Victorian Energy and Resource Efficiency Plans

Following the announcement that it will continue the Victorian Energy Efficiency Target scheme, the Victorian Government has said it will review the scheme in the first half of 2015. As part of that review, exemptions for Energy and Resource Efficiency Plan facilities may be considered.

Victorian gas and electricity facilities that are listed on the Energy & Resource Efficiency Plan (EREP) register are exempt from Victorian Energy Efficiency Target (VEET) charges. 

Specifically, retailers exclude consumption from EREP facilities in their liable electricity or gas acquisitions (annual consumption from their clients).  This exemption applies because EREP facilities were barred from participating in the VEET scheme, so could not offset the associated costs.  However, the EREP scheme was abolished on 25 March 2014.       

As a result of these changes, the exemption for EREP facilities will be considered in a wider review of the VEET scheme due to take place in the first half of this year.  

An initial consultation, provisionally due in April 2015, will invite interested parties to provide submissions to the review.  Indicative VEET charges are approximately $3.00 per MWh or $0.08 to $0.14 per GJ, so for larger consumers the costs can be considerable.   

There is no confirmation when or if any potential changes will take effect.  However, further information will be posted on the Essential Services Commission website as it becomes available -