REGULATION IMPACT STATEMENT

For Consultation

Application of Temperature Control Requirements for Heated Water

This Regulation Impact Statement (RIS) accords with the requirements of Best Practice Regulation: A Guide for Ministerial Councils and National Standard Setting Bodies, as endorsed by the Council of Australian Governments in 2007. Its purpose is to inform interested parties and to assist the Australian Building Codes Board in its decision making on proposed amendments to the National Construction Code. Comments on this RIS are invited by 21 April 2017.

The Australian Building Codes Board (ABCB) is a joint initiative of all levels of government in Australia, together with the building industry. Its mission is to oversee issues relating to health, safety, amenity and sustainability in building. The ABCB promotes efficiency in the design, construction and performance of buildings through the National Construction Code, and the development of effective regulatory and non-regulatory approaches. The Board aims to establish effective and proportional codes, standards and regulatory systems that are consistent between States and Territories. For more information see the ABCB website.

Consultation

This is a consultation document where interested parties are invited to provide comment on any matter raised in this RIS. A number of consultation questions are listed throughout the document and respondents are encouraged to address these questions to assist in the development of a Final RIS. Comments are invited by close of business Friday 21April 2017, and can be emailed to with the subject title “Application of Temperature Control Requirements for Heated Water”.

The ABCB office will review all comments received and incorporate stakeholder information and data into the regulatory analysis, as appropriate. The RIS will be revised in light of stakeholder comments and will be forwarded to the Board as an input into its decision-making.

The Consultation RIS can be downloaded from the ABCB website at abcb.gov.au/consultation/regulation-impact-analysis/consultation-ris.

Copyright

© Copyright 2017 Australian Government, States and Territories of Australia. The Regulation Impact Statement regarding Application ofTemperature Control Requirements for Heated Waterbelongs to the Australian Government, State and Territory Governments. Material contained in the publication may be reproduced for educational purposes and for use as permitted under the Copyright Act 1968. Otherwise, no part may be reproduced without prior permission. Requests and inquiries concerning reproduction and rights should be directed in the first instance to:

The General Manager

Australian Building Codes Board

PO Box 9839, Canberra City, 2601

Or by email: .

Contents

Problem

Objective

Options

Impact Analysis

Consultation

Conclusion

Problem

This Regulation Impact Statement (RIS) considers whether the current application of the requirements for temperature control when replacing water heaters in private residencesis having a measurable impact to the occurrence of scalding injuries and fatalities in Australia.

The Plumbing Code of Australia (PCA) requires heated water supplied by a new heated water service to be delivered to fixtures used primarily for personal hygiene at a temperature which reduces the likelihood of scalding[1]. These fixtures include showers, baths, hand basins and bidets.

The Deemed-to-Satisfy Provisions (D-t-S) reference Australian/New Zealand Standard (AS/NZS) 3500.4 andrequires all new heated water services to be fitted with a temperature control device that limits the temperature at the outlet to a maximum of 50 degrees centigrade[2]. This requirement was first introduced in 1996 and has had a marked effect on reducing the number of scalding incidents. Research shows that hot water above 50 degrees significantly increases the risk of scalding from 5 minutes at 50 degrees to 5 seconds at 60 degrees[3]. Hence limiting heated water to a maximum of 50 degrees is considered a key factor in preventing scalding to occupants of private dwellings.

New water heaters installed in existing private dwellings are regulated through the PCA under State and Territory legislation. The requirements contained in the PCA and referenced documents are subject to the interpretation of each State and Territory plumbing administration.

The question this RIS seeks to address is what constitutes a new heated water service and to what extent should the provisions apply to water heaters that are replaced with “like-for-like” water heaters.

In New South Wales, Queensland and the Northern Territory all new water heaters installed in existing private dwellings must be tempered to 50 degrees. All other jurisdictions allow “like for like” replacement water heaters to be installed without temperature control if the water heater is of the same fuel source and has not previously been fitted with a temperature control device.

Hence the nature of the problem is that while there is nationally consistent application in tempering water heaters in new private dwellings, there is inconsistency when applying the same requirements to replacement “like-for like” heaters. This could be reducing the predictability of heated water temperature for some users, because the delivery temperature of the water can vary from building to building, and from jurisdiction to jurisdiction. This may be resulting in an increased incidence of injury and/or fatality in those jurisdictions that do not require temperature control devices.

The goal of the National Construction Code (NCC) is to enable the achievement of nationally consistent, minimum necessary standards of relevant safety (including structural safety from fire), health, amenity and sustainability objectives efficiently. Developing nationally consistent building and plumbing requirements is also a primary objective of the ABCB as described in the ABCB’s Intergovernmental Agreement[4].

The scope of this RIS is focused on stand-alone water heaters which are replaced with a water heater of the same fuel source in private dwellings - houses and single occupancy units in apartment buildings. New buildings and all other buildings are excluded from the analysis.

Consultation Questions
  • Do you agree with the description of the problem?
  • Are there any other characteristics of the problem not identified by the RIS?

