“Serious breach of rules:” Regulator cracks down on non-compliant water heater installs

Victorian environmental services provider Ecovantage will be required to rectify non-compliant water heater installations at its own cost under a court-enforceable undertaking accepted by the state’s Essential Services Commission.

The Essential Services Commission, Victoria’s independent regulator of essential services, announced late last week that it had accepted a court-enforceable undertaking requiring Ecovantage to rectify non-compliant water heater installations completed under the Victorian Energy Upgrades (VEU) program.

This is the first VEU related enforceable undertaking the commission has accepted – an administrative alternative to court action – and follows an investigation into Ecovantage following industry intelligence.

According to the commission, Ecovantage has acknowledged that it claimed up to 31,666 Victorian energy efficiency certificates for non-compliant heat pump water heater installations across 82 sites, located primarily in the Barwon South West and Loddon Mallee regions of western Victoria.

A contractor working on Ecovantage’s behalf reportedly filed multiple false claims regarding upgrades in an effort to claim more certificates – including failing to decommission water heaters and boilers being upgraded – completed upgrades that did not comply with VEU and industry rules, engaged in banned sales and marketing activity, and promised a consumer a product that was not supplied.

“This conduct is a serious breach of VEU program rules that has had a real impact on consumers, including possible health and safety risks,” said Gerard Brody, chairperson and commissioner of the Essential Services Commission.

“We accepted this undertaking to ensure impacted consumers are provided with products that are installed correctly and as promised.”

In addition to rectifying all non-compliant installations at its own cost, Ecovantage must also maintain records and report to the commission on the progress of its rectification works. The commission’s investigation into Ecovantage and the contracted installer’s conduct remains open, and the commission is considering additional enforcement action.

The Building and Plumbing Commission is also apparently investigating the conduct of the plumbing practitioners associated with the heat pump installations.

“This is a timely reminder to businesses that the community, and even employees within businesses, often act as eyes and ears for regulators,” said Brody.

“So, if you’re thinking of breaking the rules, don’t assume you won’t be dobbed in.”

“Ecovantage is required to rectify the installations at its own cost, which will likely significantly surpass any profit from the installations. If accredited businesses don’t have safeguards in place to ensure their contractors act with integrity, it’s their reputation and profits at stake.”

This is not the first time Ecovantage has run afoul of the Essential Services Commission. In 2023, Ecovantage was one of nine “accredited persons” the commission took action against for undertaking non-compliant refrigerated cabinet activity under the VEU program.

Similarly, in 2024, Ecovantage “allegedly” breached the VEU program by creating 1,289 energy efficiency certificates for building lighting upgrades based on inaccurate claims about baseline lighting and upgrades installed as well as for failing to hold valid rights to create certificates from consumers.