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Regulatory Impact Statement

Gas Supply (Consumer Safety) Regulation 2012

A regulation under section 83A of the Gas Supply Act 1996

Review of Gas Consumer Safety and

Subordinate Legislation Act 1989

June 2012

Enquiries to: (02) 9895 0791 Submissions to: Gas Supply (Consumer Safety) Regulation 2012 NSW Fair Trading Department of Finance and Services PO Box 972 PARRAMATTA NSW 2124 Fax: (02) 9338 8990 E-mail: [email protected] Final date for submissions: 25 July 2012 Additional copies of this Regulatory Impact Statement and the draft regulation can be obtained from: http://www.fairtrading.nsw.gov.au or by calling Fair Trading on (02) 9895 0791. © State of New South Wales, through NSW Fair Trading 2011

You may copy, distribute, download and otherwise freely deal with this information provided you attribute NSW Fair Trading as the owner. However, you must obtain permission from NSW Fair Trading if you wish to 1) modify, 2) charge others for access, 3) include in advertising or a product for sale, or 4) profit, from the information. Important: for full details, see NSW Fair Trading’s copyright policy at www.fairtrading.nsw.gov.au/copyright.html or email [email protected] Disclaimer

Because this publication avoids the use of legal language, information about the law may have been summarised or expressed in general statements. This information should not be relied upon as a substitute for professional legal advice or reference to the actual legislation. Further copies of this document can be downloaded from the NSW Fair Trading website www.fairtrading.nsw.gov.au

Regulatory Impact Statement Gas Supply (Consumer Safety) Regulation 2012

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TABLE OF CONTENTS

1. INTRODUCTION ........................................................................................................................... 2

1.1 TITLE AND PROPONENT OF THE PROPOSED REGULATION ........................................................... 2

1.2 WHY IS THE REGULATION BEING MADE? ................................................................................... 2

1.3 STATUS OF THE PROPOSED REGULATION ................................................................................. 2

1.4 WHAT IS THE PURPOSE OF THIS REGULATORY IMPACT STATEMENT? ......................................... 2

2. BACKGROUND ............................................................................................................................ 3

2.1 REGULATION OF GAS CONSUMER SAFETY IN NSW ................................................................... 3

3. OBJECTIVES OF THE PROPOSED REGULATION ................................................................... 4

4. OPTIONS TO ACHIEVE OBJECTIVES ....................................................................................... 4

5. CRITERIA USED TO ASSESS THE REGULATORY OPTIONS ................................................. 4

6. REGULATORY FRAMEWORK .................................................................................................... 5

7. IMPACT ASSESSMENT OF THE PROPOSED REGULATION ................................................ 10

7.1 IMPACT OF INDIVIDUAL CLAUSES OF THE PROPOSED REGULATION ............................................ 10

7.1.1 Part 1 Preliminary (clauses 1 to 3) ....................................................................... 10

7.1.2 Part 2 Gas appliances (clauses 4 to 20) .............................................................. 11

7.1.3 Part 3 Gas fitting work (clauses 21-22) ................................................................ 20

7.1.4 Part 4 Gas fitting work (clauses 23-24) ................................................................ 22

7.1.5 Part 5 Gas installations (supplied from a gas network) (clauses 25-26) .............. 23

7.1.6 Part 6 Gas installations (not supplied from a gas network) (clauses 27-37) ....... 25

7.1.7 Part 7 Autogas installations (clauses 38-45) ....................................................... 34

7.1.8 Part 8 Miscellaneous (clause 46-55) .................................................................. 42

7.2 OVERALL IMPACT OF OPTION 3: THE PROPOSED REGULATION ................................................. 52

8. IMPACT ANALYSIS OF THE ALTERNATIVES TO THE REGULATION ................................. 53

8.1 OPTION 1: DO NOTHING ........................................................................................................ 53

8.2 OPTION 2: RELY ON THE INDUSTRY TO SELF REGULATE .......................................................... 54

9. CONCLUSIONS .......................................................................................................................... 54

7 CONSULTATION ........................................................................................................................ 54

8 APPENDIX A: Proposed Gas Supply (Consumer Safety) Regulation 2012 ......................... 57


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1. INTRODUCTION

1.1 Title and proponent of the proposed regulation The Gas Supply (Consumer Safety) Regulation 2012 is proposed by the Hon Anthony Roberts MP, Minister for Fair Trading.

1.2 Why is the regulation being made? On 3 September 2010, following a review and subsequent reforms to the NSW gas regulatory framework, Fair Trading commenced administration of an amended consolidated Gas Supply (Consumer Safety) Regulation 2004, renamed from the Gas Supply (Gas Appliances) Regulation 2004. The amended Gas Supply (Consumer Safety) Regulation 2004 was drafted by combining and consolidating regulatory functions from three separate agencies: the former Department of Water and Energy, WorkCover and Fair Trading. While Fair Trading has regulatory responsibility for the regulation through Part 83A of the Gas Supply Act 1996, this Act is administered by the Minister for Energy. As a result of these reforms, Fair Trading now regulates all gas appliances connected to networks and non-networks, gas installations, autogas and licensed gas fitters. WorkCover remain the regulator of appliances and installations located in the workplace and the approval of gas cylinders. The consolidated Gas Supply (Consumer Safety) Regulation has been in operation for over 18 months, and the Minister has requested that Fair Trading review the Regulation to ensure it is co-ordinated, efficient and working for the regulator and industry as intended. While the Regulation was consolidated and renamed in 2010, the provisions within the regulation have not been reviewed as provided by the Subordinate Legislation Act 1989 since 2004. The Subordinate Legislation Act provides for the automatic repeal of statutory rules (regulations) after they have been in force for five years. At the time the Gas Supply (Consumer Safety) Regulation 2004 was due for automatic repeal, it was subject to the 2009 review of regulatory responsibilities and the automatic repeal was postponed. This automatic repeal process was postponed twice more to allow for the commencement of reforms and provide for an appropriate time period in which to assess its effectiveness in regulating the industry. The Gas Supply (Consumer Safety) Regulation 2004 is to be repealed on 1 September 2012. It is proposed that the regulation be remade with amendments that enhance the regulatory options available to Fair Trading, correct minor drafting issues and update the provisions in regard to modern gas fitting standards.

1.3 Status of the proposed regulation The proposed regulation is only a draft at this stage. This Regulatory Impact Statement is being released, along with the draft regulation, so that industry, consumers and other interested parties can consider the proposed requirements and submit comments and suggestions. The draft regulation may then be amended to take into account suggestions made in submissions. The new regulation will come into effect by 1 September 2012.

1.4 What is the purpose of this Regulatory Impact Statement? The Subordinate Legislation Act provides the framework and rules by which regulations are made in NSW.


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The Act’s primary objective is to reduce unnecessary regulation by Government. A key requirement of the Act is that a Regulatory Impact Statement be prepared and public consultation undertaken before a new regulation can be made. The Regulatory Impact Statement explains the purpose of the regulation, weighs up the economic and social impacts, and considers other possible options to meet the aims of the proposed regulation. The Regulatory Impact Statement must demonstrate that the proposed regulation is the option which, on balance, provides the greatest overall benefit to the public. The Regulatory Impact Statement procedure aims to ensure that the regulation: • is the most efficient and effective way of achieving the policy objective of the

legislation; and • imposes minimum costs on the community or produces an outcome where the

expected benefits outweigh the expected costs. The Regulatory Impact Statement must: • state the objectives of the proposed regulation and the reason for them; • identify alternative options by which those objectives might be achieved • assess the costs and benefits of each alternative - this assessment must consider the

alternative of not taking any action; • assess which of the alternatives will bring about the greatest net benefit or the least net

cost to the community; and • outline the consultation program to be undertaken. The impact of a proposed regulation is generally expressed in terms of: • ‘cost-benefit’ analysis of the options, where the costs and benefits flowing from the

regulation can be measured in monetary terms: or • ‘cost effectiveness’ analysis, where the costs and benefits of alternative means of

achieving the regulation’s objectives are compared, although the costs and benefits are not evaluated in monetary terms.

2. BACKGROUND

2.1 Regulation of gas consumer safety in NSW The Gas Supply Act 1996 regulates matters relating to gas reticulation and gas supply in New South Wales. Sections 83 and 83A of the Gas Supply Act create regulation making powers in respect of a range of activities relating to gas appliances, gas installations and gasfitting work, autogas installations and autogas work and gas meters. The Gas Supply (Consumer Safety) Regulation 2004 implements a regulatory framework for all gas appliances connected to networks and non-networks, gas installations, autogas, licensed gas fitters and the testing and installation of gas meters. WorkCover remain the regulator of appliances and installations located in the workplace and gas cylinders. As stated above, the Gas Supply (Consumer Safety) Regulation 2004 commenced in September 2010 following a comprehensive review of gas regulatory responsibilities undertaken by the Better Regulation Office in 2009. Previously, these regulatory functions were split between three separate agencies, the former Department of Water and Energy, WorkCover and Fair Trading. In 2011, Fair Trading consolidated the Gas Supply (Gas Meters) Regulation 2002 into the Gas Supply (Consumer Safety) Regulation 2004. The regulation of gas meters primarily concerns trade measurement, i.e. the requirement that gas be supplied through a gas meter and the testing of, and equipment used to test gas meters.


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On 1 July 2010, a national system of trade measurement administered by the Commonwealth National Measurement Institute (NMI) came into effect and NSW repealed its trade measurement laws. At that time gas meters were exempted from the national trade measurement laws, however the Commonwealth always intended to remove the exemption and introduce similar provisions. A NMI discussion paper was released on this issue in September 2011 and it is expected that regulation relating to gas meters and gas meter testing equipment will be introduced by the Commonwealth Government soon. At that time, NSW will repeal provisions in the Gas Supply (Consumer Safety) Regulation relating to gas meters. Additional Regulation making powers sought in section 83A the Gas Supply Act It is noted that Section 83A of the Gas Supply Act 1996 does not have current Regulation making powers to provide for Fair Trading inspectors to issue penalty notice for offences made under the Regulation or for specific powers to seize and remove unsafe gas appliances found for retail sale. Fair Trading will seek amendments to section 83A of the Act to ensure it has sufficient powers to effectively regulate gas appliances and installations in NSW. Copies of the Gas Supply Act and current regulation can be viewed or downloaded from the Parliamentary Counsel’s Office web site at: http://www.legislation.nsw.gov.au.

3. OBJECTIVES OF THE PROPOSED REGULATION The primary objectives of the proposed regulation are to ensure consumer and community safety through the regulation of gas appliances, gas installations, autogas installations and those components connected to them. This is done through a certification system for gas appliances, requirements for how gas fitting work and autogas work is to be done and disclosure requirements so gasfitters, consumers, suppliers and anyone else can clearly determine if a gas appliance and gas or autogas installation are safe. The Regulation also requires gas supplied from gas networks is metered and makes provision for the testing of gas meters and any gas meter testing equipment.

4. OPTIONS TO ACHIEVE OBJECTIVES Three options for achieving the above objectives are considered in this Regulatory Impact Statement: Option 1: Do nothing

This option would mean that the Gas Supply Act 1996 and specifically section 83A relating to gas appliances, installations, autogas, autogas installations and gas meters would operate without any accompanying regulation.

Option 2: Rely on the industry to self-regulate

This option would place the onus on industry to establish a voluntary code of practice regulating those issues currently addressed through the Gas Supply (Consumer Safety) Regulation 2004.

Option 3: Make the proposed regulation

This option would enable the Gas Supply Act 1996 to operate with the regulation to provide the required administrative detail for the operation of the Act. This is the preferred option.

5. CRITERIA USED TO ASSESS THE REGULATORY OPTIONS


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The following criteria, which relate to the regulatory objectives, are used in the evaluation of the three options: 1. the extent to which the proposed option supports the objectives of the Gas Supply Act

1996 specifically section 83A; 2. the cost effectiveness of each option, in terms of costs and benefits to consumers,

industry and government; and 3. the extent to which the option contributes to the overall efficiency of the regulatory

system.

6. REGULATORY FRAMEWORK The proposed regulation provides the administrative detail to enable the intent of the Gas Supply Act to be realised. The scope of any regulation is limited by the regulation making powers provided under the enabling legislation – in this case the Gas Supply Act 1996. The regulation making powers of the Act and the scope of the proposed regulation are summarised in Table 1 below. Table 1

Power provided by the Act Section of Act

Scope of the proposed Regulation

Clause of regulation

Regulations may make provision for or with respect to the design, construction and labelling of gas appliances.

83A (a) Compliance labels must be inscribed with certain particulars

5 (2)

A person must not certify a gas appliance without authority

7

A person or organisation may apply for an authority to certify gas appliances

8

The Director-General may place conditions on the certification authority

9

The authority to certify will have a duration placed on it

10

The Director-General can cancel an authority

11

The Director-General can suspend an authority and ask the holder to show cause why the authority should not be cancelled.

12

A person must not commit offences relating to labelling of gas appliances

13

Regulations may make provision for or with respect to the prohibition of the sale or supply of unsafe gas appliances

83A (b) It is an offence to sell or supply a gas appliance if it is not certified and an appropriate compliance label is not attached

5 (1), 14 (1)

Regulations may make provision for or with respect to the imposition of conditions on the sale or supply of gas appliances to ensure their safe use

83A (c) The Office of Fair Trading can prohibit the sale or supply of an unsafe gas appliance, or require the unsafe gas appliance to be recalled, or require action to be taken to render the appliance safe to use

14-18

The Director-General must keep a register of certification authorities with certain details

19

The holder of a certification authority must update certain details with Fair Trading in a certain time period

20

Regulations may make provision for or with respect to the connection, alteration, maintenance, repair,

83A (d) A person must not connect an appliance to a installation unless it is certified

6

The Director-General can require action to be taken to render an appliance safe

14 (2)


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replacement and operation of gas appliances

It is an offence not to comply with such a requirement

18 (b)

A gasfitter must inspect all gas appliances connected to an installation after completing gas fitting work on the installation supplied by a gas network

26 (1) (a)

A gasfitter must inspect all gas appliances connected to an installation after completing gas fitting work on the installation not supplied by a gas network

28 (b) (ii)

If satisfied a gas appliance connected to the installation is patently defective a gasfitter must securely attach a defect notice to it, if it cannot be removed from the installation, the compliance plate must be removed.

