Annual Report 10 August 2005 to 30 June 2006 Table of Contents

ANNUAL REPORT 10 AUGUST 2005 TO 30 JUNE 2006 TABLE OF CONTENTS

OVERVIEW 1

The Organisation 1 Our Mission 1 Our Vision – Towards 2011 2 Our Values 2 Role and Functions 3

DIRECTOR OF ENERGY 4 SAFETY’S REPORT FINANCE 32 THE ORGANISATION 6 Accountable Ofﬁcer’s and Chief Finance & Accounting Ofﬁcer’s Declaration 42 REVIEW OF OPERATIONS 7 Auditor General’s Report 43

CORPORATE ACTIVITIES 7 CORPORATE INFORMATION 45 Establishment of Energy Safe Victoria 7 Statement of Corporate Intent 45 ESV’s Five Year Corporate Plan 7 Audit Committee 49 Human Resources and Industrial Relations 7 Statutory Information 49 Finance 8 Consultancies 49 Information Technology 9 Disclosure of Major Contracts 49 Investigations and Prosecutions 9 Pecuniary Interests 49 Skilling for the Future 9 Customers 49 Whistleblowers Protection Act 2001 49 PUBLIC AWARENESS AND 10 Information Privacy Act 2000 50 COMMUNICATIONS Freedom of Information 50 Committees 50 SAFE AND EFFICIENT ELECTRICITY 12 Building Act 1993 50 Serious Incidents 12 Victorian Industry Participation Policy 50 Do Not Work Live 13 National Competition Policy 50 Installation Safety 14 Energy Efficiency Government ESV Electrical Home Safety 15 Buildings Policy 50 Inspection Scheme Disclosure Index 51 Safety Switches 16 Certificates of Electrical Safety 16 Energy Efficiency 17 Electricity Safety Management Schemes 17 Equipment Safety 18 Head Office Network Safety 19 Level 3, 4 Riverside Quay Licensing and Professional Development 21 Southbank Vic 3000 Postal Address SAFE AND EFFICIENT GAS 23 PO Box 262 Serious Incidents 23 Collins Street West Vic 8007 Safety Cases 23 Telephone 03 9203 9700 Facsimile 03 9686 2197 Gas Technical Regulators Committee 23 Website www.esv.vic.gov.au Safety of Gas Appliances 24 Email [email protected] Industrial and Commercial Appliance ABN 33 592 662 340 Installations 27 Standards Development 28 Nunawading Office 15A Ceylon Street Education and Development 28 Nunawading 3131 Energy Efficiency and Sustainability 28 Telephone 03 9875 5400 Facsimile 03 9877 8441 PERFORMANCE MEASURES 29 Ballarat Office 32A Doveton Street North Ballarat 3353 Postal Address PO Box 700, Ballarat 3353 Telephone 03 5331 9478 Facsimile 03 5331 9485 Geelong Office 185 St Albans Road East Geelong 3219 Telephone: 03 5221 9777 Facsimile: 03 5221 9778 Sale Office 317 York Street Sale 3850 Postal Address PO Box 893, Sale 3853 Telephone 03 5143 2238 Facsimile 03 5143 3027 Front Cover A selection of still shots from ESV’s television safety awareness campaigns OVERVIEW 1

Energy Safe Victoria is the independent THE ORGANISATION technical regulator responsible for ESV was created on 10 August 2005 through

electricity and gas safety in Victoria. the enactment of the Energy Safe Victoria 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Responsibilities are achieved by Act 2005. auditing the design, construction and maintenance of all electricity and gas ESV was formed after the extensive review networks and installations and by of Victoria’s main energy regulators through ensuring that appliances meet stringent the amalgamation of the Office of the Chief safety and energy efficiency standards Electrical Inspector (OCEI) and the Office before they are sold. ESV also conducts of Gas Safety (OGS). ESV has the same a comprehensive public awareness objectives, functions and powers as the campaign to educate the community former OCEI and OGS. and industry on the potential dangers ESV operates under the Electricity Safety associated with gas and electricity. Act 1998 and Gas Safety Act 1997 which are administered by the Minister for Energy Industries and Resources.

OUR MISSION AS VICTORIA’S INDEPENDENT ELECTRICITY AND GAS SAFETY AND TECHNICAL REGULATOR, ENERGY SAFE VICTORIA STRIVES TO ENSURE SAFE AND EFFICIENT SUPPLY AND USE OF ELECTRICITY AND GAS, FOR THE BENEFIT OF ALL VICTORIANS. WE PROTECT AND ASSIST THE COMMUNITY BY: – working co-operatively and in consultation with the industry and community to facilitate safety outcomes – developing and communicating safety and efﬁciency requirements and programs – monitoring, auditing, and enforcing compliance with the requirements – administering licensing, registration and approval systems that maintain safety standards and skills. 2 OVERVIEW ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT OUR VISION – TOWARDS 2011 OUR VALUES Victoria will be a state where the community, At ESV, the following core values are expected industry and regulators share a strong from all our team at all times. These values are commitment to the safe and efﬁcient supply to be expressed in our day to day actions and and use of electricity and gas. decisions, and our interactions with others.

To ensure their safety, the community and 1. Respect industry will demand that work involving – We respect people and their opinions electricity and gas is carried out only by workers who are skilled and appropriately – We respect differences and skill diversity trained. The industry workforce will have – We recognise that all people have valuable numbers sufficient to deliver community contributions to make requirements into the future. 2. Integrity Energy Safe Victoria (ESV) will be nationally – We communicate and act in an open, respected and recognised as a leader in safety honest, ethical and transparent manner regulation that facilitates safety and efficiency outcomes through strong communication and – We aim to meet our promises consultation, clear regulation, and fair audit and enforcement activities. These activities will – We are trustworthy – we mean what we say be carried out by a highly skilled, professional – We make decisions on merits, based on and adaptable regulatory team who are facts, logic and process leaders in their field, and are able to explain their actions and decisions. 3. Teamwork – We work co-operatively as a team Safety and efficiency will be delivered within a framework that is cost effective and fair for – We encourage, mentor and support other all parties. This framework will be consistently team members and openly communicated to the community and industry. 4. Commitment and Responsiveness – We demonstrate motivation and This will create a safer state for the benefit of commitment to our role all Victorians. – We are committed to being responsive to the needs of internal and external stakeholders

– We aim to be timely and efﬁcient

5. Flexibility & Innovation – We are open to changes that may help achieve our goals

– We encourage innovation and ideas

6. Accountability – We take responsibility for our actions and decisions

– We demonstrate leadership

7. Excellence – We strive for quality and excellence in our actions.

VICTORIA WILL BE A STATE WHERE THE COMMUNITY, INDUSTRY AND REGULATORS SHARE A STRONG COMMITMENT TO THE SAFE AND EFFICIENT SUPPLY AND USE OF ELECTRICITY AND GAS. 3 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT ROLE AND FUNCTIONS Functions A summarised version of Energy Safe Victoria Energy Safe Victoria carries out the following objectives and functions that are conferred by functions to meet these responsibilities: legislation and must be addressed through – Specifying minimum safety standards ESV operations are as follows. – associated with electrical equipment, electrical installations, electrical work, gas Objectives appliances, gas equipment, gas – Ensuring the electrical safety of electrical components, gas installations, gas related generation, transmission and distribution services and the conveyance, sale, supply, systems, electrical installations and measurement, control and use of gas electrical equipment – Encouraging and monitoring the use of – Ensuring safe conveyance, sale, supply, electricity safety management schemes measurement, control and use of gas – Issuing guidelines for preparing gas safety – Controlling the safety standards of gas cases and electrical work – Auditing accepted gas safety cases and – Maintaining public and industry awareness electricity safety management schemes to of electrical and gas safety requirements determine the adequacy and effectiveness – Promoting awareness of energy efficiency of these safety cases and schemes through energy efficiency labelling and – Administering the prescribed minimum regulation of electrical equipment and gas standards for energy efficiency of electrical installations, appliances and components equipment and gas installations and – Protecting underground and underwater components structures from corrosion caused by stray – Investigating events or incidents which have electrical currents. implications for electricity and gas safety

– Providing advisory and consultative services to industry and the community in relation to gas and electrical safety

– Monitoring and enforcing compliance with the Act and the regulations, including:

> Inspecting and testing electrical GasNet Dandenong liquid natural gas equipment, electrical installations and storage and city gate electrical work for compliance with the speciﬁed safety standards

> Compliance of gas appliances, equipment, components, installations, and related services and the conveyance, sale, supply, measurement, control and use of gas with the speciﬁed safety standards

> Inspecting and testing electrical equipment and gas installations, appliances and components for compliance with the speciﬁed minimum standards for energy efﬁciency

> Compliance of gas companies with accepted safety cases.

when in the vicinity of powerlines. The fatalities and serious incidents reported in detail in the covered during 2005/06 are “Safe and Efﬁcient Electricity” section of this Annual Report. SERIOUS INCIDENTS consistent of fatalities are While the numbers of averages, they are rolling with long term in concern to ESV and have resulted great dangers campaigns to stress new awareness of “Look Up – particularly the importance And Live”. the victim but tragic not just for All deaths are friends and in many cases also their family, electrical related their work colleagues. The have been avoided if deaths could quite easily had been taken. of care a degree trucks In the case of contact between very incidents are and powerlines, these happen, and ESV is avoidable and should not to ascertain undertaking a number of projects communications to people who appropriate appear to perpetually take risks. all incidents of contact to treat ESV proposes with powerlines very seriously – and if compliance. necessary take action to ensure Whilst it does not give us any joy prosecuting thing, we will take people for doing the wrong action if this is the only way to get through to people that they have to be ultra cautious

Unfortunately our year’s work has been Unfortunately our year’s by a number of signiﬁcantly marred fatalities due to electrical causes. Of particular concern have been three caused by trucks touching electrocutions powerlines on rural properties. the electrical installations in the interests the electrical installations in the interests of their families, themselves and the itself. property Another plus for ESV is the increased devoted to raising time and resources of gas public and industry awareness and electricity safety. and In addition, our work preparing Plan Corporate year ﬁve ESV’s completing 2007 – 2011 was another milestone for us. This work was complemented by the we undertook risk review comprehensive examining each aspect of ESV activities. using LP Gas prepared 24,000 meals 24,000 meals using LP Gas prepared each day. major new safety ESV also launched a Home Safety initiative – the electrical New television Inspection Scheme. to raise produced were commercials targeted of the scheme, while awareness undertaken in two were promotions areas. this committed to promoting are We scheme as much as possible as it encourages home owners and occupiers inspection of to arrange a professional A standout event for Victoria was the event for Victoria A standout pleased Games and I am Commonwealth worked with organisers that ESV to report gas and to ensure at many venues For instance, at the electricity safety. portable kitchens three Games Village

RESPONSIBILITIES IN RELATION TO ENERGY TO ENERGY RESPONSIBILITIES IN RELATION NOT BEEN COMPROMISED. SAFETY HAVE OCEI AND OGS RESOURCES AND INFRASTRUCTURE OCEI AND OGS RESOURCES AND ROLES AND EVERYDAY WHILE MAKING SURE THAT NEW ORGANISATION THROUGH THE INTEGRATION OF THROUGH THE INTEGRATION NEW ORGANISATION IT HAS BEEN A BUSY AND PRODUCTIVE YEAR. IT HAS BEEN A BUSY AND PRODUCTIVE THE ESTABLISHING WORKED HARD AT WE HAVE sections of this Annual Report. There are a number of positives to report a number of positives to report are There these are activities and our year’s from in some detail in the different covered a virtually seamless setting up of our new a virtually seamless setting up of our new organisation, while continuing to work of energy safety – both on all areas hard and new initiatives. existing programs At this point I would like to acknowledge At this point I would the cooperation and commitment of in ensuring and staff management ESV’s everyday roles and responsibilities in in and responsibilities everyday roles not been to energy safety have relation compromised. We have worked hard at establishing hard have worked We the through the new organisation OGS resources integration of OCEI and that sure while making and infrastructure Electrical Inspector (OCEI) and the Electrical Inspector (OCEI) (OGS). Office of Gas Safety year. productive It has been a busy and This is the first Annual Report for Energy first Annual Report for This is the which was formally (ESV) Safe Victoria with the on 10 August 2005 established Chief of the Office of the amalgamation DIRECTOR OF ENERGY SAFETY’S REPORT SAFETY’S ENERGY OF DIRECTOR

4 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 5 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

DIRECTOR OF ENERGY SAFETY These reviews are intended to ensure that the ensure intended to are These reviews communications and framework, regulatory will be effectively and procedures processes gas leverage the merging of updated to of safety, in terms and electricity regulation, and efficiency. productivity With due to expire sets of regulations twelve of effective in the coming years, completion is essential reviews legislative and regulatory updates can that all of the required to ensure be identified and implemented. activities these review Inadequate attention to in in insufficient improvement would result hampering attempts legislative frameworks, outcomes, and the delivery to achieve required of administrative and efficiency benefits to the the community and industry from of ESV. creation have no intention of allowing this to We happen. KEN GARDNER

of skilled professionals – clear and consistent practices. efficient and fair consultation and communication systems installations workforce 6. Employer of choice – a committed team Employer of choice 6. organisation efficient and effective More 7. establishment Consistent with the recent bringing together and the associated of ESV, plan the of gas and electricity, of regulation activities, specifies several major “review” especially in the early period of the plan. The key outcomes are: Modern – effective, safety regulation 1. Better informed stakeholders – improved 2. gas and electricity supply Safe and reliable 3. Safe and efficient appliances and safe 4. and skilled industry Stable, sustainable 5. After conducting a comprehensive analysis of analysis a comprehensive After conducting over the next to achieve required what ESV is put in key outcomes were five years, seven strategies, timelines, appropriate place – and identified to budgets and other activities delivered. they are ensure

practice energy safety outcomes. safely to deliver best and processes structures impact on energy safety stakeholders to enhance the need to work all stakeholders, including the general community and gas safety and technical regulation and gas safety and technical regulation functions deliver acceptable benefits to regulatory framework is current and effective and current is framework regulatory – Ensuring that ESV has the most appropriate – most appropriate Ensuring that ESV has the – Improving communications with – Improving – Addressing the skills shortage and its – Addressing – Ensuring that the merger of electricity – of serious incidents and fatalities Prevention – Ensuring that the energy safe legislative and and challenges which ESV needs to address and challenges which ESV needs to address as part of its long term strategy to deliver an energy safer Victoria. Challenges include: Ken Gardner of Energy Safety, Director not daunted and have set achievable targets work and commitment. hard requiring Our five-year plan focuses on key concerns energy industry and the community. energy industry and the The delivery of the strategies and activities will be a major challenge for us, but we are Briefly it provides a clear direction for the for the a clear direction Briefly it provides objectives and delivery of our responsibilities the overall safety, – the winners being energy The plan was developed through many hours through The plan was developed by ESV’s of discussions and consultation externalmanagement team and resources. dedicated to determining the way ahead both dedicated to determining This is epitomised for energy safety and ESV. five year the completion of ESV’s through 2011. Corporate Plan 2007 – FIVE YEAR CORPORATE PLAN CORPORATE FIVE YEAR 2007 – 2011 one positive example earlier, As mentioned the focus we have work is of our year’s 6 THE ORGANISATION ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Energy Safe Victoria is led by the Director Director of Energy Safety Executive Manager, Electricity of Energy Safety who is appointed Ken Gardner Installations & Equipment Safety pursuant to the Energy Safety Act 2005 Executive direction of Energy Safe Victoria Darren Margerison which is administered by the Minister – Electricity Installations for Energy Industries and Resources. Deputy Director & Executive Manager, – Electricity Installations Standards Infrastructure Safety – Electricity Appliance Approvals ESV’s mission and objectives are Mike Ebdon – Electricity Appliance Inspections achieved through the commitment and – Electricity Supply Networks – Energy Efficiency of Electricity Appliances, collaborative efforts of the Director of – Gas Supply Networks Approvals and Inspections Energy Safety, managers and staff. – Traction Networks – Electricity Installation Inspections – Electrolysis – Licensed Electrical Inspector Audits – Gas and Electricity Supply – Electricity Appliance Retailer Audits – Risk Management – Pipelines Executive Manager, – Supply Standards Communications & Public Relations David Guthrie-Jones Executive Manager, Corporate Services – Community Education and Communications Alan Kelly – Media – Finance and Administration – Publications – Human Resources – Industry Communications – Information Technology – Magazine – Customer Service Centre Executive Manager, Executive Manager, Investigations & Prosecutions Licensing & Professional Development Peter Hester Allan Driver – Legal – Licensing – Investigations – Registration – Prosecutions – Training – Emergency Management – Competency – Ongoing Skills Maintenance (Continuing Professional Development) – Certificate Administration

Executive Manager, Gas Installations & Appliance Safety Stephen Brook – Gas Installations – Gas Installation Standards – Major Events – Type B Gas Appliances – Energy Efﬁciency of Gas Appliances, Approvals and Inspections – Gas Appliance Retailer Audits

ESV’S MISSION AND OBJECTIVES ARE ACHIEVED THROUGH THE COMMITMENT AND COLLABORATIVE EFFORTS OF THE DIRECTOR OF ENERGY SAFETY, MANAGERS AND STAFF.