Extent of the Problem

The extent of the problem relates to the number of injuries and fatalities that are occurring in Australia as a result of being scalded from heated water supplied by a replacement stand-alone water heater. The analysis uses the best available information on incidences of injury and fatality from two sources – information from the National Coronial Information System (NCIS) on fatalities and information from the Australian Institute of Health and Welfare (AIHW) on injury data. Both reports should be read in conjunction with this analysis and can be found at the ABCB website.

Fatalities

Between 2001 and 2013, 59 fatalities were recorded in all buildings as a result of scalding from mains supply heated water. The data shows that most scalding fatalities occurred in private dwellingsand to elderly people as shown in Charts 1 and 2.

Chart 1 – Location of Scalding Fatalities 2001-2013 (Number)

Source: National Coronial Information System Mains Water Scalding Fatalities in Australia 2001 – 2013

Chart 2 – Occurrence of Scalding Fatality by Age 2001 -2013 (Percent)

Source: National Coronial Information System Mains Water Scalding Fatalities in Australia 2001 – 2013

The coronial data describes mains water scalding fatalities by water temperature as chiefly “hot”, “boiling”, “excessively hot”, “scalding” and some fatalities have occurred at temperatures 55 degrees and greater. This information indicates the temperature of the heated water associated with fatalities is higher than 50 degrees.

Hence it may be inferred that this water was heated without temperature control, which is possible under the “like for like” application of the regulation. It is possible that as people age in their homes and replace their water heaters from time to time, without tempering, they become more prone to accidental scalding. Fatalities may have occurred in these circumstances.

The coronial data shows a trend decline in the number of scalding fatalities over 2001 to 2013. This could be largely attributed to the introduction of temperature control in 1996 andsuggests that the problem, as described above, may be self-correcting and not require government intervention. Moreover the end–point in 2013 is small, at 2 fatalities, and given the downward trend could be lower in subsequent years. Hence the extent of the problem in terms of fatalities may be too small to warrant changing current practices in some jurisdictions.

Chart 3 –Scalding Fatalities over Time (Number)

Source: National Coronial Information System Mains Water Scalding Fatalities in Australia 2001 – 2013

It is worth examining whether the number of fatalities has been proportionately lower in the jurisdictions that require tempering of replacement water heaters. The following graph shows that the number of fatalities relate directly to the population in each of the jurisdictions. That is, scalding fatalities are not proportionately lower in those jurisdictions that require tempering of all replacement water heaters. The evidence is contrary to the description of the problem and it would seem that nationally inconsistent application of regulation of replacement water heaters does not affect the risk of scalding fatalities.

Chart 4 – Scalding Fatalities by Jurisdiction (Number; Percent)

Source: National Coronial Information System Mains Water Scalding Fatalities in Australia 2001 – 2013 and the Australian Bureau of Statistics

Injuries

Between 1999 and 2004, an annual average of 9,322 hospitalisationswere recorded by AIHW as a result of scalding related injuries in Australia. Of these, 1,865(1 in 5) hospitalisations occurred due to scalding from hot tap water and 43% occurred in private residences.This results in an annual hospitalisation rate of 801 as a direct result of being scalded from hot water in private residences.

It is not known what percentage of these injuries occurred in jurisdictions that do not require replacement water heaters to be tempered,however, based on the reduced likelihood of scalding below 50oC it is probable that the majority of these injuries occurred where no temperature control devices were installed.

Fortunately, most hospitalised burns are not very severe. For the period 1999-04, over two-thirds (69%) of all burns or scald related injuries resulted in a hospital stay of between 1 and 3 days, with an admission period of 1 day or less accounting for 90% of these cases.

The data on scalding injuries reveals various patterns relating to burn and scald injury hospitalisations, which highlight population groups with special vulnerability. Three groups showing high rates of scalding are: young children under 5, males in their late teens and early twenties and older persons over 70 years of age. Of these groups, young children and the elderly are particularly vulnerable to scalding from hot tap water. There is no available evidence to indicate that people with disability are disproportionately impacted by scalding from hot water based on the available information.

Consultation Question
  • Are you aware of any other research or data that could be used to inform the extent of the problem?

Objective

The objectiveof the PCA is to support the health and safety of occupants in relation to potential risks of scalding from heated water for personal hygiene purposes in private dwellings.

The objective of this RIS is to ensure that the NCC requirements are as far as practicable consistent across the States and Territories as described by the ABCB’s Intergovernmental Agreement.

Options

The following choices are presented for consideration and comment.

The Status Quo

The Status Quo is the default choice for decision-makers in considering alternatives to achieve the objectives. Where the incremental impacts of other options would result in more costs than benefits, or would be ineffective in addressing the problem or achieving the objectives, the RIS will conclude in favour of the Status Quo.

The Status Quo will be regarded as a baseline to determine the incremental impacts of the option.

The Status Quo will involve continuing disparate application of regulation amongst the jurisdictions, where three jurisdictions require all new water heaters to be tempered to a maximum temperature of 50 degrees, and where the other jurisdictions permit like for like replacement of water heaters in private dwellings without additional tempering.