31

A person cannot use a gas appliance if a defect notice is attached to the gas appliance

33 (2)

A person cannot connect a gas appliance to an installation unless it is suitable and safe to use for the gas with which it was designed to be used and fitted with a compliance label.

36

An investigator can remove a compliance plate from a installation if satisfied a gas appliance connected to it is not in safe working order

48

It is an offence to remove a defect notice from a gas appliance unless the defect has been rectified or found not to exist

49

Regulations may make provision for or with respect to gas installations and the carrying out of gas fitting work

83A (e) Gas fitting work must be carried out by qualified persons

21

Gas fitting work must comply with current Australian Standards for gas installations, pressure piping and storage and handling of LPG

22

When working on installations supplied from a gas network: gas fitters must test installations worked on, and anything connected to the installation for defects and issue a certificate of compliance

25-26

Requirements for gas fitters to test installations worked on, and anything connected to the installation for defects and issue a certificate of inspection - when working on installations not supplied from a gas network

27-29

The person responsible for carrying out gas fitting work on a gas installation must detach the compliance plate prior to work and attach a compliance plate after the work is complete

30

A person responsible for carrying out as fitting work on a gas installation must attach a defect notice if there is a patently defective gas installation, or patently defective container, regulator or appliance connected to the installation

31

A gas installation cannot be sold without a compliance plate attached

32

A person must not use a gas installation unless a compliance plate is attached.

33


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A person must not use a gas installation, container, regulator or appliance if a defect notice is attached. A person must not supply gas to a gas container that is connected to a gas installation unless a compliance plate is attached. A person must not supply gas to a gas container that is connected to a gas installation if a defect notice is attached.

34

A person must not connect a gas container to a gas installation unless a compliance plate is attached, it is suitable for the gas and it is approved by the appropriate Agency. A person must not connect a gas container to a gas installation if a defect notice is attached to either the container or installation.

35

A person must not connect a gas regulator to a gas installation unless it is suitable and safe for the gas and is approved

36

A person must not connect a gas appliance to a gas installation unless it is certified and has a compliance label and is suitable and safe

37

Requirements of compliance plates what must be inscribed on them and how they must be attached

46

A person must not attach a compliance plate or anything resembling a compliance plate to a gas installation

47

An investigator may remove a compliance plate if satisfied the installation or anything attached to it is not in safe working order.

48

A person must not remove a defect notice from a gas installation, gas container, gas regulator or gas appliance until the patent defect has been rectified or found not to exist.

49

The occupier or owner of premises with a gas installation must ensure the installation is appropriately maintained.

50

A person must not sell any gas regulator unless it is suitable and safe and approved.

51

A person must not connect any gas regulator to a gas container unless it is suitable and safe and approved.

52

The occupier or owner of the premises at which a serious gas accident occurs must notify the Director General of the accident and provide certain details.

53

Regulations may make provision for or with respect to autogas installations and the carrying out of autogas work

83A (e1) After completing autogas work on an autogas installation the person responsible for the work must inspect all cylinders and regulators connected and must test the whole installation for patent defects.

38

A certificate of inspection to the owner or person controlling or managing the installation and the Director-General. The certificate must be in an approved form and if it indicates the installation is defective must specify what work needs

39


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to be done to rectify. A copy of the certificate must be kept for 5 years and ceases to have effect if a further certificate of inspection is issued. The person responsible for carrying out autogas work must attach a compliance plate to the installation after it has been tested.

40

The person responsible for fitting an autogas installation to a vehicle must ensure that an identification label in the correct form is attached to the outside of the vehicle in a conspicuous manner.

41

A person must not sell any gas cylinder for use in connection with an autogas installation unless it is suitable for use with the gas it is designed for and is approved by the appropriate Agency.

42

A person must not use a vehicle to which an autogas installation is fitted unless a compliance plate is attached and an identification label is attached to the vehicle

43

A person must not supply gas to a gas cylinder that is connected to an autogas installation unless a compliance plate is attached.

44

A person must not connect a gas cylinder to an autogas installation unless a compliance plate is attached.

45

Requirements of compliance plates what must be inscribed on them and how they must be attached.

46

A person must not attach a compliance plate or anything resembling a compliance plate to a gas installation.

47

An investigator may remove a compliance plate if satisfied the installation or anything attached to it is not in safe working order.

48

Regulations may make provision for or with respect to the examination and testing of gas meters

83A (f) Gas supply to be metered if supplied by means of a gas network. Director-General can exempt any person from this requirement in writing.

55 (Schedule 1, Clause 2)

The Director-General may authorise persons to test and seal and stamp gas meters and to test and calibrate equipment used for testing gas meters. The Director-General can subject the authority to conditions which must be complied with.


An authority holder must lodge a description of the procedures to be used by the person for testing gas meters of gas meter testing equipment.


A person must not sell or install a gas meter for the purposes of measuring for revenue purposes unless the meter has been tested, sealed and stamped under this Schedule.


The owner of a gas meter used for registering the supply of gas must cause it to be in-service tested and resealed in accordance with the owners program if approved or at intervals



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required by the Director General for a particular meter or class of meters, and at any time the Director-General notifies the owner that the gas meter may be defective or inaccurate. An owner may lodge with the Director-General a program for the in-service testing and resealing of meters owned by the owner. If the owner of a gas meter suspects the meter is inaccurate or the seal is broken or illegible they must arrange to have it tested. If the meter is inaccurate the owner must notify any interested party, record particulars, keep records for 2 years and repair, replace or adjust the meter as appropriate.


An interested party may ask the owner of a gas meter to arrange to have the meter tested. The owner may request reasonable payment in advance of the testing and is not required to test the meter if the party refuses to pay. If the meter is found to be inaccurate the payment must be refunded and the meter must be fixed or replaced. The Director-General may set a maximum fee for testing a meter.


The Director General may with occupier agreement. examine or test any gas meter installed on premises for the purpose of registering the supply of gas to those premises. The testing or examination can be done on site or the meter can be taken away. If the meter is over a certain pressure notice must be given and a suitably qualified person must assist to ensure it is safely recommissioned. If the Director-General believes it is unsafe or not convenient to test on site the Director-General may require the meter to be delivered to a specified testing place. If the meter is found to be inaccurate it must be replace, repaired or adjusted.


Gas meter testing equipment is not suitable for use in testing a gas meter unless it has been tested and calibrated by an approved method by a person authorised or under supervision of an organisation approved by the Director-General. The Director-General may also declare and organisation in another jurisdiction approved by Order.


A person must not test a gas meter unless authorised. A person must not remove, deface, or break a gas meter seal or stamp without



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notifying the owner of the meter and the Director-General. A person must not cause or knowingly allow a gas meter to be inaccurate, or prevent a gas meter from registering an amount of gas supplied, or otherwise affect the metrological performance of a gas meter without notifying the owner and the Director-General.

Regulations may make provision for or with respect to fees, charges and payments relating to the matters in paragraph (a) – (f)

83A (g) Fees for gas meter testing and examination etc is $131 for the first hour and $33 for each quarter hour thereon.

55 (Schedule 1, 12)

Regulations may make provision for or with respect to exemptions (or the granting of exemptions) relating to the matters in paragraph (a) – (g)

83A (h) The Director –General may provide exemptions in writing and exemptions can have conditions.

Cl 54

7. IMPACT ASSESSMENT OF THE PROPOSED REGULATION The proposed Regulation is a redraft of the current Regulation, with some amendments including the addition of provisions to:

• allow the Director-General to make exemptions; • notify the Director General of any serious gas incident; • require occupiers and owners to have some responsibility to maintain gas

installations; • require that certificates of compliance and inspection are provided to the Director-

General to inform regulatory work; • require gas fitting work is done to the new Australian Standard AS/NZS 5601:2010; • amend maximum penalty levels to reflect the fact Fair Trading does not regulate

workplaces and to ensure consistency across Fair Trading administered legislation; • update the requirements of identification labels for autogas work in line with the

Australian Standards; • amend the information on compliance labels to keep up-to-date with modern

appliances; and • some minor drafting edits, reorganisation and corrections.

The impact of each of the clauses of the proposed Gas Supply (Consumer Safety) Regulation 2012 on the industry, the community and government is assessed below. A copy of the proposed Regulation is in Appendix A to this Regulatory Impact Statement.

7.1 Impact of individual clauses of the proposed regulation

7.1.1 Part 1 Preliminary (clauses 1 to 3) Provision Part 1 – Preliminary – cites the name of the proposed regulation (clause 1), specifies the proposed commencement date of 1 September 2012 (clause 2), defines certain terms and phrases as used in the proposed regulation (clause 3) and provides that the Regulation does not apply to certain gas installations, autogas installations and appliances (clause 4).


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Amendments have been made to definitions to update references to other legislation and remove those that are no longer necessary. Comment Minor drafting changes have been made to the definitions including moving the definitions of AS/NZ 1425 and AS/NZ 2739 from Part 4 of the Regulation to Clause 3, style redrafting of the definition of certification authority, removal of the definition of “employee” as it is not relevant to the Regulation and updating the reference to the new Work Health and Safety Act 2011. Costs and benefits of proposed clauses The provisions are machinery in nature and no costs arise from them. The clauses are necessary for the operation of the Regulation.

7.1.2 Part 2 Gas appliances (clauses 4 to 20)

7.1.2.1 Restrictions on sale and supply of gas appliances (Clause 5)

Objective To ensure that only appliances certified as safe are sold or supplied and have a compliance label with certain particulars for identification. Appliances are “certified” that they comply with appropriate standards (usually Australian Standards) and are safe to use. Provision Clause 5 provides that it is an offence to sell or supply a gas appliance or type of gas appliance unless it is certified and a compliance label with certain particulars is affixed. The compliance label must contain the registration mark of the certifier, an identification number and information about the type of gas that can be used by the appliance. The maximum penalty is 100 penalty units for a corporation or 25 penalty units in any other case. Comment Minor drafting changes have been made to sub-clause 1 (b), these amendments are stylistic and in no way alter the way the provisions work. Costs The requirement that appliances be certified imposes costs for manufacturers and importers of appliances. The costs per appliance would be a relatively small component of the total cost of the appliance and would be passed on to consumers. The cost of affixing a compliance label on the appliance is minimal and would add a very minor cost to the total cost of the appliance. There is a cost to government in consumer and trader education and compliance and enforcement action in relation to ensuring appliances are certified and labelled. Benefits There are high consumer protection benefits and public safety benefits as a result of ensuring unsafe appliances are not sold in the New South Wales marketplace. Requiring that a compliance label is affixed to the appliance and mandating what information is on the label assists with the auditing and enforcement of appliance certification and provides certain information to tradespeople installing appliances. The certification label is also a visual reminder and guarantee for consumers that the appliance is safe to use. Alternative options


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An alternative option is to allow importers and manufacturers unrestricted access to the NSW marketplace for sale of all gas appliances, without any certification or independent assurance that they are safe or appropriate to use in Australian conditions. Appliances could continue to be required to be certified but carry no certification label indicating the fact it has been certified, who certified it, any identification number and what gas it can use, relying instead on manufacturers and importers keeping adequate records and informing tradespeople and consumers about how the appliance can be used. Another alternative option would be to increase the maximum penalty amount all penalty offences relating to the requirements for the certification and labelling of gas appliances. Fair Trading’s compliance activities in relation to the requirements gas appliance certification and labelling have identified instances of breaches of the Regulation. Given that certification and labelling are fundamental to the integrity of the safety of gas appliances so that the community can have the confidence to rely on the fact that appliances being sold are safe, the maximum penalties have been reviewed and it has been recommended they are increased. It is currently considered that the maximum penalties be increased to 200 penalty units in the case of a corporation and 50 penalty units in any other case. Question Do stakeholders support an increase in maximum penalties to ensure Fair Trading can appropriately respond to breaches of the Regulation relating to gas appliance safety?

7.1.2.2 Restrictions on connection of gas appliances to certain gas installations (Clause 6)

Objective To make it an offence to attach an appliance to gas installation, that is supplied from a gas network, unless it is certified. Provision Clause 6 applies to gas installations which are supplied from a gas network and provides that a person must not connect a gas appliance to a gas installation or modify a gas appliance attached to a gas installation unless the appliance is certified. The maximum penalty is 100 penalty units for a corporation or 25 penalty units in any other case. Costs The cost of this clause is minimal as it supports the preceding provision which requires all gas appliances to be certified in order to be sold or supplied. While there could be some additional costs if a person was to own, or buy an uncertified appliance from another jurisdiction to get it certified before connection, however this is unlikely. If a person was found to have connected a non-certified appliance to a gas installation supplied from a gas network there is a maximum penalty for a corporation of 100 penalty units and in any other case of 25 penalty units. There is a cost to government in consumer and especially trader education and compliance and enforcement action however this is likely to be minimal given the requirements of clause 5. Benefits There are significant public safety benefits as a result of ensuring only safe appliances are connected to a gas network. If an unsafe appliance was connected to a gas network it could potentially affect the gas network and many other consumers and households. Alternative options


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An alternative option would be to not make it an offence for uncertified appliances to be attached to a gas network and rely solely on gas-fitters and consumers to ensure they do not buy and connect uncertified gas appliances. Another alternative option would be to increase the maximum penalty amount of all penalty offences relating to the requirements for the certification and labelling of gas appliances. Fair Trading’s compliance activities in relation to the requirements gas appliance certification and labelling have identified instances of breaches of the Regulation. Given that certification and labelling are fundamental to the integrity of the safety of gas appliances so that the community can have the confidence to rely on the fact that appliances being sold are safe, the maximum penalties have been reviewed and it has been recommended they are increased. It is proposed that the maximum penalties be increased to 200 penalty units in the case of a corporation and 50 penalty units in any other case. Question Do stakeholders support an increase in maximum penalties to ensure Fair Trading can appropriately respond to breaches of the Regulation relating to gas appliance safety?

