Victorian Government commits to VEET scheme

The new Victorian Labor government has acted on its pre-election pledge to retain the Victorian Energy Efficiency Target scheme which is designed to help participating households and businesses save money by improving energy efficiency and better manage their energy use.

The target for the scheme for 2015 will be 5.4 million Victorian energy efficiency certificates. Each certificate represents a tonne of greenhouse gas emissions that will be avoided.

The VEET Scheme commenced on 1 January 2009, and is similar to other state specific energy efficiency schemes in ACT and NSW in that it requires electricity retailers to reduce CO2e emissions by undertaking energy saving activities.  The cost of these energy saving activities is passed on to electricity and gas consumers (residential & industrial) via retailer invoices.  Electricity retailers are set Greenhouse Gas Reduction Rates (GHGRRs) per calendar year.  These figures are used to calculate the number of Victorian Energy Efficiency Certificates (VEECs) that each retailer must surrender each year to the scheme regulator.

The Victorian Energy and Resources Minister Lily D’Ambrosio said keeping the Victorian Energy Efficiency Target (VEET) would not only cut electricity bills and carbon emissions, but save thousands of jobs.

The Victorian government, led by Daniel Andrews, says it will review the VEET scheme in the first half of 2015, with a view to strengthening it even further.

The Andrews government has also promised to wind back the state’s hugely restrictive wind farm laws and create a $20 million New Energy Jobs Fund, which will offer grants to firms and companies specialising in high-growth renewable sectors such as new energy technology.