ENERGY SUPPLY INDUSTRY SAFETY COMMITTEE (ESISC)

Terms of Reference

Purpose

This document sets out the Terms of Reference (TOR) for the Energy Supply Industry Safety Committee (ESISC). Under these TOR, the ESISC is to provide advice to the Ministerial Council on Energy (MCE) through the MCE Standing Committee of Officials (MCE SCO) on the development and implementation of a nationally harmonised safety framework for the energy supply industry by, among other things, providing knowledge and expertise regarding energy safety and related technical matters to help inform MCE and MCE SCO in their deliberations.

Background

In November 2007, the Commonwealth committed to work with State and Territory governments and relevant stakeholders in the energy sector, to improve the consistency of state-based regulations – such as occupational health, technical and safety requirements – that apply to the energy supply industry.

In June 2008, the MCE established the Energy Technical and Safety Leaders Group (the Leaders Group) to develop a plan to achieve further harmonisation of State and Territory technical and safety regulation for the electricity and gas supply industry. The Leaders Group consisted of representatives of gas and electricity network businesses, technical and safety regulators, trade unions, contractors and training bodies.

The Leaders Group presented their Energy Technical and Safety Harmonisation Enhancement Plan (the Plan) to the MCE in December 2009[1]. The Plan contains recommendations for achieving a nationally harmonised framework within which State and Territory energy supply industry safety and related technical regulations could operate.

The Plan proposed an intergovernmental agreement as the central mechanism by which the Commonwealth, State and Territory governments would commit to a series of overarching principles and objectives supporting the enhanced harmonisation of energy supply industry safety and related technical regulation.

In December 2009, the MCE gave in principle agreement to the recommendations contained in the Plan as they apply to MCE Ministers' portfolio responsibilities. MCE Ministers also agreed, as a matter of priority, to work with related portfolio Ministers within their respective governments to progress the proposed IGA.

In response, on [DATE], the Commonwealth, States and Territories endorsed the Intergovernmental Agreement on Energy Supply Industry Safety (the IGA), which is provided at Attachment A. Under the IGA, Commonwealth, State and Territory governments, the Parties, agree to put in place a nationally harmonised safety framework for the energy supply industry which ensures public and industry safety and contributes to the efficient delivery of energy network services by:

  1. facilitating greater labour mobility within and between States and Territories and transmission and distribution networks, in particular to make possible improved emergency responses;
  2. lowering compliance burdens, particularly with regard to multi-jurisdictional energy supply industry owners and/or operators; and
  3. facilitating increased safety framework consistency across the Parties.

The IGA provides that the nationally harmonised safety framework will complement:

  1. the harmonisation ofwork health and safety lawsbeing progressed under the Intergovernmental Agreement for Regulatory and Operational Reform in Occupational Health and Safety;
  2. COAG energy market reforms; and
  3. the National Occupational Licensing System initiatives.

On [DATE], the MCE SCO established ESISC, under interim TOR (Attachment B), to undertake work proposed in the Plan that could commence ahead of the finalisation of an IGA.

These TOR for the ESISC replace the interim TOR and will come into force with the IGA.

Functions and Scope

The ESISC’s functions under these TOR are to:

  • Advise the MCE through MCE SCO, at the request of the MCE or MCE SCO, or upon its own initiative,on the development and implementation of a nationally harmonised safety framework for the energy supply industry by, among other things, providing knowledge and expertise regarding energy safety and related technical matters to help inform the MCE and MCE SCO in their policy deliberations.
  • Develop an implementation plan, including a budget, for the full implementation of the nationally harmonised safety framework for the energy supply industry, for approval by MCE SCO, which has the following key elements taken directly from the IGA:
  1. the creation of a nationally harmonised energy supply industry sector specific safety framework complementary to the Regulatory and Operational reform in Occupational Health and Safety;
  2. the development of a national Energy Network Safety System (ENSS) Australian Standard for electricity (similar to the gas sector standards AS2885 and AS4645), which is sufficiently scalable to meet the purposes of small and/or isolated networks;
  3. the making of the necessary legislative and/or regulatory changes by the Parties, as appropriate to each Party, to ensure the mandatory adherence to the ENSS Standard by all energy supply industry owners and/or operators;
  4. the establishment of the ongoing governance arrangements defined in Part 5 of the IGA to ensure that the integrity of these reforms is maintained;
  5. the contribution to and support of an ongoing work program in industry standards, guidelines and practices development, operating safety rules, legislation, skills and training; and
  6. cooperation and sharing of experience by relevant safety regulators on evaluation of incidents and assessments of whether there is any need for changes to improve the harmonised regime.

The implementation plan for approval by MCE SCO will include possible timeframes for:

  1. a review of legislative and/or regulatory instruments necessary to support opportunities for harmonisation of approaches to energy supply industry safety regulation;
  2. the harmonisation of approaches of the Parties to validating, enforcing and reporting compliance with ENSSs prepared by energy supply industry owners and/or operators; and
  3. investigation of arrangements for the acceptance of an approved ENSS applicable to an energy supply industry owner and/or operator, which has been validated by any one State or Territory party across the Parties.
  • Where necessary, be involved in and liaise with relevant bodies and key stakeholders regarding concurrent work related to:
  1. the National Refresher Training Recognition Protocol for the energy supply industry;
  2. the Regulatory and Operational Reform in Occupational Health and Safety being progressed by Safe Work Australia;
  3. the National Occupational Licensing System initiatives being undertaken by COAG;
  4. the development and implementation of the Australian Electricity Supply Industry Skills Passport; and
  5. relevant legislative reviews.
  • Establish and oversee working groups, as required, to work on specific tasks and deliverables related to the harmonising of work practices and training competencies; the harmonising of operating safety rules; the development of an Australian Standard for ENSS; regulatory issues; and any other work required to meet these TOR.

