Tuesday, 15 August 2023

Bills

Energy Legislation Amendment (Energy Safety) Bill 2023

Second reading

Debate resumed on motion of Jaclyn Symes:

That the bill be now read a second time.

David DAVIS (Southern Metropolitan) (13:42): I am pleased to rise and make a contribution to the Energy Legislation Amendment (Energy Safety) Bill 2023. It is a bill we will not oppose, but this bill amends various energy acts to strengthen energy safety compliance. The bill amends the Electricity Safety Act 1998 in relation to requirements for certain owners and operators of electrical installations. It amends the Electricity Safety Act in relation to modifications of supply networks and changes to safety management systems and revised electricity safety management schemes and bushfire mitigation plans. It amends the Electricity Safety Act 1998 in relation to voluntary electricity safety management schemes for operators of complex electrical installations, the period within which things seized by enforcement officers must be returned, the preservation of serious electrical incident sites, the acceptance and enforcement of written undertakings, penalties for offences and the period within which a proceeding may be commenced. It amends the Gas Safety Act 1997 in relation to the preservation of gas incident sites, modification of facilities and changes to safety management. It also amends the Pipelines Act 2005 in relation to acceptance and enforcement of written undertakings and penalties for offences.

Part 2 of the bill, the amendment of the Electricity Safety Act 1998, the Governor in Council published in the Government Gazette. It can under this provision declare an owner or operator of an electrical installation as a declared owner, to which certain duties and obligations apply. Transmission companies must pay to Energy Safe Victoria an annual amount to be determined by the minister. It aligns the general duties of an owner or operator of a complex electrical installation with those of a major electrical company, including designing, constructing and decommissioning an installation and a supply network. It also deals with some of the duties of an operator to minimise bushfire danger and a general duty of major electricity compliance companies. It ensures that a major electricity company has prepared a revised electricity safety management scheme every five years – every half decade.

A major electricity company must prepare and submit an initial plan, and then there is an iterative process from there. A voluntary electricity safety management scheme operator must prepare a revised electricity safety management scheme every five years, and Energy Safe Victoria may require independent audits to ensure compliance with that electricity safety management scheme.

Part 3 deals with the Gas Safety Act and amendments to the Pipelines Act. It increases various maximum penalties in relation to the general duties under the Gas Safety Act 1997: a gas company or an operator of a complex gas installation or a manufacturer of a particular appliance must submit a revised safety case to Energy Safe Victoria. Energy Safe Victoria may accept written undertakings. Application can be made to the Magistrates’ Court for an audit for enforcement of undertakings. Proceedings for offences against regulations under the Gas Safety Act 1997 must be made within three years.

There are also amendments to the Pipelines Act, as I said, in relation to construction of pipelines and railways and other related matters. It increases the various penalties. The minister may accept certain written undertakings, and application may be made to the Magistrates’ Court for enforcement of those various undertakings. I note that the Scrutiny of Acts and Regulations Committee has made no comment in particular on this.

There are a couple of points I want to make here. This is not going to be quibbled with in the chamber, I do not think, by most. But the government has got responsibilities that go far beyond this, and we saw with the Dandenongs – and no doubt Ms Bath will have a bit to say about the Dandenongs and what happened with some of the natural disasters there and the failure to have adequate preparation in place – that the government has not led by example here. It is all very well to push this back onto the firms, but the government has not led by example. The government has not worked with the firms in the way that it could have to get the best result.

Electricity safety matters go back to the bushfires. People will remember in 2009, with the terrible bushfires that occurred and the impact that occurred on Black Saturday, the failure of energy providers to have in place proper regimes. Many of these, let us be clear, are historical. They are networks and historical systems. Certainly there were significant recommendations by the royal commission that have not been fully implemented, and I think that the community can ask questions about the failure to adequately implement those recommendations.

I think the issue is about to become more intense too. As we move to a system that has more renewable energy, there are going to be more and more large, long networks carrying significant power, and this issue of safety will become a very real one. I know out on the steps of Parliament today people are worried about long trunk lines that are carrying electricity, effectively from country sites, where it is generated, to Melbourne. That is effectively what is going on over long distances, and it is critical with these sorts of wire networks that they are safely in place. There are a whole set of environment issues that impact on local farmers and local communities, and the government appears to be proceeding on these matters without proper consultation, without proper engagement with the community and without a proper regime in place to get the outcomes that I think most people would want to see: fairer arrangements, arrangements that help us meet our greenhouse targets but at the same time that are not unjust to individual landowners, that do not destroy the worth of farms and that do not destroy outcomes for those in particular communities.

The truth of the matter is under this government energy policy is a big mess. We know that the cost of energy is increasing massively, and one only needs to look at the Victorian Default Offer 2023–24: Final Decision Paper from the Essential Services Commission on 25 May 2023. They announced their default offer arrangements, and it says the final 2023–24 default offer prices represent an annual increase of 25 per cent. That is $352 for residential customers, assuming annual usage of 4000 kilowatts, and $752 for small business customers, assuming an average annual average usage of 10,000 kilowatt hours. Typical bills for residential customers will increase from $1403 to $1755 next financial year. For small business this means an increase from $3039 to $3791 on average. Of course the new prices, which are in line with most default market offers announced around the country today, will apply to all Victorian default offer customers. Around 15 per cent of households are currently on the Victorian default offer. But that gives you a window into the enormous price surges that consumers are facing, the smashing of family budgets and the cost impact on families trying to do their best – struggling families that are really feeling it.

This is a government that has jacked up taxes right through the whole system. No doubt we will hear from the government members that that is not the case, but let me just be quite clear: land tax has been increased on powerlines. Powerlines traversing government areas have had increases in land tax on them. Make no mistake, the decisions of this government directly and precisely impact the cost. The government is scooping money back from land tax increases on the electricity wires and in doing so actually is scooping back more money into its coffers. But those costs, according to the current arrangements, flow directly through – it is a straight transfer – to the energy prices that are charged by the energy distributors. This is what we see under this government: 50 new taxes and charges, massive hits on family budgets, a shortage of supply – and inadequate and intermittent supply in some cases – and costs surging. This default offer shows you exactly where it is all heading under Daniel Andrews and his government. This government, in one form or another, has been in power for 20 of the last 24 years.

Tom McIntosh: Hear, hear.

David DAVIS: Well, I will tell you what, people are not happy with the charges they are paying. That is a result of your government’s activities, your government’s approaches and your government’s failure to put in place outcomes that actually assist.

I have just outlined one very specific tax that this government levies directly on every energy consumer. Wires traversing government land cop the land tax, and the land tax is pulled back and is passed straight through as an additional charge. There is not even any question about this. The tax is passed straight through as an additional charge to every electricity user, and that is businesses and families. The tax hit from this government is fed straight through into higher energy charges for every single Victorian, make no mistake about this. Families can feel it. Families know the prices are going up, and families know that their budgets are being smashed. They have obviously got many other things going on too – obviously interest rates have gone up and that is impacting – but a big whack of the charges on families are coming straight through the activities of this state government, whether it be charges on road users or whether it be these sorts of electricity charges feeding through.

Even when it comes to rent, the higher land taxes are feeding straight through into higher rents – feeding harshly through – and people can feel it. Families can feel it.

Tom McIntosh: On a point of order, President, I am just failing to understand how roads and a variety of other things that Mr Davis is talking to have anything to do with what is in this bill.

The PRESIDENT: Mr Davis has some more scope, being the first opposition speaker, but I am sure he will come back to the bill.

David DAVIS: Yes, President, I will take your guidance. But I should make the point that I was trying to point to the costs that people are feeling with electricity charges – very relevant and directly relevant to the bill – and trying to set that in a context of what people are feeling more broadly.

People are feeling the pain of increased energy costs, and that is a big part of the matrix that they are feeling in terms of increased cost of living. I for one am very concerned about what is happening with families and these electricity charges smashing into family budgets, smashing into small business. You know, poor old small businesses are sitting there and these hits are coming from every side – massive electricity charges, as we have heard on the default offer, a massive increase in energy –

Tom McIntosh interjected.

David DAVIS: I tell you what, let me read about this again:

The new prices, which are in line with most default market offers … around the country … will apply to all Victorian Default Offer customers … Around 15 per cent of households.

But when it comes to business:

Typical bills for residential customers will increase from $1,403 to $1,755 next financial year –

that is Daniel Andrews’s record –

and for small business customers, this means an increase from $3,039 to $3,791.

A massive increase. And look, small businesses are feeling it on every angle. The WorkSafe Victoria charges are smashing in too. All of these are clobbering families and clobbering businesses. I do think there is a series of issues to be made here for our speakers to draw attention to the ramshackle regime of regulation that is in place in this state, the failure of the government to help consumers and the failure of the government to constrain the prices and costs that are a part of their regulation. Some of this is directly applicable, and the example I have given so that people understand this is more land tax on those electricity providers, which is allowed to be fed straight through into increased charges for businesses and straight through into increased charges for families. No wonder families are struggling. No wonder families are feeling it. Daniel Andrews and his government have a lot to answer for.

John BERGER (Southern Metropolitan) (13:57): Today I rise to speak on the Energy Legislation Amendment Bill 2023, and there has been a lot of legislation put forward this year from the government to update our energy legislation. This is because many of the statutes on the books are outdated and no longer fit for purpose, which brings us to this bill. The Energy Legislation Amendment Bill 2023 primarily makes amendments to the National Electricity (Victoria) Act 2005 and the National Gas (Victoria) Act 2008 for the purpose of strengthening regulatory frameworks that oversee and regulate the sale of electricity and gas in Victoria.

This bill seeks to ensure that Victoria’s electricity market serves Victorians first. The bill will modernise our energy safety legislation framework to improve community and worker safety and will create a more effective and targeted regulation of new and emerging safety risks. As we know, the emerging technologies that we adopt as the state undertakes a rapid energy transition to renewable energy do not mean that we should drop the ball on safety. With heightened protections surrounding the sale of electricity and gas, Victoria will ultimately become a safer and easier state to live in. Our laws are outdated and unable to deliver the protections needed to ensure safe electricity and gas markets. This is in terms of both literal safety but also, more so, economic safety. Both are achieved through one avenue – introducing clean energy to Victoria. It is cheaper, it is safer than gas, it must be done.

Energy prices have gone through the roof since the Russian invasion of Ukraine, and the obvious solution to avoiding this is having an independent generator of electricity so that we do not have to solely rely on traded fuels for electricity, which is coincidently a perk of renewable energy transitioning away from gas. That is right – Victorian grown electricity is better for Victorians. To quote from the Australian Energy Market Operator’s climate and energy director Tennant Reed, as he stated in August of last year to the ABC:

The faster we can make the transition to clean energy happen, the less of that Ukraine invasion premium we will be paying.

Everyone knows that it is time to get on with the job. This bill is a key part in the management of the transition and in ensuring that all Victorians benefit from the transition to a cleaner energy system. Under the Andrews Labor government things do not have to get worse before they get better. The retail reliability obligation trigger will ensure that as we adjust to renewables and develop both the technology and scale of the energy, if there is any instance of a dip in the energy supply, the Australian Energy Market Operator, or AEMO, will identify and anticipate its arrival. Energy distributors will then enter sufficient qualifying contracts to ensure that their proportion of supply is protected.

