Green Guide to Government Policy
6. Market Mechanism
Mon 19 Dec, 2011 Victoria
In this section
6.1 Victorian Energy Efficiency Target (VEET)
The Victorian Energy Efficiency Target (VEET) scheme, promoted as the Energy Saver Incentive, commenced on 1 January 2009 and is a market-based mechanism designed to reduce greenhouse gas emissions, encourage efficient use of electricity and gas, and encourage investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by consumers.
Under the Victorian Energy Efficiency Target Act 2007 (the VEET Act), relevant entities including electricity and gas retailers, have a legal obligation to surrender Victorian Energy Efficiency Certificates (VEECs) to the essential Services Commission.
VEECS are created from household energy efficiency activities. Entities may acquire VEECs either by purchasing them or by providing households with energy-efficiency technologies. These activities may be extended to the small business and commercial sectors in later phases of VEET.
A penalty will be imposed on entities that fail to surrender sufficient VEECs to meet their liability.
As of the 7th of December 2011 new regulatory changes are being made to VEET allow certain prescribed activities to be undertaken in business and other non-residential premises, as well as residential premises. Click here for a copy of those changes.