While undertaking these functions, the ESISC shall:

  • Apply a net benefit test to any change proposals before submission to the MCE or MCE SCO;
  • Operate in a manner consistent with the principles outlined in Part 4 – Principles of the IGA and, accordingly, ensure that its work:
  1. recognises that the States and Territories have primary responsibility for the regulation of safety in the energy supply industry, which is addressed in the IGA;
  1. will not alter the primacy of State and Territory responsibility and accountability for safety regulation;
  1. strives for consistency in achieving the outcomes agreed in the IGA, without the development of model or applied legislation.
  • Consider any advice or guidance provided to ESISC by the MCE or MCE SCO; and
  • Provide a forum for the discussion, monitoring, interpretation and clarification of harmonisation work for the benefit of relevant parties as this work is developed and implemented.

Tasks and Deliverables
The ESISC shall:

  • Report, provide advice and make recommendations to the MCE through MCE SCO on its work under these TOR, on request by the MCE or MCE SCO.
  • Submit to MCE SCO for approval the implementation plan, as outlined in the Functions and Scope section of these TOR, for the full implementation of the nationally harmonised safety framework for the energy supply industry within three months of these TOR coming into effect. This implementation plan will cover an initial period of five years from the date of ESISC establishment.
  • Submit to MCE SCO for approval, every 12 months from the commencement of these TOR, and as requested by MCE SCO, updates on progress made against the implementation plan and, if necessary or requested, a revised implementation plan, including a revised budget.

Energy Network Safety Systems (ENSS)

  • Develop an Australian Standard for ENSS and any other standards the MCE deems necessary.
  • On completion of the Australian Standard for ENSS, progress work to establish a central ENSS Register, including arrangements for its operation.

Consistency with National Occupational Health and Safety

  • Engage with Safe Work Australia and associated bodies to ensure consistency in approach, timeliness and terminology, in particular, with respect to the definitions of work, as it applies to the energy supply industry, and the national safety framework for the energy supply industry

Consistency with National Occupational Licensing System initiatives

  • Engage with the Council of Australian Governments National Licensing Task Force and associated bodies to ensure consistency in approach, timeliness and terminology, in particular, with respect to the definitions of work, as it applies to the energy supply industry, and the national safety framework for the energy supply industry.

Legislative and regulatory issues

  • Provide recommendations to the MCE to facilitate acceptance of the Australian Standard for ENSS by the Parties, regulators and the energy supply industry.
  • Work with the Parties to develop a harmonised approach for validation of ENSS developed under the Australian Standard.
  • Identify and prioritise elements of the safety framework for the energy supply industry for increased harmonisation, having regard to the impact of any changes resulting from the introduction of the Australian Standard for ENSS, within one year of the establishment of the Australian Standard for ENSS.

Expanded National Refresher Training Recognition Protocol for the Electricity Supply Industry

  • Ensure that any additional training competencies and emergency critical work practices identified by ElectroComms and EnergyUtilities Industry Skills Council (trading as EE-Oz Training Standards), in collaboration with the Energy Networks Association and the Communications, Electricity and Plumbing Union, are added to the existing National Refresher Training Recognition Protocol for Emergency Situations by the end of September 2011.

Generation Harmonisation

  • Within six months of these TOR coming into effect, assess the extent to which the National Occupational Health and Safety model Act and Regulations address workplace safety and related technical issues relevant to the electricity generation and gas plant sectors. If the ESISC considers that the issues are not adequately addressed, it will advise the MCE SCO of this. MCE SCO may direct ESISC to develop alternative proposals for coverage of the electricity generation and gas plant sectors under the nationally harmonised safety framework for the energy supply industry. Such alternative proposals will not impinge on other technical and safety requirements of the Parties and will be additional to, but not seek to replace, the OHS Act and Regulations.

Harmonised Operating Safety Rules

  • Investigate the differences between State and Territory Operating Safety Rules and recommend to the MCE a single set of rules for the electricity supply industry by the end of June 2012.
  • Monitor and maintain the effectiveness of the nationally harmonised safety framework for the energy supply industry and, if directed by the MCE, undertake reviews of the effectiveness of the nationally harmonised safety framework, including on.
  • responses to an emerging safety issue;
  • the extent to which safety objectives are being met;
  • potential barriers to workforce mobility;
  • capacity to effectively respond to an energy supply industry safety event;
  • the extent that unnecessary regulatory burdens/overlaps may exist; and
  • any other matter at the discretion of the MCE.

Governance

ESISC

ESISC membership shall be as specified in the IGA.

Under these TOR, the ESISC is to make all reasonable efforts to reach agreement by consensus when making decisions as to the exercise of its functions and performance of its tasks.Where a consensus cannot be reached, alternative options, each supported by reasons, will be provided to the MCE SCO to enable MCE SCO to agree the final recommendation for MCE.

ESISC working groups

  • ESISC working groups are to report to the ESISC.
  • The ESISC is to determine the composition of the working groups and appoint a chair for each working group.
  • ESISC working groups are to make all reasonable efforts to reach agreement by consensus when making decisions as to the exercise of their functions and performance of their tasks.Where a consensus cannot be reached, alternative options, each supported by reasons, will be provided to the ESISC to enable ESISC to agree the final recommendation for MCE SCO.

ATTACHMENT A – Intergovernmental Agreement on Energy Supply Industry Safety Regulation

ATTACHMENT B – Interim terms of reference for the ESISC.

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