Business bombarded with fridges in bizarre net zero scheme bungle

The government has been sent scrambling to adjust its net zero scheme after discovering a major error that has allowed some installers to scam the system.

Businesses are being bombarded with free fridges in a bizarre bungle that has allowed some installers to scam the government’s net zero strategy.

Businesses are being bombarded with free fridges in a bizarre bungle that has allowed some installers to scam the government’s net zero strategy.

But the industry is urging the state not to punish installers who have done the right thing with measures that could send legitimate companies bankrupt.

Under the Andrews Governments energy upgrades program, approved installers can receive a carbon credit for setting up new energy efficient appliances in homes and businesses. 

Their value is meant to be based on the carbon they prevent from being released into the atmosphere and they can then be sold on to electricity retailers who face massive fines if they don’t purchase enough to drive down emissions.

But the government has been sent scrambling to adjust the scheme after discovering a major error in the way it awarded credits for the set up of new display fridges for stores.

The value of the credits was so high that some companies decided they could afford to buy fridges in bulk, give them away for free and make a profit.

A group of installers began hounding down small businesses to sign up and Victorians were harassed for weeks with hundreds of phone calls urging them to sign up for more. 

The loophole was exploited so heavily the government discovered some businesses were being given free fridges despite having no food or drink on premises.

Others received fridges that were not fit for purpose or stockpiled the appliances above what they needed.

This meant the taxpayer funded energy scheme was awarding lucrative carbon credits for upgrades that were not reducing emissions, with some installers turning the system into a giveaway program.

At one point this year, it was estimated about half of the state’s renewable energy certificates related to fridges.

No other appliances covered by the Victorian Energy Upgrade program are believed to be affected by the issue.

The government is now looking to fix this problem by halving the amount of credits available.

But one industry source, who asked to remain anonymous, urged the government to reconsider because it would also hurt installers who were not involved.

“Why should people be punished because they wrote the rules incorrectly at the start?” he said.

“There are plenty of small companies who have been playing by the rules and upgrading from old energy-draining appliances. 

“Now, because of supply delays, there are fridges already purchased that won’t be off the boat until July when the rules may have already been altered.

“For some, that’s $100,000 they will have spent which they will now lose money on and which will put them under severe financial stress.

“A much better option would be to look at stronger compliance to take on the installers who did the wrong thing and rein them in.”

Some of the companies involved in the free fridge rort have started frantically contacting small businesses and urging them to sign up for more before the end of the month.

“The Victorian Energy Upgrades program has helped two million Victorian households cut their energy bills and created local jobs while we aim to halve emissions by 2030,” a state government spokeswoman said.

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

In 2020-21, more than 284,000 households and 14,900 businesses received upgrades through the program. T

he Essential Services Commission has also written a “code of conduct” for those involved in the program that will begin from July 1.

The guidelines look to limit the use of predatory tactics and harassment of Victorians through phone calls and telemarketing.