I rise to speak on the Energy Legislation Amendment (Energy Safety) Bill 2023, and the purpose of this bill is to ensure a safe transition to renewable energy for workers and our communities. I would like to thank the Minister for Energy and Resources and her team for all the work that they have done in bringing this bill to the house. The Andrews Labor government is working diligently in transitioning Victoria to renewable energy and making us the renewables capital of our nation. Since coming to government in 2014, we have more than tripled the amount of renewable power generation compared to what we inherited from those opposite – a mere 10 per cent in 2014 to over 35 per cent in 2022. This is well beyond our 2020 renewable energy target of 20 per cent, which we easily surpassed, and as a result we have increased our 2030 renewable energy target from 50 per cent to 65 per cent. This transition is good for everyone. It is creating more jobs and cheaper energy for Victorians as well as preserving a healthier environment for future generations.
This bill is about keeping our workers and our communities safe and secure while doing the work on transition. This bill seeks to ensure that our energy safety regulations are keeping up with the constantly developing and vastly expanding renewable energy industry. We are looking to apply the same energy safety obligations to traditional and renewable energy companies operating in Victoria. We will also strengthen the enforcement and investigative powers of Energy Safe Victoria, the independent energy safety regulator.
Unfortunately there have been many recent incidents that demonstrate the urgent need for these amendments. In 2018 the Terang and Garvoc fires were caused by a clash of high-voltage powerlines, and Powercor were found to be responsible. These fires resulted in 6000 hectares of land being destroyed, including homes and farms. Powercor was only fined $130,000, which is gravely insufficient. It is why this bill is so important. The amendments will see the appropriate penalties imposed on companies that neglect to fulfil their safety requirements. No community should have their lives and assets risked because corners were cut on safety.
More recently the fires at the Victorian Big Battery and the Cohuna solar farm in 2021 demonstrated the need for these amendments, which will allow Energy Safe Victoria (ESV) to regulate facilities such as battery installations and solar farms. Energy Safe Victoria will have greater oversight and control to monitor the changes to facility safety management plans and will have the power to review these plans every five years. The current regulations are based on a structure of the energy sector from back in the 1990s, a sector composed of mainly large corporations and ones that did not consider the introduction of renewable energy to our state. With the steadfast implementation of renewable energy we have seen the establishment of smaller renewable energy companies. As a result it is imperative that our regulations keep up with the changes in our energy industry so we can ensure that such renewable energy technologies are implemented and operated safely.
I am proud to say that this bill is not the first thing that we have done to address the problem. We have done a fair bit of work to get to this stage. In 2017 the minister for energy initiated the independent review of Victoria’s electricity and gas network safety framework. Essentially this review was tasked with designing the safety regulations, obligations and incentives around the energy industry to remain up to date with our renewables. In 2018 the Andrews Labor government supported 42 of the 43 recommendations made by that review. To date over half of these recommendations have been completed, and more of these recommendations are on track to completion. Additionally, this bill is addressing three of those recommendations. We have improved the ESV inspection and audit program, and we have transformed the ESV from a single-member agency to a three-person commission. We have created a stronger regulatory framework, and we have also strengthened the ESV’s workforce so that we can ensure that more Victorians, including energy workers, are kept safe.
The safety of workers and our communities is of the utmost importance. That is why this bill will allow the Governor in Council to declare certain electricity installations, under advice from the Minister for Energy and Resources, to be a certain class so specific safety duties and obligations will apply. Such obligations will mean that extra safety measures are put in place, and levies will be paid to the ESV so sufficient oversight can be provided. These obligations will be in line with those already in place for major transmission and distribution companies. Furthermore, this bill will see adequate penalties applied to energy companies that cut corners on safety, increasing fines by up to a maximum of six times the existing amount. These penalties have not changed since 2007, and it is time that they are updated. Currently the penalties applied do not match the impacts done to the lives, properties and environment of our affected communities. We have already seen the damage done by the fires in 2018 and 2021, and we do not need to see a repeat of that. Higher penalties will incentivise energy companies to fulfil their safety obligations in order to decrease the likelihood of the aforementioned fires.
Currently such safety management plans can be amended without the ESV oversight. As a result ESV struggles to ensure that all safety management plans are sufficient and are being followed. This is concerning, and it is pleasing to see the changes this bill brings. Additionally, this bill will require electricity suppliers and gas companies to preserve incident sites such as of electricity emergencies so Energy Safe Victoria can investigate properly and therefore apply the correct penalties if required and ensure that these sites are fixed. At present companies can remove evidence from a site, making it difficult for ESV to determine what caused an accident. This is simply wrong. This bill seeks to put an end to this.
This bill will also strengthen Energy Safe Victoria, our energy safety regulator. Every day ESV ensures that the gas, electricity and pipeline companies are following safety regulations to keep their workers and communities safe. Furthermore, ESV provides licences to electrical workers, which is something I am sure that our friends from the Electrical Trades Union approve. The ESV is also providing compulsory training for electrical workers around the new safety regulations and technologies before their licences are reissued. This helps to reduce the risks in this industry. The effectiveness of such programs has already been elucidated. The ESV has reported less safety incidents this year, which is great to see.
This bill is so important for the safety of energy workers and our communities. It is great to see the Andrews Labor government working hard to transition to clean, renewable energy, ensuring our planet is safeguarded for future generations. Simultaneously we are working to make sure that the renewable energy is being regulated and operated safely. The Andrews Labor government will always stand up for the safety of our workers and take real action on climate change, and it is great to see this bill does both. I commend the bill to the house.
