Energy Safety: Annual Report 2011 – 2012 and Business Outlook

Energy Safety
Annual Report 2011 – 2012
and Business Outlook 2012 – 2015
Contents
Annual Report 2011 – 2012............. 1
Business Outlook 2012-2015....... 17
How we contributed in 2011–2012.............2
Our team.....................................................17
Highlights . ...............................................3
How we contribute to MBIE outcomes
and government goals............................ 18
Energy Safety policy advice . ....................... 4
Regulatory framework.................................. 6
International coordination
and representation....................................... 7
Compliance and enforcement....................... 8
Notifiable accident investigations................ 9
Industry engagement..................................10
Business and online services...................... 11
Business development and capability.........12
Service Delivery Standards and
Business Activity Statistics.......... 13
Audits undertaken.......................................13
Investigations..............................................14
Business objectives.....................................14
Regulatory framework.................................19
International coordination and
representation.............................................19
Energy Safety policy advice.........................21
Compliance and enforcement..................... 22
Notifiable accident investigations.............. 24
Industry engagement................................. 25
Business and online services..................... 26
Business development and capability........ 27
Energy Safety – Underlying Goals . ............ 28
Acronyms and Abbreviations.......29
Contacts....................................... 31
Summary of Reported Accidents............. 15
Statement of Financial Performance....... 16
ENERGY SAFETY Annual Report 2011–2012
ii
Annual Report 2011 – 2012
Energy Safety is the government agency responsible for providing an effective investigation,
compliance, enforcement, and conformance regime for achieving electrical and gas safety
outcomes. Our work is carried out under the provisions of the Electricity Act 1992, the Gas Act
1992, and with aspects of the Hazardous Substances and New Organisms Act 1996, and their
associated Regulations and Gazette notices.
We are empowered through a statutory Secretary, the chief executive of the Ministry, or their
delegate, who is responsible for operating particular provisions of the Electricity Act and the Gas
Act. We work with both the public and industry to create an environment in which:
• People and property are safeguarded from the dangers of electricity and gas.
• Electrical and gas appliances, installations, electricity and gas supply and generating
systems are safe.
Because electricity and gas can be hazardous for people, their property, and the environment
if not used properly, Energy Safety raises safety awareness and promotes the safe use and
supply of this energy. We see this as important work and remain committed to maintaining and
improving New Zealand’s safety record. We also monitor, encourage and enforce compliance with
the laws relating to electrical and gas safety.
Energy Safety’s work programme for 2011–2012 was aligned with specific outcomes described
in the Ministry of Economic Development’s (MED) Statement of Intent 2011–2014. Through
these outcomes, as highlighted below, our work contributed to the MED’s objectives and the
Government’s overall goal of lifting the long-term performance of the New Zealand economy.
ENERGY SAFETY Annual Report 2011–2012
1
How we contributed in 2011–2012
MED
OUTCOMES
ENERGY
SAFETY
OUTPUTS
Efficient,
International
Reliable and International
Linkages
Linkages
Responsive
Infrastructure
Services
Dynamic and
Dynamic
Trusted
and
Trusted
Markets
Markets
Efficient and
Effective
Delivery
Energy Safety
Policy Advice
International
Coordination
and
Representation
Compliance and
Enforcement
Industry
Engagement
Acts and
Regulations
Electricity and
gas product
compliance
framework
Audits
Business and
online services
Investigations
of unsafe
installations,
non-compliance,
and accident
events
Business
development
and capability
GTRC
Regulatory
Framework
ERAC
OUR FOCUS: To be an efficient and effective regulator that is proactive on public energy safety
issues, responsive to industry and consumer energy safety concerns, and to model regulatory
best-practice.
ENERGY SAFETY Annual Report 2011–2012
2
Highlights
Policy Advice
Compliance and Enforcement
> Progressed work related to the Gas
and Electrical Certification and Fees
Review. The outcomes will meet Cabinet
directives to improve the certification
regimes while continuing to prioritise
public safety outcomes.
> Continued a targeted risk-based audit
compliance programme to ensure product
suppliers, manufacturers, networks,
distribution systems, installations and
appliances comply with safety standards.
> Worked with key industry organisations,
stakeholders and experts to ensure
the revised certification regimes will be
workable from an industry perspective.
> Began development of an online database
of gas and electrical installation work
for work classified as “high risk”. The
database will go live by July 2013 as a
result of planned changes to the gas and
electrical certification regimes.
International Representation
> Established an informal cooperative
agreement with North American
(Canada and United States of America)
gas product certification agencies to
support New Zealand recognition of gas
appliances certified under their regimes.
> Contributed to the Electrical Regulatory
Authorities Council (ERAC) and Gas
Technical Regulators Committee (GTRC)
to maintain alignment and consistency,
and exchange information on energy
safety issues across borders. A key
project included the collection of data
for gas fatal accident analysis with GTRC
and data for electrical fatal accident
analysis with ERAC.
> Energy Safety was featured at an APEC
workshop in Singapore in May 2012. The
workshop promoted the adoption of Risk
Assessment disciplines within the APEC
and ASEAN region using the principles
of the assessment model developed by
Energy Safety. The assessment model
is now being refined for adoption by
Australian regulatory agencies.
Industry Engagement
> Launched the new Energy Safety website
making it easier for clients and the public
to find the information they need.
