Wednesday, 2 August 2023

Energy Legislation Amendment (Energy Safety) Bill 2023

Second reading

Debate resumed on motion of Lily D’Ambrosio:

That this bill be now read a second time.

Danny O’BRIEN (Gippsland South) (18:06): I have the call from last night, and I was in the midst of talking about the government’s SEC policy, which has attracted a lot of support from those on that side who do not really seem to understand it. I took great pleasure in asking some questions about this in the Public Accounts and Estimates Committee hearings only a couple of weeks ago and trying to marry up what is actually happening with the SEC with what the government promised. One of the things that came to my attention was I asked interim CEO of the SEC Mr Miller about the investments that the SEC would be making and would it be solely Australian co-investments. He said the details had not yet been worked out, and I said, ‘Is the government precluding foreign investors from bidding for work with the SEC?’, and the answer was no, there is no preclusion.

I was reminded that the Premier said repeatedly through the election campaign that the Labor government was about offshore wind, not offshore profits. Now, post election, we get a different story, which is pretty similar to what we have been hearing about a lot of things. The Commonwealth Games is one that comes to mind. Logging is another one that comes to mind. Rail projects are another one that comes to mind. There are a lot of things. We were told ‘offshore wind, not offshore profits’ yet now we hear from the SEC there is no prohibition on them taking investment from foreign corporations. In fact it may well be that the new state government entity will be investing in renewable energy projects with foreign companies, which would be a complete breach of the Premier’s repeated promise in the election campaign.

Probably more fundamentally, while that was the spin of the government during the election campaign, my concern with the SEC and what this government is doing is it is putting in public capital at a time when private capital is very anxious to invest in renewable energy. We heard the member for Bentleigh say that the SEC will allow us to deliver renewable energy. Well, the renewable energy is being delivered anyway. This is my concern that I have always had with this SEC policy: there is absolutely no reason for taxpayer capital to be put at risk in these projects. I asked the question, ‘What will the government invest in?’ Mr Miller indicated – in fact I could probably read the actual sections – that basically they are looking for a project that is already very well advanced using a mature technology and something that they can get happening very quickly. Indeed the Minister for Energy and Resources herself said it. When I asked about it she said:

This is absolutely no doubt about bringing forward projects that may otherwise be later in their delivery or indeed not happen at all.

Which begs the question: why is taxpayers money being spent on projects just to (a) speed them up when they were going to happen anyway or (b) if they were not going to happen at all? Presumably that would be because they were not commercial projects. How is the government going to give some satisfaction to the taxpayer that their resources are not going to be risked or frittered away or wasted on projects that were going to happen anyway or that were not commercial and did not stack up? Of course I asked a bit further about that. I asked Mr Miller if the SEC or the Treasury had set a rate of return that they were expecting from investments, and the answer was ‘not yet’ even though the government is expecting to invest probably by the end of the year in a project. That was the estimate, and indeed the budget process actually has $600 million in the budget for 2023–24 for investing in projects. I think I would have to say it is a heroic assumption that any of that money will be out the door before the end of 2023–24 given where we are at with this. But again, if it is, it just highlights that that is a project that was going to go ahead anyway and does not need taxpayers funds.

The other issue I want to touch on with respect to the government’s spin on the SEC is that this was sold as somehow going back to the old SEC: going back to a state government owned corporation that runs the entire electricity system – the generation, the poles and wires, the retail arm and everything. Well, we had the minister rule out the poles and wires. She said straight out, no, we are not going into transmission or distribution. They have not ruled out going into retail, which horrifies me enough as it is. But more particularly, in terms of generation, the notion that the government investment in the SEC will bring down prices is such an economic and political fallacy, because it will be a tiny player in the future energy market. Do not take my word for it – I asked the minister herself. I said, ‘What proportion do you think we’ll be by 2035?’ So by 2035 the government’s policy is 95 per cent renewables, and of those renewables the minister says the new build will need to be 25 gigawatts of new generation by 2035. And I said, ‘What will the SEC be of that?’ Well, the SEC will be 4.5 gigawatts. So less than 20 per cent of new generation will be not only the SEC, because this will be co-investment with others, so the taxpayer component will be even less than 20 per cent. And yet somehow we are supposed to believe that these investments – which are going to be in projects that are going ahead anyway or are not commercial enough for the private sector to push them, and then they are going to be less than 20 per cent of the total market – are going to bring down the price of electricity for Victorians. I just find this to be a massive, massive con.