From left to right Mike Ebdon, Allan Driver, Stephen Brook, Darren Margerison, David Guthrie-Jones, Peter Hester REVIEW OF CORPORATE ACTIVITIES 7 OPERATIONS ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT This report covers a number of major ESTABLISHMENT OF Risk review activities undertaken by Energy Safe ENERGY SAFE VICTORIA A comprehensive risk review examining each Victoria across the areas of electricity There was a great deal of activity across aspect of ESV activities was a major program and gas safety from the time of its ESV during the reporting period successfully for the organisation’s management team establishment on 10 August 2005 until integrating the people and functions of the during the year. The major risk areas for ESV 30 June 2006. former Office of the Chief Electrical Inspector were identified during the process and plans and the Office of Gas Safety into the new to manage the risks have been incorporated This section deals with what are termed energy safety regulator. into the ESV five year Corporate Plan. Corporate Activities, which includes establishment issues, legal activities, The 2005/06 Corporate Plan set a number HUMAN RESOURCES AND human resources, finance and IT. There of objectives for the organisation which were INDUSTRIAL RELATIONS are additional sections covering both the achieved on time and within budget. The development of the new corporate safe and efficient use of electricity and structure and the recruitment/appointment gas, together with public and industry Major tasks completed included introducing process was a priority for the first few months awareness. the new corporate structure, implementing a after the formation of ESV. The structure was single Award and Enterprise Agreement for in place with most positions filled by February the organisation, developing the appropriate 2006. corporate branding, setting up new financial processes and rationalising the main Details of the corporate structure can be found accommodation requirements to two sites in the “Organisation” section. – Southbank and Nunawading. On the industrial relations front, there was a Progress was also made during the year priority to ensure that all staff were employed towards establishing a suitable culture for on the same terms and conditions. A new ESV as a regulatory authority charged with single Award and Enterprise Agreement for the electricity and gas safety for both the energy organisation was negotiated and implemented industry and the general community. The during the year. pursuit of suitable safety outcomes through the development of safety partnerships with To support the HR initiatives contained in principal stakeholders will be an ongoing task the new corporate plan, ESV has created a in 2006/07. new dedicated human resources role and employed the services of a qualified and Accommodation experienced HR Adviser to coordinate all ESV needed the most appropriate human resources and industrial relations accommodation for an integrated organisation. activities. During the year there were extensive “fit-outs” at the Southbank and Nunawading As part of the five year Corporate Plan, locations. The former headquarters of OGS at ESV has committed to working towards Woolhouse, Parkville, was vacated at the end becoming an employer of choice through of May 2006 with new tenants being sought improved organisational structures, role by ESV. Refurbishments and the provision clarity, performance management, polices, of new facilities at ESV’s two main sites staff development and occupational health were completed in early 2006/07. and safety. Progress against initiatives will be measured through regular staff satisfaction ESV’S FIVE YEAR CORPORATE PLAN surveys. 2007 – 2011 To set a clear direction for the organisation to Occupational health and safety deliver its responsibilities and objectives, ESV’s A new occupational health and safety management team and external resources committee covering both gas and electricity devoted significant time to preparing a five staff has been established. This committee year Corporate Plan for 2007 – 2011. The meets quarterly and newly appointed OH&S draft plan was submitted to State Government representatives have received appropriate on schedule. The contents of the Plan are training. discussed in the Director of Energy Safety’s section.

8 CORPORATE ACTIVITIES ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Principles of merit and equity FINANCE ESV is committed to the principles of Determining the accounting requirements merit and equity and appoints the best for the new organisation and implementing possible person for the job. Applicants in them was a major establishment task. Work our recruitment and selection processes are included developing a common chart of evaluated and appointed on the basis of accounts/cost centres, consolidation of all merit, using fair and equitable behavioural accounts into a new accounting system assessment that is based on advertised key – ACCPAC – preparation of a consolidated selection criteria and accountabilities. budget, consolidated reporting and the establishment of the audit committee. Workforce data ESV consists of staff from both the previous The total income for ESV for the period 10 OCEI and OGS together with externally August 2005 – the date the organisation was appointed staff in the following areas: established – to 30 June 2006 was $16.6 million and operational expenditure was $16.8 As at 30 June 2006 million. This resulted in a $140,000 operating deﬁcit for the period. Male Female Total Director 1 0 1 A key focus during the period was the implementation of a series of projects to Communications & Public Relations 1 1 2 establish and launch ESV and to align the Infrastructure Safety (Gas & Electricity) 16 2 18 various operational elements of the prior Licensing & Professional Development 5 6 11 entities.

Gas Installation & Appliance Safety 21 0 21 Service fee income represents approximately Electricity Installations & Equipment Safety 13 0 13 55% of ESV’s total income. Operational expenditure continues to be managed within Investigations & Prosecutions 7 1 8 available funding, with ESV maintaining an Finance, Administration & Customer Service 5 6 11 expense to income ratio of 1.0 or break even Human Resources 0 1 1 for the period ended 30 June 2006. Information Technology 2 1 3 Financial review of operations

TOTAL 71 18 89 10/08/05-30/06/06 ($000) Total expenses 16,745 Total revenue 16,605 Operating surplus/(deﬁcit) (140) Total assets 8,181 Total liabilities 5,024 Net assets 3,157 Total equity 3,157

Insurance and motor vehicles A project was undertaken to determine insurance and motor vehicle requirements for the new organisation. Consolidation of insurance requirements resulted in savings of $130,000 compared to total insurance costs incurred by OCEI and OGS. The appointment of a single motor vehicle lease provider will also deliver signiﬁcant savings.

Gas Investigations Officer, Doug Rennie CORPORATE ACTIVITIES 9 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT INFORMATION TECHNOLOGY In another move, ESV is proposing that in Amended regulations A major task was undertaken to review the 2007/08 options will be introduced for new Electricity Safety (Equipment) hardware, software and system applications applications for most classes of licence – (Amendment) Regulations 2005 used by the previous OCEI and OGS and to be conducted electronically. These amending regulations introduced determine the appropriate system for ESV. the requirement that electrical equipment A review of future IT requirements was also Because some RECs and licence holders do and appliances having two or three pin undertaken. A new ESV website featuring an not wish to conduct their business with ESV plugs (including direct plug-in devices) have enhanced interactive capacity for stakeholders electronically, traditional processes will remain insulated pins fitted before being sold or to communicate with the organisation will be in place for as long as there is a need. supplied. These amendments commenced on provided in 2006/07. Communications register 1 August 2005 but allowed suppliers until 3 One single communications register was April 2006 to dispose of stocks of equipment Conducting business with ESV on-line that did not meet the new requirements. ESV will be introducing a new service early established for the new entity. in 2006/07 providing licence and registration INVESTIGATIONS AND PROSECUTIONS Electricity Safety (Equipment Efficiency) holders with the option to receive renewal During the year, ESV completed 41 successful (Amendment) Regulations 2005 notices via email, and then complete the prosecutions under the Electricity Safety Act. These amending regulations implemented renewal process by paying fees on-line by This included the successful prosecution a Ministerial Council on Energy decision credit card. of a network operator for failing to have a to upgrade minimum energy performance safe system while 27 offences were proved standards (MEPS) for small mains pressure The option is one of a range of services which water heaters and to introduce MEPS for ESV will be introducing progressively enabling for unregistered/unlicensed work including working outside the terms of disconnect/ vented displacement water heaters and heat stakeholders to conduct their business exchange water heaters. The amendments electronically. reconnect restricted licences. There were eight proven charges of unsafe work. A total commenced on 27 October 2005. Examples include the availability electronically of seven successful gas related prosecutions Electricity Safety (Network Assets) of Certificates of Electrical Safety (COES) for were also initiated. (Amendment) Regulations 2005 registered electrical contractors (RECs) and These amending regulations prescribe licence holders to lodge with ESV and then Legislation The Energy Safe Victoria Act 2005 amended appropriate clearance and depth requirements download. Introduction is planned to take for high voltage direct current aerial and place in 2006/07. the Gas Safety Act 1997 and the Electricity Safety Act 1998 and established Energy Safe underground power lines respectively in ESV’s agents, who sell certificates, will be able Victoria on 10 August 2005. relation to Basslink and made miscellaneous to allocate them to their customers via the amendments to improve the operation of internet. Agents will also be able to order new The Energy Legislation (Miscellaneous the principal regulations. The amendments stocks of certificates electronically from ESV Amendments) Act 2006 made further commenced on 7 December 2005. using the internet. amendments to the Gas Safety Act in June 2006 in respect to labeling gas appliances, Electricity Safety (Equipment Efficiency) ESV also proposes early in 2007 to introduce powers of inspectors to require information, (Amendment) Regulations 2006 new arrangements for manufacturers and issuing of gas safety infringement notices These amending regulations increased the importers of electrical appliances and by the Plumbing Industry Commission and MEPS levels for both single-phase household equipment to apply for approval certificates the power to include gas quality testing airconditioners and three-phase electric on-line. exemptions in subordinate regulations. motors. The amendments commenced on 1 April 2006. Already the ESV electrical Home Safety During this reporting period, ESV contributed Inspection scheme is very much of an on-line to the review of other related legislation, SKILLING FOR THE FUTURE program, with home owners and occupiers principally the Pipelines Regulations and to ESV continues to assist the energy industry able to access information from the ESV the implementation of subordinate legislation to address the skills shortages resulting website, contact inspection companies to and codes of practice made under the Road from people leaving the industry, an ageing receive quotes and then authorise the work Management Act. workforce, the lack of training opportunities to proceed if they so wish. and the lack of new recruits – such as apprentices, engineers and people with middle Similarly, the inspection companies and the range technical skills. inspectors themselves can purchase the home safety inspection certificates on-line and For instance, ESV worked with stakeholders conduct all business with ESV relating to the and the Electrical Action Group formed under particular inspection electronically. the Federal Government’s Department of Education, Science & Training, to assist the Council of Australian Government (COAG) in introducing consistent national training and mutual recognition processes across Australia and New Zealand for electricians, restricted electrical licence holders, lineworkers, electrical fitters and cable jointers.

The outcome for tradespeople is that their skills and qualifications will be recognised across all Australian states/territories. 10 PUBLIC AWARENESS AND COMMUNICATIONS ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Energy Safe Victoria has aimed ESV was both proactive and reactive in its ESV’S NEW TELEVISION COMMERCIALS to maintain and enhance all of campaigns. Following three electrocutions During the reporting period, ESV the education, enforcement and early in 2006 resulting from trucks commissioned four new commercials which communication/information activities of contacting overhead powerlines on Victorian were aired across metropolitan and regional the former OCEI and OGS. During the rural properties, ESV initiated a large television stations. They are available for future reporting period there was an overall communications campaign utilising regional screenings during forthcoming ESV safety review of electricity and gas safety public radio and newspapers to highlight the danger campaigns. and industry awareness programs and of overhead powerlines and the need to strategies to ensure cost effective and Look Up And Live. In addition, existing OCEI and OGS electricity timely communications. and gas safety commercials were “re-cut” to The campaign was directed particularly at feature the ESV branding. A public awareness/communications strategy farmers and drivers of tip trucks. Ongoing was in place for the start of ESV. By using activities include working with other The new commercials focussed on electrical television, radio, newspaper advertising organisations to help make sure the Home Safety Inspections, BBQ and LP Gas and other initiatives, ESV aimed to highlight message is getting through to people at risk. safety, cooking safety and gas appliance the importance of energy safety – and the safety. The latter also contained a warning existence of the new safety regulator – by There are full details of this campaign in to beware of potential carbon monoxide delivering both new and existing electricity and the “Safe and Efficient Electricity” section. poisoning. gas safety messages. REACH AND RECALL ESV’s electrical Home Safety Inspection Campaigns and messages covered the A public opinion survey conducted on behalf scheme was initiated with the screening of two following: of ESV in May 2006 recorded a satisfactory commercials at the end of 2005. While the reach and recall of campaigns through the images were the same in both commercials, – Look Up And Live community. There was also a high awareness one asked home owners whether the – Dial Before You Dig of ESV as the new electricity and gas safety electrical wiring and installation was aged – Never Do It Yourself – electricity and regulator. or overloaded, while the other urged both gas work buyers and sellers of properties to arrange – Install a safety switch inspections for peace of mind. – Do not work “live” – Arrange an electrical Home The messages of the BBQ and LP Gas safety Safety Inspection commercial are: never use outdoor appliances – Never leave cooking unattended indoors, make sure gas hoses are in good – Ensure gas appliances are serviced condition and ensure all connections are tight. and checked regularly The cooking safety commercial provided the – Beware unsafe Christmas lighting products basic message that whether one cooks with – Electrical blanket safety electricity or gas, the consequences can be – BBQ and LP Gas safety the same if one is distracted and the cooking – Check the licence of tradespeople is left unattended. – Insist on a Certificate of Electrical Safety or Certificate of Compliance when electrical The script for the gas appliance safety and gas work is completed. commercial asked whether gas appliances are safe to use. It warned that if the appliance produced yellow or orange flames then there could be a risk from dangerous fumes such as carbon monoxide. If the flames are blue then the appliances are working properly. In any case, appliances should be serviced and checked by a licensed gasfitter at least every two years. Right Filming and production of the “Careers Corner” series The commercials can be viewed on the ESV website.

Early in 2006/07, ESV will be producing a new “Look Up And Live” commercial directed primarily at farmers and truck drivers, who deliver bulk material to farms. It is envisaged the commercial will be aired mostly on regional television.

ESV is proposing to run three major electricity and gas safety campaigns in 2006/07 - during early Spring, during pre-Christmas period and again in the run-up to Easter.

Left “The Travellers” on Sandridge Bridge – a modern electrical engineering icon PUBLIC AWARENESS AND COMMUNICATIONS 11 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT RADIO COMMERCIALS Gas Safety: Type B Gas Appliances INDUSTRY MAGAZINE In a fresh initiative, ESV produced a series of This brochure covers the processes involved With the commencement of ESV, the quarterly radio commercials. Most of these used almost in obtaining an acceptance when installing, industry magazine published by the OCEI identical scripts to those used for the television modifying or commissioning new or second and titled LIVE with electricity, was renamed commercials. The need to ensure the safety hand Type B Appliances – appliances for energysafe and now incorporates gas of electric blankets was a radio only message, which there is no specific code and with a gas safety information in addition to electricity which received good air time. consumption or input which exceeds 10MJ/h. safety features. The first issue was published in September 2005 and three subsequent NEW ESV BROCHURES It explains how the acceptance process issues were produced during the year. ESV developed four new brochures in works, owner responsibilities, reporting Circulation of the magazine is in the region of 2005/06 to complement other brochures incidents involving Type B Appliances, 54,000 – including some 16,000 gasfitters. produced by the organisation just prior to its re-installed or modified appliances and the Advertising sales assist in subsidising the cost official establishment in August 2005. information which needs to be submitted with of publication and distribution. applications for acceptance. The new brochures are: CULTURALLY AND LINGUISTICALLY Electrical Safety: Look Up And Live DIVERSE (CALD) ACTIVITIES Gas and Electricity Safety: The Landlord This new “Look Up And Live” brochure is – your responsibilities ESV broadcast the following campaigns on directed at truck drivers – and rural property SBS television: This brochure aims to inform landlords and owners, their families and workers, and was their agents of their responsibilities and – Arrange an electrical Home Safety developed in response to three deaths in Inspection requirements for good practice when renting early 2006 resulting from trucks contacting accommodation. As the brochure points out overhead powerlines. – Don’t Do It Yourself the Residential Tenancies Act 1997 requires a landlord to ensure that rented accommodation It contains a number of stark messages, – BBQ safety is maintained in good repair. including: – Electrocutions caused by trucks hitting – Install a safety switch “Good repair” includes all gas and electrical powerlines on rural properties in Victoria – Take care when cooking appliances provided by the landlord. These are on the increase. Everyone involved in must be safe to use and properly maintained. the delivery of fertiliser, lime and other – Ensure gas appliances are regularly serviced The brochure lists both landlord and tenant bulk material to farms is at risk and maintained. responsibilities in relation to gas and electrical – Do not store bulk deliveries close to appliances. powerlines. Do not raise the tipper tray It is ESV’s intention to enhance its CALD of trucks when underneath powerlines. activities in 2006/07 including the translation Gas Safety: Dial Before You Dig of media releases and brochures into various This brochure incorporates the slogan: YOUR LIVES ARE AT STAKE – LOCATE TO ANOTHER AREA languages to target campaign specific “stay safe, stay legal when digging near gas audiences. pipes”. The publication details the provisions – Don’t take powerlines for granted – the covering gas pipeline excavation and damage consequences can be fatal “CAREERS CORNER” in Victoria prescribed in the Gas Safety Act – Trucks are getting bigger but powerlines In conjunction with television production 1997. There is a reminder that tough laws and have remained at the same height. company, Backspin, ESV initiated a series of penalties are in place to prevent damage to WEBSITE television programs encouraging young people gas pipelines. Pipe damage can result in major ESV operated through 2005/06 with a to consider careers in the electricity and gas expense, injuries and even death. temporary website featuring information from industries at all levels from apprenticeship the previous OCEI and OGS sites. A new to engineering opportunities. A number of The brochure outlines important information electricity and gas companies supported about digging in the vicinity of gas pipes. website will be developed in 2006/07. Apart from providing energy safety information, the project with contributions of finance and When planning any type of work involving technical expertise. excavation, Dial Before You Dig must be enhanced interactive features will improve contacted at www.dialbeforeyoudig.com.au communications facilities between ESV and its Electricity related programs were aired on or on telephone number 1100 for the identity stakeholders. Channel 31 in late 2005. Subsequently the of asset owners and the location of their Branding the new organisation series was edited and with new episodes underground infrastructure. Activities to brand ESV included the covering employment opportunities in the gas creation of the organisation’s logo, and the industry, the series went to air again in the development of its corporate identity with new middle of 2006. It is proposed to distribute stationery and signage for offices and motor DVDs of the series to all Victorian secondary vehicles. An ESV uniform was also developed schools in early 2006/07. for management and staff wishing to wear it.

energysafe magazine, the source of technical and general interest information for ESV’s stakeholders 12 SAFE AND EFFICIENT ELECTRICITY ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT ESV personnel continued the traditions SERIOUS INCIDENTS ESV has been particularly busy ensuring of the former OCEI in addressing Unfortunately the year’s activities were marred that the importance of “Look Up And Live” is all elements of electrical safety. by what appeared to be an abnormally high being effectively communicated – particularly Managers and staff displayed their number of electrocutions during the reporting to farmers and drivers of tip trucks, and is usual commitment, expertise and period. The fatalities continue to be of concern working with other organisations to help make professionalism in what was a busy and to ESV, the State Government and the energy sure the message is getting through to people challenging year. industry in general. at risk.

