Energy Safety. Annual Report and Business Outlook
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- Todd Morris
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1 Energy Safety Annual Report and Business Outlook
2 Contents Annual Report How we contributed in Highlights...3 Energy Safety policy advice... 4 Regulatory framework... 6 International coordination and representation... 7 Compliance and enforcement... 8 Notifiable accident investigations... 9 Industry engagement...10 Business and online services Business development and capability...12 Service Delivery Standards and Business Activity Statistics Audits undertaken...13 Investigations...14 Business objectives...14 Summary of Reported Accidents Statement of Financial Performance Business Outlook Our team...17 How we contribute to MBIE outcomes and government goals Regulatory framework...19 International coordination and representation...19 Energy Safety policy advice...21 Compliance and enforcement Notifiable accident investigations Industry engagement Business and online services Business development and capability Energy Safety Underlying Goals Acronyms and Abbreviations...29 Contacts ENERGY SAFETY Annual Report ii
3 Annual Report Energy Safety is the government agency responsible for providing an effective investigation, compliance, enforcement, and conformance regime for achieving electrical and gas safety outcomes. Our work is carried out under the provisions of the Electricity Act 1992, the Gas Act 1992, and with aspects of the Hazardous Substances and New Organisms Act 1996, and their associated Regulations and Gazette notices. We are empowered through a statutory Secretary, the chief executive of the Ministry, or their delegate, who is responsible for operating particular provisions of the Electricity Act and the Gas Act. We work with both the public and industry to create an environment in which: People and property are safeguarded from the dangers of electricity and gas. Electrical and gas appliances, installations, electricity and gas supply and generating systems are safe. Because electricity and gas can be hazardous for people, their property, and the environment if not used properly, Energy Safety raises safety awareness and promotes the safe use and supply of this energy. We see this as important work and remain committed to maintaining and improving New Zealand s safety record. We also monitor, encourage and enforce compliance with the laws relating to electrical and gas safety. Energy Safety s work programme for was aligned with specific outcomes described in the Ministry of Economic Development s (MED) Statement of Intent Through these outcomes, as highlighted below, our work contributed to the MED s objectives and the Government s overall goal of lifting the long-term performance of the New Zealand economy. ENERGY SAFETY Annual Report
4 How we contributed in MED OUTCOMES Efficient, Reliable and Responsive Infrastructure Services International International Linkages Linkages Dynamic and Trusted Dynamic Markets and Trusted Markets Efficient and Effective Delivery ENERGY SAFETY OUTPUTS Energy Safety Policy Advice Acts and Regulations International Coordination and Representation Electricity and gas product compliance framework Compliance and Enforcement Audits Industry Engagement Business and online services GTRC Regulatory Framework ERAC Investigations of unsafe installations, non-compliance, and accident events Business development and capability OUR FOCUS: To be an efficient and effective regulator that is proactive on public energy safety issues, responsive to industry and consumer energy safety concerns, and to model regulatory best-practice. ENERGY SAFETY Annual Report
5 Highlights Policy Advice > Progressed work related to the Gas and Electrical Certification and Fees Review. The outcomes will meet Cabinet directives to improve the certification regimes while continuing to prioritise public safety outcomes. > Worked with key industry organisations, stakeholders and experts to ensure the revised certification regimes will be workable from an industry perspective. International Representation > Established an informal cooperative agreement with North American (Canada and United States of America) gas product certification agencies to support New Zealand recognition of gas appliances certified under their regimes. > Contributed to the Electrical Regulatory Authorities Council (ERAC) and Gas Technical Regulators Committee (GTRC) to maintain alignment and consistency, and exchange information on energy safety issues across borders. A key project included the collection of data for gas fatal accident analysis with GTRC and data for electrical fatal accident analysis with ERAC. > Energy Safety was featured at an APEC workshop in Singapore in May The workshop promoted the adoption of Risk Assessment disciplines within the APEC and ASEAN region using the principles of the assessment model developed by Energy Safety. The assessment model is now being refined for adoption by Australian regulatory agencies. Compliance and Enforcement > Continued a targeted risk-based audit compliance programme to ensure product suppliers, manufacturers, networks, distribution systems, installations and appliances comply with safety standards. > Began development of an online database of gas and electrical installation work for work classified as high risk. The database will go live by July 2013 as a result of planned changes to the gas and electrical certification regimes. Industry Engagement > Launched the new Energy Safety website making it easier for clients and the public to find the information they need. Investigations, Prosecutions and Prohibitions > Completed 63 investigations of significant electrical and gas accidents and incidents, where there was a serious injury or property loss as defined in section 16 of the Electricity Act 1992 and section 17 of the Gas Act > Achieved a sentencing outcome for a joint prosecution with Radio Spectrum Management for the sale of an unsafe charger and adaptor. > Two electrical products were prohibited from manufacture, importation, sale (including offer to sell), and use (including installation). ENERGY SAFETY Annual Report