For what has felt like a long time but is only really a recent development, power bills have been a big stress on families’ budgets, influenced by both the cost-of-living crisis and inflation. The Andrews Labor government has been doing an enormous amount of work in the world of energy legislation programs and policies to help mitigate that pressure, along with other measures outside of gas and electricity to help everyday Victorians with the pressures of costs of living, the most well known being the power saving bonus, which was a tremendous success in my community of Southern Metro. Hundreds of thousands of applications were made across the electorate, with countless locals in Southern Metro able to compare their energy plans to get a cheaper deal. The amendments made in this bill recognise this, seeking to push our laws into the future and ensure that energy regulation is set out to protect.

The amendments to civil penalties for breach of these regulations or obligations will also send a clear message to any energy providers in Victoria seeking to dodge the rules, and they will not be getting away with a slap on the wrist. The amendments will increase the maximum penalties for non-compliance with the regulations and the relevant regulatory body, allowing the courts the flexibility to prosecute non-compliance with the weight and reprimand that it deserves. They provide a legislative framework to compel owners and operators of critical and complex installations, such as batteries, to reduce safety risks prior to energisation. They ensure newer technologies like batteries, wind farms and solar farms are held to the same standards as existing power generators and network technologies. This is because in Victoria no-one gets away with breaking the laws, regardless of what kind. Without observing these measures to protect energy market customers, organisations and companies will be seriously harming their customers. That kind of wilful neglect is not on.

This bill was written after widescale consultation with various interest groups, stakeholders and community bodies. This includes Victoria Police and the relevant departments, including the Department of Premier and Cabinet, the Department of Justice and Community Safety, the Department of Treasury and Finance, the Department of Education, the Department of Families, Fairness and Housing, the Department of Health and the Department of Transport and Planning. This was to ensure that the subsequent amendments have been influenced by much consultation.

This is following amendments made federally to the national electricity laws, ensuring that Victorian legislation is up to date with obligations made to it by the federal government. We will also have caught up with our neighbours in South Australia, whose minister has had the power to trigger a retailer reliability obligation (RRO) after consultation with the Australian Energy Market Operator since 2019.

The first act amended by the Energy Legislation Amendment Bill 2023 is the National Electricity (Victoria) Act 2005. The bill seeks to improve and add to the methodologies and requirements for the triggering of an RRO. This is a responsibility set out in the national electricity laws and the national body of rules that regulate electricity sale and other retail affairs. Until recently it was the responsibility of the energy regulator alone to trigger the RRO. However, federal laws were recently amended to make this also the responsibility of the jurisdictional minister. This means that the relevant jurisdictional minister of any state bound by the national electricity laws, which only exclude Western Australia, may now be able to seek to trigger the RROs, just like South Australia has been for the last several years. To this effect the bill is amending the National Electricity (Victoria) Act 2005 to be in line with the federal electricity laws stipulating the responsibility of triggering the RROs.

Additionally, it introduces relevant protections and safeguards to ensure that the legislation is fit for Victorian use. This means several different aspects that make Victoria’s situation unique, most notably our transition away from gas. Unlike other states under the jurisdiction of the national electricity and gas laws, Victoria has made a clean and decisive step towards addressing the need for clean energy, which is a key part of delivering real climate action so that future Victorians can enjoy a healthier planet and environment. This step of course is the banning of any new gas stoves being installed in new homes.

Banning new gas stoves means a small but sensible step in the right direction that, despite the misinformation being spread around, will not negatively affect those already living with a gas stove. It simply sets and ensures that we will not be adding to the issue. The no new gas stoves policy will also translate to cheaper energy bills in the long run and a safer home kitchen. Gas is expensive and dangerous, and if gas appliances are not serviced regularly owners run the risk of having a home with a gas leak. Electric kitchen appliances do not have the same issue.

RROs are an important aspect of Australian energy law. Essentially the RRO can be triggered when the Australian Energy Market Operator predicts there will be an anticipated shortfall in our electricity supply. After the RRO is triggered, electricity retailers will be required to enter into contracts with generators, assisting to support the rollout of new generation capacity under the new circumstances. Under the newly introduced ministerial trigger, ministers will not need a prediction of an electricity supply shortfall. Of course there is a series of procedures, requirements and methodologies that the energy and resources minister of the day must follow diligently when triggering an RRO for the state of Victoria. This is to ensure that at no point in the future this power is abused. Introducing the power to the minister has the great potential to protect Victorians in the future in occurrences where we see, as we did early last year, a threat to the supply of energy in Victoria, which would ultimately result in heightened prices and heavier household bills. The procedure that the Minister for Energy and Resources would have to undertake includes direct consultation with the Australian Energy Market Operator, direct consultation with the Premier and the Treasurer and consideration of further specified information and criteria for a situation in which it would be appropriate to exercise a ministerial trigger of the obligation. This is to avoid the situation in which the newly issued power is abused, but it will also ensure that whenever the retailer reliability obligation, or RRO, is triggered before a potential reliability gap the minister has the full picture and full story and is reliably informed to take the next step.

This is not the only amendment made within the bill. The bill will also introduce higher civil penalties for non-compliance of industry groups and companies under energy regulations in the state of Victoria. This is to reflect the true severity of non-compliance with energy regulation law and to act as a deterrent to any industry bodies that might consider breaking the law. If you flagrantly disregard energy regulation, the regulatory body will fine you and they will prosecute you, plain and simple. It is high time that we recognise the true severity of violating electricity and gas regulations and obligations. As an energy provider that fails to comply with this obligation will unfairly disadvantage their customers on the supply of an essential product, it is important that we ensure civil penalties act as a strong deterrent in what I hope are the few instances where any energy distributor pleads that they can get away with shirking the law.

It should be noted that there was a measure regarding cybersecurity initially recommended in this bill. This matter has now been placed under the responsibility of the Department of Energy, Environment and Climate Action, or DEECA, as opposed to being delayed in the process of the bill. DEECA is supporting the delivery of mechanisms for achieving increased awareness of cyber risk management and cyber incident reporting in the energy sector in the place of initially proposed energy legislation amendments. This will ensure that any reported cybersecurity risk is swiftly and effectively addressed. Some people may wave the finger at the heightened regulation, but it is undeniable that regulation is the best way to ensure that a market delivers for consumers as well as protecting companies. With something as important as your electricity bill, you would want the market to have as much scrutiny applied to it as possible.

This is why the Andrews Labor government is reintroducing the SEC. The SEC means Victorian power in Victorian hands. The Andrews Labor government is committed to ensuring that Victorians have the best possible delivery of essential products and services, like their electricity and gas. We have more than tripled the share of renewables in power generation in just eight years. We have helped nearly a quarter of a million Victorian households install solar on their roofs. This has reduced bills, putting power back in your pocket and giving you control of your energy. We have held the Victorian renewable energy target auction, the country’s largest reverse auction for renewables. We installed the Victorian Big Battery, the largest in the Southern Hemisphere, and we made Victoria the home of big batteries – that is Victoria, not South Australia.

Through our work we have reduced greenhouse gas emissions by more than any other state in Australia since 2014, and we have only just begun. Having blown past 2020 renewable energy targets of 20 per cent, we have increased our 2030 renewable energy target from 50 to 65 per cent and we have set an ambitious goal of 95 per cent by 2035. This target is backed by separate targets for offshore wind and energy storage. We will have 2 gigawatts of offshore wind by 2032 at least, four by 2035 and nine by 2040, and to support this we will have at least 2.6 gigawatts of storage by 2030 and at least 6.3 by 2035. This is exciting stuff, and it means more jobs, cheaper energy and cleaner air.

So we must ensure our legislation is up to date. We saw the serious fires in 2021 at the Victorian Big Battery and at the Cohuna solar farm. We saw how this highlighted the limitations Energy Safe Victoria, ESV, must operate in and its regulatory limit. ESV was unable, until it was too late, to intervene to regulate these sites until the fires had occurred. That is not acceptable, and it must be changed. These amendments will ensure that our system is protected against many risks that could potentially lead to harm of our energy consumers in this great state. It will protect the ongoing market, it will protect the transition to renewables and it is vital to safeguard consumer protection and confidence by ensuring the safe delivery and regulation of these new technologies.

We are building the renewable economy for the future, and for the economy of the future we need good legislation for the future. To this effect I commend this bill to the floor and encourage my colleagues to do the same. It is a sensible and intelligent bill that will protect Victorians from future reliability risks on the energy market and assist the smooth transition into a more future-ready Victoria.

Melina BATH (Eastern Victoria) (14:12): I am pleased to rise to make my contribution on the Energy Legislation Amendment (Energy Safety) Bill 2023 this afternoon, following on from my colleague Mr Davis, and in doing so I would like to put from the outset that it is important to have a focus on safety, particularly where the electricity system is concerned, whether it be at the point of manufacturing of various types or indeed the concern that the farmers had this morning on the steps of Parliament in relation to large infrastructure transmission lines coming through from the north and the west of the state. I appreciate their concerns and endorse their concerns and really hope that the Andrews government actually goes and pays them the homage and the attention that they deserve.

This particular bill is about modernising a safety framework around the delivery of energy, and there is no more I think live and real topic – well, there are multiple live and real issues in the state of Victoria at the moment. But certainly Victoria is facing an energy crisis, and it is felt very much in the heart and homes of families, small business and industry trying to afford those bills and the concerns around the supply of dispatchable, affordable electricity.

This particular bill amends the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 to look at and strengthen the compliance framework. It looks to expand on the expanding nature of energy production in Victoria and particularly encompass new energies, renewable energy generators in terms of solar and wind – I refuse to call them farms; I will call them plants, because they are not technically farms – but also for those new energy technologies to encompass, be responsible and have the same level of accountability as traditional energy companies, those of generation from gas and coal. The bill looks to improve that community safety through effective targeted regulation and to reduce those risks, as I have said.

We see the changing nature of the energy landscape in this state. One of the interesting things is that when I was part of an Environment and Planning Committee inquiry into the renewable energy sector, the committee did not like my suggestion. They did not agree with an amendment that I put up to look at wind and solar plants in terms of the bond structure and noting that when these large infrastructure projects get up and impact on our landscape, whether that be offshore or on land, the companies that build and run them need to have an obligation that, when those sites are at the end of their productive life, they actually remediate them, whether that means a rolling over or an actual turning back and returning to some form of viable land for agriculture or the like. This needs to be addressed, so I put it on record. A couple of years ago I certainly had that bond scheme in the Liberals and Nationals minority report, and I think it is something that needs to be looked at. It is okay to build, but what about that remediation, and who is going to foot the bill? It should not overly be the taxpayer of Victoria well into the future.

Some of the very important local projects look to be happening off the coast of Gippsland, a fantastic region. Anyone who lives in Gippsland or has spent any time there knows it is a windy place and indeed there are those offshore waters to the east at Wilsons Promontory, noting that it is very important that this certainly needs to be kept to that zone. We have had people write and respond in relation to any other locations with their concerns, and I am very sympathetic to their concerns. I remember when the Star of the South came and was speaking to the public. Indeed there was a forum in Leongatha – and I attended that – back in 2017. I have been speaking on the opportunities not only for wind generation being offshore – that potential – but also for jobs in Gippsland and the importance of jobs in the Eastern Victoria Region. Interestingly, the first time that the government really mentioned that was back in 2021, and by 2022 they were taking credit – that they are actually driving the process. Well, it was very wisely some forerunners in Victoria in terms of the Star of the South. Indeed there are many more players now and proponents looking to come into wind development offshore, and they will, I hope, have their day as well.

