Regulator suspends accredited business for 20 business days for alleged non-compliant lead generation and marketing activity

The Essential Services Commission has suspended accredited business Morris Group Australia Pty Ltd – trading as Smart User – from 21 February until 20 March 2024 for allegedly breaching the Victorian Energy Upgrades (VEU) program rules, including the code of conduct.

While suspended, Smart User will not be able to perform upgrades for the creation of Victorian energy efficiency certificates under the VEU program.

A commission investigation identified lead generation and marketing activity by Smart User – or a third party acting on its behalf – that allegedly breached the VEU code of conduct.

The alleged misconduct included failing to provide clear and accurate information to consumers about the program and products, which is a requirement of the code of conduct to prevent consumers being misled.

Specifically, Smart User representatives misrepresented to consumers that access to higher value activities in the VEU program required the consumer to have other, lower value, products installed first. There is no such ‘tiering’ approach requirement under the VEU program.

Smart User also allegedly breached program rules by creating more Victorian energy efficiency certificates than was permitted for upgrades due to an error.

The commission ordered the surrender of 45 non-compliant certificates created for activities associated with the alleged misconduct, valued at over $4,000. Smart User must also conduct an independent audit and meet training and other requirements around its marketing and lead generation activity within three months of the decision.

Commissioner Sitesh Bhojani said all accredited businesses and anyone doing work on their behalf must comply with the program code of conduct and rules.

“The commission actively monitors compliance with the program rules and when businesses fall short, we will not hesitate to act to protect consumers and uphold program integrity.

“Due to the alleged non-compliance, Smart User will be suspended from participating in the VEU program.”

Consumers should report concerns about the program to the commission via 03 9032 1310 or veu@esc.vic.gov.au.

No financial cost to consumers was identified as a result of this alleged misconduct.

Smart User sought internal review of the decision to suspend its accreditation for 20 business days. That decision was upheld by the commission on review.

Minor updates were made to this news update on 26 March 2024 to include the period of suspension and end date.

Please note: Certificate value on this page is based on the current spot price ($96).

About the Victorian Energy Upgrades program

The Victorian Energy Upgrades (VEU) program helps Victorians reduce their energy bills and greenhouse gas emissions by providing access to discounted energy efficient products and services. The program also encourages investment, employment and innovation in industries that supply these products and services. Large energy retailers are required to acquire and surrender Victorian energy efficiency certificates (VEECs) to meet annual targets set in Victorian legislation.

‘Accredited persons’ that carry out eligible upgrade activities by installing energy-efficient products in residential or non-residential premises can create VEECs.

The greenhouse gas savings associated with the installation of an energy efficient product and/or decommissioning of an inefficient product determines the number of VEECs that can be created. The level of incentive or discount received by households and businesses varies depending on the market activity and certificate price.