Steve Dimopoulos: Sometimes the private sector needs its hand held.

Danny O’BRIEN: Well, the private sector is doing it all very well on its own, Minister. You know, I have been talking about the offshore wind in my electorate, where they are lining up to invest in the offshore wind industry, which the government itself, as I said last night, is trying to claim as its own project when in fact it is not. It is investing in Hastings instead of Barry Beach – closer to the offshore wind – which is only going to increase the cost for the offshore wind in my opinion. But this is all part of the spin that this government is putting together with respect to the SEC and energy prices, and it will fall flat on its face.

John MULLAHY (Glen Waverley) (18:13): 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.

Wayne FARNHAM (Narracan) (18:20): It is nice to know everyone is so excited when I get up to speak. I am happy to speak on this bill, the Energy Legislation Amendment (Energy Safety) Bill 2023. Those opposite might be happy to hear that this side of the house is supporting this piece of legislation. This bill is a fairly broad range of reforms, largely making our energy system more focused on delivering outcomes for consumers. While I do not want to go into all of them, I want to touch on a few key ones.

Over the last decade we have seen some real change in the available technology when it comes to energy generation. Obviously with the government’s push on renewables and the amount of solar panels now being installed and wind farms and everything else, this side of the house has no problem with this bill when we talk about the safety of workers, consumers and the general public. It would be horrifying to think of a blade off a wind farm turbine falling and hurting someone, so I think any legislation that comes into this house to protect the safety of everyone is good legislation, and the government has done that in this bill.

Where I do get a little bit concerned – and it is a concern with the new SEC, the way the government is transitioning and what is going on with the SEC – is in my electorate, for example. I know it is in VCAT at the moment. It has gone through a planning process, but it is at VCAT at the moment. It is a 250-acre solar farm in the middle of agricultural land. When we talk about this bill, this is my concern. The problem we are going to have is that because the new energy is going to be so spread out across the state we are going to have solar farms dotted all over the place. We are going to have wind farms dotted all over the place. How are we really going to make sure this is safe? Because if something goes wrong in regional Victoria, it is not a little mistake. It often ends up being catastrophic. If we have high north winds, for example, and dry grass this high next to bushland, we are going to have another 2020. We could have another 1939 if we are not careful.

I feel as though in the government’s rush to transition we are playing a little bit of catch-up with this bill. I think what the government has to do is really look at the way they are going to deliver the energy and the safety at the same time, because if they do not get it right, they will put Victorians at risk – at great risk. This bill also talks about gas safety, and I am glad today we have been talking about housing affordability, social housing and gas in this legislation. I feel as though the government, in stopping gas on 1 January 2024, are rushing this through. I think they have rushed this through mainly to deflect from the Commonwealth Games. I mean, the Commonwealth Games has been a disaster, so the government has gone, ‘Look, we’re going to rush this through to just deflect away from the Commonwealth Games.’ But the problem with gas and getting rid of gas is it is no different to building. You are starting with renewables now. Great. You are doing wind farms. You are doing solar farms. What you must do is get those foundations right first before you take another energy source out of the market, because at the moment you have not got it right. We are not totally renewable, so if you are not totally renewable, why would you take another energy source out of the market? You are not quite there yet, and I think it is premature that the government says we are going to knock off gas in 2024, especially when we have got other states, being South Australia and New South Wales, saying they are pro gas. This side of the chamber is pro gas because we acknowledge that we need gas as part of our energy source in this state.

I know those on this side and the government will differ on that, but we strongly believe that gas is essential to our energy market. The problem is when you take gas away, the one thing nobody has talked about is the cost. The cost to convert a house from gas to electric is not cheap. It is not cheap if you start replacing electric central heating units – away from split systems. If you start replacing hotplates with electric hotplates, you have got to buy new pots and pans because they are not compatible. When you are talking about water, a Rinnai Infinity is a lot cheaper than a solar-driven hot-water unit. You are talking quite a lot of money, and the average Victorian just cannot afford that. I have done the math on a conversion on an old house, a 1970s house with a straight gable roof, and the cheapest way you could do it will cost $30,000.