One of the things that I think is really concerning about that particular project and its development is that the government seems to have already done a captain’s pick on the establishment of the major port that would feed those offshore wind turbines and wind plants, and it seems to be a captain’s call of Hastings. Hastings is indeed in my Eastern Victoria electorate and a very worthy place, but the government and Minister D’Ambrosio have focused their eyes there, and I am concerned that she is ignoring the other potential opportunities at Barry Beach and Port Anthony. It is a privately owned site, and I know I have had a number of conversations with proponents – Qube and the like – to discuss the opportunities, the requirements and all that goes with it. But I certainly think this government absolutely needs to have a focus on what opportunities there are for Gippsland as a whole as well. As we know, there is component assembly and installation, the servicing of the turbines and the service operation vessels – where could they actually come from? I think there needs to be an astute discussion with a focus on looking at Gippsland jobs.

In relation to that, I do get concerned that there is certainly a lot of pain happening in the Latrobe Valley, and it is a place very dear to my heart. There are job losses and industry closures, and this house has heard me speak about the native timber closure. I will not go into that in great detail on this particular bill, but there is a changing nature of energy, a contraction – we know that Yallourn power station will be closing by 2028 – and the need to pivot. I am going to make some comments in another forum on the Latrobe Valley Authority – I will leave that piece of information for another time, but I do certainly have some very strong comments about its most recent report.

But back to the bill for the moment: one of the amendments in this bill, and it is indeed to the Electricity Safety Act, has the purpose of revising bushfire mitigation plans as well as electrical safety management schemes. If you mention bushfires in Eastern Victoria Region, we have had more than our fair share – more than we ever want to have again. The reality is we are certainly a fire-prone region in Victoria and across the nation and across the world, and all government focus needs to be on mitigation. If this bill can go some way toward revising and improving mitigation plans, then that is a reasonable thing. What the government has not done over the past many years is take on board the 2009 Victorian Bushfires Royal Commission recommendation 56 from the 2009 fires in relation to a 5 per cent rolling target for forest fuel reduction burns, preparatory burns, and it is a concern that the Andrews government has ignored that. They have gone off on their own. They have gone off on Safer Together. It was rolled out in 2015 as being the panacea for our fire mitigation, fire protection. We see that the resulting prescribed burning, the fuel reduction burning, is less than 2 per cent in any given year and it is quite low in terms of the overall hectares burnt.

In 2019–20 we saw catastrophic fires – 1.6 million hectares, almost 400 homes, lives lost, not to mention our natural fauna and flora lost. I am always gobsmacked at how the Greens can speak about the destruction of various things but they forget about all those incinerated animals due to poor preparatory burns by the government. We will always get fires, we understand that, but it is about the mitigation of them, and this government has been a very poor neighbour in terms of public land and the way it does and does not do fuel hazard reductions. I could go on. My point is that the government needs to turn its focus to that. We have lost expertise and machinery with the closure of the native timber industry. This is a problem that will not go away, and it will affect people in regional Victoria.

One of the amendments amends the gas act. That looks at the administration of safety management plans by the relevant entity to ensure that they remain current to technological changes in electrical installations in the supply of gas. I am sure people know where I am going here. I have just heard Mr Berger say – and I wrote it down – ‘gas is expensive and dangerous’. I think it is incredibly inflammatory of Mr Berger to say that: expensive and dangerous. I have used gas in my house, as have thousands upon thousands; indeed 80 per cent of Victorian homes are connected to gas. If it was dangerous, people would not be using it. It is actually really renegade of people to say that. In relation to the government’s thought bubble to shut down gas connections by 2024, this is –

Members interjecting.

The DEPUTY PRESIDENT: Order!

Melina BATH: When I light my fire at home and I light my gas system to cook my vegetables, it is actually nourishing my health. It is keeping me warm and it is cooking my food, and I will never, ever, ever use induction. I love gas.

Members interjecting.

The DEPUTY PRESIDENT: Order! Ms Bath to continue without assistance, please.

Melina BATH: The New South Wales government thinks it does not need another complication in the gas market. It is not going to go and ban new gas connections to homes. This will only seek to increase the cost of homes and increase the cost of supply, and it is quite frankly an absurd policy.

I could also go on about the thought bubble that is the SEC. It is a half-baked plan. There are no partners. This is a broke government who had a thought bubble at the time of the election. Let us look very briefly at the interim CEO of the SEC, Mr Miller. He spoke at the Public Accounts and Estimates Committee about how the investments would be solely Australian co-investments, and then he also said there was no preclusion for foreign investors to come into the market. We have heard the government say the SEC will allow us to deliver renewables, but these renewables are being delivered anyway, and I have cited the case of those. He has also talked about whether the SEC or the Treasurer had set a rate of return for this investment by the Andrews government on the SEC, and the answer is, ‘Well, not yet,’ even though the government is expecting to invest probably by the end of the year. So it is putting in money; it is not sure how much investment it is going to get. The SEC was sold as going back to the olden days. Well, that was generation, poles and wires as well as a retail arm. However, the minister has ruled out that we are going back into transmission and distribution. It does not know which way it is dancing, the SEC, and it will prove to be a headache for many Victorians. The Nationals want to see a safer Victoria. This bill goes part way there, and it can walk through the house from our point of view.

Tom McINTOSH (Eastern Victoria) (14:27): Well, it should come as no surprise to anyone here that I am very happy to stand in support of this bill here today, very happy to follow on from my colleague Mr Berger and very happy –

Harriet Shing interjected.

Tom McINTOSH: Indeed, I am very happy also that Minister Shing, my colleague from Eastern Victoria, is here, because I think up-front the whole reason why we are debating this bill is because of leadership – leadership that has seen new technologies emerge and new technologies succeed. For those opposite, it does not matter what political playbook they look at – they want to stay in the 1950s, and they do not want to take a step out of it. They refuse to. We heard in the last contribution that they will stay in the 1950s. They refuse to leave. It is this side that has taken the commitment to action on climate change and to the various pieces of that puzzle that we must act on to get the outcomes that we need, and that has led exactly to us standing here with this bill in this Parliament today.

We have had fantastic men and women contribute to the energy system that we have had here in Victoria for the last 100 years, particularly in Latrobe Valley through thermal coal generation. That has been an incredible technology that has delivered prosperity to this state and energy to our businesses, our people and our homes. However, the time has come where we know we need to move forward in how we generate our energy. That centralised thermal generation is now giving way to decentralised generation using various renewable means – sunshine, wind, water – and these are cheap ways that we can generate energy to ensure our energy capacities, needs and desires are met. So with this new technology comes a need for new legislation and new regulation, remembering that it is not the centralised model it has been, which has been perhaps easier for regulators to focus on, with a discrete number of locations and a small number of operators, originally state and then of course that was privatised during the Kennett era. Now we have a situation where we have more and more generators.

It is great that we have renewable generation, but we have to make sure that those operators, those generators, are working under the same or equivalent safety requirements as our generators of the past. We need to make sure that the workers that work in and around those energy generators are kept safe and that their pay and conditions are equivalent to conditions that we see in other areas. We know it is important that we move to renewables as quickly as possible, but that does not mean that we just throw away the rule book and have a wild west cowboy scenario. We have to ensure we have the right conditions.

That is why this bill is focusing on compliance for those generators to ensure that in their project planning and in their project delivery they are reporting on what it is they intend to do and they are reporting on what they are doing. We are ensuring that the regulator has the tools in its hands, with those civil penalties, to pull up anybody – any company, any generator – who is not doing the right thing, because we have seen time and time again that where there is no proper regulation and where there is no proper enforcement lives are at risk. Whether it is workers dying or suffering amputations or lifelong injuries, it is incumbent upon us to stand up for them. This side has always stood up for workers to ensure their safety and their conditions. It is also about community safety. We have seen over the last century what happens in major industries, in major construction projects and in various things when these regulations are not adhered to. We see the consequences. That is why this bill is so important to our workers and to our communities – so that they are all kept safe.

I think the other thing I want to touch on early in my contribution is this new technology and what it means for the new workers, the new skills. We have seen that the Labor government has a $50 million commitment to TAFEs for clean energy. We see a massive new sector emerging, particularly offshore wind. Ms Bath commented before about offshore wind; I am going to come back to some comments made on that before that I think need to be addressed. We see thousands and thousands of jobs. This government is always committed to jobs and committed to apprentices and trainees, because when we see privatisation we see a shortage of apprentices and trainees, which leads to a shortage of tradespeople. When you get a shortage of tradespeople, people in their homes, mums and dads, go to ring and find a tradie to come around and do the work – and, guess what, they cannot find them. That is why you have got to make the commitment to train people and train them well.

Harriet Shing: Free TAFE.

Tom McINTOSH: Free TAFE. Thank you, Minister Shing. We need that commitment, which this side has – after we saw what happened in the 1990s with privatisation and jobs going out the window. I remember as an apprentice myself there were the pre-era tradies who wore their overalls, they wore the colour, there was pride. They had jobs, they stuck with their jobs, they got gold watches. Then it just became contractors – ‘Righto, you’re in for six months, then you’re out.’ So we have seen what happens. As these new technologies emerge, which this bill deals with – the new technologies that are emerging to deal with the problem that we have identified, the plan that we have put in place to deal with the problem – these new workers are required. We know – back to offshore wind – how many workers are going to be required going forward: tens of thousands.

Coming back to this government’s commitment to apprenticeships and traineeships, whether it is the Big Build, whether it is the Metro Tunnel or whatever you look at, there is that commitment, that 10 per cent commitment of apprentices on the jobs so we have a pipeline of well-trained, well-skilled workers. I think it is great that this bill is ensuring their safety. It is ensuring the projects that they are on are compliant from a regulation perspective so these jobs are being built safely and efficiently so that – to the key part of it all – we get the energy that we need for our state.

I just want to come back a little bit to the why: why we are here and why we are doing this. I know this has been a very difficult issue for some, particularly on the other side. For the last 25 years at least we have known this is an issue of –

Michael Galea: Longer.

Tom McINTOSH: Well, much longer. Thank you, Mr Galea. But the real politics of this has probably been hot for the best part of 20 years, and we know we have to take action on climate change. We look at what is happening in Europe in their summer – record temperatures. Year on year we keep seeing records. And there are those that would be deniers. We had the deniers for the best part of a decade – delayed action. And then you have got the –

Harriet Shing: Some of them are on the opposite benches.

Tom McINTOSH: Indeed. Then you have got the naysayers: ‘Oh, you know, we’re not too sure.’ And then you have got those that just look for other ways to delay. I for one really struggle with negativity, with no detail, no plan, no position for the public to listen to, to get behind, that actually thinks about how we are going to go forward. It comes back to that: do we want to be in the 1950s and just say, ‘No, the sky’s falling in, everything is bad’? Well, do you know what – there is no solution. There are no problems. It is just negativity. We seem to see that from the political spectrum, you know, either side of Labor, and I think it has a lot to do with why we have been re-elected to government – because we are putting a clear plan on the table: zero emissions by 2045. There it is. How are we going to reach that? Energy is an absolutely crucial part, so by 2035, 95 per cent of our emissions will come from clean energy sources, and we are building the plan to do that.

