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Compliance push weeds out non-compliant businesses, $4.4 million in certificates forfeited

Essential Services Commission

From Ballarat to Dandenong, Essential Services Commission inspectors have been out in force around the state, checking that energy efficient installations meet Victorian Energy Upgrades (VEU) program rules.

The VEU program is an energy efficiency program, designed to help Victorians cut their energy bills by supporting households and businesses to use energy more efficiently. Accredited businesses undertake energy efficiency upgrades that entitle them to create Victorian energy efficiency certificates, which they can then sell.

Kicking off 2026 with increased compliance monitoring, inspectors have already conducted compliance blitzes across Melbourne and regional Victoria. This includes inspections of:

  • lighting upgrades on farming and agricultural properties in the Ballarat, Golden Plains and Moorabool areas
  • energy efficient air conditioner installations in the northern and eastern suburbs of Melbourne, including Vermont, Doncaster East, Bundoora, and South Morang
  • industrial heat pump upgrades around Dandenong, Clayton, Werribee South and Greater Geelong
  • building based lighting upgrades in Greater Dandenong.

Alongside inspections, the commission’s Fraud Taskforce is calling thousands of consumers from across Victoria to confirm that upgrade works were completed in line with VEU requirements.

Together with data analysis, certificate assessments, audits, consumer surveys and investigations into tip-offs, this proactive monitoring helps detect non-compliance and ensure the integrity of the program. It also helps maintain a level playing field for accredited businesses and scheme participants that do the right thing.

Evidence gathered from these inspections has led to enforcement action against three accredited businesses in 2026 so far, with more under investigation.

Quotes attributable to Essential Services Commission Chairperson and Commissioner, Gerard Brody

“We’re inspecting more VEU upgrades than ever to ensure products are installed correctly and energy savings are genuine. These inspections protect customers and maintain the integrity of the program.”

“Most installations are compliant and show the program is delivering benefits for Victorian households. But where business fail to meet the rules, we will take action.”

“This year, our compliance work has led to two businesses being kicked out of the program altogether, and businesses forfeiting $4.4 million worth of energy efficiency certificates.”

“These inspections level the playing field for the thousands of program participants doing the right thing, and they tell the few who aren’t: our officers could turn up anywhere and there are real consequences for non-compliance.”

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As Victoria's economic regulator, the Essential Services Commission promotes the long-term interests of Victorian consumers with respect to the price, quality and reliability of essential services.


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