The ENA policy on A National Framework for Energy Safety in Australia’ sets out how a common approach to energy technical and safety regulation in Australia can be incorporated in Australian law and assist in the delivery of safe, reliable and affordable energy.

ENA is recommending the use of Australian Standards to develop the regulatory framework, based around the concept of a Safety and Operating Plan (or Safety Case), which has been adopted to varying degrees by most jurisdictional regulators as the model of best practice regulation.

As early as 1994 the Council of Australian Governments (COAG) approved a recommendation to adopt the performance-based Australian Standard 2885 Pipelines – Gas and Liquid Petroleum to achieve national construction of transmission pipelines. The Standard is cited consistently in jurisdictional legislation.

ENA will be advocating to COAG and the Ministerial Council on Energy (MCE) that it should recognise the development of the performance-based standard being prepared by Standards Australia Committee AG-008 Gas Distribution as the basis of national regulation for gas distribution.

ENA has also commenced preparing an ENA Industry Guideline on Electricity Technical and Safety Regulation for the electricity supply industry as the proposed scope for a performance-based Australian Standard for electricity network safety management systems.

It is important to note that the 26 March 2008 COAG meeting agreed that national harmonisation of occupational health and safety (OHS) laws was a top priority, with model legislation to be developed and submitted to the Workplace Relations Ministers’ Council by September 2009.

In this context, ENA will be advocating to COAG and the Workplace Relations Ministers’ Council that as a general principle, an energy safety case approved by the relevant regulator should also provide the basis for compliance with the safe workplace obligations under OHS legislation.

As part of the policy, ENA is supporting the creation of a single national energy safety regulatory agency.

ENA believes that the development of a national framework alone will not guarantee national consistency of energy safety regulation, as differences, or perceived differences, in the actual application of any ‘template’ arrangements would remain.

A single national energy safety regulatory agency, perhaps modelled on the National Offshore Petroleum Safety Authority (NOPSA) – which administers offshore petroleum safety legislation, would provide the leadership to ensure a national and consistent approach to energy safety.

However ENA believes that existing jurisdictional regulators will retain their current role while the national energy safety framework is being developed and implemented.

In many areas of Australian public policy, such as in OHS legislation, the regulatory trend is moving towards national alignment. The economic regulation of energy networks has already moved from the jurisdictions to the Commonwealth through the Australian Energy Regulator (AER). The National Electricity Market (NEM) has now been in place since 1998, operated by the National Electricity Market Management Company (NEMMCO).

In April 2007 COAG announced its intention to establish a new national Australian Energy Market Operator (AEMO) by July 2009, for both electricity and gas, to strengthen the national character of energy market governance.

The development of a national energy market, increasing interconnection of energy infrastructure across jurisdictional boundaries and energy companies operating in multiple jurisdictions has produced an increasing need, and justification for, national standardisation of energy industry regulation.

ENA has highlighted over the years that the key to a successful economy is the ability to deliver safe, reliable and affordable energy across the nation. A truly national market ultimately requires one common set of rules.