The Essential Services Commission has punished two businesses it alleges claimed Victorian energy efficiency certificates for work that didn't take place.
The commission alleges contractors working for A.K. Alvi Enterprises Ptd Ltd (Zerowatt) and Phenix Pty Ltd (LEDSaves) falsely claimed to have completed weather sealing and low-flow shower rose installations.
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 Victorian energy efficiency certificates, which they can then sell.
Zerowatt
Zerowatt has been suspended from the VEU program for three months. During this time, the business is banned from creating certificates for any type of energy efficiency work.
The commission alleges contractors working for Zerowatt manipulated photos to claim additional certificates and, on at least one occasion, incentivised a customer to support a false claim.
The commission has refused registration of 200 certificates, valued at $19,200*, and required Zerowatt to have its quality assurance processes independently audited.
LEDSaves
LEDSaves has had a six-month restriction placed on its accreditation, banning it from creating certificates for weather sealing and shower rose upgrades.
LEDSaves self-reported that contractors working on its behalf misrepresented the number of upgrades completed and submitted photos of different properties as evidence of work that did not occur.
The commission has refused registration and ordered the surrender of a total of 4,552 certificates, valued at over $400,000*, and required LEDSaves to have its quality assurance processes independently audited.
While the alleged conduct was carried out by contractors in both instances, as VEU accredited businesses, Zerowatt and LEDSaves, must ensure their contractors and the activities they create certificates for comply with VEU program rules.
The commission also has the power to cancel accreditation and ban businesses from the VEU program, issue penalty notices and instigate civil or criminal prosecution of businesses and individuals. It will not hesitate to use these powers if it considers them appropriate.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
"Accredited businesses must have safeguards in place to ensure contractors working on their behalf act with integrity. If they don't, it's their accreditation and reputation at stake."
"Falsifying evidence is a serious and flagrant breach of VEU rules. Restricting and suspending these businesses will enable them to implement safeguards to ensure it does not happen again."
"Stopping these businesses from creating certificates directly affects their ability to generate income from the VEU program. The message is clear – breaking the rules puts your business at risk."
*Figure calculated using the certificate value of $96, the spot price on 25 August 2025.
