Evolution to Risk-based Oversight (RBO) Oct/Nov 2018

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Caroline Griffin
5 years ago
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1 Evolution to Risk-based Oversight (RBO) Oct/Nov 2018

2 Agenda 1. Welcome Nicole Pageot, Facilitator 2. RBO overview Mark Taylor, ESA 3. Program Decisions since Feb/Mar 2018 Town Halls Mark Taylor, ESA 4. RBO Fee Model Kevin Greer, ESA 5. Breakout Groups Report Back and Q&A - All 6. Next Steps for the RBO Project Kevin Greer, ESA 7. Wrap up and Survey Nicole Pageot, Facilitator 8. OESC Technical Q&A Trevor Tremblay, ESA 2

3 What Does Risk-based Oversight (RBO) mean? Oversight of electrical installations is based on an assessment of the safety risk of the installation: The likelihood an incident will occur Safety risk will be determined by: & If it does, the severity of the incident who does the work what the work is where the work is By 2020, ESA will process all electrical wiring applications using this RBO safety risk model: residential and commercial new and renovation work 3

4 Why is ESA Implementing RBO? Click on image above to open YouTube Video 4

5 How will RBO work? Once a permit has been submitted, ESA will use a three step process to determine what work is inspected: 1. A tool uses data to determine risk ranking (high, medium, low) based on nine attributes 2. ESA uses additional business rules and filters 3. RBO recommends to Inspectors what to inspect; Inspector decides 5

Nine Attributes of Risk Assessment Who (the installer) What (the installation) Type of Installer History of Performance for similar installations Accessibility Risk levels Low

6 Nine Attributes of Risk Assessment Who (the installer) What (the installation) Type of Installer History of Performance for similar installations Accessibility Risk levels Low risk Medium risk High risk Where (location of installation) Complexity Era of Facility Building Classification Likelihood Severity Scope of Work Public Exposure Environment Factor 6

7 Filters The following notifications require a visit, regardless of whether they are low, medium or high risk Notifications Over $500 or 100 devices Homeowner/DIY New construction (requiring service connection) Pools and Hot Tubs Outlets and Devices in Hazardous Locations Temp Services for Single-,Three-phase and multiple subdivisions Renewable Energy Central Metering 7

8 Filters - Notifications that Require a Visit The following notifications require a visit, regardless of whether they are low, medium or high risk Service Connections 400 AMP Entertainment, TV Shoots and Special Events Special Programs e.g. retrofitted luminaires Generators 8

9 How RBO Will Change the Way ESA Visits You

10 Levelling The Playing Field RBO applies to all contractors Must apply for more than 10 notifications in a year 1-in-5 visits for low-risk wiring work 1-in-2 visits for medium-risk wiring work Site visit recommended for all high-risk work 10

11 Levelling The Playing Field New accounts require at least 10 notifications from a specific line of business a defect ratio of less than 4% to begin receiving selective site visits. Selective inspection will commence January 2020 and based on previous year s history. 11

Scheduling Visits Inspectors will notify you in the morning if they aren t visiting that day An ESA Inspector will contact you to let you know the inspection is either passed or scheduled to another

12 Scheduling Visits Inspectors will notify you in the morning if they aren t visiting that day An ESA Inspector will contact you to let you know the inspection is either passed or scheduled to another day Sites are to be open until 4:30 pm if you weren t advised of a no-visit ESA certificates can be issued with or without a site visit LECs will still be able to request a site visit, regardless of the risk-ranking 12

13 The Authorized Contractor Program and Risk-based Oversight

14 The Authorized Contractor Program A voluntary program for LECs that includes fee discount selective inspection and pre- authorized reconnections Sites deemed inspected by 2:00 PM Limited scope of work If the LEC Files a minimum of 20 applications in the previous 18 months Maintains a defect ratio of 4% Completes Code training for the OESC Complies with licensing and code requirements 14

15 ACP Incorporated into RBO In 2020, all Contractors will benefit from RBO and be eligible for: Pre-Authorized Connections Residential service upgrades or alterations 200amp Commercial service upgrades or alterations 400amp Services that are disconnected and required same day reconnect Preplanned work at least 24 hrs notice LEC contacts ESA CSC with outage date; CSC issues CA to Supply Authority. Inspection not required but will follow risk bucket low medium high responses. 15

16 Emergency Connections In 2020, all Contractors will benefit from RBO and be eligible for: Same Day Emergency Connections: Same day emergency connection for events like wind storms, tree limb falling on line, broken meter and so on. Damaged stack, pole, replacement main breaker, broken jaw etc Inspection not required but will follow risk bucket low medium high responses. After Hours Emergency Connections: As above In collaboration with On Call Inspector who will arrange connection with LDC 16

