The commission has rejected the registration of 18,238 Victorian energy efficiency certificates created by nine accredited businesses for 85 separate refrigerated cabinet activities found to be in breach of the program rules. This is less than one per cent of the approximately 2.8 million certificates created in respect of the refrigerated cabinets activity under the program.
The commission’s decision to reject the registration of these 18,238 certificates follows evidence gathered by the commission that shows the businesses failed to comply with installation, evidentiary and record keeping requirements compulsory under the program rules.
In addition, the commission has:
suspended the accreditation of one business and banned it from carrying out refrigerated cabinet activities in the program.
imposed accreditation conditions on one business and banned it from carrying out refrigerated activities in the program.
issued formal warnings to seven accredited businesses.
Commissioner Sitesh Bhojani said installation, evidentiary and recordkeeping rules exist to enable the commission to substantiate that Victorian energy efficiency certificates created by accredited businesses though the program relate to activities that result in genuine emissions reductions.
“The rules protect consumers engaging with the Victorian Energy Upgrades program, and make sure that it delivers the intended benefits to our community. Industry compliance with the rules is critical to protect the integrity of the program and its primary objective to reduce greenhouse gas emissions,” Commissioner Bhojani said.
This enforcement action concludes an investigation initiated by the commission in June 2022 in response to allegations of non-compliant refrigerated cabinet activity under the program rules. The investigation included site inspections, interviews, audits and other compulsory information gathering processes.
“The investigation found evidence of repeated non-compliance by a small group of businesses accredited to carry out refrigerated cabinet upgrades through the program,” Commissioner Bhojani said.
“Two accredited businesses in particular demonstrated a clear disregard for these important program rules and the commission has responded accordingly with an accreditation suspension and activity ban for one business, and an accreditation condition and activity ban for the other.”
A further seven businesses received formal warnings from the regulator for repeatedly but unintentionally creating certificates that did not comply with the program rules for refrigerated cabinet activity.
“We take our role as regulator of the Victorian Energy Upgrades program seriously and do not hesitate to act where we find businesses are not following the program rules. It is the responsibility of every accredited business to know what the program rules are and what is required to demonstrate compliance with the rules, or risk enforcement action if found in breach of the rules,” Commissioner Bhojani said.
The commission will have expanded compliance and enforcement powers as part of reforms coming into effect later this year that strengthen the Victorian Energy Upgrades program rules. These include increased protections for consumers engaging with the program.
“I urge industry to closely and regularly review the program rules – and your business practices for compliance with the program rules – to make sure you can meet the new obligations that these reforms will bring,” Commissioner Bhojani said.
