SUBMISSION FOR THE REGULATION OF THE HOUSING CONSTRUCTION SECTOR

Transcription

1 OFFICE OF THE CHIEF ELECTRICAL INSPECTOR Level 3, Building 2, 4 Riverside Quay, Southbank PO Box 262, Collins Street West, Melbourne, Vic, 8007 ABN SUBMISSION FOR THE REGULATION OF THE HOUSING CONSTRUCTION SECTOR EXECUTIVE SUMMARY This submission is provided to explain the role of the Office of the Chief Electrical Inspector (OCEI) and how it relates to the regulation of the housing construction sector. The Office of the Chief Electrical Inspector (OCEI) has the responsibility for administering the Electricity Safety Act which deals with complex and specific electrical safety and specialist technical matters throughout Victoria. The OCEI was set up in accordance with Victorian Government policies developed and refined over many years to ensure that industry specific and independent regulators are in the best position to deal with industry matters using experts in the field. Industry specific regulators also provide independent and specialist expert advice to the Government and the OCEI performs this function for the total electricity industry in Victoria. The OCEI believes it is appropriate for the current regulatory arrangements to continue, particularly in relation to the registration of electrical contractors, licensing of electrical workers, including electricians and the overall auditing regime to achieve maximum safety outcomes. It is important to indicate that, while registered electrical contractors and licensed electricians are involved initially in the construction of housing, they are also heavily involved in the ongoing maintenance, alteration or repairs of the electrical installation in domestic premises over the period for which the premises continues to exist. This ongoing activity aligns with the work of the electricity supply industry and the manufacturing, commercial and industrial sectors, that is, the scope of electrical workers goes well beyond the building industry. In particular, the exchange of information, the cooperation and coordination of audit activities, particularly for construction and building sites, and joint investigation of incidents and accidents is working satisfactorily and is continually reviewed to achieve maximum electrical safety outcomes, which could be enhanced through the development and implementation of a Memorandum of Understanding with the Building Commission. Ken Gardner CHIEF ELECTRICAL INSPECTOR 4 March 2005 K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 1 of 15

2 1. INTRODUCTION 1.1 Establishment The Office of the Chief Electrical Inspector (OCEI) is the independent safety and technical regulator for the total electricity industry in Victoria. The Chief Electrical Inspector was established in the State Electricity Commission of Victoria (SECV) to regulate electrical safety throughout Victoria. With the privatisation of the electricity industry in Victoria, the OCEI was established as an independent regulator, firstly in accordance with the Electricity Industry Act 1993 and more recently in accordance with the Electricity Safety Act Electricity Safety Act 1998 Part 2 of the Act defines the establishment of the OCEI including its objectives and functions Objectives The objectives of the OCEI are as follows: (a) (b) (c) (d) (e) to ensure the electrical safety of electrical generation, transmission and distribution systems, electrical installations and electrical equipment; to control the electrical safety standards of electrical work carried out by electrical workers; to promote awareness of energy efficiency through energy efficiency labelling of electrical equipment and energy efficiency of electrical equipment; to protect underground and underwater structures from corrosion caused by stray electrical currents; and to maintain public and industry awareness of electrical safety requirements Functions The functions of the OCEI are as follows: (a) (b) (c) (d) (e) to determine minimum safety standards for electrical equipment, electrical installations and electrical work; to encourage and monitor the use of electricity safety management schemes; to inspect and test electrical equipment, electrical installations and electrical work for compliance with the specified safety standards; to administer the prescribed minimum standards for energy efficiency of electrical equipment; to inspect and test electrical equipment for compliance with the specified minimum standards for energy efficiency; K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 2 of 15

