OFFICE OF THE TECHNICAL REGULATOR

11 Waymouth Street, Adelaide
GPO Box 320, Adelaide SA 5000
www.energymining.sa.gov.au

Contact phone number: 08 8226 5500 (R.Faunt)
Contact email: DEM.PLEC@sa.gov.au

ISSN: 26527553

Date presented to Minister: 30 September 2022

To:

Honourable Tom Koutsantonis MP
Minister for Energy and Mining

This annual report will be presented to Parliament to meet the statutory reporting requirements of Electricity Act 1996 (Sec 14), Public Sector Act 2009 and the requirements of Premier and Cabinet Circular PC013 Annual Reporting.

This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.

Submitted on behalf of the OFFICE OF THE TECHNICAL REGULATOR by:

Rob Faunt
Technical Regulator
Date 30 September 2022

From the Chairperson

I am pleased to provide the attached Annual Report of the Power Line Environment Committee’s (PLEC) operation for the 2021-2022 financial year as required under the Charter of PLEC and Section 14 of the Electricity Act 1996.

As you may be aware, in 2011 the energy minister delegated the powers and functions under section 58A of the Electricity Act 1996 (the Act) to the Technical Regulator, who is responsible for exercising those related functions and powers under the Act associated with the undergrounding of power lines.

In accordance with the above delegation, the PLEC recommended to the Technical Regulator for approval a program of 10 projects to underground 4.6 kilometres of power lines. Those projects that were to or have commenced will be constructed during the 2021-2022 financial year, as determined by the forward-looking program set out in the PLEC Charter.

Approved 2021-22 PLEC undergrounding program

First half of 2021-22

Second half of 2021-22

The following projects have been completed during the year

• Albert Street, Gumeracha Stages 1, 2 and 3
• Golden Grove Road, Modbury
• Sea Parade, Port MacDonnell, Stage 2
• Woodville Road, Woodville

Several projects are in construction at the end of the 2021-2022 financial year, namely

• Lower North East Road, Campbelltown
• Military Road, Henley Beach, Stage 1 & 2
• Manoora Hall, Manoora
• Alawoona Avenue, Mitchell Park, Stages 1 & 2
• Moonta Bat Road, Moonta, Stage 1 & 2
• Railway Terrace, Pinnaroo, Stage 1
• Church Street, Port Adelaide

During 2021-2022 PLEC’s call for expressions of interest was warmly and positively received by urban and regional Councils. PLEC maintains it’s clear focus on assisting local government with initiatives to enhance the aesthetics of a location by undergrounding power lines.

The year saw considerable changes to the PLEC membership and support structure. I am very pleased to extend a warm welcome to a membership combining both youth and experience.

New members:

• Peter Khoury (Community Rep) appointed Deputy Chair
• Andy Burnell (DEW) reappointed
• Chris Dunn (LGA) appointed
• Kathryn Galpin (Tourism) appointed
• Teresa Xavier (DIT)

Continuing members

• Kim Steinle (Chair)
• Charles Donovan (SAPN)
• Margaret Lee (Conservation)

To our retired or departing members, I offer my sincere thanks for their service to PLEC during the 2021-2022 year. Those members include:

• Joanne Davidson (Tourism)
• Klinton Devenish (LGA)
• Amit Dua (DIT)
• Kevin Hamilton (former Chair)
• Michael Magin (SAPN and former Executive Officer)
• Kerry McConnell (DIT)

I wish to thank the Executive Team and Administrative Support for keeping things in train and on time, particularly through some of our most challenging of times with COVID-19.

• Reinhard Struve (DEM)
• Loan Vu (DEM)
• Ian Furness (DEM)
• Antonia Tolo (DEM)
• Nathan Furse (DEM)
• Amelia Greer (ESCOSA)

From the Committee

In August 2021, Kevin Hamilton retired from his position as PLEC Chair and from the Committee.

Kevin held the position of PLEC Secretary for approximately 6 years before this position was transferred to the Essential Services Commission of SA following the privatisation of ETSA (Electrical Trust of South Australia) Utilities. Kevin continued in ETSA Utilities managing the PLEC Projects team before finally retiring from the workforce in 2004. He was appointed to the current Committee in 2011 as a Community Representative and continued in that portfolio after being appointed Chairperson of the Committee in 2017.

