Review of compliance and protections under the Victorian Energy Upgrades program - Public forum 9 November
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Review of compliance and protections under the
Victorian Energy Upgrades program
Public forum
9 November
2021
OFFICIAL-Sensitive
Today’s forum
Agenda
1. Why are we reviewing compliance and protections?
2. Code of Conduct
3. Compliance, protections and privacy reforms
4. Non-regulatory measures
5. Questions, discussion and next steps
How to ask a question in Slido
• Go to: https://app.sli.do/
• Use code VEU2021
• Ask questions and upvote questions you’d like answered
For questions after today
Email energy.upgrades@delwp.vic.gov.au
2
OFFICIAL
How to engage in this consultation
Consultation opened 28 October 2021
Submissions close:
• 18 November 2021 for Code of Conduct paper
• 25 November 2021 for Compliance, Protections and
Privacy paper
Email your submission/s to:
energy.upgrades@delwp.vic.gov.au
Note policy may change following stakeholder feedback
3
OFFICIAL
1. Why are we reviewing compliance and
protections?
OFFICIAL
What are we thinking of changing (and when)?
Victorian Energy Efficiency Target Act 2007 (VEET Act)
(any changes made in mid-2022)
Project Based Activities
VEET Regulations 2018
(PBA) Regulations 2017
Proposed Code of
Conduct
VEU Specifications PBA Specifications
(via change to Regulations
in early 2022)
Guidelines and non-regulatory measures
(ongoing improvements from 2022)
5
OFFICIAL
Consumer trust and business confidence is critical
• Increase in
complaints
• Vulnerable
consumers
particularly at
risk
• Consumers’
expectations are
changing
6
OFFICIAL
Conduct by VEU participants covered by several laws
VEU framework
• Victorian Energy Efficiency Target Act 2007 (VEET Act)
• Associated regulations and guidelines
Other Victorian laws
• Australian Consumer Law and Fair Trading Act 2012
(Vic)
• Privacy and Data Protection Act 2014 (Vic)
Commonwealth laws
• Competition and Consumer Act 2010 (Cth)
• Spam Act 2003 (Cth)
• Privacy Act 1988 (Cth)
7
OFFICIAL
To resolve a dispute, a consumer might need to speak to
The accredited provider, lead generator, installer, and/or
government bodies below:
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OFFICIAL
It is timely to review protections
Increased program
ambition
• Higher targets
• New / revised activities
• Reaching more consumers
• More complex business
models
Compliance framework
not reviewed since 2009
9
OFFICIAL
Questions?
Please go to
Slido.com
and use code
#VEU2021
10
OFFICIAL2. A Code of Conduct for the Victorian
Energy Upgrades program
OFFICIALVEU Code of Conduct
How would it work?
• Mandatory minimum consumer protection standards for
all APs (and through them, their associates) as a
condition of certificate creation
• Requirements consistent with existing obligations
• May apply regardless of works / certificates created
• APs work with consumers and inform ESC of breaches
• ESC could apply existing penalties under the VEET Act
Your feedback sought on
• Most important issues to address via short-term action,
such as a VEU Code
• Benefits and costs to consumers and industry
12
OFFICIALWhat’s in the proposed Code?
Area Proposed requirements
Marketing • No misleading / false information
• No high-pressure sales tactics or unwanted engagement
• Engage adults of sound mind who understand the language
spoken
Information • How the program operates
provided to • Their product, contract and certificates arising
consumers • Consumer rights and complaints processes
Installation • Demonstrated consent by adults of sound mind
& upgrade • Any tenants informed
service • Works accord with manufacturer instructions & warranty
requirements
After sales • Immediately inform customer of, and remedy, faults and issues
services & • Establish/use own dispute resolution processes
complaints • Refer unresolved disputes to ESC or other relevant body
Your feedback sought on
• Which breaches should involve suspension of accreditation, conditions on
accreditation or invalidation of certificates?
13
OFFICIALImplementing the Code
When would it be implemented?
• Code to apply from early 2022
• If needed, short transitionary period for some
requirements
• Annual industry training on the Code
Your feedback sought on
• Any issues with:
• ensuring third parties comply
• determining / proving consumer consent
• improving dispute resolution processes
• training and educating employees / subcontractors
• implementing the Code given public health
restrictions and economic recovery?