Ms Bath talked before about Hastings and why the Port of Hastings was chosen. It is a deep-water port, a 12-metre port that we need ships to get in and get out of to install the wind turbines. And I also have to pull you up, with respect, Ms Bath. You talked about how, effectively, the Labor Party has come late to offshore wind. The federal National–Liberal party – because it basically is the National–Liberal party now – sat with the regulatory framework for offshore wind in the minister’s drawer for years. It was unions, it was environmental groups that pushed for this industry to come. And we know this industry is worth tens of billions of dollars and thousands of jobs. The biggest issue we have is finding enough workers to fill the roles and to train these workers, which is why we are committing the money and the TAFE programs to ensure we have these workers. But it is more than the TAFEs, it is the jobs that are going to come out of our universities to support this industry.

I get a bit passionate and a bit worked up when there are just these blocks, these negativities: ‘The sky’s going to fall in.’ But yet we move forward. We move forward as a people, as a state, as a country and as global citizens, because that is what this takes. It takes commitment as global citizens to deal with this problem.

On the energy component, we have seen what we have done on the Victorian renewable energy target (VRET) with the auctions. The most recent one last year was 600 megawatts, and there are six major projects to ensure we are continuing with our solar farms, our wind farms, so they are delivering. I have talked in this place before about how we have the highest concentration of solar photovoltaic, rooftop solar, in the world, which is absolutely fantastic. Australians have seen that it is incumbent on all of us to get involved and produce clean zero-emission energy.

Not only that, it actually makes financial sense. In the 1970s it was $100 a watt for solar panels. Now we are talking a number of cents, because do you know what – when we invest in technologies, when we invest in people, when we invest in the skills, we get efficiency of returns on these things. And now they are so cheap – affordable energy for people to have on their own home. Batteries are coming; EVs are coming. People like to mock all this stuff. I am proud to stand here on the record, as is this government. We are backing it, whether it is our public transportation and our buses – having our buses powered by electricity by 2025 – or whether it is setting up charging stations, the infrastructure for private citizens to buy electric cars over coming years. We are already seeing an explosion of that. We have gone from 2 or 3 per cent to 8 per cent in a matter of months. That is just going to grow and grow and grow as the supply comes on.

Harriet Shing interjected.

Tom McINTOSH: Yes, and government buildings, and that comes back to the VRET and the reverse auctions, ensuring our government buildings have clean energy – all of our government sectors, clean, clean energy for all of it.

Harriet Shing: Public housing.

Tom McINTOSH: Public housing – we have been talking about public housing today, but I am going to stay right on topic here, unlike Mr Davis and unlike others who wanted to talk about things that did not even relate to energy. I do not know whether it is because they do not understand energy or they do not want to talk about it or they are embarrassed because of 20 years of inaction and no plan. You know, the federal National–Liberal coalition – was it 16 different plans on energy?

I am not sure if their energy ministers had their teams’ offices mixed up and it was like, ‘There’s my policy adviser and there’s my media adviser. Which out-tray do I grab my paper out of as I head to my media release today?’

Harriet Shing: I will just take a lump of coal in.

Tom McINTOSH: I will just take a lump of coal: ‘It won’t hurt you!’ And this is why so many Australians are switching off them, because they have just seen there is no willingness and there is no ambition to deal with it. There is just negativity. And the negativity works – credit to them. They got a good eight or nine years. Abbott did all right. He got into government, but what did he do for the people of Australia and for the world? Nothing. They did not deliver anything.

Melina Bath: You are digressing. Wander back.

Tom McINTOSH: Yes, I should bring it back. Thank you, Ms Bath.

Harriet Shing: Let’s talk about induction. How good is induction?

Tom McINTOSH: Induction cooking –

Harriet Shing: You would never ban yourself from induction, would you?

Tom McINTOSH: I would not ban myself. Look, I cook with gas at the moment, but I am very, very open and very willing to move to induction, because we do know the harmful effects of gas. We absolutely know the harmful effects of gas. I think if we brought any doctor – I mean, it all comes back to science. You listen to the science of climate. You listen to the science of health. And I often stand here and talk about sustainability. Let us do things sustainably. Let us run our climate sustainably, let us run our economy sustainably and let us run our health, our health services and our individual health, sustainably, rather than just coming back to these 1950 styles of thinking, where, ‘Oh my God, I could never do that. We didn’t do that in the 1950s, so how on earth could we do that?’ And this is the point of this bill.

Members interjecting.

The ACTING PRESIDENT (John Berger): Order! Mr McIntosh, you have got 36 seconds.

Tom McINTOSH: Excellent. The whole reason for this bill is the fact that this government took action on climate change, set a plan and set targets for business, for community. We led the nation when there was no other leadership, and the results of that are right here. New technologies have emerged and new businesses and new skills are needed and therefore we are legislating, we are regulating and we are setting up industry to clearly understand what is required of them and ensuring worker safety and ensuring our community get clean, affordable power.

Gaelle BROAD (Northern Victoria) (14:42): I rise to speak on the Energy Legislation Amendment (Energy Safety) Bill 2023. The growth of technologies and new technologies – it is important with renewable energy storage – has now exposed gaps and weaknesses in the energy safety legislation framework. So the bill seeks to address some of these changes and makes updates to various acts – the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005.

My son is training to be an electrician, so I am very supportive of safety in this sector. I think it is extremely important. But I am also pleased to say I am very supportive of renewables; I have solar on the house roof, and the bill is exceptionally good come summer, not so good come winter, but yes, I am very supportive of renewables. But our power bills keep going up and up and up. I was speaking with a local businessperson just recently, and he was saying what a significant increase he has had in his electricity bills, along with his WorkCover bills, thanks to this government. He is really struggling in business at the moment. For locals that I speak to, they are concerned when they get their power bills as well, and it is not going to get any better very soon. The Essential Services Commission has confirmed that Victorians will suffer a further increase of 25 per cent in power prices, and that is an average increase of $352 for households and $752 for small business. And a recent report found that Victorian households suffering financial hardship and struggling to pay their energy bills have average utility debts of $2500, so it is very difficult for people to be able to pay and afford their electricity bills now.

The power saving bonus – the government over recent years has spent millions and millions of dollars on this program, but it is only providing temporary relief, very temporary relief. It has really won people’s votes – they are trying to win their favour – but it is costing millions of dollars and providing a short-term fix; it is not delivering more secure and reliable energy to reduce power bills.

Speaking with neighbourhood houses, there has been a lot of pressure on them to work with people in providing the power saving bonus. I do encourage people, if they have not, to apply. It does provide some temporary relief to your bills, but applications close on 31 August. The neighbourhood houses did mention that they are put in a difficult position by the government in talking to people about their bank details – ‘Trust us. Don’t trust anyone else.’ I have been alerted to some scams just recently, and I think the government really needs to look at how they deliver these programs to make sure that people are not put in very difficult positions.

The government has made very big promises when it comes to renewable power and power generation in this state. It has certainly been in power for a long time, but it does look like we have had a lot of policy on the run. I am not sure how they are going to stack up in reality, some of the promises that have been made. Government has promised to generate 95 per cent of electricity from renewable sources and that 6.3 gigawatts of battery storage will be connected to the grid by 2035. Before the last election Labor talked up the revival of the SEC and publicly owned power and promised to build 4.5 gigawatts of publicly owned renewable energy generation, but it was revealed to the Public Accounts and Estimates Committee that there is no limit on foreign companies bidding for SEC money. So far the SEC employs 29 people located in Melbourne, when we were told before the election the SEC would create 59,000 jobs. I think it is worth pointing out too, as Danny O’Brien, a colleague in the other house, has pointed out, the importance of private sector investment in this space. But we are seeing many challenges in this space.

It looks like we are going to have a very bumpy ride with the transition to renewable energy. Hazelwood has already closed. Yallourn is due to close in 2028 and Loy Yang A by 2035. My colleague Melina Bath has spoken about the impact of lost jobs in the Latrobe Valley and how significant that is, and I know Martin Cameron in the lower house has been a strong advocate for the communities there.

The Star of the South, Australia’s most advanced offshore wind project, has not even started construction. According to their website they are currently applying for a feasibility licence to develop the project and they hope to be operational by 2030. Then the first Big Battery to be built at an Australian coal site recently opened at the former Hazelwood power station. It is just 150 megawatts and has the capacity to power 75,000 homes for 1 hour during peak periods. Melbourne has 2 million homes, and it is growing.

The Victoria to New South Wales Interconnector (VNI) West project, again, is due to be completed by 2030, but still lots of homework is to be done. The original plan was to update the existing 220 kilovolt line from Ballarat to Kerang via Bendigo, but out of the blue they have circulated various new plans. They talk about plans on the other side of the house. They were just mentioning a variety of different plans, but I will say I think we are up to plan number nine for the proposed route with this one.

Evan Mulholland: Quite a few plans.

Gaelle BROAD: There are quite a few different plans that seem to be confusing people, and that is significant when you are trying to work with local communities. People do not know where the path is. We are looking at huge – 500 kilovolt – double-circuit overhead transmission lines across valuable agricultural land. These are massive 80-metre-high towers. When you are thinking ‘How tall is 80 metres?’, I want you to think of being at the footy and looking up at the MCG lights, because that is the height of the proposed towers across regional communities in northern Victoria, with miles of high-voltage cables stretching between them.

The community consultation has been extremely poor. Communities have been just notified, told, given brochures instead of being consulted with properly. I went to a session in Wedderburn that was convened by the Loddon Herald, and it was the first time that the Australian Energy Market Operator actually attended a forum to take some questions from the floor. I also went to another forum that was in Charlton in the first week of July. They had quite a number of staff there, about 20 different staff, all answering questions at different tables, which was very good. Then they had another room. People went into the other room, and a group of them came in at the same time. I asked if I could please go into that room to hear the information that was being shared. They said no. Three times I asked; three times I was told no, for safety reasons I was not allowed in there. But it was clear that they were not permitting people to get together; it was more direct contact with individuals. I think that is very concerning. We certainly had a big crowd gathered out the front today.

The information that has been delivered has not been accurate. The landholder booklets and information also had wrong information in them. Some of them have already gone out to residents, and they have already been making decisions based on potentially inaccurate information. I know the federal government has also been concerned and has asked for a review of information. So there has certainly been policy on the run. Transmission Company Victoria got created – similar directors, hard to differentiate. But it has not been done well at all.

The VNI West: I have asked the minister – I have raised it in the house recently – to provide the latest costings and the business case for this project, because we are talking hundreds and hundreds and hundreds of kilometres of these 80-metre high transmission towers. I have seen costings of about $3 billion, but there is a lot of cost in developing a project like that. The minister has used powers to fast-track VNI West, and they are just powering ahead without proper community consultation or consideration of the actual cost. Despite this, landowners within 1 kilometre of the preferred route of the corridor have already been contacted.

I was just outside earlier. We had the rally out the front that had been convened by a number of different people.

A member: I was there too.