7.1.2.3 Certification of gas appliances (Clause 7-9)

Objective To ensure only authorised persons shall certify gas appliances; that the Director-General can authorise a person or organisation to certify gas appliances (certification authority) on application; and that certain conditions can be placed on a certification authority by the Director-General. Provision Clause 7 prohibits a person from certifying a gas appliance or type of gas appliance unless the person holds a certification authority or is a person authorised by the holder of a certification authority to certify gas appliances on the holder’s behalf. The maximum penalty is 100 penalty units for a corporation and 25 penalty units in any other case. Clause 8 provides that a person or organisation that wishes to become authorised to certify appliances must make an application in writing to Fair Trading in the approved form with the appropriate fee and a copy of the mark used to identify the authority holder. The Director-General may either grant or refuse the application and any authority granted must be in writing. Clause 9 provides that specific and necessary conditions can be placed on a certification authority when it is issued, or impose or vary conditions at a later date with notice. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case if a certification authority does not comply with the conditions imposed. Comment Minor drafting changes have been made to Clause 8. These amendments are stylistic and in no way alter the way the provisions work. Costs The requirement that only authorised people can certify has costs for those persons or corporations who apply for the authority. These costs include ensuring they have the necessary skills and ability and business framework to operate, and also costs in providing information and evidence to Fair Trading for approval. There are costs imposed on the certifying authorities in meeting any conditions placed upon them, such as a requirement to keep professional indemnity insurance or having access to an appropriate laboratory for testing.


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If a person was found to have certified an appliance without authority there is a maximum penalty for a corporation of 100 penalty units and in any other case of 25 penalty units. If a certifying authority does not comply with the conditions placed upon it as part of the application approval, there is a maximum penalty for a corporation of 100 penalty units and in any other case of 25 penalty units. These provisions also by proxy impose costs for manufacturers and importers of appliances in having them certified by authorised persons. Any conditions which impose costs on the certifier directly impose costs on importers in terms of applications for an appliance to be certified. Clause 8 creates a power for NSW Fair Trading to charge an application fee. While no fees are being charged at this time, cost recovery fees will be introduced for future applications and current certifiers when the duration of their current certification authority ends. These fees will include a fee for an initial application which will include assessment and processing and an annual fee which will cover the actual costs to Government for annual audits, review and assessments. There are other minor administrative costs in terms of making an application and providing information and advice to Fair Trading in terms of the skills, experience and other matters related to their business. There are also administrative costs to Government in terms of accepting assessing and determining any application for a certification authority. These costs will eventually be met by the application fee. There are also costs to government in terms of consumer and trader education and compliance and enforcement action. Benefits Limiting the certification of appliances to only those persons who are appropriately qualified and organisations that have the appropriate business framework, provides significant benefits by ensuring that certification is done properly and only safe appliances are certified and enter the marketplace for sale. Unsafe appliances are not certified and cannot be sold or supplied. By restricting certification to those approved by Government it also provides the ability to trace any appliance back to the certifier supporting effective enforcement. By imposing additional conditions on certification authorities such as requiring them to have access to an appropriate laboratory and requiring them to have professional indemnity insurance provides benefits by ensuring that appliances are certified appropriately and tested under laboratory conditions and that appropriate insurance cover is held. Alternative options Alternatives to these provisions include:

• allowing anyone to self nominate as a certifier and certify appliances as safe as they deem fit. This however would not place any legitimacy in the certification system and it would be difficult to enforce the requirement to certify appliances if there was no way to appropriately trace or determine who certified the appliance.

• allowing anyone to register with the Director-General that they will certify products

and for the Director-General to accept them as certifiers without allowing the Director-General to ensure that they have the skills and ability to certify. This would mean the Director-General would not have the means to prevent a person from becoming a certifier even if they were not capable of appropriately certifying that an appliance was safe.


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• To allow anyone to certify an appliance but impose no conditions on the certifying authority and allow them to make the financial and business decisions and weigh up their risks as to the most appropriate methods of certifying. This could result in certification authorities all certifying to different standards.

• Another alternative option would be to increase the maximum penalty amount of all

penalty offences relating to the requirements for the certification and labelling of gas appliances. Fair Trading’s compliance activities in relation to the requirements of gas appliance certification and labelling have identified instances of breaches of the Regulation. Given that certification and labelling are fundamental to the integrity of the safety of gas appliances, the maximum penalties have been reviewed and it has been proposed that they be increased. It is currently considered that the maximum penalties be increased to 200 penalty units in the case of a corporation and 50 penalty units in any other case.

Question Do stakeholders support an increase in maximum penalties to ensure Fair Trading can appropriately respond to breaches of the Regulation relating to gas appliance safety?

7.1.2.4 Duration, cancellation and suspension of certification authorities (Clause 10-12)

Objective That an authority to certify appliances will have an expiry date and that the Director-General can cancel or suspend authorities if necessary. Provision Clause 10 provides that an authority is for the duration for the period specified in the authority provided to the applicant on approval. Clause 11 provides that the Director-General may cancel a certification authority by notice served on the authority holder. Clause 12 provides that the Director-General can suspend a certification authority and serve a show cause notice on the authority holder if of the opinion there are grounds for cancelling the authority. The show cause notice must be in writing and specify a period of not less than 21 days after the notice is served for the holder to respond. Costs There will be administrative and time costs to a certification authority in making a further application to ‘renew’ their certification authority after the duration of the authority lapses. The application fee to accompany any future application will also be included as a cost for the certification authority. There would be significant financial costs to a certification authority if the Director-General cancelled an authority. However this sort of action would only ever be taken in the most serious circumstances where the Director-General believed taking such action was in the interests of consumers and the community or there was evidence of significant and systematic wrong doing on the part of the certifier. There would also be internal reviews and show cause notices which would provide procedural fairness in the event of any suspension or cancellation. Improper conduct by an authority holder can be dealt with under the penalty provisions of clause 7 or 9 in less serious cases. There are also administrative costs to Government in terms of assessing any ‘renewal’ of a certification authority and in suspending or cancelling an authority. Benefits


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Issuing an authority for a set period of time provides benefits in terms of ensuring that Fair Trading reviews the on-going appropriateness of authority holders to certify appliances for the marketplace. The benefits provided by the cancellation and suspension provisions are that an authority holder who engages in serious improper conduct will have their authority removed and be unable to operate in the NSW marketplace. This is fundamental to the integrity of the certification system and the principle aim of keeping unsafe appliances from the NSW marketplace. Alternative options An alternative option would be to allow a certification authority to keep their authority to certify appliances indefinitely, regardless of any behaviour or the ongoing appropriateness of the holder to certify appliances regardless of evidence to the contrary. Another alternative option would be to specify in the Regulation, the maximum time period that a certification authority will last, such as “not more than 5 years”. Five years is the current time period a certification authority is granted as a condition set by the Director-General, having such a time period specified in the Regulation would increase transparency for the industry. Question Do stakeholders support the maximum duration of a certification authority being not more than five years?

7.1.2.5 Offences relating to compliance labels (clause 13)

Objective To ensure a certified gas appliance only carries the appropriate and correct compliance label. Provision Clause 13 provides that it is an offence to:

1. attach a compliance label to a gas appliance or type of gas appliance that is not: • a certified gas appliance; • a compliance label in relation to that appliance or type of gas appliance • in the approved form.

2. remove a compliance label that has been attached to a gas appliance or type of gas appliance in accordance with the Regulation unless the person is authorised to do so

3. falsify the particulars inscribed on a compliance label or attach a compliance label that is inscribed with false particulars to the gas appliance or type of gas appliance.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Costs The provisions impose potentially significant costs in the form of prosecutions and penalties to any person found to be attaching inappropriate, incorrect or false compliance labels or removing compliance labels without authority. There are also costs to government in terms of enforcing these provisions relating to compliance labels. Benefits It is fundamental to the operation of the certification process that the appropriate compliance label is attached to an appliance as it is the primary evidence that the appliance has been appropriately certified and is safe to use. This provision protects the integrity of compliance labels and imposes significant penalties if labels are tampered with.


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Alternative options An alternative would be to remove the penalties for attaching inappropriate, incorrect or false compliance labels which would remove the ability to enforce the requirement and remove the ability to rely on a compliance label to check if an appliance is safe. Another alternative option would be to increase the maximum penalty amount all penalty offences relating to the requirements for the certification and labelling of gas appliances. Fair Trading’s compliance activities in relation to the requirements gas appliance certification and labelling have identified instances of breaches of the Regulation. Given that certification and labelling are fundamental to the integrity of the safety framework for gas appliances, the maximum penalties have been reviewed and it has been proposed that they be increased. It is currently considered that the maximum penalties be increased to 200 penalty units in the case of a corporation and 50 penalty units in any other case. Question Do stakeholders support an increase in maximum penalties to ensure Fair Trading can appropriately respond to breaches of the Regulation relating to gas appliance safety?

7.1.2.6 Division 2 Unsafe gas appliances - Powers of Investigators (Clause 14)

Objective To ensure investigators have the power to prohibit the sale or supply of unsafe gas appliances. Provision Clause 14 provides that if an investigator has reasonable grounds to believe a gas appliance is unsafe to use, and the death of or injury to, any person or damage to any property may arise out of the use of the appliance the sale of the appliance can be prohibited. This is done by the investigator attaching a label to the appliance to that effect or serving a notice on a person that the appliance or type of appliance cannot be sold or supplied. A notice can also be varied or revoked by serving a notice in writing to that effect on the person concerned. Costs This provision has the potential to impose significant costs on retailers, importers or manufacturers as it may prohibit them from selling or supplying an appliance that they have in stock. There are also costs to government in terms of enforcing these provisions and conducting compliance programs to ensure that unsafe appliances are not available in the NSW marketplace. Benefits The benefits of this provision are that it allows Fair Trading to keep unsafe appliances out of the marketplace which if sold or supplied to consumers or traders could have significant costs for the community in the event of a fire or explosion caused by the unsafe gas appliance. There is also an indirect benefit provided to manufacturers, importers and retailers in that they are prevented from selling an appliance which if sold could leave them liable for significant compensation costs should they be found responsible for supplying an unsafe appliance which cause, death, injury or damage to property. Alternative options An alternative option would for Fair Trading to have no power to acting to prohibit the sale or supply of appliances which Fair Trading investigators have reason to believe are unsafe. However this would seriously undermine the ability of Fair Trading to meet the objective of excluding unsafe gas appliances from the NSW marketplace.


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7.1.2.7 Nature, manner or orders and when they may be made (Clause 15-17)

Objective To provide a requirement regarding the manner and nature of orders and when they can be made. Provision Clause 15 provides that the Director-General can make, vary or revoke an order:

• to prohibit the sale or supply of a gas appliance or type of gas appliance; • give direction for the recall of an appliance or type of appliance; • give direction for action to be taken to render the appliance or type of appliance

safe to use. Clause 16 provides that the Director-General may make an order only if they have reasonable grounds to believe that:

• an appliance or type of appliance is unsafe to use; and • the death of, or injury to any person or damage to property may result from the use

of the appliance. Clause 17 provides that an order may be made in writing addressed to the person intended to be bound by it or may be addressed to several persons or all persons and published in the Gazette or other appropriate publications. The order is binding and takes effect on the day it is served or at a later date specified in the order. Costs This provision has the potential to impose significant costs on retailers, importers or manufacturers as they support the ability of the Director-General to prohibit them from selling or supplying an appliance that they have in stock, or fixing an appliance to make it safe or recalling an appliance. There are also costs to government in administering the issuing of an order. However generally these are machinery provisions which support other provisions regulation and direct costs are minimal and only to government. Benefits While these provisions are essentially machinery in nature, the provisions relate to consumer safety and enable the Director-General to prohibit retailers and wholesalers from selling or supplying an appliance that they have in stock, or fixing an appliance to make it safe or recalling an appliance. They also provide a clear sense of the procedure and obligations of retailers and wholesalers if an appliance is believed to be unsafe. Alternative options An alternative is to not provide for orders to be made. This would not support the preceding provisions of the regulation making enforcement difficult. It would be unclear what responsibilities and procedures were in place for retailers and suppliers when an appliance is found to be unsafe.

