BUSINESS PLAN

Transcription

1 BUSINESS PLAN Electrical Safety Authority BUSINESS PLAN

2 ABOUT ESA Vision: An Ontario free of electrical fatalities and serious damage, injury, or loss. Mission: To improve electrical safety for the well-being of the people of Ontario. THE ELECTRICAL SAFETY AUTHORITY The role of the Electrical Safety Authority (ESA) is to enhance public electrical safety in Ontario. Established in 1999 as a self-sustaining, notfor-profit corporation, ESA operates as a delegated administrative authority on behalf of the government of Ontario in accordance with Part VIII, section 113 of the Electricity Act, 1998 S.O. 1998, c. 15, Sched. A (the Act ) and the Safety and Consumer Statutes Administration Act, 1996, S.O. 1996, c. 19. ESA operates under the direction and control of a Board of Directors and is accountable to the Ministry of Consumer Services in accordance with an administrative agreement. As part of our mandate, we are responsible for administering the Act and corresponding Regulations: Electrical Safety Code (Regulation 164/99); Licensing of Electrical Contractors and Master Electricians (Regulation 570/05); Electricity Distribution Safety (Regulation 22/04); and Product Safety (Regulation 438/07). To meet this mandate ESA: increases public awareness of and enforces the Act and associated Regulations; conducts inspections of electrical installations to ensure compliance with the requirements of the Ontario Electrical Safety Code; investigates fatalities, injuries, and fire losses associated with electricity; and educates on the safe use of electricity and the dangers of unsafe electrical products and installations. ESA evolved from Ontario Hydro s Electrical Inspection Division and, while maintaining the importance of electrical inspections, responds to emerging safety concerns associated with the changing electricity environment. Our work is driven by a five-year strategy that establishes our priorities and defines how we will ensure the organization will most effectively achieve our mandate. 2 Electrical Safety Authority BUSINESS PLAN

3 STRATEGIC PRIORITIES ESA s business plan focuses on identifying and responding to priority areas where we can have the most impact on electrical safety. When ESA established our Harm Reduction Strategy we set an overall five-year goal: to reduce rates of electrical deaths by 30 per cent. To achieve that goal, we identified five areas of priority for harm reduction and established detailed, multi-year plans to improve safety in those areas. We also identified four areas of ESA capability that would require development and we have planned strategies to address them. Each year, we establish specific annual commitments in the nine areas. Those commitments serve our plans and advance us towards our ultimate goal. HARM REDUCTION POWERLINE SAFETY GOAL: Reduce powerline contacts among non-utility workers and the public. Powerline electrocutions, which occur most frequently in public places and residential areas, accounted for 49 per cent of all electrocutions in the past decade. These incidents typically involve non-utility workers or the public. HIGH-RISK WORKER SAFETY GOAL: Reduce injuries and incidents related to unsafe electrical work practices. Two thirds of all electrocutions occur in the workplace during electrical repair and maintenance, with 20 per cent of incidents involving electricians. Injuries and incidents primarily occur as a result of unsafe electrical practices and can be avoided. ELECTRICAL PRODUCT SAFETY GOAL: Reduce fires and safety incidents related to electrical products. In FY2011 ESA received 921 reports of product safety issues. Product misuse was the primary cause of reported fires associated with electrical products. AGING INFRASTRUCTURE GOAL: Reduce electrical contact and fire incidents related to street lighting and existing residential building installations. According to most recent data fires associated with electrical systems in older residential buildings (wiring, extension and appliance cords, terminations and panels) account for approximately 1,000 fires and five fatalities annually. NEW WIRING GOAL: Align more ESA resources to the highest priority harm reduction initiatives. ESA will continue to manage risk in the installation of new electrical wiring. At the same time we will align more inspection and non-inspection resources to the highest priority harm reduction initiatives to enhance the safety of electrical installations. Electrical Safety Authority BUSINESS PLAN