3 (f) (g) (h) (i) (j) to investigate events or incidents which have implications for electrical safety; to provide advisory and consultative services in relation to electrical safety and electrical equipment, electrical installations and electrical work; to advise the electricity industry and the community in relation to electrical safety; to monitor and enforce compliance with the Act and associated regulations; and such other functions as are conferred on the OCEI by or under the Act or any other Act Powers For the purpose of performing its functions the OCEI has such powers as are conferred on it by the Act or any other Act and may do all other things necessary or convenient to be done for, or in connection with, or as incidental to, the achievement of the OCEI objectives or the performance of the OCEI functions Corporate Plan The OCEI prepares a corporate plan each year and a Statement of Corporate Intent that covers a three-year period including the current financial year and two future financial years Annual Report The OCEI prepares an Annual Report that covers each financial year and the Annual Report is presented in the Victorian Parliament. The Annual Report for the year 2003/2004 is available on the OCEI s website ( Regulations The OCEI administers regulations as follows: Electricity Safety (Bushfire Mitigation) Regulations 2003; Electricity Safety (Electric Line Clearance) Regulations 1999; Electricity Safety (Equipment Efficiency) Regulations 1999; Electricity Safety (Equipment) Regulations 1999; Electricity Safety (Infringement) Regulations 2000; Electricity Safety (Installations) Regulations 1999; Electricity Safety (Management) Regulations 1999; Electricity Safety (Network Assets) Regulations 1999; and Electricity Safety (Stray Current) Regulations Orders-in-Council The OCEI administers a significant number of Orders-in-Council providing for exemptions from the Electricity Safety Act under Section 4 of the Act. K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 3 of 15

4 1.2.8 Standards The OCEI administers the significant number of Australian Standards and Australian/New Zealand Standards incorporated in the regulations Codes of Practice The OCEI administers relevant Codes of Practice that are incorporated or partly incorporated in regulations Guidelines The OCEI has developed a significant number of guidelines to assist the public, other regulatory authorities, industry participants and national/international bodies understand the means by which compliance with the legislation and regulations can be achieved Policies The OCEI has developed and published appropriate policies (eg. Enforcement Policy) on the OCEI website and in the Annual Report. The publication of these policies enable the public, industry participants, other regulators and national/international bodies to understand the mode of operation of the OCEI. 2. ACHIEVEMENTS Since the establishment of the OCEI under the Electricity Safety Act in 1998, the OCEI has demonstrated national leadership in electrical safety matters throughout Australia and continues to improve the current superior electrical safety record for Victoria. In 2002/2003, it was reported for the first time since records began, that no person had died from accidental electrocution in Victoria for two years (26 months). This achievement is very significant given that 52 deaths had occurred in other Australian States and Territories and New Zealand during those two years. However, one death from direct contact with overhead electrical assets has occurred in 2003/2004 and 2004/2005, while no deaths have occurred on electrical installations in the housing sector or industrial/commercial or farming sectors for over 5 years. This safety record has been obtained by the OCEI operating in its independent role to balance the needs of the community with electricity industry participants and other industry stakeholders. The OCEI intends to continue to ensure it maintains its premier position through building on key initiatives, namely: The Certificate of Electrical Safety system, which is the most effective vehicle to ensure electrical installation work ( installation work means installation, maintenance, repair and alteration) is safe and complies with the relevant standards. Actively pursue the OCEI s ongoing safety switch campaign with the aim of ensuring that Victoria s 1.6 million domestic properties have the total protection of safety switches in the coming years. Build on the OCEI s No Go Zone project to educate workers in a wide variety of occupations in the practices and competencies required to achieve safety when K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 4 of 15

