The Essential Services Commission has accepted a court-enforceable undertaking requiring Victorian Energy Upgrades (VEU) accredited business Ecovantage Pty Ltd to rectify non-compliant water heater installations at its own cost.
This is the first enforceable undertaking the commission has accepted under the VEU program.
The VEU program is an energy efficiency program that helps Victorians cut their energy bills by supporting households and businesses to use energy more efficiently. Accredited businesses undertake energy efficiency upgrades that entitle them to create Victorian energy efficiency certificates, which they can then sell.
Ecovantage has acknowledged it claimed up to 31,666 Victorian energy efficiency certificates for non-compliant heat pump water heater installations across 82 sites, largely in the Barwon South West and Loddon Mallee regions.
The commission alleges a contractor working on Ecovantage’s behalf:
- made false claims about upgrades to claim more certificates, including failing to decommission water heaters and boilers being upgraded
- completed upgrades that did not comply with VEU and industry rules, some of which may pose risks to health, safety and property
- engaged in banned sales and marketing activity, including doorknocking and telemarketing
- promised a consumer a product that was not supplied.
The enforceable undertaking requires Ecovantage to rectify all non-compliant installations at its own cost. Ecovantage must also maintain records and report to the commission on the progress with rectification works.
The commission started an investigation after receiving industry intelligence and is closely monitoring Ecovantage’s rectification works. The investigation into Ecovantage and the contracted installer’s conduct remains open and the commission will consider additional enforcement action.
The Building and Plumbing Commission is investigating the conduct of the plumbing practitioners associated with the heat pump installations.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
“This conduct is a serious breach of VEU program rules that has had a real impact on consumers, including possible health and safety risks. We accepted this undertaking to ensure impacted consumers are provided with products that are installed correctly and as promised.”
“This is a timely reminder to businesses that the community, and even employees within businesses, often act as eyes and ears for regulators. So, if you’re thinking of breaking the rules, don’t assume you won’t be dobbed in.”
“Ecovantage is required to rectify the installations at its own cost, which will likely significantly surpass any profit from the installations. If accredited businesses don’t have safeguards in place to ensure their contractors act with integrity, it’s their reputation and profits at stake.”
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