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Electricity Safety Amendment (Bushfire
Mitigation Civil Penalties Scheme)
Bill 2017
Introduction Print
EXPLANATORY MEMORANDUM
Clause Notes
Clause 1 sets out the main purpose of the Bill, which is to amend the
Electricity Safety Act 1998 to impose additional bushfire
mitigation requirements on major electricity companies, to
enable the enforcement of those requirements through a civil
penalty enforcement regime, and to provide for information
notices and other matters.
Clause 2 provides for the commencement of the Bill. The Bill will
come into operation on a day or days to be proclaimed, or on
1 September 2017 if not proclaimed earlier.
Clause 3 provides for the Electricity Safety Act 1998 to be called the
Principal Act in this Bill.
Clause 4 inserts new Part 10A into the Electricity Safety Act 1998.
New Part 10A provides for additional bushfire mitigation
requirements for major electricity companies. A definition of
major electricity company is provided in section 3 of the
Electricity Safety Act 1998.
New section 120K of new Part 10A sets out definitions for the
purposes of new Part 10A.
New section 120L of new Part 10A provides for the meaning
of complying substation for the purposes of new Part 10A.
This definition is relevant to new section 120M, which requires
major electricity companies to ensure that a sufficient number of
581228 1 BILL LA INTRODUCTION 7/2/2017
zone substations in its supply network are complying substations
so as to meet the prescribed number of allocated substation points
for three separate periods. A zone substation is a complying
substation if every polyphase electric line that originates from
the substation has the required capacity. Definitions of zone
substation, polyphase electric line, allocated substation point
and required capacity are provided in new section 120K.
New section 120M of new Part 10A provides for a new
obligation for major electricity companies, which is to ensure
that a sufficient number of zone substations in its supply network
are complying substations so as to meet the prescribed number of
allocated substation points for three separate periods.
The prescribed number of allocated substation points will accrue
in respect of a zone substation, when that zone substation is a
complying substation. The regulations could prescribe a single
point or multiple points for a zone substation.
As per new section 120L, a zone substation is a complying
substation if every polyphase electric line that originates from
the substation has the required capacity.
The required capacity is defined in new section 120K to mean
the prescribed capacity in relation to a polyphase electric line in
the event of a phase to ground fault. The prescribed capacity
could, for example, be for the polyphase electric line to achieve a
specified voltage or amperage reduction within a specified time
in the event of a phase to ground fault.
The three periods, and the points required to be met for each
period, are set out in new section 120M(1)(a)-(c).
• For the period from 1 May 2019 until 30 April 2021,
or if Energy Safe Victoria specifies a later date
following consultation with the Minister under new
section 120X, until that date (the initial period), major
electricity companies must achieve not less than
30 allocated substation points.
• For the period from 1 May 2021 until 30 April 2023,
or if Energy Safe Victoria specifies a later date
following consultation with the Minister under new
section 120X, until that date (the intermediate period),
major electricity companies must achieve not less than
55 allocated substation points.
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• On and after 1 May 2023 (or if Energy Safe Victoria
specifies a later date following consultation with the
Minister under new section 120X, that date), major
electricity companies must ensure that all zone
substations in their supply network are complying
substations.
The allocated substation points must continue to be met for the
duration of the period.
New sections 120M(1)(a) and (b) do not apply to a major
electricity company that does not have a sufficient number of
zone substations in its supply network to meet the total number
of allocated substation points for those periods.
New section 120M(3) provides that, the pecuniary penalty for
contravening new section 120M is up to $2 000 000 for every
point that is the difference between the allocated substation
points that are met by complying substations and the points
required to be met for the relevant period, plus a daily penalty
of up to $5500 for each day that contravention continues after
service on the major electricity company by Energy Safe Victoria
of notice of that contravention.
New section 120M does not apply to a major electricity company
that is exempted from complying with new section 120M under
an Order made under new section 120W, where the major
electricity company complies with that Order (including by
complying with any conditions to the Order).
