esv.vic.gov.au
The Block
By Jonathan Granger, Head of Communications and Marketing
The decisions taken in Victoria 25 years
ago to introduce competitive wholesale
and retail markets linked by regulated
integrated distributor-retailers was a
satisfactory basis to initiate reform,
but it was never assumed that this
industry structure would or should
remain unchanged. Instead it was
assumed that, with appropriate
competition oversight and incentive
regulation, product and captial
markets would motivate firms to focus
on dynamic efficiency and meeting
changing consumer preferences.
Today that includes the perspectives
of the disinterested, the disadvantaged
and those who prefer renewables. As
we contemplate the respective roles to
be played by competition, regulation
and markets for the next 100 years of
electricity supply, it is worth reflecting
on three things.
First, the laws of physics never yield to
the laws of humans. Second, in the long
term, better outcomes are achieved,
not by writing more rules or mandating
objectives but by facilitating their
attainment.
As Nobel Laureate Douglas North
observed, it is through the institutional
settings, such as the form of regulation
adopted, that incentives are created.
Appropriate incentives, in turn, drive
firms to employ their technical and
entrepreneurial talent towards creating
consumer value rather than higher costs.
Third, electricity markets are unlike most
other markets. Some level of engineering
coordination, planning and control is
still required.
Nine’s reality television show, The Block,
came under ESV scrutiny after an episode
broadcast in September showed what appeared
to be a contestant installing electrical cables.
During the episode, contestant
Carla led to believe she could
do her own electrical work, even
to the point of creating her own
do-it-yourself videos on YouTube.
The segment later showed Carla
receiving a call from ESV indicating
that it was likely all the electrical
work would have to be pulled out,
as she was not a licensed electrician.
However, it all turned out to be a
prank – the call from ESV was from
someone on set pretending to be
from ESV. Regrettably, the whole
incident occurred under the eye
of a licensed electrical contractor.
The show implied that it was
acceptable for non-licensed DIYers
to do their own electrical work,
which is both unsafe and illegal.
Following the broadcast, ESV
met with the producers of the show
who apologised for the incident,
and conceded that the prank didn’t
come across as intended. ESV
made it clear that their actions were
unacceptable, and that the segment
had contradicted our long term safety
campaigns. The show’s producers
accepted this, and have offered
ESV the opportunity to carry out
inspections during the 2019 season
of the show.
Where and how this is optimally carried
out is one of many questions facing
policy makers today.
The licensed electrician spoke
to ESV and claimed it was his
understanding that the segment
would never be broadcast.
While The Block would argue that
they did tell their audience that
electrical work must always be
carried out by a qualified electrician,
the fact that they broadcast the
segment to hundreds of thousands
of viewers trivialises what is an
incredibly dangerous task.
Too many times ESV has been
called to incidents that have resulted
in fatalities from unlicensed people
doing their own electrical work. Only
recently a man was killed attempting
to install a power point when he
inadvertently touched a live electrical
cable.
All electricians have to be vigilant
about this – never knowingly allow
people to do unlicensed DIY. If you
hear about it happening, remind
these people that that sort of work
is not only illegal, it is also extremely
dangerous.
It is not only suburban DIY work
either. The warning against DIY
electrical work is also important for
farmers and farm workers, particularly
after a number of fatalities in recent
years.
The Block’s apology
is on ESV’s Facebook.
09