The commission ordered LED Saves to surrender 9,455 Victorian energy efficiency certificates (VEECs) worth approximately $650,000 and engage an independent auditor to test the business’ processes and procedures for auditing the creation of VEECs to comply with program rules.
Commission chairperson Kate Symons says the action followed a self-report by LED Saves, and an investigation into allegations that some of its subcontractors had made false and exaggerated claims about the number and type of lights they had upgraded at commercial businesses in Melbourne and regional Victoria to claim a higher number of VEECs.
“The commission acknowledges LED Saves’ actions in bringing its concerns about potential non-compliance to the commission which led us to initiate an investigation into the matter. LED Saves avoided a program suspension on this occasion due to the proactive steps it took to self-report the matter and cooperate with every stage of the investigation.
“However, the commission takes allegations of deliberate non-compliance with the program rules or fraudulent conduct seriously. We do not tolerate behaviours that could undermine the integrity of the program, or confidence in the benefits it delivers to Victorian consumers and the environment,” Commissioner Symons said.
The commissioner pointed to legislative amendments to take effect this year that will expand the regulator’s powers to protect the integrity of the Victorian Energy Upgrades program.
“While accredited businesses are responsible to ensure program compliance, as part of recent legislative amendments to strengthen the program, the commission will soon be able to take enforcement action against other scheme participants in addition to accredited businesses, such as subcontractors. And we will hold subcontractors to account if they breach the rules,” Commissioner Symons said.
Since it began in 2009, the Victorian Energy Upgrades program has delivered benefits to more than two million households and businesses by helping to cut power bills through energy efficiency measures while also reducing the state’s greenhouse gas emissions by more than 74 million tonnes.
There is no cost to consumers as a result of this enforcement decision. Businesses who received energy efficiency upgrades to their premises via LED Saves will continue to benefit from valuable energy efficiency gains through these upgrades.
