Endorsement of submission - Electricity Safety (Electric Line Clearance) Regulations 2015

Transcription

1 SC12 Endorsement of submission - Electricity Safety (Electric Line Clearance) Regulations 2015 Abstract This report informs Council of the submission made by Council officers to Energy Safe Victoria on 13 January 2015 in response to the draft 2015 Electricity Safety (Electric Line Clearance) Regulations (the draft Regulations) and associated Regulatory Impact Statement, and seeks Council s endorsement of the submission. The draft Regulations prescribe a code of practice for electric line clearance along with required standards and practices, management plans and other relevant matters. The draft Regulations are an update on the existing 2010 Regulations which expire in May The Council submission notes that some changes within the draft Regulations will provide a better balance between the continuous supply of electricity, community safety and the amenity delivered by street trees, compared with the provisions of the 2010 Regulations. These elements are highlighted and supported in the submission. Significant concerns remain however regarding the impact of the draft Regulations in their current form and some of the information provided in the Regulatory Impact Statement. While some improvements exist, many of the issues existing in the 2010 Regulations remain. Fundamental to these concerns is the lack of acknowledgment of the value and benefits of street trees, the cost of compliance to councils and their communities, and the significant loss of established trees that would follow if councils are to strictly comply with the Regulations. Specific concerns raised in Council s submission include the lack of reliable data to support claims of power outages caused by interference from street trees and insufficient requirements for electricity distribution businesses to support and cooperate with councils seeking to comply with their obligations, particularly regarding relatively inexpensive engineering solutions. Where issues are raised in Council s submission, potential solutions are offered and requests are made for amendments to the draft Regulations in their current form. Council s submission is aimed at ensuring the Regulations are effective in maintaining electrical safety while preserving the amenity of Council s significant and highly valued trees. Officers' recommendation That the Services Special Committee resolve to endorse the City of Boroondara submission to Energy Safe Victoria on the Electricity Safety (Electric Lines Clearance) Regulations Regulatory Impact Statement (Attachment 1) as annexed to the minutes. Document information City of Boroondara Electricity Safety Regulations Page 1 of 22

2 Responsible director: Bruce Dobson Environment & Infrastructure 1. Purpose This report informs Council of the submission made by the City of Boroondara to Energy Safe Victoria (ESV) on 13 January 2015 in response to the draft 2015 Electricity Safety (Electric Line Clearance) Regulations, and seeks Council s endorsement of the submission. 2. Policy implications and relevance to council plan The submission is consistent with the following key themes identified in the Council Plan : Theme 2: Sustainable environment. Strategic Objective: Our natural and urban environment is improved in a sustainable way. Theme 3: Enhanced amenity. Strategic Objective: The character of our neighbourhood is protected and improved. Theme 4: Quality facilities and assets. Strategic Objective: assets and facilities are proactively managed to meet the community s current and future needs. Theme 5: Responsible Management. Strategic Objective: decision-making in the delivery of high quality services by capable and professional people reflects transparent, accountable and fair behaviours. The submission reflects the following Boroondara Public Health and Wellbeing Plan objective and strategies by advocating to protect the amenity of street trees which provide environmental and aesthetic benefits to our urban streetscapes, creating an environment that people want to walk in, especially for recreation. Strategic objective 2: enhance and develop our neighbourhoods to support health and wellbeing. Strategy 2.2: to encourage practices that assist Council and the community maintain and enhance our natural environment for future generations. The submission is supported by Council s Tree Management Policy which guides the way Council manages its trees. 3. Background Energy Safe Victoria (ESV) is responsible for the development and management of Regulations for electric line clearance in Victoria. The Electricity Safety (Electric Line Clearance) Regulations govern the management of vegetation around power lines and stipulate the minimum clearance distances which must be maintained between trees and power lines. City of Boroondara Electricity Safety Regulations Page 2 of 22