6 EFFICIENT, RELIABLE, AND RESPONSIVE INFRASTRUCTURE SERVICES Improving the quality and reliability of key infrastructure services that support growth Energy Safety policy advice Energy Safety provided quality policy advice on the safe supply and use of electricity and gas, while recognising the impact that regulation has on New Zealand s economy and prosperity. This year a key focus was the Certification and Fees Review project, supplemented by further regulatory adjustments. Energy Safety also completed a range of Standards to develop and maintain the Standards environment on which the Regulations rely. Certification and Fees Review > Progressed the Gas and Electrical Certification and Fees Review. The outcome will meet Cabinet directives to improve the certification regimes while retaining public safety outcomes. Under the new regimes: certification will be strengthened coverage will be extended to include all electrical and gas work certification fees will be removed. > Worked with relevant government agencies to ensure a cohesive crossgovernment approach to the new certification regimes. > Developed a communications strategy and implementation plan to inform tradespeople about the new certification regimes and fee changes. > Published the Summary of Submissions on the Gas and Electrical Certification and Fees Review Discussion Document and the Gas and Electrical Certification and Fees Review Survey Summary on our website. Acts and Regulations > Amended the gas and electricity Regulations to: recognise North American certification regimes for gas appliances, and postpone the implementation of the gas appliance regime until 1 July 2013, and reflect changes to Standards and technological changes. > Completed a post-implementation stocktake of key initiatives introduced by the 2011 Amendment Regulations. > Provided policy advice on the structure and implementation of updated Regulations. > Continued discussions around possible review of the Electricity (Hazards from Trees) Regulations. > Began drafting new 2012 Amendment Regulations to be gazetted in September ENERGY SAFETY Annual Report
7 Standards > Continued a review of key joint safety standards for networks, installations, and appliances: a NZ-only amendment to AS/NZS 3000 Wiring rules to clarify the use of sensitive 10 ma RCDs a NZ-only amendment to AS/NZS 4645 gas distribution to define exclusion zones around gas meters and adjustments to the applicable pressure range adoption of AS 3645 as a certification standard for the New Zealand gas appliance certification regime. > Work also commenced on further significant revisions of AS/NZS 3000 electrical wiring rules and AS/NZS 5601 gas installations. Other policy activities > Briefed the incoming Minister of Energy and Resources on our work and key safety outcomes. > Provided policy advice on the safe supply and use of electricity and gas. > Continued an on-going review of the effectiveness of gas and regulatory frameworks to ensure fitness and costeffectiveness. > Worked with the Electricity Engineers Association, the Electricity Networks Association, Standards New Zealand, certification bodies and industry on the introduction of Safety Management Systems (SMS). > Monitored the introduction of SMS for electricity networks. > Continued research regarding alternatives to the Multiple Earth Neutral (MEN) system for electricity supply. ENERGY SAFETY Annual Report
8 Regulatory framework Energy Safety worked to improve the regulatory environment by delivering an effective and innovative regulatory framework while keeping compliance costs to a minimum. We kept the framework in line with recognised good regulatory practise by aligning regulations with international guidelines, supporting trade and business, and implementing risk management principles into Regulation. Safety framework > Continued a rolling review of the gas and electricity Regulations and planned for amendments as needed. > Consulted with key stakeholders to ensure that the evolution of legislation followed good international regulatory practice. Memorandum of Understanding > Continued to maintain and work towards formal MoUs with other government and non-government agencies to enhance inter-regulatory cooperation on shared responsibilities. Standards New Zealand > Continued the review and revision of Standards to support the new electricity and gas regulatory frameworks, in particular those associated with the gas appliance regime. > Worked with Standards New Zealand and industry to promote a shift towards direct adoption of international Standards where appropriate. ENERGY SAFETY Annual Report
9 INTERNATIONAL LINKAGES Improving the linkages that allow New Zealand firms to benefit from trade and the flows of investment, skills, and technology International coordination and representation Energy Safety s work with overseas regulators helps New Zealand to achieve greater international regulatory convergence and reduce trade barriers and the associated costs of moving electricity and gas products across borders. It allows interchange of knowledge and expertise with international regulators to improve energy safety outcomes. This year a key focus included leveraging our already existing relationships in the international electricity sector to improve and broaden relationships in the gas sector. Australia > Contributed to the Electrical Regulatory Authorities Council (ERAC) and Gas Technical Regulators Committee (GTRC) to maintain alignment and consistency on energy safety issues across borders. > A key project included the collection of data for the analysis of fatal gas accidents with GTRC and data for fatal electrical accidents with ERAC. Asia-Pacific > Shared electrical and gas safety