Investigations, Prosecutions and
Prohibitions
> Completed 63 investigations of significant
electrical and gas accidents and incidents,
where there was a serious injury or
property loss as defined in section 16 of
the Electricity Act 1992 and section 17 of
the Gas Act 1992.
> Achieved a sentencing outcome for a
joint prosecution with Radio Spectrum
Management for the sale of an unsafe
charger and adaptor.
> Two electrical products were prohibited
from manufacture, importation, sale
(including offer to sell), and use (including
installation).
ENERGY SAFETY Annual Report 2011–2012
3
EFFICIENT, RELIABLE, AND RESPONSIVE INFRASTRUCTURE SERVICES
Improving the quality and reliability of key infrastructure services that support
growth
Energy Safety policy advice
Energy Safety provided quality policy advice on the safe supply and use of electricity and gas,
while recognising the impact that regulation has on New Zealand’s economy and prosperity.
This year a key focus was the Certification and Fees Review project, supplemented by further
regulatory adjustments. Energy Safety also completed a range of Standards to develop and
maintain the Standards environment on which the Regulations rely.
Certification and Fees Review
Acts and Regulations
> Progressed the Gas and Electrical
Certification and Fees Review. The
outcome will meet Cabinet directives to
improve the certification regimes while
retaining public safety outcomes. Under
the new regimes:
> Amended the gas and electricity
Regulations to:
• certification will be strengthened
• coverage will be extended to include
all electrical and gas work
• certification fees will be
removed. > Worked with relevant government
agencies to ensure a cohesive crossgovernment approach to the new
certification regimes.
> Developed a communications strategy
and implementation plan to inform
tradespeople about the new certification
regimes and fee changes.
• recognise North American
certification regimes for gas
appliances, and
• postpone the implementation of
the gas appliance regime until 1 July
2013, and
• reflect changes to Standards and
technological changes.
> Completed a post-implementation
stocktake of key initiatives introduced by
the 2011 Amendment Regulations.
> Provided policy advice on the structure
and implementation of updated
Regulations.
> Continued discussions around possible
review of the Electricity (Hazards from
Trees) Regulations.
> Published the Summary of Submissions
on the Gas and Electrical Certification
and Fees Review Discussion Document
and the Gas and Electrical Certification
and Fees Review Survey Summary on
our website.
> Began drafting new 2012 Amendment
Regulations to be gazetted in
September 2012.
ENERGY SAFETY Annual Report 2011–2012
4
Standards
Other policy activities
> Continued a review of key joint safety
standards for networks, installations,
and appliances:
> Briefed the incoming Minister of Energy
and Resources on our work and key
safety outcomes.
• a NZ-only amendment to AS/NZS
3000 ‘Wiring rules’ to clarify the use
of sensitive 10 mA RCDs
> Provided policy advice on the safe
supply and use of electricity and gas.
• a NZ-only amendment to AS/NZS
4645 gas distribution to define
exclusion zones around gas meters
and adjustments to the applicable
pressure range
> Continued an on-going review of the
effectiveness of gas and regulatory
frameworks to ensure fitness and costeffectiveness.
• adoption of AS 3645 as a
certification standard for the New
Zealand gas appliance certification
regime.
> Work also commenced on further
significant revisions of AS/NZS 3000
electrical wiring rules and AS/NZS 5601
gas installations.
> Worked with the Electricity Engineers
Association, the Electricity Networks
Association, Standards New Zealand,
certification bodies and industry on
the introduction of Safety Management
Systems (SMS).
> Monitored the introduction of SMS for
electricity networks.
> Continued research regarding
alternatives to the Multiple Earth Neutral
(MEN) system for electricity supply.
ENERGY SAFETY Annual Report 2011–2012
5
Regulatory framework
Energy Safety worked to improve the regulatory environment by delivering an effective and
innovative regulatory framework while keeping compliance costs to a minimum. We kept
the framework in line with recognised good regulatory practise by aligning regulations with
international guidelines, supporting trade and business, and implementing risk management
principles into Regulation.
Safety framework
Memorandum of Understanding
> Continued a rolling review of the gas and
electricity Regulations and planned for
amendments as needed.
> Continued to maintain and work
towards formal MoUs with other
government and non-government
agencies to enhance inter-regulatory
cooperation on shared responsibilities.
> Consulted with key stakeholders to
ensure that the evolution of legislation
followed good international regulatory
practice.
Standards New Zealand
> Continued the review and revision of
Standards to support the new electricity
and gas regulatory frameworks, in
particular those associated with the gas
appliance regime.
> Worked with Standards New Zealand
and industry to promote a shift towards
direct adoption of international
Standards where appropriate.
ENERGY SAFETY Annual Report 2011–2012
6
INTERNATIONAL LINKAGES
Improving the linkages that allow New Zealand firms to benefit from trade and
the flows of investment, skills, and technology
International coordination and representation
Energy Safety’s work with overseas regulators helps New Zealand to achieve greater
international regulatory convergence and reduce trade barriers and the associated costs of
moving electricity and gas products across borders. It allows interchange of knowledge and
expertise with international regulators to improve energy safety outcomes.
This year a key focus included leveraging our already existing relationships in the international
electricity sector to improve and broaden relationships in the gas sector.
Australia
> Contributed to the Electrical Regulatory
Authorities Council (ERAC) and Gas
Technical Regulators Committee (GTRC)
to maintain alignment and consistency on
energy safety issues across borders.
> A key project included the collection of
data for the analysis of fatal gas accidents
with GTRC and data for fatal electrical
accidents with ERAC.