17 ACP Programs Incorporated into RBO Small Jobs visited at a 1-in-10 ratio this is applied to 10 or less outlets and devices for residential wiring work and 20 or less for ICI industrial, commercial, institutional work 1-in-10 site visits for HVAC wiring work 1-in-5 site visits and pre authorized connection for Pole line and HV substation maintenance 17

18 Benefit Eligibility at A Glance Benefit Permit Volume Defect Ratio Time Frame Pre Authorized Connection 10 10% 12-mth rolling Emergency Connections 10 10% 12-mth rolling Same Day Emergency Connection 10 10% 12-mth rolling 1 in 10 Small Jobs 10 10% 12-mth rolling 1 in 10 HVAC 10 10% 12-mth rolling Pools & Hot Tubs 10 4% 12-mth rolling Central Metering 10 4% 12-mth rolling Permanent Generators 10 4% 12-mth rolling Pole Line Maintenance 10 4% 12-mth rolling HV Sub-Station Maintenance 10 4% 12-mth rolling LV Service Maintenance 10 4% 12-mth rolling 18

19 RBO Benefit Eligibility All Contractors will be eligible for these benefits in 2020 if: You maintain a defect ratio of less than 4 or 10% (depending on the benefit) You take out more than 10 notifications in a 12-month period Can lose privilege when defect ratio is more than 10% for 3 consecutive months Need 3 consecutive month of good performance to get it back 19

20 Incorporating ACP into RBO No grandfathering for ACP Accounts In Jan 2019, defect ratios will be communicated to all LECs New accounts require at least 10 site visits on specific line of business 20

21 Defect Ratio A defect ratio is: Number of defects within a site/number of site visits Recalculates at the end of each month Technical defect counts as 1 defect Warning defects will be included but at a 1/5th value, meaning 5 Warnings are the equivalent of a standard technical defect Administrative defects, such as No Access are not counted towards the defect ratio. 21

22 Focus on High Value Safety Priorities Selective Site Visits and Incorporation of ACP into RBO will: Allow you to spend more time and resources running your business Allow all contractors to participate in RBO Allow ESA to spend more time with you on higher priority safety activities Cracking down on the underground economy More time with you on complex or high risk sites 22

23 RBO Fee Model Oct/Nov 2018

24 Purpose How wiring fees might change under RBO Key Principles and Objectives Fee Model What this means for ESA s Fee Guide What this means for Authorized Contractor Program (ACP) Fees Discuss potential impact Get your feedback and answer your questions 24

Ontario s electrical safety system, and make it even better Fee

25 Key Principles and Objectives No increases to the fees in ESA Fee Guide No additional cost to Ontario economy Same cost to operate Ontario s electrical safety system, and make it even better Fee changes are designed to Maximize compliance Reduce the underground economy 25

26 Blended rate fee model Same permit price for all LECs provides a level playing field No fee guide increase Eliminate ACP fees Redistribute current ACP discounts 26

27 Commercial Renovation Fees for Certain Jobs Reduce fee for small Commercial Renovation jobs (1-20) devices to $35-$45 Proven to increase compliance $79 $35- $45 27

28 Residential Renovation Fees Reduce fee for small Residential Renovation jobs (1-10 devices) to $35-$45 Proven to increase compliance $79 $35- $45 28

29 Example Small Renovation Work LEC Costs Costs Today RBO Labour and Materials $250 $250 ESA Permit $79 $40 Administration $50 $25 Attend Inspection $160 $32 Total Costs $539 $347 Example Price to Customer $549 $400 29

30 New Residential Fees Redistribute the existing 20% ACP discount on low rise New Homes Maintain a price closer to the $219 fee listed in the fee guide Aim to provide 12 months notice for bidding purposes 30

31 Example New low rise residential ACP Costs ACP Today RBO/LEC Labour and Materials $7,000 $7,000 ESA Permit $175 $219 Administration $50 $50 Total $7,225 $7,269 Percent increase 0.5% 31

32 Other Fees Other fees currently eligible for 20% ACP discount would be blended as well such as Service work-new service, change or repair or panel change Renovations with service work 32

33 Breakout Groups - Questions What impact, if any, would these fee changes have on your business? When you consider the proposed change to small job rates (from $79 to $35-45), do you believe this will make you more competitive when bidding for jobs against others who are not compliant and don t take out a notification? Would there be a big difference to your ability to compete if the fee was set at $45 vs. $35? Why did you say that? Do you need help explaining RBO to your clients (e.g. selective inspection, fees, etc.)? What can the ESA do to help you explain to clients and prospects when a contractor has earned the benefits of pre-authorizations and emergency reconnections? How much lead time about changes to fees do you need to quote on new business? 33

34 Next steps Review contractor feedback Winter 2018/2019 Conduct formal fee consultation Spring 2019 Communicate final fees Spring/Summer 2019 Third Round RBO town halls Fall 2019 RBO launch January

Distributor Bulletin Factors to Consider for Damaged Customer s Services During Emergencies

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