New section 120N of new Part 10A provides for new obligations
for major electricity companies, which are--
• to cover or place underground each new electric line
that meets the prescribed specification that it constructs
within an electric line construction area; and
• to cover or place underground each electric line
that meets the prescribed specification, and which is
reconstructed or substantially reconstructed within an
electric line construction area, and which is of at least
4 consecutive spans or has conductors on at least
4 consecutive spans.
New section 120N(5) provides for the meaning of cover in
relation to an electric line. To cover an electric line means to
install a system of insulation on a bare open wire in accordance
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with the relevant major electricity company's accepted bushfire
mitigation plan. Section 3 of the Electricity Safety Act 1998
provides a definition of accepted bushfire mitigation plan.
Electric line construction area is defined in new section 120K to
mean land delineated and shown on a prescribed plan.
The pecuniary penalty for contravening new section 120N(1)
or (2) is up to $350 000 for each kilometre or part of a kilometre
of an electric line that is not covered or placed underground,
plus a daily pecuniary penalty of up to $1000 for each day that
contravention continues after service on the major electricity
company by Energy Safe Victoria of notice of that contravention.
New section 120N does not apply to a major electricity company
that is exempted from complying with new section 120N under
an Order made under new section 120W, where the major
electricity company complies with that Order (including by
complying with any conditions to the Order).
New section 120O of new Part 10A provides for a new
obligation for major electricity companies, which is to install an
Automatic Circuit Recloser for each SWER line in its supply
network before 1 January 2021 (or if Energy Safe Victoria
specifies a later date following consultation with the Minister
under new section 120X, by that date).
Automatic Circuit Recloser is defined in new section 120K to
mean a device that is capable of performing certain functions in
relation to a SWER line. SWER line is defined to mean a single
wire earth return electric line.
The penalty for contravening new section 120O(1) is up to
$50 000 for each contravention, plus a daily penalty of up to
$150 for each day that contravention continues after service on
the major electricity company by Energy Safe Victoria of notice
of that contravention.
New section 120O does not apply to a major electricity company
that is exempted from complying with new section 120O under
an Order made under new section 120W, where the major
electricity company complies with that Order (including by
complying with any conditions to the Order).
New section 120P of new Part 10A requires a major electricity
company to give a written report to Energy Safe Victoria before
1 August each year, which includes certain information.
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A major electricity company's report under new section 120P
must--
• include details of work carried out, and plans for
future work, in respect of the obligations under new
sections 120M, 120N and 120O;
• include details of the location of each zone substation,
electric line and Automatic Circuit Recloser on which
works have been carried out;
• be in a form and include the information specified by
Energy Safe Victoria;
• be approved by the board of a major electricity
company; and
• be published by Energy Safe Victoria on its Internet
site.
The penalty for contravening new section 120P(1) is up to
$10 000 for each contravention, plus a daily penalty of up to
$1000 for each day that contravention continues after service on
the major electricity company by Energy Safe Victoria of notice
of that contravention.
New section 120Q of new Part 10A requires a major electricity
company to obtain, on the request of Energy Safe Victoria and at
the intervals determined by Energy Safe Victoria, an independent
audit of the major electricity company's compliance with new
sections 120M, 120N, 120O or 120P.
A major electricity company that is required to obtain an audit
under new section 120Q must establish to the satisfaction of
Energy Safe Victoria that each person undertaking an audit has
the necessary competence, ability and access to information to
enable an independent audit. Further, the costs of such an audit
must be borne by the major electricity company.
The penalty for contravening new section 120Q(1) is up to
$50 000 for each contravention, plus a daily penalty of up to
$5000 for each day that contravention continues after service on
the major electricity company by Energy Safe Victoria of notice
of that contravention.
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New section 120R of new Part 10A provides for the Minister or
Energy Safe Victoria to bring civil proceedings in respect of a
civil penalty provision. Civil penalty provision is defined in new
section 120K to mean new section 120M, 120N, 120O, 120P
or 120Q.
New section 120S of new Part 10A clarifies that enforcement
proceedings under new section 120R are civil proceedings, not
criminal proceedings. Subsections (a)-(f) provide that criminal
proceedings do not lie against a person by reason only that the
person has contravened or attempted to contravene a civil penalty
provision, or has engaged in other acts and practices relating to
contraventions of civil penalty provisions.