Over approximately 20 years in PLEC, Kevin has been involved in 290 projects totalling $172 million, the undergrounding of 212kM of overhead powerlines, and the removal of approximately 7,000 stobie poles.

Kevin had countless meetings with many PLEC stakeholders to ensure the prudent selection of projects, and the offering of advice that would contribute to a better outcome for the wider community. He was a tremendous and well-respected Chair, ensuring the Committee was focussed on the entire program that would assist SA Power Networks (SAPN) meeting its obligations under the Electricity Act, as well as the obvious benefits these projects bring to the wider community.

Being a keen traveller in SA, Kevin’s immense knowledge of the State has been incredibly useful in discussing the history and trends of areas where PLEC projects have been proposed, particularly in regional townships where committee members may not be as familiar.

In February 2022, Michael Magin retired from his position as Executive Officer and SAPN representative from the Committee.

Michael has been part of the Committee since 2006 and has been managing the PLEC Projects team before finally retiring from the workforce in 2022.

The Committee thank Kevin and Michael enormously for their contribution to PLEC over so many years and wish them a safe, happy, and healthy future.

PLEC is grateful for the continued support of the Essential Services Commission of South Australia (ESCOSA), SA Power Networks, Department of Infrastructure and Transport, Telstra, NBN and the other communications companies, the Local Councils and the Technical Regulator for their continued effort to achieve quality outcomes in a timely manner.

PLEC does face a positive and bright future, with a commitment to safer roads, healthier, greener spaces and economically stronger communities.

PLEC projects continue to create heathier, stronger communities by enhancing streetscapes and the heritage fabric. PLEC projects encourage the economic activity of tourism and jobs.

Simply put, reducing the total number of stobie poles in South Australia creates safer roads and civic spaces.

Constructing road treatments that slow traffic and enhance greater pedestrian safety, together with encouraging more pedestrians and cyclists, all have positive outcomes for both road safety and our natural environment, assisting the battle for climate change.

Yours sincerely

Mr Kim Steinle
The Chair
POWER LINE ENVIRONMENT COMMITTEE

Contents

Overview: about the agency

• Our strategic focus
• Our organisational structure
  • Changes to the agency
• Our Minister

The agency’s performance

• Performance at a glance
• Agency response to COVID-19
• Agency contribution to whole of Government objectives
• Agency specific objectives and performance
• Work health, safety and return to work programs

Financial performance

• Financial performance at a glance
• Consultants disclosure
• Contractors disclosure

Risk management

• Risk and audit at a glance
• Strategies implemented to control and prevent fraud
• Public interest disclosure

Reporting required under any other act or regulation

Public complaints

• Number of public complaints reported
• Additional Metrics
• Service Improvements
• Compliance Statement

Overview: about the agency

Our strategic focus

Our organisational structure

PLEC was established by the South Australian Government in 1990. PLEC recommends to the Minister responsible for the Electricity Act 1996 (the Act) in relation to the preparation of programs for undergrounding powerline work pursuant to section 58A of the Act and the Electricity (General) Regulations 2012.

PLEC also provides advice to the Minister on administration, safety and technical matters for projects related to the undergrounding of electricity power lines. SA Power Networks carries out this work of program.

The Committee consists of an Executive Team with administrative support and eight members from relevant organisations and areas of community interest who are appointed for a period of up to three years.

PLEC projects are funded by a contribution of two dollars from SA Power Networks for each dollar contributed by Councils or other eligible proponents. ESCOSA and OTR funds the administration support for our Executive Officer and provides meeting rooms.

Since 2011 the Minister delegated the powers and functions under section 58A of the Act to the Technical Regulator, who is responsible for exercising those related functions and powers under the Act associated with the undergrounding of power lines.

The DEM and the Essential Services Commission of South Australia’s (ESCOSA) website (see ESCOSA - Power Line Environment Committee resources) contains further information on the PLEC, including its charter and annual report on the activities of PLEC.