The other point about this renewable push is you have to make sure you have the supply in the street. So if you have only got a two-phase supply, not a three-phase supply, and all of a sudden houses start converting, is there going to be enough supply in the street? This is the problem with the new SEC. There are too many unknown variables at this point in time. I mean, when we talk about total renewable, have we factored in no gas? What is the government’s plan on gas? Are we going to stop it altogether? Is there going to be no gas in 10 years time? Because if there is going to be no gas in 10 years time, I am extremely doubtful that the new SEC will be able to cope with the demand and the supply that Victorians will need. I am extremely doubtful, and the reason I am doubtful is because the government has not been very clear on it. When they factored in renewable, did they go, ‘Okay, we’re going to factor in renewable. We need X amount of gigawatts to do this, but if we get rid of gas, what pressure is that going to put on the system? How much extra will we need?’ I do not think that has been factored in. I do not think the government has taken that into account, and I do not think the government has really done proper case studies on whether it will work or not.

I make this suggestion to the government. Rather than paying millions of dollars to consultants, as we know the government does, I make this suggestion. It is a commonsense suggestion. I know in this place sometimes common sense runs thin, but I am very much a pragmatic, commonsense type of person. Buy a house, an old house somewhere, and convert it properly – electric central heating, electric hot-water units, solar panels and batteries. Run that house like you would a normal house. Turn the heater on for 3 hours in the morning in winter, turn the heater on for 3 hours at night and see if it actually works. Before we go too far down a rabbit hole that we cannot get out of, do a study. But do a practical study. You can do them all over the state in different environments. Do one up north and one down south – east and west, it does not matter – but do the study and then go, ‘Okay, based on that, we need this amount of supply’, because if you do not do that study and you get this supply wrong, do not worry about the safety bill, because we are not going to have power anyway. I urge the government to actually do some proper modelling, not rehash an old badge from 1992 when Joan Kirner sold it off – I am waiting – but do a proper model and see if it works. I agree with this bill, but I had to take the opportunity to put those points in, and I encourage the government to listen, do the modelling and get it right. I commend this bill to the house.

Gary MAAS (Narre Warren South) (18:29): Thank you for the excitement in the chamber at this time on a Wednesday evening, but it truly does give me much pleasure to make a contribution to the Energy Legislation Amendment (Energy Safety) Bill 2023. At the core of this bill is worker safety and community safety. If you have a look at the context of where this bill comes in, it is certainly worth looking at. I am a part of a government that is helping Victoria drive to being one of the fastest energy transition states in the world. We have tripled the share of renewables in power generation, and that has been done in just eight years time. We have helped nearly a quarter of a million Victorian households – a quarter of a million Victorian households – install solar panels on their roofs, reducing bills and giving them control over their energy. We have held the Victorian renewable energy target auction, the country’s largest reverse auction for renewables. We have also installed the Victorian Big Battery, the largest in the Southern Hemisphere, and made Victoria the home of big batteries. Through these actions we have reduced greenhouse gas emissions by more than any other state in the country since 2014. Indeed we have only just begun.

Having comfortably surpassed the 2020 renewable energy target of 20 per cent, we have increased our 2030 renewable energy target from 50 per cent to 65 per cent. We have set a 2035 target of 95 per cent, and that target will be backed by separate targets for offshore wind and energy storage. We will have at least 2 gigawatts of offshore wind by 2032 and 4 gigawatts by 2035. We will have 9 gigawatts by 2040. To support this increase in renewable capacity we have at least 2.6 gigawatts of storage capacity by 2030 and at least 6.3 gigawatts by 2035. With all of that we have also been able to bring our net zero emissions target from 2050 to 2045, which will require the transformation of our entire energy system, including transport and industry, but our energy safety legislation has not kept pace.

This is nothing short of the most fundamental technological transformation that we are seeing in our lifetime, and it truly is exciting. It means more jobs, cheaper energy and cleaner air. But to ensure that the safety of workers and the community is maintained, our energy safety rules must keep pace with technology. The legislation does that by making commonsense amendments to Victoria’s energy safety legislation. The amendments themselves will align the energy safety obligations of renewable energy companies with those of the traditional companies and strengthen the investigative and enforcement powers of the independent safety regulator, Energy Safe Victoria. Recent incidents highlight the urgency of these amendments, as has been well documented in this place over the last few days. Two serious fires in 2021 at the Victorian Big Battery and the Cohuna solar farm highlighted the limitations. Energy Safe Victoria must regulate facilities such as solar farms and battery installations. Energy Safe Victoria was unable to intervene or regulate those sites until the fires had occurred, hence the need for this bill.