Option 1 – to require all replacement water heaters to be tempered to 50 degrees centigrade

Under the Option, the PCA would be amended to apply the current requirement applicable to heated water systems in new dwellings to replacement water systems in existing dwellings.

The focus of this RIS is the disparate application of existing regulations by the States and Territories, so a non-regulatory option would not address this issue.

Impact Analysis

The principal stakeholders of this RIS are occupants of existing private dwellingswith stand-alone water heaters, particularly the elderly and people who may be vulnerable to scalding from hot water.

Cost of the Option

There will be no cost implications to New South Wales, Northern Territory or Queensland as a result of implementing the option as these States and Territories require tempering of heated water in all circumstances. The costs of the option therefore impact the remaining jurisdictions –Australian Capital Territory, Victoria, South Australia, Tasmania and Western Australia. These jurisdictions comprise of 49% of the entire dwelling stock in Australia[5]. It is not clear to what extent tempering valves are being installed voluntarily in these jurisdictions and hence the cost impacts may be less depending on current practice. Plumbing practitioners are encouraged as part of this consultation process to provide information on the extent to which tempering is being undertaken voluntarily in the jurisdictions impacted by the option.

The cost of the option has been developed using the following information:

  • There is estimated to be 8 million private dwellings in Australia.

Inferred from 160,000 new dwelling units, divided by the percentage of new dwellings in the dwelling stock of 2%.

  • The percentage of private dwellings impacted by the option is 49%.

Based on the share of dwelling completions in ACT, VIC, SA, TAS and WA: 1984 to 2016.

  • The expected economic life span of a stand-alone water heater is 15 years.

Based on average life of water heater.

  • 78% of all water heaters are expected to be replaced with a heater of the same fuel type.

Based on Wilkenfeld (2009) estimate that 78% of water heaters are replaced with one of the same fuel type[6].

  • The average cost of installing a tempering valve is $143.00.

Based on Rawlingsons Construction Handbook (2016) Page 457.

The cost of the option is shown in Table 1.

Table 1: Cost of the option

Description / Calculation
Stock of private residences in Australia. / 8,000,000
Stock of residences in jurisdictions impacted by the option. / 3,920,000
Number of water heaters requiring replacement, per year. / 261,333
Number of water heaters replaced with a “like-for like” water heater / 203,840
Average cost from installing a tempering valve / $143
Cost of requiring tempering valves for “like-for-like” replacements / $29,149,407
Present Value cost of the option / $219,064,564

The cost of the option in Present Value terms is $219 million.

Benefits of the Option

The benefits can be assessed from four perspectives.

First, the evidence around the nature of the problem shows that the people most at risk from scalding fatalities from heated tap water are the elderly in their own homes. Over the years 2001 to 2013, 36 out of 59 scalding fatalities, or 60%, occurred to people over the age of 70years. The scalding occurs at temperatures above 50oC so it seems that either the heated water systems may have been installed prior to the introduction of tempering for new systems in 1996, or those installed on a “like-for-like” basis over a period of years. The incidence of scalding fatalities increases dramatically over the age of 70 years. It is likely that the ageing process occurring concurrently with “like-for-like” replacement of water heaters has placed the elderly at risk. Hence the Option could avoid this risk occurring to elderly people.

Second, three jurisdictions require all replacement water heaters to be tempered to a maximum of 50oC, while other jurisdictions allow “like-for-like” replacement so that existing water heaters can be replaced by a new water heater without tempering. It is worth examining whether the number of fatalities have been proportionately lower in the jurisdictions that require tempering of all water heaters. Chart 4 shows that the number of scalding fatalities relate to the population in each of the jurisdictions. Hence existing regulation on replacement water heaters would seem to make no difference to scalding fatalities. It would also seem that nationally inconsistent regulation of replacement water heaters does not affect the risk of scalding fatalities. Hence the regulatory change proposed under the Option may have no effect on the incidence of scalding to elderly and other people.

Third, the extent of the problem summarised in Chart 3 shows a trend decline in fatalities over 2001 to 2013, with fatalities at 2 fatalities in the latest year and could well be lower in future years. In terms of elderly people who are most at risk from scalding, these figures suggest that about 1 fatality per year may be expected in the near term.

Finally, the extent of the problem from the perspective of injuries is not completely known. It is known that the total cost of scalding related hospitalisations in Australia for a single year 1999-2000 was $40.2 million and $38.7 million for 2001-2002[7]. Dividing the total number of scald hospitalisations with the total cost, the average cost per hospitalisation is approximately $4,300.

Based on these figures, the expected annual cost as a direct result of scalding related injuries from hot tap water in residential buildings is $3,444,300, or $49,132,693 in Present Value terms.

Overall, elderly people and young children can be clearly identified as an at risk group. The regulatory change proposed under the option, however, may be ineffective in altering the incidence of scalding fatalities. It is also apparent that the incidence of scalding fatalities from heated water is currently very low and on a decreasing trend. In these circumstances it is difficult to claim any material benefits would occur in relation to fatalities under the option.