5 working around power lines, both overhead and underground, particularly low voltage underground services to domestic properties and other types of properties. Maintain good working relationships based on cooperation and coordination, with all stakeholders to continue to improve Victoria s excellent electrical safety results, particularly to minimise any perceived duplication of activities with other safety regulators, including the Building Commission. Further, the OCEI has a significant role in safe guarding electrical safety interests of consumers through being independent. The OCEI is funded totally by the electricity industry with the main revenue streams of a levy on the electricity distribution businesses, fees for registration of electrical contractors, licensing of electrical workers, electrical equipment approvals and the sale of certificates of electrical safety. The OCEI also delivers an independent and transparent service to the community. The OCEI has recognised the need for broad regional, environmental and social issues to be considered in regulatory decisions. The OCEI has recognised the need to consider broader issues in relation to regulatory decisions through the development of various Committees formulated under Section 10 of the Electricity Safety Act, including: Electrical Licensing and Registration Advisory Committee (ELRAC); Electrical Safety Committee (General); Electrical Safety Committee (Building and Construction sites); Lines Across Public Land Committee; Live Line Working Rules Committee; Safe Work on Electrical Installations Committee; and Lineworker Registration Committee. It should be noted that the ELRAC appears to be similar to the Building Regulations Advisory Committee and benefits could be obtained through sharing of information between these two Committees. The OCEI is currently involved in broader environmental and social issues through dealing with customers in such areas as electrical work, tree clearing, maintenance of Private Overhead Electric Lines (POELs), metering and general customer service matters. These matters are resolved through dealing with organisations such as: - Energy and Water Ombudsman (Victoria); - Consumer Affairs Victoria; - Essential Services Commission; - Victorian WorkCover Authority; and - Building Commission (where appropriate). The OCEI consistently consults with a wide range of people and organisations, including providing information to those people and organisations, in addition to the requirements of the Subordinate Legislation Act. In this regard, the OCEI has extensive and ongoing consultation with the electricity industry, key stakeholders and the public. This process is undertaken to ensure that any changes to the Electricity Safety Act and associated regulations are appropriate to meet safety outcomes, the requirements of the community and demonstrate cost benefits for any new or amended legislation or regulations. K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 5 of 15

6 3. COOPERATION WITH OTHER REGULATORS The OCEI has recognised the need for coordination between various regulators. As such, the OCEI signed a number of Memoranda of Understanding with other regulators. Memoranda of Understanding have been established with such organisations as the Essential Services Commission, the Victorian WorkCover Authority, Energy and Water Ombudsman (Victoria) and with emergency services. The Emergency Services MOU has developed the Victorian Fire Investigation Policy and Procedures to implement a coordinated approach to fire investigations under the control of the Coroner for fatal fires and for serious fire investigations. To ensure the coordination and cooperation of regulators that interact with the OCEI is achieved, there are meetings held on a regular basis. The OCEI also ensures that the potential impact, if any, of decisions made by other regulators are understood and considered seriously by the OCEI when the OCEI is preparing for its decision. Examples of cooperation are: The Essential Services Commission (ESC) and the OCEI regularly consulted on electrical safety issues during the ESC network pricing review for electricity distribution businesses. The Victorian WorkCover Authority and the OCEI regularly consult on No Go Zone issues where construction and other types of workers are working near overhead and underground power lines. Of course, there are many decisions made by the OCEI that have no impact on other regulators. However, consideration should be given to having a Memorandum of Understanding developed with the Building Commission to maximise efficiencies and minimise any perceived duplication of activities 4. PUBLIC PARTICIPATION The OCEI consistently consults with a wide range of people and organisations including providing information to these people and organisations, in addition to the requirements under the Subordinate Legislation Act. To ensure public participation in regulatory decisions is maximised, the OCEI consults regularly with individuals and organisations such as the following: National Electrical & Communications Association (NECA) Electrical Trades Union (ETU) Electrical Industries Group (EIG) Electricity Distribution, Transmission and Generation businesses Traction companies Registered Electrical Contractors (RECs) Housing Industry Association (HIA) Master Builders Association of Victoria (MBAV) Energy and Water Ombudsman Victoria (EWOV) Australian Industries Group (AiG) Large industrial customer contractors Airconditioning and Mechanical Contractors Association (AMCA) K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 6 of 15

