Victorian Energy Upgrades (VEU) program Strategic Review Consultation Paper

AGL welcomes the Strategic Review of the VEU as an opportunity to better align the program’s design, activities, and administration with the evolving needs of the market and consumers as Victoria’s energy system continues to transition and decarbonise. With the program extended until 2045, this review is crucial to ensuring the VEU effectively supports households and businesses in reducing energy use and accelerating electrification.

As a first priority, our submission emphasises the need to rapidly increase VEEC creation and supply to lower certificate prices, improve market liquidity, and ensure a more stable, transparent market. We also advocate for expanding the VEU’s objectives beyond its current focus on GHG reduction and recommend aligning with NSW’s energy savings metric, as used in the Energy Savings Scheme (ESS). Finally, we note it is essential that incentives for gas-to-electric appliance replacements remain in place, even where such upgrades become mandatory under regulation, to ensure continued support for electrification.

Read the full submission