Mrmarkfeather Executivedirector

ESVref:CM-1256

Cr8.1ting asafers+a\c,,.,;•r

e-ectricitya'ldgas

MrMarkFeather ExecutiveDirector

EnergySectorDevelopmentBranch

DepartmentofStateDevelopment,BusinessandInnovationLevel9,121ExhibitionStreet

MELBOURNE VIC 3000

DearMark

ESVLETTERONNONESSENTIALPLANNEDNETWORKOUTAGES

IrefertotheDepartment'srecentlypublishedconsultationpaperwhich,amongotherthings,seekscommentontheproposedprohibitionofnon-essentialplannednetworkoutagesonveryhotdays.

Itissuggestedinthepaperthatplannedelectricitynetworkoutagesoccurringonhotdaysputsvulnerablecustomersatrisk,aswellasthosewhorelyonelectricitytomanageroutineactivitiessuchasaccessingfreshwater.Thestatedobjectiveistopreventelectricityoutagesonhotdaysduetonon-essentialmaintenanceworks.

Theproposedsolutiontoachievethisisbyeitherplacingrestrictionsonnon-essentialoutagesonhotdaysthroughamendmentstotheElectricityIndustryAct2000,throughareviewoftheElectricityDistributionCode,orthroughchangestoregulatoryinstrumentsadministeredbyEnergySafeVictoria(ESV),suchastheElectricitySafetyManagementSchemes.

OverthepasttwosummersESVhasreviewedtheproceduresadoptedbyelectricitybusinessesonTotalFireBandays.Thoseenquiriesrevealedthatthe companieshadcomprehensive programsformaintenanceworkstobecompletedthroughouttheyearandthat,priortoanyworkcommencinginrural areaswherefirerestrictionswereinforce,aTotalFireBan Assessmentwascompletedtoestablishwhetherplannedworksshouldproceedornot.Thereviewsalsorevealedthatthecompanieseithercancelledtheplannedworksorrescheduledthemforanearlierstarttimeonthedaysothattheywerecompletedbythemiddleandthehottestpartoftheday.Further,thebusinessesalsohaveinternaloccupationalhealthandsafetyprocessesthatfurtherrestricttheamountandtypeofworkundertakenonextremeheatdays.

ThecurrentElectricitySafety(BushfireMitigation)RegulationsrequirethatoperationandmaintenanceactivitiesoftheMajorElectricityCompanies'supplynetworks,bothduringthefiredangerperiodandondaysofTotalFireBan,beincludedinthetheirbushfiremitigationplans.Thoseplansarerequiredtobemadepubliclyavailableonthecompanies'webpagesandintheirprincipalofficeswithinVictoria.Thoseplansdonotgenerallydetailalltheproceduresadopted,rathertheystatetheprinciplesbeingadopted.Currently,regulationsdonotspecificallyrequirethatcompaniesspecifyactivitiesondeclaredheathealthalertdays.ESVisawarethatcertaincompanieshaveproceduresassociatedwithdeclaredheathealthalertdays.Ifitwasthoughttobeofvaluetohavetheproceduresassociatedwithdeclared

EnergySafeVictoriaA8N27462247657

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(03)96862197

vic.gov.au

heathealthalertdayspubliclyavailable,theElectricitySafety(BushfireMitigation)RegulationsrequirementscouldbebroadenedtorequiredetailsofplanstolimitelectricityoutagesfromroutinenetworkmaintenanceondayswheretheDepartmentofHealthhasissuedaheathealthalert.

Ifitwasconsidereddesirablethattheseproceduresweremadepubliclyavailablesoonerthanlateraspartofthecompanies'bushfiremitigationplans,thensomethoughtwillneedtogointoconsideringwhichpowerswereavailabletocausetheinclusionofthesenewrequirementswithintheplanspriortothoseprovisionsbeingincluded intherevisedElectricitySafety(BushfireMitigation)Regulations.

ThetimingoftheproclamationoftherecentlypassedElectricitySafetyAmendment(BushfireMitigation)Act2014needstobeconsideredasitchangesthesubmissionrequirementsfromannualtofive-yearlyand,assuch,anyearlyproclamationdatewouldmean thatthecompanieswouldnotbystatuteberequiredtosubmitarevisedplanforanotherfouryears.Ifthecurrentlegislationremains,ESVbelievesthatthereis sufficienttimebetweennowand30JunefortheMajorElectricityCompaniestoproducerevisionstotheirbushfiremitigationplansthatincludetherequirementtoincludeheatwaveproceduresinthoseplans.Ibelievethiswouldbeaproportionateregulatoryresponsetothepolicyproblem.

Finally,theDepartmentshouldbeawarethatreducingoutagetimestoundertakeessentialworkshasthepotential tocausemorelivelineworkandthereforeleadtootherassociatedelectricalsafety risks.

I wouldbepleasedtoelaborate onanyoftheseobservationsatyourconvenience.