information with Asia-Pacific regulators to improve energy safety in New Zealand and the Asia-Pacific region. > Continued to work with China, APEC, and other trading partners to improve safety and compliance conditions for the facilitation of the trans-border movement of electrical products. Explored opportunities to implement similar arrangements for gas appliances. > Participated in the government-togovernment cooperation agreement with Taiwan to expand cooperative electrical regulatory activities and to include cooperative gas regulatory activities. > Participated in Trans-Pacific Partnership (TPP) work as needed. Worked in partnership with MED s Competition, Trade and Investment Branch to explore the possibility of increased cooperation in both gas and electricity spheres. Provided information to support negotiations on transparency provisions in relation to Technical Barriers to Trade. > Energy Safety was featured at an APEC workshop in Singapore in May The workshop focussed on the application of risk assessment techniques to electrical equipment Regulation and promoted the adoption of risk assessment disciplines within the APEC and ASEAN region using the principles of the assessment model developed by Energy Safety. The model is now being refined for adoption by Australian regulatory agencies. Multilateral > Continued to align electrical and gas product compliance on an international basis, and across other product compliance frameworks, to reduce regulatory costs for firms operating in international markets and to reduce product costs for consumers. > Provided support as required to New Zealand international negotiations in relation to electrical products in a WTO context. > Established an informal cooperative arrangement with Canadian and United States of America gas product certification agencies to support the New Zealand recognition of gas appliances certified under their regimes. ENERGY SAFETY Annual Report
10 DYNAMIC AND TRUSTED MARKETS Improving the competitiveness, integrity, and effectiveness of New Zealand s markets Compliance and enforcement Energy Safety continued the development and implementation of its compliance and enforcement strategy, including the incorporation of the 2011 Amendments to the gas and electricity Regulations. Energy Safety s strategy focused on actively targeting known risk areas that impact on consumers and providing updated statistical data to support the Regulations. Compliance audits > Continued a targeted risk-based audit compliance programme to ensure product suppliers, manufacturers, networks, distribution systems, installations and appliances comply with safety standards. > Conducted audits of electricity and gas suppliers, networks, distribution systems, installations and appliances. > Supported and encouraged the use of robust self-audit protocols: for SMSs by electricity and gas supply system operators and works operators, and for suppliers of electrical and gas products to meet essential safety requirements. > Strengthened the quality of service delivery procedures for third-party accredited electricity and gas safety practitioners to carry out external audits and investigations. Prohibition > Two electrical products were prohibited from manufacture, importation, sale (including an offer to sell), and use (including installation): Inverters, that connect directly into an installation by a 3-pin plug, including but not limited to the type of inverter known as Grid Tie Inverter Go-4-Green Energy Smart SD-001 Prosecution > Achieved a sentencing outcome for a joint prosecution with Radio Spectrum Management for the sale of an unsafe charger and adaptor. This resulted in a total fine of $13,500, of which $8,000 was for the sale of an unsafe item. Cooperation > Coordinated product compliance auditing with other product regulatory agencies to protect the integrity of electrical and gas appliances entering New Zealand. > Continued to work with manufacturers and importers to initiate proactive audit programmes and education strategies in the electricity and gas sectors. > Provided input to the Electrical Engineers Association (EEA) on proposed safety wording for consumers, around trees and power lines. ENERGY SAFETY Annual Report
11 Other projects > Developed the approved practitioner framework for the assessment of gas appliances. > Updated compliance guides to align with 2011 Amendments to Regulations. Notifiable accident investigations Energy Safety provided effective and efficient accident investigation services with the aim of reducing the number of incidents occurring. Our goal is to improve the knowledge and understanding of incident causation and thereby improve incident mitigation. > Conducted investigations of significant electricity and gas accidents where there was serious injury or property loss as defined in section 16 of the Electricity Act 1992 and section 17 of the Gas Act > Analysed these accidents to focus Energy Safety s outreach and education programmes and Standards development. > Published detailed quarterly reports and the 2011 Summary of Reported Electrical and Gas Accidents. > Continued to develop staff skills and invest in tools to enable efficient investigation of existing electrical and gas services and products. ENERGY SAFETY Annual Report
