy Saver Incentive
Energy Sector Development Division
Department of Primary Industries
GPO Box 4440
MELBOURNE VIC 3001
| Energy Saver Incentive Consultations | Open/Event Date | Close Date |
|---|---|---|
| Submissions invited on new activity categories (residential and/or businesses) | September 2011 | 27 February 2012 |
| Consultation on regulations for proposed business specific activities | 24 January 2012 | 7 February 2012 |
ESI Development 2011
The following documents relate to the general development of the scheme during 2011:
Amendments to the Act - 2011
The Parliament of Victoria has passed amendments to the Victorian Energy Efficiency Target Act 2007.
These amendments, which come into effect on 1 January 2012, are intended to:
- give the Essential Services Commission expanded powers to suspend or revoke the accreditation of an accredited person;
- empower the Essential Services Commission to impose conditions or restrictions on accreditation;
- give the Essential Services Commission a new power to require accredited persons to obtain independent audits of their compliance with the Act; and
- strengthen and clarify the operation of the offence provisions in the Act applicable to the creation of certificates by accredited persons.
Doubling of the scheme target and expansion to the business sector
In March 2011, a Regulatory Impact Statement was released for consultation. The Statement set out options for determining the ESI scheme target for the period of 1 January 2012 to 31 December 2014.
After considering public submissions; the Victorian Energy Efficiency Target Amendment (Scheme Target) Regulations 2011 were made in May 2011, to:
- declare that the annual ESI scheme target will be 5.4 million tonnes of greenhouse gas emissions savings for the period of 1 January 2012 to 31 December 2004; and,
- update definitions for determining a retailer's 'scheme acquisitions' in anticipation of the expansion of the ESI scheme to include the business sector.
Indicative 2012 Greenhouse Gas Reduction Rates
Further to the doubling of the scheme target and expansion of the scheme to the business sector, DPI has undertaken preliminary calculations to provide indicative greenhouse gas reduction rates for electricity and gas for 2012. The indicative rates are:
| Greenhouse gas reduction rate for electricity | 0.11292* |
| Greenhouse gas reduction rate for gas | 0.00672* |
These preliminary figures are provided for information only and DPI takes no responsibility for any loss arising from reliance on these figures. The actual reduction rates to be used for the purposes of determining relevant entities' 2012 greenhouse gas emissions liability under section 31 of the Act, will be fixed by an Order in Council under section 32 in accordance with the requirements of the Act.