3 Under the Electricity Safety Act 1998 the two main parties responsible for managing trees around power lines ( responsible persons ) are the electricity distribution businesses (DBs) and councils. The City of Boroondara is responsible for maintaining the prescribed vegetation clearances for all trees growing on Council managed land including street trees. Council does this through the development of an Electric Line Clearance Management Plan and by undertaking regular programmed and responsive tree inspection, maintenance and pruning programs. The current 2010 Electricity Safety (Electric Line Clearance) Regulations replaced the 2005 Electricity Safety (Electric Line Clearance) Regulations. The 2010 Regulations contained changes which were legislated in the wake of the Victorian bushfires of 2009 and included significant increases in clearance distances for trees. They did not support exemptions for structural tree branches to be retained within the clearance space nor a requirement to prune trees to Australian Standard AS , Pruning of amenity trees, which is the industry standard. It was identified that the 2010 Regulations posed a significant threat to urban trees across Victoria. Following the introduction of the 2010 Regulations, the City of Boroondara has worked closely with the Municipal Association of Victoria (MAV) and other metropolitan Councils to develop a risk management approach to managing vegetation in the vicinity of power lines and has advocated for a review of the Regulations which would ensure the maintenance of electrical safety while protecting the amenity of Council s significant and highly valued tree resource. In November 2014, ESV released the draft Electricity Safety (Electric Line Clearance) Regulations 2015 (the draft Regulations), along with associated Regulatory Impact Statement (RIS). Submissions to this material were required by 13 January Outline of key issues/options Council officers reviewed the RIS and the draft Regulations which incorporate the Code of Practice for Electrical Line Clearance. In addition to our own analysis, officers worked in consultation with the MAV and member Councils of the Inner South Metropolitan Mayors Forum (ISMMF). While acknowledging some improvements have been made, officers consider that the draft Regulations do not adequately address key concerns regarding the previous Regulations and a literal interpretation of the Regulations may result in excessive pruning or removal of street trees. There are also significant concerns regarding the likely costs of engineering solutions which may be utilised to comply with the Regulations where tree pruning or tree removal is impractical or undesirable. A submission was developed by Council officers and lodged in response to the draft Regulations. This is included as Attachment 1. Due to the timing of the consultation period available for comment it was not possible to present the submission to Council prior to the closing date. The introduction to the submission noted that it had been developed by Council officers and would be presented to Council for formal endorsement in early City of Boroondara Electricity Safety Regulations Page 3 of 22

4 The City of Boroondara submission acknowledges the positive changes contained in the draft Regulations and expresses concern that the current framework provides very little explicit acknowledgement of the substantial value and benefits provided by street trees to the community and the environment. It also raises concerns regarding specific elements of the draft Regulations and requests that amendments be made to some sections. Elements of the draft Regulations that officers consider will provide some benefits compared with the 2010 Regulations include: the proposed introduction of alternative compliance mechanism (ACM) provisions that have the potential to facilitate the use of innovative technical and engineering solutions for managing trees an expanded definition of insulated cable which if successfully implemented presents a significant opportunity to reduce clearance distances and limit the extent of pruning required improved pruning practices resulting from the adoption of AS , Pruning of Amenity Trees enhanced notification and consultation requirements. Some of the specific concerns regarding elements of the RIS and draft Regulations include: underrepresentation of Local Government on the Electric Line Clearance Consultative Committee (ELCCC) concerns regarding the accuracy and reliability of the empirical data provided by DBs regarding fire starts and electrical outages used to advise the RIS concerns that the draft Regulations do not require sufficient contribution and cooperation from the DBs to enable Council to comply with its obligations especially considering the current access difficulties and high costs which Council is experiencing, and a request that the DBs be required to: o provide cost effective, approved alternative compliance mechanisms o provide a detailed response and costing in a timely manner to any request for alternative engineering solutions concern that the RIS provides very little explicit acknowledgement of the substantial value and benefits of street trees on which to base a balanced approach to lines clearance in urban areas concerns regarding the scope and application of flexibility provisions for insulated power lines and exceptions to minimum clearances for uninsulated low voltage power lines. 5. Consultation/communication Council officers attended information sessions and provided feedback to ESV in advance of the draft Regulations being issued. Council officers have also worked closely with the MAV and neighbouring Councils regarding the impacts and proposed amendments to the draft Regulations. City of Boroondara Electricity Safety Regulations Page 4 of 22

5 6. Financial and resource implications The Boroondara submission was developed by Council officers without any external costs. Strict adherence to the draft Regulations could have significant budget implications for Council, as it also would for many other Victorian Councils. Potential costs include engineering solutions such as Aerial Bundled Cabling in order to reduce required clearance distances so as to retain structural branches Should the application of engineering solutions be impractical Council could also face extra costs associated with removal or significant pruning of trees including substantial costs for the DBs to shut down electric lines in order for contractors to undertake works. 7. Governance issues This report does not impact on the protected rights or freedoms in the Victorian Human Rights Charter. There are no direct or indirect conflicts of interest that are required to be declared. 8. Social and environmental issues Street trees have a positive effect on the health and well-being of our community through their aesthetic and environmental benefits. Any excessive pruning or removal of street trees could have a negative social and environmental impact on our community. 9. Conclusion Council s submission acknowledges some improvements and highlights areas of concern in relation to the draft Regulations and RIS. It proposes changes to the draft Regulations aimed at maintaining electrical safety whilst preserving the amenity provided by the City s street trees. Manager: Report officer: Mark Dornau, Parks and Gardens Sarah Priestley, Coordinator Arboriculture City of Boroondara Electricity Safety Regulations Page 5 of 22

