Andrews government drops bungled net zero scheme

Labor’s free fridges scheme has been suspended after it was revealed the system was being rorted and appliances were being dumped outside Melbourne businesses.

Energy Minister Lily D’Ambrosio has suspended a bungled scheme that awarded carbon credits for installing free fridges after revelations the system was being rorted.

The Andrews Government has removed fridges from its Victorian Energy Upgrades (VEU) program until it launches a full review of how the scheme was being manipulated.

The Herald Sun first revealed that businesses were being harassed and dumped with appliances under a bizarre loophole with the program.

The VEU awards carbon credits, also known as certificates, to installers who set up energy-efficient appliances in homes and businesses.

These credits are then sold to electricity retailers who are required by law to show they are working to reduce emissions.

A group of installers began to realise the carbon credits awarded for fridges were so lucrative that could make millions of dollars by giving the appliances away for free.

Businesses are being bombarded with free fridges in a bizarre bungle. Picture: Jacqui Felgate

Installers could walk away with as much as $3000 worth of certificates compared to the much lower cost of buying and importing fridges from overseas.

But this led to a bizarre situation where businesses began receiving products they did not ask for, while others received dozens of fridges despite only ordering one.

A report by the Department of Environment, Land, Water and Planning found a massive increase in the number fridge installations happening across Australia that may not have been providing reduced levels of greenhouse gases.

In some weeks, fridge installations made up half of all credits claims but the department found cases where fridges were provided to businesses with no food or drinks.

In a bid to clean up the program, Ms D’Ambrosio has removed carbon credits for “plug-in” fridges and a full review will begin.

Energy Minister Lily D'Ambrosio confirmed the fridges have been removed from its Victorian Energy Upgrades scheme.

It will examine how best to strengthen laws requiring new appliances only be installed to replace ageing equipment and imposing a limit on fridges per business.

“The Victorian Energy Upgrades program has helped more than two million Victorian households and businesses cut their energy bills and created local jobs while we aim to halve emissions by 2030,” Ms D’Ambrosio said.

“We’re constantly reviewing the VEU program to ensure that it’s delivering good value for Victorians and delivering the intended emission reductions.”

From July 1, a new code of conduct will apply to installers working under the VEU.

Opposition climate change spokesman James Newbury said the scheme should be environmentally and economically responsible.

“Only a Labor Government could increase emissions, in the name of reducing them.”

“And evidence shows that there isn’t only an environmental cost, but taxpayers are footing this enormous cost too.”

On Friday, images appeared online of at least a dozen fridges being dumped outside a business that did not order them.

Installers were reported to be driving door to door handing out bar fridges across Healesville and Coldstream.