7.1.2.8 Failure to comply with an order (Clause 18)

Objective To provide that it is an offence to fail to comply with an order made under this Division. Provision Clause 18 makes it an offence for a person to sell or supply a gas appliance subject to a prohibition order or contravening, neglecting or refusing to comply with any direction given by order of the Director-General. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Costs


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This provision has the potential to impose significant costs on retailers, importers or manufacturers in terms of a penalty for failing to abide by an order of the Director-General. There are also costs to government in undertaking prosecution action or investigations into such action by a retailer, importer or manufacturers. Benefits The benefits of these provisions are that they enable the Director-General to make an order to prohibit retailers and wholesalers from selling or supplying an unsafe appliance that they have in stock, or fixing an appliance to make it safe or recalling an appliance. Alternative options An alternative option would be to remove the penalty provisions and therefore not be able to prosecute businesses who do the wrong thing. However, If no penalty existed there would be less incentive for businesses to abide by the law. Another alternative option would be to increase the maximum penalty amount for all offences relating to the requirements for the certification and labelling of gas appliances. Fair Trading’s compliance activities in relation to the requirements gas appliance certification and labelling have identified instances of breaches of the Regulation. Given that certification and labelling are fundamental to the integrity of the safety framework for gas appliances, the maximum penalties have been reviewed and it has been proposed that they be increased. It is currently considered that the maximum penalties be increased to 200 penalty units in the case of a corporation and 50 penalty units in any other case. Question Do stakeholders support an increase in maximum penalties to ensure Fair Trading can appropriately respond to breaches of the Regulation relating to gas appliance safety?

7.1.2.9 Division 3 Miscellaneous Gas Appliances Certification Register and change of particulars (Clause 19-20)

Objective That a register of persons or organisations granted a certification authority be kept by the Director-General and authorities must notify the Director-General of any changes of their particulars kept on the register. Provision Clause 19 provides that the Director-General must keep a register of all persons or organisations authorised to certify gas appliances. The register must contain the following details:

• the name of the person or organisation; • the address of the person or organisation being the principal place of residence or

the registered office or place of businesses in NSW; • the registered mark of the person or organisation; and • any other details supplied in the application for the certification authority that the

Director-General considers should be entered on the register. Clause 20 provides that the certification holder must notify the Director-General, within 14 business days, if their name or address changes. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Costs The provisions impose minor administrative costs to certifying authorities in terms of supplying information in an application and if their particulars change. There is the potential for significant costs arising from court action if the Director-General is not notified of changed circumstances. There are also minor administrative costs to government in


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terms of maintaining a register and updating any details when informed of changes and potentially more significant costs to enforce and prosecute should the provisions be ignored. Benefits Ensuring that Fair Trading has access to accurate, complete, centralised records of all authority holders provides benefits through administrative efficiency. Fair Trading is able to quickly check details and trace certifiers through their registered marks as part of their normal regulatory functions. Alternative options An alternative option is to not have a central record or not require certifiers to update their details when they change. This would make administration of the proposed regulation less efficient either through a more difficult process to contact and trace certifiers and their records or by having an out of date register which would also make it more difficult to contact and trace certifiers.

7.1.3 Part 3 Gas fitting work (clauses 21-22)

7.1.3.1 Gas fitting work to be carried out by qualified persons and comply with certain standards (clauses 21 and 22)

Objective To ensure that only appropriately qualified people carry out gas fitting work and that gas fitting work complies with the appropriate Australian Standards. Provision Clause 21 provides that a person must not carry out gas fitting work or employ any other person to carry out gas fitting work unless they are authorised to do so under:

• the authority of an appropriate supervisor certificate; or • the authority of an appropriate tradesperson certificate and under the general

supervision of the holder of an appropriate supervisor certificate; or • the immediate supervision of the holder of an appropriate supervisor certificate.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Clause 22 of the proposed regulation provides that a person must not carry out gas fitting work unless it is carried out in accordance with whichever of the following Standards applies to that type of work:

• AS/NZS 5601 2010 Gas installations • AS 4041 2006 Pressure Piping • AS/NZS 1596 2008 The storage and handling of LP gas.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Differences from Gas Supply (Consumer Safety) Regulation 2004 The Australian Standard for Gas installations AS5601 has been updated to the recent 2010 version. This is a significant change as the Standard allows performance based work to be performed which Fair Trading will need to properly assess to ensure effective compliance. There is an additional 2011 amendment to AS/NZS 5601 which has not been included at this stage.


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The maximum penalty offences for clause 21 and 22 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Questions

• Do stakeholders support the update in the Regulation to work to AS5601:2010? • Will the industry will be able to immediately work to this Standard when the

regulation commences? • What factors should Fair Trading consider to ensure performance based work is

appropriate for the work required? • Should the 2011 amendment to AS/NZS 5601 be included?

Costs In terms of the requirement that gas fitters have licences in order to work, this requirement supports the existing requirement of the Home Building Act which imposes licensing on gas fitters. While there are significant costs to anyone wishing to be a gas fitter these are not imposed by this regulation. There are potentially significant costs to anyone who is not licensed and does gas fitting work through the imposition of penalties and likely prosecution action. These costs are necessary to ensure that only qualified people safely and appropriately do the work. There are costs imposed by the requirement to do work in accordance with the standards. While gas fitters would learn to work by the standards during their qualifications and or apprenticeships they would have to maintain the knowledge and keep up with any changes. Benefits The benefits of requiring that gas fitters have a licence before they can do work is that it means only people who have the appropriate skills and ability are doing the work. The fact that they are licensed with Fair Trading also means any substandard work can be traced to the licensee and appropriate disciplinary action can be taken by Fair Trading. Standards are developed to ensure the safety and reliability of work and products and are usually developed specifically for the Australian environment. As such, ensuring gas fitting work is done to these specific standards means that any gas fitting work in NSW is done to standards that have been tested and developed to guarantee safe and reliable gas fitting work specifically for the Australian environment. Alternative options An alternative option is to not specify that a licence is required to do gas fitting work. However this would not support the Home Building Act which requires that gas fitters have a licence to do work. An alternative to requiring work to be done to specific standards would be not to require work to be done to any standards. However this would likely lead to substandard or unsafe work being done. Another alternative is to require additional standards to which gas fitting work must adhere. Questions: Are there any additional appropriate standards that could be required under the regulation?


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7.1.4 Part 4 Gas fitting work (clauses 23-24)

7.1.4.1 Autogas work to be carried out by qualified persons and to comply with certain standards

Objective To ensure that only appropriately qualified people carry out autogas work and that autogas work complies with the appropriate Australian Standards. Provision Clause 23 requires that a person must not carry out autogas work unless they have the appropriate trade certificate, provisional trade certificate or are under supervision of a person with an appropriate trade certificate. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Clause 24 requires that a person must not carry out autogas work on an autogas installation unless it is done in accordance with:

• AS/NZS 1425:2007 LP gas fuel systems for vehicle engines; or • AS/NZS 2739:2009 Natural Gas (NG) fuel systems for vehicle engines.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment: The maximum penalty offences for clause 23 and 24 have been amended to have only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime had three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. As previously identified, the definitions of the two standards AS/NZ 1425 and AS/NZ 2739 have been removed and placed in the definitions at Clause 3. Costs The requirement that autogas tradespeople be licenced and have trade certificates in order to work, supports the Motor Vehicle Repairs Act 1980 which requires motor vehicle repairers including those working in autogas to be licensed. While there are significant costs to anyone wishing to be an autogas tradesperson these are not imposed by this regulation. There are potentially significant costs to anyone who is not licensed and does autogas work through penalties and likely prosecution action. These costs are necessary to ensure that only qualified people undertake this work. There are costs imposed by the requirement to do work in accordance with the standards. While autogas tradespeople would learn to work by the standards through on the job training and structured learning through apprenticeships, they would have to maintain the knowledge and keep up with any changes. Benefits The benefits of requiring that autogas tradespeople have the appropriate occupational licence before they can do work is that it means only people who have the appropriate skills and ability are doing the work. The fact that they are licensed with Fair Trading also


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means any substandard work can be traced to the person who performed the work and appropriate disciplinary action can be taken by Fair Trading. Standards are developed to ensure the safety and reliability of work and products and are usually developed specifically for the Australian environment. As such, ensuring autogas work is done to these specific standards means that any autogas work undertaken in NSW is done to standards that have been tested and developed to guarantee safe and reliable work specifically for the Australian environment. Alternative options An alternative option is to not specify that a licence is required to do autogas work. However this would not support the Motor Vehicle Repairs Act which requires that autogas tradespeople have a licence to do work. An alternative to requiring work to be done to specific standards would be not to require work to be done to any standards. However this would likely lead to substandard or unsafe work being done with related risks to consumers. Another alternative is to require additional standards to which autogas work must adhere. Questions: Are there any additional appropriate standards which could be required under the Regulation?

7.1.5 Part 5 Gas installations (supplied from a gas network) (clauses 25-26)

7.1.5.1 Application, testing for defect and certificates of compliance (clause 25-26)

Objective To ensure that when gas fitting work is carried out on an installation supplied by a gas network that the installation and any appliance connected to it is tested for defects and a certificate of compliance in the approved form is issued to the owner, network operator and Fair Trading and a copy kept by the gas fitter. Provisions Clause 25 provides that this part applies only to gas fitting work carried out on a gas installation to which gas is supplied from a gas network or for the purpose of connecting a gas appliance to such a gas network. Clause 26 provides that immediately after undertaking gas fitting work on a gas installation, the gas fitter must test the installation for defects and inspect all gas appliances connected to the installation. The gas fitter must issue the owner or person in control of the installation a certificate of compliance and then send a copy of the certificate to the relevant network operator and Fair Trading within 7 days. The certificate of compliance must be in the approved form, indicate what work has been carried out, state that the gas fitting work has been carried out in accordance with the standards and indicate whether or not the installation is in safe working order. The gas fitter must also keep a copy of the certificate for 5 years and there is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case for failure to keep records. Comment The Regulation has been updated to require a copy of the certificate of compliance is provided to Fair Trading as the regulator of gas-fitting work. Fair Trading will then be able to use this information to analyse and assess gas fitting work performed and develop risk based compliance campaigns. Currently there is no appropriate mechanism for Fair Trading to be properly informed of work being done across the state and to check it meets


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the requirements of this Regulation. This new requirement will assist Fair Trading in administering the Regulation and ensuring more effective compliance and enforcement. The maximum penalty offences for clause 26 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This provision imposes costs on gas fitters in terms of the extra work requiring them to check any appliance attached to the installation. There are also administrative costs in completing the certificate of compliance and providing a copy to the owner, the network operator and Fair Trading and in keeping the certificate for the 5 year period. While the new requirement to provide Fair Trading with a copy of the certificate of compliance will result in minor additional costs to gas fitters, this will be negated by the introduction of an electronic system which will allow information to be provided in a less costly manner. There are costs to government in terms of enforcement and compliance of the provision. Benefits These provisions provide significant benefits by ensuring that upon completion of any gas fitting work, testing and inspection takes place which supports the objects of the Regulation of consumer safety. Defective installations or appliances or substandard work can impact directly on the gas network and the wider community. The compliance certificate provides significant benefits in terms of traceability and risk assessment by the regulator and/or network operator. Consumers benefit by having a record of what work was done and what standard it was carried out to and the confidence and guarantee that the installation was in safe working order when the certificate was issued. The requirement to keep records also benefits the gas fitter by enabling them to check and see what work they undertook on an installation should they need to if asked by a regulator or network operator. Alternative options An alternative option is to remove the need for testing of installations checking appliances connected to them and removing the need for certificates of compliance to be issued. Alternatively further information could be provided on the certificate to clarify why work was done in a certain way, this could assist the regulator and the gas fitter when assessing performance based work under the new Australian Standard AS 5601:2010. A further alternative option being considered is to clarify what is meant by “immediately” after completing work in relation to the issuing of the certificate of compliance. The draft Plumbing and Draining Regulation provides for time periods such as 2 days. Clause 26 could be amended to clarify that a certificate of compliance must be provided to the owner, Regulator and network operator within 2 days. Question

• Do stakeholders support the additional requirement to provide Fair Trading with a copy of the certificate of compliance?

• Do stakeholders support a clarification of when a certificate of compliance must be issued?

• Is 2 days the appropriate time period?


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7.1.6 Part 6 Gas installations (not supplied from a gas network) (clauses 27-37)

7.1.6.1 Application of Part (clause 27)

Objective To ensure that Part 6 of the Regulation does not apply to gas installations supplied by a gas network or gasfitting work done to a gas installation or to connect a gas appliance to a gas installation supplied by a gas network. Provision Clause 27 provides that Part 6 does not apply in relation to:

• a gas installation to which gas is supplied from a gas network; or • gasfitting work carried out on a gas installation or for the purposes of connecting a

gas appliance to such a gas installation to which gas is supplied from a gas network.

Costs There are no specific costs resulting from this provision. It is machinery in nature and the costs resulting from each provision affected by it are discussed at 7.1.6. Benefits There are no specific benefits resulting from this provision. It is machinery in nature and the benefits resulting from each provision affected by it are discussed at 7.1.6.

7.1.6.2 Testing for patent defects (clause 28)

Objective To ensure that immediately after completing any gasfitting work on a gas installation, including alterations, extensions or repairs, the installation and any connections must be inspected and tested to ensure it is safe. Provision Clause 28 provides that immediately after completing any gasfitting work comprising the installation of a new gas installation the person responsible must:

• inspect all gas containers, gas regulators and gas appliances connected to the installation; and

• test the whole installation for patent defects. The clause also provides that immediately after the completion of gasfitting work of a gas installation comprising the alteration, extension or repair of an existing gas installation the person responsible must:

• inspect such part of the installation as has been altered, extended or repaired; and • inspect all gas containers, gas regulators and gas appliances connected to such

part of the gas installation that has been altered, extended or repaired; and • test the whole installation for patent defects.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment The maximum penalty offences for clause 28 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered


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legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This provision imposes minor additional costs on gasfitters in terms of the extra time it takes to test the work they have done and inspect anything connected to the installation they worked on. There is also a potential cost in terms of prosecution action if a gasfitter is found to have not properly tested and inspected the gas installation and anything connected to it. There are costs to government in terms of enforcement and compliance of the provision. Benefits The benefits of this clause is that it ensures that after undertaking work the gas fitter tests not only the work done to ensure it is safe, but also examines and inspects connections to the installation to ensure they are safe and not adversely affected by the work completed. Alternative options An alternative would be to not require the gas fitter to test or inspect the work completed.