7 Registered Training Organisations (RTOs) Essential Services Commission (ESC) Electrical Wholesalers Consumer Affairs Victoria Australian Electrical and Electronic Manufacturers Association (AEEMA) and Consumers Electronics Suppliers Association (CESA). The OCEI regularly provides information to the tripartite committee, Foundations for Safety, which consists of safety regulators, employer and union representatives. In relation to domestic housing construction, the OCEI interacts with such employer organisations as the HIA, NECA, MBAV, AiG, AMCA and relevant Unions such as the ETU and CFMEU. 5. OCEI FUNCTIONS As mentioned previously, the functions of the OCEI are described in Section 8 of the Electricity Safety Act. In this part of the submission, these functions will be expanded. 5.1 Determine minimum safety standards for electrical installations and electrical work. To ensure that electrical work is carried out in accordance with appropriate standards, the OCEI carries out registration of electrical contractors and the licensing of electrical installation workers in accordance with the Electricity Safety (Installations) Regulations. The OCEI administers the registration of over 8,400 registered electrical contractors, over 320 licensed electrical inspectors, over 33,000 licence holders (including 24,000 licensed electricians) throughout Victoria, and receives a significant number of new applications per year for registration and licences. The registration of electrical contractors and processing of applications from licence holders from overseas, New Zealand and interstate is carried out using Trades Recognition Australia, the Trans Tasman Mutual Recognition Act and Mutual Recognition legislation respectively. Electrical installation work ( installation work means installation, repair, maintenance and alterations ) is required to be carried out only by registered electrical contractors or licence holders, in accordance with the Electricity Safety Act, Electricity Safety (Installations) Regulations, Australian/New Zealand Standards, any relevant Orders-in-Council, Codes of Practice and guidelines established by the OCEI. All electrical installation work is required to be covered by a certificate of electrical safety to which registered electrical contractors and/or licence holders certify that compliance has been achieved. The Electricity Safety Act and Electricity Safety (Installations) Regulations, together with Standards and guidelines for testing of all types of electrical installations throughout Victoria, are required to be used by all registered electrical contractors and licence holders whether for low voltage or high voltage electrical installations. Domestic housing, which includes a definition of a domestic installation, states "an electrical installation is a private dwelling or that portion of an electrical installation associated solely with an individual flat or living unit". Residential type areas of electrical installations can include, residential institutions, hotels, boarding houses, hospitals, accommodation houses, motels, hostels and the like. The OCEI provides significant contribution to around 30 Australia and New Zealand Standards for electrical installations and electrical installation work. K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 7 of 15

8 Electrical installation work for domestic housing is required to comply with the Australian/New Zealand Wiring Rules (AS/NZS 3000:2000) or equivalent previous standards if the domestic premises was built before February These Wiring Rules are developed, maintained and amended on a national basis using national and international standards as benchmarks. These Rules are amended based on feedback from the electrical and building industry and also updated every 5 to 6 years. The Wiring Rules are performance based and electrical installation work can be completed using this performance standard, alternative solutions as approved by the OCEI or use the prescriptive standard AS/NZS 3018: Electrical Installations - Domestic installations. Further, for some electrical work, which is defined by the term "construction site", registered electrical contractors and licensed electricians must use the Standard AS/NZS All standards are incorporated in the Electricity Safety(Installations) Regulations and are applied to maximise safety outcomes. The Wiring Rules, AS/NZS 3000:2000, apply to all electrical installations, whether domestic, farm, commercial, industrial, remote area power installations, hazardous areas (oil refineries, petrol stations, grain elevators, manufacturing plant, chemical plants, etc), security fencing, etc and provide the benchmark for safe electrical installations. As such, registered electrical contractors and licence holders (including licensed electricians) and registered and licensed to work on a wide range of types of electrical installations in accordance with the Wiring Rules. These registered electrical contractors and licensed electricians can work on domestic housing electrical installations as well as all other types of installations. The OCEI registers electrical contractors and licensed electricians, not only to carry out electrical work on domestic housing electrical installations, but on a wide range of electrical installations throughout Victoria. The OCEI would like to stress that the registration and licensing system is based on national agreements and national training competencies agreed with all stakeholders involved in the electrical industry. Major stakeholders have been working toward national consistency in training, registration and licensing through the Electrical Regulatory Authorities Council (ERAC), which consists of all State regulators responsible for licensing, registration and electrical safety standards. The introduction of registration and licensing required only for domestic housing construction would appear not to be appropriate as there could potentially be two types of licence and registrations to be issued, with two bodies required to perform auditing and would appear not to be an efficient outcome. The splitting of licensing and registration to cater for domestic housing could translate into confusion for consumers, the public and the industry. Also, any registration and licensing for domestic housing only, may not be recognised by other State regulators or translate into an equivalent registration or licence under Mutual Recognition legislation, thereby minimising portability and national consistency. Further, the OCEI has in place a major audit and inspection program to ensure that electrical installation work is performed to the required standards. For example, in each of the years /2003 and 2003/2004 around 130,000 inspections and audits were performed out of a total of 530,000 jobs - covering domestic, farm commercial and industrial electrical K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 8 of 15

