Media Release

24 February 2014

Victorian Energy Efficiency Scheme Businesses concerned about lost jobs

In the growing climate of employment and economic uncertainty in Victoria, Bruce Easton President of Energy Efficiency Certificate Creators Association (EECCA) today called on the Victorian Government to continue and strengthen the Victorian Energy Efficiency Target (VEET) Scheme to ensure its benefits are realised by more Victorians, and to support business and employment opportunities. The VEET Scheme is currently under review and businesses are awaiting the Governments decision as to its future. Mr Easton said, We are not sure the Government has got the message that the VEET Scheme has been responsible for business growth and job generation. When the Government sets the VEET target, it also creates the market the demand for energy efficiency activities. Therefore the level of the target has a corresponding impact on the VEET businesses operating within the Scheme, which obviously impacts on the number of jobs generated through the Scheme. We are concerned there may be a lowering of the target from previous years. Mr Easton explained, These businesses are small-to-medium enterprises and have made an important contribution to the Victorian economy. They have invested in developing their energy efficiency businesses (seeking accreditation, compliance, purchase/supply of products, recruiting and training etc). Importantly they have provided job opportunities, which over the life of the Scheme well exceed 4,000 jobs. Their future in Victoria, beyond 2014 depends substantially on the decisions of the State Government in respect to the review of the VEET Scheme currently underway. But Mr Easton cautioned, Like all businesses, uncertainty is a killer. Our businesses are particularly at risk and substantially dependent on the existence of markets and the demand for energy efficiency activities. As the target for this phase of the Scheme (which ends in December 2014) is substantially met, VEET businesses face uncertainty about the future. Some of our members have ceased residential installations and others have been forced to cut back operations. Those with operations in other States, such as NSW where there is more certainty, are focusing their businesses where there is a demand for energy efficiency services. We are waiting on the outcome of the Scheme review now to see whether we have a business for 2015 and beyond. Mr Easton said, Theres more work to be done through this Scheme particularly to achieve higher levels of energy savings to Victorian businesses over the next three years. This represents a real area of job opportunity particularly for skilled technicians moving out of the manufacturing sector. We would expect to see, with the right Scheme targets, new job opportunities for activities such as commercial lighting, efficient refrigeration and air-conditioning, and other activities that will improve the efficiency of business and help bring down the cost of energy for those business. Its a win-win. Its providing real benefits for businesses and providing potential jobs people transitioning from other sectors. Mr Easton said, The VEET is one of the few initiatives the government has to address peak power, rising energy costs and climate change. It represents an industry that the Victorian economy can not afford to loose in the current climate. A cut to the Scheme or a low target will mean a cut to business and inevitably will impact on jobs. For further information refer to www.eeccc.org.au Pplease contact: Bruce Easton, President on 0417 568 918 or Ric Brazzale, Board Member on 0419 522 659 - Release End 1
Energy Efficiency Certificate Creators Association Inc 161 Victoria Parade Collingwood 3068

Background information to the Victorian Energy Efficiency Target Scheme

The VEET Scheme, also known as the Energy Saver Incentive (ESI) commenced operation at the beginning of 2009 and has supported the installation of a broad range of energy efficiency activities (energy efficient lamps, low flow shower roses, standby power controllers, chimney balloons, weather sealing, efficient appliances, etc) across Victoria. The VEET Scheme is a regulated market that requires gas and electricity retailers to achieve mandatory energy savings, which is done through the creation of Energy Efficiency Certificates (known as VEECs). Only businesses approved by the Essential Services Commission can generate these tradeable certificates under the rules of the Scheme. Certificates can only be generated by approved businesses, when they install approved energy efficiency products into homes and commercial businesses. The Scheme aims to make energy efficiency more affordable for Victorian businesses and households, and helps to reduce energy costs though reduction in energy use. The Scheme gives access to discounts and special offers to Victorian businesses and households on the installation of selected energy saving products and equipment. EECCA data shows that 90 per cent of current energy efficiency activities undertaken through the Scheme has been delivered in Victorian houses. Unlike its counterpart in NSW, the Victorian Scheme has had limited offerings to Victorian businesses. According to EECCA data (based on information from the Essential Services Commission) there are 144 registered businesses approved under the Scheme of which 88 were active through-out 2013. In a recently released report on Peak Demand (9th February 2014), the EECCA have calculated that the VEET Scheme has been responsible for a reduction of around $550m in Victorian households and SME businesses energy bills in 2013 through the installation of energy efficiency products. The Report shows that the VEET Scheme has resulted in savings of 1,852 Giga Watt hours (GWh) equivalent to 3.7 per cent of Victorias annual electricity use and continues to grow.

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Energy Efficiency Certificate Creators Association Inc 161 Victoria Parade Collingwood 3068