It will modernise Victoria’s energy safety legislative framework to improve community and worker safety. In doing so it will create and target the regulation of new and emerging safety risks that are posed by emerging technologies as the state undertakes a rapid energy transition to renewable energy, recognising the very fast changing pace of the environment that we are operating in. The reforms will strengthen the safety compliance framework by increasing obligations for electricity and gas companies, including owners and operators. The legislation gives Energy Safe Victoria legislative power to compel owners and operators of critical and complex installations, such as batteries, to reduce safety risks prior to energisation.

The bill also ensures that newer technologies like batteries, wind farms and solar farms are held to the same standards as existing generation and network technologies. It will also provide Energy Safe Victoria with an enhanced enforcement toolkit to effectively regulate the transforming energy sector. At the 2022 election we committed to a comprehensive review of energy safety legislation for the long term. These proposed reforms are a really good first step representing a range of quick wins. The bill will help ensure the safety of workers and our communities as we continue on this journey of transition to a renewable energy future.

Our government is unapologetic about our energy safety regime. We have a robust energy safety framework, and we are proactively updating that to ensure that we continue to keep workers and the community safe. There are inherent risks that come with all electrical infrastructure, but these are risks that can be mitigated through the appropriate energy safety rules. We always endeavour to implement recommendations made by our state energy safety regulator, as safety is a non-negotiable to this government. As a government we have always prioritised safety. We introduced legislative reforms through the Energy Safety Legislation Amendment (Victorian Energy Safety Commission and Other Matters) Act 2020, which transformed Energy Safe Victoria from a single-member agency to a three-person commission which commenced in January 2021. That is supported by a CEO and a technical advisory committee as well. At the 2022 election, we committed to a comprehensive review of energy safety legislation for the long term, but these proposed reforms are a really good first step, representing a range of quick wins, as I mentioned. We will continue the transition to renewable energy, and we will maintain our proactive approach to safety. That is why we need this bill.

When it comes to energy bills in this place, we know that the opposition have at every stage opposed any bills relating to energy targets or climate action, and in terms of their poor record, I am about to outline it. Since 2014 the Liberals voted against or tried to gut the following energy bills in Parliament: the Climate Change Bill 2016, opposed; the Renewable Energy (Jobs and Investment) Bill 2017, opposed; the Renewable Energy (Jobs and Investment) Amendment Bill 2019, opposed; the Energy Legislation Amendment (Licence Conditions) Bill 2020, opposed; and the Energy Legislation Amendment (Energy Fairness) Bill 2021, opposed. This is an opposition that opposes climate –

James Newbury: On a point of order, Acting Speaker, on relevance, this bill is a forward-looking bill, as the government would say, in relation to energy legislation amendment. This is not a matter of public importance. This is not a grievance debate. I understand the member has not got enough to say about the bill. But it is not an opportunity to sledge, and I would ask you to bring the member back to the bill at hand.

The ACTING SPEAKER (Juliana Addison): This has been a very wideranging debate, and the member for Narracan also put in some opinions about it. I will ask the member for Narre Warren South to continue but also to please speak to the bill.

Gary MAAS: To continue, the Energy Legislation Amendment (Energy Fairness) Bill 2021 was opposed. By opposing our renewable targets, by opposing legislation in this place, the opposition are denying Victorians thousands and thousands of jobs, and don’t they hate it.

James Newbury: On a point of order, Acting Speaker, I heard what you said earlier. I do note that no member at that time made an interjection, and we do not retrospectively review members’ contributions. But I would say that the member is not relevant at all.

The ACTING SPEAKER (Juliana Addison): There is no point of order.

Annabelle CLEELAND (Euroa) (18:39): I rise today to speak on the Energy Legislation Amendment (Energy Safety) Bill 2023, a bill that I am happy to support. It may not get quite as exciting as your contribution, member for Narre Warren South. This bill is about modernising the quality of the safety frameworks around the delivery of energy in our state, particularly those in renewable energy sectors. While of benefit to our communities, renewable generators such as solar and wind farms have so far not been made to uphold the same level of accountability that traditional energy companies have. Strengthening the existing energy safety compliance framework is set to be done by a series of reforms, particularly the amendment of the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005. These amendments to these bills aim to improve community safety through more effective and targeted regulation of new and emerging energy safety risks, including those posed by emerging renewable technologies. Looking through the amendments, it is clear to see the changes this bill will introduce.