Gaelle BROAD: Yes, many of our colleagues were there, which was fantastic. It was great to have David Littleproud, the federal Leader of the Nationals, speaking and also Anne Webster, who has been very active and committed. Emma Kealy also addressed the crowd there, which was wonderful, and it was great to see Jade Benham, who has also been a strong advocate, along with Joe McCracken and Bev McArthur as well.

A member interjected.

Gaelle BROAD: No, I believe the member for Ripon was not there, which is very disappointing, because these lines are going right through that electorate. Residents are very concerned about the impact of these proposed lines. There is a huge impact on agricultural land, and they have raised numerous concerns. We all heard from a number of people out there today, from Glenden, from Bill and from Jason. Bill and Jason are both sixth-generation farmers and talked about the importance of food security. I think that is definitely something worth considering. Thinking about being proactive, they also shared today at the front of Parliament a different proposal, a different option to the current VNI West that they have put forward. It is a paper written by Bruce Mountain, Simon Bartlett and Darren Edwards. It is called No Longer Lost in Transmission: Expanding Transmission Need Not Be at the Expense of Land-Holders, Renewables Investors, Communities, Consumers and the Environment. This proposal that Emma Kealy referred to talks about utilising existing easements to maximise the electricity transmission and increase capacity. The Nationals really want the government to consider this proposal through an independent analysis, to look at the merits of this. A lot of thought, a lot of research has gone into this by professionals in this space, and we do want the minister to consider this proposal.

I think when we consider energy production in this state we also need to think: are we dependent on energy produced in other states and headed for blackouts and even higher bills? Victoria is very fortunate to have access to so many different sources of power generation, and it is important in any analysis, I guess, to balance the risk and reliance on different sources of power. Energy is a big issue in Victoria, and our families and businesses, with our current cost of living and soaring energy bills, are really suffering. Over the last decade we have seen under Labor electricity costs double, the closure of coal-fired power stations, a ban on the exploration of new gas supplies and just recently another restriction – they do not want new homes to have gas either. Well, other states have been very quick to rule that out, which just shows you Victoria is quite alone in some of the decisions it is making. We cannot just rely on other states and countries to meet our needs. Victorians deserve secure and affordable energy. The state government needs to increase Victoria’s energy supplies and fix the issues in our transmission network to reduce energy prices and the cost of living. I only hope that Victorians make the switch to see a change of government in 2026.

This bill does amend various different acts, as I have mentioned, to strengthen the energy safety compliance framework in the network. We support this bill to modernise the framework, because that is what needs to happen in the energy sector.

Michael GALEA (South-Eastern Metropolitan) (14:56): I rise today to also speak on the Energy Legislation Amendment (Energy Safety) Bill 2023. I do want to acknowledge the contributions from all previous speakers, including you, Acting President Berger, Mrs Broad and Ms Bath, and others on this side as well – a very impassioned speech we had from Mr McIntosh, which was very exciting to listen to, as always. In fact it was wonderful to hear Mrs Broad comment on how our reforms in the field of gas are nation leading. I think that I could perhaps misinterpret that as a compliment, because I know they have been very well received in many quarters, and they are very well received in fact because we are leading the nation in this reform.

It was very good to see commentary on those matters in what is a relatively narrow bill today that we are speaking on but a narrow bill that has a very significant impact. That is because fundamentally this bill is about two things: this is about sustainability and this is about safety. Crucially the implementation of the measures in this amendment bill will mean that as we adapt, as we continue to transform our state’s energy infrastructure network and industry altogether, we actually are doing so in a way that is safe. Other speakers, including Mrs Broad, have commented on the stability of our energy sector, and that is something that is very important as well. This bill is a very important part of that. I was speaking to a colleague just before, who was telling me about an incident in their street with regard to an electrical fault, and a tradesperson ended up injured as a result of electricity. It is a very important thing that we do get this right. This is quite a straightforward bill, and it is good to see broad support for the bill itself.

Of course what the bill is about is that when technologies change, the legislation and the regulation need to change with them. Our emphasis is clear: we are dedicated to making Victoria’s energy grid safer, more secure and more sustainable. The road ahead is varied and complex, and there are many exciting initiatives going on. There are many things going on at a broad level too to make that happen, and others have spoken on this. Whether it is the Port of Hastings, the Victoria to New South Wales Interconnector or other measures such as the gas reforms as well, every one of those reforms is a really key step in this.

We are actually at the forefront of the renewable energy push in this state, and we have been for quite some time with the targets we have had in place. It is important that we drive that investment, and through the SEC we will be seeing even more investment. As Mr McIntosh referenced earlier too, it means more jobs, more trades and more skilling up in these sectors, and as we do that, we are encouraging new technologies. They are getting better day by day. It is really, really vital that we actually keep the legislation in line so that we can continue to have a safe and secure energy network for all Victorians. As I say, it is just an example of responsive legislation, responding to the changing circumstances, and it is good to see these reforms come through.

The reforms will also strengthen the safety compliance framework in part by increasing obligations for some electricity providers and companies on those new technologies where applicable, which includes owners and operators as well. Effectively this is matching the new technology safety provisions up to what we already have in our existing network, so it is nothing new or radical in that respect. Again, as I say, it is just adapting existing structures into our new transformed model. It will also provide Energy Safe Victoria with an enhanced enforcement toolkit to provide more effective regulation of this field in what is a very transformative and changing time. Safety is paramount. It is our duty to ensure that this sector operates under these higher standards. The stringent measures in this bill, especially regarding those higher risk installations, are a testament to this government’s commitment to no stone being left unturned when it comes to safeguarding the lives and property of Victorians as we do this transition. Whether it is from the big players in energy generation or right through to smaller providers, this is a bill that will update and hold everyone fairly and equally to these elevated standards.

The companies operating at the peak of our energy sector – those involved in large-scale electricity generation and storage – all play a pivotal role in shaping our energy landscape. They are essential for our future energy needs, and as such it is really important that they do exemplify the highest standards of safety and efficiency. This bill helps to further delineate the roles, responsibilities and expectations for these industry giants, ensuring that they align with our vision for a secure and more sustainable energy future. The Energy Legislation Amendment (Energy Safety) Bill 2023 signifies our continued and unwavering commitment not only to learn from our past but to pave a safer, more sustainable path forward. Through this bill we are taking decisive action to ensure that Victoria remains at the forefront of this energy transformation.

Furthermore, this bill, as other colleagues have noted, will amend the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 to boost the broader energy safety compliance framework. The bill will make amendments to allow the Governor in Council upon a recommendation of the Minister for Energy and Resources to declare certain electricity installations to be of a class to which certain duties and obligations will apply. It also makes amendments to the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 in respect of the civil penalties, increasing them up to sixfold from previous amounts. I note that the penalties in those various acts have not been updated since 2007; 16 years on seems like a very timely opportunity to take advantage of this bill to adapt those penalties as well.

Taking a step towards a safer and more sustainable energy model will be able to be done while costing less than $1 million extra annually. Considering the increased safety and peace of mind that the Energy Legislation Amendment (Energy Safety) Bill 2023 brings, it is clear that this bill is unlikely to bring significantly undue impacts of costs. To fund the oversight, regulation and enhancement of our energy safety, Energy Safe Victoria has laid out its various levies over the next couple of years. I note that the increase for next year will be in the order of 31 cents for the year. While these figures are a nominal increase, they are relatively speaking quite low, quite proportional and quite reasonable given the outcomes that we will be getting through this legislation. Furthermore, through the passage of this bill and its implementation we will see an enhancement of the capacity to investigate and address safety concerns promptly and efficiently, as we all expect the regulator to actually do. This will ensure that potential hazards are mitigated before any harm occurs. Whilst there are small costs involved, the returns on this in the order of a safer, more secure energy network really speak for themselves.

Our commitment to a greener future is evident in our push for new electric alternatives. Recognising that one of the best ways to reduce our household greenhouse gas emissions is the transition towards all-electric homes, we have brought in reforms that will come into effect from the start of next year with regard to the implementation of gas services to new-build houses. Broadly speaking, there are three reasons that we are doing this. The first is of course environmental. Transitioning to electric homes will make a huge difference towards our goal of 95 per cent renewable energy by 2035 and achieving net zero emissions by 2045. This will be, as I said, one of the most significant steps that we can all make in our households in this transition towards cleaner, greener renewable energy. There will be financial savings as well, though, once implemented. Without having to rely on dual connections and by having that single electricity connection, residents will be able to expect a typical saving of $1000 per year on their bills, and of course, added to other initiatives, such as rooftop solar, those savings will be able to compound to up to $2200 per year. The residential electrification grants program, which we also have in place, will allow Victorians to save $4600 on up-front costs for solar photovoltaic systems and hot water. And the third part of it is for health and wellbeing. As Mr McIntosh talked about, we have to listen to the science.

I note that Ms Bath in her contribution earlier, or perhaps it was an interjection, said that she will never, ever, ever, ever use an electric cooktop. I have got to say – and it is disappointing she is not in the chamber presently, but I am sure she is watching with close attention – it is something that has definitely changed over time. I can certainly recall it about 12-odd years ago in one of my first rental houses. I know some in this chamber like to announce every time they speak on this subject that they are or have been renters. It is not normally my practice to talk about that, but as someone who did rent for several years, I have had many different houses and many different types of cooking appliances, whether gas or electric. I have got to say the first house I had back in the day had an electric stove top. It was a little portable unit, and frankly it was absolute rubbish. It did colour my view for a bit, but I have got to say I have seen a lot of friends and family members who now have installed up-to-date electric systems – electric stove tops, induction – and it is quite remarkable. It really is actually just as good as if not possibly even better than gas.

Nicholas McGowan interjected.

Michael GALEA: So we have come a long way from the dingy little electric stove top that I was using in my flat in Clayton back in 2011, Mr McGowan, and it is as part of this change that we are delivering this. I know those on the other side might say ‘Pah!’ and whatever else and not be willing to embrace it. That of course is no surprise, because we have seen that time and time again. They are not prepared to adapt to the technology, not prepared to adapt to change and not prepared to adapt to the 21st century, and this is yet another example of that. I invite my colleagues on the other side of the house to go check it out. I am sure that at least one of your friends or family members would have one. Go and try and use it for yourself. It really is not that bad. Once you get the hang of it, it is actually a pretty good way to cook. I am also looking forward to the day when I can upgrade my current stove at home to an induction cooktop as well.

Nicholas McGowan interjected.

Michael GALEA: You know what, Mr McGowan, when I do, you will be the first I invite around. We can cook together. You know what, Mr McGowan, I will put on sausages for you. We will do them on the induction, and we will have proper Victorian tomato sauce to serve with them. I know that is a real passion project for you, Mr McGowan. It will taste delicious, just as it would if it were done on a gas frypan as well.

It is a really important initiative as part of our ongoing commitments. It has been the source of some commentary in previous contributions, so I think it is worth mentioning in my contribution here today as well that despite the doom and gloom and in fact despite the calls for a gas-led recovery by those on that side, I do not think we have had anyone brandishing pieces of coal in this chamber. I think we can at least thank you for having some relative sense, as opposed to the federal member for Cook, who was waving around his piece of coal like it was a shiny toy. That might be emblematic of the Liberal Party’s attitudes, but I hope that those in this place in this Parliament would not be quite so backward.