Excluding three suicides and including the ESV activities have included: death of a man train surfing, there were seven – An intense radio and newspaper advertising electricity related deaths. This is in contrast campaign across regional Victoria to the very good results experienced in Victoria over the previous five years when – Distribution of some 20,000 “Look Up And there were a total of eight deaths. Live’’ stickers to members of the Transport Workers Union through its newspaper The 2005/06 numbers are, however, consistent with the longer term averages (10 – Development of a new “Look Up And Live’’ year average of about four deaths per annum brochure specifically focussed on tip truck and 20 year average of about seven deaths drivers, rural property owners and their per annum). workers

This number of deaths in 2005/06 appears – Printing of new hard hitting posters. One abnormally high until one examines the features pictures and details of the three underlying statistics. Based on reported deaths recorded on farms in 2006 incidents, the number of events which could – Provision of stickers, posters and brochures have resulted in fatalities is much higher than to WorkSafe Victoria for distribution at farm the number of actual fatalities. Whether an field days throughout Victoria event results in a serious injury or a death is often a matter of chance and hence there will – Establishing relationships with other often be short term increases or decreases organisations – such as FarmSafe Victoria in fatalities. and the Victorian Limestone Producers Association – to initiate joint communication It is ESV’s continued and long term aim to campaigns. reduce the number of incidents. Apart from thoroughly investigating all incidents, ESV Future action includes: is also examining such issues as whether – Producing a brand new “Look Up And different engineering solutions might reduce Live’’ commercial for airing across Victorian accidents, whether revised processes need regional television. The commercial will be to be introduced, or whether the answer filmed in early 2006/07. It will focus on the could be enhanced or new channels of dangers of ignoring the “Look Up And Live” communication to people at risk. message when delivering bulk material to farms – but also concentrate in particular While all fatalities are of concern, it is on the consequences for loved ones if and particularly concerning to record three when tragedy strikes electrocutions resulting from trucks coming into contact with overhead powerlines on – As two of the electrocutions involved Victorian farms. The deaths prompted an the delivery of lime to farms, ESV will be intense media campaign by ESV across working with the Victorian Limestone regional Victoria to warn of the dangers Producers Association – once the lime of overhead powerlines and the need to season resumes in late summer/early “Look Up And Live”. autumn 2007. It is proposed that as drivers leave lime pits with their loads they will be issued with “Look Up And Live’’ brochures and stickers. SAFE AND EFFICIENT ELECTRICITY 13 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Brief details of the fatalities DO NOT WORK LIVE Following the incident, ESV issued a direction – Three men – two drivers and a farmer ESV has continued to warn registered under Section 141(2) of the Electricity Safety – died after trucks came into contact with electrical contractors, licensed electricians Act 1998 preventing Powercor employees overhead powerlines on rural properties and lines people not to work under “live” from working on any live electrical equipment conditions unless absolutely necessary. between the low voltage switch gear of a kiosk – A 67-year-old man died in hospital after substation without the electricity supply being suffering a severe electric shock while using Initiatives have included the distribution isolated from the electrical equipment and the a faulty welder of brochures, produced just prior to the equipment being earthed. establishment of ESV, and new “danger” labels – A 57-year-old man died using a faulty egg for attaching to switchboards and featuring a The Safety Alert said that while Powercor had washing machine simple Do’s and Don’t’s guide to what should been issued with the direction, the message – A 27-year-old man received a severe and should not be done when it comes to about safe work practices involving live electric shock while working in a “cherry electrical work. electrical equipment within kiosk substations picker” changing light globes at a car yard. and other installations applied to all network Warning to lineworkers on safe working operators and their employees. An obvious conclusion from initial Following an incident in which a 35-year-old investigations of the incidents is that if some of Powercor linesman received some horrific In the Alert, ESV stressed that Section 43(4) ESV’s regular safety messages such as “Look flash burn injuries while installing testing of the Electricity Safety Act requires that a Up And Live”, “Install A Safety Switch Today”, equipment at a kiosk substation in Shepparton person carrying out electrical work must “Don’t Work Live” and “Always Employ A in January 2006, ESV issued a Safety Alert via ensure that all electrical circuits and electrical Qualified Tradesperson” had been observed its website while the Director of Energy Safety, equipment handled in the course of this work and a degree of care taken, the fatalities Ken Gardner, wrote to some 1,700 lineworkers are disconnected from electricity supply, or would have been avoided. in Victoria stressing the importance of safe adequate precautions are taken to prevent working at all times. electric shock or other injury in the handling Overall, instances of contact between of electrical circuits or electrical equipment machinery of some sort and overhead The letter and the Safety Alert provided the involved in the work. powerlines appear to be continuing. Because following advice: of the increased instances, ESV announced – Always follow safe work procedures and The linesman has reportedly made a good its intention to treat all such incidents very never work in potentially unsafe situations recovery. seriously – and if necessary take enforcement – When about to start any work in kiosk action. substations, always make sure it is Distribution company fined absolutely safe to do so for unsafe network – Always make sure that clearances from live CitiPower was fined $50,000 without electrical equipment are sufficient for easy conviction in the Melbourne Magistrates and safe access to electrical equipment Court on 10 March 2006 for failing to take reasonable care to ensure that all parts of – If there is any doubt about safety, ensure the network which it operated were safe and that the electricity supply is isolated from operated safely. the equipment

CitiPower is now appealing the verdict. – Never work alone in such situations, and, if necessary, contact your supervisor for advice and guidance.

ESV’s new brochures and posters which deliver the “Look Up and Live”, “Don’t Work Live” and “Don’t do electrical work yourself” safety messages 14 SAFE AND EFFICIENT ELECTRICITY ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Tram worker injured during line INSTALLATION SAFETY replacement work ESV investigated an incident in which a Installation Safety statistics: lineworker received severe burns while Exemption applications granted under Regulation 416 of the Electricity Safety 120 working on overhead trolley wires. The incident (Installations) Regulations occurred in early January on the tram tracks in Letters of No Objection 164 Mt Alexander Road, Moonee Ponds. Breaches of Regulatory requirements investigated 361 Investigations by ESV showed that the victim – Investigations actioned within 5 days 216 was involved in replacing a section of the overhead wires. It appeared that the section – Investigations – ﬁnal action instigated within 30 days 145 had been taken off supply while the work was Warning letters sent 106 proceeding. However, while the new wires Successful prosecutions 24 were being lifted into position they came into contact with the next bay which was live. Infringement notices issued 30 Audits of registered electrical contractors 334 This caused an arc which in turn caused burns to the linesman, who has reportedly made a – System audits 7,597 good recovery. Audits of licensed electrical installation workers 666 Labourer hurt connecting electrical wiring – System audits 9,013 A labourer received a severe electric shock Audits of licensed electrical inspectors 60 in February when connecting electrical wiring underneath a Frankston property which was Certiﬁcate sales: being renovated. He was taken to Frankston – Prescribed 83,381 Hospital but was almost immediately – Non Prescribed 495,157 transferred to the Monash Medical Centre in Clayton where he was placed in a drug – Periodic 900 induced coma in intensive care because of the extent of his injuries.

He was employed by the company renovating the property.

ESV’s investigations revealed that the victim was only wearing shorts at the time of the incident. It appeared that his bare stomach was lying across a water pipe while he was attempting to connect the electrical wiring to a junction box.

He contacted the live wires with his hand and received the severe shock. CPR was administered by another labourer who found the injured victim.

Compliance Officers, (left to right) Adam Murdoch and Craig Menes SAFE AND EFFICIENT ELECTRICITY 15 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Audits ESV continued to provide a service to the ESV ELECTRICAL HOME SAFETY There were 26,336 audits undertaken by the electrical industry in relation to electrical INSPECTION SCHEME contract audit companies on behalf of ESV of installation work in hazardous areas through ESV’s voluntary electrical Home Safety non prescribed work following lodgement of Letters of No Objection. The guidelines were Inspection Scheme was formally introduced Certificates of Electrical Safety. also amended to reflect the changes to with the screening of television commercials AS/NZS2381.1:2005 are now allowing the in late 2005. There were also 30 periodic audits undertaken adoption by the legal owner of the alternate which allowed for an education and procedure that is in Australian Standard The scheme encourages home owners information session to be provided to the (AS/NZS2381.1:2005). and landlords – in particular properties which companies that had been audited. are 25-years-old or more – to arrange an ESV also encouraged, supported and assisted inspection by an approved and registered ESV Compliance rates were: in the development of enhanced electronic electrical Home Safety Inspector to check the – 99.77% of the Prescribed Certificates were lodgement of certificates, including training of electrical installation and wiring to ensure it is compliant RECs and LEIWs. not overloaded or deteriorating, and detect if – 93.31% of the Non-Prescribed Certificates any recent electrical work has been carried In addition, ESV monitored and audited the out by a qualified tradesperson or not. were compliant contracts for outsourced auditing of electrical – REC compliance to the certification system work through three inspection companies. Under the scheme, companies were was 86.58% registered by ESV as Authorised Home Safety ESV also made significant contributions Inspection Companies and qualified individuals – 60% of certificates lodged identified that through Standards Australia Committees: underwent additional training to become safety switches were installed. – EL 001 for the restructuring of AS/NZS Home Safety Inspectors. 3000 (Wiring Rules) Throughout this period there were 135 ESV invested finances and resources to information sessions involving ESV which were – EL 001 17 for electrical inspection and promote the scheme throughout the Victorian attended by a total of 4,230 people, including testing community. Apart from two campaigns registered electrical contractors, licence – EL 001 14 for IEC input and comments screening the television commercials across holders, licensed electrical inspectors and the state, a radio and newspaper campaign apprentices. – EL 014 – Hazardous areas, with respect to promoting the scheme was also conducted the installation methods in metropolitan Melbourne. The sessions covered the Electricity Safety Act, Electricity Safety (Installations) – HT 021 with respect to the electro medical In another move, ESV targeted older homes Regulations, the Wiring Rules and other areas of the electrical installation. in the cities of Monash and Greater Geelong, general information about ESV’s policies and and surrounding areas, to provide information programs. about the scheme. Brochures, letters and other information were distributed to 50,000 There were 63 construction sites audited selected older properties in each of the throughout Victoria during the reporting period two areas in June. Lists of Home Safety and they identified issues of testing and Inspection Companies which had indicated tagging, and mechanical protection of their availability to provide inspections in the the cables that had been installed. areas concerned were provided as part of the package for residents.

Above right The ﬁrst ESV electrical Home Safety Inspection. Approved Inspector Terry Theobold (right) discusses his report with John and Leanne Wallinger

Right A scene from the Home Safety Inspection TV commercial 16 SAFE AND EFFICIENT ELECTRICITY ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT The promotion clearly indicated ESV’s SAFETY SWITCHES CERTIFICATES OF ELECTRICAL SAFETY commitment to marketing what is a major (RESIDUAL CURRENT DEVICES) ESV safety messages continue to stress electricity safety initiative. It is proposed to ESV continues to take every opportunity to the importance of obtaining Certificates of target other areas across Melbourne and promote the importance of installing safety Electrical Safety when work is completed. regional Victoria in the coming months to switches in properties – activities included New certificates were introduced to reflect the ensure more residents become aware of the screening television commercials and ESV corporate colours and to ensure that the benefits of the scheme for the protection of distributing brochures. format for electronic certificates were created their families and properties. following the establishment of ESV. The importance of safety switches is reflected The results of the targeted promotions were in the fact that they have been compulsory on Statistics for the sale of Prescribed and Non- still being assessed as this Annual Report the power circuits in new homes since 1991. Prescribed Certificates are provided under was being prepared. Early indications showed And, since 2001 they have been mandated “Installation Safety”. a reasonable increase in the level of interest on both the power and lighting circuits in new in the scheme. For instance hits on the homes and in older properties undergoing Chinese Lantern Festival Home Safety Inspection section of the ESV major renovation. ESV moved quickly to order the withdrawal website and the request for quotes increased of the electricity supply to the Zigong Lantern appreciably. Despite the legislation mandating safety Festival at Nunawading in February after switches in new homes and the evidence that a number of electrical problems had been The number of inspections assigned, they save lives, it is estimated that some 35% detected. It was ESV’s view that the festival inspections completed and ESV Home Safety of Victoria’s 1.6 million homes still do not have posed both a fire risk and a threat to public Inspection certificates purchased and lodged them installed on either the power or lighting and workplace safety. also more than doubled in some instances as circuits. a result of the promotions. The problems included exposed wiring, the While vigorous statewide and localised lack of earthing on some structures and the ESV accepts there is still some way to go public awareness campaigns have been fact that 240 volt cables were buried just five before the scheme and its benefits are and continue to be undertaken regularly, the centimetres below ground. Without ESV’s properly understood and appreciated by the installation rate of safety switches in older quick action there could have been a lethal general community. Naturally with any new properties continues to be disappointing from incident for workers or members of the public initiative of this sort, adoption of the scheme ESV’s perspective. visiting the festival. by the community takes time – but ESV has been encouraged by the results from the ESV provided the festival promoters with two promotions, and the interest shown by those options for remedying the electrical installation who have set up home safety inspection problems, both of which would have entailed companies and become registered as quite a deal of work. ESV made it clear that a inspectors. large range of electrical safety issues had to be remedied. ESV remains committed to marketing the scheme as much as possible. The promoters decided not to proceed with either option and the festival was dismantled. Electrical Home Safety Inspection scheme The festival had been due to transfer to South statistics at the end of 2005/06 were: Australia after a month or so in Nunawading – 26 Approved Home Safety Inspection – instead it returned to China. companies

– 52 Approved Home Safety Inspectors

– 4,570 hits recorded on the ESV website for Home Safety Inspection enquiries

– 241 quotes had been requested

– 73 Certiﬁcates for Electrical Home Safety had been purchased New Certiﬁcates of Electrical Safety

– 48 Certiﬁcates had been assigned, therefore representing 20% of quotes converted to jobs.

These statistics do not include the increased interest in the scheme generated by the promotions in the cities of Monash and Greater Geelong as mentioned earlier. The promotions were continuing until the end of August 2006. SAFE AND EFFICIENT ELECTRICITY 17 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT ENERGY EFFICIENCY ESV issued ten contracts and variations ELECTRICITY SAFETY ESV continued its successful administration to laboratories and service providers MANAGEMENT SCHEMES – on behalf of the Victorian Government – of for laboratory efficiency and standards Electricity Safety Management Schemes the energy efficiency and Minimum Energy development testing under the National Check (ESMS) ensure the safe operation of electricity Performance Standards (MEPS) program. Testing Program. generation and distribution companies and electrical installations through the development Activities included implementing the Electricity ESV sent invoices to four companies for and application of risk management principles. Safety (Equipment Efficiency) (Amendment) recovery of check test program costs from Regulations 2005 MEPS for storage water the ESV Trust Fund and used these funds for The operation of ESMS encourages heaters which commenced operation on further testing under the Equipment Energy companies to analyse the electrical safety 27 October 2005, and also implemented Efficiency Committee guidelines. hazards posed by their assets and operations the Electricity Safety (Equipment Efficiency) and to develop effective management (Amendment) Regulations 2006 – MEPS for ESV provided representation on the Standards processes and procedures as well as creating room air-conditioners and 3-phase motors Australia EL15 Committees and working an environment where companies assume which commenced operation on 1 April 2006. groups to amend standards for: more responsibility for safety rather than – Refrigerators and freezers relying on prescriptive legislation. Other activities in 2005/06: – Air conditioners – 1481 equipment efficiency and Minimum – Clothes washers This reporting period witnessed further Energy Performance Standards (MEPS) – Clothes dryers development of ESMS within the electrical were approved – Dishwashers distribution businesses in terms of risk – Input into other committees dealing assessment processes. ESV published – 12 electrical retailers were audited for with standards for lighting, commercial guidelines for undertaking such assessments energy labelling compliance refrigerators, power supplies, transformers, and the application process for variation – Explanatory letters were sent to organisers electric motors and electric water heaters. from prescriptive legislation. ESV approved of the RACV and HIA Home Show its first variation from prescriptive legislation ESV also hosted a high level Chinese application during this reporting period. exhibitions providing information about the delegation (Department of Environment & need to comply with the Electricity Safety Resources Conservation of the National ESV received two applications for approval Act and regulations and equipment energy Development and Reform Commission) study of an employer operated ESMS. labelling audits were carried out at both tour and a Thailand delegation (Thai Industrial events Standards Institute, Ministry of Industry) in A submission by Shell Refining (Australia) April 2006 and provided the participants with was assessed by ESV during the year and – The registration of seven appliance models was awaiting formal approval by the Victorian that failed the requirements of the National relevant presentations on equipment efficiency, testing and standards development. Government at the conclusion of the reporting Check Testing Program for energy efficiency period. Approval was granted in early and MEPS were cancelled. 2006/07. ESV is contracted as the Program Manager of the National Check Testing Program carried out on behalf of the Equipment Energy Efficiency Committee. Twenty-eight invoices, for approximately $60,000, were authorised from the Ministerial Council on Energy Fund.

One of the displays at the Zigong Lantern Festival at Nunawading 18 SAFE AND EFFICIENT ELECTRICITY ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT EQUIPMENT SAFETY A product supplied into the market which is Insulated pin plugs Audits subsequently found to be inherently unsafe Following many years of consultation and Constant audits and investigations by ESV through investigation and collection of a carefully planned implementation program, have assisted in stamping out the practice evidence and therefore not complying with new regulations finally came into force in April of importers attempting to circumvent the AS/NZS 3820 may be subject to a recall under 2006 permitting only electrical appliances requirements of the Electricity Safety Act and the Electricity Safety Act. This action may fitted with plugs with insulated live pins to put the general public in danger by attempting be restricted in the first instance to Victoria be sold throughout Australia. ESV issued to supply unapproved and potentially unsafe but all other states and territories may also a media release announcing the change. equipment. require the recall action to be undertaken in their jurisdiction. There were 38 electrical The requirement for insulated pins on plugs Over 100 point-of-sale audits were conducted equipment recalls conducted in 2005/06 was introduced to Australian Standards in at over 30 major retailers and 60 smaller around Australia with five initiated by ESV. 2000 as part of a nationally agreed strategy stores and market stands. by the electricity safety authorities of all states The recall process is administered by the and territories. The authorities agreed that Results showed 96% compliance with ACCC with advice from the state and territory the requirement should commence on 3 April marking requirements and also revealed some electrical safety regulators and is publicly 2005. The deadline was later extended to 3 unapproved items. In such instances action, available at www.recalls.gov.au. April 2006 in recognition of the large amount including Stop Sale Notices and recalls, has of what would have been affected stock been taken to ensure unapproved products The second scheme is the pre-market held by retailers. are not sold. approval scheme. A list of articles, primarily household appliances such as kettles, Retailers face fines of up to $20,000 for Essential safety requirements toasters, televisions etc, are also required to supplying appliances which do not have The foundation of Australian electrical undergo pre-market approval. This consists the insulated pins on plugs. equipment safety legislation is an essential of demonstrating that the appliance complies safety regime whereby electrical equipment with the specific product safety standard by The ESV media release said that suppliers, manufacturers, importers and way of a third party independent test report. manufacturers and retailers had been allowed retailers are responsible for ensuring that all a reasonable time to adjust to the new electrical equipment supplied or offered for It is an offence under legislation in all states requirement and therefore, there should not supply in Australia meets minimum safety and territories of Australia to supply or offer be any appliances with the incorrect plugs specifications. to supply “prescribed” classes of electrical still for sale. equipment unless the equipment is approved In Victoria these minimum requirements are by a (regulatory) approval authority or certified Campaign warning of the dangers called up in Section 54 of the Electricity Safety under a recognised certification scheme. of “Do It Yourself” installation of Act and Regulation 6 of the Electricity Safety electrical products (Equipment) Regulations. Those minimum Once approved, equipment of the class or During the reporting period, ESV mounted safety standards are clauses 4.1 to 4.5 of type may be supplied or on-supplied by a campaign warning that it is both illegal and AS/NZS 3820 Essential safety requirements any number of parties for the duration of dangerous for unqualified people to install for low voltage equipment. the approval provided it is identical to that electrical products such as power points, originally approved/certified and that it carries light fittings and electrical wiring. Briefly, the essential safety requirements are its allocated approval/certification mark. specified as follows. Electrical equipment shall:

