Kim O’KEEFFE (Shepparton) (18:24): I rise to make a contribution on the Energy and Land Legislation Amendment (Energy Safety) Bill 2025. The bill amends a variety of acts related to the energy and resources portfolio, including the Electricity Safety Act 1998, the Gas Safety Act 1997, the Pipelines Act 2005, the Land Act 1958 and the Energy Safe Victoria Act 2005. Seemingly this bill does have some positive changes, and some of the changes do make sense. However, the bill in its current form is simply pushing through amendments under a more generic bill that does not fix problems with our energy system or introduce proper accountability measures. This government’s agenda is to ban gas in this state, and this is just another step to do that.
Since coming into office just over 10 years ago, Labor has failed in the state’s transition to renewables, and because of that Victorians are continuing to pay the price.
Energy prices are going up, putting more pressure on households. And if we want facts – the previous speaker called for some facts – in June last year the Australian Energy Market Operator, the AEMO, released its 2024 integrated system plan, which laid bare the vulnerabilities in Victoria’s energy system following a decade of mismanagement under Labor. The report highlighted the critical role of gas power generation as the retirement of coal-fired power stations nears and the grid continues to transition to renewables. Labor’s opposition to gas for the past 10 years has prevented critical new supplies being brought online, and the AEMO will continue to issue warnings of potential gas shortages and blackouts. In regional Victoria we are experiencing significant blackouts. We experience the government’s lack of support for regions, and this is another neglected opportunity within this bill. Victorians deserve a government that understands the need for new natural gas supplies to be brought to market, and they simply are not getting that under this current government.
The government back in December proposed new regulations that would see the banning of gas appliances in every Victorian home, as well as banning gas connections to all new residential dwellings and most new commercial buildings. And here we have another bill supporting the banning of gas. The proposed regulations will mean that for all existing residential buildings in Victoria, gas heating and hot-water systems cannot be installed and existing gas appliances cannot be replaced with gas appliances at the end of their life.
On this side of the house we firmly oppose the government’s plan to ban gas in every home and to ban new gas appliances as replacements for existing gas appliances. We know on this side of the house that gas still has a very important role in our transition to more renewable energy. Victorian households and businesses rely on gas like those in no other state in this country. Despite this fact, Labor refuses to actively pursue policies to increase supply and to keep prices down. The government’s failure to deliver on this has forced energy prices to increase for Victorians, and this has introduced serious risks for households and businesses. As a direct result of this more and more businesses than ever are leaving Victoria to pursue their business interests elsewhere.
Victorians should be free to choose their own energy source freely. They should not be directed nor pushed in choosing their energy source by the government. The government simply cannot be trusted when it comes to the management of our energy system. After 10 years of continual policy failures it is Victorians who are paying the price and are worse off because of this government’s inability to provide affordable and reliable energy.
One of our major concerns with the bill is that it repeals the Electric Line Clearance Consultative Committee and the Victorian Electrolysis Committee, which removes expert advice. The minister stated in the second-reading speech that both of these committees ‘will no longer be required’ – so expert advice will no longer be required? Both of these committees in the past have had distinct roles and a wealth of expertise within the energy and resources portfolio. As the lead speaker the member for Brighton pointed out in his contribution, the minister obviously does not like their advice – does not like the professional advice given by the committees – and the bill is therefore abolishing them. We do not support the disbanding of these committees. Abolishing these committees removes critical industry expertise from decision-making. This shift to centralised control is not only dangerous but unacceptable, and leads to reduced transparency of decision-making.
Under the provisions Energy Safe Victoria will be given enhanced powers to identify and mitigate safety risks earlier – and there are some positive things there – to monitor compliance with regulatory requirements and take swift and decisive enforcement action where necessary. In addition the bill removes the need for Energy Safe authorised officers to obtain written consent before exercising certain powers and allows officers to request assistance from any person for the purpose of entry in exercising their powers under the relevant act. This amendment will enable authorised officers to act swiftly to resolve safety risks involving new technologies and requiring specialist knowledge. It will still be a requirement for authorised officers to report their use of entry powers to Energy Safe, which will continue to maintain a register of the entry power usage.
We do have concerns that the bill proposes significant penalty increases for electrical and plumbing contractors, with fines rising to $48,000 for individuals and $240,000 for corporations. These excessive penalties could disproportionately harm small businesses and tradies for inadvertent mistakes, and as already discussed, there are concerns around the timely addressing of appeals through VCAT. The member for Morwell, a former plumber, in his contribution raised concerns about the significant impact these fines would have on a small business that is trying to navigate significant changes while supporting households. We need to support our tradies and keep a much-needed workforce, and we need to make sure that penalties are adequate, not too extreme.
Energy Safe will also be provided with new powers to suspend electrical contractor registrations or electrical worker licensees and to issue prohibition notices to prevent certain activities. The ability to suspend contractors and workers on the spot raises concerns around the ability to appeal, with appeals only available through VCAT. Workers and contractors could be faced with prolonged uncertainty and financial hardship while waiting for the appeal to go through the VCAT process, and at a time when we need tradies on the ground. We do want to ensure safety and best practice, but we also need to have sensible penalties. Under these significant fines we are likely to lose businesses and cause significant hardship, and as the member for Narracan pointed out, penalties go from currently $820 to $48,000, which is unbelievable and totally unacceptable.
Another amendment I would like to briefly touch on is the bushfire mitigation plans. We have recently seen the devastation of the bushfires, and it has been distressful to see the communities affected by the recent bushfires across western Victoria. I acknowledge the member for Lowan’s dedication to her community during that stressful time. Under the bill the bushfire mitigation plans for specified operators would now be required every five years instead of annually. Moving from an annual to a five-year cycle for bushfire mitigation plans may reduce the regulatory burden for operators, but it does raise concerns about whether it will adequately address evolving safety risks.
The bill will also amend the Land Act 1958 with respect to unreserved Crown land. The Minister for Environment will be provided with the power to enter into an agreement to lease under section 134 of the Land Act for projects on unreserved Crown land that are subject to the Environment Effects Act 1978. By increasing certainty about future land tenure for proponents of complex projects it seeks to support further investments in environment effects statement processes and future projects’ needs.
The bill before us does not adequately or clearly define the roles of Energy Safe Victoria, WorkSafe Victoria and the Environment Protection Authority Victoria. Without clearer coordination there is a risk of duplication, inefficiency and regulatory confusion for businesses and workers. Victorians expect better from the government in regard to their energy policies. My office is inundated with many stories of local constituents whose energy bills have skyrocketed under Labor’s watch. We must do more. We must make sure that we are making energy affordable for households at a time when we know that people are struggling to make ends meet. I support the amendments put forward by the member for Brighton, but I do ask that we give much more consideration when it comes to the impact of costings. This government continues to impose extra taxes, raising the cost of living, and fails in managing energy costs.