esv.vic.gov.au
Director of Energy Safety Paul Fearon has announced his retirement.
Paul reflects on some of the challenges and achievements after
decade at the helm of Victoria’s energy safety regulator.
“I think my biggest personal
achievement has been developing an
organisation and its people, to have
the confidence and capacity to do
its job as a regulator. It is pleasing to
see how staff and individuals can play
such a strong role across all aspects of
regulation, which includes standards,
working with communities and many
stakeholders. “Some of the bigger issues around
climate and new technologies were
beginning to gather momentum, and
the new national regulatory agencies
were laying down new rules that
would influence the way the market
and industry structure would evolve.
We also started to see significant
aggregation and consolidation in
the industry.”
“So, it’s really their achievements that
are important. I am proud of the fact
that notwithstanding the challenges
along the way and the issues we’ve had
to deal with, that ESV has maintained
a reputation for being a regulator with
integrity.” Maintaining morale
Challenging arrival
Mr Fearon arrived at ESV, as
Acting Director, at a challenging time:
“It was just after the catastrophe
of Black Saturday and the sudden
departure of the previous director.
I was thrust into an environment
where the Victorian Bushfires Royal
Commission was already underway
and I was subjected to a detailed cross-
examination by the counsel assisting,
Jack Rush QC. This certainly brought
focus to what my role was going to be.”
Mr Fearon said the 2009 bushfires
highlighted the crisis of confidence –
particularly for external stakeholders
– in ESV.
He said Black Saturday was the first
significant occasion when the existing
industry had been examined in detail
since privatisation.
“When I reflect on my 10-year term,
I see it as two five-year terms. The
first goal was to give meaning to an
organisation suddenly pushed into the
spotlight. The criticism was withering,
and there was a real danger it could
have been taken personally by the
people who were otherwise very
capable, talented and professional.
“So, the first priority was to maintain
morale, particularly in the infrastructure
space where ESV’s role had been,
hitherto, very small and directed to
essentially prescriptive elements of
the safety regime.
The second five-year term followed
a period where many of the initial
changes to address bushfire risk had
already been taken. It was now about
addressing longer-term issues, around
conceptual and strategic rationale;
how we should regulate, evolve our
understanding of risk and how best
to test, challenge and expose those
who have the duty to community
and consumers.
Mr Fearon said that during this time
root and branch reviews were carried
out on of all the operating areas as well
as the leadership structures and culture
of ESV, “because one person was never
going to do it alone.”
The Grimes Review
Mr Fearon welcomed the 2017 Review
of Victoria's Electricity and Gas Network
Safety Framework.
“It’s pleasing to see that ESV’s future
will be led by the combined wisdom
of more than one person,” he said.
“It’s always challenging when an
organisation is put under the spotlight
but was a made a lot easier by the
appointment of Paul Grimes – a person
of great integrity and independence.
His review was rigorous but very fair
and balanced. No adverse findings
were made but many significant
opportunities to improve were identified.
His review vindicated the work we had
done previously, but certainly pointed
to those aspects of regulation that
required a lot more work.”
The future
Mr Fearon said the future of energy
was, by any measure, becoming more
complex, requiring all regulators to work
far more closely with policy-makers to
address the source of issues as they
relate to market and industry structures.
“I believe other key challenges are skill
development, the speed of technological
development, new equipment, changes
in markets, impact on the quality of
product, uncertainty as to national and
global pressures on the energy sector,
and the diversity of new entrants and
players in the market.
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