4 CORPORATE ALIGNMENT AND ORGANIZATIONAL CAPABILITIES ESA will support our Harm Reduction Strategy by enhancing four critical areas of organizational capability: People and Growth: ESA will continue to ensure employees are engaged in and aligned with our mission, vision and strategy and that we foster the next generation of leaders; Operations and Business Processes: We will increase the flexibility and sustainability of our safety resource framework by extending prevention activities, managing inspector workloads, and reducing administrative burdens; Effective Stakeholder Engagement, Communications, and Leverage of Partnerships: Stakeholder engagement and effective communications will allow ESA to increase the impact of safety initiatives; and Sustainable Resource Framework: A flexible and sustainable financial and resource framework will support the safety system. PLANNING ASSUMPTIONS ESA s goals and objectives were developed according to the following basic business assumptions. We must continue to: fulfill our regulatory obligations related to the administration and enforcement of the Ontario Electrical Safety Code, Licensing of Electrical Contractors and Master Electricians, Electrical Distribution Safety, and Electrical Product Safety; ensure disputes are resolved with due process in compliance with the Appeals Regulation (O.Reg 187/09); receive stakeholder support for pursuing innovative approaches to influencing public electrical safety; leverage stakeholder relationships to support collaborative approaches to advancing safety goals and objectives; be responsive to new safety challenges associated with delivering safety services and information to the broader Ontario public; and consider good governance, transparency, organizational effectiveness efficiency as priorities. 2 Electrical Safety Authority BUSINESS PLAN

5 FY2012 FY2015 BUSINESS PLAN The following are our commitments and the measures we will use to assess progress. HARM REDUCTION GOALS POWERLINE SAFETY Reduce powerline contacts among non-utility workers and the public. Engage Local Distribution Companies (LDCs) to support the reduction of incidents. Address emerging issues of aging electrical distribution infrastructure. GOAL: Decrease the number of worker and non-worker powerline related contact incidents from 160 to 113 (based on five-year rolling average). HIGH-RISK WORKER SAFETY Reduce injuries and incidents associated with unsafe work practices around electrical equipment through collaboration with contractors, industry, safe work associations, trainers and other safety regulators and organizations. GOAL: Decrease the number of worker related electrical fatalities and critical injuries from 25 to 18 (based on five-year rolling average). STRATEGIES Advance safety practices of Local Distribution Companies. Reduce incidents involving high risk third parties. Influence and support collaborative approaches. Encourage safe work practices and behaviour. FY2012 COMMITMENTS Expand Community Powerline Safety Alliance and share best practices. Establish asset management guidelines and best practices for existing at-risk installations. Sustain targeted communication with at-risk businesses. Develop a best practice guideline for boom trucks. Engage municipalities to address at-risk activities. Conduct high-impact prevention blitzes targeting users with unsafe work practices. Develop terms of reference to support the launch of a Worker Safety Taskforce. Increase safety footprint with facilities with unsafe work practices. Market the Electrical Safety Plan to target specific at-risk sectors. Electrical Safety Authority BUSINESS PLAN

6 ELECTRICAL PRODUCT SAFETY Reduce fires and safety incidents related to electrical products. GOAL: Decrease the number of electrical related product fires from 1,952 to 1,367 (based on five-year rolling average). AGING INFRASTRUCTURE Reduce electrical contact and fire incidents related to street lighting and existing residential building installations. GOAL: Decrease the number of electrical fires with distribution equipment as an ignition source in homes built prior to 1975 from 788 to 552 (based on five-year rolling average). NEW WIRING Align more inspection and non-inspection resources to the highest priority harm reduction initiatives that enhance the safety of electrical installations. GOAL: Increase the electrical safety impact for wiring notifications by 30 per cent. STRATEGIES Influence and support collaborative approaches. Influence national and international product safety standards and processes. Assess, respond to, and monitor incidents. Influence and support collaborative approaches. Advance national standards and safety practices. Enhance understanding of residential wiring fires. Advance safety management framework. Benchmark using the Electrical Safety Impact Measures. FY2012 COMMITMENTS In partnership with the Office of the Fire Marshal, implement recommendations from the Stove Top Fire Report. Complete final draft of the International Organization for Standardization (ISO) PC240 Product Recall Standard. Partner with the British Columbia Safety Authority to explore the development of a national product safety tracking and response system. Investigate and resolve electrical product safety-related incident reports. Promote guidelines for the design, installation, construction and maintenance of street lighting systems with stakeholders. Support launch of first Electrical Safety Foundation International (ESFI) Canada public awareness campaign. Assess Canadian Standards Association (CSA) Standard for Inspection of Existing Dwellings, and develop an approach to ensure alignment. Conduct root cause investigations of residential wiring fires to gather additional information and insights. Consult on the risk-based inspection model and develop implementation plan. Consult, revise, and launch the 2012 Ontario Electrical Safety Code, including an expanded basic exemption. Increase time spent conducting high impact safety activities. Increase inspection process efficiency. 4 Electrical Safety Authority BUSINESS PLAN

