Review of VEET scheme threatens jobs, says EECCA

Bruce Easton, President of the Energy Efficiency Certificate Creators Association (EECCA), has called on the Victorian Government to continue and strengthen the Victorian Energy Efficiency Target (VEET) scheme. Easton described the scheme as “win-win … providing real benefits for businesses and providing potential jobs for people transitioning from other sectors”.

Under the scheme, accredited businesses can offer discounts and special offers on selected energy-saving products and appliances installed in homes, businesses or other premises. The retailers must surrender a specified number of Victorian energy-efficiency certificates (VEECs) every year, each certificate representing a tonne of greenhouse gas abated.

For the first three-year phase of the scheme (2009-11), the scheme target was 2.7 million VEECs per annum. This increased to 5.4 million VEECs per annum during the second three-year phase starting on 1 January 2012 - and due to end in December 2014. The scheme is now under review and businesses are awaiting the government’s decision as to its future.

“We are not sure the government has got the message that the VEET scheme has been responsible for business growth and job generation,” Easton said. “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.”

Easton said the SMEs participating in the scheme have “made an important contribution to the Victorian economy”, investing in energy-efficiency measures such as seeking accreditation, compliance, purchase/supply of products, recruiting and training, etc. “Importantly,” he added, “they have provided job opportunities which, over the life of the scheme, well exceeds 4000 jobs.”

But these businesses are “substantially dependent on the existence of markets and the demand for energy-efficiency activities”, explained Easton. “As the target for this phase of the scheme … 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.”

Easton believes there is “more work to be done through this scheme”, claiming the right targets could help provide “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.”

“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 cannot afford to lose 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.”