Act
Fall 2021 Red Tape Reduction Package - proposed amendments to the Electricity Act, 1998
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Supporting People and Businesses Act, 2021
Summary of Decision:
The legislative amendments to Part VIII of the Electricity Act, 1998 to enable the Electrical Safety Authority to issue administrative penalties received Royal Assent on December 2, 2021. The legislative amendments will take effect on April 1, 2023.
Once the legislative amendments take effect, the changes will enable the Electrical Safety Authority to issue administrative penalties to strengthen its enforcement regime with a more robust range of compliance tools. The legislative amendments establish the maximum penalty amount, responsibility for issuing penalties, limitation periods, and enforcement provisions for non-payment.
Once the legislative amendments take effect, the changes will enable the Electrical Safety Authority to issue administrative penalties to strengthen its enforcement regime with a more robust range of compliance tools. The legislative amendments establish the maximum penalty amount, responsibility for issuing penalties, limitation periods, and enforcement provisions for non-payment.
Analysis of Regulatory Impact:
The proposed legislative framework would not eliminate nor add regulatory requirements. Rather, it would focus on enabling the Electrical Safety Authority to directly issues administrative monetary penalties. If the proposed amendments are approved, a complementary regulatory proposal would be developed to set out the key implementation details of the administrative penalty regime such as outlining existing contraventions appropriate for an administrative penalty regime.
There is no immediate impact to stakeholders. However, future regulations in support of the new administrative monetary penalty framework are expected to impact licensed electrical contractors and unlicensed individuals who perform illegal electrical installations. Impacted stakeholders would be licensed electrical contractors and unlicensed individuals who perform illegal electrical installations. The cost to these individuals would depend on the frequency with which non-compliance is identified and the degree to which the Electrical Safety Authority relies on the framework to enforce compliance.
There is no immediate impact to stakeholders. However, future regulations in support of the new administrative monetary penalty framework are expected to impact licensed electrical contractors and unlicensed individuals who perform illegal electrical installations. Impacted stakeholders would be licensed electrical contractors and unlicensed individuals who perform illegal electrical installations. The cost to these individuals would depend on the frequency with which non-compliance is identified and the degree to which the Electrical Safety Authority relies on the framework to enforce compliance.
Further Information:
Proposal Number:
21-MGCS024
Posting Date:
February 9, 2023
Summary of Proposal:
The Auditor General found that illegal electrical installations were prevalent in the province and recommended enabling the Electrical Safety Authority to issue monetary fines to provide for a more robust range of compliance tools. Currently, the legislation lacks the detailed administrative monetary penalty regimes found in several Ministry of Government and Consumer Services consumer protection and public safety statutes.
The proposed legislative amendments would establish an administrative monetary penalties framework in the Electricity Act, 1998, that aligns with administrative penalty frameworks administered by other administrative authorities in Ontario. The proposed amendments will allow regulations to be developed in the future to support the framework. The ministry intends for the proposed legislative framework to come into effect at the same time as a complementary regulatory proposal as the regulatory proposal would set out the technical details of the regime. The ministry will publicly consult with stakeholders before bringing forward a regulatory proposal for government consideration.
Once in force, the changes would enable the Electrical Safety Authority to issue administrative monetary penalties (i.e., fines) to strengthen its enforcement regime with a more robust range of compliance tools. This additional tool will help the Electrical Safety Authority to address the underground economy as administrative monetary penalties will help eliminate the financial incentive for conducting illegal electrical work. This will help the competitiveness of licensed contractors who are compliant with the Electricity Act, 1998 and its regulations. As well, the Electrical Safety Authority will be able to more efficiently target those that that perform illegal electrical installations by issuing penalties rather than pursuing enforcement through lengthy and expensive court proceedings.
The proposed legislative amendments would establish an administrative monetary penalties framework in the Electricity Act, 1998, that aligns with administrative penalty frameworks administered by other administrative authorities in Ontario. The proposed amendments will allow regulations to be developed in the future to support the framework. The ministry intends for the proposed legislative framework to come into effect at the same time as a complementary regulatory proposal as the regulatory proposal would set out the technical details of the regime. The ministry will publicly consult with stakeholders before bringing forward a regulatory proposal for government consideration.
Once in force, the changes would enable the Electrical Safety Authority to issue administrative monetary penalties (i.e., fines) to strengthen its enforcement regime with a more robust range of compliance tools. This additional tool will help the Electrical Safety Authority to address the underground economy as administrative monetary penalties will help eliminate the financial incentive for conducting illegal electrical work. This will help the competitiveness of licensed contractors who are compliant with the Electricity Act, 1998 and its regulations. As well, the Electrical Safety Authority will be able to more efficiently target those that that perform illegal electrical installations by issuing penalties rather than pursuing enforcement through lengthy and expensive court proceedings.
Contact Address:
Ministry of Government and Consumer Services
56 Wellesley Street West, 6th Floor
Toronto, Ontario M7A 1C1
56 Wellesley Street West, 6th Floor
Toronto, Ontario M7A 1C1
Royal Assent Date:
December 2, 2021
Decision:
Approved