6 Attachment 1 Electricity Safety (Electric Line Clearance) Regulations 2015 Regulatory Impact Statement City Of Boroondara Submission January 2015 City of Boroondara Electricity Safety Regulations Page 6 of 22

7 Table of contents 1 Executive summary Introduction About Boroondara Regulatory Impact Statement (RIS) Development of the Regulatory Impact Statement The Regulatory Impact Statement The Distribution Businesses Timeliness and accuracy of response Quotations and estimates for works Protection of all relevant assets Dispute Resolution The Draft Electricity Safety (Electric Line Clearance) Regulations Amended method of specifying minimum clearance distances Provision of alternative compliance mechanisms and exceptions to minimum clearance spaces Expanded definition of `insulated cable Adoption of the Australian Standard for the pruning of amenity trees Enhanced notification and consultation requirements Duty of Distribution Businesses to assist councils Reintroduction of flexibility provisions for insulated powerlines Introduction of an exception to maintain minimum clearance distances around uninsulated low voltage powerlines in low bushfire risk areas Near the pole provisions Trees listed in a planning scheme to be of ecological, historical or aesthetic significance City of Boroondara Electricity Safety Regulations Page 7 of 22 2

8 1 Executive summary The City of Boroondara (Council) has reviewed the Regulatory Impact Statement (RIS) and the proposed Electricity Safety (Electric Line Clearance) Regulations 2015 (draft regulations) which incorporates the Code of Practice for Electrical Line Clearance. This review identified changes within the draft regulations that enable a better balance between the continuous supply of electricity, the safety of our community and the protection and preservation of the amenity of tens of thousands of street trees. This is to be commended. Deficiencies within the RIS have been highlighted that concern Council in its role as a Responsible Person and custodian of the street trees for the Boroondara community. These include the lack of acknowledgement of the value and benefits of street trees to Greater Melbourne and Victorian liveability, the cost of compliance to councils and their communities and the significant loss of established trees if councils had complied with the previous 2010 regulations. The RIS claims significant improvements in relation to fire start and outage frequencies, in spite of recognised non-compliance in urban trees. Council contends that it would be more efficient and effective to draft regulations that reflect the current practice in urban areas to build on the identified improvements in fire start and outage frequencies. If the draft regulations are passed in their current form compliance will still require a significant loss of established trees across Melbourne. This is not something that local communities will tolerate, nor a situation which is supported by reliable and accurate data. Council considers that the regulations do not demand sufficient support and cooperation from the distribution businesses to enable Council to comply with its obligations. To achieve compliance Council needs the distribution businesses to work with it in a timely, transparent and accountable manner. Past experience offers that this level of cooperation is not present in their operational procedures or business models and that their processes do not recognise or consider Council s assets. Council therefore considers it reasonable that the regulations should place requirements on distribution businesses that will assist Council in meeting its obligations regarding compliance, in a manner that does not conflict with our obligations to the Boroondara community. The draft regulations introduce a number of clauses that Council supports fully, such as the introduction of the mandatory use of Australian Standard for Pruning of Amenity Trees and the introduction of a linear graph to define the required minimum clearance space for different powerline span lengths. However, there are a number of changes that will be difficult for Council to utilise in their current form and will require cooperation from the distribution businesses which has not previously been present. There are also changes that are not practical for urban areas at all, such as the introduction of minimised clearances for structural branches greater than 400mm in diameter. Council acknowledges and appreciates the effort that has been put into developing these regulations, and now requests that the issues and recommendations raised in our submission inform amendments to the draft regulations as they stand now. City of Boroondara Electricity Safety Regulations Page 8 of 22 3