– Provide for essential characteristics (ratings, Result Result Result Result Result warnings, instructions etc) to be marked Activity 2005/06** 2004/05* 2003/04* 2002/03* 2001/02* in English Equipment Safety Approvals submitted 1260 1295 1259 1,199 1,215 – Identify its supplier (trade name, mark etc) Total number of approvals in place 5896 5811 5191 5,729 5,547 – Be manufactured so it can be safely Number of products audited (approval) 1102 982 1029 1,002 1,013 assembled, installed and connected Notices to comply issued 105 68 83 90 55 – Be manufactured so that in use people Safety investigations 274 239 177 196 152 and domestic animals are protected against Safety recalls initiated 5 0 5 4 4 – Dangers from direct or indirect electrical contact Hazard alerts raised 6 0 1 3 4 – Dangerous temperatures arcs or radiation Incident reports raised 35 24 33 34 19 – Non-electrical danger Public safety warnings initiated 2 4 4 0 2 – Hazards caused by external inﬂuences. No. of days taken to approve fully compliant 9.7 16.2 8.0 12.6 11.0 approvals applications 13,680 10,670 10,422 9,445 6,437 Number of enquiries 2 0 1 N/A N/A Infringement Notices

* Figures from the former OCEI. ** ESV reporting from 1 July 2005 to 30 June 2006. SAFE AND EFFICIENT ELECTRICITY 19 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT The campaign involved the distribution of NETWORK SAFETY Laverton North Power Station posters and letters to hardware stores and Basslink DC Interconnector ESV has continued to assess the gas-fired electrical wholesalers throughout Victoria, and During this reporting period, ESV ensured that power station at Laverton North to ensure some follow-up audits to ensure the posters the undersea/overhead DC line associated compliance with the Electricity Safety Act were appropriately displayed in sections of with the Basslink project was designed, 1998 and Electricity Safety Network Assets stores where electrical products are sold. constructed and operated in accordance Regulations, together with the Major Hazards with safety standards. The Electricity Safety Facility Regulations. ESV had received reports that some hardware (Network Assets) Regulations were amended retailers are advising customers – who are not to accommodate DC interconnectors and The process required an independent expert licensed electricians or registered electrical promulgated in December 2005. assessment to determine compliance with contractors under the Electricity Safety Act the legislation and regulations. Based on the 1998 – on how to install these products. This Basslink was subsequently issued with completion of this assessment, ESV will then was inconsistent with the spirit of the Code of a Letter of No Objection to enable it to be issue a Letter of No Objection for connection Practice which covers the supply of electrical connected to the Victorian electricity grid. to the main electricity transmission grid. installation products to the general public. The interconnector was placed in service in April 2006. Electrolysis The letter warned that hardware retailers – and The Electricity Safety Act 1998 and the wholesalers who sold products to the general ESV also completed consultations to ensure existing Electricity Safety (Stray Current public – could be held liable for negligence if the ground voltage rise under fault conditions Corrosion) Regulations provide a framework injuries or death resulted from faulty installation were mitigated so that appropriate safety for protecting underground and underwater by unqualified purchasers where the retailer or standards for metal structures and pipelines structures from corrosion caused by stray staff member had provided advice on how the within the vicinity of Basslink were maintained. electrical currents. products should be installed. Wind farms The Act also establishes the Victorian To minimise or avoid the risk of liability, stores ESV continued to assess wind farms for Electrolysis Committee (VEC), defines its were advised to display the ESV posters and compliance with the Electricity Safety Act composition and nominates the functions refuse to provide any advice to customers on 1998 and Electricity Safety Network Assets it will perform. the installation of electrical products. Regulations. This process requires an assessment to determine compliance with As per requirements, during 2005/06 VEC ESV will continue to audit stores to ensure the legislation and regulations and, based completed its coordinated monitoring program compliance with the Code of Practice. on assessments, ESV then issues a Letter of the underground metallic structures (i.e. water, gas and oil pipes, telecommunications Fires of No Objection for connection to the main electricity supply grid. and power cables) across the Melbourne ESV continued its work with the Metropolitan metropolitan area to ensure the aims and Fire Brigade and the Country Fire Authority to During this reporting period, one wind farm functions of VEC were met. improve fire incident reporting – particularly at Wonthaggi was assessed and granted fires which could have resulted from gas and permission to connect to the electricity grid. Following the introduction of two new types electrical causes. Solutions are constantly Discussions continued with other proponents of trains with re-generative braking facilities being sought to reducing the number of of wind farms to ensure they are aware of on the electrified traction network, VEC has house fires. the requirements under the Electricity Safety been actively involved with train operators Act 1998 and regulations. in extensive testing to ensure the effective mitigation of adverse affects that have been experienced on the underground metallic structures owned by VEC members along the rail routes used by the new trains.

VEC also maintained a register of cathodic protection systems installed in Victoria to protect structures from corrosion.

The Committee has also approved and undertaken mitigation work to accommodate the extension of the tram system along the Burwood Highway in Melbourne’s east. Left Leading Bare Hand Lineman Discussions have also commenced on the Kimura Anderson of Transfield Services design of the mitigation works associated climbs a tower linking Basslink to the Latrobe Valley. with the Craigieburn rail extension in the north of the city. Below The wind farm at Wonthaggi 20 SAFE AND EFFICIENT ELECTRICITY ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT New “Blue Book” Electric Line Clearance Under the auspices of ESV, a new “Code This reporting period was the first full year of of Practice on Electrical Safety for Work on operation of the Electricity Safety (Electric Line or Near High Voltage Electrical Apparatus” Clearance) Regulations 2005, which provides – or Blue Book – was developed during the vegetation managers with flexibility to make reporting period by the Victorian electricity more sympathetic decisions relating to line industry’s Electrical Safety Committee. clearing in important and significant vegetation The new Code becomes effective from 31 areas. December 2006. The Regulations require management plans The Blue Book sets minimum standards for to be submitted to ESV annually for approval. electrically safe work on, near or in the vicinity All submissions were reviewed in depth of high voltage electrical apparatus, and is during the reporting period to ensure that they mandated by the Electricity Safety (Network capture the requirements contained in the Assets) Regulations 1999 and the Electricity current regulation. Safety (Installations) Regulations 1999. Audits conducted by ESV in the period Major changes in the revised Blue Book confirmed that transmission and distribution include: utilities were generally carrying out appropriate – Alignment of provisions with the National practices in regard to keeping trees clear of Electricity Network Safety Code standards high voltage powerlines in fire prone areas. for work on high voltage electrical networks, where appropriate To provide independent and wide ranging advice to ESV or the Minister for Energy – Definitions are aligned with the National Industries and Resources on matters relating Electricity Network Safety Code, where to the clearance of electric lines, legislation appropriate provides for an Electric Line Clearance Consultative Committee to be established. – The provision of a new section covering In this current period ESV facilitated the general safety requirements such as risk formation of a new committee. assessments, first aid, personal protective equipment, use of safety observers, fit state for work and electric fields

– Information on new limits of approach distances. They are now called safe approach distances and have a new method of application

– A requirement for regular testing of portable earthing devices has been added to testing of other safety equipment such as insulating Construction work on the mats, insulating gloves and switch sticks. Basslink transmission towers

Below Miriam Shapiro, Licensing Ofﬁcer SAFE AND EFFICIENT ELECTRICITY 21 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT LICENSING AND PROFESSIONAL DEVELOPMENT Licensing statistics

Result 10/08/2005 Result 01/07/2004 Result Result Result Activity - 30/06/2006 - 09/08/2005 2003/2004* 2002/2003* 2001/2002* Worker Standards Electrician’s Licence ‘E’ (new applications) 999 915 811 827 811 Electrician’s Licence ‘E’ (renewals) 4,459 5,282 3,456 3,479 4,555 Supervised Worker’s Licence ‘L’ (new applications) 221 312 383 302 273 Electrician (Supervised) Licence ‘ES’ (renewals) 75 109 396 601 110 Disconnect/Reconnect Worker’s Licence ‘D’ (new 452 480 627 644 607 applications) Disconnect/Reconnect Worker’s Licence ‘D’ 906 910 1,124 1,141 1,023 (renewals) “Unrestricted” Electrical Mechanic’s Licence to 0 5 8 16 16 Electrician’s Licence ‘UN’ (changeover) Occupier’s Licence ‘O’ (new applications) 2 0 0 0 0 Occupier’s Licence ‘O’ (renewals) 1 1 11 16 4 Registration of Spotters (new) 1,069 - - - - Registration of Lineworkers (new) 269 - - - - Total number of licences issued 7,115 8,208 6,915 7,026 7,399 Total number of licences in place 35,228 34,875 34,128 33,543 33,028 Electrical Inspector’s Licence (new applications) 16 9 38 28 13 Electrical Inspector’s Licence (renewals) 286 337 303 279 277 Total number of inspector’s licences issued 302 346 341 307 290 Total number of inspector’s licences in place 318 326 318 309 292 Registration of electrical contractor (initial registration) 626 850 802 555 493 Registration of electrical contractor (renewal of 7,289 8,208 7,783 6,837 7,370 registration) Total number of registrations issued 7,915 9,058 8,585 7,392 7,863 Total number of registrations in place 8,848 8,712 8,330 8,029 7,733 Random phone audits of registered electrical 7,773 6,020 6,578 6,760 3,754 contractors Random phone audits of electrical workers 8,245 8,418 9,684 9,776 2,078 No. of meetings of the Electrical Licensing 6 6 6 5 6 Registration Advisory Committee No. of days taken to approve fully compliant 2.5 2.09 2.18 2 3.3 registration applications No. of days taken to approve fully compliant licence 2.5 2.2 2.7 3 3 applications Total number of Electrician Licences 25,386 24,832 24,087 23,318 NA Total number of Supervised Worker’s Licences 1,244 1,276 2,079 2,274 NA Total number of Disconnect/Reconnect Licences 7,865 7,973 7,843 7,583 - Total number of Occupiers Licences 34 33 35 37 NA Total number of registered Spotters 2,075 - - - - Total number of registered Lineworkers 2,244 - - - -

* Figures from the former OCEI 22 SAFE AND EFFICIENT ELECTRICITY ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Technical Supervisor Policy Communicating Licensing issues Licensed Electrician Assessment The policy to enable technical supervisors ESV continued to communicate with ESV continued to work with the EPIC Industry to be appointed by registered electrical Registered Training Organisations (RTOs) to Training Board to enhance the new electrical contractors based on demonstrated ensure that they understand the requirements licensing assessment system in Victoria. The experience and competency was introduced of the licences for which they provide training Licensed Electricians Assessment (LEA) has in May 2004 and has continued to work and assessment. improved the flow of apprentices through well for the industry. the system to become qualified electricians The ESV licensing section deals with an without any “watering down” of the high Licence Renewal Policy average 1,500 phone calls each month from standards required. A new policy has been introduced to ensure stakeholders wishing to discuss issues relating that the skills of Victoria’s electricians are to RECs, Licensed Electrical Workers, the use, As reported in last year’s OCEI Annual Report, maintained at the highest possible standard sale and dispatch of Certificates of Electrical if an apprentice passes two parts of the three and meet the requirements of the Electricity Safety, UserID and PINs, the Interactive Voice part LEA assessment and fails the third, he or Safety (Installations) Regulations. Response (IVR) system, electrical wholesalers she will only need to re-sit the unsuccessful selling Certificates of Electrical Safety and part. Electricians who have left the industry and other general queries. not renewed their licences for the past five Further, to improve the quality of training and years or more are now required to successfully ESV continued to provide input into competency for electrical apprentices, ESV complete the appropriate assessment before the national review of the National has contributed to the development of an a new electrician’s licence is issued. Electrotechnology Training Package, acceptable “profiling system” for apprentice particularly for apprentice electricians. electricians in conjunction with the industry. Disconnect/Reconnect Licences Ongoing discussions were held with Office ESV is continuing to direct significant of Training and Tertiary Education (OTTE), Mutual recognition of licences additional focus to the issuing of Disconnect/ industry stakeholders and RTOs of the need Director of Energy Safety Ken Gardner Reconnect or ‘D’ Licence. for the new training package to be introduced represents ESV on COAG’s Electricians, Air Conditioning and Refrigeration Mechanics The ‘D’ Licence is a restricted licence which in order to streamline the training and the issuing of licences. Action Group which is charged with must support a suitable primary work function, developing a framework for the introduction such as plumbing, mechanical fitting or Discussions have also taken place with of mutual recognition of electrical qualifications gasfitting. Such licences enable tradespeople, OTTE about a suitable auditing regime for across all Australian states and territories. other than licensed electricians, to carry out RTOs once the new training package was restricted electrical work when conducting implemented. COAG has agreed that by June 2007, their normal occupation. The electrical all jurisdictions will have achieved full and work is restricted to the disconnection and Further, ESV continued to consult and effective mutual recognition of occupational reconnection of the same type and size communicate widely through forums such as: licenses for general electricians, general of electrical equipment or components of – Electrical Licensing and Registration plumbers, motor mechanics, refrigeration and electrical equipment, such as, the element Advisory Committee (ELRAC) air-conditioning mechanics, carpenters and of a hot water service. joiners, and bricklayers. – Industry forums with NECA and the ETU In the past there has been a significant There is also agreement by governments number of ineligible applicants for ‘D’ licences – Development of new specialised training that by 31 December 2008, all jurisdictions as their work did not qualify under the course frameworks will have achieved full and effective mutual suitable primary work function category and – Foundations for Safety Committee chaired recognition of occupational licences across demonstrated significant lack of compliance by Worksafe Victoria and is a tripartite all vocationally trained occupations. with the Electricity Safety Act and Electricity committee Safety (Installations) Regulations through ESV also worked with the industry, COAG and not using Certificates of Electrical Safety. – Marine Safety Victoria Trades Recognition Australia to assimilate into Applications continue to be rejected for Australia overseas skilled workers such as these reasons. – Department of Primary Industries – Mines lineworkers, electricians and electrical fitters. and extraction industries When a disconnect/reconnect licence is Registration of lineworkers issued, a letter is sent to the licence holder’s – Trade Nights ESV worked with the Victorian electrical industry to progress the issuing of Passports employer to stress the need for the licence – TAFE Senate for electrical teachers holder to comply in full with the Electricity to skilled workers, such as lineworkers, to Safety Act and Electricity Safety (Installations) – Electroskills Council and Electricity Supply ensure that their skills are recognised across Regulations. Industry Council under the chair of the EPIC all states/territories by employers. Industry Training Board ESV is investigating the possible introduction – Licensed Electrician Assessment Steering of the licensing of lineworkers. Committee ESV also worked closely with the traction – Profiling Steering Committee. industry, in both tram and rail areas, to assist in the development of a suitable registration system for traction workers. 23 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

Gas Technical Regulators Committee Regulators Gas Technical of Energy Deputy Director the through ESV, of the Gas Technical is a member Safety, up of Committee which is made Regulators for gas safety responsible technical regulators state and territory, matters in each Australian and New Zealand. a consistent towards The Committee works and a common environment regulatory in gas safety between jurisdictions approach and technical activities.

(left to right) Luis Mayo (Gas Safety Analyst/Auditor) and (including VENCorp) Industry consolidation and restructuring has Industry consolidation and restructuring audits to be carried required increasingly of asset out interstate and at the premises owners, asset managers and fulfillment contractors to complete the audit process. compliance audits to confirm that gas safety being managed by gas companies to risks are practicable. a level that is as low as reasonably ESV conducted the following 45 safety case audits: – 16 transmission pipeline company audits – 6 distribution pipeline company audits – company audits 8 natural gas retail – 11 LP Gas company audits – 2 land fill gas pipeline company audits – 1 complex gas installation audit. During this reporting period there were 33 were period there During this reporting overseen by ESV. accepted safety cases safety cases were While no new gas business a number of safety accepted during the year, in changes amended to reflect cases were mergers. These through ownership structure Energy Australia / International Power were Gas / Origin. Additionally, Mitsui and Treston the complex safety case for Bluescope Steel’s gas installation at its Hastings steel works was accepted by ESV. of safety case ESV continued its program SAFETY CASES policies sets out the safety A Safety Case developed processes and business to by gas companies and implemented gas is that ensure demonstrate how they safely to the Victorian community. provided Ignazio Cannizzo (Gas Safety Adviser) discussing a safety case Below

Complex Gas Installation Below at Coode Island SAFE AND EFFICIENT GAS EFFICIENT AND SAFE There were no gas related fatalities recorded no gas related were There in Victoria in 2005/06. installation code, appliance standards standards installation code, appliance and gas quality standards. SERIOUS INCIDENTS Among other work, ESV contributed Among other work, ESV work standards extensively to national appliance on pipelines, gas networks, It has been a busy and successful a busy and successful It has been and roles all of ESV’s year across gas safety. to relating responsibilities have been met. All commitments 24 SAFE AND EFFICIENT GAS ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT SAFETY OF GAS APPLIANCES Keeping gas appliances working safely In support of its community messages Certification of gas appliances and in good repair and television campaigns promoting service, ESV has accepted the SAI Global certification In June 2006 ESV broadcast a new maintenance and gas safety checks, ESV has scheme which will provide an alternative television commercial warning of the need for integrated complementary information and to that operated by The Australian Gas regular servicing and safety checks for gas advice to meet the needs of specific groups, Association. Certifying organisations are appliances. An underlying message from the including: required to have JASANZ or equivalent commercial warned of the danger of carbon – Increasing community awareness of the acceptance to ensure an ongoing auditing monoxide poisoning from poorly maintained threat and symptoms of carbon monoxide process of their procedures. Laboratories and ventilated gas appliances. poisoning which test on behalf of the certifying organisation are required to have NATA Broadcasting the commercial represents just – Addressing gas safety in the private rental accreditation. one stage of the ESV campaign to alert the housing sector through property agents and general community and the medical profession landlords The Australian Standards for Type A gas to be aware of carbon monoxide poisoning appliances often lag the certification needs – the predominant cause of fatality associated – Minimising the indoor use of outdoor under the strict conformity requirements of with gas use in Victoria and Australia over the heaters the current regime and ESV has provided last 10 years or so. – Addressing inadequate servicing of gas regulatory acceptance of a number of appliances variations and innovations. Nationally, the gas Following a fatal incident in Mornington in appliance safety regime remains under review 2003 involving an open flued instantaneous – Increasing the awareness of persons by the Gas Technical Regulator’s Committee gas water heater (IGWH) in the toilet of a engaged in gas appliance servicing of the and ESV has provided extensive input to Housing Commission of Victoria design need for rigorous checking of ventilation, this review through its active participation house, ESV, and its predecessor OGS, has flue systems and flue performance in committee work and direct liaison with been conducting campaigns to remove these other state regulators. heaters from toilets and bathrooms in these – Overcoming the expectation that very types of houses. old appliances will perform safely forever. Sale of gas appliances ESV continues to monitor appliances offered The installation of IGWHs in toilets and Unsafe situations and gas appliance for sale to ensure they meet safety standards bathrooms is now prohibited. installation and are certified under an accepted scheme. ESV introduced a new scheme for identifying In Victoria some 57,000 houses built by the unsafe situations and to provide guidance and Shops and showrooms continue to account Office of Housing (OoH) and its predecessor clarity for gasfitters. This scheme introduces for the majority of gas appliances sales but the Housing Commission of Victoria have new terms “Immediately Dangerous” and there are new channels emerging, in particular been identified as a major potential source “At Risk” to classify unsafe situations and the internet. of houses containing prohibited IGWH definitions to assist their reporting. The installations. Of these 23,000 were sold scheme provides a simple “one stop shop” During the reporting period ESV conducted and are now in private hands and 34,000 for reporting via the Gas Emergency sixty point-of-sale compliance audits at are still managed by OoH. Telephone Service 132 771. appliance retail outlets. The vast majority were selling certified appliances. A number of OoH has a program to remove all IGWHs warning letters were issued regarding the need from toilets, bathrooms and laundries in their for certification and some instances have been properties and plans to have them removed by referred to ESV’s Investigations & Prosecutions July 2008. This work is now progressing and section for further action. was subject to an ESV audit in May.