7 CORPORATE ALIGNMENT GOALS PEOPLE AND GROWTH GOAL: Ensure organizational alignment to the mission, vision, and Harm Reduction Strategy. Establish clear succession plans for 100 per cent of critical roles and 75 per cent of leadership roles. OPERATIONS AND BUSINESS PROCESSES GOAL: Ensure resources and processes are focused on harm reduction strategies and the integrated safety management framework. Increase the ratio of prevention activities by 20 per cent. Fully implement and integrate a safety management framework. EFFECTIVE STAKEHOLDER ENGAGEMENT, COMMUNICATIONS, AND LEVERAGE OF PARTNERSHIPS GOAL: Ensure ESA is a trusted source for electrical safety information and advice. Engage stakeholders to mobilize action related to the key safety harms. SUSTAINABLE RESOURCE AND FINANCIAL FRAMEWORK MODEL GOAL: Establish robust and flexible financial framework to support the Harm Reduction Strategy. Ensure Enterprise Risk Management (ERM) is wellintegrated into the fabric of ESA operations. STRATEGIES Align people and processes to support the Harm Reduction Strategy. Renew and articulate corporate values that better align with today s ESA. Begin implementation of new risk based inspection delivery model. Develop Corporate Social Responsibility (CSR) strategy. Enhance understanding of ESA as an electrical safety authority. Develop key stakeholder support of the risk-based inspection model. Develop stakeholder engagement to support implementation of harm reduction approaches. Understand outcomes from 2011 resource model review. Implement priority items identified in the ERM review. Ensure sustainable financial performance by implementing three-year financial response plan. FY2012 COMMITMENTS Ensure at least 10 per cent of ESA employees are directly engaged in the development and assessment of the risk informed inspection priority model. Research employee understanding and support for ESA s Harm Reduction Strategy and establish benchmarks and targets for improvement by second quarter FY2012. Revise and renew ESA s corporate values. Engage employees in new values. Consult on the risk-based inspection and complete the model. Develop an implementation plan and initiate implementation steps by January Develop CSR strategy and plan. Successfully implement first year of three-year communications strategy including: manage ESA s corporate profile and reputation; advocate for electrical safety issues; support marketing strategies to advance business units and programs; and support internal alignment. Establish consumer, contractor, and LDC stakeholder perception benchmarks related to the understanding of ESA, and electrical safety priorities; and establish strategic plans and measures for improvement. Achieve broad reach to consumers across province with electrical safety messages. Ensure ESA s risk-based inspection model reflects feedback from stakeholder consultations, and peer and academic reviews. Expand Electrical Safety Foundation International (ESFI) Canada membership and launch first information/public awareness campaign. Develop an implementation strategy by December 31, 2011 for roll-out in FY2012. Complete ERM review recommendations including: linking ERM to strategic and annual plans; establish corporate ERM vision and appetite statements; improve reporting; enhance risk identification processes; and propagate ERM throughout ESA. Improve ESA s ERM capabilities and organizational readiness. Achieve bottom line financial targets and regular report tracking in line with FY2012 budget parameters. Electrical Safety Authority BUSINESS PLAN

8 MANAGING COMPLIANCE ESA has established programs, processes and procedures to ensure the efficient administration of our regulatory responsibilities defined by Part VIII of the Electricity Act and associated Regulations. In addition, ESA has developed guidelines, policies and procedures to meet our obligation to provide a structure for appeals as required by the Safety and Consumer Statutes Administration Act Ontario Regulation 187/09. ESA delivers programs and services that ensure oversight, monitoring, and harm reduction activities to meet our corporate obligations and our public electrical safety mandate. This includes administering and maintaining the following electrical safety codes and regulations for Ontario: Electrical Safety Code, O.Reg. 164/99 establishes requirements and standards for electrical wiring installations; Licensing of Electrical Contractors and Master Electricians, O.Reg. 570/05 defines provincial licensing and administration requirements to protect the public from unqualified contractors offering electrical services; Electricity Distribution Safety, O.Reg. 22/04 requires objective based electrical safety requirements for the design, construction and maintenance of electrical distribution systems owned by licensed distributors; and Product Safety, O.Reg. 438/07 authorizes ESA to protect the public from unsafe electrical products by requiring incident reporting, and administering guidelines that ensure public notification and corrective action. To meet our oversight obligations, ESA: conducts electrical and due diligence inspections; responds to incidents with investigations and root cause analysis; provides electrical safety information and education, licenses electrical contractors; coordinates appeals; and manages resources and activities in response to our Harm Reduction Strategy to prevent electrical injuries, fires and fatalities in Ontario. 6 Electrical Safety Authority BUSINESS PLAN