A member interjected.

Annabelle CLEELAND: It gets better. Extension of the mandatory requirements listed under the Electricity Safety Act 1998 means major electricity companies will prepare an electricity safety management scheme and a bushfire management plan. This means businesses identified as posing a greater safety risk to surrounding land through the operation of their electrical installations will now be required to demonstrate a clear plan for mitigating those safety risks. It is hard to criticise amendments that will further work to keep our communities safe, particularly coming from a regional area that is home to several electrical installations and is prone to bushfires.

The prevailing situation is particularly concerning this year, as numerous factors suggest we might be bracing for an exceptionally challenging fire season. Increasing undergrowth in our forests as well as mild winters and high rainfall have created the perfect fuel for potential fires. The looming threat of extended periods of hot, dry weather exacerbates these conditions, increasing the likelihood of catastrophic events this summer. While the changes outlined in the bill are a positive step forward in ensuring electrical installations are safely managed, it remains critical we do not lose sight of the broader context. We need to acknowledge and address the mounting bushfire risk posed by the undergrowth and changing weather patterns. We have already seen issues with our emergency response systems following recent disasters, including the October 2022 floods, and encouraging these businesses to better prepare for these events will protect our communities. Businesses will also be subject to certain safety duties and obligations commonly seen with major electricity companies under the Electricity Safety Act 1998.

These amendments follow a range of policies introduced at state and federal levels over the past two decades, a time when the electricity sector has been replacing carbon-intensive generation with zero-carbon technologies. At the same time, the sector has been moving away from a small number of large-scale facilities owned and operated by a handful of companies towards smaller scale, more widely distributed electricity production. This significant growth in new energy technologies, particularly in renewable energy and storage, has exposed critical gaps and other weaknesses in the energy safety legislative framework that are being addressed through this bill. The current safety framework was developed based on the risk profiles of regulated entities in the late 1990s, which did not factor in the more recent uptake and investment in small-scale renewable or battery installations. The risks posed by these installations are real, with two serious incidents in 2021, which I think just about everyone has mentioned, underscoring the inability of Energy Safe Victoria to regulate these facilities before these incidents occur.

This bill will also include a series of minor technical amendments to help facilitate these changes. These include amendments to the administration of safety management plans by these businesses, ensuring they remain current to technological changes in both electrical installations and the supply of gas. This bill establishes some stricter guidelines following incidents at these renewable energy providers. The amendment will now require an electricity supplier to preserve the site of a serious electrical incident and a gas company to preserve the site of a gas incident, allowing for inspection by an enforcement officer or authorised inspector. Enforcement of these guidelines will be more heavy-handed. Energy Safe Victoria will now be able to hold on to seized items from affected companies or persons for a longer period of time. Energy Safe Victoria and the Minister for Energy and Resources will be given the power to enter enforceable undertakings with regulated entities as an optional tool rather than court proceedings, and the maximum penalties for offences by energy entities relating to maintaining safe networks will be increased.

As a regional member, improving the capacity of this government to manage the transition towards more renewable energy sources is particularly important. Our regional areas, including the Euroa electorate and the wider north-east of Victoria, are set to be the hubs for many renewable energy projects. Regional communities have had every right to be concerned about some of these projects. I have heard of constituents worried about the impact a project might have on their agricultural land. I have heard them speak about the increased risk of fires, about protecting the biosecurity of our farms and primary producers and about ensuring coherent emergency management strategies, and I have also heard them worry about increases in landholder insurance premiums. While this bill does not address all of these concerns, there are some inroads made.