Committee appointments: Peter Khoury joined in December 2021 as Deputy Chair and representing the Community. Charles Donovan joined in March 2022 to replace Michael Magin representing SA Power Network. Kathryn Galpin joined in June 2022 to replace Joanne Davidson representing Tourism industry. Chris Dunn joined in July 2022 to replace Klinton Devenish representing the Local Government Association. Teresa Xavier will shortly join PLEC in August 2022 to replace Kerry McConnell representing the Department of Infrastructure and Transport.

Current PLEC Members:

Composition of PLEC

All Committee membership and sitting fee payments are reported to the Department of Premier and Cabinets (DPC) Boards and Committees Information System (BCIS) annually.

Foot note: *In accordance with the Premier and Cabinet Circular No.16 government employees did not receive any renumeration for committee duties during the reporting period.

Changes to the agency

During 2021-22 there were the following changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.

• From January 2022, the administration function of PLEC transferred from ESCOSA to OTR.

Our Minister

Hon Tom Koutsantonis MP was elected to the South Australian Parliament at the age of 26 making him one of the youngest MPs ever elected in South Australia’s history.

He is currently the longest serving MP in the State Parliament having been re- elected by his community for over 24 years in the seat of West Torrens.

Tom is currently Minister for Infrastructure and Transport, Minister for Energy and Mining and the Leader of Government Business in the House of Assembly. He has also previously held the portfolios of Correctional Services, Youth and Volunteers, Gambling, Small Business, State Development and as Treasurer.

Tom was raised in the western suburbs by Greek migrant parents, Tony and Toula. He attended Cowandilla and Netley Primary Schools before attending Adelaide High School and going on to study at the University of Adelaide.

Tom joined the Australian Labor Party at a young age with the encouragement of Labor stalwart and former South Australia Deputy Premier, the late Jack Wright.

He worked as a union advocate at the Shop Distributive and Allied Employees’ Association, then went on to work for the then Shadow Attorney General Michael Atkinson.

Tom entered Parliament to make a difference for working people, people who need the voice and advocacy of a Labor Government. Jobs, green energy and manufacturing are his passions.

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The agency’s performance

Performance at a glance

The OTR provided an Executive team and secretarial services to, and funded the operation of, PLEC, including member remuneration and annual report costs.

Agency response to COVID-19

OTR has continued to maintain service delivery during the COVID-19 pandemic with only a minimal impact to its operations.

The most significant financial impact related to construction work delays to PLEC projects were due to restricted access to certain geographical areas, increase in CPI affecting rise of materials and services costs. Generation of power was also provided wherever possible to residents and businesses during the COVID-19 pandemic period. This added further costs to delivering PLEC projects. Global supply chain and logistic delays were also affected during the COVID-19 pandemic and unforeseen weather events.

Agency specific objectives and performance

Corporate performance summary

Work health, safety and return to work programs

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Financial performance

Financial performance at a glance

The following is a brief summary of the overall financial position of the agency. The information is unaudited.

Statement of Financial Position as of 30 June 2022

Consultants disclosure

No consultants were engaged for this financial year period to report for PLEC.

Data for previous years is available at: Previous data unavailable as administrative function was transferred to OTR in January 2022

See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.

Contractors disclosure

The following is a summary of external contractors that have been engaged PLEC, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.

Contractors with a contract value below $10,000

Contractors with a contract value above $10,000 each

Data for previous years is available at: Previous data unavailable as administrative function was transferred to OTR in January 2022

The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

Other financial information

The prescribed PLEC funding budget for 2021-22 is $7,307,881 (in accordance with Regulation 44 of the Electricity (General) Regulations 2012). The prescribed net actual expenditure for 2021-22 is $8,359,040 which is an overspent of 13 % equivalent to $1,051,159 for 2021-22. The overspent was a result of a backlog of project construction delays, in particular Lower North-East Road project being the major contributing factor.

In 2022 $13,034 was approved by the South Australian Treasurer to be transferred to the Consolidated Account from the electricity licence fees received by the Essential Services Commission of South Australia for the Technical Regulator to administer PLEC (from January 2022).

Other information

Projects Overview

The Committee recommends to the Minister for Energy and Mining projects related to the undergrounding of electricity power lines (in accordance with the Electricity Act 1996 and Electricity (General) Regulations 2012).

