To:
WORKSAFE BOARD
From:
Kane Patena, DCE Operations
Lead:
Darren Handforth, National Manager High Hazards, Energy and Public Safety
Decision date:
9 December 2024
Date of ELT:
21 November 2024
Title:
External review of Response to Serene Heaters
PAPER FOR DISCUSSION
1. The purpose of this paper is to summarise the findings of the External Review of Regulatory Response to Serene Bathroom Heaters, dated 26
September 2024 (the review) and the plan to address the problems identified through the review.
Recommendations
1. I recommend that the Board:
a.
note the findings and recommendations of the review;
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c.
endorse management’s response and the actions set out in this paper and at Appendix 1; and
d.
note fol owing the board meeting management wil inform our Minister and Minister for Energy of the review findings and response.
Background
WorkSafe’s energy safety regulatory role
2. WorkSafe is the safety regulator under the Electricity Act 1992 and the Gas Act 1992. WorkSafe is funded through a targeted energy safety levy to
carry out its regulatory functions, which are to:
under the Official Information Act 1982
a. Carry out inquiries, tests, audits or investigations to determine whether a person is complying with the Act
b. Take such lawful steps as may be necessary to ensure the safe supply and use of electricity
c. Perform other functions as provided for under the Act – this includes functions under the Regulations.
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3. In certain circumstances, WorkSafe can issue a prohibition notice under the Regulations. Prohibition notices are broad and includes the power to
prohibit the manufacture, importation, sale, or use of appliances. The effect of a prohibition notice is significant, given it can apply to appliances
found in workplaces or homes. In many instances, manufacturers or distributors wil voluntarily manage their own consumer alerts and product
recal s. In some circumstances WorkSafe may need to step in and compel a recal through a prohibition notice.
4. In practice, where a prohibition notice is issued, the expectation is that the manufacturer would fund replacements of products. If (as in the case of
Serene heaters) the manufacturer has ceased to exist, this expectation shifts to suppliers. Where a prohibition notice is issued, MBIE is then
responsible and accountable for managing the recal of prohibited products.
5. WorkSafe policies on our regulatory approach apply to functions under the Electricity Act. These are supplemented by specific practice guidance.
Review of serene heaters prohibition
2. Certain models of Serene heaters had been subject to a prohibition notice under the Electricity (Safety) Regulations 2010 (the Regulations)
fol owing a number of incidents of the heaters malfunctioning, with some catching fire.
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The prohibition and
Gazette notice was completed in February 2024.
4. WorkSafe provided a briefing to the Minister fol owing media interest in the prohibition decision and the timeframes. In assessing the approach
taken and recognising WorkSafe does not issue a prohibition notice regularly (approx. 14 notices since WorkSafe’s inception), the decision was
made to review our approach to identify how we can improve our processes and act swiftly where we had detected product safety defects that
met the prohibition threshold.
6. Honor Lanham, Barrister was appointed to review the process. 9(2)(h) legal privilege
under the Official Information Act 1982
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Review findings and response
7. The review made a number of findings and 21 recommendations for improvement. The themes of the recommendations are:
a. Increase resourcing and capability – increase FTEs (particularly technical officers), training and access to testing equipment
b. Improve triage and investigation process – to oversee, direct and monitor responsiveness
c. Improve coordination with other agencies – particularly FENZ and MBIE.
8. The Appendix sets out the 21 recommendations and management response. 9(2)(h) legal privilege
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under the Official Information Act 1982
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under the Official Information Act 1982
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Next steps
under the Official Information Act 1982
21. The actions and next steps are outlined in Appendix 1.
22. In addition ( subject to the boards endorsement) management wil inform MBIE, the Minister and Minister of Energy of the outcome of the review,
the response 9(2)(h) legal privilege
APPENDIX 1 WITHHELD UNDER OIA SECTION 9(2)(h)
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