Five electricity distribution-network operators in Victoria are seeking authorisation from the Australian Competition and Consumer Commission for a proposal requiring civil contractors to be pre-qualified and approved in order to perform work on electricity infrastructure projects.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC has issued a draft determination proposing to authorise the accreditation scheme, considering the proposal will produce public benefits, through higher compliance with standards, and business efficiencies.
The accreditation proposal has been developed to address concerns that when customers independently commission electricity works, these are not always carried out to an appropriate level of safety and quality to be connected to the distribution network.
The proposal requires contractors undertaking infrastructure work to have key staff TAFE-trained, and be accredited to Australian and international standards.
"The ACCC considers the proposed scheme will cut the cost and time of ensuring work done by civil contractors is good enough to be connected to Victoria's electricity networks," ACCC Chairman, Mr Graeme Samuel, said.
"The scheme may also reduce the broader compliance burden on contractors - as they will only have to meet a single set of competence criteria to undertake work on any part of Victoria's electricity network."
Meeting accreditation criteria may involve additional costs for some civil contractors, however, the ACCC considers the way in which the accreditation criteria have been developed and implemented will mitigate against a significant impact on competition.
Any contractor that meets the accreditation criteria will be eligible for accreditation, and the distribution businesses plan to continue to accept work undertaken by non-accredited civil contractors, provided the work meets required standards.
However, work undertaken by non-accredited civil contractors will be subject to stricter auditing requirements before being connected to the network.
The ACCC is seeking submissions from interested parties in relation to the draft determination before making its final decision. Parties wishing to make submissions should do so by 3 April 2009. Please refer to the website for further information about making a submission to the ACCC.
The draft determination will be available from the ACCC website, by following the 'Public registers' and 'Authorisations and notifications registers' links.