9 installations. Where these inspections and audits reveal non-compliance and/or unsafe situations, the OCEI uses its enforcement powers that could result in prosecutions or the issuing of infringement notices or warning letters. 5.2 Inspect and test electrical installations for compliance with specified safety standards. The definition of electrical installation in the Electricity Safety Act is electrical equipment that is fixed or to be fixed in, on, under or over any land. The requirements for inspecting and testing simple or complex domestic, commercial, government, industrial, farm, electrical installations or electric lines on public land are laid down in the Electricity Safety Act, Electricity Safety (Installations) Regulations, Australian/New Zealand Standards and OCEI guidelines. 5.3 Inspect and test electrical work for compliance with specified safety standards. In the Electricity Safety Act the definition of electrical work is electrical connection work, electrical equipment work, electrical inspection work or electrical installation work. As such, the OCEI ensures that all the work carried out on electrical assets, whether as part of the electricity supply network, electrical installations or any electrical equipment used by a person (or organisation), is performed to the required standards. The Electricity Safety Act and associated regulations cover these requirements. For example, electricity generation, transmission and distribution companies are required to use appropriately qualified, trained, skilled and competent people to carry out electrical work to the required Australian/New Zealand Standards, guideline published by Electricity Supply Association of Australia (ESAA), industry standards and OCEI guidelines. These persons must be authorised to perform work on behalf of the network owner. Further, traction companies are required to perform electrical work in accordance with standards, some of which are incorporated in regulations, and guidelines. Electrical work performed in electrical installations, including connection of electrical equipment to fixed electrical installations is required to be performed only by registered electrical contractors and licensed persons. These contractors and licensed persons must ensure the electrical installation is designed and constructed (installed) in accordance with the relevant standards and/or manufacturer s instructions. Under the Electricity Safety Act and Electricity Safety (Installations) Regulations, registered electrical contractors are required to have the requisite insurance and currently that level of insurance must be $5m or more to cover public liability, professional indemnity (if any) and product liability (for the completed electrical installation) as appropriate. Registered electrical contractors are required to issue a certificate of electrical safety to the "person who requested the work to be done" whether for prescribed electrical installation work (usually electrical work over which the customer has no control or some complex installation) or non-prescribed electrical work (usually electrical work over which the customer has full control or less complex installations). The licensed electrician who completed the electrical installation work must certify that the electrical work (as described on the certificate of compliance) complies with the requirements of the Electricity Safety Act, Electricity Safety (Installations) Regulations, the Wiring Rules K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 9 of 15