7.1.6.3 Certificates of inspection (clause 29)

Objective To ensure that following the completion of gas fitting work a certificate of inspection is issues to the owner of the installation. Provision Clause 29 provides that immediately after testing a gas installation upon completion of gas fitting work the person responsible for the work must provide a certificate of inspection to the owner or controller of the installation and Fair Trading. A copy must also go to the usual suppler of gas if the certificate indicates the installation is patently defective. A certificate of inspection must be in the approved form and serial numbered and if it indicates the installation is patently defective it must specify what work needs to be done to rectify it. A certificate must not be issued if the installation is patently defective unless the nature of the defect is indicated on the certificate. A person who issues a certificate of inspection under this clause must keep a copy for 5 years. The certificate ceases to have effect if a further certificate is issued for the same installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment The maximum penalty offences for clause 29 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. The Regulation has been updated to require a copy of the certificate of inspection is provided to Fair Trading as the regulator of gas-fitting work. Fair Trading will then be able to use this information to analyse and assess gas fitting work performed and develop risk based compliance campaigns. Currently there is no appropriate mechanism for Fair


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Trading to be properly informed of work being done across the state and to check that it meets the requirements of this Regulation. This new requirement will assist Fair Trading in administering the Regulation. Costs This clause imposes cost on the gas fitter in terms of the time taken to complete a certificate, the purchase of certificates and retain a copy of the certificate as a record for 5 years. While the new requirement to provide Fair Trading with a copy of the certificate of inspection will result in minor additional costs to gas fitters, this will be negated by the introduction of an electronic system which will allow information to be provided in a less costly manner. There is also a potential cost in terms of prosecution action if a gasfitter is proved to have not properly provided a certificate of inspection as required. There are costs to government in terms of enforcement of the provision. Benefits The benefit of this provision is to provide to the owner of the installation a record which indicates an inspection has taken place and that the installation is safe. If the installation is not safe and patently defective it will also alert the usual gas supplier about this fact as well as tell the consumer what needs to be done to fix the installation. The record requirements provide benefits in terms of traceability of who did the work and benefits the gas fitter by enabling them to check and see what work they did on an installation should they need to if asked by a regulator. Alternative options An alternative option is to not require a certificate of inspection and require the owner to rely on their own records and information they obtained from the gas fitter what was done and when it was inspected. A further alternative option being considered is to clarify for industry and government what is meant by “immediately” after completing work in relation to the issuing of the certificate of inspection. The draft Plumbing and Draining Regulation provides for time periods such as 2 days. Clause 29 could be amended to clarify that a certificate of inspection must be provided to the owner, Regulator and network operator within 2 days. Question

• Do stakeholders support the additional requirement to provide Fair Trading with a copy of the certificate of inspection?

• Do stakeholders support a clarification of when a certificate of inspection must be issued?


7.1.6.4 Compliance plates (clause 30)

Objective To ensure that when gas fitting work is undertaken the previous compliance plate is removed prior to work commencing and a new compliance plate attached after work is complete. Provision Clause 30 provides that following the completion of gas fitting works on a gas installation the gas fitter must:

• Detach any compliance plate from the installation before the work is carried out; and

• Attach a compliance plate to the installation after the work is carried out, unless the certificate of inspection indicates that the installation is patently defective.


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There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case if this clause is not followed. A compliance plate must comply with the requirements set out in clause 44. Comment The maximum penalty offences for clause 30 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes cost to gas fitters in terms of the time taken to detach and attach a compliance plate and costs in terms of buying compliance plates. There is also a potential cost in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefit of this clause is that the presence of a compliance plate demonstrates that an installation is safe and in working order, and the details on the compliance plate assist compliance and enforcement as they allow for traceability of who worked on the installation and the appliances that are attached. The absence of a compliance plate indicates the installation has been found to be patently defective and a defect notice should be attached to the installation. This clause is supported by the following provisions of this part of the regulation which prevent anyone using a gas installation without a compliance plate and prevent gas being supplied to an installation without a compliance plate. There are significant penalties for breaching these requirements as using a installation which is defective could have dangerous or deadly consequences. Alternative options An alternative option is to not require compliance plates to be attached to installations. However the compliance plate allows the consumer, gasfitter and gas suppliers to check the installation is safe to use. Removing the requirement for compliance plates would not support the objectives of the regulation.

7.1.6.5 Defect notices (clause 31)

Objective To ensure a gas fitter attaches a defect notice to an installation or to a gas container, gas regulator or gas appliance if connected to a gas installation and remove the compliance plate. Provision Clause 31 provides that the person responsible for carrying out gasfitting work on a gas installation if satisfied that the gas installation, or any gas container, gas regulator or gas appliance connected to the installation is patently defective, must attach a defect notice to the installation, gas container, gas regulator or gas appliance. If the patent defect cannot be isolated from the installation they must also remove the compliance plate form the installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case if this clause is not followed.


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A defect notice must: • have the word “defect” clearly printed on it in upper case letter in type at least 20

millimetres high; and • be made of a durable and weather-resistant material; and • be securely attached to the gas installation, gas container, gas regulator or gas

appliance in a conspicuous place; and • be in the approved sign.

Comment The maximum penalty offences for clause 31 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes costs on gas fitters in terms of the cost to buy and attach a defect notice and the time taken to remove a compliance plate if it is necessary. There is also a potential cost in terms of any prosecution action. There are costs to government in terms the enforcement of the provision. Benefits The benefit of this clause is that a defect notice and the absence of a compliance plate alerts the owner or anyone supplying gas or the gas fitter that the installation or connected appliance, regulator or container, is patently defective and needs to be fixed or replaced and until this time the installation cannot be used. This clause is supported by the following provisions of this part of the regulation which prevent anyone using a gas installation without a compliance plate and prevent gas being supplied to an installation without a compliance plate. There are significant penalties for breaching these requirements as using an installation which is defective could have dangerous or deadly consequences. Alternative options An alternative option is to not require a defect notice to be attached to the gas installation, gas appliance, container or regulator and not require the compliance plate to be removed. This would not support the objectives of the Regulation.

7.1.6.6 Sale of gas installations (clause 32)

Objective To ensure a gas installation cannot be sold unless a compliance plate is attached. Provision Clause 32 makes it an offence to sell a gas installation unless a compliance plate is attached to the installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment The maximum penalty offences for clause 32 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and


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because Fair Trading does not regulate the workplace, employee specific penalties have been removed. Costs There are costs to importers, manufacturers and retailers to ensure that installations are tested and have compliance plates attached to them before they are sold. There is also a potential cost of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this clause are that the compliance plate indicates to consumers, gas fitters and anyone else that the installation is safe to use. Alternative options An alternative option is to allow a gas installation to be sold without a compliance plate indicating it is safe.

7.1.6.7 Use of gas installations (clause 33)

Objective To ensure a person does not use a gas installation unless a compliance plate is attached; and does not use a gas installation, gas container, gas regulator or gas appliance if a defect notice is attached. Provision Clause 33 makes it an offence to use a gas installation unless a compliance plate is attached. It is also an offence to use a gas installation, a gas container, a gas regulator or a gas appliance to which a defect notice is attached. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The clause does not apply to:

• anything that is done in the course of carrying out gas fitting work; or • anything that is done in the course of testing of a gas installation by a person by

whom gas fitting work is being carried out or by the holder of an appropriate supervisor certificate; or

• the use of a gas installation that is installed in a vehicle, vessel or machine registered under the laws of any State, Territory or country outside NSW.

Comment The maximum penalty offences for clause 33 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs There are potential costs imposed by this provision on any person who owns an installation without a compliance plate or anyone who owns a gas container, regulator or appliance with a defect notice as repair work will be required. This clause also imposes potential costs if an owner is found to be using these items and Fair Trading takes prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits


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There are strong consumer safety benefits arising from this provision as it effectively bans the use of any gas installation that has been deemed to be unsafe or any gas regulator, gas container or gas appliance deemed to be patently defective and therefore unsafe. This prevents potential major accidents or incidents involving gas which could have significant ramifications on an person, property and even community. Alternative options An alternative option would be to not make it an offence to use gas installations without a compliance plate or gas container, regulators or appliances with a defect notice. This would not support the major objectives of ensuring gas consumer safety.

7.1.6.8 Supply of gas for use in gas installations (clause 34)

Objective To ensure that gas is not supplied to a container attached to an installation unless a compliance plate is attached or if a defect notice is attached to the installation. Provision Clause 34 provides that a person must not supply gas to a gas container that is connected to a gas installation unless a compliance plate is attached to the installation. It also provides that a person must not supply gas to a gas container that is connected to a gas installation if a defect notice is attached to the installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The clause does not apply to:

• anything that is done in the course of the carrying out of gasfitting work; or • anything that is done in the course of the testing of a gas installation by a person by

whom gasfitting work is being carried out or by the holder of an appropriate supervisor certificate; or

• the supply of gas to a gas container that is connected to a gas installation that is installed in a vehicle, vessel or machine registered or licensed under the laws of any State, Territory or country outside NSW.

Comment The maximum penalty offences for clause 34 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes potential costs on gas suppliers as they can no longer sell gas to the owner of a gas installation with a defect notice or without a compliance plate. There is the potential to lose sales until such a time as the installation is fixed. There are also potential costs in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits There are strong consumer safety benefits arising from this provision as if effectively prevents gas being supplied to a gas installation that has been deemed to be unsafe or patently defective and therefore unsafe. This prevents potential major accidents or incidents involving gas which could have significant ramifications on people and property. Alternative options


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An alternative option is to allow gas to be supplied however this would not support the other provisions of the Regulation or the main objectives of the Regulation.

7.1.6.9 Connection of gas containers to gas installations (clause 35)

Objective To make it an offence for a person to connect a gas container to a gas installation unless a compliance plate is attached, the container is suitable and safe for use with the gas with which it is designed to be used and is approved by the WorkCover Authority. Provision Clause 35 provides that a person must not connect a gas container to a gas installation unless a compliance plate is attached to the installation, the container is suitable and safe for use with the gas with which it is designed to be used and it is approved or an approved type by the WorkCover Authority. A person must not connect a gas container to a gas installation if a defect notice is attached to the container or the installation. The clause does not apply to:



• the supply of gas to a gas container that is connected to a gas installation that is installed in a vehicle, vessel or machine registered or licensed under the laws of any State, Territory or country outside NSW.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment This clause has been redrafted to ensure it only includes provisions relating to the connection of gas containers and gas installation. Clause 35 of the 2004 Regulation included provisions relating to gas regulators and gas appliances, these have been moved to new clauses 36 and 37. The 2004 Regulation stated that gas containers were required to be approved. The WorkCover Authority is responsible for the approval of gas containers, as such this provision has been amended to reflect approval by the WorkCover Authority. The maximum penalty offences for clause 35 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The penalty regime in the 2004 Regulation had three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes potential costs as it would prevent a gas installation being used or supplied with gas by a container until the owner of a gas installation fixes the defect and gets and compliance plate attached and removes the defect notice. There are also potential costs in terms of prosecution action if a person is proven to have supplied gas in these circumstances. There are costs to government in terms of compliance and enforcement of the provision. Benefits


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There are strong consumer safety benefits arising from this provision as if effectively prevents any gas installation that has been deemed to be unsafe or patently defective and therefore unsafe. This prevents potential major accidents or incidents involving gas which could have significant ramifications on people and property. Alternative options An alternative option is to allow gas container to be connected to a gas installation regardless of whether it is appropriate or safe to use with the installation. This would not support the objectives of the Regulation.

7.1.6.10 Connection of gas regulators to gas installations (clause 36)

Objective To make it an offence for a person to connect a gas regulator to a gas installation unless the regulator is suitable and safe for use with the gas with which it is designed to be used. Provision Clause 36 provides that a person must not connect a gas regulator to a gas installation unless the regulator is suitable and safe for use with the gas with which it is designed to be used. The clause does not apply to:


whom gasfitting work is being carried out or by the holder of an appropriate supervisor certificate.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment This is a new clause, however the provisions have been lifted from Clause 35 of the 2004 Regulation which prevented a gas regulator being connected to a gas installation unless it was suitable and approved. The old clause 35 was separated into several new clauses to ensure its intentions were clear. As previously stated the maximum penalty offences have been amended to only two levels of penalty, ie. for a corporation, and in any other case. Costs This clause imposes potential costs in terms of prosecution action if a person is proven to have supplied gas in these circumstances. There are costs to government in terms of compliance and enforcement of the provision. Benefits There are strong consumer safety benefits arising from this provision as if effectively prevents an inappropriate gas regulator being attached to a gas installation which it was not designed for. This prevents potential major accidents or incidents involving gas which could have significant ramifications on a person, property and even community. Alternative options An alternative option is to allow gas to be supplied however this would not support the other provisions of the Regulation or the main objectives of the Regulation.

