Energy Legislation Amendment (Energy Safety) Act 2023

Energy Safe Victoria’s regulatory powers to improve energy safety for Victorians have been strengthened with changes to the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 that came into effect on 16 May 2024.

The changes include new obligations on electricity suppliers and gas companies, increased penalties, and enhancements to Energy Safe’s powers through the Energy Legislation Amendment (Energy Safety) Act 2023.

Overview of the changes

Some of the changes include:

• Increased penalties including:
  • Potential fines for general duty offences of major electricity companies (MECs) and gas companies are increasing six-fold (going up from just under $290,000 to just over $1.7 million); and
  • Potential fines for non-compliance with accepted electricity safety management schemes, bushfire mitigation plans, and gas safety cases are also increasing (going up from just under $290,000 to more than $1.11 million).
• Energy Safe can now accept enforceable undertakings as a resolution to a contravention or alleged contravention of the energy safety laws.
• Major electricity companies and gas companies are now required to preserve the sites of certain incidents until directed otherwise by Energy Safe.
• Energy Safe can now retain seized items for 60 days or longer if the period is extended by the Court.
• The Governor-in-Council can declare an owner or operator of an electrical installation, such as a renewable energy generator, to have certain duties and obligations commensurate with a major electricity company.
• The period within which Energy Safe can commence prosecution has increased, from three years from when the alleged offence occurred to three years from when Energy Safe becomes aware of the alleged offence.

The changes follow on from the independent review of Victoria’s electricity and gas network safety framework (Grimes Review conducted in 2018), which focused on strengthening the capabilities and regulatory approach of Energy Safe. The Energy Legislation Amendment (Energy Safety) Act 2023 implements four recommendations of the Grimes Review.

Legislation changes

Complete details of the legislation changes: https://www.esv.vic.gov.au/about-us/regulatory-framework/legislation-and-regulations