Victoria energy upgrade scheme faces fraud and AI misuse

The Victorian Energy Upgrades (VEU) program is facing significant integrity issues due to widespread misconduct and fraudulent claims. Investigations reveal that rogue operators are using AI-generated images to provide fake photographic evidence of installations, such as air conditioners and heat pumps, to claim green certificates under the $572 million taxpayer-funded scheme.

Over the past two years, nearly 20 businesses have been suspended or cancelled from the program. Some companies have entered liquidation following regulatory penalties, leaving consumers with millions of dollars in lost deposits and voided warranties on appliances like hot water systems and air conditioners.

In one notable instance, an employee at a sustainability firm is allegedly being pursued for transferring $5.9 million worth of carbon credits to a personal business. The Essential Services Commission, which oversees the VEU, has identified the rise of doctored images as a growing challenge to the program's oversight.