AUTUmN/WiNTER 2010 ISSUE 20 (PDF) - Energy Safe Victoria

Victorian Bushfires RoyalCommission – observations andrecommendations relating to ESV8www.energysafe.vic.gov.auIn late March a number of oral andwritten submissions were made to theBushfires Royal Commission by CounselAssisting and counsel for the State,distribution businesses and others.There was widespread reporting of theobservations and recommendations inrelation to ESV.The following statement by Director ofEnergy Safety, Paul Fearon, was releasedshortly afterwards and placed on theESV website.I can assure all ESV stakeholders, including theelectricity industry and the general community,that ESV has worked closely with the State toensure that a balanced and informed set ofviews and recommendations have been put tothe Commissioners for their consideration.The State’s submission is publicly available onthe Bushfires Royal Commission website atwww.royalcommission.vic.gov.au. It providesa detailed response and alternative set ofrecommendations to that of CounselAssisting’s oral and written submissiondelivered on 26 March.Ultimately it will be for the Royal Commissionto determine its own view and recommendationsto the Government on what sort of regulatoryregime should exist in Victoria. This will bedone in its final report due around the middleof this year.I have told ESV staff that the observationsexpressed in the Royal Commission are notpersonal to ESV individuals or this organisationbut reflect the various perspectives and tensionsin this very important “public policy” debatearound the regulatory regime that was orshould be in place in Victoria.I can say that ESV retains the confidence ofthe Minister for Energy and Resources andthe State Government. This confidence is welldocumented in the Government’s submissionand I will quote relevant parts from it.Briefly the Government has already committedto a number of initiatives, including legislativechange (some of which was identified priorto the devastating “Black Saturday” bushfiresof 7 February 2009) and enhanced fundingthat will put ESV in a stronger position to playits part.As stated in its submission, the State intendsto introduce a Bill to Parliament which seeksto amend legislation, including the ElectricitySafety Act 1998, the Energy Safe Victoria Act2005 and the National Electricity (Victoria) Act2005 to:> > Increase penalties for failing to submit bushfiremitigation plans (BMPs);> > Require compliance with approved BMPs,with penalties for non-compliance;> > Explicitly require bushfire risks associatedwith the management of electricity distributionand transmission assets to be minimised;> > Clarify ESV’s powers in respect of audits;> > Require electricity distribution andtransmission companies to prepare theirBMPs as part of their Electricity SafetyManagement Schemes (ESMSs) and thereforeprovide a more comprehensive frameworkto the risk management approach tobushfire mitigation;> > Extend the power of ESV to enable it to directthat vegetation be removed or to stop theplanting of unsuitable vegetation under ornear powerlines;> > Make ESV a statutory member of the ElectricLine Clearance Consultative Committee;> > Introduce measures to provide for additionaltransparency of BMPs by requiring distributionbusinesses to publish these plans on theirwebsites and by requiring ESV to undertakecomparative reporting of the electricitycompanies’ safety regimes and performance;> > Introduce a financial incentive scheme toencourage improvements in the managementof electricity assets which will reduce thenumber of fires started by electricity assets;> > enhance ESV’s governance arrangements,including by:a) requiring ESV to prepare a charter ofconsultation and regulatory practice andrequiring ESV to enter into memorandaof understanding with specified bodies;b) ensuring the independence of the Directorof ESV by amending the provisionsregarding the removal of the Director ofESV from office.The submission continues: “The State plansto increase the powers available to ESV andenhance its capability and capacity to regulatethe electricity industry by additional recruitment,additional funding and the establishment ofa high-level advisory panel from which ESVcan draw expert knowledge.“As a result, ESV will have an enhanced abilityto assess, monitor and enforce compliance withelectricity companies’ ESMSs and BMPs.“Through ESV and in collaboration withelectricity distributors, the State intends todevelop options to reduce the risk of bushfiresbeing started from electricity assets. Theeffectiveness and cost of those options willbe subject to analysis, trial and communityconsultation to inform final decisions on howto reduce bushfire risk.”The Government submission also recommendsthat the State through ESV and in collaborationwith the electricity distributors:Paul Fearon.> > Devise means to reduce the risk of bushfiresbeing started by electricity assets, includingthrough the use of undergrounding, coveredconductor, ABC, multi-phase lines, remotearea power supply and current and emergingmethods of fault detection and fault levelreduction; and> > Consult the Victorian community on the costsand benefits of those options prior to theadoption of new risk reduction strategies inBushfire Mitigation Plans.The submission continues: “It is accepted thatthe current legislative regime does not providefor a penalty where a distribution businessdoes not have an approved BMP in place forthe bushfire season or where a BMP is notcomplied with. The only current penalty is forfailing to submit a BMP for approval by ESV.It is further accepted that this situationwarrants consideration.“Consistent with the proposed legislativereforms and the increased powers andresources of ESV, the State accepts that ESVshould and will play a greater role in ensuringthat the distribution businesses have a BMPin place which is adequate to minimise bushfirerisk as far as is practicable.”The submission also said that the State hadalready taken steps to further develop andimprove ESV’s technical expertise.Finally let me say that every agency, individualand business needs to reflect on the lessonsof Black Saturday and on what more canbe done to avoid or mitigate the devastationof the bushfires of February 2009.As far as the electricity industry in general isconcerned, it is gratifying to note the statementby Counsel Assisting, Mr Jack Rush QC, thatwhilst more must be done “great endeavour”has gone into the management of the electricityindustry in Victoria.I have told ESV staff that they should continueto feel proud working for an organisation thathas a record of achievement – one that willcontinue to grow in stature as a respectedregulator of safety in Victoria.Paul Fearon