Installation of gas appliances ESV now proposes to undertake appropriate The safety and quality of most residential gas programs to determine an estimate of how appliance installations, conducted by licensed many privately owned former Housing plumbers and gasﬁtters, is administered by Commission properties contain the open the Plumbing Industry Commission (PIC) – the ﬂued instantaneous gas hot water heaters. registration body for these workers. ESV is responsible for gas safety and oversees the gas safety outcomes by auditing the PIC’s procedures. One audit was conducted during this reporting period.

Gas Installation testing SAFE AND EFFICIENT GAS 25 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Commercial outdoor heater Burns in commercial kitchens campaign and LP Gas safety campaign ESV was involved with other organisations in Responding to safety concerns resulting the development of new ﬁrst aid guidelines from the proliferation of outdoor heaters used aimed at reducing the increasingly high in public places, ESV, in cooperation with number of burn injuries recorded in the Metropolitan Fire Brigade, Country Fire commercial kitchens. The guidelines aim Authority and WorkSafe, developed practical to inform chefs and kitchen staff what they safety guidelines and a major communications should do if burned and how the burns should campaign aimed at the catering services be treated. industry and local councils. The guidelines were launched as part of Injury The campaign was underway as ESV was Prevention Week in October 2005 by The ofﬁcially established. Alfred Hospital’s Victorian Adult Burns Service (VABS), in conjunction with ESV and WorkSafe In the “Take on the Critics”’ campaign, over Victoria. They were also endorsed by 12,000 Victorian restaurant, café and bar Restaurant & Catering Victoria, The Australian owners received practical advice on how to Hotels Association, Clubs Victoria and the prevent serious accidents involving LP Gas Victorian Cookery Educators Network. and outdoor heaters. The hospitality industry is a major employer in The campaign introduced guidelines which Victoria, with the prevention and treatment of provide business owners and staff with a injuries in kitchens a high priority. Burn injuries safety standard, as well as practical steps cost around $8 million per year in WorkCover for the management of occupational health claims. The guidelines consist of four simple and safety, public liability and business risks steps - stopping the burn process, cooling the relating to LP Gas and portable outdoor burn surface, covering the burn and seeking heaters. medical advice.

The guidelines emphasised that ﬁxed piped Since 2002, there has been a steady rise installations are preferable to portable in burn admissions to hospital emergency appliances as they avoid the problem of departments across Victoria. From 2002 storing and handling LP Gas cylinders. to 2004, 138 people were admitted to Alternatives to discourage the dangerous emergency or casualty departments with practice of decanting LP Gas from one burn injuries. More than half were under cylinder to another were also addressed within the age of 25 and two-thirds were male. the guidelines. Copies of the guidelines are available by Portable outdoor heaters have also introduced contacting The Alfred on (03) 9276 2266 a new element for local councils to manage or download a copy from http://www. Below A scene from the commercial when dealing with footpath trading. Guidelines baysidehealth.org.au/uploads/ outdoor heater and LP Gas safety campaign have been presented to councils across departmentﬁles/269_BurnFirstAid.pdf. Victoria, and have already been adopted by the Cities of Yarra, Port Phillip, Melbourne and Moonee Valley through inclusion in footpath trading policies.

Restaurant and Catering Victoria, the peak industry body representing restaurants, cafes, caterers and food service businesses, has also endorsed this project and has actively worked with ESV to promote the key messages throughout its industry.

The campaign will be intensiﬁed with the introduction of the revised Australian Standard AS1596 which relates to the storage and handling of gas cylinders. 26 SAFE AND EFFICIENT GAS ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT National Response Centre EMERGENCY CALL STATISTICS A single point of contact was established in 2003/04 for all gas users and the Total calls to call centre 2005/06

general public to report escapes or other 5000 100% gas emergencies. The 132 771 number 132 771 Call 4312 4553 has progressively been introduced to 4500 KPI Result 99% 3906 telephone directories where it has been 4000 3580 98% 3372 3717 3438 3532 increasingly accepted and used to report gas 3500 97% 3246

emergencies. NO. OF CALLS 2850 KPI Results (%) 3000 2879 96% 2665 Response to the emergency calls continue to 2500 95%

be provided by Victoria’s gas distribution and 2000 94% LP Gas businesses to performance standards speciﬁed by ESV. 1500 93% 1000 92% Statistics for this service are detailed as 500 91% follows: 0 90% Includes data from the former OGS. Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 MONTH

Total calls to call centre (Quarterly Historical Data)

14000

2003-04 2004-05 12624 12237 2005-06 12000 11155 10461 10264 132 771 Calls 9846 9880 10000 KPI Result 8958 8394 7996 NO. OF CALLS 7740 8000 6913

6000

4000

2000

0 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06

Emergency Call Type

4500 4190

4000 43.24% Location (34) Street Excavations (8) Fire Appliance (7) 3500 Fire House (6) Police and/or Fire Brigade (5) Explosion (3) 3000 Critical Supply Loss (2)

NO. OF CALLS Dangerous Gas Installation (1) LPG Escape Business (1) 2500 Emergency (1)

2000 1751 18.07% 1491 1500 15.39% 1121 1035 1000 11.57% 10.68%

500 103 0 Eureka Tower - a view of Escape Meter Escape Major Escape Major Street Escape Street Escape Other Other 1.06% Melbourne and its gas flues CALL TYPE SAFE AND EFFICIENT GAS 27 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT INDUSTRIAL AND COMMERCIAL Gas utilisation at Major Hazard Facilities Complex gas installation safety case APPLIANCE INSTALLATIONS Excellent working relationships continued Following a number of years of joint Complex Gas Appliance Inspections with the WorkCover Major Hazard Division development, ESV has accepted a Safety ESV monitors and assesses the safety and through the regular exchange of information, Case made by Bluescope Steel for the integrity of all new and modified industrial including quarterly meetings. ESV continues to operation of the complex gas installation at and large commercial appliances. These contribute to the Division’s strategic planning Hastings Works. This is the first application range from combustion systems on gas for major hazard facilities and assisted the of a safety case to the operation in a major turbines, large processing furnaces as well as Division in its Facilities Post-licence Oversight manufacturing or industrial premises in unattended steam boilers and also extend to Program inspections concerning complex Victoria. ESV acknowledges the commitment include simpler commercial gas appliances gas installations. of Bluescope Steel to their safety case in restaurants etc. approach that is now providing systematic ESV continued to support WorkCover in the management of gas safety at the steel works. There were 1,175 new and modified Type assessment of large gas fired appliances at a B appliances reviewed for acceptance number of major hazards facilities throughout The Commonwealth Games during this reporting period and 245 Type Victoria. These included completion of the and other major events A appliances were accepted under the Bass Gas Lang Lang gas production facility, LP Gas is the energy source of choice for Australian Gas Association’s Tier Two the Woodside Otway gas production facility, cooking and heating at major public events. certification scheme. and the continued work at Esso Longford In the interest of public safety, gas safety on the fired heater upgrade. audits are conducted throughout Victoria to Major Industrial Appliance Installations ensure that organisers and exhibitors comply Gas fired power generation projects have Complex gas installations with relevant safety standards and regulations. been a significant feature of workload during ESV monitors and assesses the safety the year where ESV has worked closely with and integrity of the majority of new and The standout event in 2006 was the Snowy Hydro’s Laverton North Power Station, modified complex gas installations through Commonwealth Games where ESV supported consisting of two gas fired turbines that have the Gasfitting Notice system. Complex gas organisers at many venues including the a combined generating capacity of 300 MW. installations include high rise buildings, Games Village where three portable gas ESV also assessed several new biogas fired factories and commercial buildings. kitchens satisfied the athlete’s needs preparing reciprocating engines at Melbourne Water’s some 24,000 meals a day! Werribee sewage treatment works for AGL. A total of 4,519 Gasfitting Notices were received in the reporting period. During the year another 60 events were Other installations included refinery gas audited including the Formula 1 Grand Prix, fired heaters for Mobil Oil, Altona that were A number of significant installations took place Melbourne Cup, AFL Grand Final, Bunyip part of Mobil’s “clean fuels project”, several including the redevelopment of the MCG Show, Foster Show and the Ararat Cup. large 100GJ/h gas fired bitumen plants, the which involved extensive catering facilities, Iluka Mineral Sands Project at Hamilton that heating and hot water services. The brochure – “Gas Safety Self-Check List for Caterers, Food Outlets and Others includes a battery of specialised fluid bed sand High rise development within the city has dryers, McCain’s Ballarat 25 MW steam boiler, at Major Events” – was distributed to another continued with gas providing residential and 170 event organisers. as well as several integrated printing and commercial energy demands. Major projects innovative energy saving regenerative included the Eureka Tower, Queen Victoria thermal oxidisers. Building, the Waterfront Towers and Victoria Point at Docklands.

ESV also accepted a number of industrial installations supporting major infrastructure development. These projects included the Murray River crossing at Albury Wodonga where LP Gas is being utilised to cure structural concrete sections and the Iluka Mineral Sands Project at Hamilton where natural gas is used in the drying processes. The Commonwealth Games Fish on the Yarra River 28 SAFE AND EFFICIENT GAS ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT STANDARDS DEVELOPMENT EDUCATION AND DEVELOPMENT ENERGY EFFICIENCY National Standards Presentations and seminars AND SUSTAINABILITY National safety standards for gas appliances ESV conducts educational presentations At the request of the Ministerial Council and installations are vital for gas safety. ESV to deliver the latest in gas-related news, on Energy, ESV has worked closely with continues to make a large contribution through technology, safety recommendations and the Australian Greenhouse Office and chairing or participating in key committees regulations to the industry. Sustainability Victoria to prepare a national and submitting technical comments with strategic plan for the enforcement of gas respect to the following gas standards and Over the past year, 48 presentations were appliance and equipment energy efficiency. codes: Commercial Catering Equipment, made to TAFE apprentices, gasfitters, council Components, Installations, Paint Spray Booths environmental health officers, high-rise building This has seen the formation of the Gas and Quality of Gas Appliance Servicing. consultants, specialist trade conventions and Appliance and Equipment Energy Efficiency Department of Human Service inspectors. Committee and the release of the draft work An ESV officer chairs each of the following ESV recognises the assistance of the plan “Switch on Gas” for public comment. committees: Fuel-fired Appliance Code, Master Plumbers and Mechanical Services Industrial & Commercial Gas-Fired Appliances, Association and gas distribution business in Gas Industry Emergency Exercise Indigo and Commercial Gas Fired Appliances and facilitating presentations at many metropolitan Each year, ESV and VENCorp organise Components. and rural venues. an exercise designed to test Victorian gas industry participants’ ability to respond Development and issues management Topics covered issues such as gas effectively to a major gas supply emergency. ESV has assisted the certifying organisations installations and responsibilities, changes where existing standards were found to be to Australian Standards, supply pressures, The 2006 exercise, “Exercise Indigo”, involved unsuitable or outdated due to rapid advances gas use in commercial premises, customer a scenario where a large morning gas in technology and building development. safety, gas in mobile catering vehicles and demand exceeded the supply capacity of gas environmental effects of gas usage. distribution networks resulting in loss of supply Technical Notes, guidance and to customers across the metropolitan area. interpretation AS 5601 Gas Installations and other The exercise focused on testing industry associated standards deal with complicated mobilisation during intermediate scale and highly technical issues which at events, communication between businesses times require some clarification or further and between industry and government, explanation. coordination of media responses and the operation of the Gas Emergency Management During this reporting period ESV developed Group. The exercise was also used to trial a number of new Technical Notes the new web-based secure communication and Information Sheets which provide platform. interpretations and explanations of some of the most common issues. These easy to Participant and observer responses indicated understand documents provide guidance that the exercise was a success, particularly in achieving compliance with legislative and noting the improvement in communication safety standards. through the web-based system. Following the exercise, a report highlighting improvement recommendations was distributed to industry participants for application across business and operational systems and into emergency action plans.

Snowy Hydro Gas Fired Electricity Generation at Laverton North 29 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

1 5 4 1 60 33 15 0.4 5.3 9.7 245 0% 0.01 96% 97% Actual 4,519 1,175 100% 100% 100%

– – – 4 5 4 2 0 0.5 250 0.40 Target 95% 95% 95% 95% 95% 95% 3,600 1,400 2005-06

No. of type A appliances assessed (Australian Gas No. of type A appliances assessed (Australian Association Tier 2) days to complete Tier date Average 2 from by ESV and appliance application received operational Point of sale inspections/audits installations audited by PIC % of standard installations found defective on PIC % of standard audits No. of ESV audits of PIC audit process Industry presentations presentation TAFE installation inspections No of non-standard installation defect per non standard Average inspection Notes items1 Two tested both failed. Both have been actioned. Safe Materials, Components and Appliances Components and Safe Materials, Outcome and Measures Electricity Recalls (number) for safety Compliant equipment submitted (percentage) approval tested for safety Compliant equipment check (percentage) outlets display in retail Electrical appliances on (percentage) marking with an accurate approvals for energy Compliant equipment submitted (percentage) efﬁciency approval Compliant equipment check tested for energy efﬁciency (percentage) outlets Electrical appliances on display in retail with an accurate energy rating label (percentage) Gas Appliance and Installations B appliance submissions (assessed/ No. of Type inspected) B appliance submission defects per Type Average completed

7 3 3 0 0 67 76 25 508 546 142 Actual 2,544

0 0 0 0 0 0 0 0 0 0 0 1 Target 2005-06

relate both to areas. Gas related fires (number) fires Gas related Notes The total of the figures for incidents and injuries for Safe Networks and Safe Installations and Appliances may be greater than the total figures for ESV because some incidents Gas involved suicides Gas involved injuries and New Zealand (3 year rolling average/mill) and New Zealand (3 year rolling Gas – Supply and Use Gas caused deaths injury (number) (number) fires Electricity-related to other Australian States ESV ranking compared Electricity involved serious incidents without injury Electricity involved serious (number) incidents without Electricity involved non-serious Electricity suicides (number) injuries (number) Electricity involved serious injuries (number) Electricity involved non-serious Outcome and Measures Use Electricity – Supply and (number) Electricity caused deaths CORPORATE PERFORMANCE MEASURES PERFORMANCE CORPORATE Practice and Best Standards PERFORMANCE MEASURES PERFORMANCE 30 PERFORMANCE MEASURES ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Skilled Workforce Safe, Secure and Efficient Networks,

2005-06 Facilities and Installations Outcome and Measures Target Actual 2005-06 Electricity Outcome and Measures Target Actual Workers Working on the Network Electricity Compliant transmission company line workers 95% 95% Safe Networks (percentage) Electricity caused deaths (number) 0 4 Compliant distribution company line workers 95% 95% Electricity suicides (number) 0 0 (percentage) Electricity involved serious injuries (number) 0 16 Workers Working on the Installations Electricity involved non-serious injuries (number) 0 259 Compliant licensed electrical inspectors 95% 100% Electricity involved serious incidents without injury 0 16 (percentage) (number) Compliant registered electrical contractors 95% 52% Electricity involved non-serious incidents without 0 452 (percentage) injury (number) Compliant licensed electrical installation workers 95% 70% Electricity-related ﬁres (number) 0 1,269 (percentage) Safe Installations & Appliances Compliant inspection companies (percentage) 95% 100% Electricity caused deaths (number) 0 3 Compliant prescribed electrical work (percentage) 99% 100% Electricity suicides (number) 0 3 Compliant non-prescribed electrical work 95% 94% (percentage) Electricity involved serious injuries (number) 0 51 Electricity involved non-serious injuries (number) 0 249 Electricity involved serious incidents without injury 0 60 (number) Electricity involved non-serious incidents without 0 95 injury (number) Electricity-related ﬁres (number) 0 1,275 Properties with safety switches installed 65% 60% (percentage)

Notes The total of the figures for incidents and injuries for Safe Networks and Safe Installations and Appliances may be greater than the total figures for ESV because some incidents relate to both areas. PERFORMANCE MEASURES 31 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Safe, Secure and Efficient Networks, Educated Community and Safety Partners

