Activities that generate certificates in the Victorian Energy Efficiency Target scheme are known as Prescribed Activities. This section of the website explains how these Prescribed Activities must be undertaken. Properly understanding this aspect of the scheme is of critical importance to any accredited business.
Prescribed Activities are energy saving activities specified in the Victorian Energy Efficiency Regulations 2008 (the Regulations). By undertaking Prescribed Activities, accredited businesses (Accredited Persons) are able to create Victorian energy efficiency certificates (VEECs). There are 17 broad categories of Prescribed Activities. Note: Some activities are confined to either the business or residential sectors. For full details of which activities are eligible in each sector, visit the VEET Activities by Sector page by clicking here.
- Water heating - decommissioning low efficiency water heating products and installing high efficiency water heating products. This category also includes the installation of solar pre-heaters or solar retrofit kits.
- Space heating and cooling - decommissioning low efficiency ducted heating products or central electric resistance heaters and installing high efficiency ducted heating products; installing high efficiency ducted heating products in premises where no other central heating or cooling product is installed; installing high efficiency space heating products, decommissioning refrigerative air conditioners and installing evaporative coolers, and decommissioning existing gas ductwork and installing new gas ductwork.
- Space conditioning - installing insulation, thermally efficient windows and weather sealing products. (Note that it is not presently possible to create VEECs from installing ceiling insulation)
- Incandescent lighting replacement - decommissioning high energy lamps, including incandescent lamps, and installing low energy lamps.
- Shower roses - decommissioning non-low flow shower roses and installing low flow shower roses.
- Refrigerators/freezers - purchasing high efficiency refrigerators or freezers (refrigerator purchase) and, destruction of pre-1996 refrigerators or freezers (refrigerator destruction).
- Televisions - purchasing high efficiency televisions.
- Clothes dryers - purchasing high efficiency electric clothes dryers or installing high efficiency gas clothes dryers.
- Pool pumps - purchasing high efficiency pool pumps.
- Standby power controllers - installing standby power controllers.
- In-home displays - installing an in-home display.
- Motors - installing high efficiency motor.
- Refrigerated Display Cabinets - installing high efficiency refrigerated display cabinet.
- Refrigeration Fan Motor - installing high efficiency refrigeration fan motor.
- Lighting upgrades - installing lighting equipment.
- Low flow trigger nozzles - decommissioning an inefficient trigger nozzle and installing an efficient low flow trigger nozzle.
- Prerinse spray values - decommissioning an inefficient prerinse spray valve and installing a water efficient prerinse spray valve; installing a water efficient prerinse spray valve on an existing fitting where no prerinse spray valve was previously installed.
Undertaking Prescribed Activities
Prescribed Activities must be undertaken in accordance with the Victorian Energy Efficiency Target Act 2007 (the Act) and the Regulations. Accredited Persons who fail to comply with the Act and the Regulations when undertaking Prescribed Activities cannot legally create VEECs from those activities and doing so can incur significant penalties.
Accredited Persons should ensure that any premises in which they wish to undertake prescribed activities is eligible for that particular activity. Check the VEET Activities by Sector page to be sure.
For a detailed account of the requirements for undertaking Prescribed Activities, refer to the Explanatory Note - Creating VEECs from Prescribed Activities at the end of this page.
'Assigning' the right to create VEECs
An important component of each Prescribed Activity is the assigning of certain rights to the Accredited Person. Under the Act, the right to create VEECs from a Prescribed Activity technically lies with the energy consumer for whom the activity is undertaken (although they cannot personally create the certificates unless they themselves become accredited). It is only when the energy consumer 'assigns' those rights to the Accredited Person that the Accredited Person then has the ability to create VEECs as a result of a given installation.
This assignment of rights is done using what is known as a VEEC assignment form, which contains details about the energy consumer, the installer, the incentive that is being offered, and the products that have been installed and (if relevant) decommissioned. Following the installation, the energy consumer is expected to sign the VEEC assignment form, thereby assigning their rights to those VEECs to the Accredited Person, while also verifying that the installation has taken place and confirming that the particulars on the form are correct.
As a condition of accreditation, all Accredited Persons must develop a VEEC assignment form in accordance with the mandatory criteria set by the ESC, which vary depending on which activity is being undertaken. Beyond the mandatory criteria, Accredited Persons may customise their own VEEC assignment forms to:
- incorporate the different information requirements of various prescribed activities into the one form; and,
- incorporate additional explanatory text, company logos and other features.
Any subsequent changes to VEEC assignment forms must be approved by the ESC before the forms are put into use. As with any VEET-related documentation, Accredited Persons must retain their completed assignment forms for 6 years and provide them to the ESC as required.
The one partial exception to the VEEC assignment form requirement is the activity of refrigerator/freezer destruction, in which case oral assignment may be obtained only if (i) written assignment cannot be reasonably obtained and (ii) the activity is conducted in respect of a residential premises.
To view the mandatory VEEC assignment form criteria, navigate to the Forms page using the menu on the left and download the relevant pro forma VEEC assignment form. More details regarding VEEC assignment form requirements, as well as detailed information about the entire process of undertaking Prescribed Activities, can be found in the Explanatory Note - Creating VEECs from Prescribed Activities (available at the bottom of this page).
Calculating the VEEC value of Prescribed Activities
For an indication of how many VEECs may be created from the various Prescribed Activities, please refer to the Calculators page. Alternatively, the Explanatory Note - Creating VEECs from Prescribed Activities contains a detailed breakdown of the calculations used to attribute VEEC values to different Prescribed Activities.
Declaration of discount factors
Under the Act, the responsible Minister may make a declaration specifying what is known as a discount factor. Discount factors alter the number of VEECs that can be created as a result of a Prescribed Activity or specified class of Prescribed Activities. The Minister must publish a notice of intention to declare a discount factor in the Victorian Government Gazette which specifies the:
- proposed discount factor;
- Prescribed Activity or class of Prescribed Activities in respect of which the discount factor is proposed; and,
- reasons for the discount factor.
Selecting products to use
An important component of each Prescribed Activity is ensuring that the energy saving product installed is listed on the product register. The VEET Products page provides general information about the VEET product register and an overview of the process to have a product listed on the register.
Inclusion of new Prescribed Activities
The process of adding new activities to the list of Prescribed Activities is currently managed by the Department of Economic Development, Jobs, Transport and Resources (formerly the Department of State Development, Business and Innovation). Persons seeking to propose new Prescribed Activities should contact the department at firstname.lastname@example.org for further details regarding the application process.