12 EFFICIENT AND EFFECTIVE DELIVERY Delivering better, smarter public services Industry engagement Energy Safety continued to work in partnership with industry to maintain a unified energy safety programme that underpins Energy Safety s work and enhances the electricity and gas sectors potential for economic growth. Outreach and education > Energy Safety released safety advisories and safety alerts in response to safety issues, including: Advising owners and operators of hotels, motels and other short-term accommodation to take care with the condition of cords for electrical appliances. Advising consumers to use licensed workers after Energy Safety became aware of a number of instances where unsafe situations had arisen following repairs to buildings damaged in the Canterbury earthquakes. Warning gas consumers to seek expert advice and help following a Maui gas pipeline outage. > Worked with the energy industry and other safety regulators to develop a common energy safety strategy to complement Energy Safety s work programme. Key stakeholders included LPG Association of New Zealand, Ministry of Education, Housing New Zealand, Motel Association, New Zealand Fire Service, and GTRC. > Continued Energy Safety s outreach and education programmes with product suppliers and direct interaction with consumers at trade shows, external venues, and conferences. > Attended the ECANZ electrotechnical trade show, the Waimumu field day, and other events. > Increased safety awareness by working with manufacturers and importers through the audit process, and implementing proactive education strategies that enhanced our effectiveness as a safety regulator. > Continued to work with website providers and their sellers and members to encourage good business practice through compliance and risk management (Sellers were often unaware of their responsibilities around the sale of electrical equipment but levels of non-compliance decreased as awareness increased). Safe supply and use of electricity and gas > Worked with the electricity and gas industries to identify safety issues and trends, and to proactively address accidents and issues. > Continued to develop risk-based audit profiles and plans to promote consumer safety in areas such as schools and holiday parks, and around appliances such as patios and cabinet heaters. ENERGY SAFETY Annual Report
13 > Maintained relationships with other regulators and organisations with an interest in energy safety to ensure shared safety outcomes were achieved. > Participated in the aviation industry committee process for drafting a code for aircraft electrical supplies (ground power units). Stakeholder awareness > Worked with electrical associations and stakeholders to share information, discuss issues, and improve safety assurance. The common goal is to improve safety in the electricity sector. > Continued to work with the Gas Community Group to develop key areas of work and improve safety. > Developed and released online guides explaining changes to the electricity and gas Regulations. > Produced a video for electrical workers on changes to the electricity regulations. This work was project managed by Standards New Zealand on behalf of Energy Safety and EWRB. Business and online services Energy Safety updated our business and online services to improve client service and enable businesses to interact more easily with us. We launched a new Energy Safety website and continued to improve access to our data systems via our advanced IT system, Energy Safety Intelligence (ESI). Energy Safety website > Energy Safety s new website was launched in May The new website makes it easier for clients and consumers to find the information and services they need and better reflects Energy Safety s regulatory role. > Updated the Energy Safety website s content and navigation to reflect recent amendments to electricity and gas Regulations. > Updated the gas appliance declarations website to reflect recent amendments to gas Regulations. Energy Safety Intelligence (ESI) > ESI provides the information database and online case management systems that support the safety work Energy Safety does. > In 2011 Energy Safety continued to update its data management systems to improve access to detailed and accurate energy safety information. The information was shared with other regulators, consumers, and stakeholders. > Discontinued planned improvements to ESI s reporting capability that would have improved access by external agencies. Third-party access was deemed to be a significant security risk. ENERGY SAFETY Annual Report
14 Other projects > Continued to carry out benchmarking and sharing of best practice with our Australian counterparts. > Conducted Energy Safety s annual client survey, assessed feedback, and identified improvements to website information and client response processes. > Began the development of an online database of gas and electrical installation work for work classified as high risk. The database will go live by July 2013 as a result of planned changes to the gas and electrical certification regimes. > Maintained the gas appliance declarations database and implemented third-party certification provisions. Business development and capability Energy Safety regularly reviewed our progress and priorities and reallocated resources as needed to address changing requirements. > Carried out a rolling programme of reviews to refresh information that informs electrical and gas product suppliers and consumers about energy safety. > Maintained and strengthened our business processes to retain ISO certification and to perform investigations and audits that encourage voluntary compliance. > Continued to review our internal processes and procedures to identify and implement efficiencies where possible. > Evaluated staff engagement and addressed issues identified in the assessment of results. ENERGY SAFETY Annual Report
15 Service Delivery Standards and Business Activity Statistics Data for this section was obtained from Energy Safety s internal reporting systems. Audits undertaken > Conducted 677 audits of electrical and gas appliances from 252 electrical and gas suppliers. > Conducted 73 audits of networks, distribution systems, and installations. > Issued 140 warnings and 36 infringement notices to suppliers of electrical and gas appliances and fittings for breaching the electricity and gas Regulations. Audits and inspections 92% of audit and inspection reports were completed within 30 working days of completion of the audit or inspection (exceeding the target of 90%). 100% 80% 60% 40% audit types 2 electricity network & distribution system audits > 8 gas network & distribution system audits 63 installation audits (gas & electricity) 677 appliance audits audit and inspection reports completed within 30 working days 100% 88% > > > 78% 95% 20% 0% Electricity Network & Distribution System Audits Gas Network & Distribution System Audits Installation Audits (Gas & Electricity) Appliance Audits ENERGY SAFETY Annual Report