New section 120T of new Part 10A sets out the basis upon
which civil penalty provisions may be enforced by the Minister
or Energy Safe Victoria. Subsection (1) provides that the
Minister or Energy Safe Victoria may apply to the Supreme
Court (the Court) for an order in respect of the doing of a thing
referred to in subsection (3). Subsection (2) provides for the
Court to make orders for major electricity companies to pay
pecuniary penalties to the Minister if satisfied that a thing
specified in subsection (3) has been done. Subsection (3) lists
the matters which give rise to a Court order for payment of a
pecuniary penalty to the Minister. Subsection (4) sets out the
matters that the Court may have regard to in determining the
amount of the pecuniary penalty.
New section 120U of new Part 10A provides that pecuniary
penalties received by the Minister are to be paid into the
Consolidated Fund.
New section 120V of new Part 10A empowers the Court to grant
declaratory relief in relation to contraventions of civil penalty
provisions upon the application of the Minister or Energy Safe
Victoria. Subsection (1) allows the Court to make an order
declaring whether or not a major electricity company has
contravened a civil penalty provision on the application of the
Minister or Energy Safe Victoria. Subsection (2) provides for the
requirements that may be included in an order that declares the
major electricity company to have contravened a civil penalty
provision.
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New section 120W of new Part 10A provides for the
Governor in Council, on the recommendation of the Minister,
to exempt a major electricity company from complying with
new section 120M, 120N or 120O. An exemption may be of
general or specific application, may specify conditions, and is
subject to the terms and conditions specified in the Order.
New section 120X of new Part 10A provides for
Energy Safe Victoria to specify later dates by which a major
electricity company must comply with the obligations in new
sections 120M(1) and 120O(1), on the application of a major
electricity company. A request by a major electricity company
under this section must set out the reasons for the request.
Before specifying an alternative period or date on the application
of a major electricity company, Energy Safe Victoria must
consult with the Minster.
New section 120Y of new Part 10A provides for Energy Safe
Victoria to require a major electricity company to provide certain
information for the purposes of verifying a report under new
section 120P or an independent audit under new section 120Q.
A notice issued under this section must specify the information
required by Energy Safe Victoria, the format in which it is to be
given, and the date by which it must be given.
New section 120Y does not require a major electricity company
to give information that is the subject of legal professional
privilege or client legal privilege. However it is not a lawful
excuse for a major electricity company to fail to comply with a
notice on the ground of any duty of confidence.
The penalty for contravening new section 120Y is 200 penalty
units.
New section 120Z of new Part 10A provides for Energy Safe
Victoria to conduct, or cause to be conducted, an audit of a
major electricity company's compliance with the civil penalty
provisions.
Clause 5 amends section 141AB of the Electricity Safety Act 1998
to allow Energy Safe Victoria to require a person to give
information under that section for a broader range of purposes.
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The amended section 141AB(1) allows Energy Safe Victoria
to require a person to give certain information that it reasonably
requires and which relates to a distribution company's
compliance with Divisions 1A, 2 and 4 of Part 8, and Part 10
of the Electricity Safety Act 1998.
As unamended, section 141AB(1) only allows Energy Safe
Victoria to require this information for the purpose of preparing
annual reports.
Following amendment by this clause, section 141AB(1)
will allow Energy Safe Victoria to require this information
for the more general purpose of verifying the performance of
distribution companies in complying with Divisions 1A, 2 and 4
of Part 8, and Part 10 of the Electricity Safety Act 1998.
Clause 6 makes a consequential amendment to the heading of Division 2A
of Part 10 of the Electricity Safety Act 1998. This amendment
is consequential to the insertion of new Part 10A by clause 4.
Clause 7 provides for the automatic repeal of this amending Act on
1 September 2018. The repeal of this Act does not affect in any
way the continuing operation of the amendments made by this
Act (see section 15(1) of the Interpretation of Legislation
Act 1984).
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