7.1.6.11 Connection of gas appliance to gas installations (clause 37)

Objective


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To make it an offence for a person to connect a gas appliance to a gas installation unless the appliance certified and has a compliance label and is suitable and safe for use with the gas with which it is designed to be used. Provision Clause 37 provides that a person must not connect a gas appliance to a gas installation unless the appliance is certified and has a compliance label attached and is suitable and safe for use with the gas with which it is designed to be used. The clause does not apply to:



There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment This is a new clause, however the provisions have effectively been taken from Clause 35 of the 2004 Regulation which prevented a gas appliance being connected to a gas installation unless it was suitable and approved. The old clause 35 was separated into several new clauses to ensure its intentions were clear. While the requirement to not attach a gas appliance which has not been certified and carries a compliance label is new it means the same as “approved” in the former Regulation and clearly supports the existing requirements of the certification of gas appliances in the Regulation (Part 2). As previously stated the maximum penalty offences have been amended to only two levels of penalty, ie. for a corporation, and in any other case. Costs This clause imposes potential costs in terms of any prosecution action. There are costs to government in terms the enforcement of the provision. Benefits There are strong consumer safety benefits arising from this provision as if effectively prevents an inappropriate uncertified gas appliance to be attached to a gas installation which it was not designed for. This could prevent potential major accidents or incidents involving gas which could have significant ramifications on a people and property. Alternative options An alternative option is to allow gas appliances which are not certified or appropriate to be connected to a gas installation. This would not support the objectives of the Regulation.

7.1.7 Part 7 Autogas installations (clauses 38-45)

7.1.7.1 Testing for patent defects (clause 38)

Objective To ensure that an autogas installation is tested for defects following the completion of autogas work. Provision Clause 38 provides that immediately after the completion of autogas work on an autogas installation, the person responsible for the carrying out of the work must:

• inspect all gas cylinders and gas regulators connected to the installation and; • test the whole installation for patent defects.


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There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comments The maximum penalty offences for clause 38 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs The clause imposes costs on any autogas mechanic in terms of time taken to ensure that installation has been properly tested and is safe. There are also potential costs in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this clause is that it ensures that after doing work the autogas mechanics tests not only the work done to ensure it is safe but also examines and inspects connections to the installation to ensure they are safe and not adversely affected by the work completed. Alternative options An alternative would be to not require the autogas mechanics to test or inspect the work completed.

7.1.7.2 Certificates of inspection (clause 39)

Objective To ensure that a certificate of inspection is issued to the owner or person in control of an autogas installation following the completion of autogas work. Provision Clause 39 provides that immediately after testing an autogas installation the person responsible must issue a certificate of inspection for the installation to the owner or person in control or management of the installation and to Fair Trading. The certificate must be serial numbered in the approved form and if it indicates the installation is patently defective must specify what work needs to be done to rectify the patent defect. A person must not issue a certificate of inspection with respect to a patently defective installation unless the nature of the defect is indicated on the certificate. A copy of the certificate of inspection must be kept for 5 years from the date when it was issued. The certificate ceases to have effect if a further certificate is issued with regard to the same installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case for breaching this clause. Comment The maximum penalty offences for clause 39 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered


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legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. The Regulation has been updated to require a copy of the certificate of compliance is provided to Fair Trading as the regulator of autogas work. Fair Trading will then be able to use this information to analyse and assess autogas work performed and develop risk based compliance campaigns. Currently there is no appropriate mechanism for Fair Trading to be informed of work being done and check that it meets the requirements of this Regulation. This new requirement will assist Fair Trading in administering the Regulation. Costs This clause imposes cost on autogas mechanics in terms of the time taken to complete a certificate, the costs of buying certificates and to keep a copy of the certificate as a record for 5 years. While the new requirement to provide Fair Trading with a copy of the certificate of inspection will result in minor additional costs to gas fitters, this will be negated by the introduction of an electronic system which will allow information to be provided in a less costly manner. There is also a potential cost of any prosecution action. There are costs to government in terms of the enforcement of the provision Benefits The benefit of this provision is to provide to the owner of the autogas installation a record which indicates an inspection has taken place and that the installation is safe. If the installation is not safe and patently defective it will also tell consumer what needs to be done to fix the autogas installation. The record requirements provide benefits in terms of traceability of who did the work and benefits the autogas mechanic by enabling them to check and see what work they did on an installation should they need to if asked by a regulator. Alternative options An alternative option is to not require a certificate of inspection and require the owner to rely on their own records and information they obtained from the autogas mechanic about what was done and when it was inspected. A further alternative option being considered is to clarify for industry and government what is meant by “immediately” after completing work in relation to the issuing of the certificate of inspection. The draft Plumbing and Draining Regulation provides for time periods such as 2 days. Clause 39 could be amended to clarify that a certificate of inspection must be provided to the owner and Regulator within 2 days. Question

• Do stakeholders support the additional requirement to provide Fair Trading with a copy of the certificate of inspection?

• Do stakeholders support a clarification of when a certificate of inspection must be issued?


7.1.7.3 Compliance plates (clause 40)

To ensure following the completion and testing of autogas work on an installation, that a compliance plate is attached unless the certificate of inspection indicates the installation is patently defective. Provision Clause 40 provides that the person responsible for carrying out autogas work on an autogas installation must attach a compliance plate to the installation after it has been


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tested unless the certificate of inspection issued indicates the installation is patently defective. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case if this clause is not followed. A compliance plate must comply with the requirements set out in clause 46. Comment The maximum penalty offences for clause 40 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes cost to autogas mechanics in terms of the time taken to attach a compliance plate and costs in terms of buying compliance plates for use. There is also a potential cost in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefit of this clause is that the presence of a compliance plate is demonstrates that an installation is safe and in working order. The details on the compliance plate assist Fair Trading in its compliance and enforcement work, as they allow for traceability of who worked on the installation and the appliances that are attached. The absence of a compliance plate indicates the installation has been found to be patently defective. Alternative options An alternative option is to not require compliance plates to be attached to autogas installations however the compliance plate is the consumer, autogas mechanic and gas suppliers check to indicate that the installation is safe to use. Removing the requirement of compliance plates would not support the objectives of the regulation.

7.1.7.4 Identification labels (clause 41)

Objective To ensure an identification label is attached to the outside of the vehicle, vessel or machine in a conspicuous position after the fitting of an autogas installation to any vehicle. Provision Clause 41 provides that the person responsible for fitting an autogas installation to any vehicle vessel or machine must ensure that an identification label is attached to the outside of the vehicle in a conspicuous place. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. In the case of a vehicle registered under the Road Transport (Vehicle Registration) Act 1997, the identification label must be attached to both the front and back number plates of the vehicle. The identification label must comply with:

• AS/NZS 1425, in the case of work on an autogas (LP Gas) installation; or • AS/NZS 2739, in the case of work on an autogas (CN Gas) installation


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Comment The requirement of identification labels has been linked directly to the requirements in the two relevant Australian Standards. The maximum penalty offences for clause 41 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes cost to autogas mechanics in terms of the time taken to attach identification labels and the costs in terms of buying the labels for use. There is also a potential cost in terms of prosecution action if an autogas mechanic is proved to have not properly followed this clause. There are costs to government in terms of compliance and enforcement of the provision. Benefits The benefits to this clause is that it means that a consumers, autogas mechanic or motor dealer etc can immediately identify that the vehicle is gas propelled and not a normal petrol vehicle. This ensures that work is assigned to properly qualified autogas mechanics and the correct type of gas is supplied to the vehicle. Alternative options An alternative option would be to not require an identification label be place on the outside of the vehicle in a conspicuous place. This would not support the objectives of the Regulation.

7.1.7.5 Sale of gas cylinders (clause 42)

Objective To make it an offence to sell a gas cylinder for use in connection with an autogas cylinder unless the cylinder is suitable and safe for the gas with which it is designed to be used and is approved by the relevant Government agency. Provision Clause 42 provides that a person must not sell any gas cylinder for use in connection with an autogas installation unless the cylinder is:

• suitable and safe for use with the gas with which it is designed to be used; and • is of a type approved by the WorkCover Authority

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment The maximum penalty offences for clause 42 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed.


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Costs There are costs to importers, manufacturers and retailers to ensure that the cylinders they are selling to be used for autogas are approved and have been appropriately tested to ensure they are suitable and safe for use with the gas they were designed to be used for before they are sold. There is also a potential cost in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this clause are that a consumer or autogas mechanic can rely on the fact that a cylinder they buy is safe and appropriate and will work in the vehicle they need it for and is approved for sale. Alternative options An alternative option is to allow any gas cylinder to be used in the vehicle regardless of what it has been designed for or if it has been approved. This would not support the objectives of the Regulation.

7.1.7.6 Use of autogas installations (clause 43)

Objective To make it an offence to use a vehicle, vessel or machine to which an autogas installation has been fitted unless a compliance plate is attached to the installation and an identification label is attached to the vehicle. Provision Clause 43 provides that a person must not use a vehicle, vessel or machine to which an autogas installation is fitted unless:

• A compliance plate is attached to the installation; and • An identification label is attached to the vehicle, vessel of machine.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The clause does not apply to anything that is done in the course of carrying out autogas work, or testing an autogas installation by someone who carried out autogas work or the use of a vehicle, vessel or machine registered or licensed under the laws of any other State, Territory or country outside NSW. Comment The maximum penalty offences for clause 43 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs There are potential costs imposed by this clause because by not allowing a person to use a vehicle until it has a compliance plate and identification label means that the person would have to pay an autogas mechanic to get the vehicle up to the required standard for a compliance plate and identification label. This clause also imposes potential costs if an owner is found to be using a vehicle without an identification label or compliance plate and Fair Trading takes prosecution action. There are costs to government in terms of the enforcement of the provision


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Benefits There are strong consumer safety benefits arising from this provision as if effectively bans the use of any vehicle fitted with an autogas installation that has not been deemed to be safe or cannot be identified as a vehicle propelled by gas. This prevents potential major accidents or incidents involving gas which could have significant ramifications on people or property. Alternative options An alternative option would be to not make it an offence to use autogas installations without a compliance plate or identification label. This would not support the major objectives of ensuring gas consumer safety.

7.1.7.7 Supply of gas for use in autogas installations (clause 44)

Objective It is an offence to supply gas to a gas cylinder that is connected to a gas installation unless a compliance plate is attached to the installation. Provision Clause 44 provides that a person must not supply gas to a gas cylinder that is connected to an autogas installation unless a compliance plate is attached to the installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The clause does not apply to anything that is done in the course of carrying out autogas work, or testing an autogas installation by someone who carried out autogas work or the use of a vehicle, vessel or machine registered or licensed under the laws of any other State, Territory or country outside NSW. Comment The maximum penalty offences for clause 44 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes potential costs on gas suppliers as they can no longer sell gas to the owner of an autogas installation without a compliance plate. There is the potential to lose sales until such a time as the installation is fixed. Likewise a person will not be able to use their vehicle until they can arrange for it to be fixed, tested and a compliance plate attached, as such there could be potential losses experienced by the vehicle owner. There are also potential costs in terms of prosecution action if a person is proven to have supplied gas in these circumstances. There are costs to government in terms of compliance and enforcement of the provision. Benefits There are strong consumer safety benefits arising from this provision as if effectively prevents gas being supplied to an autogas installation that has been deemed to be unsafe. This prevents potential major accidents or incidents involving gas which could have significant ramifications on a person, vehicle and even community.


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Alternative options An alternative option is to allow gas to be supplied regardless of the presence of a compliance plate, however this would not support the other provisions of the Regulation or the main objectives of the Regulation.

7.1.7.8 Connection of gas cylinders to autogas installations (clause 45)

Objective To make it an offence to connect a gas cylinder to an autogas installation unless a compliance plate is attached to the installation. Provision Clause 45 provides that a person must not connect a gas cylinder to an autogas installation unless a compliance plate is attached to the installation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The clause does not apply to anything that is done in the course of carrying out autogas work, or testing an autogas installation by someone who carried out autogas work or the use of a vehicle, vessel or machine registered or licensed under the laws of any other State, Territory or country outside NSW. Comment The maximum penalty offences for clause 45 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs This clause imposes potential costs as a person or a gas supplier can not attach a cylinder to an autogas installation without a compliance plate. There is the potential to lose sales until such a time as the installation is fixed. Likewise a person will not be able to use their vehicle until they can arrange for it to be fixed, tested and a compliance plate attached, as such there could be potential losses experienced by the vehicle owner. There are also potential costs in terms of prosecution action if a person is proven to have supplied gas cylinders in these circumstances. There are costs to government in terms of compliance and enforcement of the provision. Benefits There are strong consumer safety benefits arising from this provision as it effectively prevents gas cylinders and gas being supplied to an autogas installation that has been deemed to be unsafe. This prevents potential major accidents or incidents involving gas which could have significant ramifications on people and property. Alternative options An alternative option is to allow gas cylinders to be supplied regardless of the presence of a compliance plate, however this would not support the other provisions of the Regulation or the main objectives of the Regulation.


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7.1.8 Part 8 Miscellaneous (clause 46-55)

7.1.8.1 Requirements of compliance plates (clause 46)

Objective To ensure compliance plates have the appropriate information and are consistent in appearance and style. Provision Clause 46 provides that a compliance plate must be in the approved form, constructed of approved materials and be at lease 0.5mm thick, have a display area of at least 70mm x 45mm and be attached to the installation in a conspicuous position adjacent to the control valve or other point by which the installation is designed to be connected to a gas cylinder or container. The compliance plate must be permanently and legibly inscribed in figures at least 6mm high with the following information:

• The serial number of the certificate of inspection; • The date on which the testing of the installation was carried out; • In the case of gas installation:

o The serial number of the supervisor certificate held by the person whom the installation was tested; and

o The serial number of the contractor’s licence held by that person or by the contractor by whom that person is employed; and

o An indication of the number of and types of gas appliances connected to the installation.