10 and has been tested. The cost of a certificate of electrical safety for prescribed electrical installation work costs the registered electrical contractor, and therefore the customer, $20, while the cost of a certificate for non-prescribed electrical work costs $5. For the connection of a new domestic premises to electricity supply, a mandatory inspection of the prescribed electrical installation work is required and the cost of that inspection in urban areas is up to $75 while an inspection in regional Victoria could be $75 or more. However, there are over 320 licensed electrical inspectors throughout Victoria that provides a competitive environment. The certificate system was introduced in 1999 and there has been no cost increase for certificates since that time. Further, the certificate system has no warranty insurance requirements attached to the certificate, unlike the certificate of compliance issued by licensed plumbers. Where registered electrical contractors and licensed electricians carry out electrical work on domestic housing, their own insurance requirements are required to cover any damage or faulty electrical work, whether the value of the work is $100 or $1m or whether the installation is a single storey property or a multi-storey property, whether 3 or 20 stories. Where disputes arise about the quality of the electrical work, the adequacy of the electrical work or compliance with the electrical safety legislation, regulations or standards, the OCEI can direct registered electrical contractors or licensed electricians to over 320 licensed electrical inspectors throughout Victoria or use the expertise available in the OCEI. Electrical inspectors are licensed by the OCEI and are required to perform electrical inspections in accordance with OCEI guidelines. In relation to the income from the sale of certificates of electrical safety, the funds from these sales totally support the audit, monitoring and education programs developed by the OCEI. The OCEI audits registered electrical contractors and licence holders investigates complaints and incidents related to all types of electrical installations including undertaking enforcement action as required. Where equipment is connected to an electrical installation using a plug and socket arrangement, the general public, householders, tradespeople, young people and children must have confidence that the connection is able to be performed safely and is safe. Further, the operation of electrical equipment must be able to be carried out safely with confidence by the general public without causing electric shock or fires. Consequently, the OCEI is required to ensure that electrical work is performed to the required safety levels and standards for all classes of premises, including domestic housing, throughout Victoria through OCEI programs and the requirements laid down in the Electricity Safety Act, associated regulations, standards, codes and guidelines. 5.4 Investigate events or incidents which have implications for electrical safety. All electrical incidents are required to be reported to the OCEI by fire authorities, electricity suppliers, electricity generations, transmission and distribution companies, traction companies, registered electrical contractors, licence holders, builders and high voltage operators (and can also be reported by the general public) in accordance with the Electricity Safety Act, regulations and guidelines. Electrical incidents can be reported to the OCEI using VWA documentation to minimise duplication. The OCEI and VWA regularly share reported K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 10 of 15

11 incidents to ensure all relevant reports and data is collected and available for analysis. Sharing of information with the Building Commission could be achieved using a Memorandum of Understanding. As a result of the OCEI investigating these incidents or accidents, and also through the OCEI s auditing and monitoring activities, the OCEI completed 57 prosecutions for 2003/2004 with 100% success and issued 41 Infringement Notices. The OCEI investigated 403 breaches of the Electricity Safety Act and Electricity Safety (Installations) Regulations in 2003/2004. Further statistical evidence is available in the OCEI Annual Report for 2003/2004 which is available on the OCEI website ( The results of the analysis of investigations carried out by the OCEI are used to develop public and industry awareness campaigns. 5.5 Provide advisory and consultative services in relation to electrical safety and electrical equipment, electrical installations and electrical work. The OCEI provides advisory consultative advice to a wide range of people and organisations concerning electrical safety issues. Information and advice is provided to the general public, domestic, industrial, farm and commercial electricity customers, manufacturers, importers, retailers, electricity generation, transmission and distribution companies, traction companies, fire authorities, State governments, the Federal government, State and Federal government agencies, Ombudspersons, employee and employer associations, major industry participants, other Victorian State regulators and agencies, interstate regulators and agencies, schools, registered electrical contractors, licence holders (electricians, etc), licensed electrical inspectors and a large range of consultants. For example, the OCEI provides consultative advice to registered electrical contractors for the design of electrical installations, whether domestic, farm, commercial or industrial, providing a significant amount of advice to registered electrical contractors and licensed persons as to how to effectively operate under the Electricity Safety Act and Electricity Safety (Installations) Regulations together with effective and efficient use of the certificate of electrical safety with the aim to minimise costs to industry. Maximum use is made of the OCEI Website ( to provide clear and up to date information to the building industry, electrical industry and the general public in addition to a significant public awareness program. 5.6 Advise the electricity industry and community in relation to electricity safety. As mentioned previously, the OCEI analyses data from the investigation of electrical incidents and accidents as well as investigating national and international trends in electrical safety matters. As such, the OCEI has developed a wide range of initiatives to ensure the need for electricity safety is foremost in the minds of the community and electrical workers and management across a wide range of private, public and government organisations to minimise injury, loss of life, damage to property and livestock due to electrical causes. Some key initiatives are as follows: K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 11 of 15

