Regulator takes action against businesses following allegedly non-compliant water heater installations
29 June 2023
An investigation by the Essential Services Commission has uncovered evidence of poor quality of heat pump water heater installations. These related to certificate creations in the Victorian Energy Upgrades (VEU) program by a number of businesses. These installations risked consumer safety, including by hot water pipes not being thermally insulated and water tanks not being appropriately secured.
Commissioner Sitesh Bhojani said “I have zero tolerance for non-compliant, unethical, unsafe, fraudulent or misleading behaviour in the VEU program. Heat pump water heater products that have not been properly installed are not compliant with the program rules and are ineligible for the creation of Victorian energy efficiency certificates.”
The commission has restricted two businesses, Auspro Group Pty Ltd and Evitech Pty Ltd, from installing heat pump water heaters under the VEU program until they each satisfy the commission through an independent audit that they are able to engage in these activities in compliance with the VEU program rules.
Two other businesses – Chromagen Australia Pty Ltd and Quantum Innovative Solutions Pty Ltd – have had conditions placed on their ability to install water heaters under the VEU program. These conditions include rectification requirements and reporting obligations.
The commission has warned six other businesses to immediately lift their game on the quality of their heat pump water heater installations.
The commission has also refused registration of certificates created in relation to non-compliant water heater activities and ordered the surrender of any certificates that had been registered for those activities by these businesses.
The commission will continue to closely scrutinise certificates created for the installation of heat pump water heaters under the VEU program and urges all businesses to ensure compliance with the VEU program rules.
Commissioner Sitesh Bhojani said “The VEU program is an important part of Victoria’s transition to net zero and helps Victorians reduce their energy bills. The commission is committed to ensuring all Victorians can have confidence with the VEU program.”
Note on 7 July 2023: This statement published on 29 June 2023 references Quantum Innovative Solutions Pty Ltd, that is not the same legal entity as Quantum Energy Technologies Pty Ltd, another accredited person in the VEU program.
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.
