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Victorian Energy Regulator Takes Firm Action Against Program Abusers
The Essential Services Commission has taken decisive enforcement action against two businesses for allegedly providing false information and breaching consumer protections within Victoria’s flagship energy efficiency initiative.
In a significant crackdown on non-compliance, the commission has banned Shantey Pty Ltd, trading as Energy Efficient Upgrades, from the Victorian Energy Upgrades (VEU) program for five years and refused millions of dollars in certificates claimed by two businesses.
The VEU program enables Victorians to reduce energy costs by supporting households and businesses to implement energy-saving measures. Under the program, accredited businesses conduct efficiency upgrades that generate Victorian energy efficiency certificates, which can then be sold on the open market.
According to the commission’s investigation, Energy Efficient Upgrades and its contractors allegedly engaged in several deceptive practices, including staging photographs to falsely claim upgrades. In some cases, they reportedly brought water heater units to premises with no existing water heaters to fabricate evidence of decommissioning.
The business also allegedly engaged in prohibited sales and marketing activities, such as doorknocking and telemarketing, while employing high-pressure sales tactics to secure customers. Additionally, the commission found that Energy Efficient Upgrades failed to properly collect required co-payments from consumers, with some instances of paying consumers in cash to use as co-payments or refunding these mandatory contributions.
As a result, the commission has refused registration and ordered the surrender of 2,586 certificates created by Energy Efficient Upgrades, valued at more than $200,000 based on the March 24, 2026 spot price of $83.70. Further regulatory action against the business is being considered.
In a separate but related enforcement action, the commission refused registration of 48,550 certificates created by Ecosaver Australia Pty Ltd, worth approximately $4 million. The commission alleges Ecosaver and its contractors submitted falsified photographic evidence, including using the same images of decommissioned lighting as evidence across multiple upgrade projects.
The investigation also found that Ecosaver claimed certificates for upgrades that didn’t comply with VEU and industry standards while engaging in banned marketing activities like doorknocking and telemarketing.
“This action against Energy Efficient Upgrades and Ecosaver Australia shows the commission is serious about stamping out unacceptable behaviour in the VEU program and putting consumers first,” said Essential Services Commission Chairperson and Commissioner Gerard Brody.
Brody emphasized that accredited businesses must ensure compliance from their contractors and representatives. “If they don’t, it’s their reputation and profits at stake,” he stated.
Both companies exercised their right to challenge the commission’s decisions, with Energy Efficient Upgrades contesting its accreditation cancellation and Ecosaver Australia disputing the refusal of its certificates. However, after reviews were completed on March 26, 2026, the commission’s original decisions were upheld in both cases.
The enforcement actions represent part of a broader effort to maintain integrity within Victoria’s energy efficiency sector. The VEU program has been a cornerstone of the state’s strategy to reduce energy consumption and greenhouse gas emissions while helping consumers manage rising energy costs.
“Our strong approach to compliance and enforcement is important to provide a level-playing field for businesses that do the right thing and to give consumers confidence in the VEU program,” Brody added.
The commission’s enforcement measures highlight the importance of regulatory oversight in ensuring energy efficiency programs deliver genuine environmental and economic benefits while protecting consumers from misleading or fraudulent practices.
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8 Comments
Cracking down on false claims and non-compliance is essential to maintaining the credibility of voluntary energy efficiency programs. Regulators must stay vigilant to protect ratepayers and ensure equitable access to incentives.
Businesses forfeiting millions in certificates is a significant loss, but the regulator’s actions send a clear message that abuse of energy efficiency schemes will not be tolerated. Protecting program integrity should be the top priority.
Strong enforcement action needed to maintain integrity of energy efficiency programs. Falsifying upgrades and deceptive practices undermine public trust and distort incentives. Glad to see the regulator taking a firm stance against non-compliance.
While energy efficiency upgrades can save businesses money, it’s troubling to see some taking advantage through fraudulent means. Glad the regulator is holding them accountable and barring repeat offenders from the program.
Energy efficiency is an important part of the transition to a low-carbon economy. While the majority of businesses likely participate in good faith, these incidents highlight the need for robust verification processes to maintain public confidence.
Disappointing to see businesses abusing energy efficiency initiatives through fraudulent claims. These programs are vital for driving sustainability, so it’s crucial that regulators closely monitor compliance and swiftly penalize offenders.
Agreed. Strict enforcement is essential to ensure the benefits of these programs reach legitimate participants, not bad actors trying to game the system.
Curious to learn more about the specific deceptive practices uncovered, such as the staged photographs. Ensuring accurate and transparent reporting is key to the long-term success of initiatives like the Victorian Energy Upgrades program.