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You can find the current article at its original source at https://www.theguardian.com/australia-news/2025/sep/19/ausgrid-slashes-safety-inspectors-after-report-finds-cheaper-to-pay-permanent-disability-injury-compensation
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| Version 1 | Version 2 |
|---|---|
| Ausgrid slashes safety inspectors after report finds cheaper to pay permanent disability injury compensation | Ausgrid slashes safety inspectors after report finds cheaper to pay permanent disability injury compensation |
| (about 4 hours later) | |
| Secret report from CutlerMerz finds yearly cost of inspections – $520,219 – is more than cost of paying compensation – $28,375 a year | Secret report from CutlerMerz finds yearly cost of inspections – $520,219 – is more than cost of paying compensation – $28,375 a year |
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| Ausgrid cut safety inspector numbers by more than half after receiving a secret report that said it was cheaper for the company to pay compensation for a permanent disability injury than to continue paying for the inspections. | Ausgrid cut safety inspector numbers by more than half after receiving a secret report that said it was cheaper for the company to pay compensation for a permanent disability injury than to continue paying for the inspections. |
| The secret report, conducted by consultancy CutlerMerz and seen by Guardian Australia, recommended Ausgrid slash the inspections it was doing by as much as 55%, saying the cost – $520,219 per year – was “grossly disproportionate to the cost of the consequence being managed”. | The secret report, conducted by consultancy CutlerMerz and seen by Guardian Australia, recommended Ausgrid slash the inspections it was doing by as much as 55%, saying the cost – $520,219 per year – was “grossly disproportionate to the cost of the consequence being managed”. |
| CutlerMerz estimated that reducing the number of safety inspections could lead to an additional one person every 40 years becoming permanently disabled, which would cost Ausgrid $500,000 or $28,375 per year. | CutlerMerz estimated that reducing the number of safety inspections could lead to an additional one person every 40 years becoming permanently disabled, which would cost Ausgrid $500,000 or $28,375 per year. |
| In light of this “disproportion”, CutlerMerz recommended it was “reasonable to withdraw this control” by cutting the number of inspections it conducted from 12,000 to as few as 7,000 a year. | In light of this “disproportion”, CutlerMerz recommended it was “reasonable to withdraw this control” by cutting the number of inspections it conducted from 12,000 to as few as 7,000 a year. |
| CutlerMerz said it would be in line with Ausgrid’s regulatory obligations. | CutlerMerz said it would be in line with Ausgrid’s regulatory obligations. |
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| The report was internally circulated at Ausgrid under the designation “For official use only” and was first reported by the Daily Telegraph. | The report was internally circulated at Ausgrid under the designation “For official use only” and was first reported by the Daily Telegraph. |
| Ausgrid confirmed it cut its team of NSW installation inspectors from 25 to 11 in September, a move that was strongly condemned by the Electrical Trades Union NSW/ACT. | Ausgrid confirmed it cut its team of NSW installation inspectors from 25 to 11 in September, a move that was strongly condemned by the Electrical Trades Union NSW/ACT. |
| Ausgrid announced last week that it would no longer be conducting mandatory inspections on new or altered connections where the load exceeded 100amps. | Ausgrid announced last week that it would no longer be conducting mandatory inspections on new or altered connections where the load exceeded 100amps. |
| Tara Koot, the ETU NSW/ACT organiser, condemned the decision, saying it would “affect a significant number of new home builds”. | Tara Koot, the ETU NSW/ACT organiser, condemned the decision, saying it would “affect a significant number of new home builds”. |
| Dean Starkey, senior manager for connections delivery at Ausgrid, said the company had “modernised its inspection model to remove duplicated efforts with the Building Commission’s role and make connections faster and cheaper for our customers”. | Dean Starkey, senior manager for connections delivery at Ausgrid, said the company had “modernised its inspection model to remove duplicated efforts with the Building Commission’s role and make connections faster and cheaper for our customers”. |
| “The Building Commission is the primary regulator for electrical installation safety, while Ausgrid focuses its inspection efforts on network safety. | “The Building Commission is the primary regulator for electrical installation safety, while Ausgrid focuses its inspection efforts on network safety. |
| “Public and network safety remain our highest priorities and no legal or safety obligation has been compromised.” | “Public and network safety remain our highest priorities and no legal or safety obligation has been compromised.” |
| Starkey also said the changes had “nothing to do with the ongoing maintenance of the poles and wires”. | |
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| The NSW premier, Chris Minns, said his government was “watching the situation very closely”. | The NSW premier, Chris Minns, said his government was “watching the situation very closely”. |
| “The idea that it would be cheaper to pay out injuries than to protect your workforce is one we completely reject,” he said. | “The idea that it would be cheaper to pay out injuries than to protect your workforce is one we completely reject,” he said. |
| “If there’s any suggestion that we’ve downgraded safety, either for the household or for the workers involved, we’ve got very strict, in fact, the strictest rules in the country when it comes to Safe Work, inspections and enforcement, and I can promise you, we’ll deploy them. There can be zero tolerance when it comes to safety in the workplace, particularly when you’re dealing with live electricity.” | “If there’s any suggestion that we’ve downgraded safety, either for the household or for the workers involved, we’ve got very strict, in fact, the strictest rules in the country when it comes to Safe Work, inspections and enforcement, and I can promise you, we’ll deploy them. There can be zero tolerance when it comes to safety in the workplace, particularly when you’re dealing with live electricity.” |
| CutlerMerz was contacted for comment. | CutlerMerz was contacted for comment. |
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