9 2 Introduction The City of Boroondara (Council) welcomes the opportunity to provide feedback on the Regulatory Impact Statement and for the proposed Electricity Safety (Electric Line Clearance) Regulations 2015 which incorporate the Code of Practice for Electrical Line Clearance. We consider that the 2015 draft regulations are heading in the right direction in terms of achieving a better balance between the continuous supply of electricity, the safety of our community and the protection and preservation of the amenity of tens of thousands of street trees. There are a number of practical issues with regard to the management and implementation of the regulations that need to be carefully managed into the future. A positive working relationship between the Distribution Businesses (DBs) and all councils is essential for the regulations to be successfully implemented and this needs to be developed and managed in partnership with Energy Safe Victoria. Since the introduction of the 2010 Electricity Safety (Electric Line Clearance) Regulations, Council has been advocating for a line clearance regime that better balances safety, amenity and environmental considerations. In doing so, Council has encountered a lack of acknowledgement and acceptance in the line clearance regime of the very real value and benefits of street trees. Just as the electricity network infrastructure is the DBs asset, so too are street trees council and community assets. This lack of acceptance of the value of trees as a community asset has resulted in Council facing the significant challenge of reconciling a regulatory framework that requires the substantial pruning, or removal of well established, high value street trees to meet minimum clearance distances and communities that simply will not tolerate the scale of pruning needed to be compliant. These challenges are amplified as past practice accepted by the relevant authorities has been to allow structural branches of 130mm diameter or more to grow within close proximity of low voltage cable in recognition of the low risk this presents. There is no data available regarding safety or power supply being impacted by street trees which would substantiate the need for such drastic and extreme pruning requirements and, in addition to this, affordable and approved engineering and technical solutions have not been available to Council as an alternative method to achieve compliance. To achieve an outcome that will protect both street tree and electrical assets for the community the process and ongoing dialogue around line clearance needs to be changed - moving away from the immovable mentality of keeping trees away from powerlines, to working out how to protect and enhance our tree-lined streets while also achieving a safe and secure supply of electricity. Council Officers have been involved in the development of two other submissions, by the Municipal Association of Victoria (MAV) and the Inner South Metro Mayors Forum (ISMMF). We support these submissions and parts and extracts from these other documents have been drawn on and included in this submission as relevant. We have also included additional information and examples directly relevant to Boroondara. This submission has been developed by Council Officers and will be presented to Council for formal endorsement in early City of Boroondara Electricity Safety Regulations Page 9 of 22 4

10 3 About Boroondara The City of Boroondara is an inner urban metropolitan council, representing more than 165,000 people in the inner-eastern suburbs of Melbourne. It has an area of 60km² and more than 65,000 street trees, of which approximately 30,000 are in close proximity to power lines. Boroondara was rated ninth of 590 Australian local government areas in the BankWest Quality of Life Index 2008 and first in the 2013 and 2014 Victoria-wide community satisfaction surveys. A defining feature of the City of Boroondara is its significant number of avenues of mature street trees, many of which are decades old, of historical significance and of immeasurable value to the local community. Trees on public land provide essential amenity, health and biodiversity benefits, particularly in the densely developed urban landscape of this region. Communities in this municipality highly value street trees and are strongly committed to their ongoing protection and preservation. The City of Boroondara, 2010 Tree Policy highlights this by stating the following: The City of Boroondara is renowned for the rich diversity and maturity of trees found within its streetscapes, parkland and private gardens. Tree lined avenues, mature exotic gardens and specimen trees are all present throughout the city. The value of trees within an urban environment is widely accepted as high, due to their positive contribution towards maintaining a city s sustainability and to community health and serenity. Collectively, trees add beauty to our urban landscapes by softening the harsh lines of buildings, complimenting architecture, screening unsightly views and providing privacy and a sense of security and place. Trees absorb air pollutants, release oxygen and sequester carbon dioxide. They reduce stormwater runoff and erosion, ameliorate climate, can save energy, provide wildlife habitat and strengthen a sense of community within a given area. Issues relating to tree management have a high profile and can generate considerable public debate and passion and as a consequence, planning is required in order to facilitate effective tree management. The Council Plan further reinforces the values and expectations of the Boroondara community through the following major themes and their strategic objectives Theme Sustainable Environment Enhanced Amenity Quality Facilities & Assets Responsible Management Strategic Objective Our natural and urban environment is improved in a sustainable way. The character of our neighbourhoods is protected and improved. The community s current and future needs for assets and facilities are proactively managed. Decision-making in the delivery of high quality services by capable and professional people reflect transparent, accountable and fair practices. These two documents (Tree Policy and Council Plan) clearly demonstrate the importance, benefits and expectations that the Boroondara community places on its street tree population and Council s role in managing them for current and future generations. It is in this context that we make our submission. City of Boroondara Electricity Safety Regulations Page 10 of 22 5

