Review of Victoria's Electricity and Gas Network Safety Framework (Grimes Review)
Review into Energy Safe Victoria and reforming the energy safety framework.
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Background
The Independent Review of Victoria’s Electricity and Gas Network Safety Framework (Grimes Review) was conducted in 2017 and examined the design and adequacy of the safety regulatory obligations, incentives, and other arrangements governing the safety of Victoria’s electricity and gas networks.
The Review made 43 recommendations representing a significant reform agenda. They focused on:
strengthening the governance and regulatory approach of Victoria’s energy safety regulator, Energy Safe Victoria.
broadening Energy Safe Victoria's capabilities and preparedness to take strong regulatory action.
On 1 August 2018, the Victorian Government publicly released the Review’s final report and the Government response to it.
The Government response supported 42 of the 43 recommendations, either in full or in principle:
support in full for 21 recommendations
support in principle for 21 recommendations
the Victorian Government did not support one recommendation for the Chair of the recommended Energy Safe Victoria Commission to also serve as the Chief Executive.
The report provides a final update on the implementation of the 2018 reform agenda.
Of the 42 recommendations supported by government:
32 are complete (30 completed since the 2019 update)
10 are on track for completion (during 2023 to 2026).
Many of the remaining recommendations have been incorporated into the government’s and ESV’s business-as-usual workstreams, and into the government’s legislative and operational program, including the Energy Safety Review 2023-24 State budget initiative.
To acquit recommendation 1 of the Grimes Review, the Energy Safety Legislation Amendment (Victorian Energy Safety Commission and Other Matters) Act 2020 reformed the governance structure of ESV from a single director-led model to a three-person Commission, to which all powers previously held by the Director of Energy Safety were transferred.
This reform strengthens ESV’s regulatory approach and decision-making, ensuring consideration of a wider range of perspectives and experience.
To acquit recommendations 12, 13, 35, and 36 of the Grimes Review, the Victorian Government introduced the Energy Legislation Amendment (Energy Safety) Act 2023. The Act expands the range of compliance and enforcement tools provided in legislation, increasing civil penalties, and strengthening general safety duties for various entities.
In 2022, the Victorian Government announced that it would undertake an Energy Safety Review to ensure safety settings are keeping pace with emerging technologies, to protect worker and community safety. The Energy Safety Review will acquit recommendations 34, 37, 38, 39, 40, 41 and 43 of the Grimes Review, and will build on the foundations of the 2018 reform agenda. See the final implementation report for more details.
To acquit recommendation 17 of the Grimes Review, the Department of Energy, Environment and Climate Action has entered into a memorandum of understanding with Energy Safe Victoria.
The memorandum articulates principles of engagement between the organisations and clarifies each organisation's roles.