In the case of an autogas installation: o The serial number of the trade certificate or supervisor certificate held by

the person by whom the installation was tested; and o The serial number of the repairer’s licence held by the repairer, if any, by

whom the person is employed; and o The engine number and vehicle identification number, if any, of the vehicle

to which the installation is fitted.

In relation to a gas installation and the number and type of gas appliances connected to the installation the following table applies:

Column 1 Type of Appliance

Column 2 Numeral

Stationary Engine Power Gen. / Air Con.

0

Cooktop / Wok Cooker

1

Refrigerator / Adsorption Chiller

2

Instantaneous Water / Pool / Spa Heater

3

Tank Hot Water Heater

4

Hot Plate / Grill / BBQ

5

Oven - Baking, Curing or Drying

6

Decorative Flare / Gas Light

7

Room Heater / Space Heater

8


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Other Appliance

9

In relation to an autogas installation the vehicle identification number is a reference to the vehicles chassis number. Comment The table identifying the types of appliances and the numeral assigned to them has been updated to reflect modern appliances. Stakeholders are invited to comment on the updated table and if anything needs to be amended or added. Costs This clause imposes cost to gas fitters and autogas mechanics in terms of the time taken to complete the details on the compliance plate and costs in terms of buying compliance plates for use. There is also a potential cost in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefit of this clause is that the presence of a compliance plate demonstrates that an installation found to be safe and in working order and the details on the compliance plate assist compliance and enforcement as they allow for traceability of who worked on the installation and the appliances that are attached. The absence of a compliance plate indicates the installation has been found to be defective or unsafe. Alternative options An alternative option is to not specify what information is required on compliance plates or allowing them to be in any form. However removing this requirement would not support the objectives of the regulation in relation to compliance plates.

7.1.8.2 Unauthorised attachment of compliance plates (clause 47)

Objective To make it an offence to attach a compliance plate or any device that resembles a compliance plate to a gas or autogas installation otherwise than as authorised by this Regulation. Provision Clause 47 provides a person must not attach to a gas installation or an autogas installation any compliance plate, or any device that resembles a compliance plate otherwise than as authorised by this Regulation. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment The maximum penalty offences for clause 47 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed. Costs There are no real costs to gas fitters or autogas fitters imposed by this clause, however if a person purposely attaches a compliance plate in breach of the regulation then there would


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be potential costs imposed through prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this provision are that this offence clause supports the requirements of compliance plates. If anyone was able place fake compliance plates on an installation or alternatively actively breach the requirements the ability of gasfitters, autogas mechanics, consumers, the regulator and the general community to rely on them as the indicator of a safe installation, would be negated. Alternative options The alternative option is that there is no offence for unauthorised attachment of compliance plates. However this would not support the objectives of the regulation in relation to compliance plates and gas installation safety.

7.1.8.3 Removal of compliance plates by investigators (clause 48)

Objective To ensure investigators are able to remove a compliance plate for a gas installation or autogas installation if satisfied the installation or any connections are not in safe working order. Provision Clause 48 provides that an investigator may remove a compliance plate from a gas installation or autogas installation if the investigator is satisfied that the installation (or any gas container, gas regulator, gas cylinder or gas appliance connected to it) is not in safe working order.

Costs This provision imposes potential costs on the owner of a gas installation or autogas installation should an investigator remove a compliance plate, it will mean they will need to pay to have the installation fixed in order to be deemed safe and a new compliance plate attached. There are costs to government in terms of compliance and enforcement of the provision. Benefits The benefits of this provision are that it allows an investigator if satisfied that there is an unsafe gas or autogas installation in the marketplace or community, to remove the compliance plate meaning that the installation may not be used. Alternative options The alternative would be to remove this clause and not allow investigators to remove a compliance plate even if they are satisfied the installation is unsafe. This would not support the objectives of the Regulation.

7.1.8.4 Unauthorised removal of defect notices (clause 49)

Objective To make it an offence to remove a defect notice from a gas installation, gas container, gas regulator or gas appliance until the relevant patent defect has been rectified or is found not to exist. Provision Clause 49 provides that a person must not remove a defect notice from a gas installation, gas container, gas regulator or gas appliance until the relevant patent defect has been rectified or is found not to exist.


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There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Comment The maximum penalty offences for clause 49 have been amended to only two levels of penalty, ie. for a corporation, and in any other case. The previous penalty regime has three levels, ie a corporation, and employee and someone who is not an employee. These penalty levels were transferred in 2010 as part of the consolidation of the gas regulation and were previously administered by WorkCover as part of their role as the workplace safety regulator. To keep the penalties consistent with Fair Trading administered legislation and because Fair Trading does not regulate workplaces, employee specific penalties have been removed.

Costs This provision imposes potential costs on the owner of a gas installation, container, regulator or appliance through any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this provision are that it ensures that defect notices are not removed illegitimately in order to have gas supplied or in order to use the appliance despite the fact it is unsafe and could potentially harm people and property. Alternative options The alternative would be to remove this clause and make it an offence to remove defect notices until work is done to rectify the patent defect. This would not support the objectives of the Regulation.

7.1.8.5 Maintenance of gas installations (Clause 50)

Objective To ensure the occupier or owner of a premises maintain their gas installations. This is a new clause. Provision Clause 50 provides that the occupier or owner of premises in which there is a gas installation must ensure that while the gas installation is connected to the supply of gas:

• the safe and satisfactory operation of the gas installation is not impaired by interference, damage, ageing or wear;

• the installation is not used in a manner that exceeds the operating limits imposed by its design or installation;

• the installation does not become a significant potential cause of fire for the environment surrounding the installation and that combustible materials are not stored in the vicinity of the gas outlet.

There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Costs The costs imposed on owners and occupiers to ensure their gas installations are maintained are not onerous and can be done through regular visual inspections of the gas outlets (if visible) and paying attention to the performance of any appliances and ensuring there are no combustible materials near outlets. Consumers could also have gas installations checked as part of the servicing of any appliances or as part of their next gas fitting work or servicing or by a gas fitter doing standard checks when the owner or


46

occupier next needs gas fitting work. Costs would also arise from Government informing consumers about safety issues. Benefits The benefit of this clause is to ensure that owners/occupiers have some responsibility for a gas installation in premises they own or occupy. This clause will enhance consumer safety by encouraging a proactive approach to issues relating to installations. Alternative options An alternative option is to require is to remove this minimal responsibility on occupiers and owners from the Regulation.

7.1.8.6 Sale of gas regulators (clause 51)

Objective To ensure a gas regulator cannot be sold unless it is approved and suitable and safe for the gas with which it is designed to be used. Provision Clause 51 makes it an offence to sell a gas regulator unless it is approved or is of an approved type and is suitable and safe for use with the gas with which it is designed to be used. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Costs There are costs to importers, manufacturers and retailers to ensure that regulators are tested and approved and are suitable and safe for use with the gas they were designed to be used for before they are sold. There is also a potential cost in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this clause are that a consumer or gas fitter can rely on the fact that a regulator they buy being safe to use for the gas it is labelled to be used and is approved for sale. Alternative options An alternative option is to require that gas regulators are certified by the same certification authorities that certify gas appliances. It is understood this option is currently being explored on a national level through the Gas Technical Regulators Committee. The benefits of such a provision would be that these regulators would be approved by capable organisations that engage appropriately skilled people to test and certify that the product is safe. Certification authorities are bound by conditions such as requiring them to have access to an appropriate laboratory and requiring them to have professional indemnity insurance provides benefits by ensuring that appliances are certified appropriately. Questions: Do stakeholders support the requirement to ensure that gas regulators are certified in the same manner as gas appliances to ensure their safety?

7.1.8.7 Connection of gas regulators to gas containers (clause 52)

Objective To ensure a person does not connect a gas regulator to a gas container unless the regulator is approved and suitable and safe for the gas with which it is designed to be used. Provision


47

Clause 52 makes it an offence to connect a gas regulator to a gas container unless it is approved or is of an approved type and is suitable and safe for use with the gas with which it is designed to be used. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. Costs There are costs to importers, manufacturers and retailers to ensure that regulators are tested and approved and are suitable and safe for use with the gas they were designed to be used for before they are sold. There is also a potential cost in terms of any prosecution action. There are costs to government in terms of the enforcement of the provision. Benefits The benefits of this clause are that a consumer or gas fitter can only connect a regulator that is appropriate and safe, this will ensure that accidents involving inappropriate and unsafe regulators attached to high pressure vessels are kept to a minimum and action can be taken by Fair Trading if consumers or gas fitters use the regulators inappropriately with the potential to cause serious gas accidents. Alternative options An alternative option is to require is to allow a consumer or a gas fitter to attach any gas regulator to any gas container regardless of whether it was designed for the pressure or gas and regardless of its safety. This would not support the objectives of the Regulation.

7.1.8.8 Notification of serious gas accidents (clause 53)

Objective To ensure the Director-General is notified of any serious gas accidents and to allow the Director-General to investigate any gas accident if necessary. Provision Clause 53 provides that the occupier or owner of premises in which a serious gas accident occurs must give notice of the accident and provide the information required to the Director-General within seven days after the accident in any of the following ways:

• by written notice; • by electronic communications; • by telephone to NSW Fair Trading, Department of Finance and Services.

There is a maximum penalty of 5 penalty units for failing to notify the Director-General of a serious gas incident. A serious gas accident is defined as an accident caused by the use of gas appliance, gas installation, or autogas installation to supply gas or by work carried out on a gas appliance, gas installation or autogas installation; and as a result of which a person dies, or suffers permanent disability, is hospitalised, or receives treatment form a healthcare professional or is unable to attend work for any period of time. Comment This is a new clause which requires the owner or occupier to provide Fair Trading with notification and details of a serious gas accident. Information such as this is important to Fair Trading and assists to provide evidence and information on gas consumer safety and assists to determine if changes or specific actions need to be taken on safety issues. Costs The costs imposed by this provision on occupiers and owners are minimal and relate directly to the primary objective of consumer safety. While there are potential costs resulting from any prosecution action, the maximum penalty is not at the high end. There are costs to government in terms of administration and enforcement of the provision.


48

Benefits The benefits of this clause are that the regulator is able to keep accurate information on accidents, deaths and injuries as which assists to inform compliance and enforcement work and the development of future regulation. The ability for investigators to go to the site of an accident and investigate the cause of an accident also has significant consumer safety benefits as the cause of an accident may assist the regulator is recalling or removing unsafe products from shelves or sale. Alternative options An alternative option is to require is to remove this requirement to notify and rely on the regulator receiving the information in the current ad-hoc manner. Another alternative is to prescribe additional people likely to be on the scene of any major gas accident with a requirement to notify Fair Trading. Question Are their additional people who should be prescribed as a person who should notify Fair Trading of a major gas accident other than the owner or occupier?

7.1.8.9 Exemptions (clause 54)

Objective To allow the Director-General to make exemptions from any or all of the provisions of the Regulation. This is a new clause. Provision Clause 54 provides that the Director-General may exempt any of the following from any or all of the provisions of the Regulation:

• A person or class of persons • Any gas installation or class of gas installations • Any autogas installation or class of autogas installation

An exemption is to be in writing, may be unconditional or subject to conditions, and is of no effect during any period that a condition to which it is subject is not complied with. Costs This provision is of machinery in nature and is unlikely to impose any costs on industry. Benefits The benefits of this provision are that it provides the Regulator with options in relation to new or emerging products or types of gasfitting work. Alternative options The alternative would be to remove this clause not allow the Director-General to grant exemptions.

7.1.8.10 Provisions relating to gas meters (clause 55 and Schedule 1)

Objective To require gas supplied by means of a gas network be metered and to make provisions relating to the testing of gas meters and gas meter testing equipment. Provision Clause 55 and Schedule 1 provide: Clause 1 of Schedule 1 defines “interested party” in relation to gas meters as:


49

• A person (including an end user customer and supplier) to whom gas in conveyed through the gas meter; or

• A supplier who supplies gas to other persons (including end user customers and other suppliers) through the gas meter; or

• A network operator from whose distribution system gas is conveyed through the gas meter.

The clause also provides that a gas meter is inaccurate if:

• A limit of error for gas meters has been prescribed under the National Measurement Act 1960 of the Commonwealth and the gas meter over-registers or under-registers the flow of gas by more than the limit prescribed under the Act; or

• If no such limit has been prescribed and o The gas meter over-registers the flow of gas by more than 2 percent or if

the Director-General determines, by order published in the Gazette, that a smaller percentage applies in relation to any particular class of gas meter, by more than that small percentage; or

o The gas meter under-registers the flow of gas by more than 3 percent or if the Director-General determines, by order published in the Gazette, that a smaller percentage applies in relation to any particular class of gas meter, by more than that small percentage.

Clause 2 provides that a person must not convey gas to another person by means of a gas network other than through a gas meter. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The clause does not apply to the conveyance of gas to a network operator or an authorised supplier or by any other person in accordance with any exemptions. The Director General may exempt any person for the operation of this clause if appropriate and the exemption must be in writing and can have conditions. Clause 3 provides that the Director-General may by instrument in writing authorise any person to:

• Test and to seal and stamp gas meters; • Test and calibrate equipment used for testing gas meters

The authority may be granted with conditions and the holder must comply with the conditions. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The Director General may also revoke an authority at any time and for any reason by instrument in writing. Clause 4 provides that a person who holds an authority under clause 3 must lodge with the Director-General a description of the procedures to be used by the person for testing gas meters or gas meter testing equipment. Clause 5 provides that a person must not supply or install a gas meter for the purpose of measuring, for revenue purposes, a quantity of gas supplied, unless the gas meter has been tested, sealed and stamped by a person authorised under clause 3 or by an organisation approved by the Director-General. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. The Director-General can declare an organisation in another State or Territory to be an approved organisation by order published in the Gazette. For the purposes of the clause a gas meter is not sealed unless the seal is intact and the gas meter is not stamped unless the seal applied to it is stamped with a stamp of an approved design. Clause 6 provides that the owner of a gas meter used for registering supply of gas must cause the gas meter to be in-service tested and resealed:


50

• In accordance with the owner’s program, if it has been approved by the Director-General, or (if there is no such approved program) at the intervals that the Director-General may from time to time require in respect of a particular meter or class of meters; and

• At any time, if the Director-General notifies the owner that the gas meter may be defective or inaccurate.