Each financial year the Minister determines an amount (or as prescribed by regulation) for the undergrounding of powerlines program. The prescribed level of funding for PLEC projects for the forward 2022-23 financial year has been determined to be $7,679,783.

Councils may apply to seek contribution of PLEC funding for project proposals that is for the undergrounding of powerlines and meet PLEC guideline criteria.

The purpose of undergrounding work that is the subject of these programs is to improve the aesthetics of an area for the benefit of the general community having regard to road safety and the provisions for electrical safety pursuant to the Electricity Act 1996. The Committee is responsible for monitoring the progress and costs of undergrounding work. SA Power Networks carries out this work.

Each year, the Committee endeavours to deliver a balanced number of projects (50:50) between metropolitan and regional locations. Due to COVID-19 impacts and supply chain delays has resulted in less projects being delivered to the metropolitan locations during 2022.

2021-22: PLEC Projects Recommended and Approved

The PLEC recommended ten projects for funding approval during 2021-22. The projects, tabled below, will result in undergrounding 4.6 kilometres of power lines.

The Office of the Technical Regulator approved projects during 2021-22 that are to be constructed during 2022-23. In accordance with the Act, the prescribed funding to be contributed by SA Power Networks (two-thirds of the program funding) is $7.68 million. Proponents are required to contribute the remaining one-third.

Table: PLEC projects approved during 2021-22 for construction 2022-23.

* Orroroo Stage 1A and 1B have been deferred until 2025, the amount of $37,860 related to expenses to date for design and time invested to date.

DIT will design and install street lighting on Lower North East Road – Campbelltown, Commercial Road - Port Adelaide, Ayr Street - Jamestown, Railway Terrace – Lameroo, and partially on the Margaret Street and Bay Road, Mount Gambier. projects. DIT funded the installation of public lighting for PLEC projects on its roads during 2021-22 to the value of $756,000.

Project Locations

Projects proposed to commence construction in the 2022-23 program are predominantly regional South Australia, completion of the Lower North East Road, Campbelltown, Military Road and Church Street, Port Adelaide in late 2022. Commencement of Commercial Rd, Port Adelaide to occur late 2022.

Funding and Location over the long-term

Completed Project Photos

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Risk Management

Risk and audit at a glance

As part of good governance, OTR assessed PLEC’s governance structure and practices to identify opportunities to improve governance maturity. OTR also reviewed the Risk Management Framework and instituted a deep dive of key strategic risks.

OTR identified there has been no auditing framework/system in place for PLEC activities in the last five previous years. Hence, unable to provide a performance report in this area for this financial year.

Fraud detected in the agency

NB: Fraud reported includes actual and reasonably suspected incidents of fraud.

Strategies implemented to control and prevent fraud

OTR has identified systems gaps since taking on the function/responsibilities of PLEC from ESCOSA. OTR plans to implement auditing strategies and new systems to cover governance and financial system risks for PLEC scheme and reporting framework. Undertaking to commence in 2022-23 period

OTR aim for a workplace that is free of fraud, with internal controls in place to either prevent or detect it. Staff are bound by the Code of Ethics for the South Australian Public Sector issued under the Public Sector Act 2009. We have policies on ethical conduct in the workplace and our fraud management policy aligns with the South Australian public sector fraud and corruption control policy. We are not aware of any actual, suspected or alleged fraudulent activity affecting the agency in 2020-21

Data for previous years is available at: Previous data unavailable as administrative function was transferred to OTR in January 2022

Public interest disclosure

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:

• Nil to report for PLEC.

OTR/The agency have nominated responsible officers to receive and action disclosures under the Public Disclosure Act 2018. All complaints under this Act are investigated in line with the Department’s policy. All instances of disclosure of public interest information to a responsible officer of the Department under the Public Disclosure Act 2018 were either referred to the appropriate agency or reviewed as part of department’s internal audit process.

Data for previous years is available at: Previous data unavailable as administrative function was transferred to OTR in January 2022

Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.

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Reporting required under any other act or regulation

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Public complaints

Number of public complaints reported

Data for previous years is available at: Previous data unavailable as administrative function was transferred to OTR in January 2022.

Service Improvements

Compliance Statement

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