11 4 Regulatory Impact Statement (RIS) 4.1 Development of the Regulatory Impact Statement We understand that Energy Safe Victoria (ESV) is advised on the preparation and maintenance of the Code of Practice for Electric line Clearance in relation to vegetation by the Electric Line Clearance Consultative Committee (ELCCC). This committee is comprised of thirteen persons appointed by the Minister under Section 87 of the Electricity Safety Act 1998 (the Act). We believe that Local Government is under represented on this committee. Victoria has 79 Local Governments who collectively comprise one of the two Responsible Persons under the Act that have the largest population of vegetation to be responsible for, the other being the distribution and transmission businesses. Yet the distribution and transmission businesses comprise 30% of the committee with four representatives, while Local Government comprises 7% of the committee with just one representative. Given the substantial benefits this vegetation provides to Victoria s communities and the proportionate responsibility that Local Government has for line clearance Council seeks to have this imbalance in representation rectified with the addition of three Local Government representatives on the ELCCC. 4.2 The Regulatory Impact Statement Council is concerned that the Regulatory Impact Statement (RIS) provides very little explicit acknowledgement of the substantial value and benefits of street trees and contains line clearance requirements for urban environments that appear not to be based on any empirical evidence, particularly in relation to low voltage cables in low bushfire risk areas. Literal application of both the current and proposed Code of Practice for Electric Line Clearance would result in the decimation of the structure, health and amenity of thousands of street trees across the municipality and destroy the heritage and character of many localities. The RIS that accompanies the draft of the 2015 regulations relies heavily on data provided by the DBs. In the past Council has been presented with data from the DBs that attributes power outages to street trees where there has been no street tree present, or cause of outage has clearly originated in a privately owned tree. We are also aware of similar issues experienced by other councils. This calls into question the accuracy and reliability of the data used to advise the RIS and we are disappointed that there has been no discussion about the quality of the data. It is also concerning that the RIS focuses very much on costs to DBs. Councils also meet extensive costs as part of its role as responsible persons under the Act in ensuring the safe distribution of electricity across the state. These costs include the proactive and reactive pruning and removal of street trees and the use of engineering solutions to avoid pruning and removal. Similarly, the social and environmental costs to the community of tree pruning and removal are ignored. The RIS makes only limited reference to the environmental benefits of street trees and fails to acknowledge the social benefits at all. There is insufficient data available to properly assess the performance of a responsible person and the impacts of vegetation within the clearance space. In order to improve safety, amenity and environmental outcomes, there is a pressing need for systematic collection and review of available data that is specific and verifiable. City of Boroondara Electricity Safety Regulations Page 11 of 22 6

12 The Victorian Competition and Efficiency Commission s advice on the adequacy of the RIS notes that a more rigorous and evidence based evaluation of the data will be required in the next RIS in order for that analysis to be assessed as adequate. Council would appreciate the opportunity to work with ESV in developing appropriate measures to determine the effectiveness of the Code. This would enable Council to assure its community that the data evaluation had been conducted with due diligence and considered the impact of non-compliant trees in a transparent and accountable manner. The RIS for the 2015 regulations states that significant improvements in relation to fire start and outage frequencies have been achieved under the 2010 regulations. This has occurred even though ESV has advised that a substantial number of trees in declared areas are not compliant with the regulations. In light of this it would appear that councils current practices have not led to an increase in fire starts and outages and may even have contributed to a decrease. On this basis, it would seem that it may be more efficient and effective to draft regulations that reflect the current practice in urban areas. City of Boroondara Electricity Safety Regulations Page 12 of 22 7

13 5 The Distribution Businesses Council considers that the regulations do not require sufficient contribution and cooperation from the DBs to enable Council to comply with its obligations. In order for councils to meet their compliance obligations with the 2015 regulations, cooperation from the DBs will be critical. Where such cooperation is not forthcoming, it is essential that the regulations provide a framework that will ensure transparency, accountability and a fair and robust dispute resolution process Timeliness and accuracy of response Council has had, and continues to have, unacceptable difficulties with receiving responses to requests for shutdowns of powerlines, alternative engineering solutions or data on outages allegedly caused by council trees. This lack of response by the DBs prevents Council from doing what the regulations require it to do as a responsible person. A recent example of this was when Council received an from a distribution business that stated the network had recently experienced a significant outage caused by Council trees. The distribution business stated Council had been informed of the trees by the distribution business in December 2013 and Council had advised that the trees would be actioned. Further investigation by the distribution business of the cause of the outage had found that the trees were still noncompliant and the asked what Council intended to do about these trees. In this instance Council s contractors had submitted a request, on Council s behalf, for suppression or shutdown following the initial contact in 2013, however the requested shutdown was not granted until 31 October In the course of the vegetation removal an incident occurred that required the works to be halted and resumed another day. Council requested a second shutdown to complete these works, and as of 24 December 2014 this shutdown had not been actioned. Up until this date Council had not received any notification of the outage referred to in the , and a request for further information on 18 December 2014 had not been responded to. The primary issue in this case is the delay in response to a request for a shutdown. We have also experienced delays in requests for assistance with other engineering solutions and associated quotes. A further issue is the lack of notification of an outage where it is alleged that a Council tree was involved. Rather than being proactively notified, Council is generally only accused. As the DBs have informed us themselves, their data collection on outages caused by vegetation does not differentiate between private and Council owned trees. Furthermore, it is not determined whether the tree was compliant with the regulated clearances or not and can even include outages caused by wildlife, such as possums, as there is no specific category for wildlife. This further calls into question the reliability of the data provided by the DBs to inform the RIS. Council requests that: a reasonable process and timeframe that recognises and responds to requests for shutdowns or engineering solutions be defined in the regulations, or alternately, be required in their Electric Line Clearance Management Plan (for example, this might be 10 business days). City of Boroondara Electricity Safety Regulations Page 13 of 22 8