12 Safety Switch Initiative A safety switch program is being designed and will be implemented, after significant community and industry consultation, to increase the number of Victorian premises with safety switches installed, particularly in domestic premises. Safety Home Inspection Initiative A home safety inspection program has been designed to make available home safety inspections in Victorian domestic premises. Certificate of Electrical Safety Initiative The certificate of electrical safety program is continually reviewed and enhanced to ensure safety outcomes are maximised. National Safety Initiative In pursuit of national best practice in safety legislation, regulation and standards and to support industry by seeking national uniformity, the OCEI will continue to actively participate in various national committees - Electrical Regulatory Authorities Council (ERAC), National Uniform Electrical Licensing Advisory Committee (NUELAC) and National Electricity Network Safety Code Steering Committee (NENS Code) - and develop, where appropriate, national consistency. International Safety Initiative To pursue international best practice in safety legislation, regulation and standards by supporting the development and implementation of international mutual recognition agreements. These agreements actively support safety improvements. Public Awareness Initiative The OCEI has in place a public awareness campaign to further enhance the promotion of its key electrical safety messages to the community. Industry Awareness Initiative The OCEI has in place an industry awareness campaign to further disseminate electrical safety information and further promote its key electrical safety messages to the electrical industry. Incident Response Initiative The OCEI is working with the MFESB and the CFA to implement a system and the accompanying processes and procedures to enable the fire authorities to report the necessary information to enable the determination of trends in relation to the causes of electrical fires. Training and Education Initiative In light of significant changes in the electricity industry which have resulted in consequence of its diversification into communications and other technology changes, the OCEI is working with industry to identify the further safety training and education needs of electrical engineers, registered electrical contractors, electricians and other licence holders. 5.7 Monitor and enforce compliance with the Electricity Safety Act and Regulations. The objectives of the Electricity Safety Act are stated in Section 7 of the Act and these objectives are to encourage and promote safe electricity supply networks, electrical K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 12 of 15

13 installations, electrical equipment and the use of electricity in these system and equipment. The Act is also established to eliminate the use of unqualified and unlicensed persons carrying out electrical wiring work, unqualified persons carrying out electrical work on electricity networks, electrical equipment being supplied or offered for supply from dubious or unknown sources and the quality of repair work carried out on electrical equipment intended for sale on the second hand market. The Electricity Safety Act and associated regulations are to ensure that all electricity industry participants and electricity customers have access to relevant and accurate information to ensure a safe environment is achieved. The Act and regulations set mandatory benchmarks for the safety of electrical networks, installations and equipment and the safety of electricity customers by minimising the risk of electric shock, burns and fire. It also means that the safety of electrical equipment should not need to be established by electricity customers independently when purchasing these items. As such, the OCEI has in place significant enforcement, auditing and monitoring activities to ensure the required benchmarks are achieved and compliance maintained. The OCEI has appointed enforcement officers who are permanent employees of the OCEI and the Chief Electrical Inspector has the ability to appoint enforcement officers from around 320 licensed electrical inspectors, who are qualified and suitable trained and are not employees of the OCEI, to carry out an enforcement role. The OCEI s enforcement philosophy is published on the OCEI website ( 5.8 Carry out such other functions as are conferred on the OCEI by or under the Electricity Safety Act or any other Act. The OCEI is required to undertake enforcement responsibilities under Part 6 of the Electricity Industry Act which relates to electricity supply emergency provisions. Section 95 of the Electricity Industry Act indicates that if it appears to the Governor-in- Council that: (a) an event has occurred, or is about to occur, which may endanger an undertaking of a distribution, transmission or generation company or a person who supplies electricity to another person or materially affect the safe, economical or effective supply of electricity; or (b) the available supply of electricity is, or is likely to become, less than is sufficient for the reasonable requirements of the community the Governor-in-Council may declare Part 6 of the Electricity Industry Act to be in force. An example of this application is for electricity restrictions and, in this case, the OCEI is required to enforce the requirements of any direction issued by the Premier and/or Minister and may undertake prosecutions as per Section 105 of the Electricity Industry Act. 6. UNIFORMITY Uniformity of electrical safety regimes in each State and Territory in Australia, as well as New Zealand, is maximised through participation of all jurisdictions in the Electrical Regulatory Authorities Council (ERAC). ERAC is a technical and safety liaison group which coordinates its activities with the Federal Government. ERAC is also involved in the development of standards, national coordination to achieve uniformity in such things as recalls of unsafe electrical products, safety promotion K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 13 of 15