Asia-Pacific
> Shared electrical and gas safety
information with Asia-Pacific regulators to
improve energy safety in New Zealand and
the Asia-Pacific region.
in both gas and electricity spheres.
Provided information to support
negotiations on transparency provisions
in relation to Technical Barriers to Trade.
> Energy Safety was featured at an APEC
workshop in Singapore in May 2012. The
workshop focussed on the application of
risk assessment techniques to electrical
equipment Regulation and promoted the
adoption of risk assessment disciplines
within the APEC and ASEAN region using
the principles of the assessment model
developed by Energy Safety. The model
is now being refined for adoption by
Australian regulatory agencies.
Multilateral
> Continued to work with China, APEC,
and other trading partners to improve
safety and compliance conditions for
the facilitation of the trans-border
movement of electrical products. Explored
opportunities to implement similar
arrangements for gas appliances.
> Continued to align electrical and gas
product compliance on an international
basis, and across other product
compliance frameworks, to reduce
regulatory costs for firms operating in
international markets and to reduce
product costs for consumers.
> Participated in the government-togovernment cooperation agreement with
Taiwan to expand cooperative electrical
regulatory activities and to include
cooperative gas regulatory activities.
> Provided support as required to New
Zealand international negotiations in
relation to electrical products in a WTO
context.
> Participated in Trans-Pacific Partnership
(TPP) work as needed. Worked in
partnership with MED’s Competition,
Trade and Investment Branch to explore
the possibility of increased cooperation
> Established an informal cooperative
arrangement with Canadian and
United States of America gas product
certification agencies to support
the New Zealand recognition of gas
appliances certified under their regimes.
ENERGY SAFETY Annual Report 2011–2012
7
DYNAMIC AND TRUSTED MARKETS
Improving the competitiveness, integrity, and effectiveness of New Zealand’s
markets
Compliance and enforcement
Energy Safety continued the development and implementation of its compliance and
enforcement strategy, including the incorporation of the 2011 Amendments to the gas and
electricity Regulations. Energy Safety’s strategy focused on actively targeting known risk areas
that impact on consumers and providing updated statistical data to support the Regulations.
Compliance audits
Prohibition
> Continued a targeted risk-based audit
compliance programme to ensure
product suppliers, manufacturers,
networks, distribution systems,
installations and appliances comply with
safety standards.
> Two electrical products were prohibited
from manufacture, importation, sale
(including an offer to sell), and use
(including installation):
> Conducted audits of electricity and
gas suppliers, networks, distribution
systems, installations and appliances.
> Supported and encouraged the use of
robust self-audit protocols:
• for SMSs by electricity and gas
supply system operators and works
operators, and
• for suppliers of electrical and gas
products to meet essential safety
requirements.
> Strengthened the quality of service
delivery procedures for third-party
accredited electricity and gas safety
practitioners to carry out external audits
and investigations.
• Inverters, that connect directly into an
installation by a 3-pin plug, including
but not limited to the type of inverter
known as “Grid Tie Inverter”
• Go-4-Green Energy Smart SD-001
Prosecution
> Achieved a sentencing outcome for a
joint prosecution with Radio Spectrum
Management for the sale of an unsafe
charger and adaptor. This resulted in a
total fine of $13,500, of which $8,000 was
for the sale of an unsafe item.
Cooperation
> Coordinated product compliance auditing
with other product regulatory agencies to
protect the integrity of electrical and gas
appliances entering New Zealand.
> Continued to work with manufacturers
and importers to initiate proactive audit
programmes and education strategies in
the electricity and gas sectors.
> Provided input to the Electrical Engineers
Association (EEA) on proposed safety
wording for consumers, around trees and
power lines.
ENERGY SAFETY Annual Report 2011–2012
8
Other projects
> Developed the approved practitioner
framework for the assessment of gas
appliances.
> Updated compliance guides to align with
2011 Amendments to Regulations.
Notifiable accident investigations
Energy Safety provided effective and efficient accident investigation services with the aim
of reducing the number of incidents occurring. Our goal is to improve the knowledge and
understanding of incident causation and thereby improve incident mitigation.
> Conducted investigations of significant
electricity and gas accidents where there
was serious injury or property loss as
defined in section 16 of the Electricity
Act 1992 and section 17 of the Gas Act
1992.
> Analysed these accidents to focus
Energy Safety’s outreach and
education programmes and Standards
development.
> Published detailed quarterly reports and
the 2011 Summary of Reported Electrical
and Gas Accidents.
> Continued to develop staff skills and
invest in tools to enable efficient
investigation of existing electrical and
gas services and products.
ENERGY SAFETY Annual Report 2011–2012
9
EFFICIENT AND EFFECTIVE DELIVERY
Delivering better, smarter public services
Industry engagement
Energy Safety continued to work in partnership with industry to maintain a unified energy safety
programme that underpins Energy Safety’s work and enhances the electricity and gas sectors’
potential for economic growth.
Outreach and education
> Energy Safety released safety advisories
and safety alerts in response to safety
issues, including:
• Advising owners and operators of
hotels, motels and other short-term
accommodation to take care with
the condition of cords for electrical
appliances.
• Advising consumers to use licensed
workers after Energy Safety became
aware of a number of instances
where unsafe situations had arisen
following repairs to buildings
damaged in the Canterbury
earthquakes.
• Warning gas consumers to seek
expert advice and help following a
Maui gas pipeline outage.