14 a requirement be included in regulations that the DBs report any outages that it considers are caused by a Council tree to the relevant Council within two business days of the outage occurring. This report should include the date and time of the incident and the location of the tree in the street. 5.2 Quotations and estimates for works Where Council has sought quotes for engineering solutions as an alternative to pruning and removing trees, there has been significant difficulty obtaining timely and accurate information from the DBs and costs have varied markedly from one DB to another. There is a notable lack of transparency about how the DBs identify and determine their costs. Experience offers that it is also not possible to obtain a firm quote from these businesses. What they will provide is a budget estimate, which often contains a disclaimer that it does not cover all costs or might vary by up to 40%, and requires a non-refundable contribution if Council wants a firm offer of works. The budget estimates and non-refundable fee to provide a firm quote are often excessive and do not seem to reflect the scope of the works. Furthermore, significant portions of the prices quoted are not contestable, thereby preventing councils from seeking cost effective alternatives. Examples of this quoting practice include two quotes for separate jobs, provided by two different DBs. DB 1 A request for a quote to convert two spans of Low Voltage (LV) to Aerial Bundled Cable (ABC) was submitted to the distribution business. In August 2013 Council received a budget estimate for the works. The budget estimate was for the conversion of two spans of LV to ABC and required a $30,000 non-refundable payment to be made before a firm quote would be provided. However the estimate did not clarify what the expected final cost might be and included the statement that the estimate is approximate and is for budgetary purposes only; it should not be taken to commit DB 1 in any way. DB 2 A budget offer was also received from DB 2 in December This offer was to convert a span of LV to ABC and did include a budget estimate of $20,000, with a non-refundable payment of $8,646 to be made to cover the detailed scoping and design, soil analysis and road management approvals. A firm quote would be provided after this scoping work had been done. This budget estimate also included the statement that the cost and scope of our works in our firm offer are subject to vary from the budget estimate as a result of the investigations undertaken. Council is happy to provide ESV with copies of these documents upon request. Without any transparency in determining the design or implementation of works it is difficult to see how the cost of converting two spans starts at $30,000 and the cost of a single span starts at $20,000. City of Boroondara Electricity Safety Regulations Page 14 of 22 9

15 Further, for Council to pay either amount to obtain a quote, which may end up being considerably higher than expected, is not acting in the best interest of our community or in accordance with Council procurement and legislative best value requirements. Council currently contracts its power line clearance works to a company that employs appropriately qualified live line staff. This company has held and currently holds contracts for live line works with other DBs around Victoria. However, Council and its contractor has been informed that the DBs will not approve suppression for any contractor that is working for Council, instead the DBs require Council to use the DBs own approved live line workers. Apart from the questions this raises around inappropriate market power, this has also led to councils being presented with what appear to be exorbitant and inconsistent quotes and lengthy time delays to secure these workers services. It is reasonable to expect that any quotes for engineering solution, live line and shut down works are detailed, transparent and accurately reflect the scope of works. Our community, which funds Council expenditure through rates, would also have this expectation. Council recognises that a mechanism (deed) was presented to it in 2014 by one of the DB s to provide the opportunity for its key tree pruning contractor to offer live line pruning services near powerlines. However, the conditions associated within the document in its current form have been assessed as too onerous on Council. Council continues to assess and consider its options with regard to this deed and is committed to working with the DB to find consensus. Section 12 of the RIS discusses compliance with the National Competition Policy and finds that the proposed regulations do not limit competition and are therefore compliant. This may be true of the regulations themselves; however as the examples above show, issues arise in practice. The OECD Competition Assessment Toolkit asks the following questions: Does the proposed regulation limit the number or range of suppliers? Does the proposed regulation limit the ability of suppliers to compete? Does the proposed regulation limit the incentives for suppliers to compete vigorously? Does the proposal limit the choices and information available to customers? The regulations themselves do not ensure these questions are considered or addressed. Precedent and experience in particular offer that: Council does not have a range of suppliers available to seek quotes for engineering solutions or live line works. The DBs will not provide a firm quote for works until Councils pay a non-refundable deposit to them. Where alternative options exist the distribution businesses refuse to allow these people access to the network. Where Council seeks alternative quotes to assist in evaluating the DBs quotes, alternative suppliers are not willing to provide quotes as they are aware that they cannot be awarded the works. City of Boroondara Electricity Safety Regulations Page 15 of 22 10

