Backgrounder
For owners of Private Overhead Electric Lines
About the Powerline Replacement Fund
The Powerline Replacement Fund is a 10-year, up to $200 million funding initiative, designed to make
Victorian communities safer from bushfires.
The Powerline Replacement Fund Program (PRF Program) is accelerating the replacement of powerlines
which pose the greatest bushfire risk, based on their location. This includes powerlines owned by the
electricity distribution businesses, as well as uninsulated private overhead electric lines (POELs).
This PRF Program is part of the Victorian Government’s commitment to implement all of the
recommendations of the Victorian Bushfires Royal Commission and the Powerline Bushfire Safety
Taskforce.
The PRF Program is being administered by the Department of Economic Development, Jobs, Transport and
Resources (Department).
Private overhead electric lines
The Victorian Government is providing funding under the PRF Program to property owners who qualify in
priority areas, to have their uninsulated POELs placed underground (or in exceptional circumstances,
insulated). This includes small and medium sized businesses as well as residential properties.
POELs are low voltage overhead lines that usually run between the first pole on a property to a premises on
that property, or between different premises on one property - for instance between a house and shed.
Maintenance of these lines is the legal responsibility of the property owner.
The benefits of undergrounding
By placing your POEL underground you will be helping to make your community safer from the potential of
bushfires started from powerlines. The powerline will also require less maintenance by you.
In addition, by taking advantage of the funding you may also avoid having to pay the costs associated with
undergrounding your POEL in the future or limit those costs if you are already under an obligation to
underground your POEL.
Currently, under regulation 220 of the Electricity Safety (Installations) Regulations 2009, if your POEL needs
to be substantially reconstructed you are obligated to place it underground, at your own cost.
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The connection between powerlines and bushfires
The 2009 Victorian Bushfires Royal Commission found that powerlines caused about half of the catastrophic
bushfires that resulted in loss of life.
Powerlines can initiate bushfires by an electric arc, molten particles or electric current igniting vegetation or
other combustible material. The time it takes for a bushfire to start is unpredictable, but it is possible for
electric arcs and molten particles to start bushfires almost instantaneously under certain conditions.
Making sure that funding under the PRF Program is directed where it is needed
most
Funding under the PRF Program is being targeted in stages to those areas assessed by the Emergency
Management Commissioner as being high priority.
Making the decision to underground
Applying for funding under the PRF Program is voluntary. However, eligible property owners are strongly
encouraged to apply for funding. The more people that take part in the PRF Program, the safer Victorian
communities will be from bushfires started by powerlines. Remember, it’s not only your community that you
potentially make safer, but many surrounding communities.
Details of POEL owner eligibility to apply for funding under the PRF Program are set out in Part 2 of the
Application Guidelines and Terms of Participation.
Property owners versus tenants
An application for funding under the PRF Program must be made by the owner of the POEL rather than a
tenant residing at the property where the POEL is located.
Taking care of trees and vegetation
We understand that maintaining existing trees and vegetation is important to property owners. If you are
concerned about this, we suggest working closely with your Registered Electrical Contractor (REC) and
electrical distribution business to ensure that care is taken on your property when replacing your POEL.
How the funding works
Eligible POEL owners need to source at least two quotes from RECs to either:
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safely decommission their existing uninsulated POEL and replace it with an underground powerline;
or,
safely decommission their existing uninsulated POEL and replace it with an insulated POEL (this will
require an exemption from Energy Safe Victoria from the requirement to underground the POEL).
Quotes must comply with the requirements set out in Part 4.1 and the Quote Template and should be
submitted to the Department directly by the REC.
Please note that the Department may elect to inspect your property to verify quotes when reviewing your
application for funding.
If your application for funding under the PRF Program is successful, you will be issued with a Letter of Offer
and the REC awarded the works will be issued with a Voucher for your benefit. These documents will contain
the relevant technical information, the amount that will be covered by government funding and the total
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amount of the works (if this is greater than the government is funding then you are required to make a
contribution towards the cost).
Upon completion of the works specified in the Voucher and provision of a Certificate of Electrical Safety from
the REC, you must sign the Voucher provided to the REC.
The REC will also sign the Voucher and submit it, along with a copy of the Certificate of Electrical Safety and
a valid tax invoice for the amount (inclusive of GST) specified in the Voucher, to the Department for
payment. This documentation must be submitted to the Department before the expiry date of the Voucher.
Applicants should note that the Department will have no obligation to pay a Voucher that has expired, where
the cost exceeds the amount specified in the Voucher or where the Voucher or has been voided by DEDJTR
in accordance with the General Terms of Grant for POEL Owners or the terms and conditions set out in the
Voucher, the Letter of Offer or the Supplier Application Form. Depending on the circumstances associated
with the expiry or voiding of a Voucher, the Supplier may have a claim against you for works performed.
For more information, please refer to the ‘Step-by-step guide for POEL owners’ available at
http://www.energyandresources.vic.gov.au/powerlines.
Provide each REC with an information pack
Please direct the REC that you invite to quote to our website at
http://www.energyandresources.vic.gov.au/powerlines, and ask that they read the REC Quote template prior
to quoting. The REC information on our website contains important information that will help the REC to
quote accurately on the work, and also includes application forms that RECs will need to complete in order to
register to participate in the PRF Program.
Changing the scope of work
Please be aware that funding under the PRF Program only covers the cost of removing the existing
uninsulated POEL and replacement works (including site remediation) and does not extend to any
augmentation of the powerline or services that exceed the scope of the grant as set out in Part 3.2 of the
Application Guidelines and Terms of Participation.
If you wish to include any additional features (such as upgrading the power supply) then these costs should
be contained in a separate quote. The PRF Program will not pay for any costs beyond those required to
remove the potential bushfire hazard posed by uninsulated POELs in priority areas. Those additional costs
are to be met by the POEL Owner.
For full details on the scope of the funding please see Part 3 of the Application Guidelines and Terms of
Participation.
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Length of time to complete the work
Decommissioning a POEL and undergrounding a new line involves a number of steps and different parties
and should be coordinated by the REC. The Department will not have any involvement in this process.
Generally, the entire process will take around three months to complete and includes the following steps:
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installation of an underground pit on the property boundary (by your electricity distributor);
construction of a trench (by the REC or their subcontractor);
laying of a new underground cable (by the REC);
site remediation including filling in the trench (by the REC or their subcontractor);
disconnection of the existing line and connection of the new line (a “truck appointment” by your
electricity distributor); and
disposal of the old cable and poles (where the poles are not required to accommodate other
infrastructure such as phone lines).
In undertaking this work the REC will typically engage additional parties such as:
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a subcontractor to dig the trench;
the local electricity distribution business to manage the disconnection and reconnection; and
a Licensed Electrical Inspector to independently certify that works have been performed in
accordance with Energy Safe Victoria’s regulatory requirements.
Closing dates
The PRF program is only available for a limited time. Participating RECs must complete all works and
submit the invoice, signed voucher and Certification of Electrical Safety prior to the expiry date as specified
by the Voucher.
For more information
If you have any queries in relation to this offer please email prf.information@ecodev.vic.gov.au. Alternatively,
you can contact the Project Manager during business hours on (03) 9092 1872.
Please also refer to the ‘Application Guidelines and Terms of Participation’ and ‘General Terms of Grant for
POEL Owners’ which set out the full legal terms and conditions that apply to participating and receiving
funding under the PRF Program. These documents are available at
http://www.energyandresources.vic.gov.au/powerlines.
By working together we can help to make Victorian communities safer from bushfires.
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