> Worked with the energy industry and
other safety regulators to develop a
common energy safety strategy to
complement Energy Safety’s work
programme. Key stakeholders included
LPG Association of New Zealand,
Ministry of Education, Housing New
Zealand, Motel Association, New Zealand
Fire Service, and GTRC.
> Continued Energy Safety’s outreach and
education programmes with product
suppliers and direct interaction with
consumers at trade shows, external
venues, and conferences.
> Attended the ECANZ electrotechnical
trade show, the Waimumu field day,
and other events.
> Increased safety awareness by working
with manufacturers and importers
through the audit process, and
implementing proactive education
strategies that enhanced our
effectiveness as a safety regulator.
> Continued to work with website
providers and their sellers and
members to encourage good business
practice through compliance and
risk management (Sellers were often
unaware of their responsibilities
around the sale of electrical equipment
but levels of non-compliance
decreased as awareness increased).
Safe supply and use of electricity
and gas
> Worked with the electricity and gas
industries to identify safety issues
and trends, and to proactively address
accidents and issues.
> Continued to develop risk-based
audit profiles and plans to promote
consumer safety in areas such as
schools and holiday parks, and around
appliances such as patios and cabinet
heaters.
ENERGY SAFETY Annual Report 2011–2012
10
> Maintained relationships with other
regulators and organisations with an
interest in energy safety to ensure
shared safety outcomes were achieved.
> Participated in the aviation industry
committee process for drafting a code
for aircraft electrical supplies (ground
power units).
Stakeholder awareness
> Worked with electrical associations
and stakeholders to share information,
discuss issues, and improve safety
assurance. The common goal is to
improve safety in the electricity sector.
> Continued to work with the Gas
Community Group to develop key areas
of work and improve safety.
> Developed and released online guides
explaining changes to the electricity and
gas Regulations.
> Produced a video for electrical workers
on changes to the electricity regulations.
This work was project managed by
Standards New Zealand on behalf of
Energy Safety and EWRB.
Business and online services
Energy Safety updated our business and online services to improve client service and enable
businesses to interact more easily with us. We launched a new Energy Safety website and
continued to improve access to our data systems via our advanced IT system, Energy Safety
Intelligence (ESI).
Energy Safety website
Energy Safety Intelligence (ESI)
> Energy Safety’s new website was
launched in May 2012. The new
website makes it easier for clients and
consumers to find the information and
services they need and better reflects
Energy Safety’s regulatory role.
> ESI provides the information database
and online case management systems
that support the safety work Energy
Safety does.
> Updated the Energy Safety website’s
content and navigation to reflect recent
amendments to electricity and gas
Regulations.
> Updated the gas appliance declarations
website to reflect recent amendments to
gas Regulations.
> In 2011 Energy Safety continued to
update its data management systems
to improve access to detailed and
accurate energy safety information.
The information was shared with other
regulators, consumers, and stakeholders.
> Discontinued planned improvements
to ESI’s reporting capability that would
have improved access by external
agencies. Third-party access was deemed
to be a significant security risk.
ENERGY SAFETY Annual Report 2011–2012
11
Other projects
> Continued to carry out benchmarking
and sharing of best practice with our
Australian counterparts.
> Conducted Energy Safety’s annual
client survey, assessed feedback, and
identified improvements to website
information and client response
processes.
> Began the development of an online
database of gas and electrical
installation work for work classified as
“high risk”. The database will go live by
July 2013 as a result of planned changes
to the gas and electrical certification
regimes.
> Maintained the gas appliance
declarations database and implemented
third-party certification provisions.
Business development and capability
Energy Safety regularly reviewed our progress and priorities and reallocated resources as
needed to address changing requirements.
> Carried out a rolling programme of
reviews to refresh information that
informs electrical and gas product
suppliers and consumers about energy
safety.
> Maintained and strengthened
our business processes to retain
ISO certification and to perform
investigations and audits that encourage
voluntary compliance.
> Continued to review our internal
processes and procedures to identify
and implement efficiencies where
possible.
> Evaluated staff engagement and
addressed issues identified in the
assessment of results.
ENERGY SAFETY Annual Report 2011–2012
12
Service Delivery Standards and
Business Activity Statistics
Data for this section was obtained from Energy Safety’s 2011-2012 internal reporting systems.
Audits undertaken
audit types
>
> Conducted 677 audits
of electrical and gas
appliances from 252
electrical and gas
suppliers.
>8
> Conducted 73 audits of
networks, distribution
systems, and
installations.
>
>
> Issued 140 warnings and
36 infringement notices
to suppliers of electrical
and gas appliances and
fittings for breaching
the electricity and gas
Regulations.
gas network &
distribution system audits
63
installation audits
(gas & electricity)
677
appliance audits
audit and inspection reports completed
within 30 working days
Audits and inspections
92% of audit and inspection
reports were completed
within 30 working days of
completion of the audit or
inspection (exceeding the
target of 90%).
2
electricity network &
distribution system audits
100%
100%
95%
88%
80%
78%
60%
40%
20%
0%
Electricity Network
& Distribution
System Audits
Gas Network
& Distribution
System Audits
Installation
Audits (Gas &
Electricity)
Appliance
Audits
ENERGY SAFETY Annual Report 2011–2012
13
Investigations
Accidents and incidents
investigated
Energy Safety completed 63
investigations of significant
electrical and gas accidents and
incidents, where there was serious
injury or property loss as defined
in section 16 of the Electricity Act
1992 and section 17 of the Gas Act
1992.