14
OFFICIALQuestions?
Please go to
Slido.com
and use code
#VEU2021
15
OFFICIAL3. Compliance, protections and privacy
reforms
OFFICIALAccreditation
Issues
• ESC can’t deny unsuitable or incompetent applicants
• No requirements to maintain accreditation
• Hard to suspend or revoke accreditation
• Hard to dismiss inactive APs
Your feedback sought on
• Minimum accreditation requirements and a ‘fit and
proper person test’ for new and existing APs
• Requirements to maintain accreditation annually
• Expand ESC powers to deny, dismiss and revoke
accreditations
17
OFFICIALThird parties
Issues
• Third parties are unregulated but
critically involved
• Increasing complaints about lead
generators
• Keep APs legally responsible for
certificate creation, but also be
able to penalise third parties who
mislead APs
Your feedback sought on
• Voluntary registration for third parties, including training
• Template contracts between APs and third parties to ensure standard
terms and conditions
• New penalties for third parties who provide misleading information to
APs
18
OFFICIALConsumer protections
Issues
• Inappropriate and misleading marketing
• Insufficient information for consumers
• Installation and post-installation issues
• e.g. products that are unsafe or not fit-for-purpose
• Complicated and difficult for consumers to resolve
disputes
Your feedback sought on
• Standardised / template contracts between consumers and APs
• Written statement at completion of activity
• Requiring APs/installers to join independent dispute resolution
service (and have their own internal dispute policy and process)
• Specific measures for vulnerable consumers (discussed later)
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OFFICIALPrivacy and data
Issues
• Smart, data rich
technologies create new
risks for consumers
• Access to program data
could improve the program
Source: https://www.pexels.com/
Your feedback sought on
• Introducing privacy obligations on scheme participants
• Allowing greater data sharing where scheme objectives
met (subject to strict controls)
• Referring privacy complaints to privacy commissioners
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OFFICIALInspections, audits and assurance
Issues
• Industry perception of
low risk of being
detected for non-
compliance
• Good behaviour not
rewarded
Your feedback sought on
• Publishing a list of APs with good compliance
• Supporting improved auditing practices
• Utilising independent audits by APs
• Random onsite inspections
• Using a broader range of assurance tools
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OFFICIALEnforcement and appeals
Issues
• Non-compliance often goes unpunished
• Limited options and flexibility to enforce compliance
• Penalties can be too strong for breach (e.g. prosecute criminal
offences and payments in court)
• Some ESC decisions are not subject to review
Your feedback sought on
• Allowing ESC to choose from broader range of
enforcement tools
• e.g. issue infringement notices, late payment penalty, setting
conditions and ‘naming & shaming’
• Allowing ESC decisions to be reviewed or appealed
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OFFICIALQuestions?
Please go to
Slido.com
and use code
#VEU2021
23
OFFICIAL4. Non-regulatory measures
OFFICIALConsumer information and education
Issues
• Consumers unaware of
their rights and complaint
processes
• Vulnerable consumers at
greater risk from, and may
need additional support to
access benefits of,
program
Your feedback sought on
• Improving consumer communications and education
• Specific ways to support vulnerable consumers
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OFFICIALIndustry training and support
Issues
• Lack of periodic training for industry
• Not enough updated information
Your feedback sought on
• Annual industry training in Code
• Increasing industry education and
training
• e.g. develop guidelines and training
on accreditation, remedial action and
accredited auditors
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OFFICIAL5. Next steps
OFFICIALAsk / upvote questions now in Slido
Step 1:
Visit the website
app.sli.do on mobile or
desktop
Step 2:
Enter code #VEU2021
Step 3:
Type in questions, and
upvote questions you’d
like to be answered
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OFFICIALKey steps
When Step
October - • Public consultation
November
Late 2021 / • Response to consultation regarding
early 2022 Code of Conduct
Early 2022 • Establish Code of Conduct
Over 2022 • Implementation support
• Further reforms
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OFFICIALFinal reminders
Submissions to energy.upgrades@delwp.vic.gov.au by:
• 18 November 2021 for Code of Conduct paper
• 25 November 2021 for Compliance, Protections and
Privacy paper
Any questions after today
Email energy.upgrades@delwp.vic.gov.au
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