Two Victorian energy companies have been subjected to severe regulatory sanctions after engaging in systematic fraud within a government energy efficiency program. The Essential Services Commission has imposed penalties exceeding $4.2 million following investigations that revealed widespread misconduct including document falsification, staged photographic evidence, and prohibited sales practices.
Energy Efficient Upgrades (formerly operating as Shantey) has faced the most stringent penalties, with its accreditation within the Victorian Energy Upgrades (VEU) program permanently revoked. The company received a five-year ban from reapplying to the scheme after investigators discovered it had submitted fabricated project information and violated multiple consumer protection protocols. The commission documented instances where the company transported water heater units to properties that never had existing heaters, staged installation photos, and employed banned direct marketing approaches including doorknocking and telemarketing.
Additionally, the company circumvented program requirements by failing to obtain mandatory consumer co-payments, with evidence showing cash payments were made to customers to cover or refund these amounts. As a result, 2,586 certificates issued to Energy Efficient Upgrades have been invalidated, representing approximately $200,000 in value.
Ecosaver Australia faced comparable enforcement action, with the commission refusing registration of 48,550 certificates worth approximately $4 million. The company was found to have submitted falsified photographic evidence, claimed non-compliant upgrades, and similarly engaged in prohibited sales tactics.
Both companies had promoted their participation in the VEU program on their websites, positioning themselves as legitimate providers of energy-efficient solutions for households and businesses seeking to reduce energy consumption and costs.
The regulatory decisions were upheld on March 26, 2026, following review proceedings. Commission chairman Gerard Brody emphasized that these actions demonstrate the commission’s commitment to eliminating “unacceptable behaviour” within the VEU program. “Accredited businesses must ensure people doing work on their behalf follow the rules. If they don’t, it’s their reputation and profits at stake,” Mr. Brody stated, adding that robust compliance enforcement ensures a level playing field for ethical businesses and maintains consumer confidence in the program.
The VEU program remains operational, continuing to support Victorian households and businesses in reducing energy costs through legitimate efficiency upgrades including water heaters and lighting systems. Accredited businesses generate revenue through the creation and sale of energy efficiency certificates within the established regulatory framework.