Accidents responded to
within 24 hours
accidents and incidents investigated
60
40
35
20
7
0
95% of accidents were responded
to and action commenced within
24 hours of notification to Energy
Safety (meeting the target of 95%).
Business objectives
21
Electricity
Gas
LPG
accidents responded to within
24 hours
100%
96%
> Retained ISO9001 certification
for the performance of
investigations and auditing.
94%
> Provided initial response to
client enquiries:
• 89% within 2 working days
(missing our 90% target)
• 96% within 5 working days
(exceeding our target of
95%).
80%
Electricity
Gas, including LPG
> Investigated and closed 94%
of enquiries within 5 working
days (exceeding our target of
90%).
> 100% of cases sampled met
quality assurance checks
(exceeding our target of 75%).
ENERGY SAFETY Annual Report 2011–2012
14
Summary of Reported Accidents
Energy Safety investigates non-workplace-related electricity and gas accidents that involve the
public. Workplace-related accident investigations are the responsibility of the MBIE – Labour as
the lead agency.
We publish a detailed annual Summary of Reported Electrical and Gas Accidents. Analysis
of these accidents is used to focus Energy Safety’s outreach and education programmes and
Standards development. The following is a high-level overview of the information provided in the
Executive Summary for the 2011–2012 financial year.
Electrical accidents
There were 15 notifiable electric shock accidents reported during the 2011-2012 financial year;
they caused a total of one fatality and injured 12 people.
Gas accidents
During the 2011–2012 financial year the following notifiable gas accidents were reported:
> 15 notifiable LPG accidents that caused one fatality and injured six people, including:
• Seven cabinet heater accidents that injured four people
> 4 notifiable natural gas accidents that caused no fatalities and no injuries.
• Three of these accidents involved water heaters.
ENERGY SAFETY Annual Report 2011–2012
15
Statement of Financial Performance
For the year ended 30 June 2012
Electricity – Safety, Quality and Metering
2012 Budget
2012 Actual
$000
$000
Revenue
Crown
0
0
Other* 2,828 2,563 Total Revenue
2,828 2011 Actual
$000
17
2,664
2,563 2,681
Expenses
Personnel 764 763 Operating 1,385 1,134 Depreciation
60 27 IT costs
189 208 Occupancy
120 122 Capital charge
20 23 Support costs
291 286 786
1,233
28
282
117
21
214
Total Expenses
2,829 2,563 2,681
(1)
0
0
Surplus/(Deficit)
*Sources of Other Revenue
Electrical Levies
Other revenue
2,540 23 2,646
18
2,563 2,664
2012 Budget
2012 Actual
$000
$000
Revenue
Crown
Other*
903
678
2011 Actual
$000
Natural Gas – Safety, Quality and Metering
Total Revenue
903
12
689
678
701
Expenses
Personnel 323 266 Operating 270 96 Depreciation
1
26 IT costs
104 114 Occupancy
56 57 Capital charge
9
10 Support costs
110 109 217
182
27
121
44
8
81
Total Expenses
873 678 680
30
0
0
*Sources of Other Revenue
Gas Levies
Other revenue
668 10 678 682
7
689
Surplus/(Deficit)
ENERGY SAFETY Annual Report 2011–2012
16
Business Outlook 2012-2015
The Ministry of Business, Innovation and Employment (MBIE) came into being on 1 July 2012
and integrates the functions of four former agencies – the Department of Building and Housing,
the Ministry of Economic Development, the Department of Labour and the Ministry of Science
and Innovation. Its purpose is to be a catalyst for a high-performing economy to ensure New
Zealand’s lasting prosperity and wellbeing. Although the structural changes inherent in the
merger of four large ministries are expected to take some time to implement, Energy Safety’s
regulatory role remains within MBIE.
As the structural design of MBIE progresses, we have aligned our business to the Ministry of
Economic Development’s Statement of Intent 2012–2015. We designed our work programme to
support the Government’s overall goal: to build the foundations for a stronger economy that will
provide New Zealanders with jobs, higher incomes, and improved living standards. Future Energy
Safety annual report and business outlook publications will reflect any changes brought about
by the creation of MBIE. In the meantime, the work that Energy Safety does will continue to
support MBIE’s agenda to drive business growth.
Our team
MINISTRY OF BUSINESS, INNOVATION
AND EMPLOYMENT
SAFETY AND REGULATORY PRACTICE
Product Safety & Regulatory Management
ENERGY SAFETY
Energy Safety
Policy Advice
Investigations
and Compliance
ENERGY SAFETY Business Outlook 2012–2015
17
How we contribute to MBIE outcomes and government goals
GOVERNMENT
MBIE – ECONOMIC
DEVELOPMENT
OUTCOMES
Key goals
Long-term outcomes
• Build a more
competitive
and
productive
economy.
• A world-class
business
environment
– an improved
underlying business
environment, both
nationally and
internationally.
• Responsibly
manage
government
finances.
• Deliver
better public
services.
• Rebuild
Christchurch.
• Productive and
competitive
businesses
– improved
innovation, skills
and capability
within firms and key
sectors.
• Efficient, reliable,
and responsive
infrastructure
services –
improved quality
and reliability
of underpinning
telecommunications
and energy
infrastructure.
• Effective use
of assets and
resources –
greater value from
national assets,
including natural
resources, for New
Zealanders in an
environmentally
and socially
responsible way.