16 The lack of proper process, transparency, accountability and competition means that Council does not have any certainty regarding the true cost of works. Council requests that the regulations require that the DBs: Be transparent and accountable in providing information and quotes on engineering solutions, shutdowns, live line works and other associated works required to achieve compliance and protect their asset. Ensure their business practices including supply arrangements comply fully with NCP requirements 5.3 Protection of all relevant assets In light of the environmental, health, financial and amenity benefits that trees provide our communities it is concerning that the regulations do not recognise the value and importance of street trees. This lack of acknowledgement is then reflected in the business methods adopted by the DBs. There should be an obligation on the DBs to invest in powerline construction that minimises impact on environment and amenity. Council has experienced incidences where the DB have refused to discuss the possibility of using an alternative to the traditional utility supply in an urban area that minimises the need for pruning. An example of such a situation occurred when a DB approached Council officers in 2014 to advise that they needed to upgrade the load capabilities to a section of ABC line in a local residential street. Officers were informed at the time that the existing ABC cable would be removed and replaced with open wire conductor, which was uninsulated and would require greater clearances than already existed. An inspection confirmed that to achieve these clearances one tree would need to be removed and three more trees would be significantly impacted with more than 30% of the canopy removed to achieve the clearances required. Council objected and was initially told this was the only solution. After persistence by Council, the issue was escalated and other options were discussed, along with the outcomes for Council s trees. An alternative solution was developed that involved installing an additional ABC line. This still required additional pruning, however the clearance requirements were reduced due to the lines being insulated. There are now ABC spans where there was previously one this is a better outcome than reinstalling uninsulated wires, but still a poorer outcome than the original single ABC that already existed. It also took persistence and negotiating to have the DB even consider an alternative solution. Council requests that the regulations should: require the DBs to install insulated lines when replacing or upgrading un-insulated lines. state that no engineering solution should require greater tree clearance than the existing one unless extensive consultation has been undertaken and agreement reached with the owner of the tree. City of Boroondara Electricity Safety Regulations Page 16 of 22 11

17 include the objective to ensure that management procedures minimise the effect of power lines on vegetation and establish strategies to progressively achieve a sustainable environment unaffected by the presence of power lines. that was previously included in the 1996 Code of Practice for Powerline Clearance. 5.4 Dispute Resolution With regard to clause 18 (2) of the draft Code which requires a responsible person to establish a procedure to be followed for the independent resolution of disputes relating to electric line clearance, Council believes that this clause should be clarified to include the resolution of disputes with councils in relation to the transparent, reasonable and timely: Installation of technical solutions; Provision of realistic and market tested cost estimates for technical solutions; and Responses to requests for shutdowns to enable work near power lines. Council also believes that the 2015 regulations need to clarify the circumstances and parameters within which Energy Safe Victoria will intervene in ongoing disputes between DB and councils. City of Boroondara Electricity Safety Regulations Page 17 of 22 12

18 6 The Draft Electricity Safety (Electric Line Clearance) Regulations 2015 Specific comments in relation to details of the proposed regulations are included below, essentially following the structure of the RIS. We would also like to note that we agree with ESV s decision not to introduce provisions into the regulations relating to unsuitable species and tree climability. 6.1 Amended method of specifying minimum clearance distances The proposed 2015 regulations introduce a linear relationship between powerline span length and the required minimum clearance space. Council supports this use of linear graphs because they eliminate the existing step changes between different span lengths, whereby a marginal increase in span length arbitrarily leads to a significant increase in the minimum required clearance space. It is believed the overall impact for Council will be a reduction in the minimum clearance distances required for a number of span lengths for which Council has line clearance responsibilities. 6.2 Provision of alternative compliance mechanisms and exceptions to minimum clearance spaces Council supports the proposed introduction of the alternative compliance mechanism (ACM) provisions in that they have the potential to facilitate the use of innovative technical and engineering solutions for managing trees. However, we are concerned that this provision will be difficult to actually utilise in practice, due to: the requirement to provide detailed, published technical information in order to have an alternative compliance mechanism approved. Council does not currently employ anyone with the technical expertise to obtain and interpret this information. the requirement to obtain written agreement from the DBs. Past experience indicates this is a solution that will not be readily forthcoming. Furthermore, it is unclear what requirements and conditions ESV will place on authorities in relation to the installation, monitoring and maintenance of the ACM and whether these will make the use of the ACM prohibitively expensive. It is our request that the provision is used by DBs when engineering solutions are identified that enable mature trees and powerlines to remain in close proximity with minimal risk. Council requests that the regulations include a more definitive process clearly defining the roles and responsibilities should be provided for responsible persons and DBs to ensure the intent of the clause is achieved. In particular, the ability should exist for either party to ask for an independent authority or body to consider matters of dispute between the parties. City of Boroondara Electricity Safety Regulations Page 18 of 22 13