Facilities and Installations 2005-06 2005-06 Outcome and Measures Target Actual Outcome and Measures Target Actual Community Gas Reach of public awareness campaign 95% 86% Gas Networks (percentage) Gas caused deaths 0 0 Recall of electricity safety messages (percentage) Gas involved suicides 0 0 “Look Up and Live” (regional and rural Victoria only) 95% “Safety Switches Save Lives” 82% Gas involved injury 0 2 “Always Treat Gas with Respect” 67% Gas Supply “Don’t Take Electricity for Granted” 64% “Don’t Do Electrical Work Yourself” 73% Number of leak repairs/km/year 1.1 1.181 “Arrange a Home Safety Inspection” 45% Number of outstanding leaks/km 0.15 1.191 Damage to assets <1,050 kPa 3,600 3,5141 Professional Organisation Damage to assets >1,050 kPa 0 0 2005-06 Emergencies > Level 2 13 2 Outcome and Measures Target Actual Loss of supply affecting > 5 customers 25 66 Financial Loss of supply affecting > 100 customers 2 2 Expense to income ratio (number) 1.04 1.01 Loss of supply affecting > 1,000 customers 0 0 Current asset to liability ratio (number) – 1.36 No. of approved safety cases – 33 Income on target (percentage) 95% 102% No. of safety case audits per company per annum Operating expenditure on target (percentage) 95% 98% – Natural Gas Transmission & Distribution 2 1.69 Capital on target (percentage) 100% 82% – Other 1 1.33 Industry levies to total revenue (percentage) 44% 46% – Retail 1 1 – LPG 1 1.14 Total compliance costs to certiﬁcate sales 49% 49% (percentage) Emergency management exercises per company 2 0.711 per year Human Resources % of priority ‘A’ emergency calls responded Workforce availability 98% 98% to within 60 minutes Lost time injuries 0 2 – Metropolitan BH 98% 97%1 Motor vehicle accidents 0 3 – Metropolitan AH 98% 93%1 – Country (all hours) 98% 95%1 Employees retained 95% 84% Gas Use Information Technology Gas caused deaths 0 0 Hardware performance (percentage) 95% 98% Gas involved suicides 0 0 System software performance (percentage) 95% 98% Gas involved injury 18 23 Application software performance (percentage) 95% 98% Investigations into breaches of Act and 50 37 Regulations Reports of unsafe installations 140 1074 Reported ﬁres/explosions/asphyxiation – Gas caused 110 47 – Gas directly involved 180 95 – Gas incidentally involved 20 61 – Gas not involved 30 56 – Cause unknown 45 10 – Total 385 2693 No. of consultative workshops – 6

Notes 1 Information given quarterly 2 Upstream 3 Greatly decreased reporting with insufﬁcient detail to process incidents 4 Incomplete data from ﬁre authorities 32 FINANCIAL STATEMENTS CONTENTS ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT OPERATING STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006 33

BALANCE SHEET AS AT 30 JUNE 2006 34

STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE PERIOD ENDED 30 JUNE 2006 35

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2006 35

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE 36 YEAR ENDED 30 JUNE 2006:

NOTE 1: Summary Of Significant Accounting Policies 36 NOTE 2: Revenue 37 NOTE 3: Depreciation And Amortisation 37 NOTE 4a: Employee Benefits Expense 37 NOTE 4b: Other Expenses From Ordinary Activities 38 NOTE 5: Current Assets – Receivables 38 NOTE 6: Non-Current Assets – Receivables 38 NOTE 7: Non-Current Assets – Plant And Equipment 38 NOTE 8: Non-Current Assets – Intangibles 38 NOTE 9: Current Liabilities – Payables 38 NOTE 9a: Current Liabilities – Provisions 39 NOTE 9b: Non-current Liabilities – Provisions 39 NOTE 9c: Employee Benefits 39 NOTE 10a: Cash Flow 39 NOTE 10b: Cash Assets 39 NOTE 11: Financial Instruments 40 NOTE 12: Equity 40 NOTE 13: Contingent Liabilities 41 NOTE 14: Auditors’ Remuneration 41 NOTE 15: Commitments For Expenditure 41 NOTE 16: Superannuation 41 NOTE 17: Ministers And Accountable Officers 41 NOTE 18: Remuneration Of Executives 41 Accountable Officer’s and Chief Finance and Accounting Officer’s Declaration 42

AUDITOR-GENERAL’S REPORT 43

33 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

(403) ($’000) (140) (7,360) (1,827) (7,154) 16,604 16,604 (16,744) Period Ended 30 June 2006

2 3 4a 4b 12b Notes

The above Operating Statement should be read in conjunction with the accompanying notes Net result from operating activities from Net result Depreciation & Amortisation Depreciation activities ordinary Other expenses from EXPENSES Employee beneﬁts expense Compliance Audits REVENUE FROM ORDINARY ACTIVITIES REVENUE FROM ORDINARY activities ordinary Revenue from Total FOR THE PERIOD ENDED 30 JUNE 2006 30 JUNE ENDED THE PERIOD FOR OPERATING STATEMENT OPERATING 34 BALANCE SHEET AS AT 30 JUNE 2006 27

28 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT 30 June 200629 Notes ($’000) CURRENT ASSETS Cash Assets 10b, 11 4,514 30 Receivables 5, 11 2,169 32 Accruals 76 32 Total Current assets 6,75933 33 NON-CURRENT ASSETS 33 33 Receivables – Rental Bond 6, 11 252 33 Plant and equipment 7 88234 Intangibles 7a 28834 Total Non-current assets 1,42234 34 34 Total assets 8,181 34 34 CURRENT LIABILITIES 35 Payables 8, 11 2,08635 Provisions 9a 2,90235 36 Total Current liabilities 4,988 36 36 NON-CURRENT LIABILITIES 36 Provisions 9b 3636 Total Non-current liabilities 3637 38 Total liabilities 5,024

Net Assets 3,157

EQUITY Contributed Capital 12a 3,610 Accumulated Surplus 12b (453)

Total equity 12c 3,157

Contingent Liabilities 13 Commitments for expenditure 15

The above Balance Sheet should be read in conjunction with the accompanying notes 35 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

0 872 134 971 (140) (313) ($’000) (752) (471) (164) ($’000) (635) 3,610 3,610 3,470 4,514 4,178 4,178 4,514 (7,884) (7,499) 16,100 INFLOWS Period Ended (OUTFLOWS) Period Ended 30 June 2006 30 June 2006

12a 12b 12b Notes

10a 10b Notes

This Statement of Cash Flows should be read in conjunction with the accompanying notes Cash at the beginning of the financial period THE END OF THE FINANCIAL PERIOD CASH AT NET INCREASE/(DECREASE) IN CASH HELD: Transfer of funds from merged entities of funds from Transfer financing activities Net cash (inflow) from Net cash (outflow) from investing activities Net cash (outflow) from CASH FLOWS FROM FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Payments for plant and equipment Additions of intangibles Net cash inflow/(outflow) from operating activities Net cash inflow/(outflow) from Interest received Interest Payments to suppliers and employees Payments to employees Receipts from customers (exclusive of goods and services tax) customers (exclusive of goods and services Receipts from ATO from recovered Goods and Services Tax paid to ATO Goods and Services Tax CASH FLOWS FROM OPERATING ACTIVITIES: CASH FLOWS FROM OPERATING Total Recognised Income and Expense for the period Recognised Income and Total of Errors Correction The Statement of Recognised Income and Expense should be read in conjunction with the accompanying notes. Transfer of Net Assets from Prior Organisations from of Net Assets Transfer in Equity Directly Net Income Recognised for period Net result STATEMENT OF CASH FLOWS OF STATEMENT FOR THE PERIOD ENDED 30 JUNE 2006 FOR THE PERIOD ENDED 30 JUNE 2006 30 JUNE ENDED THE PERIOD FOR STATEMENT OF RECOGNISED INCOME AND EXPENSE AND INCOME OF RECOGNISED STATEMENT 36 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2006 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT g) Intangible Assets NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, goodwill, computer a) Basis of Accounting software and development costs (where applicable). The financial statements have been prepared on an accrual basis of accounting and are in accordance with the Financial Management Act Intangible assets are recognised at cost. Costs incurred subsequent 1994, Statements of Accounting Concepts and other authoritative to initial acquisition are capitalised when it is expected that additional pronouncements of the Australian Accounting Standards Board and future economic benefits will flow to Energy Safe Victoria. Urgent Issues Group Consensus Views. Accounting Standards include Australian equivalents to International Financial Reporting Standards Amortisation is allocated to intangible assets with finite useful lives (A-IFRS). on a systematic basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location Accounting policies are selected and applied in a manner which ensures and condition necessary for it to be capable of operating in the manner that the resulting financial information satisfies the concepts of relevance intended by management. The amortisation period and the amortisation and reliability, thereby ensuring that the substance of the underlying method for an intangible assets with a finite useful life are reviewed transactions or other events is reported. at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there The accounts have been prepared under the historical cost convention are indicators that the intangible asset concerned is impaired. If so, the and except where stated do not take into account current valuations of assets concerned are tested as to whether their carrying value exceeds non-current assets. their recoverable amount. These financial statements have been authorised for issue by Alan Kelly, Software is amortised over its useful life to Energy Safe Victoria and is Chief Financial Officer. calculated on a 33% straight line basis from the date that it is ready for b) Establishment use. Energy Safe Victoria was formed as a result of the merger of the h) Employee Benefits Office of Gas Safety and the Office of the Chief Electrical Inspector. i) Wages and Salaries The new identity commenced operations on 10 August 2005. These Liabilities for wages and salaries are recognised, and are reports for Energy Safe Victoria are for the period 10 August 2005 measured as the amount unpaid at the reporting date at rates to 30 June 2006. at which the liability is expected to be settled including oncosts, c) Comparative Information in respect of employees’ services up to that date. As Energy Safe Victoria commenced operations on 10 August 2005, ii) Employee Benefits Provision there is no comparative information which can be included in this report. AASB 119 requires the calculation of employee provisions to d) Cash be reflective of the expected future wage and salary levels of For purposes of the statement of cash flows, cash includes deposits current employees, inclusive of on-costs. During the period at call and other highly liquid investments with short terms to maturity from 10 August 2005 to 30 June 2006, Energy Safe Victoria which are readily convertible to cash on hand and are subject to an has adjusted employee provisions in accordance with the insignificant risk of changes in value, net of outstanding bank overdrafts. requirements set out in AASB 119.

e) Receivables iii) Long Service Leave All debtors are recognised at the amounts receivable as they are due The liability for long service leave expected to be settled within for settlement at no more than 30 days from the date of recognition. 12 months of the reporting date is recognised in the provision for employee benefits and is measured in accordance with (i) Collectability of debtors is reviewed on an on-going basis. Debts which above. The liability for long service leave expected to be settled are known to be uncollectable are written off. A provision for doubtful more than 12 months from the reporting date is recognised debts is raised when some doubt as to collection exists. in the provision for employee benefits and measured as the present value of expected future payments to be made in f) Plant and Equipment respect of services provided by employees up to the reporting All items of plant and equipment are recorded in the accounts at date. Consideration is given to expected future wage and historical cost. All assets are capitalised if the purchase price exceeds salary levels, experience of employee departures and periods of $1,000. Plant and equipment is depreciated over the estimated service. Expected future payments are discounted using interest economic life of the asset to Energy Safe Victoria and is calculated rates on national Government guaranteed securities with terms on the following basis: to maturity that match, as closely as possible, the estimated – Furniture and Fixtures 10% - 33.3% future cash outflows. (Refer: Note 9c). – Office Machines } 33.3% – Office Computers } iv) Superannuation – Leasehold Improvements 30% The amount charged to the Operating Statement in respect of superannuation represents the contributions made by Energy Safe Victoria to the EquipSuper Pty Ltd Fund and the Government Superannuation Office (Refer: Note 16).

i) Payables These amounts represent liabilities for goods and services provided to Energy Safe Victoria prior to the end of the ﬁnancial period and which are unpaid. The amounts are unsecured and are usually paid within 21 days of recognition. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 37 FOR THE PERIOD ENDED 30 JUNE 2006 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT j) Revenue Recognition Period Ended Revenue resulting from sale of goods and services and regulatory fees 30 June 2006 is, where possible, recognised when the transaction or event giving rise ($’000) to the revenue occurs. NOTE 2: REVENUE

Specifically, material revenues arise from the following: (a) Revenue from ordinary activities – Registration and Licence fees paid by electrical workers Licence Fees 2,455 – Sales of certificates of electrical safety Emergency Telephone Service Fees 233 – Fees paid by manufacturers and importers of electrical equipment Safety Case Audit Fees 140 for certificate of safety approval prior to the goods being made Approval Fees 340 available for sale Certificates of Electrical Safety 4,076 – Fees paid by manufacturers to cover hazardous location Electrolysis 867 investigations Appliance Efficiency 112 – Levy charged on the Electricity Industry to ensure compliance with Hazardous Location Investigations 191 the Electricity Safety Act 1998 and associated Regulations Safety Management Schemes 125 – Levies charged on the Gas Industry to ensure compliance with the Other 148 Gas Safety Act 1997 and associated regulations Sub Total fees 8,687 – Interest income is recognised as it accrues and is based upon interest rates and tenor applicable to the invested funds. Industry Levy - Electricity 3,276 Industry Levy - Gas 4,017 k) Enabling legislation Total revenue from ordinary activities 15,980 Energy Safe Victoria is given the authority to operate by way of the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Energy Safe Victoria Act 2005. (b) Revenue from outside the ordinary activities l) Leases Advertising Space Revenue 204 Operating lease payments are representative of the pattern of benefits Legal Cost Recoveries 44 derived from the leased assets and accordingly are charged to the Interest 134 Operating Statement in the periods in which they are incurred. Other 242 m) Financial Instruments Total revenue from outside ordinary activities 624 Receivables (Note 5) are carried at nominal amounts due less any Total Revenue 16,604 provision for doubtful debts. A provision for doubtful debts is recognised when collection of the full nominal amount is no longer probable. The Period Ended collectibility of debts is reviewed regularly, and at balance date, to 30 June 2006 assess the need for specific provision of any doubtful debts. Credit ($’000) sales are on 30-day terms. NOTE 3: DEPRECIATION AND AMORTISATION Payables (Note 8) are recognised for amounts to be paid in the future Outlined below are the amounts charged for depreciation and for goods and services received. Trade payables are normally settled on amortisation in the current period for each class of asset in the 21-day terms. Balance Sheet: Furniture and Fixtures 36 Short Term Deposits are stated at their nominated amount. Interest is Office Machines/Computers 189 recognised in the Operating Statement when earned. The short term Software 136 deposits have a weighted maturity of 49.5 days and effective interest Leasehold Improvements 42 rates 5.35% to 5.65%. 403 The aggregate net fair values of recognised financial assets and liabilities, at balance date, are equal to their carrying amount as Period Ended per the Balance Statement. 30 June 2006 ($’000) n) Compliance Audit Compliance audit expenditure relates to payments paid to private NOTE 4A: EMPLOYEE BENEFITS EXPENSE inspection companies engaged by Energy Safe Victoria to conduct Outlined below is the detailed breakdown related to employee audits, on behalf of Energy Safe Victoria, on non-prescribed electrical benefits expense installation work carried out by registered electrical contractors and Salaries 6,971 licensed electrical workers. On-costs o) Rounding of Amounts Superannuation 68 Amounts in the financial report have been rounded to the nearest Annual Leave (movement) (63) thousand dollars or in other cases to the nearest dollar. Long Service Leave (movement) (48) Workers Compensation 47 Payroll Tax 358 Fringe Benefits Tax 27 Subtotal On-costs 389

7,360 38 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2006 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Period Ended 30 June 2006 30 June 2006 ($’000) ($’000) NOTE 7: NON-CURRENT ASSETS - PLANT AND EQUIPMENT NOTE 4B: OTHER EXPENSES FROM ORDINARY ACTIVITIES Furniture and fixtures at cost 182 Rent 701 Less: accumulated depreciation (36) Advertising 1,993 Motor Vehicle Expenses 759 146 Printing & Stationery 345 Telecommunications 443 Consulting Fees 300 Office Machines at cost 638 Emergency Response 63 Less: accumulated depreciation (189) Emergency Response Telephone 305 449 Business Services 271 Legal Fees 93 Admin Fees – Certificates of Electrical Safety 191 Leasehold Improvements at cost 329 Insurance 411 Less: accumulated depreciation (42) Computer Expenses 369 Travel Expenses 128 287 Training & Education 65 Summary: Compliance & Audit Services 163 Plant and equipment at cost 1,149 (including Bushfire Mitigation) Office Equipment 145 Less: accumulated depreciation (267) Committee Member Fees 8 Carrying amount at end of period 882 Hazardous Location Investigations 75 Other 326 Reconciliations Reconciliations of the carrying amounts of each class of plant and 7,154 equipment at the beginning and end of the current financial period are set out below. Any variance is due to rounding factors. 30 June 2006 ($’000) Leasehold NOTE 5: CURRENT ASSETS - RECEIVABLES Furniture Office Improve- & Fixtures Machines ments Total Approval fees 100 30 June 2006 ($’000) ($’000) ($’000) ($’000) Electrolysis fees 285 Transfers from Prior Entities 119 444 114 677 Appliance Efficiency fees 43 Additions 63 194 215 472 Distribution Businesses 604 Disposals - - - - Agent – Certificate of Electrical Safety 672 Depreciation expense (36) (189) (42) (267) G.S.T. Input Tax Credit 193 146 449 287 882 General 379 2,276 30 June 2006 Less Provision for Doubtful Debts (107) ($’000) 2,169 NOTE 8: NON-CURRENT ASSETS - INTANGIBLES

An amount of $379,145 reported as General Receivable for the Period Ended 30 Software at cost 424 June 2006 relates to the work undertaken by Energy Safe Victoria for the installation of electrical equipment in hazardous locations throughout the State ($102,639), ESV Less: accumulated amortisation (136) magazine ($48,013) and Other ($228,493). 288 A provision for doubtful debts has been established of $107,347 which follows a review of outstanding debtors. Intangibles 30 June 2006 30 June 2006 ($’000) ($’000) Transfers from Prior Entities 260 NOTE 6: NON CURRENT ASSETS - RECEIVABLES Additions 164 Rental Bond 252 Disposals - 252 Amortisation expense (136)

The rental bond represents the payment made by Energy Safe Victoria, 288 held in trust, to secure the premises at 4 Riverside Quay, Southbank. 30 June 2006 ($’000) NOTE 9: CURRENT LIABILITIES - PAYABLES Payables 2,016 GST Output - Sales 25 Payroll Suspense 70 Rental Bond Held (25) 2,086 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 39 FOR THE PERIOD ENDED 30 JUNE 2006 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT 30 June 2006 30 June 2006 ($’000) ($’000) NOTE 9A: CURRENT LIABILITIES - PROVISIONS NOTE 10A: CASH FLOW Superannuation 4 Reconciliation of net cash used in operating activities to Employee benefits - annual leave 1,015 operating surplus. Employee benefits - retirement gratuity 24 Operating surplus/(deficit) (140) Employee benefits - long service leave 1,824 Depreciation/Amortisation 403 Payroll Tax 35 Doubtful Debts (42) 2,902 221 All annual leave and long service leave entitlements representing Change in assets and liabilities 7+ years of continuous service: Current assets – short-term employee benefits that fall due within 12 months after the end of the period measured at nominal value – annual leave = $512. Decrease/(Increase) in receivables (46) Decrease/(Increase) in accruals (76) – other long-term employee benefits that do not fall due within 12 months after the end of the period measured at present Net Decrease/(Increase) in current assets (122) value – annual leave = $503. Non-current assets 30 June 2006 ($’000) Decrease/(Increase) in receivables - NOTE 9B: NON-CURRENT LIABILITIES - PROVISIONS Net Decrease/(Increase) in non current assets - Employee benefits - long service leave 36 36 Current liabilities

Long service leave representing less than 7 years of continuous service Increase/(Decrease) in payables 1,033 measured at present value. Increase/(Decrease) in other (22) Increase/(Decrease) in provisions 16,824 NOTE 9C: EMPLOYEE BENEFITS Net Increase/(Decrease) in current liabilities 2,653

All annual leave and unconditional vested LSL representing Non-current liabilities 7+ years of continuous service is: Increase/(Decrease) in provisions (1,781) (a) disclosed in accordance with AASB 101, as a current liability Net Increase/(Decrease) in non-current liabilities (1,781) even where the agency does not expect to settle the liability within 12 months as it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within Net cash ﬂows from operating activities 971 12 months;

(b) measured at: 30 June 2006 – nominal value under AASB 119 where a component of this ($’000) current liability is expected to fall due within 12 months after NOTE 10B: CASH ASSETS the end of the period; and Cash on hand 3 – present value under AASB 119 where the entity does not Bank 854 expect to settle a component of this current liability within Deposits – @ call 598 12 months. Deposits – NCD/Bills 3,059 LSL representing less than 7 years of continuous service is: 4,514

(a) disclosed in accordance with AASB 101 as a non-current liability; Balances as above 4,514 and Balances as per statement of cash ﬂow 4,514

(b) measured at present value under AASB 119 as the entity does not expect to settle this non-current liability within 12 months.