ENERGY SAFETY
CONTRIBUTIONS
• A world-class
business
environment.
• Efficient, reliable,
and responsive
infrastructure
services.
• Delivering better
results.
ENERGY SAFETY
RESULTS
• Work with industry to
promote and ensure
high safety and quality
standards in electricity
and gas networks,
installations and
products.
• Prepare for and
implement changes
to Gas and Electrical
Certification and Fees
Regimes.
• Amend gas and
electricity Regulations
with technical and
other necessary
updates.
• Continue participating
in ERAC, GTRC, TPP
and other international
forums.
• Undertake
investigations of
significant gas and
electrical accidents and
incidents.
• Undertake audits of
electrical and gas
appliances.
• Undertake audits of
networks/distribution
systems and
installations.
• Energy safety education
and outreach.
• Compliance and
enforcement.
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A WORLD-CLASS BUSINESS ENVIRONMENT
An improved underlying business environment, both nationally and
internationally
Regulatory framework
We will work to improve the regulatory environment for business by delivering an innovative and
effective regulatory framework while keeping compliance costs to a minimum.
Safety framework
Standards New Zealand
> Rolling review of the gas and
electricity Regulations and planning for
amendments as needed.
> Continue the review and revision of
Standards to support the new electricity
and gas regulatory frameworks.
> Ensure legislation evolution follows
international regulatory good practice.
Memorandum of Understanding
> Continue to work towards formal MoUs
with other agencies, to enhance interregulatory cooperation on shared
responsibilities.
International coordination and representation
We will continue our participation in international forums to represent New Zealand’s energy
safety interests for the protection of existing infrastructure, to encourage opportunities for new
investment, and to be well-informed about the latest international developments.
We will continue to work closely with overseas regulators to achieve greater international
regulatory convergence and reduce trade barriers, and the associated costs of moving electrical
and gas products across borders. A key focus will be to increase interaction with European,
North American and Asian regulators to explore increasing the New Zealand recognition of
international gas appliance certification.
Australia
> Maintain active participation and
leadership in the ERAC and GTRC for
alignment and consistency on energy
safety issues.
> Ongoing participation in implementing
changes to the Australian gas and
electrical product regulatory regimes.
> Continue to develop and review key
joint safety standards for networks,
installations and appliances.
> Implement the use of a single regulatory
compliance mark (RCM) with Australia
for electrical and electronic appliances,
including amendments to compliance
labelling requirements.
ENERGY SAFETY Business Outlook 2012–2015
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> Participate in discussions for the
development of the future Australian,
and possibly joint, electrical appliance
safety regime.
Asia-Pacific
> Continue to develop and implement
arrangements to share electrical and gas
safety information aimed at improving
energy safety in New Zealand and the
Asia-Pacific region.
> Ongoing work with China, ASEAN,
APEC, and our other trading partners in
regards to electrical safety compliance to
facilitate the trans-border movement of
electrical products. We will also explore
opportunities to implement similar
arrangements for gas appliances.
> Review existing trade agreements
to reflect changes occurring in New
Zealand’s regulatory regimes.
> Continue our participation in the
government-to-government cooperation
agreement with Taiwan to increase
cooperative electrical regulatory
activities and to commence cooperative
gas regulatory activities.
> Support and engage in the Trans-Pacific
Partnership (TPP) as needed. The TPP is
envisioned by New Zealand to modernise
trade rules and other agendas in the
Asia-Pacific region, as it has become an
area of economic and trade growth.
Multilateral
> Continue to align electrical and gas
product compliance on an international
basis, and across other product
compliance frameworks, to reduce
regulatory costs for firms operating in
international markets and to reduce
product costs for consumers.
> Provide support as required to New
Zealand international negotiations in
relation to electrical and gas products in
a WTO context.
ENERGY SAFETY Business Outlook 2012–2015
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EFFICIENT, RELIABLE AND RESPONSIVE INFRASTRUCTURE SERVICES
Improving the quality and reliability of key infrastructure services that support
growth
Energy Safety policy advice
Energy Safety continues to work towards maintaining a regulatory environment that supports
safety while enabling businesses to succeed. We will continue to manage and enforce the safety
provisions of the Electricity Act 1992, the Gas Act 1992, and the associated Regulations.
Policy advice
Acts and Regulations
> Provide policy advice on the safe supply
and use of electricity and gas.
> Update gas and electricity Regulations to
ensure they reflect new Standards and
identified changes to regulatory regimes,
and address emerging issues.
> Provide policy advice on the structure
and implementation of updated
Regulations.
> Continue the ongoing review of the
effectiveness of gas and regulatory
frameworks to ensure fitness and costeffectiveness.
> Complete a post-implementation
stocktake of key initiatives introduced by
the 2012 Amendment Regulations.
> Continue discussions around possible
review of the Electricity (Hazards from
Trees) Regulations.
Certification and Fees regime
> Facilitate the implementation of the
Gas and Electrical Certification and Fees
review and carry out any adjustments,
as required.
> Report to Economic Growth and
Infrastructure (EGI) Cabinet Committee
on the effectiveness of the changes
introduced by the Gas and Electrical
Certification and Fees Review.
Operational Policy
> Continue to work towards implementing
a single compliance mark for electrical
and electronic products.
> Monitor the public safety outcomes from
the introduction of SMS for electricity
and gas networks.
> Develop the approved practitioner
framework for assessment of gas
appliances.