Nevertheless, perhaps my optimism is misplaced because we have seen those on the other side apparently committing the opposition to reversing this new initiative, the new gas policy, should they win the election. Good luck explaining to Victorian voters how you are actually going to take climate change seriously, because despite the protestations from your so-called moderate members and so-called moderate Leader of the Opposition as they are going on ABC radio and in the Age talking about how wonderful and modern and progressive they actually are, the truth is, just as with every other policy, you are going to take us back to the 20th century – back in terms of transformation into renewable energy and back to another Liberal government of cuts, cuts, cuts. We all know what to expect. We have heard commentary over the last few weeks from members opposite about what they would do on this particular policy, and I am afraid that is what we have come to expect from them. One thing that it is very good to see some bipartisan support for, though, is of course the government’s power saving bonus program. I will join my colleague Mrs Broad –

Nicholas McGowan: I never said that.

Michael GALEA: You did not, but others have, Mr McGowan. I will join my colleague Mrs Broad in absolutely encouraging everyone who has not yet put in an application for the power saving bonus to do so. We have just over two weeks now until 31 August, when that program does come to an end for its current, fourth round. I am delighted to say that 1.7 million Victorians have already claimed through this program. It is a really, really vital investment to support households with their cost-of-living issues. As well as that, part of that 1.7 million people – half a million people – actually took advantage of the program to look at changing their providers and did change their provider to get onto a cheaper rate. It is a terrific initiative, and again I do encourage all Victorians and all my constituents ‍– I know many of mine have already been very happy to – to take advantage of it. Of course anyone in the community can reach out to their local representative, and we will be more than happy to help them with that process.

As I wrap up, there is a lot of initiative and a lot of reform going on in this space, because of course on this side of the house we are the ones who actually deliver the reform and the transformation of our electricity future into cleaner, greener and more reliable networks, and in doing so, this bill will make sure that our safety is not compromised as we embark on that journey.

Sonja TERPSTRA (North-Eastern Metropolitan) (15:12): I rise to make a contribution on the Energy Legislation Amendment (Energy Safety) Bill 2023, and I am really pleased to do so, because this is an important bill. We know that it will modernise Victoria’s energy safety legislation framework to improve community and worker safety, something that we know is critically important to this side of the house. It will also create more effective and targeted regulation of new and emerging safety risks that are posed by emerging technologies as the state undertakes a rapid energy transition to renewable energy. As everyone in this house will know and certainly as everyone in Victoria understands, this government is wasting no time in the transition towards renewable energy – energy that will come from cleaner sources. That is a key plank of this government’s commitment to reducing carbon emissions, and I am proud to be part of a government that is working so hard on delivering that important reform.

The reforms will also strengthen the safety compliance framework by increasing obligations for electricity and gas companies, including owners and operators, and this legislation gives the ESV the legislative power to compel owners and operators of critical and complex installations such as batteries to reduce safety risks prior to energisation. The bill ensures newer technologies like batteries, wind farms and solar farms are held to the same standard as existing generation and network technology. As you can see, this bill is necessary because we need to keep pace with the changes of an evolving industry. Where we have new technologies, we also need to make sure that they are safe and comply with relevant safety standards. The reforms also provide Energy Safe Victoria with an enhanced enforcement toolkit to effectively regulate the transforming energy sector. At the election we committed to a comprehensive review of energy safety legislation for the long term, but these proposed reforms are a good first step, representing a range of quick wins. This bill will help ensure the safety of workers and communities as we continue with our journey and transition to a renewable energy future.

I had the benefit of listening to some of the contributions earlier, and I note Mrs Broad said that her son was going to be training to become an electrician, and I am also pleased to say that my daughter is looking forward to training to become an electrician as well. She will be undertaking her cert II towards the end of this year in October – of course the cert II is on the free TAFE list – which is going to be provided by Holmesglen TAFE. I am very pleased and proud that she will be doing that. I know that she will be trained in electrical safety as well as part of her ongoing education once she becomes an electrician. I know she will be looking forward to working as an electrician and being part of this transition to renewable energy, and it is something that is really exciting. I know a lot of younger people are passionate about the environment, and they are concerned about reducing our carbon footprint and reducing greenhouse gas emissions. Being able to work as a sparky, perhaps work on installing solar panels or even maybe work on a wind farm would be something that would assist young people in combining those two passions. In my family I now have a son who is an apprentice plumber and potentially a daughter that will be an electrician, so I reckon I have got my house renovations all covered there and will be saving quite some significant sums of money whenever we decide to undertake those sorts of renovations, because they are pretty expensive, bathrooms and electrical. Anyway, there we go. As I said, worker safety is pretty important, and this bill does a range of things. But of course ensuring that communities are safe as well as part of any transition and making sure that the new infrastructure is also held to the same safety standards as our old infrastructure are very important.

Victoria is leading the nation when it comes to energy transitions. We are undertaking one of the fastest transitions in the world, and we have more than tripled our share of renewable energy in power generation in just eight years. That is no mean feat, and this has been helped in large part by nearly a quarter of a million Victorian households installing solar panels on their rooftops, reducing bills and giving them control over their energy. I know one of the great things about when you install solar panels on your roof is you get the technology, whether it is a phone app or something on your computer, and you can actually log in and see the energy generation. I know we used to look at that when we had the old meter where the disc used to spin backwards. We used to have to go to the box to look at that. But now that it is all connected up in a technologically savvy way we can either look at it on our phone or look at it on the desktop computer and see the solar power that we are generating at particular times of day, and of course at different times of the year you are going to generate more power than others. It is an amazing thing, so we love that.

As I said, nearly a quarter of a million Victorians have installed panels on their rooftops. It gives them control over their energy and a great ability to see what they are using and when. You can look at what you are using and when and look at peak and off peak and those sorts of things, so you can actually structure when you use your appliances. For example, if you look at when electricity is peak or off peak, if you are running a dishwasher at peak times, you are obviously going to pay more for it and things like that. There are people in my street who I know are retired, and they go to great lengths to look at all these sorts of things about when to put the heating on and when not to. We know that there are important cost-of-living measures that our government have introduced to assist people with managing their electricity bills, and I know the contributions of many on the government side today have talked about some of those things as well.

We held the Victorian renewable energy target auction, the country’s largest ever reverse auction for renewables, and we have installed the Victorian Big Battery, the largest in the Southern Hemisphere, and made Victoria the home of the Big Battery. That is amazing. We may not have the Big Pineapple, but we have got the Big Battery. We love that, because our credentials in moving to a fast transition to clean energy are very obvious and apparent. Through those auctions we have reduced greenhouse gas emissions by more than any other state in Australia since 2014, and we are enormously proud of that.

But we have only just begun, and wait, there is more, as the saying goes. We have comfortably surpassed our 2020 renewable energy target of 20 per cent, and we have increased our 2030 renewable energy target from 50 per cent to 65 per cent. We know we have got the capacity to do more, and we are doing more. We have set our 2035 target of 95 per cent, so we are setting a cracking pace. We are not wasting a minute. We are getting on with it. The target will be backed with separate targets for offshore wind and energy storage, and I know as the chair of the Environment and Planning Committee when we did the renewable energy inquiry we were looking at things like the Star of the South wind farm, which is an exciting project. Who would have thought actually that the Bass Strait – I know it is not in the Bass Strait; I know it is off East Gippsland. Bass Strait is one of the windiest places in the world, so we have got great capacity to generate and to look at lots of different forms of wind.

What we know is that inquiry heard from a range of stakeholders. But it also heard how important the transition to renewable energy has been through the uptake of rooftop solar. That has been a really incredible contribution to our targets, and we thank Victorians who have embraced that wholeheartedly by moving to take up any opportunities to have rooftop solar and to avail themselves of any rebates that they may have been eligible for. It is great. You can see the power of community – what happens when people embrace those things that are made available to them. People certainly do want to reduce their carbon footprint and emissions and are doing that whenever they can.

We will have at least 2 gigawatts of offshore wind by 2032, 4 gigawatts by 2035 and 9 gigawatts by 2040, so as you can see, there is enormous capacity to do more, especially with wind. And to support this increase in renewable capacity we will have at least 2.6 gigawatts of storage capacity by 2030 and at least 6.3 gigawatts by 2035 – again, enormous capacity, and we keep working on building that capacity. We have brought forward 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, and this is why we need to make reforms.

This is nothing short of the most fundamental technological transformation of our lifetimes, and it is pretty exciting to see it happen. It means more jobs, cheaper energy and cleaner air, which is going to benefit everybody, especially people who may have underlying health conditions. Breathing cleaner air is always a bonus, and so is cheaper energy, and I just touched on that earlier. People who live on fixed incomes like the pension are the ones who are most vulnerable to price increases, and we have seen massive price spikes in the cost of electricity, for example. Why? Because it is private electricity companies who can rake in the profits, jack up the prices and take those profits offshore. And this is why bringing back the SEC will be amazing, because we know that an essential service like electricity should never have been privatised. It was a failure of a previous Liberal government that that occurred, and it has taken this long to unscramble that egg. I know that so many people cannot wait to see that happen, for us to bring back the SEC, because I know people are going, ‘We can’t wait, because we want to buy electricity from the government, because it’ll be cheaper and all the profits will stay here in Victoria rather than seeing them go offshore.’ So I cannot wait for that to happen, and I will certainly be looking forward to becoming a customer of the SEC. I cannot wait to purchase my electricity from that, and I know so many other Victorians will also be doing the same.

It is important to understand that privatisation is a failure, and that certainly is no more demonstrable than in the electricity market. What an abject failure that has been, and it has cost Victorians so much money – millions and millions and millions of dollars in profits that have just gone offshore to large multinational corporations. What a shame that it is. But isn’t it great – and I know Victorians are thanking us now for bringing back the SEC. I cannot wait to see it unfold, and I look forward to seeing that story continue.

Another important aspect of this bill is to ensure the safety of workers and communities – and I touched on this earlier. The amendments that are in this bill will also align the energy safety obligations of renewable energy companies with those of traditional companies and strengthen the investigative and enforcement powers of the independent safety regulator, Energy Safe Victoria. And look, recent incidents highlight the urgency of these amendments. Two serious fires in 2021 at the Victorian Big Battery and the Cohuna solar farm highlighted the limitations and that Energy Safe Victoria must regulate facilities such as solar farms and battery installations. So you can already see that there are examples that highlighted these limitations. Energy Safe Victoria was unable to intervene or regulate these sites until the fires had occurred. So it took some really unfortunate accidents to occur before ESV was able to get some kind of jurisdiction over them. We do not want to see those circumstances happen again. We want to make sure that Energy Safe Victoria has the capacity to investigate any concerns before these incidents occur.

Over the past two decades the electricity sector has been replacing carbon-intensive generation with zero-carbon technologies. The sector is moving away from having a small number of large-scale facilities that have historically been owned and operated by a handful of companies towards being a more decentralised and widely distributed electricity generation industry.

I have got 2 minutes on the clock, and I know time is going to beat me, because there is so much I could say about this piece of legislation. It is so critically important. I have touched on some of the safety aspects, and I will not be able to talk about energy and climate action, but I know some of my colleagues talked about that a little bit earlier on. We have done so much in this space, as I said. I touched on a little bit of that earlier in my contribution. This is an important bill, as I said. It does a range of things, not least improving worker safety and protections, which we know is critically important.

