Businesses have been ordered to forfeit $16 million in Victorian energy efficiency certificates and been struck with serious sanctions in 2025, as the Essential Services Commission cracks down on non-compliance in the Victorian Energy Upgrades (VEU) program.
The enforcement outcomes were boosted by increased site inspections, enhanced intelligence and the creation of a fraud taskforce – a unit focussed on stamping out fraudulent activity in high-volume, low-cost energy efficient upgrades.
This complemented existing compliance monitoring that includes certificate assessments, audits, consumer surveys and investigating tip-offs.
The commission also used its expanded enforcement powers to protect consumers and program integrity in 2025. It uncovered multiple cases involving:
- fraudulent conduct, such as business providing false information and photos about energy efficiency upgrades to claim more certificates
- breaches of consumer protections, such as high-pressure sales tactics, not obtaining proper consumer consent, and illegal telemarketing and doorknocking.
The VEU program is an energy efficiency program, designed to help Victorians cut their energy bills by supporting households and businesses to use energy more efficiently. Accredited businesses undertake energy efficiency upgrades that entitle them to create Victorian energy efficiency certificates, which they can then sell.
Effective compliance and enforcement action is critical to ensuring Victorians can trust the VEU program to deliver genuine energy savings and protect consumers from harm.
Enforcement action in 2025
In 2025, the commission:
- refused to register or required businesses to surrender over 150,000 energy efficiency certificates, valued at around $16 million
- restricted, suspended or cancelled the VEU accreditation of over 15 businesses
- issued penalties totalling over $92,000
- required six accredited businesses to complete compliance audits
- issued formal warnings to 11 accredited businesses.
The commission's expanded compliance and enforcement tools mean appropriate action can be taken based on the level of risk and harm. This includes restricting accredited businesses from conducting specific activities or immediately suspending businesses from the program for more serious breaches.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
"Our investigations uncovered behaviour including serious fraudulent conduct, exaggerated claims and dodgy, banned marketing practices. These businesses have paid a significant price and serve as an example for others – if you break the rules, you will be caught."
"Victorians can have confidence that energy upgrades are delivering real energy savings because dodgy practitioners are being weeded out of the program."
"Fraudulent and high-pressure practices harm consumers and undermine trust in the whole VEU program – if you don't comply with the rules, your business, profits and reputation are at stake."