> Develop criteria for installation auditing
to support the modified certification
regimes for electrical and gas work.
ENERGY SAFETY Business Outlook 2012–2015
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Compliance and enforcement
We will continue to develop and implement a compliance and enforcement strategy based on
known risk areas and current statistical data to support the Regulations. We will conduct audits
of electricity and gas suppliers, networks, distribution systems, installations, and appliances,
and actively target noncompliance to achieve public safety outcomes.
Compliance audits
Cooperation and education
> Continue to implement a targeted, riskbased audit and compliance programme
to ensure products comply with safety
standards and required supplier
declarations.
> Coordinate product compliance auditing
with other product regulatory agencies
to protect the integrity of electrical and
gas appliances offered for sale in New
Zealand.
> Audit electrical and gas networks,
distribution systems, installations, and
appliances.
> Continue to work with online venues,
their sellers and members to encourage
good business practice through
compliance and risk management.
> Continue to support and encourage the
use of robust self-audit protocols:
• for SMSs by electricity and gas
supply system operators and works
operators; and
• for suppliers of electrical and gas
products to meet essential safety
requirements.
> Strengthen the quality of service
delivery procedures and expectations
for third-party electricity and gas safety
practitioners engaged to carry out
external audits and investigations.
> Continue to work with manufacturers
and importers through the audit process,
to implement proactive education
strategies and audit programmes that
enhance our effectiveness as a safety
regulator.
Other projects
> Review compliance guides to align with
any updates to Regulations.
> Ensure an integrated product compliance
regime is in place under new MBIE
structure.
ENERGY SAFETY Business Outlook 2012–2015
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Audit forecasts
Audit objectives
> Audit 150 electrical and gas
appliance suppliers and audit 400
of their products.
> Retain ISO9001 certification for the
performance of auditing.
> Conduct 30 audits of electricity
and gas networks, distribution
systems, and installations.
> Conduct, complete, and close 90%
of audits within 30 working days of
the start of the audit.
Client communication
> Provide initial response to client
enquiries within the following
timeframes:
• 90% within two working days
• 95% within five working days.
> Investigate and close 90% of
enquiries within five working days.
ENERGY SAFETY Business Outlook 2012–2015
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Notifiable accident investigations
We will provide fast and effective accident investigation services, seeking to identify the causal
factors of events and utilise this information with a view to preventing similar events occurring in
the future. We will take compliance action as appropriate.
> Conduct investigations of significant
electricity and gas accidents where
there is serious injury or property loss
as defined in section 16 of the Electricity
Act 1992 and section 17 of the Gas Act
1992.
> Continue publishing quarterly reports
and the annual Summary of Reported
Electrical and Gas Accidents.
> Analyse these accidents to focus
Energy Safety’s outreach and
education programmes and Standards
development.
Accident investigation forecasts
Accident investigation objectives
> Investigate an estimated 65
notifiable accidents, where there
is serious injury or significant
property damage including:
> Retain ISO9001 certification for the
performance of investigations.
• significant electricity accidents
including fire
• significant LPG accidents
• significant natural gas
accidents.
> At least 95% of notifiable accident
investigations will be responded
to, and action commenced, within
24 hours of notification of the
accident.
> Notifiable accident investigations
will be conducted, completed
and closed within the following
timeframes:
• 50% within 30 working days
• 80% within 60 working days.
ENERGY SAFETY Business Outlook 2012–2015
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Industry engagement
We will continue to work in partnership with industry to maintain a unified energy safety
programme that underpins Energy Safety’s work and enhances the electricity and gas sectors’
potential for economic growth.
Outreach and education
> Release safety advisories and safety
alerts as needed in response to current
safety issues.
> Work with the energy industry and other
safety regulators in an energy focus
group to develop a common energy
safety strategy to complement Energy
Safety’s work programme.
> Continue our outreach and education
programmes with product suppliers
and direct interaction with consumers
at trade shows, external venues, and
conferences.
> Enhance safety awareness by working
with manufacturers and importers
through the audit process; and by
implementing proactive education
strategies and audit programmes that
enhance Energy Safety’s effectiveness as
a safety regulator.
Safe supply and use of electricity and
gas
> Continue to participate in various forums
to strengthen public safety outcomes for
New Zealand.
> Work with the electricity and gas
industries and key stakeholders to
identify issues and trends, and to work
proactively to address accidents or
issues.
> Continue to develop risk-based audit
profiles and plans to promote consumer
safety in areas such as schools and
holiday parks, and around appliances
such as patios, cabinet heaters and
emerging technologies.
> Maintain relationships with other
regulators and organisations with an
interest in energy safety to ensure
mutual safety outcomes are achieved.
Stakeholder awareness
> Continue to work with associations
and stakeholders to share information,
discuss issues, and improve safety
assurance. Work to shape the industries’
goals and key areas of work in the
coming years.
> Continue to work with the Gas
Community Group to improve safety
assurance through discussion and
awareness, and to develop key areas of
work.
> Develop and release stakeholder
guidance explaining forthcoming
changes to the electricity and gas
Regulations.
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DELIVERING BETTER RESULTS
How we will deliver priority activities more efficiently and effectively
Business and online services
We will work to make it simpler, quicker, and more effective for business to deal with us. We will
streamline our business through a series of new initiatives to improve industry and consumer
interactions with Energy Safety.
Gas and Electrical High-risk Database
Energy Safety website
> Launch a new online database of gas
and electrical installation work classified
as “high risk” by July 2013.