30 June 2006 ($’000) Long Service Leave Weighted average discount rate 5.15% Number of Employees 89

40 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2006 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT NOTE 11: FINANCIAL INSTRUMENTS NOTE 12: EQUITY a) Contributed Capital a) Interest Rate Risk Exposures Energy Safe Victoria exposure to interest rate risk and the effective Opening Balance Nil weighted average interest rate for classes of ﬁnancial assets and Capital transferred from merged entities 3,610 ﬁnancial liabilities is set out below:

Fixed Interest Rate TOTAL EQUITY 3,610

Floating Non- Interest interest b) Accumulated Surplus Rate bearing Total Note ($’000 ($’000) ($’000) 30 June 2006 ($’000) Financial Assets Accumulated surplus at beginning of the ﬁnancial Nil Cash 10b 4,514 - 4,514 period Receivables 5, 6 252 2,169 2,421 4,766 2,169 6,935 Surplus/(Deﬁcit) as recognised in the Operating (140) Weighted Average 5.55% Statement Interest Rate Correction of Errors* (313)

Financial Liabilities Accumulated surplus at the end of the financial period (453) Payables 8 - 2,086 2,086 * Correction of Errors: The identification of the variance between Net Financial Assets 4,766 83 4,849 sub-ledger and general ledger totals on transfers from the prior entities. b) Credit Risk Exposures c) Total Equity The credit risk on financial assets of Energy Safe Victoria which have 30 June 2006 been recognised on the Balance Sheet, is the carrying amount, net of ($’000) any provision for doubtful debts. Contributed Capital 3,610 c) Net fair values of financial assets and liabilities Accumulated Surplus (453)

Valuation approach Total Equity 3,157

The carrying amounts of cash assets, receivables, investments and d) Capital transferred payables approximate their net fair value. Opening Balance Note 30 June 2006 Net Fair Value Capital transferred from merged entities OCEI OGS Total ($’000) ($’000) Current Assets 1,669 2,509 4,178 Financial Assets Cash Assets 1,366 904 2,270 Cash Assets 10b 4,514 4,514 Total Current Assets 3,035 3,413 6,448 Receivables 5, 6 2,421 2,421

6,935 6,935 Non-Current Assets Receivables and Rental Bond 252 1 253 Financial Liabilities Plant and Equipment 757 181 938 Payables 8 2,086 2,086 Total Non-Current Assets 1,009 182 1,191 Total 2,086 2,086 Total Assets 4,044 3,595 7,639

d) Reconciliation of Net Financial Assets to Net Assets Current Liabilities Note 30 June 2006 Payables 723 207 930 ($’000) Fees in Advance 22 - 22 Net Financial Assets (as above) and 4,849 Provisions 963 297 1,260 includes Rental Bond Total Current Liabilities 1,708 504 2,212

Non Financial Assets and Liabilities Non-Current Liabilities Plant & Equipment 7 882 Provisions 806 1,011 1,817 Intangibles 8 288 Accruals 76 Total Non-Current Liabilities 806 1,011 1,817 Provisions 9a, 9b (2,938)

Net Assets per Balance Sheet 3,157 Total Liabilities 2,514 1,515 4,029 Net Assets 1,530 2,080 3,610

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 41 FOR THE PERIOD ENDED 30 JUNE 2006 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT NOTE 13: CONTINGENT LIABILITIES NOTE 16: SUPERANNUATION

Energy Safe Victoria contributes to the EquipSuper Pty Ltd Fund As a regulator, Energy Safe Victoria has the responsibility to prosecute (formerly the Victorian Electricity Industry Superannuation Fund) and the for breaches of the Electricity and Gas Safety Acts and associated Government Superannuation Office. Contributions for permanent staff regulations. In the event of CitiPower being successful in their appeal is calculated at 11% of gross pay, however, a recess has been granted against conviction at the Melbourne Magistrates Court on 22 December by EquipSuper Pty Ltd due to funding being in excess of requirements. 2005, costs could be incurred by Energy Safe Victoria up to $175,000. This resulted from the investment performance of the fund in recent years. 30 June 2006 ($’000) Payments to the Government Superannuation Office continue where NOTE 14: AUDITORS’ REMUNERATION $20,976 was paid. Audit fees paid or payable to the Victorian Auditor General’s office for audit of Energy Safe Victoria’s financial report: NOTE 17: MINISTERS AND ACCOUNTABLE OFFICERS Paid as at period end 30 In accordance with the Ministerial Directions issued by the Minister Payable as at period end - for Finance under the Financial Management Act 1994, the following Note This amount is inclusive of GST. disclosures are made regarding the responsible persons for the No other services were provided by the Victoria Auditor-General’s office reporting period.

Names The persons who held the positions of Ministers and Accountable Operating Lease Commitments 30 June 2006 Officers at any one time during the financial period are: ($’000) NOTE 15: COMMITMENTS FOR EXPENDITURE Responsible Minister: The Honourable Theo Theophanous MP Minister for Energy Industries and Resources (i) Motor vehicles Not later than one year 628 Accountable Officers: Mr K Gardner Later than one year but not later than five years 596 Director of Energy Safety Later than five years - Remuneration - Accountable Officer 1,224 Total remuneration received or receivable by the accountable officers (ii) Office accommodation in connection with the management of Energy Safe Victoria during the Not later than one year 734 reporting period was in the range: Later than one year but not later than five years 2,654 Later than five years 1,519 $170,000 - $179,999 4,907 Amounts relating to Ministers are reported in the financial statements (iii) Office equipment of the Department of Premier and Cabinet. Not later than one year 132 Other Transactions Later than one year but not later than five years 223 Other related transactions and loans requiring disclosure under the Later than five years - Directions of the Minister for Finance have been considered and there 355 are no matters to report. Total 6,486 Note The 2005/06 gross office accommodation commitment includes the lease on NOTE 18: REMUNERATION OF EXECUTIVES premises and outgoings for 4 Riverside Quay, Southbank, 15 Ceylon Street, Nunawading, 32A Doveton Street North, Ballarat and 369 Royal Parade, Parkville. During the period, seven Executives were appointed, however, The above commitments are inclusive of GST. such appointments only became effective from 1 February 2006.

The total remuneration received for this period for individual executives did not exceed the reporting threshhold of $100,000. 42 ACCOUNTABLE OFFICER’S AND CHIEF FINANCE AND ACCOUNTING OFFICER’S DECLARATION ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT We certify that the attached ﬁnancial statements for Energy Safe Victoria have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the operating statement, statement of recognised income and expense, balance sheet, statement of cash flows and notes to and forming part of the financial statements, presents fairly the financial transactions during the Period Ended 30 June 2006 and financial position of Energy Safe Victoria as at 30 June 2006.

We are not aware of any circumstance which would render any particulars included in the ﬁnancial statements to be misleading or inaccurate.

K GARDNER DIRECTOR OF ENERGY SAFETY

13/ 9 / 2006

A KELLY EXECUTIVE MANAGER CORPORATE SERVICES

13 / 9 / 2006 43 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 AUDITOR-GENERAL’S REPORT AUDITOR-GENERAL’S 44 AUDITOR-GENERAL’S REPORT ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT 45 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

safety campaigns communications & new intranet and updated – stronger reviewed partnering in place with stakeholders changes recommending produced (including to energy supply regime Act/Regulation changes) recommended and report contact with infrastructure and technology regulatory recommending changes supply safety regime implemented on speciﬁc required changes to streamline changes to streamline on speciﬁc required Electricity Safety and Gas Safety Acts changes to communication recommended and targeting approaches – New stakeholder surveys in place Updated Look Up and Live/No-Go-Zone – New ESV website for external – and plans for school safety – Research programs Stakeholder formal consultation processes – – New ESV Service Charter implemented Consultation completed and report – Completed analysis of causes of – mapped for Administrative procedures – Emergency management improvements – YEAR 1 MAJOR MILESTONES YEAR 1 MAJOR MILESTONES (2006/2007) and recommendations Report with review – – New Gas Quality Regulations Regulations – New Stray Current industry KPI – Develop and agree standards reporting Updated communications plan including –

supply safety regime (including auditing supply safety regime processes) development and adoption of improved asset management models for energy supply infrastructure management capability Service Charter transmission, distribution and traction safety regime and consequence of unintended contact with gas and electricity supply infrastructure effectiveness of communications effectiveness activities and channels consultation processes performance reporting and monitoring performance reporting behaviours to the community and industry gas and electricity regimes (implement outcomes of regime expiring plus re-make reviews regulatory as required) regulations 3.4. Encourage and facilitate the 3.4. emergency Review and update ESV’s 3.5. 2.5. Develop and implement an updated implement an updated Develop and 2.5. Review electricity generation, 3.1. frequency to reduce Develop a program 3.2. Re-engineer administration of energy 3.3. 1.3. Review and improve industry safety industry safety Review and improve 1.3. the efﬁciency and Review and improve 2.1. on-going Develop and implement an 2.2. of stakeholder satisfaction program and communicate safe use Effectively 2.3. surveys external update ESV’s Review and 2.4. STRATEGIES & INITIATIVES STRATEGIES the consistency of and improve Review 1.1. safety Update electricity and gas 1.2.

– improved consultation & – improved communication Schemes by businesses management philosophies and practices adopted by businesses (to meet needs for and capacity) reliability electricity and gas supply systems supply systems appliances and installations service commitment (new Service Charter) utilised – e.g. web enabled accessibility communication), improving and business productivity mechanisms/processes and responsibilities to match the needs and competencies of stakeholders and encourage excellence in stakeholder performance approach approach – Acceptance of Safety Management – – Appropriate community behaviours – Appropriate management of emergencies – Effective of asset effectiveness Increased – 3. Safe and reliable gas and electricity Safe and reliable 3. from Minimise deaths, injuries and fires – – Community/industry awareness of Community/industry awareness – – Public educated in safe use of – – Satisfied community, industry and – Satisfied community, other stakeholders Easier access to information (technology – – Formalised transparent consultation Formalised transparent – – More clearly defined regulatory boundaries clearly defined regulatory More – Better informed stakeholders 2. – Set of regulations and rules designed Set of regulations – 1. Modern safety regulation – effective, – effective, Modern safety regulation 1. efficient and fair new Revised legislation reflecting – ENERGY SAFE VICTORIA CORPORATE PLAN SUMMARY – 2007 TO 2011 SUMMARY PLAN CORPORATE ENERGY SAFE VICTORIA KEY OUTCOMES REQUIRED 1) outcomes to be accomplished by June 2011 1) outcomes to be accomplished the outcomes implemented over the plan period to achieve 2) strategies that will be first year of the plan in the 3) milestones to be reached This page summarises: This page summarises: targets. These form part of the new Corporate Plan and will lead ESV of the new Corporate Plan and will lead ESV targets. These form part all of its goals. to successfully achieve forward ESV’s mission, vision and objectives, which form a part of this Statement form a part of this Statement and objectives, which mission, vision ESV’s report. page one of this noted from Intent, are of Corporate initiatives and performance strategies, is a summary of ESV’s The following STATEMENT OF CORPORATE INTENT OF CORPORATE STATEMENT CORPORATE INFORMATION CORPORATE

(input to BIA) system (input to BIA) Electrical Safety and competency and registration for arrangements and recommendations B) gas work complex (Type position descriptions succession plans aligned with and training programs business objectives prioritised, sequenced and commenced agreed updated in place software collection and analysis of incident data recommendations for: recommendations – of Electrical Safety System Certificate safety switches process appliance approvals appliances in place documented (for cost-benefit analysis) inspectors – Completion of analysis of licensing – with new Updated organisational structure – policy and Updated recruitment – New performance management systems – satisfaction surveys in place New staff – business processes to streamline Work – Fully updated IT strategy documented and – DRP and Business Continuity plans – risk management capability and Improved – and systems for Updated processes – YEAR 1 MAJOR MILESTONES YEAR 1 MAJOR (2006/2007) with reports, review Completion of major – – inspection and auditing Electrical for Delivery of BIA on wider requirement – for national electrical Review report – gas Risk based inspection of complex – Gas appliance efficiency scheme – for electrical Certificate IV training program – Restricted licence training package – On-line licence renewals – of Certificates of On-line purchasing –

improved efficiency and effectiveness efficiency and effectiveness improved in delivery of business requirements (including web-enablement of such as administrative processes, licensing, certification and approvals) Recovery & Business Continuity Plans capability (including risk mgt. planning) and analysis collection, reporting and performance initiative survey program of policies, and revision for review across and procedures processes ESV (including a Quality Management System) inspections for gas and competency framework registration for electrical workers and inspectors maintenance and training programs administrative processes and competency framework registration for gasfitters governance the electrical inspection of and auditing system sales safety switches on property program Home Safety Inspection approvals applied electrical appliance process gas inspection processes regime of the Certificate of Electrical Safety of the Certificate of Electrical system 7.2. Develop an integrated IT strategy for 7.2. Disaster Establish and maintain effective 7.3. Enhance ESV risk management 7.4. Re-engineer ESV and industry data 7.5. 6.1. Human Resource refinement, training refinement, Human Resource 6.1. satisfaction staff implement and Develop 6.2. Develop priorities and strategies 7.1. 5.1. Review and improve the licensing, improve Review and 5.1. implement skills Review and 5.2. licensing improve Review and 5.3. the licensing, improve Review and 5.4. 4.2. Review the independence and 4.2. mandatory Evaluate and introduce 4.3. the electrical Evaluate and improve 4.4. and nationally a revised Introduce 4.5. of Review objectives and effectiveness 4.6. gas appliance efficiency Implement 4.7. application of home safety Investigate 4.8. STRATEGIES & INITIATIVES STRATEGIES and effectiveness Review the efficiency 4.1. – clear and consistent practices team of skilled professionals industry workforce action to prevent future incidents future action to prevent Plans implemented productivity and implemented at reduced and implemented at reduced productivity business cost organisational requirements organisational requirements communication systems – improving skills and responsibilities roles recognition recognition gasfitters place of workers registration careers in energy sector careers participants (improved and robust) (improved installations installations and appliances – Improved risk management Improved – incident analysis and Fast and effective – – Integrated and improved legacy systems Integrated and improved – Continuity Business and Recovery Disaster – – Implemented effective Quality System Implemented effective – Modern, cost efficient technology and – 7. More efficient and effective ESV efficient and effective More 7. Documented policies reflecting – – People with subject matter and regulatory People with subject matter and regulatory – ESV clearly defined and effective More – – Satisfied and motivated workforce Satisfied and motivated workforce – and reward resourcing, Appropriate – – New competency framework for type B – committed Employer of choice – a 6. – Continuous professional development in Continuous professional – of licensing & effectiveness Improved – – National competencies for industry – 5. Stable, sustainable and skilled Stable, sustainable and 5. and attractiveness of awareness Increased – – Improved application of standards application of standards Improved – – Efficiency regime for gas appliances – regime Efficiency – installers and service workers Competent – educated in safe use of appliances Public – Minimise deaths, injuries and fires from from injuries and fires Minimise deaths, – system and approval audit – Effective KEY OUTCOMES REQUIRED KEY OUTCOMES and safe efficient appliances Safe and 4. STATEMENT OF CORPORATE INTENT OF CORPORATE STATEMENT CORPORATE INFORMATION CORPORATE

46 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 47 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

< 3 yr average < 3 yr average TBD #1 in Australia #1 in Australia 08/09 100% delivery plannedto update schedule 85 70 85 7000/mth

TARGETS < 3 yr average < 3 yr average TBD #1 in Australia #1 in Australia 07/08 07/08 100% delivery plannedto update schedule 80 65 80 6000/mth

< 3900** < 2.7** TBD #1 in Australia #1 in Australia 06/07 06/07 100% delivery plannedto update schedule 75 60 75 5000/mth

