Victorian Minister for Energy, Lily D’Ambrosio, has introduced a bill into state parliament to allow the Victorian Energy Upgrades (VEU) program to continue supporting households and businesses to electrify.
The Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill 2025 would extend the operation of the Victorian Energy Efficiency Target Scheme (VEET) – under which the VEU operates – to 2045.
In addition to extending the VEU, the proposed amendments provide the Essential Services Commission with additional powers to protect consumers and ensure the VEU can support the rollout of complementary policies currently under consideration, such as minimum energy performance standards for rentals.
The proposed changes have been welcomed by energy experts as a means to ensure energy efficiency and electrification continue to drive down energy bills, lower emissions and help address issues such as the looming gas supply shortfalls forecast by AEMO’s 2025 GSOO.
The Energy Efficiency Council (EEC) said that since 2009, the VEU program has provided energy performance upgrades to hundreds of thousands of businesses and millions of households.
EEC CEO, Luke Menzel, said the proposal is strong.
“It signals that the Victorian Government understands energy efficiency and electrification are critical to Victoria’s energy transition, and that the VEU will continue to help households and businesses invest in the technologies that will save them money and cut emissions.
“Electrification of homes and businesses has another benefit too – it helps us deal with gas supply shortfalls.
Mr Menzel said as per AEMO’s 2025 GSOO, the gas that Victorians have relied on from the Bass Strait is running out, and backup supply options can be very expensive.
“The good news is that households and businesses switching from gas to electric appliances and equipment are already helping prevent serious gas shortages.
“Programs like the VEU, which help build on that momentum and get even more households and businesses off gas, mean less money spent on pricey supply side options.
“We are 100 per cent behind any changes that improve customers’ experiences with the VEU – particularly vulnerable households – so expanding the ESC’s oversight of installations is a welcome improvement to the scheme.”