16 Investigations accidents and incidents investigated Accidents and incidents investigated Energy Safety completed 63 investigations of significant electrical and gas accidents and incidents, where there was serious injury or property loss as defined in section 16 of the Electricity Act 1992 and section 17 of the Gas Act Accidents responded to within 24 hours 95% of accidents were responded to and action commenced within 24 hours of notification to Energy Safety (meeting the target of 95%). Business objectives % 35 Electricity 21 LPG Gas accidents responded to within 24 hours 7 > Retained ISO9001 certification for the performance of investigations and auditing. 94% 96% > Provided initial response to client enquiries: 89% within 2 working days (missing our 90% target) 96% within 5 working days (exceeding our target of 95%). 80% Electricity Gas, including LPG > Investigated and closed 94% of enquiries within 5 working days (exceeding our target of 90%). > 100% of cases sampled met quality assurance checks (exceeding our target of 75%). ENERGY SAFETY Annual Report
17 Summary of Reported Accidents Energy Safety investigates non-workplace-related electricity and gas accidents that involve the public. Workplace-related accident investigations are the responsibility of the MBIE Labour as the lead agency. We publish a detailed annual Summary of Reported Electrical and Gas Accidents. Analysis of these accidents is used to focus Energy Safety s outreach and education programmes and Standards development. The following is a high-level overview of the information provided in the Executive Summary for the financial year. Electrical accidents There were 15 notifiable electric shock accidents reported during the financial year; they caused a total of one fatality and injured 12 people. Gas accidents During the financial year the following notifiable gas accidents were reported: > 15 notifiable LPG accidents that caused one fatality and injured six people, including: Seven cabinet heater accidents that injured four people > 4 notifiable natural gas accidents that caused no fatalities and no injuries. Three of these accidents involved water heaters. ENERGY SAFETY Annual Report
18 Statement of Financial Performance For the year ended 30 June 2012 Electricity Safety, Quality and Metering 2012 Budget 2012 Actual 2011 Actual $000 $000 $000 Revenue Crown Other* 2,828 2,563 2,664 Total Revenue 2,828 2,563 2,681 Expenses Personnel Operating 1,385 1,134 1,233 Depreciation IT costs Occupancy Capital charge Support costs Total Expenses 2,829 2,563 2,681 Surplus/(Deficit) (1) 0 0 *Sources of Other Revenue Electrical Levies 2,540 2,646 Other revenue ,563 2,664 Natural Gas Safety, Quality and Metering 2012 Budget 2012 Actual 2011 Actual $000 $000 $000 Revenue Crown 12 Other* Total Revenue Expenses Personnel Operating Depreciation IT costs Occupancy Capital charge Support costs Total Expenses Surplus/(Deficit) *Sources of Other Revenue Gas Levies Other revenue ENERGY SAFETY Annual Report
19 Business Outlook The Ministry of Business, Innovation and Employment (MBIE) came into being on 1 July 2012 and integrates the functions of four former agencies the Department of Building and Housing, the Ministry of Economic Development, the Department of Labour and the Ministry of Science and Innovation. Its purpose is to be a catalyst for a high-performing economy to ensure New Zealand s lasting prosperity and wellbeing. Although the structural changes inherent in the merger of four large ministries are expected to take some time to implement, Energy Safety s regulatory role remains within MBIE. As the structural design of MBIE progresses, we have aligned our business to the Ministry of Economic Development s Statement of Intent We designed our work programme to support the Government s overall goal: to build the foundations for a stronger economy that will provide New Zealanders with jobs, higher incomes, and improved living standards. Future Energy Safety annual report and business outlook publications will reflect any changes brought about by the creation of MBIE. In the meantime, the work that Energy Safety does will continue to support MBIE s agenda to drive business growth. Our team MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT SAFETY AND REGULATORY PRACTICE Product Safety & Regulatory Management ENERGY SAFETY Energy Safety Policy Advice Investigations and Compliance ENERGY SAFETY Business Outlook
20 How we contribute to MBIE outcomes and government goals GOVERNMENT MBIE ECONOMIC DEVELOPMENT OUTCOMES ENERGY SAFETY CONTRIBUTIONS ENERGY SAFETY RESULTS Key goals Build a more competitive and productive economy. Responsibly manage government finances. Deliver better public services. Rebuild Christchurch. Long-term outcomes A world-class business environment an improved underlying business environment, both nationally and internationally. Productive and competitive businesses improved innovation, skills and capability within firms and key sectors. Efficient, reliable, and responsive infrastructure services improved quality and reliability of underpinning telecommunications and energy infrastructure. Effective use of assets and resources greater value from national assets, including natural resources, for New Zealanders in an environmentally and socially responsible way. A world-class business environment. Efficient, reliable, and responsive infrastructure services. Delivering better results. Work with industry to promote and ensure high safety and quality standards in electricity and gas networks, installations and products. Prepare for and implement changes to Gas and Electrical Certification and Fees Regimes. Amend gas and electricity Regulations with technical and other necessary updates. Continue participating in ERAC, GTRC, TPP and other international forums. Undertake investigations of significant gas and electrical accidents and incidents. Undertake audits of electrical and gas appliances. Undertake audits of networks/distribution systems and installations. Energy safety education and outreach. Compliance and enforcement. ENERGY SAFETY Business Outlook