PERF

3756 0 296 TBD TBD 05/06 100% delivery plannedto update schedule 70 50 70 N/A

associated with serious injury or of high of frequency death (measure consequence impact with assets) (number) compared ranking population million per to other Australian States and New Zealand million population ranking compared to other Australian States and New Zealand across messages and groups] across ESV (percentage) < 3 yr Vic. rolling (number) [**Target average] < 3 yr Vic. rolling (number) [**Target average] across campaigns and groups] across – fatalities ESV 3 year average electrical – fatalities per ESV 3 year average gas – Recall of safety messages [average – Overall stakeholder satisfaction with – Hits on the ESV website (number) – Damage to gas assets < 1,050 kPa – Damage to gas assets > 1,050 kPa – Contact with electricity supply assets Delivery of Act and Regulatory renewal renewal Delivery of Act and Regulatory with schedule in accordance program and fairness also indicated Effectiveness 3 under outcomes by safety measures under measures and 4 and satisfaction outcome 2 – Reach of safety campaigns [average MEASURES safety regime administration by June 2007 June by administration regime safety arrangements implemented by June 2007 supply systems 2007 by March report regime reviewed and updated by June 2007 reviewed approved by June 2007 approved New service charter by June 2007 – improved consultation & – improved communication by June 2007 revised by June 2008 revised update schedule efﬁcient and fair June 2007 3 & 4. Consolidated performance – Updated emergency management – Electricity generation and supply safety changes to supply – Report on required – Stakeholder consultation processes – Stakeholder consultation processes electricity gas and Safe and reliable 3. – Stakeholder surveys undertaken annually 2007. – Updated ESV website by March 2. Better informed stakeholders Better informed stakeholders 2. – Revised communications strategy – Industry KPI reporting standards agreed agreed standards – KPI reporting Industry – Safety Act and Gas Safety Act Electricity updates in line with planned – regulatory All – Gas and electricity regimes reviewed by reviewed – and electricity regimes Gas MILESTONES Modern – effective, safety regulation 1. This page summarises measures and targets that will be used to assess plan progress and achievement of outcomes achievement of outcomes and to assess plan progress that will be used and targets summarises measures This page TO 2011 – 2007 PLAN SUMMARY VICTORIA CORPORATE ENERGY SAFE & SELECTED KEY OUTCOMES STATEMENT OF CORPORATE INTENT OF CORPORATE STATEMENT CORPORATE INFORMATION CORPORATE

9798 8861 4033 10 75 85 0 0.99 08/09 94 69 82 95 95 .25 .25 8 37549 6594

TARGETS 9606 8687 3954 10 75 85 0 0.99 07/08 07/08 94 67 81 95 95 .30 .30 8 37178 6529

9418 8517 3876 10 75 85 0 1.0 06/07 06/07 94 65 80 95 95 .35 .35 9 36809 6464

PERF

9233 8350 3800 5 N/A 82 2 1.0 05/06 94 64 76 96 97 .40 .40 10 36445 6400

staff survey] (percentage) staff (number) (number) – RECs (number) (number) (percentage of domestic properties) (percentage (average) electrical industry workers outlets (percentage) identified at retail efficiency labelling (percentage) installation inspected installations inspected audits of gas installations] (percentage) (percentage) – Employee satisfaction [measured by – Employee satisfaction [measured (percentage) – Employee retention – Lost Time (number) Injuries – (number) Expense to income ratio – Total licences in place (number) – Total licences issued or renewed – Total in place – RECs registrations – Total issued or renewed registrations – Total in place – others registrations – Total – RTO Audits completed (number) – Properties with safety switches installed – Properties – of licensed/registered Compliance electrical appliances – Safe/approved – of electrical appliances for Compliance B gas per Type defects – Average defects per complex gas – Average PIC – Defective gas installations [from MEASURES – electrical installations Compliant 2007 Continuity Plans implemented by June 2007 for incident collection/analysis by June implemented Dec 2006 by June 2007 approved Quality Management System plans) by December 2006 – clear and consistent practices prioritised and sequenced (inclusive of in place by December 2006 2007 March 2007 by June 2007 team of skilled professionals 2008 gasfitters by June 2010 2008 industry workforce by June skills maintenance programs 2007 process report by June 2009 report process appliances in place by June 2008 by June 2008 appliances in line with AGO timetable appliances in line with AGO installations by June 2007 time of property sale by December 2006 sale by December time of property 2008 by June system and processes report by June 2007 report by June 2007 report installations – Updated processes, reporting & systems & systems reporting – Updated processes, – and Updated IT strategy documented – / Business Updated Disaster Recovery – Risk management improvements – Risk management improvements 7. More efficient and effective ESV efficient and effective More 7. business processes to streamline – Work – Updated recruitment policy in place by policy in place – Updated recruitment – system New performance management program satisfaction survey – Revised staff 6. Employer of choice – a committed Employer of choice 6. by June and responsibilities – Updated roles – Photos on licences by June 2009 – New competency framework for type B – Licence renewals on line by June 2007 – Licence renewals – New licence applications on line by June of certificates on line by June – Purchasing – 5% of industry participants involved in – National electrical appliance approvals – National electrical appliance approvals and skilled Stable, sustainable 5. – Risk based inspection of complex gas – Electrical Home Safety Inspection report – Risk based inspection of complex gas – Certificate of Electrical Safety Updated for gas – efficiency regime Implemented – inspection and auditing system Electrical for safety switches at – on requirement BIA 4. Safe and efficient appliances and safe Safe and efficient appliances and safe 4. – of Electrical Safety system Certificate KEY OUTCOMES & SELECTED KEY OUTCOMES MILESTONES STATEMENT OF CORPORATE INTENT OF CORPORATE STATEMENT CORPORATE INFORMATION CORPORATE

48 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 49 ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06

ojects, Nil Nil Nil Nil Nil Nil Nil Nil Nil

Result

Investigations of disclosures taken over by the Investigations of disclosures ESV Ombudsman from Requests by whistleblower to have their investigated by the Ombudsman disclosure due to their dissatisfaction with the way ESV is investigating the matter that ESV has declined to investigate Disclosures substantiated on Disclosed matters that were investigation and the action taken on completion of the investigation Recommendations made by the Ombudsman to ESV that relate Disclosure made to ESV during the year Disclosures to the Ombudsman (to referred Disclosures public interest determine whether they are disclosures) to ESV by the Ombudsman referred Disclosures to investigate by ESV to the Ombudsman referred Disclosures to investigate Secondary Customers a service from Customers who periodically interact or require by Energy Safe Victoria. – Government departments and agencies – Local municipal authorities – clearing for tree Those with a responsibility – assets Those who dig near underground – industry Utilities and the petroleum – and other education providers Tertiary – and wholesalers Electricity and gas retailers – Ombudsman (Victoria) Energy and Water associations. – Unions and staff Act 2001 Whistleblowers Protection Energy Safe Victoria is committed to the aims and objectives of the of Act 2001. In keeping with the requirements Whistleblowers Protection the following: Section 104 of the Act ESV reports The following matters did not apply to ESV during the period to ESV during the period matters did not apply The following major – major external to 30 June 2006 10 August 2005 reviews, and development activities. research Consultancies at a total cost of $299,715 for 16 pr ESV engaged 20 consultants less than $100,000. each consultancy costing of Major Contracts Disclosure into any contracts over $10 million. Energy Safe Victoria has not entered Pecuniary Interests was completed by all relevant interests A declaration of pecuniary period. for this reporting staff Customers Primary Customers by Energy service with a regular provided Customers who are Safe Victoria. – for the electricity and gas industries Minister responsible – General public – electrical Electrical workers (licensed electrical inspectors, registered contractors and licensed electrical installation workers) – gasﬁtters, inspectors) Gas workers (licensed / registered – Generation, transmission and distribution businesses, the traction industry and other network operators – of electrical importers, wholesalers and retailers Manufacturers, and gas equipment stakeholders. – Electrolysis

a regular basis. a regular – the purposes of each a list of major committees sponsored, committee and the extent to which the purposes have been achieved. – undertaken to improve details of assessments and measures the occupational health and safety of employees – and details of time a general statement of industrial relations industrial accidents and disputes lost through – details of overseas visits undertaken including a summary of the objectives and outcomes of each visit – and marketing public relations details of major promotional, activities undertaken been duly completed by the accountable officer – and how these may be obtained details of publications produced – details of changes in prices, fees, charges, rates and levies Statutory Information Energy Safe Information on the following matters is available from Victoria on request. – that have a statement of declarations of pecuniary interests activity detection and investigation of fraud and irregular of Energy Safety on on its activities to the Director report – To – external any employee and any relevant information from obtain To the findings party and to institute special investigations and report of Energy Safety of those to the Director – to the prevention, of ESV in relation internal controls review To the management of ESV independent from chairperson, are – The arrangements for committee meetings, inclusive of the power to call meetings and details of what constitutes a quorum auditors – party transactions related review To – less than three establish a committee which shall consist of not To of the two members of the committee, inclusive members, where and external audit program – the internal consider the major findings review audit program, To co-ordination and ensure response of the audit and management’s between the internal external annual audit program and of ESV’s or to account for significant unusual transactions – and manage the scope and quality of the internal co-ordinate no specific accounting standards are transactions for which there To equivalents to International Reporting Standards Financial and the Group (A-IFRS), Accounting Concepts, Urgent Issues Financial Management Act – policies and practices–Methods used Any changes in accounting – financial performance half year and annual the quarter, review To of ESV focusing particularly on: – of the requirements Reporting on all financial information, inclusive including Australian with Australian Accounting Standards, – Internal audit. out in its terms of The functionality of the Audit Committee is set and includes: reference – risk management Internal and control – Related party transactions – External audit – Energy Safe Victoria Manager, Alan Kelly – Executive are: by the Audit Committee covered of responsibility The areas – External reporting – Energy Safe Victoria & Administration Manager, Brian Bose – Finance – SP AusNet Projects, Strategic Technical Peter Buck – Director, – Cursio & Co. Accountant, Peter Cursio – Chartered – Energy Safe Victoria of Energy Safety, – Director Ken Gardner Audit Committee of the following members: The Audit Committee consists – Hyland Business – Director, Carmel Ackerly (Chairperson) Ltd. Services Pty. Accounting Policies Accounting Policies in cant Accounting 1 (a) Summary of Signifi Refer to Note section on page 36. the Finance CORPORATE INFORMATION CORPORATE 50 CORPORATE INFORMATION ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Copies of ESV’s Whistleblowers Protection Act Procedures can ELECTRICAL LICENSING AND REGISTRATION ADVISORY be obtained by contacting ESV’s Protected Disclosure Officer. COMMITTEE Provide advice to ESV on the standard of qualifications, proficiency, Disclosures of improper conduct or detrimental action by ESV training and experience and on legislation and regulation development or its employees may be made to the following officers: for licensed electrical workers and registered electrical contractors.

The Protected Disclosure Coordinator: ELECTRICAL SAFETY COMMITTEE Peter Hester Provide advice to ESV on the setting of safety standards for work Executive Manager Investigations & Prosecutions on or near high voltage electrical installations and to the electricity Level 3, Building 2 industry on high voltage electrical safety. 4 Riverside Quay Southbank 3006 INDUSTRY SECTOR BASED COMMITTEE Ph: 9203 9750 Develop and implement a system where appropriately qualiﬁed Fax: 9686 2197 and trained lineworkers are registered with ESV.

The Protected Disclosure Ofﬁcer: RURAL COMMITTEE Andrew Padanyi Provide advice to ESV on issues affecting rural areas. Legal Ofﬁcer Level 3, Building 2 SAFE WORKING ON ELECTRICAL INSTALLATIONS COMMITTEE 4 Riverside Quay Provide advice to ESV on safe working methods for electrical Southbank 3006 installations. Ph: 9203 9772 The following Committees have been established under other sections Fax: 9686 2197 of the Electricity Safety Act 1998: Email: [email protected] ELECTRIC LINE CLEARANCE CONSULTATIVE COMMITTEE Disclosures may also be made directly to the Ombudsman: Provide advice to ESV or the Minister on matters relating to the The Ombudsman Victoria clearance of electric lines, inclusive of the preparation and maintenance Level 3 South Tower of the Code of Practice for Electric Line Clearance (Vegetation) 1999 459 Collins Street (established under Section 87). Melbourne Victoria 3000 Internet: www.ombudsman.vic.gov.au EQUIPMENT ADVISORY COMMITTEE Email: [email protected] Provide advice to ESV on safety standards for electrical equipment Tel: 9613 6222 and the procedures for monitoring compliance with such standards Toll Free: 1800 806 314 (established under Section 50).

Information Privacy Act 2000 VICTORIAN ELECTROLYSIS COMMITTEE In keeping with the Information Privacy Act 2000, Energy Safe Victoria Provide advice to ESV on any matter related to electrolysis and the has developed and implemented a Privacy Policy. regulations relating to cathodic protection and the mitigation of stray current corrosion. This includes the establishment and maintenance ESV’s Privacy Policy can be obtained from ESV or viewed on the of standards for systems for cathodic protection and for the mitigation website at www.esv.vic.gov.au. of stray current corrosion (established under Part 9).

All staff are progressively being trained in the information privacy Building Act 1993 principles contained in the Information Privacy Act 2000 and in ESV’s Not applicable as Energy Safe Victoria does not own or control any policy. Government buildings.

Freedom of Information Victorian Industry Participation Policy Energy Safe Victoria received 38 freedom of information requests from 1 ESV has not entered into any contracts over $3 million in metropolitan July 2005 to 30 June 2006. Two of these were received on behalf of the Melbourne or $1 million in regional Victoria. Therefore, the Victorian Ofﬁce of Gas Safety. All requests were dealt with in accordance with the Industry Participation Policy (VIPP) does not apply. Freedom of Information Act 1982. Application fees and access charges received during this reporting period totalled $756. National Competition Policy The regulations made during the year were reviewed for compliance Freedom of information requests must be made in writing, accompanied with national competition policy. These regulations are consistent with by a $21.50 application fee and be addressed to: the national competition policy principles.

Mr Andrew Padanyi Energy Efficiency Government Buildings Policy Freedom of Information Officer The Victorian Government introduced the Energy Efficiency Government Energy Safe Victoria Buildings Policy in November 2001. This policy established two energy PO Box 262 Collins Street West, Vic 8007 targets; a 15% reduction in building related energy use and that 10% Energy Safe Victoria produces statements which are available on its of all electricity purchased is sourced from Green Power. website (www.esv.vic.gov.au) containing details as required under The former Office of the Chief Electrical Inspector chose to participate the Freedom of Information Act 1982. Further information can be in this program on a voluntary basis to demonstrate leadership and obtained from the Freedom of Information Officer. support of this important Government initiative.

Committees ESV has completed and achieved the objectives of the program. The following Committees have been established under Section 10 of the Electricity Safety Act 1998:

DISCLOSURE INDEX 51

The annual report of Energy Safe Victoria is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identiﬁcation of Energy Safe Victoria’s compliance with statutory disclosure requirements. ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT Legislation Requirement Page Reference MINISTERIAL DIRECTIONS Report of Operations Charter and purpose FRD 22A Manner of establishment and relevant Minister 1 FRD 22A Objectives, functions, powers and duties 3 FRD 22A Nature and range of services provided 3

Management and structure FRD 22A Organisational structure 6

Financial and other information FRD 22A Statement of workforce data and merit and equity 8 FRD 22A Summary of the financial results 8, 31 FRD 22A Significant changes in financial position 8 FRD 22A Operational and budgetary objectives and performance against objectives 8, 31 FRD 22A Major changes or factors affecting performance 8, 36 FRD 22A Events subsequent to balance date NA FRD 22A Details of consultancies over $100,000 49 FRD 22A Details of consultancies under $100,000 49 FRD 22A Application and operation of Freedom of Information Act 1982 50 FRD 22A Compliance with building and maintenance provisions of Building Act 1993 50 FRD 22A Application and operation of Whistleblowers Protection Act 2001 49 FRD 22A Statement of availability of other information 49 FRD 22A Statement on National Competition Policy 50 FRD 22A Statement on occupational health and safety 7 FRD 12A Disclosure of major contracts 49 FRD 25 Victorian Industry Participation Policy disclosures 50 FRD 24A Reporting of office-based environmental impacts 50 FRD 15A Executive Officer disclosures NA FRD 10 Disclosure index 51 FRD 8A Budget Portfolio Outcomes NA

FINANCIAL STATEMENTS Financial statements required under Part 7 of the Financial Management Act 1994 SD 4.2(a) Statement of Recognised Income and Expense 35 SD 4.2(b) Operating Statement 33 SD 4.2(b) Balance Sheet 34 SD 4.2(b) Notes to the financial statements 36 SD 4.2(c) Compliance with Australian accounting standards and other authoritative 36 pronouncements SD 4.2(c) Compliance with Ministerial Directions 41 SD 4.2(c) Accountable officer’s declaration 42 SD 4.2(d) Rounding of amounts 37 SD 4.2(f) Model financial report 36

Other disclosures in notes to the ﬁnancial statements FRD 13 Disclosure of parliamentary appropriations NA RD 9A Departmental disclosure of administered assets and liabilities NA FRD 11 Disclosure of ex-gratia payments NA FRD 21 A Responsible person and executive ofﬁcer disclosures 41 52 DISCLOSURE INDEX ENERGY SAFE VICTORIA ANNUAL REPORT 2005/06 ENERGY SAFE VICTORIA ANNUAL REPORT LEGISLATION Freedom of Information Act 1982 50 Whistleblowers Protection Act 2001 49 Victorian Industry Participation Policy Act 2003 50 Building Act 1983 50 Financial Management Act 1994 36 Audit Act 1994 41, 43 Information Privacy Act 2000 50

NA Not applicable

Notes ESV Energy Safe Victoria ELRAC Electrical Licensing and Registration Advisory Committee COAG Council of Australian Government GTRC Gas Technical Regulator’s Committee LEI Licensed Electrical Inspector LEIW Licensed Electrical Installation Worker MEPS Minimum Energy Performance Standards OCEI Ofﬁce of the Chief Electrical Inspector OGS Ofﬁce of Gas Safety PIC Plumbing Industry Commission REC Registered Electrical Contractor

Authorised and published by Energy Safe Victoria Building 2, 4 Riverside Quay, Southbank, Victoria 3006 Also published on www.esv.vic.gov.au

Printed by EnergiPrint, 2-4 Emily Street, Murrumbeena, Victoria 3163 © Copyright Energy Safe Victoria 2006 This publication is protected by copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Energy Safe Victoria is the single regulator responsible for electricity and gas safety in Victoria and was formed through the amalgamation of the Office of the Chief Electrical Inspector (OCEI) and the Office of Gas Safety (OGS). OCEI and OGS ceased operation on 9 August 2005. The 2004/05 Annual Reports for both OCEI and OGS reflect reporting outcomes until this date. Energy Safe Victoria commenced operation on 10 August 2005. The reporting period for this annual report is not for a full financial year but for the period 10 August 2005 to 30 June 2006, unless otherwise stated. As ESV is a new entity, some statistical representations and data contained within this report may not reflect past year comparisons. Other statistical information may be obtained from past OCEI and OGS Annual Reports which are available upon request from ESV. Energy Safe Victoria Level 3 Building 2 4 Riverside Quay Southbank Victoria 3006

Postal PO Box 262 Collins Street West Victoria 8007

Phone (03) 9203 9700 Fax (03) 9686 2197 [email protected] www.esv.vic.gov.au