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VEECs

Scheme Overview

The VEET Scheme (Victorian Energy Efficiency Target Scheme) established under the Victorian Energy Efficiency Target Act 2007 (the Act) and commenced on 1 January 2009.  It is legislated to continue in three-year phases until 1 January 2030.  The scheme is designed to play an important role in achieving the Victorian Government’s target of reducing greenhouse gas emissions from households by 10 per cent by 2010 and Victoria’s overall emissions to 60% by 2050.

Legislative objectives of the scheme include:

  • Reducing greenhouse gas emissions
  • Encouraging the efficient use of electricity and gas and
  • Encouraging investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by consumers.

The Essential Services Commission (ESC) administers the Victorian Energy Efficiency Target Act 2007 (VEET Act) and the Victorian Energy Efficiency Target Scheme Regulations 2008 (the VEET Regulations) with the aim of increasing uptake of energy efficiency measures in Victoria.

“Accredited persons only to create VEECs” - Section 16 of the VEET Act provides that an accredited person is either:

  • The consumer of electricity or gas in respect of whom the prescribed activity is undertaken or
  • A person who is the holder of an assignment of the right to create a VEEC made by the consumer

Any person or organisation can apply to be an accredited person under the VEET Scheme. However, accredited persons are subject to strict legal obligations under the VEET legislation.

How Do Liable Parties Surrender VEECs?

  • Liable entities have a legal obligation to surrender Victorian Energy Efficiency Certificates (VEECs) to the ESC. 
  • Relevant entities are required to surrender registered VEECs equal to their VEET scheme liability for the previous calendar year.
  • The Commission accepts VEECs for surrender from relevant entities between 1 January and 30 April each year to meet the previous year’s liability. 
  • The greenhouse gas reduction rate establishes the rate of liability of a relevant entity and therefore the number of VEECs they are required to surrender each year.
  • The VEET Act provides for the setting of a greenhouse gas reduction rate for electricity (RE) and a greenhouse gas reduction rate for gas (RG).

To determine their VEET liability each year, relevant entities need to:

  • Determine their liability for their electricity acquisition by multiplying their total liable electricity acquisition (i.e. amount of electricity in MWh acquired under scheme acquisitions in the year) for the year by the greenhouse gas reduction rate for electricity (RE) and/or
  • Determine their liability for their gas acquisition by multiplying their total liable gas acquisition (i.e. amount of gas in GJ acquired under scheme acquisitions in the year) for the year by the greenhouse gas reduction rate for gas (RG).

A relevant entity’s VEET scheme liability for the year will be the sum of their electricity liability and their gas liability for the year.

For futher information please visit www.veet.vic.gov.au