NECA raises concerns around changes to energy legislation

On Friday 16 May 2025, the Victorian Government provided the Energy regulator, Energy Safe Victoria (ESV) with greater powers and fines to protect the Victorian community.

Minister for Energy and Resources Lily D’Ambrosio announced the Energy and Land Legislation Amendment (Energy Safety) Bill 2025 has passed the Victorian Parliament. 

“The Energy and Land Legislation Amendment (Energy Safety) Bill 2025 will make sure the independent regulator Energy Safe Victoria (ESV) has the powers to keep Victorians safe as our energy system changes.

The Bill will amend the Electricity Safety Act, Gas Safety Act and Pipelines Act to introduce a new entry power for Energy Safe officers will be able to enter premises, with a Magistrate-issued warrant. This will mean officers can better investigate reports that pose a risk to public safety.

The Bill will also expand ESV and the courts enforcement powers, including powers to stop unsafe work and to suspend an electrical contractor registration or electrical worker licence where it is in the public interest to do so.

The Bill will also increase maximum penalties for offences like knowingly installing unsafe electrical equipment that could cause injury, death or significant property damage and knowingly making unsafe modifications to a gas appliance which could expose people to the risk of illness or death by carbon monoxide poisoning to $48,000 for an individual and $240,000 for a company.”

While the National Electrical and Communications Association was consulted on these change, we raised several concerns and sort further information on the justification for the changes.

Energy Safe Victoria and the Department, did not justify several of these changes sort by NECA.

Of most concern to NECA is that, while they have increased the enforcement and fines on regulated people, electrical contractors and inspectors, no increase in fines has been applied to unlicensed people or people who are offering electrical work without registration. NECA sees this as a great risk to the Victorian community and a betrayal of the electrical industry that is endeavoring to assist the Victorian Government with the electrification of the state.

With the great efforts to increase compliance in the renewable energy sector through the Solar Homes program, this is now seen as a step backwards in industry engagement.

On one hand, we see one government department assisting the electrical industry with training and assistance, while the other is taking a stronghanded approach to pressure the industry.

NECA has questioned the rational on the size of the increase in the penalties, for example, an electrician who fails to submit paperwork (certificate of electrical safety) now has the potential to receive a fine of 60 penalty units, this has increased from 10 penalty units (one penalty unit is worth $197.59 according to the Department of Treasury and Finance, Victoria), that is $11,855.40, or an infringement notice of $1,185.54), for failing to provide the certificate of electrical safety, we see this as excessive.

Energy Safe now appears to be concentrating its enforcement outcomes on the issuing of infringement notices to the regulated entities, including electricians, contractors and electrical inspectors, this is evident from information within its annual reports. While NECA has been working with the industry to improve compliance, this has included industry events, in-house training and mentoring programs, some efforts are being curtailed due to a lack of support.

It has been identified that the greatest deterrent available to Energy Safe Victoria to stop unlicensed electrical work is being ignored. Prosecutions in the Magistrates courts have declined from 2020, since this time less than 10 case have been successfully prosecuted for unlicensed electrical work, and several high profile case, including people setting up unsafe solar and battery installations to conduct data mining have not been prosecuted. So, the question NECA poses is if Energy Safe have these powers currently, why have they not used them for clear breaches of the legislation?

These increased enforcement powers are on top of the changes to the Apprentice supervision requirements that come into effect on 1 September 2025. These changes have some significant implications for the employment of apprentices if more than one apprentice is employed at a business.

NECA fully supports a robust regulated electrical industry to provide good, compliant outcomes for the Victorian community, but we see some of these changes as excessive and unwarranted as Energy Safe Victoria have not been using their existing powers sufficiently to date.

NECA will request further discussions with Energy Safe Victoria and the State Government to gain further clarity on their decision on these changes and to review the anticipated policies and procedures for enforcement.