VEU Audits

The Victorian Energy Efficiency Target Act 2007 (VEET Act) requires the following audits to ensure that those operating under the Victorian Energy Upgrades (VEU) program are complying with program requirements: 

• Compliance and assurance audits: accredited persons are required to undergo an independent assurance audit at least once every two years. They may also be subject to compliance audits in certain circumstances.
• Annual energy acquisition statement audits: energy retailers (relevant entities) are required to have their annual acquisition statements audited prior to submission to the commission.

Assurance audits for accredited persons – new requirement from 1 July 2024

Under changes to the VEET Act, accredited persons in the Victorian Energy Upgrades program are now required to undergo an independent assurance audit at least once every two years. Assurance audits ensure accredited persons comply with regulatory standards and strengthen the program's delivery of cost-saving outcomes to Victorian consumers.

Key information about assurance audits

• The commission will, at least every 12 months, review and update the assurance audit schedule.
• Accredited persons are required to use an auditor approved by the commission to conduct assurance audits in the 'List of independent auditors - compliance and assurance audits' on our approved assurance auditor list on this page and cover the costs associated with the audit, including auditor fees.
• The audit scope seeks to balance the need for a representative activity sample size, with the cost and time impost on the accredited person. 

Please note: Auditors on the independent auditor list have the relevant skills, competencies and qualifications, and have undertaken training or have sufficient knowledge or experience program to conduct these audits. However, the commission cannot guarantee the quality of their services. 

Accredited persons should make their own assessment of an auditor’s suitability to conduct the relevant audit and report any concerns about the quality of services provided by auditors on the list to us at veuaudits@esc.vic.gov.au. The commission will maintain the list of independent auditors and may remove an auditor if they no longer satisfy requirements.

Current assurance audit schedule, scope and requirements

The current 'Assurance audit schedule' on this page covers from July 2024 to July 2026 and outlines the month when accredited persons can expect a notice requiring them to undertake an assurance audit. 

As this is the first time assurance audits will be conducted, we will contact accredited persons included in the first, and then subsequent waves, of audits with more details of what to expect. The notice of assurance audit will specify the timeframe in which the assurance audit report must be provided to the commission.  For the initial assurance audits, this will generally be approximately 3 months from the date of the notice of assurance audit. 

The updated Victorian Energy Efficiency Target Guidelines (version 11) and frequently asked questions on this page provide more information about assurance audits, scope, requirements and expectations.

Compliance audits for accredited persons

Where the commission suspects non-compliance with the VEET Act or regulations made under this Act, accredited persons may be required to conduct a compliance audit. 

Compliance audits can be undertaken by the commission or the commission may require the accredited person to appoint an auditor to undertake such an audit. Accredited persons must select an auditor that is approved by the commission to conduct compliance audits in the ‘List of independent auditors – compliance and assurance audits’ on this page.

Annual energy acquisition statement audits for energy retailers

Energy retailers with scheme acquisitions (relevant entities) are required to have their annual acquisition statements audited prior to submission to the commission. 

'Scheme acquisition' is defined in the VEET Act as the purchase for on-sale to prescribed customers in Victoria of electricity and/or gas from AEMO and/or gas from a producer, storage provider or interconnected pipeline operator. 

Annual energy acquisitions statements must be audited in accordance with the Victorian Energy Efficiency Target Guidelines and lodged with us annually by 30 April each year. The commission can grant an extension to this date under section 33 of the VEET Act. 

Relevant entities must select an auditor that is approved by the commission to conduct annual energy acquisition statement audits in the ‘Approved auditor list – annual energy acquisition statement audits’ on this page.