14 strategies, accident prevention programs, electrical equipment efficiency programs, licensing of electrical workers, registration or licensing of electrical contractors and the development of standards and guidelines for electricity supply networks. The OCEI is a key participant in ERAC and provides national leadership for many of the programs. The Chief Electrical Inspector has represented all Australian electrical safety regulators at meetings for international mutual recognition agreements. This is to ensure that the OCEI and other State and Territory regulators pursue international best practice in electricity safety legislation, regulations and standards by supporting the development and implementation of international mutual recognition agreements. 7. REGULATORY REGIME As mentioned earlier in this submission, there are over 8,400 registered electrical contractors in Victoria, over 24,000 licensed electricians and over 320 licensed electrical inspectors. With the introduction of the Electricity Safety Act, Electricity Safety (Installations) Regulations and the Certificate of Electrical Safety in 1999, there were around 7,700 registered electrical contractors, around 20,000 licensed electricians and 150 licensed electrical inspectors. The current legislative and regulatory environment in Victoria was established in 1998/1999 through industry and public consultation using a Regulatory Impact Statement (RIS), approved by the Office of Regulatory Reform which demonstrated a cost benefit for Victorians. Further, as part of the consultation process the OCEI conducted a significant number of information sessions around Victoria and addressed over 2,600 electrical industry participants. The feedback from this consultation process clearly demonstrated the need for electrical installation work in the domestic sector and elsewhere to be carried out only by registered electrical contractors or licensed electricians, with the electrical work being certified and tested to the required standards; in this case, the Wiring Rules. Further, new Wiring Rules (AS/NZS 3000:2000) were introduced into the amended Electricity Safety (Installations) Regulations in 2001 using an RIS through industry and public consultation. In the RIS that was published in 1999 and the RIS that was published in 2000, the fees for registration of electrical contractors, licensed electricians and licensed electrical inspectors were established as follows: Registration of electrical contracto5rs - new application $240 - annual renewal $170 Licensed electrician - new application $200 - renewal (every 5 yrs) $130 Licensed electrical inspectors - new application $240 - annual renewal $170 These fees have not been increased since K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 14 of 15

15 As indicated previously, these industry participants can operate across domestic, farm, commercial or industrial installations, whether the work involves new construction or ongoing maintenance, alteration or repairs to completed buildings. As there has been a significant increase in registered electrical contractors, licensed electricians and licensed electrical inspectors, people who require electrical work to be carried out have an opportunity to obtain the services of industry participants at competitive rates and also have a wide choice of contractor or licensed person, whether in urban centres or regional Victoria. With the introduction of the OCEI's auditing and monitoring regime under the 1999 legislation and the certificate of electrical safety, the compliance rate for electrical installation work has increased from 82% to 94% and no fatalities have occurred in electrical installations for at least 5 years. To ensure these standards and the competency of licensed electricians and licensed electrical inspectors are maintained, the OCEI is considering the introduction of Skills Maintenance programs in 2005/2006 in consultation with employer and employee organisations as well as industry participants. 8. SUMMARY The OCEI believes that the current operation of the OCEI and the licensing and registration arrangements is working very well. Further, it should be noted that, while the overall value of domestic housing construction work is significant in economic terms, the electrical installation work is a minor cost when comparing the total construction cost for each domestic premises. Further, the OCEI would like to stress that registered electrical contractors and licensed electricians are registered and licensed to carry out electrical work on a wide range of electrical installations covering new domestic, farm, commercial and industrial premises as well as carry out alterations, maintenance and repairs on those premises for the life of each premises. The OCEI believes it would be appropriate to establish a Memorandum of Understanding with the Building Commission to share information, undertake education programs and remove any perceived duplication of activities. K:\VCEC\Inquiries\Inquiry - Housing Construction\Submissions\18 - Office of the Chief Electrical Inspector\Office of the Chief Electrical Inspector Submission.doc Page 15 of 15