21 A WORLD-CLASS BUSINESS ENVIRONMENT An improved underlying business environment, both nationally and internationally Regulatory framework We will work to improve the regulatory environment for business by delivering an innovative and effective regulatory framework while keeping compliance costs to a minimum. Safety framework > Rolling review of the gas and electricity Regulations and planning for amendments as needed. Standards New Zealand > Continue the review and revision of Standards to support the new electricity and gas regulatory frameworks. > Ensure legislation evolution follows international regulatory good practice. Memorandum of Understanding > Continue to work towards formal MoUs with other agencies, to enhance interregulatory cooperation on shared responsibilities. International coordination and representation We will continue our participation in international forums to represent New Zealand s energy safety interests for the protection of existing infrastructure, to encourage opportunities for new investment, and to be well-informed about the latest international developments. We will continue to work closely with overseas regulators to achieve greater international regulatory convergence and reduce trade barriers, and the associated costs of moving electrical and gas products across borders. A key focus will be to increase interaction with European, North American and Asian regulators to explore increasing the New Zealand recognition of international gas appliance certification. Australia > Maintain active participation and leadership in the ERAC and GTRC for alignment and consistency on energy safety issues. > Ongoing participation in implementing changes to the Australian gas and electrical product regulatory regimes. > Continue to develop and review key joint safety standards for networks, installations and appliances. > Implement the use of a single regulatory compliance mark (RCM) with Australia for electrical and electronic appliances, including amendments to compliance labelling requirements. ENERGY SAFETY Business Outlook
22 > Participate in discussions for the development of the future Australian, and possibly joint, electrical appliance safety regime. Asia-Pacific > Continue to develop and implement arrangements to share electrical and gas safety information aimed at improving energy safety in New Zealand and the Asia-Pacific region. > Ongoing work with China, ASEAN, APEC, and our other trading partners in regards to electrical safety compliance to facilitate the trans-border movement of electrical products. We will also explore opportunities to implement similar arrangements for gas appliances. > Review existing trade agreements to reflect changes occurring in New Zealand s regulatory regimes. > Continue our participation in the government-to-government cooperation agreement with Taiwan to increase cooperative electrical regulatory activities and to commence cooperative gas regulatory activities. > Support and engage in the Trans-Pacific Partnership (TPP) as needed. The TPP is envisioned by New Zealand to modernise trade rules and other agendas in the Asia-Pacific region, as it has become an area of economic and trade growth. Multilateral > Continue to align electrical and gas product compliance on an international basis, and across other product compliance frameworks, to reduce regulatory costs for firms operating in international markets and to reduce product costs for consumers. > Provide support as required to New Zealand international negotiations in relation to electrical and gas products in a WTO context. ENERGY SAFETY Business Outlook
23 EFFICIENT, RELIABLE AND RESPONSIVE INFRASTRUCTURE SERVICES Improving the quality and reliability of key infrastructure services that support growth Energy Safety policy advice Energy Safety continues to work towards maintaining a regulatory environment that supports safety while enabling businesses to succeed. We will continue to manage and enforce the safety provisions of the Electricity Act 1992, the Gas Act 1992, and the associated Regulations. Policy advice > Provide policy advice on the safe supply and use of electricity and gas. > Provide policy advice on the structure and implementation of updated Regulations. > Continue the ongoing review of the effectiveness of gas and regulatory frameworks to ensure fitness and costeffectiveness. Certification and Fees regime > Facilitate the implementation of the Gas and Electrical Certification and Fees review and carry out any adjustments, as required. > Report to Economic Growth and Infrastructure (EGI) Cabinet Committee on the effectiveness of the changes introduced by the Gas and Electrical Certification and Fees Review. Acts and Regulations > Update gas and electricity Regulations to ensure they reflect new Standards and identified changes to regulatory regimes, and address emerging issues. > Complete a post-implementation stocktake of key initiatives introduced by the 2012 Amendment Regulations. > Continue discussions around possible review of the Electricity (Hazards from Trees) Regulations. Operational Policy > Continue to work towards implementing a single compliance mark for electrical and electronic products. > Monitor the public safety outcomes from the introduction of SMS for electricity and gas networks. > Develop the approved practitioner framework for assessment of gas appliances. > Develop criteria for installation auditing to support the modified certification regimes for electrical and gas work. ENERGY SAFETY Business Outlook
