The Essential Services Commission has taken action against two Victorian Energy Upgrades (VEU) accredited businesses for allegedly claiming Victorian energy efficiency certificates for ineligible energy efficient upgrades.
The VEU program is an energy efficiency program, designed to help Victorians cut their energy bills and lower greenhouse gas emissions. Accredited businesses undertake energy efficiency upgrades that entitle them to create certificates, which they can then sell.
The commission alleges contractors working on behalf of Business Channel Australia Pty Ltd (Opt Energy) and Sustainable Renew Energy Pty Ltd (Sustainable Renew Energy) installed pre-rinse spray valves that did not comply with the VEU program rules.
Each upgrade involved two spray valves being installed per tap. This occurred after the tap was modified using a customised fitting, making the upgrades ineligible for certificates.
The VEU code of conduct requires participants to operate in a professional and ethical manner. Pre-installing these customised fittings misrepresents the greenhouse gas savings from the upgrades and undermines the integrity of the program.
The commission identified these breaches after investigating tip-offs about a surge in pre-rinse spray valve installations.
The commission has:
- refused registration of 13,879 certificates claimed by Opt Energy which are allegedly non-compliant, valued at almost $1.2 million
- refused registration and accepted the withdrawal of a total of 1,083 certificates created by Sustainable Renew Energy, valued at over $92,000
- warned both businesses against future non-compliance and reminded them of the VEU program requirements for pre-rinse spray valve upgrades.
As VEU accredited businesses, Opt Energy and Sustainable Renew Energy must ensure their activities and the certificates they create comply with VEU program rules.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
"We expect businesses to have safeguards in place to ensure they are following the program rules. If they don't, their accreditation, reputation and income are at stake."
"This action is proportionate and reflects the fact that both businesses cooperated with our investigations and took immediate action to comply with activity requirements."
"The commission will not hesitate to use its strong enforcement powers for repeated and serious VEU rule breaches. This includes the power to restrict, suspend and cancel accreditation, ban businesses from the program, and issue fines."
"We've stopped almost $1.3 million worth of ineligible upgrades being claimed, protecting the integrity of this important energy efficiency program."
On 31 July 2025, Opt Energy applied for a review of the commission decision to refuse registration of 13,879 allegedly non-compliant certificates to Opt Energy. The review was completed on 24 September 2025 and upheld the commission's decision.
On 12 September 2025, Sustainable Renew Energy applied for a review of the commission decision to refuse registration and accept the withdrawal of a total of 1,083 allegedly non-compliance certificates. The review was completed on 15 October 2025 and upheld the commission's decision.