I might just talk about the record of those opposite, though. I have saved the best for last, even though I have only got a minute and a half to go – but nevertheless. We are unapologetic on this side of the house about the safety regime. With every project, every powerline and every solar panel, we need to make sure consumers and the community are safe. Those opposite do not care and cannot be trusted with our energy system, and that is why on this side the government are getting on with these important reforms. They let private energy companies run rampant, they privatised our energy system and failed to reinvest and invest continuously in renewable energy or to support Victorians to take up solar. Victorians paid the price with soaring energy bills, and that is why on this side of the house we have made sure we are giving important cost-of-living relief to communities and we are making it easier for people to put solar on rooftops. Retail electricity prices, when those opposite were in government, increased by 34.1 per cent under the previous Liberal government – quarter 4 in 2010 versus quarter 3 in 2014. It is irresponsible management of our energy system which hurts people, and we know we have vulnerable people in our community who are on fixed incomes and cannot simply absorb these exorbitant electricity price increases. Since 2014 – in the 20 seconds I have – the Liberals voted against or tried to gut the following energy bills: the Climate Change Bill 2016, the Renewable Energy (Jobs and Investment) Bill 2017, the Renewable Energy (Jobs and Investment) Amendment Bill 2019 and other energy legislation. As you can see, those opposite have no commitment to renewable energy or ensuring a safe energy sector. I commend this bill to the house.

Evan MULHOLLAND (Northern Metropolitan) (15:27): Can I say thank goodness for the clock. I am keen to speak on the Energy Legislation Amendment (Energy Safety) Bill 2023, and I want to start by pushing back against Ms Terpstra’s comments about privatisation and perhaps give her a history lesson on the subject of electricity. If this was an education bill, I would be able to run through and give her a history lesson, because I would like to just point out – and you can actually check Hansard to find this out, Ms Terpstra – it was actually just 30 years ago that the government of Joan Kirner began the privatisation of power assets when they sold 51 per cent of Loy Yang B in 1992. I ask Ms Terpstra – I note she has now left the chamber – and others to perhaps look up Hansard. Go to the Parliament of Victoria website, check Hansard yourself and you will find it was the government of Joan Kirner that sold our power assets – 51 per cent of Loy Yang B – and began the stages of privatising the SEC. Ms Terpstra and Labor – many of them – have spoken about ‘nasty Liberals and their privatisation’. If they hated the Kennett privatisation so much, why did the Bracks and Brumby Labor governments do nothing to reverse that privatisation? I wonder: why was it? Perhaps because Victorians were reaping the economic benefits of that agenda. I think that is why. And also on their history of privatisation, as was mentioned, I remind Ms Terpstra and I remind those opposite that Labor actually has a really proud record of privatisation – a really proud record that they should be proud of. Labor of course sold the State Bank to the Commonwealth –

Nicholas McGowan: Paul Keating.

Evan MULHOLLAND: to Paul Keating, who then flogged it off to the Commonwealth Bank, so you have got a double agenda of privatisation. And who can forget the Gillard government? That Labor government actually sold the last of the Telstra shares. They privatised the last of Telstra. They finished the job, that good Labor government! I know they really, really hate privatisation, but it was actually this Andrews government that leased, for $9.7 billion, the Port of Melbourne in 2016 to pay for level crossing removals. They almost needed to get double the price to pay for what the blowouts have been on the level crossings, but they did that. That is a great Labor privatisation legacy! There were others as well. How about the sale of the Land Titles and Registry office in 2018, which the Victorian Treasurer described as an outstanding result. The Premier and Ms Terpstra seem to have a different view. In 2018 they sold our share of the Snowy Hydro scheme.

Nicholas McGowan interjected.

Evan MULHOLLAND: Mr McGowan, they even privatised Federation Square actually, and of course there is the partial privatisation of VicRoads – a 40-year deal for $7.9 billion.

We see a lot of that on the other side. They will scream about privatisation. I know in New South Wales, when Mike Baird sold the poles and wires, there was an enormous campaign from the Labor Party and the trade union movement about the selling off of poles and wires, but then when it came out, the mechanics of actually selling those poles and wires – who bought those poles and wires? That would be the industry super funds, with former Labor figures on the boards of those funds. So they yell across the chamber and say how much they hate privatisation and how those nasty Liberals are privatising everything, but deep down in their Labor roots, they love privatisation. Ms Terpstra should check Hansard about Joan Kirner and the legacy of Joan Kirner and also should realise, as members opposite should, that privatisation runs deep and rich in the history of the labour movement and Labor governments, and they should be absolutely proud of that.

I want to touch on the gas ban that this government has announced, because it is quite concerning. It is absolutely quite concerning, and we heard members opposite talk about our position on the gas ban, that we will oppose it. Absolutely we will oppose it, and we will absolutely, when we come to government in 2026, repeal it, because it is removing choice from Victorians. I implore Labor members – perhaps the Labor member for Northern Metropolitan sitting across from me – to go out and speak to their communities. I have certainly had a lot of feedback, particularly from my Indian community in the outer north, from people worried about not having a gas connection.

Nicholas McGowan: What about the Chinese community?

Evan MULHOLLAND: The Chinese community as well. It is really concerning that Labor would seek to remove this choice from Victorians, and particularly Victorians in growth areas in the northern suburbs have been reaching out to me, really concerned about this development from Labor. The Andrews government has not shown how it would fully replace baseload gas with renewable energy, and the Andrews government is once again taking choice out of the hands of Victorians. Victorian homes are reliant on gas for heating and cooking, and to ban gas connection is a short-sighted and misguided policy. Around 80 per cent of Victorian homes are connected to gas. New home buyers should not be punished for Labor’s flawed agenda.

It is funny seeing the other Labor premiers react to Daniel Andrews’s thought bubbles to take his own government’s stories off the front page, because almost immediately you had the New South Wales Premier saying, ‘No, no. We won’t be doing that – absolutely not,’ because they seem to have a little more common sense than this Labor government. He actually said that New South Wales does not need another complication with its energy mix. Previous government studies show that the Gippsland and the Otway basins are a vast source of natural gas and onshore gas. Our energy mix in Victoria is far from stable and plays a critical role in keeping the lights on. And can I point to one of Australia’s leading climate scientists, Dr Alan Finkel, formerly Australia’s chief scientist. He has been clear that gas will and should remain one of the nation’s key energy sources. Maybe this is why he quit as an adviser to the Labor government’s SEC, because of the government’s short-sighted agenda of ruling out gas and demonising natural gas, which is demonising, I think, the choices Victorians make for themselves – the choices Victorians make for themselves to keep themselves warm, the choices that Victorians make for themselves on using a gas stovetop.

I have lived in a lot of places in Melbourne’s north across my lifetime. I have lived in apartments before with electric stovetops, and I know and Victorians know it is just not the same. It is just not the same. While it will still cook eventually, sure, it does not cook to the magnitude that people expect and people deserve, and I do not think we should be punishing Victorians in growth areas for their short-sighted agenda to pursue this flawed plan. Why are you punishing everyone in those growth areas in the northern suburbs and in the south-east by them not having gas while everyone else can? The minister certainly needs to explain this further. The minister needs to be clear about this gas ban and the impact it will have. I know she is rather busy at the moment with other matters –

Nicholas McGowan interjected.

Evan MULHOLLAND: but I certainly know, Mr McGowan, that the people of Mill Park are very interested in this policy and the people of Plenty are very interested in this policy and the people South Morang are very interested in this policy because they know and they use lots of gas stoves for their cooking.

I have been to lots of multicultural events recently – up in Craigieburn, up in Kalkallo, up in Greenvale ‍– and I tell you what: this policy has gone down like a lead balloon. I will tell you what policy has gone down well: the Liberals and Nationals commitment that we will repeal this gas ban when we come to government in 2026. Comments I have had are that it is common sense. ‘Why are they doing this? Has it gone through yet? When are they banning it? I’m moving in a year’s time to a new home that I’m building, is that going to be not able to have a gas connection?’ Also, for those advocating new measures for renewable energy, this is not a good policy for you. The state government is investing money in hydrogen and hydrogen research, and the only way that could be delivered to households is through gas pipes, existing infrastructure. So you are going to have a situation where new home builds will not be able to have that connection and will not be able to have access in the future to the possible use of hydrogen. This is the kind of flawed approach taken by this minister and this government in regard to this ridiculous gas ban.

I note members opposite were talking about electric vehicles as well and pumping that up. I have not met a single working-class person in my electorate that can afford an electric vehicle. In prebudget debates when we were talking about the Andrews government record debt it was put to me, ‘What would you cut?’ I actually came back to the chamber with a list. I spoke about fishing rods. I spoke about a few other things – a diversity and inclusion director at the Suburban Rail Loop Authority that was getting almost $300,000 a year. I also talked about the $3000 subsidy for electric vehicles as a suggestion, a helpful suggestion, saying I do not think we should be subsidising $3000 off when the average price of an electric vehicle is around $70,000. I have not met any working-class people in my electorate that can afford that. Happily, I was very glad to see the Andrews government made the decision to cut that subsidy. They actually, I hope, took up my suggestion of cutting that subsidy. They all say they are committed to electric vehicles, but they place a tax on electric vehicles and then they remove the subsidy from electric vehicles. I think it is another example that we can see of how hollow their actual words are and how easy it is to actually pull them apart on what they say here in the chamber.

People are doing it incredibly tough at the moment. I know in my electorate people are really feeling the cost of living, and that is not helped by new taxes. I think we were up to almost 50 since 2014 since the Premier said to all Victorians that there would be no new or increased taxes under his government. Before the last election he actually said the same thing. But we have seen new tax after new tax after new tax after new tax, which is making life harder for Victorians. The Essential Services Commission has confirmed that Victorians will suffer a further increase of up to 25 per cent in power prices and an average increase of $352 for households and $752 for small businesses.

They all talk about their power saving bonus, and it is great that people get that money back, but that money is not making up for the continued increases we are seeing in power bills. The Andrews government does need to accept some responsibility for that. It does need to accept some responsibility for its flawed transition, its flawed approach to gas. I was very happy to be on the front steps of Parliament today speaking to people who are actually affected by Labor’s transition, because their transition seems to be all about transmission – transmission through farmland that will destroy good agricultural land that puts food on the table. These people are rightly concerned about that.

Jacinta ERMACORA (Western Victoria) (15:42): Acting President Galea, may I take this first opportunity to congratulate you on your appointment.

I am pleased to speak on this bill that makes changes to Victoria’s energy safety legislative framework, modernising it to improve community and worker safety. This legislation provides the regulatory mechanism to ensure that energy safety is maintained and enhanced as we transition to new technologies. New energy technologies have exposed critical gaps in risk management in the energy sector in this state. This bill will create more effective and targeted regulation of new and emerging risks that come with new technologies and in particular those posed by renewable energy technologies.

Victoria’s journey to carbon neutrality is well underway. This is happening through the transformation of our energy production from old fossil fuel means of energy production like coal and gas to carbon-neutral means of energy production like wind, solar and possibly hydrogen. The transition to wind, solar and hydrogen is happening at pace in this state, and that is why we must equip our energy safety regulators with the ability to respond to emerging safety issues. The proposed changes for ensuring safety compliance will heighten responsibilities for electricity and gas enterprises encompassing both residential and utilities. This bill guarantees that newer technologies like batteries, wind farms and solar farms adhere to the same benchmarks as established power generation and network technologies. As we change to these new renewable technologies, we are now changing our regulatory frameworks to improve the safety of workers and communities.

