ESA expands its compliance toolbox with administrative penalties

April 3, 2023, Mississauga, Ont. – With the goal of reducing illegal and unsafe electrical installations across Ontario, the Electrical Safety Authority (ESA) has imposed “administrative” (financial) penalties beginning April 1, 2023.

As an administrative authority acting on behalf of the Government of Ontario, the Electrical Safety Authority is responsible for administering specific regulations related to the Ontario Electrical Safety Code, the licencing of electrical contractors and master electricians, electricity distribution system safety, and electrical product safety.

Administrative penalties will be used in tandem with current enforcement tools, which include provincial prosecutions, licensure suspension, or imposing terms and conditions on a licence. Having the ability to issue administrative penalties will strengthen ESA’s mandate to protect Ontarians from the hazards that can result from illegal electrical work, adds the agency.

Ninety-nine per cent of the prosecutions pursued by ESA under the Provincial Offences Act (1998) last year were against individuals working in the underground economy. However, due to the “considerable resources” needed to prosecute offenders through the courts, ESA would only focus on cases that had the greatest effect on safety and the strongest likelihood of conviction.

How will administrative penalties be used?

Examples of contraventions where ESA can issue an administrative penalty include (but are not limited to):

• conducting electrical work without a licence
• advertising electrical services without a licence
• working without filing a notification (permit) with ESA
• hiring or subcontracting an unlicensed contractor (general contractors, facility owners, homeowners… anyone)

Depending on the nature of the contravention, these penalties can go as high as $10,000 per penalty. Monies collected will go directly toward funding electrical safety and consumer awareness initiatives across Ontario, ESA said in a press release.

With limited exemptions, ESA-licensed electrical contractors are the only businesses legally authorized to do electrical work in Ontario. LECs are required to be fully insured, arrange notifications (permits) with ESA, have certified staff to perform electrical work and obtain an ESA certificate of acceptance.

Background

The agency says it worked with the Ministry of Public and Business Service Delivery on a legislative and regulatory framework for its Administrative Penalty regime, with consultation from relevant stakeholder groups, including LECs and master electricians, as well as ESA’s advisory councils.

The framework outlines a tiered penalty structure: an opportunity for recipients to be given notice and an opportunity to respond, as well as a formal appeals process. ESA will publish confirmed administrative penalties on its website.

In 2020, the Auditor General of Ontario recommended that the province provide ESA with the power to issue monetary penalties to help deter both illegal electrical installations and individuals working in the underground economy. Administrative penalties will be used as a tool to address certain acts of non-compliance under the Electricity Act (1998) and its Regulations.