19 6.3 Expanded definition of insulated cable Council supports the proposed definition of insulated cable, which captures cables fitted with insulating cover. Insulating cover is relatively low-cost and easy to apply and has the effect of insulating sections of bare powerlines thereby reducing the minimum clearance space required for those sections of the wire. It is a far more cost-effective and simple engineering solution to install than aerial bundled cabling and undergrounding. If successfully implemented, this change presents a significant opportunity to reduce clearance distances and limit the extent of pruning required. In practice the successful application of insulating cover to uninsulated power lines will depend on consideration, cooperation and agreement from the DBs. Based on past experience with DBs, Council considers it unlikely that the potential benefit of this proposed change will be realised due to the unwillingness of DBs to agree to install these extremely effective and low cost cable covers, which meet the revised definition of insulated cable under this provision. Previous applications for installation within Council have not been approved by the DBs; in fact the only engineering solution offered has been to convert the lines to Aerial Bundled Cable (ABC) at a significantly higher cost to Council. An example of this occurred recently where the request for an insulating cover was submitted to the DB with ESV acting as an intermediary for Council. The request was refused and a budget estimate of $30,000 (non-refundable) was provided to Council by the distribution business with regard to converting the lines to ABC. This was not the final quote for works and the cost could increase substantially if accepted. 6.4 Adoption of the Australian Standard for the pruning of amenity trees Council supports mandatory adoption of the Australian Standard for Pruning of Amenity Trees (AS ). It is noted that the 1996 Code of Practice stated that it was essential that pruning be done in accordance with recognised industry standards. Council already requires all vegetation management staff and contractors to prune in accordance with the Standard as a matter of course. This is to ensure the pruning does not result in structural damage or inappropriate growth habits, enabling the retention of the tree and its amenity in a safe and sustainable manner. In the past Council has received numerous complaints from residents who have been deeply distressed by the quality of pruning of their privately owned trees, in these situations Council has referred the resident to the appropriate DB and advocated on their behalf, however feedback indicates there has been little change in the performance of the works conducted. Application of a penalty for non-compliance would assist in achieving a better outcome for the entire community. Council requests that the regulations include: A penalty for failing to prune in accordance with the Pruning of Amenity Trees Australian Standard where it is practicable. City of Boroondara Electricity Safety Regulations Page 19 of 22 14

20 6.5 Enhanced notification and consultation requirements Council supports the enhanced notification and consultation requirements included in the draft 2015 regulations. Council already adopts high levels of notification and consultation with our residents and affected parties in relation to line clearance works undertaken. Unfortunately, this level of communication is not adopted by the DB and Council is regularly fielding complaints from residents about the standard of pruning, the failure of the distribution business to properly inform affected persons of the intended scale and extent of their pruning and the tardiness in removing tree debris, often left for up to a week, creating a safety hazard. Council also notes that Clause 16 (3) only defines who the responsible person must consult with and not how. Council requests that the regulations include: A defined consultation process; or A requirement to provide a defined consultation process in the DB Electric Line Clearance Management Plan. There also appears to be a blanket use of the word consult in Clause 16 of the regulations. Council utilises the iap2 public participation spectrum with regard to all public communication and engagement. The iap2 spectrum defines the Public Participation Goal of consult as: To obtain public feedback on analysis, alternatives and/or decisions. Based on the specific clause offered in the draft regulations, and the roles and responsibilities of a responsible person, it is considered that the term inform may be a better use of the correct terminology with regard to public communication and engagement in these circumstances. The iap2 spectrum defines the Public Participation Goal of inform as: To provide the public with balanced and objective information to assist them in understanding the problems, alternatives, opportunities and/or solutions. 6.6 Duty of Distribution Businesses to assist councils Council supports the proposed introduction of clauses in the draft Code requiring DBs to assist councils when requested. The scope of the requirement in the draft Code relates only to assisting councils in response to concerns about the safety of cutting or removal of a tree for which it has clearance responsibilities. Council has experienced considerable frustration with DBs failing to work positively and cooperatively with their local government counterparts in the electric line clearance system. Improving the capacity and willingness of DBs to work fairly and cooperatively with councils in a timely manner is critical to improving any outcomes in relation to electric line clearance in Victoria. Council requests that clause 19 of the draft Code should be expanded to create a broader obligation on DBs to work cooperatively with councils in regard to: City of Boroondara Electricity Safety Regulations Page 20 of 22 15