Energy technologies are continuing to evolve and change rapidly as evidence of global warming is taking place across the globe. The theories we have heard for decades about climate change are becoming a harsh reality, and we are witnessing these with our own eyes. As I was writing this speech yesterday, the death toll in Hawaii in Lahaina was at 93 – but I have just checked and it is now up to 99 – from the absolutely awful fires that have rampaged through Maui and the town of Lahaina. I understand there are still hundreds of people missing and that they have lost very important indigenous historical information as well.

From wildfires to floods, climate change disasters have been running rampant in the Northern Hemisphere, especially over the last month, and here in Australia emergency organisations are already issuing warnings about our next fire season. That is why the Andrews Labor government is taking immediate steps to address climate change and setting one of the most ambitious emissions reduction targets in the world, cutting Victoria’s emissions by 75 to 80 per cent by 2035. We have already more than tripled the share of renewable power generation in just eight years. We are investing in and implementing new and emerging technologies on a growing scale. The Andrews Labor government has assisted nearly a quarter of a million households in Victoria to install solar panels, resulting in reduced energy bills.

Victorians are continuing to take up the assistance and incentives to go carbon neutral. Just last month, on 27 July, Minister for Energy and Resources Lily D’Ambrosio announced a new $8800 interest-free battery loan, which will enable households to maximise output from their solar panels and save thousands on energy bills over the lifetime of their battery. Solar homes outcomes: homes with both solar and battery save an estimated $1500 on their energy bills each year, with an average return on investment period of between seven and 10 years.

This government is planning for the future of renewable energy. Our offshore wind and energy storage is projected to achieve at least 2 gigawatts by 2032 and, in case my colleagues perhaps did not hear some of my fellow people from this side, 4 gigawatts by 2035 and 9 gigawatts by 2040. This is a huge change – the most pivotal technological shift of our lifetimes. The Victorian Labor government’s transition to carbon neutrality will mean more affordable energy, a cleaner, cooler planet and more employment opportunities as we transition.

With this comes the necessity of a new and emerging safety environment. Upholding the wellbeing and safety of workers and communities by ensuring the emerging renewable energy sector is sustainable and safe is something this government is proud to do. The Andrews Labor government is committed to ensuring that our energy safety protocols evolve alongside the evolving technology. It will also strengthen the investigative and enforcement authority of this state’s independent safety regulator, Energy Safe Victoria.

There are new types of incidents and safety hazards which need new and clear guidelines in risk management. For example, procedures for responding to a house fire emergency involving solar panels are different now from a few short years ago. As a former CFA volunteer, I know that the standard operating procedures required for responding to a structure fire involving a solar panel energy installation are different and can be dangerous.

Last week I met with captain of the Warrnambool CFA brigade Tom Woodhams to discuss these issues. He described a number of scenarios where new or originally unanticipated risks emerge and the difficulty in isolating power from a solar battery installation. Whilst you can isolate power and solar panels at the front of the house, the panels continue to produce energy on the roof. In the context of a fire this often means that the wiring between the panels and the isolating switch remains live and indeed the fire may even cause a metal roof to become live. If we add water to this scenario, we can all imagine how potentially dangerous this can be. This is an example of a safety issue that did not exist prior to the emergence of solar energy installations and a great example of why this legislation is needed. The regulatory mechanism provided by this amendment not only enables Energy Safe Victoria to require safe and preventative practices but also provides for penalties that reflect the significance of a breach.

Tom also explained the issue of battery fires, where the very nature of energy production in batteries results in the generation of heat. To extinguish a battery fire the battery pretty much needs to be immersed in water. Tom has seen examples where they have reignited once removed from the water due to their own self-combustion. He did refer to various videos on the internet, one showing a container ship full of electric cars on fire and another example of electric scooters catching alight. Again, these are examples of the need for strong and adaptive safety regulations as we transition to the new normal in energy production.

A further example of a safety issue provided by Tom was about retrofitting solar panels and hot-water systems on roofs that were not originally designed to accommodate such weight. In a fire situation rooftop hot-water systems can cause the roof to collapse inwards, spilling hot water into the fire-fighting dynamic. And in an example as recent as last week, a minor fire was extinguished by the Warrnambool fire brigade in the solar panels on top of the Capitol Cinema in Kepler Street.

It is important that we design buildings and renewable energy installations to prevent safety issues in the first place. This is why this legislation amends the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 in order to fortify the framework for ensuring compliance with the energy safety standards. This bill introduces revisions enabling the Governor in Council, following the recommendations of the Minister for Energy and Resources, to designate specific categories of electricity installations subject to distinct duties and responsibilities. Proposed amendments to augment civil penalties are also outlined in this bill, increasing them by up to six times their prior amounts under the three acts.

One example, very local to me, of the necessity of these amendments was evidenced in the case of the 2018 Terang and Garvoc fires, often referred to commonly and locally as the St Patrick’s Day fires. These fires began with the sparks from the interaction of Powercor high-voltage powerlines and ravaged 6000 hectares of land and property. Tragically, the peat fires continued to burn for months after the main fire was extinguished and at great expense to the community and organisations and the government to extinguish. Powercor subsequently had a court-imposed fine of $130,000. This outcome was deemed unsatisfactory and not at all in proportion to the amount of damage done by the fire. It certainly did not reflect the cost of extinguishing the peat fire or restoration of farm fences and infrastructure. This example of neglect of safety obligations shows the current penalty structure failing to align with potential ramifications for life, property and the environment. The meagre penalties undermine the legislation and potentially motivate businesses to gamble with safety because it is cheaper. Many of these penalties have remained unchanged since 2007.

The bill’s amendments will implement more robust penalties for violations of energy safety regulations and will give the community confidence that the government will hold asset owners and operators accountable for safety lapses. Further, the bill will equip Energy Safe Victoria with augmented oversight and authority over any modifications to a facility’s safety management plan alongside the capacity to carry out comprehensive revisions of these plans at five-year intervals.

The bill plans for our energy future. It acknowledges the volatile state of our environment as we respond to climate change. It represents mature planning and, above all, responsible and strong governance by the Andrews Labor government.

Ingrid STITT (Western Metropolitan – Minister for Early Childhood and Pre-Prep, Minister for Environment) (15:54): I thank all members for their contributions on this bill. This bill of course will modernise Victoria’s energy safety legislative framework to improve community and worker safety, and it will also create more effective and targeted regulation of the significant new and emerging safety risks that are posed by new technologies as the state undertakes a rapid energy transition to renewable energy sources.

These reforms will also strengthen the safety compliance framework by increasing obligations for electricity and gas companies, including owners and operators, and the legislation gives ESV legislative power to compel owners and operators of critical and complex installations, such as batteries, to reduce safety risks prior to energisation. The bill ensures newer technologies like batteries, wind farms and solar farms are held to the same standard 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 last election the government committed to a comprehensive review of energy safety legislation for the longer term. These particular reforms contained in this bill are the first step in that process and represent a number of important changes. The bill will help ensure safety of workers and communities as we continue with our journey of transition to renewable energy.

As others have already outlined in their contributions, Victoria is leading one of the fastest energy transitions in the world. We have helped nearly a quarter of a million Victorian households install solar panels on their roofs, reducing their bills and giving them control over their energy, and we are only just beginning. We have comfortably surpassed our 2020 renewable energy target of 20 per cent and we have increased our 2030 renewable energy target from 50 per cent to 65 per cent. This 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, 4 gigawatts by 2035 and 9 gigawatts by 2040. So this is an exciting transition that we are going through in our state.

To support this increase in renewable capacity we will have at least 2.6 gigawatts of storage capacity by 2030 and at least 6.3 gigawatts by 2035. We have brought forward our net zero emission targets 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 really kept pace with this reform. It is nothing short of fundamental technological transformation that we are experiencing in our lifetime. It is exciting. It means more jobs, it means cheaper energy and it means cleaner air. Importantly, it will tackle dangerous climate change by bringing emissions down, but to ensure that the safety of workers and communities is maintained, our energy safety rules need to change to keep pace with technology. This legislation does that by making commonsense amendments to our legislative framework.

Over the past two decades the electricity sector has been replacing carbon-intensive generation with renewables, and the sector is moving away from having a small number of large-scale facilities that have historically been owned and operated by a handful of companies towards a more decentralised and widely distributed electricity generation industry. That exponential growth in these new technologies has exposed some critical gaps within the current energy safety framework. The current framework was originally developed based on, as I said, a small number of entities in the 1990s and did not factor in possible uptake and investment in renewable energy or the technological diversity that has emerged in both utility- and residential-scale installations.

It is critical to safeguard consumer protections and confidence by ensuring the safe delivery and regulation of these new technologies, so the bill does that in a number of different ways. It creates a new head of power to declare an owner or operator of an electrical installation to have duties and obligations in line with a major electricity company, and companies will need to comply with enhanced safety obligations and pay levies to ESV. All changes to accepted safety management plans will need to be agreed to by ESV and do not automatically reset the five-year period in which a safety plan needs to be reviewed.

The bill will align general duties for complex electrical installations with those for electricity supply networks and allow operators and owners to submit a voluntary electricity safety management plan. It will require the preservation of a serious electrical or gas incident site and change commencement of the period in which ESV can bring court proceedings to the time that the offence comes to ESV’s notice. It will also provide the minister and ESV the power to enter enforceable undertakings with regulated entities and will increase maximum penalties for offences relating to maintaining safe networks.

The bill also makes amendments to the Electricity Safety Act 1998, the Gas Safety Act 1997 and the Pipelines Act 2005 to increase civil penalties up to sixfold from their previous amounts. As my colleague Ms Ermacora just went to in her contribution, the current penalties really do not align with the potential implications to life, property and the environment that may result from a failure to fulfil safety obligations. Such low penalty rates in the current scheme really undermine the intent of the legislation, and low penalties potentially incentivise businesses to take safety risks.

The Andrews Labor government is absolutely committed to making sure that energy safety is paramount and that our robust energy safety framework is proactively updated to ensure we continue to keep workers and the community safe. There are inherent risks with all electrical infrastructure, but these risks are mitigated through appropriate energy safety rules. As a government, we have always worked closely with ESV and prioritised safety. We introduced legislation through the Energy Safety Legislation Amendment (Victorian Energy Safety Commission and Other Matters) Act 2020, which transformed ESV from a single-member agency to a three-person commission. That commenced in January 2021, supported by a chief executive officer and a technical advisory committee. At the election, as I said, we committed to a comprehensive review of energy safety legislation for the long term, and we are getting on with that. As we continue to transition to renewable energy, we will maintain our proactive approach to safety, and that is why we need this bill. I commend the bill to the house.

Motion agreed to.

Read second time.

Third reading

Ingrid STITT (Western Metropolitan – Minister for Early Childhood and Pre-Prep, Minister for Environment) (16:03): I move, by leave:

That the bill be now read a third time.

Motion agreed to.

Read third time.

The PRESIDENT: Pursuant to standing order 14.28, the bill will be returned to the Assembly with a message informing them that the Council have agreed to the bill without amendment.