Moreland Energy Foundation

Last week, the Victorian Energy Minister announced that the Government had doubled the annual greenhouse gas emissions reduction target under the Victorian Energy Efficiency Target (VEET) scheme.

MEFL congratulates the Government on this decision. We recently made a submission to the Government calling for at least a doubling of the target. The scheme has already helped reduce the cost of energy saving measures like efficient light bulbs and weather proofing of homes for thousands of Victorian households, and the expanded scheme is estimated to deliver $2.6 billion in benefits to the Victorian economy.

In our submission, we also called for the scheme to be extended to businesses. The Government has now committed to extending the scheme to businesses, starting in 2012.

See the Save Energy website for more information on the VEET (also referred to as the Energy Saver Incentive).

The Victorian Energy Saver Incentive scheme provides rebates to households who install energy saving measures in their homes, like replacing inefficient appliances with more efficient ones, installing double glazing, or sealing up gaps and cracks around doors, windows and chimneys.

The Victorian Government has committed to expand the scheme to small and medium businesses, and has been consulting on which activities for these businesses should be subsidised under the scheme.

MEFL has a wealth of experience in helping businesses in Moreland save energy and cut their gas and electricity bills, through established and new energy efficiency measures, including replacing inefficient light bulbs, installing timers and many more.

We made a submission to the Victorian Government on this proposal, which focused on:

• the importance of designing energy efficiency schemes on the basis of high quality data on the costs and benefits of implementing energy efficiency measures on the ground;
• the mounting evidence that well-designed energy efficiency programs that include an element of behaviour change can reduce energy wastage and cut energy costs more effectively and cheaply than other programs;
• MEFL's extensive experience in implementing and measuring energy efficiency measures in both households and businesses, and gathering the kind of data that is required for designing these schemes properly.

You can download a complete copy of our submission on our website.

 MEFL has prepared a submission to the Department of Primary Industries (DPI) on the Energy Saver Incentive (ESI), and its expansion to cover small and medium businesses. 

The ESI (also known as the Victorian Energy Efficiency Target or VEET scheme) essentially provides a rebate to households for certain activities and products that improve their energy efficiency. 

The scheme applies to activities such as sealing gaps under doors and in wall vents, double glazing windows and purchasing certain efficient appliances like fridges. 

The Victorian Energy Efficiency Target (VEET) Scheme is a State Government program designed to help reduce greenhouse gas emissions from households in Victoria by 10% by 2010.

Under the Scheme, all electricity and gas retailers are required to purchase and then surrender a set number of Victorian Energy Efficiency Certificates (VEECs) each year, or pay a fine. One certificate represents approximately one tonne of greenhouse gas abated.

The VEET scheme has a list of prescribed activities such as installing an energy efficient appliance, solar hot water system or ceiling insulation. Each time a prescribed activity is undertaken a certain number of Victorian Energy Efficiency Certificates (VEECs) are created. For example, replacing an electric hot water system with an electric boosted solar hot water system is worth approximately 50 VEECs.

Typically, the customer would sign over or 'sell' their VEECs to either the appliance retailer or solar hot water or insulation installer in exchange for an up front discount on the purchase price of the product. The retailer or installer recovers this money by selling the VEECs to an energy retailer who uses them to meet their obligation to surrender a prescribed number of certificates at the end of the year, and thus avoid being fined.