24 Compliance and enforcement We will continue to develop and implement a compliance and enforcement strategy based on known risk areas and current statistical data to support the Regulations. We will conduct audits of electricity and gas suppliers, networks, distribution systems, installations, and appliances, and actively target noncompliance to achieve public safety outcomes. Compliance audits > Continue to implement a targeted, riskbased audit and compliance programme to ensure products comply with safety standards and required supplier declarations. > Audit electrical and gas networks, distribution systems, installations, and appliances. > Continue to support and encourage the use of robust self-audit protocols: for SMSs by electricity and gas supply system operators and works operators; and for suppliers of electrical and gas products to meet essential safety requirements. > Strengthen the quality of service delivery procedures and expectations for third-party electricity and gas safety practitioners engaged to carry out external audits and investigations. Cooperation and education > Coordinate product compliance auditing with other product regulatory agencies to protect the integrity of electrical and gas appliances offered for sale in New Zealand. > Continue to work with online venues, their sellers and members to encourage good business practice through compliance and risk management. > Continue to work with manufacturers and importers through the audit process, to implement proactive education strategies and audit programmes that enhance our effectiveness as a safety regulator. Other projects > Review compliance guides to align with any updates to Regulations. > Ensure an integrated product compliance regime is in place under new MBIE structure. ENERGY SAFETY Business Outlook
25 Audit forecasts > Audit 150 electrical and gas appliance suppliers and audit 400 of their products. > Conduct 30 audits of electricity and gas networks, distribution systems, and installations. Audit objectives > Retain ISO9001 certification for the performance of auditing. > Conduct, complete, and close 90% of audits within 30 working days of the start of the audit. Client communication > Provide initial response to client enquiries within the following timeframes: 90% within two working days 95% within five working days. > Investigate and close 90% of enquiries within five working days. ENERGY SAFETY Business Outlook
26 Notifiable accident investigations We will provide fast and effective accident investigation services, seeking to identify the causal factors of events and utilise this information with a view to preventing similar events occurring in the future. We will take compliance action as appropriate. > Conduct investigations of significant electricity and gas accidents where there is serious injury or property loss as defined in section 16 of the Electricity Act 1992 and section 17 of the Gas Act > Continue publishing quarterly reports and the annual Summary of Reported Electrical and Gas Accidents. > Analyse these accidents to focus Energy Safety s outreach and education programmes and Standards development. Accident investigation forecasts > Investigate an estimated 65 notifiable accidents, where there is serious injury or significant property damage including: significant electricity accidents including fire significant LPG accidents significant natural gas accidents. Accident investigation objectives > Retain ISO9001 certification for the performance of investigations. > At least 95% of notifiable accident investigations will be responded to, and action commenced, within 24 hours of notification of the accident. > Notifiable accident investigations will be conducted, completed and closed within the following timeframes: 50% within 30 working days 80% within 60 working days. ENERGY SAFETY Business Outlook
27 Industry engagement We will continue to work in partnership with industry to maintain a unified energy safety programme that underpins Energy Safety s work and enhances the electricity and gas sectors potential for economic growth. Outreach and education > Release safety advisories and safety alerts as needed in response to current safety issues. > Work with the energy industry and other safety regulators in an energy focus group to develop a common energy safety strategy to complement Energy Safety s work programme. > Continue our outreach and education programmes with product suppliers and direct interaction with consumers at trade shows, external venues, and conferences. > Enhance safety awareness by working with manufacturers and importers through the audit process; and by implementing proactive education strategies and audit programmes that enhance Energy Safety s effectiveness as a safety regulator. Safe supply and use of electricity and gas > Continue to participate in various forums to strengthen public safety outcomes for New Zealand. > Continue to develop risk-based audit profiles and plans to promote consumer safety in areas such as schools and holiday parks, and around appliances such as patios, cabinet heaters and emerging technologies. > Maintain relationships with other regulators and organisations with an interest in energy safety to ensure mutual safety outcomes are achieved. Stakeholder awareness > Continue to work with associations and stakeholders to share information, discuss issues, and improve safety assurance. Work to shape the industries goals and key areas of work in the coming years. > Continue to work with the Gas Community Group to improve safety assurance through discussion and awareness, and to develop key areas of work. > Develop and release stakeholder guidance explaining forthcoming changes to the electricity and gas Regulations. > Work with the electricity and gas industries and key stakeholders to identify issues and trends, and to work proactively to address accidents or issues. ENERGY SAFETY Business Outlook