9 ORGANIZATION STRUCTURE Board of Directors Board Committees President & Chief Executive Officer Electrical Contractor Registration Agency Advisory Council * Advisory Councils Legal Counsel & Corporate Secretary Communications & Stakeholder Engagement Human Resources Operations Finance & Corporate Services Regulatory Affairs Communications Human Resources Harm Mitigation Finance Codes & Standards Stakeholder Relations Payroll Health & Safety Training Harm Prevention Harm Reduction Services Harm Suppression Information Technology Legislative Policy & Government Affairs Public Policy & Program Evaluation Business Planning & Improvement Safety & Business Strategy *Advisory Councils Consumer Advisory Council Contractor Advisory Council Industry Advisory Council Ontario Provincial Code Committee Utility Advisory Council Electrical Safety Authority BUSINESS PLAN

10 REVENUES AND EXPENSES (THREE-YEAR PROJECTION) ($ millions) REVENUES (actual) (budget) (% change) (projection) (% change) (projection) (% change) Total EXPENSES Salaries, Wages and Benefits Operating Expenses (0.2) Amortization Total Excess (deficiency) of revenue over expenses before investment income (1.4) (3.1) (0.8) (0.1) Investment income *Any difference is due to rounding. 0.1 (1.6) Electrical Safety Authority BUSINESS PLAN

11 FINANCIAL PROJECTIONS AND TRENDS In order to achieve its harm reduction goals and fulfill its mission, ESA must have a sustainable financial framework and exercise prudent financial management. ESA s revenues and expenses are both impacted by a variety of economic factors which the organization monitors on an ongoing basis. The following is management s projection of revenues and expenses for the next three years based on currently known assumptions and leading economic forecasts. The revenue projection for fiscal year (FY) 2012 and future years reflects anticipated short term declines in the new housing markets and increasing financial pressures on commercial and industrial sectors which directly impact the demand for ESA services. ESA is projecting revenue to increase by 5.4 per cent in FY2012 (due in part to the introduction of the 2012 Ontario Electrical Safety Code and New Code Training), 2.8 per cent in FY2013 and 3.9 per cent in FY2014 reflecting a gradual stabilizing of the economy. ESA has adopted a strategy to diversify its revenue sources with the goal of reducing its reliance on traditional wiring inspection services. Continuous Safety Services and Field Evaluation Programs are examples of this diversification strategy. ESA FY2012 revenue projections include a rate increase for wiring services beginning in Q3 of FY2012 at an average of 2.65 per cent. The organization continues to strive to increase productivity across all lines of business and the projected expenses reflect those productivity increases. ESA is projecting increasing costs for unsafe product reporting and investigations. This will ensure resources are available for investigation and response including public notification and corrective action. There is no specific revenue source which provides for this activity. ESA continues to seek out stakeholder partnerships and collaborative efforts to increase efficiencies in safety resourcing, including for unsafe products. Total operating expenses are projected to increase by $6.1 million (7.2 per cent) in FY2012, remain constant in FY2013, and increase by $2.8 million (3.0 per cent) in FY2014. The largest single factor in the FY2012 expense increase comes from pension and benefit costs which are projected to rise by $4.6 million to $20.9 million (28.7 per cent). Similar to other organizations with defined benefit retiree plans, ESA has seen pension and retiree benefit expenses rise significantly in recent years as a result of falling long-term bond yields, lower returns from pension fund assets and changing demographics. Long-term bond yields are used by actuaries to set the discount rate, which in turn is used to calculate pension and retiree benefit expenses. The drop in discount rate over the past four years has been a significant contributing cause of ESA s increased benefit costs. Other operating expenses are in line with the expected revenue service increases. As a result, ESA s FY projection shows a modest cumulative excess of revenue over expenses of $0.4 million by the end of FY2014. Capital spending in FY2012 to FY2014 is projected to be comprised of investments in technology and other infrastructure. Risks to this three-year projection relate primarily to the accuracy of economic forecasts of housing and commercial construction starts and the accuracy of actuarial assumptions used to project the cost of employee and retiree benefits. Electrical Safety Authority BUSINESS PLAN

12 The Electrical Safety Authority is a mission driven organization committed to getting to zero electrical accidents, injuries and fatalities across Ontario. In FY2011, ESA continued its evolution with the implementation of our Harm Reduction Strategy. We seek to build strong, collaborative partnerships that will help us succeed in improving electrical safety for the people of Ontario. Customer Service Centre P.O. Box Pinebush Postal Outlet Cambridge, ON N1R 6E6 Head Office 155A Matheson Blvd West, Ste 202 Mississauga, ON L5R 3L5 Regional Offices Central Region Mississauga Continuous Safety Services Region Mississauga Eastern Region Ottawa Metro Region Mississauga Western Region Cambridge Northern Region Sudbury Printed in Canada.