> Maintain the enhanced gas appliance
declarations website in accordance with
new Regulations.
Energy Safety Intelligence (ESI)
> Continue ongoing enhancements to
strengthen our data systems and
improve the ease of access to accurate
energy safety information.
> Ensure the data quality of ESI is
maintained to enable effective analysis
and access to accurate energy safety
information for sharing with industry and
other agencies.
> Continue to update content to reflect
regulatory changes, provide advice on
safety issues, and provide information to
consumers and industry.
> Follow a clear and prioritised rolling
programme of reviews aimed at
refreshing information that informs
electrical and gas product suppliers and
consumers about energy safety.
Other projects
> Continue to carry out benchmarking
and sharing of best practice with our
Australian counterparts.
> Carry out Energy Safety’s client survey,
assess feedback, and act on any feasible
improvements.
ENERGY SAFETY Business Outlook 2012–2015
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Business development and capability
We regularly review our progress and priorities and flexibly allocate resources to address
changing requirements.
> Develop and implement an integration
plan for Energy Safety’s transition into
new MBIE Branch and Group structure.
> Maintain and strengthen our business
processes to retain ISO certification and
to perform investigations and audits that
encourage voluntary compliance.
> Work with other administrations to
compare best practice procedures to
improve energy safety outcomes.
> Complete the review of the skills and
capability needs of Energy Safety and
adjust business systems and frameworks
to reflect them.
> Continue to support the capability of
staff and external parties to carry out the
work needed for effective management
of our outputs.
> Evaluate staff engagement and address
any issues identified in the assessment
of results.
ENERGY SAFETY Business Outlook 2012–2015
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Energy Safety – Underlying Goals
The following underlying goals will continue to drive our plans in
the next few years:
> Work with the energy industry to maintain a unified energy safety
programme that underpins our work and enhances the electricity and
gas sectors’ potential for growth.
> Access and inform international regulatory and technical fora to
improve energy safety outcomes, achieve greater international
regulatory convergence and reduce trade barriers.
> Ensure Energy Safety’s compliance and enforcement strategy actively
targets known risk areas that impact on consumers.
> Use technology to make Energy Safety information and advice more
accessible to the energy industry and the public.
> Make our operations and results transparent to the energy industry
and the public.
> Deliver value for money while ensuring the integrity of the regulatory
regime.
ENERGY SAFETY Business Outlook 2012–2015
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Acronyms and Abbreviations
Energy Safety frequently interacts with the organisations listed below; they are
commonly referred to by their acronyms or abbreviations. The list also defines
other acronyms and abbreviation frequently used in connection with energy
safety or otherwise mentioned in this publication.
APEC Asia-Pacific Economic Cooperation
ASEAN Association of Southeast Asian Nations
BSMI Bureau of Standards Metrology and Inspection (Taiwan)
CCC China Compulsory Certification
DBH
Department of Building and Housing
DoL Department of Labour
EASR Electrical Appliance Safety Review
EEA Electrical Engineers’ Association
EEE Electrical and Electronic Equipment
EECA Energy Efficiency and Conservation Authority
EESS
Electrical Equipment Safety System
EGCC Electrical and Gas Complaints Commission
EMC Electromagnetic Compatibility
ENA
Electrical Networks Association
ERAC Electrical Regulatory Authorities Council (trans-Tasman)
ES Energy Safety
ESI Energy Safety Intelligence (IT system)
EWLG Electrical Workers Licensing Group
EWRB Electrical Workers Registration Board
FTA Free Trade Agreement
GANZ Gas Association of New Zealand
GTRC Gas Technical Regulators Committee (trans-Tasman)
IANZ International Accreditation New Zealand
ISO International Standards Organisation
ENERGY SAFETY Business Outlook 2012–2015
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JAC Joint Advisory Committee
JAS-ANZ Joint Accreditation System of Australia and New Zealand
LPG
Liquefied petroleum gas
LPGANZ
LPG Association of New Zealand
MED Ministry of Economic Development
MBIE
Ministry of Business, Innovation and Employment
MFAT
Ministry of Foreign Affairs and Trade
MoU Memorandum of Understanding
MRA Mutual Recognition Arrangement
NAMA
Non-Agricultural Market Access
PGDB Plumbers, Gasfitters & Drainlayers Board
RCM Regulatory Compliance Mark
Regulations – Electricity (Safety) Regulations 2010
– Gas (Safety and Measurement) Regulations 2010
RSM Radio Spectrum Management
SDoC Supplier Declaration of Compliance
SMS Safety Management Systems
TPP
Trans-Pacific Partnership, also known as the Trans-Pacific Strategic
Economic Partnership Agreement
TTMRA Trans-Tasman Mutual Recognition Arrangement
WTO World Trade Organisation
ENERGY SAFETY Business Outlook 2012–2015
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Contacts
website www.energysafety.govt.nz
email [email protected]
phone 0508 377 463
+64 3 962 6248 (outside New Zealand)
fax 0508 Safe Energy (0508 72 33 36)
+64 4 460 1365 (outside New Zealand)
post
PO Box 1473
Wellington 6140
New Zealand
Sanjai Raj
Group Manager, Radio Spectrum Management/Energy Safety
Phone +64 4 474 2699
Email [email protected]
Mark Wogan
Operations Manager
Phone +64 4 470 2532
Email [email protected]
ISSN: 1178-3737 ONLINE
Published October 2012
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