28 DELIVERING BETTER RESULTS How we will deliver priority activities more efficiently and effectively Business and online services We will work to make it simpler, quicker, and more effective for business to deal with us. We will streamline our business through a series of new initiatives to improve industry and consumer interactions with Energy Safety. Gas and Electrical High-risk Database > Launch a new online database of gas and electrical installation work classified as high risk by July Energy Safety Intelligence (ESI) > Continue ongoing enhancements to strengthen our data systems and improve the ease of access to accurate energy safety information. > Ensure the data quality of ESI is maintained to enable effective analysis and access to accurate energy safety information for sharing with industry and other agencies. Energy Safety website > Maintain the enhanced gas appliance declarations website in accordance with new Regulations. > Continue to update content to reflect regulatory changes, provide advice on safety issues, and provide information to consumers and industry. > Follow a clear and prioritised rolling programme of reviews aimed at refreshing information that informs electrical and gas product suppliers and consumers about energy safety. Other projects > Continue to carry out benchmarking and sharing of best practice with our Australian counterparts. > Carry out Energy Safety s client survey, assess feedback, and act on any feasible improvements. ENERGY SAFETY Business Outlook
29 Business development and capability We regularly review our progress and priorities and flexibly allocate resources to address changing requirements. > Develop and implement an integration plan for Energy Safety s transition into new MBIE Branch and Group structure. > Maintain and strengthen our business processes to retain ISO certification and to perform investigations and audits that encourage voluntary compliance. > Work with other administrations to compare best practice procedures to improve energy safety outcomes. > Complete the review of the skills and capability needs of Energy Safety and adjust business systems and frameworks to reflect them. > Continue to support the capability of staff and external parties to carry out the work needed for effective management of our outputs. > Evaluate staff engagement and address any issues identified in the assessment of results. ENERGY SAFETY Business Outlook
30 Energy Safety Underlying Goals The following underlying goals will continue to drive our plans in the next few years: > Work with the energy industry to maintain a unified energy safety programme that underpins our work and enhances the electricity and gas sectors potential for growth. > Access and inform international regulatory and technical fora to improve energy safety outcomes, achieve greater international regulatory convergence and reduce trade barriers. > Ensure Energy Safety s compliance and enforcement strategy actively targets known risk areas that impact on consumers. > Use technology to make Energy Safety information and advice more accessible to the energy industry and the public. > Make our operations and results transparent to the energy industry and the public. > Deliver value for money while ensuring the integrity of the regulatory regime. ENERGY SAFETY Business Outlook
31 Acronyms and Abbreviations Energy Safety frequently interacts with the organisations listed below; they are commonly referred to by their acronyms or abbreviations. The list also defines other acronyms and abbreviation frequently used in connection with energy safety or otherwise mentioned in this publication. APEC ASEAN BSMI CCC DBH DoL EASR EEA EEE EECA EESS EGCC EMC ENA ERAC ES ESI EWLG EWRB FTA GANZ GTRC IANZ ISO Asia-Pacific Economic Cooperation Association of Southeast Asian Nations Bureau of Standards Metrology and Inspection (Taiwan) China Compulsory Certification Department of Building and Housing Department of Labour Electrical Appliance Safety Review Electrical Engineers Association Electrical and Electronic Equipment Energy Efficiency and Conservation Authority Electrical Equipment Safety System Electrical and Gas Complaints Commission Electromagnetic Compatibility Electrical Networks Association Electrical Regulatory Authorities Council (trans-tasman) Energy Safety Energy Safety Intelligence (IT system) Electrical Workers Licensing Group Electrical Workers Registration Board Free Trade Agreement Gas Association of New Zealand Gas Technical Regulators Committee (trans-tasman) International Accreditation New Zealand International Standards Organisation ENERGY SAFETY Business Outlook
32 JAC JAS-ANZ LPG LPGANZ MED MBIE MFAT MoU MRA NAMA PGDB RCM Joint Advisory Committee Joint Accreditation System of Australia and New Zealand Liquefied petroleum gas LPG Association of New Zealand Ministry of Economic Development Ministry of Business, Innovation and Employment Ministry of Foreign Affairs and Trade Memorandum of Understanding Mutual Recognition Arrangement Non-Agricultural Market Access Plumbers, Gasfitters & Drainlayers Board Regulatory Compliance Mark Regulations Electricity (Safety) Regulations 2010 Gas (Safety and Measurement) Regulations 2010 RSM SDoC SMS TPP TTMRA WTO Radio Spectrum Management Supplier Declaration of Compliance Safety Management Systems Trans-Pacific Partnership, also known as the Trans-Pacific Strategic Economic Partnership Agreement Trans-Tasman Mutual Recognition Arrangement World Trade Organisation ENERGY SAFETY Business Outlook
33 Contacts website phone (outside New Zealand) fax 0508 Safe Energy ( ) (outside New Zealand) post PO Box 1473 Wellington 6140 New Zealand Sanjai Raj Group Manager, Radio Spectrum Management/Energy Safety Phone sanjai.raj@med.govt.nz Mark Wogan Operations Manager Phone mark.wogan@med.govt.nz ISSN: ONLINE Published October 2012 Please consider the environment before printing this document.
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