Another concern about these regional projects has been ensuring that the local communities surrounding them are properly looked after and incorporated into the decision-making process. At the moment in my electorate I have been holding discussions with citizens about the proposed Fera wind farm, something that will impact hundreds of residents between Seymour and Ruffy. Italian company Fera is set to build a 600-megawatt wind farm in the region, with suggestions it could feature up to 100 wind turbines standing 200 metres tall. Residents have been adamant they are not what some might call ‘nimbys’, instead saying that they are concerned about transparency, changes to proposals and the impact the construction will have on the natural and social fabric of the region. This is in no way an indictment of renewable energy sources but rather raises valid concerns about what this bill hopefully aims to address. A major project like this must be held to the same accountability that we see in other sectors, and I welcome this legislation, as it aims to provide this. The Fera wind farm is just one major project in the region and one that will now hopefully follow stricter regulations when it comes to safety, fire management and more, as this bill is set to pass.

Other projects in the community such as the solar farms in Winton and Glenrowan will also benefit from these amendments. While renewables are rapidly developing across the region, bridging the gap between regional communities and mega corporations is critical to economically and socially positive developments. Making this transition to renewables in the right way can and must bring prosperity to our communities. By sharing the benefits, be it through employment, economic profits or development, we can make sure this switch is not at the expense of the people who call these places home.

There is something I wanted to revisit to finish up, and that is how this bill can be of benefit to communities like the Euroa electorate – communities that have unfortunately been prone to several disasters and left vulnerable due to poor emergency planning and preparedness. My electorate has seen issues with flood preparedness and the use of emergency response systems – something that hopefully will be addressed in the inquiry into the October floods. These issues, while mostly relating to flood responses, send a clear message that preparedness and responses to emergencies must be handled better. When Pyalong faced severe storms in 2021, residents expressed concerns about how they were able to access electricity and communicate with emergency services as well as get in touch with loved ones. These sentiments were shared following the October 2022 floods, which greatly impacted much of the Euroa electorate. In the case of a fire, it is worrying to think that these issues would be present too, particularly if the fire had been caused or exacerbated by electrical or gas installations. Preparing the companies involved to actively prepare for these worst-case scenarios is to me the most important provision made in this bill and why I am happy to support it.

Meng Heang TAK (Clarinda) (18:48): Here we are again. I am delighted to rise today to join my good friend the hardworking member for Narre Warren South in his contribution on the Energy Legislation Amendment (Energy Safety) Bill 2023. This is another important bill that we have on the agenda this week – one that will address the current issues associated with the energy safety legislation framework to improve community safety through more effective and targeted regulation of new and emerging safety risks, including those caused by emerging technologies. Energy reform has been a major priority of this government, and we all know how important clean, affordable, reliable energy is for all Victorians. I commend the minister for bringing this bill forward today and for the many initiatives that are being delivered for Victorians across the energy portfolio.

We have seen some really exciting and progressive announcements in recent days and weeks. The change to the residential gas connections announced just last week was an exciting and commonsense announcement. We know across the world the cost of gas continues to increase, and in addition there is a great deal of uncertainty around supply. That combination of factors sees Victorians at the mercy of private companies exporting gas overseas, which has a real impact on the costs for Victorians at home. In Clarinda energy affordability is a major priority for so many families. It is something that is raised with me time and time again. That is why the Labor government is doing the work to make energy more affordable for all Victorians, getting them the best deal on their home energy bills.

As announced last week, from 1 January 2024 planning permits will only be issued for new homes and residential subdivisions connected to all-electric networks, with houses taking advantage of more efficient, cheaper and cleaner electric appliances. Going forward, all-electric can be delivered at no extra cost to the buyer and will slash around $1000 per year off households energy bills or up to $2200 for households that also have solar installed. In another exciting announcement last week, we have made it easier for Victorians to maximise their solar panel generation with a new $8800 interest-free loan on household batteries. Households with both solar and a battery save around $1500 on their energy bills each year. A battery will more than double the amount of solar-generated energy consumed in the home, saving money on energy bills and helping Victoria reach net zero emissions by 2045.

We have had several inquiries through the electorate’s office on this announcement already, and we can hear the excitement from those who make those inquiries. People are excited about this announcement and are eager to utilise the offer. Just as background, the loans will be repayable over four years and in some cases will reduce up-front installation costs to zero. The loan will also be available in addition to the $1400 rebate and $1400 interest-free loan for solar PV if a solar and battery system are installed at the same time, saving eligible households another $11,600 on up-front installation costs, which is a lot of money and a lot of savings for struggling families. So that is a huge saving and one that I am very proud that we are delivering, helping to make this program as accessible as we can. There are out-of-pocket installation costs, but this is really a significant saving.