There is a maximum penalty of 20 penalty units for anyone found to breach this clause. A owner may lodge with the Director-General a program for the in-service testing and resealing of meters owned by the owner. A program may provide for random sample in-service testing of meters. Clause 7 provides that if the owner of a gas meter suspects that the gas meter is inaccurate, or the gas meter’s seal is broken or illegible, the owner must arrange to have the gas meter tested. If the gas meter is inaccurate, the owner must:

• Notify any relevant interested party in writing that the gas meter is inaccurate; and • Record the particulars of the inaccurate gas meter and any date on which the gas

meter was found to be inaccurate; and • As soon as practicable, cause the gas meter to be replaced, repaired or adjusted,

whichever is appropriate. Any record of an inaccurate gas meter kept under this clause must be retained by the owner for a period of not less than 2 years. Clause 8 provides that an interested party may ask the owner of a gas meter to arrange to have a gas meter tested. The owner may request that the interested party pay in advance the reasonable cost of testing the meter. The owner is not required to test the meter if the interested party refuses to pay the amount in advance. If the meter is found to be inaccurate, the owner must:

• Refund any amount paid in advance and the interested party is not liable to pay the cost of testing if the meter is found to be inaccurate; and

• As soon as practicable, cause the gas meter to be replaced, repaired or adjusted, whichever is appropriate.

The Director-General may by order published in the Gazette, set a maximum fee that may be charged by the owner. Clause 9 provides that the Director-General may, with agreement of the occupier of the premises, examine or test any gas meter installed on premises for the purpose of registering the supply of gas to those premises. The gas meter may be examined or tested while on the premises or may be removed from the premises for examination or testing. If the gas meter is supplied with gas at a gauge pressure of more than 35 kilopascals, the Director-General must give reasonable notice of the intention to conduct the examination or test. The owner who receives notice must ensure a suitably qualified person is available to provide assistance during the examination or test and ensure that the gas installation is to which the meter is connected is safely recommissioned after completion of the test. If in the Director-General’s opinion, a gas meter cannot be conveniently or safely tested on premises, the Director-General may require the meter to be disconnected and delivered by the owner to a specified testing place. The owner of the gas meter:

• Must as soon as practicable comply with the requirement; and • May witness, or be represented by another person at the test: and • Must as soon as practicable after it has been tested, return the gas meter, or

supply and connect another gas meter to the premises where it has been removed. If the gas meter tested is inaccurate, the owner must, as soon as practicable cause the gas meter to be replaced, repaired or adjusted.


51

Clause 10 provides that gas meter testing equipment is not suitable for use in testing a gas meter unless it has been tested and calibrated, in accordance with an approved method:

• By a person authorised under clause 3; or • By or under the supervision of an organisation approved by the Director-General.

The Director-General may, by order published in the Gazette, declare an organisation in another State or Territory to be an approved organisation. Clause 11 provides that a person must not test a gas meter unless authorised to do so under this Schedule. There is a maximum penalty of 100 penalty units in the case of a corporation and 25 penalty units in any other case. A person must not remove, deface or break a gas meter’s seal or stamp on a gas meter’s seal without notifying the owner of the gas meter and Director-General, unless authorised under this Schedule. There is a maximum penalty of 20 penalty units. A person must not, unless authorised to do so under this Schedule:

• Cause or knowingly allow a gas meter to be inaccurate; or • Prevent a gas meter form registering an amount of gas supplied; or • Otherwise affect the metrological performance of a gas meter,

without notifying both the owner and the Director-General. There is a maximum penalty of 20 penalty units. Any notification required by the clause must be made within 7 days after the occurrence of the notifiable event, in the approved form. Clause 12 provide for the fees payable to the Director-General by:

• The owner of a gas meter for the examination or testing of the gas meter by the Director-General; or

• The owner of a gas meter testing equipment for the examination or testing of that equipment by the Director-General; or

• An applicant for authority to conduct in-service testing of gas meters for the examination of documents relating to the application; or

• An applicant for authority to test gas meter testing equipment for the examination of documents relating to the application; or

• The owner of gas meters for approval of an in-service testing program; or • A person authorised under clause 3 for approval of a method of testing of gas

meter testing equipment, Is $131 for the first hour plus $33 for each quarter hour or part of a quarter hour after the first hour. Costs and benefits While these provisions impose some costs to industry, suppliers, consumer and gas meter owners to make allowance for testing and accuracy of meters these are more than outweighed by the benefits of ensuring a transparent and systematic process for ensuring meters are accurate and consumer are able to get what they paid for and suppliers received the correct amount for the gas they supply. Comment On 1 July 2010, a national system of trade measurement administered by the Commonwealth National Measurement Institute (NMI) came into effect and NSW repealed its trade measurement laws. At that time gas meters were exempted from the national trade measurement laws, however the Commonwealth always intended to remove the exemption and introduce similar provisions. A NMI discussion paper was released on this issue in September 2011 and it is expected regulation relating to gas meters and gas meter testing equipment will be introduced by the Commonwealth Government soon. At that time, NSW will repeal provisions in the Gas Supply (Consumer Safety) Regulation relating to gas meters. It is not intended to amend this part of the Regulation.


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Alternative options As it is expected that the Commonwealth Government is expected to take over regulation and testing of gas meters and gas meter testing equipment it is not considered that alternative options are currently necessary to discuss.

7.2 Overall impact of Option 3: the proposed regulation The proposed Gas Supply (Consumer Safety) Regulation 2012 has been developed to replace the current Gas Supply (Consumer Safety) Regulation 2004 which will automatically be repealed on 1 September 2012. The proposed regulation provides the administrative detail required to support the operation of section 83A of the Gas Supply Act 1996. Impact on consumers There will be limited costs to consumers as a result of the provisions of the proposed regulation. However, the regulation assists in providing continued consumer protection in relation to unsafe gas appliances, gas-fitting work, gas installations and autogas installation which if allowed to be present in the peoples homes and properties could have significant and harmful consequences on people and property as a result of gas explosions, gas leakage or serious gas accidents. Impact on gas industry including importers, retailers, gasfitters and autogas mechanics. The proposed regulation imposes a medium level of administrative costs on the industry, which largely arise from the costs of ensuring appliances are certified and safe, gasfitting work and autogas work is done to standards, records are kept and appropriate compliance plates, defect notices and identification labels are maintained, followed and gas is not supplied to unsafe installations or anything connected to them. There are also some costs arising from the time taken to complete any paper work and requirements and potential costs in the form of prosecution action. However, these costs are not significant, and are outweighed by enhanced consumer safety. Impact on Government There are costs to government in administering the regulation, which include costs of compliance and enforcement, ensuring risky products and work are fixed or removed from the marketplace and any potential prosecution action for breaches of the law. While there are currently no fees set by the proposed regulation for an application to become a certification authority, this Regulatory Impact Statement has signalled that all future applications will be charged an application fee based on cost recovery. The regulation will provide significant benefits in supporting government policy objectives and ensuring that unsafe appliances are kept out of the NSW marketplace. Conclusion Option 3 - the proposed regulation: • meets the regulatory objectives; • provides high financial and intangible benefits to consumers; and • imposes medium level costs on the gas industry and government.


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8. IMPACT ANALYSIS OF THE ALTERNATIVES TO THE REGULATION

8.1 Option 1: Do nothing The “Do Nothing” option would result in the existing Gas Supply (Consumer Safety) Regulation 2004 being repealed on 1 September 2012, with no replacement regulation being made. While the Gas Supply Act 1996 would still exist, the additional requirements outlined in section 83A of the Act would not be provided for and the objective of consumer safety for gas appliances, gas fitting work, autogas work and the examination and testing of gas meters could not be achieved. It is not be possible to give effect to the intention of the section 83A of the Act without some further action by the Government, such as amending the Act or creating an additional Act specifically for gas consumer safety. Including the proposed requirements of the regulation in the Act would potentially reduce the capacity to amend the requirements quickly to respond to problems which may arise for consumers or to address changes in industry practices. Impact on consumers Option 1 could cause significant detriment to consumers. Without a regulation in place, the consumer protection provisions of the Act would not operate effectively and the risk to gas safety in the community would increase. Action could not be taken by the regulator to prevent unsafe gas and autogas work, gas appliances, and the continued safety of any gas installation or autogas installations in the community. Impact on industry In the absence of the regulation, costs for the industry could be reduced slightly as there would be no requirement to ensure the safety of any gas work, gas appliance safety of autogas or gas installations. Without this regulation, government oversight of the industry and gas consumer safety would be limited. This could potentially have a significant impact on industry if consumers lose confidence in the industry through unsafe gas work, appliances or installations affecting peoples lives or their property. The benefits of the regulation as outlined in this regulation could not be achieved. Impact on Government While option 1 would reduce some administrative costs for government, it would undermine the government’s ability to meet the obligations imposed under the Act. The government would still need to meet or be expected to meet its obligations under the Act without the benefits of the administrative detail provided by the regulation. Conclusion This option would result in a regulatory structure which could not be properly administered. In many respects, the intent of the Act would not be achieved, possibly resulting in financial loss to consumers and government. Option 1 – Do Nothing: • fails to meet the regulatory objectives; and • involves a high financial and intangible cost to consumers, and a medium cost to

government and does not support the indusrty.


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8.2 Option 2: Rely on the industry to self regulate This option would involve relying on the gas industry to develop and monitor specific standards for the control and safety of gas and autogas installations, gas appliances and gas fitting work. This option would be dependent on a strong industry body with widespread membership and the ability to enforce the standards it develops. In these circumstances, the industry is unlikely to effectively self-regulate and the impact of this option would be the same as Option 1 – Do nothing. The impacts on consumers, suppliers and government would be the same as those outlined in relation to Option 1. Conclusion Option 2 – Rely on industry to self-regulate: • fails to adequately meet the regulatory objectives; and • involves high financial and intangible costs to consumers, and medium cost to the

government.

9. CONCLUSIONS Option 1, to do nothing, would generally result in a greater financial and intangible cost to the community. Without the proposed regulation, many of the consumer safety provisions could not be appropriately enforced. This option: • fails to meet the regulatory objectives; and • involves a high financial and intangible cost to consumers, the industry, government

and the community generally. Option 1 is not supported. Option 2, reliance on the industry to establish self-regulatory arrangements to support gas consumer safety, does not address the identified problems which gave rise to the legislation and proposed regulation. This option, as with option 1: • fails to meet the regulatory objectives; and • involves high financial and intangible costs to consumers, the industry, government

and the community generally. Option 2 is not supported. Option 3, the proposed regulation, enables the consumer protection objectives of Section 83A of the Gas Supply Act 1996 to be efficiently achieved. The proposed regulation: • meets the regulatory objectives; • provides significant financial and intangible benefits to consumers; and • has low overall costs to the funeral industry, the government and the community

generally. Option 3 provides the greatest net benefit to the community and is the preferred option.

7 CONSULTATION


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Individuals and organisations are invited to comment on the proposed regulation. The proposed regulation will be advertised by way of a notice in statewide newspaper and together with the Regulatory Impact Statement, available on the NSW Fair Trading website. Invitations to comment on the proposed regulation will also be forwarded to a range of organisations. Summary of additional questions asked in the RIS Appliances

1. Do stakeholders support an increase in maximum penalties to ensure Fair Trading can appropriately respond to breaches of the Regulation relating to gas appliance safety?

2. Do stakeholders support the maximum duration of a certification authority being not

more than five years? Gas fitting work

3. Do stakeholders support the update in the Regulation to work to AS5601:2010?

4. Will the industry will be able to immediately work to this Standard when the regulation commences?

5. What factors should Fair Trading consider to ensure performance based work is

appropriate for the work required?

6. Should the 2011 amendment to AS/NZS 5601 be included?

7. Are there any additional appropriate standards that could be required under the regulation?

Autogas work

8. Are there any additional appropriate standards that should be required under the regulation?

Gas fitting work supplied by a gas network

9. Do stakeholders support the additional requirement to provide Fair Trading with a copy of the certificate of compliance?

10. Do stakeholders support a clarification of when a certificate of compliance must be issued?

11. Is two days the appropriate time period? Gas fitting work supplied by a non-gas network

12. Do stakeholders support the additional requirement to provide Fair Trading with a copy of the certificate of inspection?

13. Do stakeholders support a clarification of when a certificate of inspection must be issued?

14. Is two days the appropriate time period? Autogas installation


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15. Do stakeholders support the additional requirement to provide Fair Trading with a copy of the certificate of inspection?

16. Do stakeholders support a clarification of when a certificate of inspection must be issued?

17. Is two days the appropriate time period? Gas regulators

18. Do stakeholders support the requirement to ensure that gas regulators are certified in the same manner as gas appliances to ensure their safety?

Notification of serious gas accidents

19. Are their additional people who should be prescribed as a person who should notify Fair Trading of a major gas accident other than the owner or occupier?


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8 APPENDIX A: Proposed Gas Supply (Consumer Safety) Regulation 2012

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