We are continuing to deliver a power saving bonus program, which we are all very proud of. The current round is open until 31 August, and I was delighted to see another round announced in the budget. The take-up has been absolutely tremendous. At the beginning of this month more than 18,500 households in the Clarinda district had accessed the bonus. That is $4.5 million in support of families with cost of living. We will continue to stand by and deliver for all Victorians on energy reform.

This bill here today is another example of that. It has two important overarching objectives. Firstly, the bill will address the current issues associated with the energy safety legislative framework to improve community safety through more effective and targeted regulation of new and emerging safety risks, including those posed by emerging technologies. Further, the reforms will bolster the safety compliance framework by increasing obligations for electricity and gas companies, including owners and operators. As mentioned, two important objectives will be achieved through the amendment of several acts – namely, the amendment of the Electricity Safety Act 1998 to create a new head of power for the minister to declare certain owners or operators of facilities as subject to increased obligations commensurate with major electricity companies, as well as changes to the safety management plan frameworks under the Electricity Safety Act 1998 and the Gas Safety Act 1997 to enhance safety compliance and increasing civil penalties for all breaches of duties in the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005.

These are important changes, and we need clean, affordable and reliable energy and of course safe energy. Over the past two decades there has been tremendous growth in new energy technologies of various scales and a rise in safety incidents relating to these new technologies, and critical gaps and weaknesses in the energy safety legislation framework have been exposed, as we have heard from previous contributions by members in this house. These are important and welcome changes. We have seen through consultation across a broad range of departments and agencies – including the police, emergency services, Energy Safe Victoria and Better Regulation Victoria – that there is broad support for the changes here in this bill. These changes will ensure that the new safety obligations and regulations match pace with the new energy technologies that are taking us forward into the future.

Again, I would like to thank the minister for bringing this bill forward today and for the many initiatives that are being delivered for Victorians across the energy portfolio, particularly those around cost-of-living supports. I am very proud to be a member of the Andrews Labor government that continues to support families and individuals that need it in the current economic climate. We know that the cost of living continues to be tough on families, and the budget builds on existing support to help with everyday bills.

As I mentioned, we have funded our fourth round of the power saving bonus with another $250 to help households pay their bills. The electricity discounts and winter gas discounts for eligible concession card holders are to be continued, as is the Victorian default offer, which in 2023–24 will still be cheaper than the price of standard offers prior to the VDO’s introduction in 2019.

More broadly, there is free kinder for three-year-olds and four-years-olds, which will save families up to $2500 per child each year. We have slashed the cost of train travel across the state, bringing regional fares into line with metro fares, and there are many other initiatives. We are expanding free TAFE, and I know that you are quite pleased coming from a teaching background, Acting Speaker Addison. These are important initiatives that provide relief where we need it most, supporting individuals and families with the cost of living in all of Victoria. I commend these initiatives, and I commend the bill to the house.

Daniela DE MARTINO (Monbulk) (18:58): I rise to speak on the Energy Legislation Amendment (Energy Safety) Bill 2023. This bill will amend the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 to enhance energy safety compliance. As the member for Monbulk, an electorate which has been severely affected by bushfires in the past and where the risk remains high, energy safety is paramount. We know that the devastating Black Saturday fires of 2009 were in part caused by faulty powerlines. Many other fires across this state have also been ignited by electricity. Whilst we can accept that nature’s electricity – that is, lightning – is well beyond our control, human-generated electricity is most definitely within our remit and something we must always strive to make as safe as possible.

Thankfully lessons have been learned and legislation and changes have been enacted to safeguard this infrastructure and mitigate the risk of future fires being set off by faulty infrastructure. Following the 2009 Victorian Bushfires Royal Commission into the Black Saturday bushfires, innovative safety features across the traditional energy network have been installed. Now, it is not something you normally do of an evening – sit there and google what these look like – but I did watch a few YouTube videos and demonstrations on the different technologies which we have implemented to ensure that our traditional energy network is safer. Firstly, we installed automatic circuit reclosers. They are next-generation network protection devices. They instantly detect and shut off power at a fault on high-risk fire days on 12.7 kilovolt single-wire earth return powerlines. The CSIRO has estimated that these ACRs reduce the likelihood of ignition on bare-wire powerlines by nearly half.

Business interrupted under sessional orders.